STOCK OPTIONS

3 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Abstract]

STOCK OPTIONS

NOTE 8 - STOCK OPTIONS

During the three months ended June 30, 2021 and 2020 the Company did not issue any stock options.

The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the assumptions outlined below. The expected volatility is based upon historical volatility of our stock and other contributing factors. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees.

THE SINGING MACHINE COMPANY, INC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2021 and 2020

(Unaudited)

A summary of stock option activity for the three months ended June 30, 2021 is summarized below:

	June 30, 2021
	Number of Options			Weighted Average Exercise Price
Stock Options:
Balance at beginning of period		1,680,000		$	0.32
Granted		-			-
Exercised		(20,000	)	$	0.24
Balance at end of period		1,660,000		$	0.32
Options exercisable at end of period		1,560,000		$	0.33

The following table summarizes information about employee stock options outstanding at June 30, 2021:

Range of Exercise Price	Number Outstanding at June 30, 2021		Weighted Average Remaining Contractural Life		Weighted Average Exercise Price		Number Exercisable at June 30, 2021		Weighted Average Exercise Price
$.12 - $.38		1,110,000		2.6	$	0.24		1,010,000	$	0.23
$.47 - $.55		550,000		6.2	$	0.50		550,000	$	0.50
*		1,660,000						1,560,000

* Total number of options outstanding as of June 30, 2021 includes 580,000 options issued to five current directors and one former director as compensation and 1,040,000 options issued to key employees that were not issued from the Plan.

As of June 30, 2021, there was unrecognized expense of approximately $5,000 remaining on options currently vesting over time with approximately four months remaining until these options are fully vested.

The intrinsic value of vested options as of June 30, 2021 was approximately $180,000.