Restatement of Previously Issued Consolidated Financial Statements (Tables)

6 Months Ended

Sep. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Summary of Restatement of Consolidated Financial Statements

The tables below set forth the condensed consolidated statements of operations, including the balances as originally reported, adjustments and the as restated balances for each of the periods affected:

	Originally Reported For the Three Months Ended September 30, 2020			Adjustment			As Restated For the Three Months Ended September, 30, 2020			Originally Reported For the Six Months Ended September 30, 2020			Adjustment			As Restated For the Six Months Ended September, 30, 2020
Net Sales	$	23,187,519		$	(902,280	)	$	22,285,239		$	26,511,062		$	(1,173,840	)	$	25,337,222
Cost of Goods Sold		16,462,235			-			16,462,235			18,551,766			-			18,551,766
Gross Profit		6,725,284			(902,280	)		5,823,004			7,959,296			(1,173,840	)		6,785,456
Operating Expenses
Selling expenses		2,377,091			(902,280	)		1,474,811			2,947,644			(1,173,840	)		1,773,804
General and administrative expenses		1,841,873			-			1,841,873			3,205,163			-			3,205,163
Depreciation		67,781			-			67,781			138,888			-			138,888
Total Operating Expenses		4,286,745			(902,280	)		3,384,465			6,291,695			(1,173,840	)		5,117,855
Income from Operations		2,438,539			-			2,438,539			1,667,601			-			1,667,601
Other Income (Expenses)
Gain from damaged goods insurance claim		936,537			-			936,537			1,067,829			-			1,067,829
Gain from extinguishment of accounts payable		-			-			-			390,000			-			390,000
Interest Expense		(127,731	)		-			(127,731	)		(157,321	)		-			(157,321	)
Finance Costs		(18,431	)		-			(18,431	)		(24,836	)		-			(24,836	)
Total Other Income (Expenses), net		790,375			-			790,375			1,275,672			-			1,275,672
Income Before Income Tax Provision		3,228,914			-			3,228,914			2,943,273			-			2,943,273
Income Tax Provision		(821,040	)		-			(821,040	)		(742,203	)		-			(742,203	)
Net Income	$	2,407,874		$	-		$	2,407,874		$	2,201,070		$	-		$	2,201,070

THE SINGING MACHINE COMPANY, INC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2020 and 2019

(Unaudited)

	Originally Reported For the Three Months Ended September 30, 2019			Adjustment			As Restated For the Three Months Ended September, 30, 2019			Originally Reported For the Six Months Ended September 30, 2019			Adjustment			As Restated For the Six Months Ended September, 30, 2019
Net Sales	$	20,081,842		$	(1,027,327	)	$	19,054,515		$	24,890,882		$	(1,196,129	)	$	23,694,753
Cost of Goods Sold		14,439,522			-			14,439,522			18,260,856			-			18,260,856
Gross Profit		5,642,320			(1,027,327	)		4,614,993			6,630,026			(1,196,129	)		5,433,897
Operating Expenses
Selling expenses		2,488,129			(1,027,327	)		1,460,802			3,147,422			(1,196,129	)		1,951,293
General and administrative expenses		2,235,269			-			2,235,269			3,606,325			-			3,606,325
Depreciation		59,588			-			59,588			119,049			-			119,049
Total Operating Expenses		4,782,986			(1,027,327	)		3,755,659			6,872,796			(1,196,129	)		5,676,667
Income (Loss) from Operations		859,334			-			859,334			(242,770	)		-			(242,770	)
Other Expenses
Interest Expense		(47,639	)		-			(47,639	)		(50,514	)		-			(50,514	)
Finance Costs		(3,333	)		-			(3,333	)		(6,666	)		-			(6,666	)
Total Other Expenses		(50,972	)		-			(50,972	)		(57,180	)		-			(57,180	)
Income (Loss) Before Income Tax (Provision) Benefit		808,362			-			808,362			(299,950	)		-			(299,950	)
Income Tax (Provision) Benefit		(184,140	)		-			(184,140	)		54,591			-			54,591
Net Income (Loss)	$	624,222		$	-		$	624,222		$	(245,359	)	$	-		$	(245,359	)