RELATED PARTY TRANSACTIONS

3 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 10 –RELATED PARTY TRANSACTIONS

All transactions listed below are related to the Company as they are all with affiliates of our former Chairman of the Board, Mr. Phillip Lau.

DUE TO RELATED PARTIES

On June 30, 2021 and March 31, 2021, the Company had amounts due to related parties in the amounts of approximately $63,000 for services provided by these companies and licensing fees for use of pedestal model molds and tools owned by them.

THE SINGING MACHINE COMPANY, INC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2021 and 2020

(Unaudited)

TRADE

On July 30, 2020, the Company and Cosmo reached agreement that Cosmo would no longer be the Company’s Canadian distributor and the Company became the sole and exclusive distributor of the Company’s products in Canada. As part of the agreement, the companies executed a Purchase and Sales agreement whereby the Company acquired all of Cosmo’s karaoke inventory for approximately $685,000. During the three months ended June 30, 2021, there was a gain of approximately $11,000 from Cosmo related to payments received in Fiscal 2022 on prior year sales and the related receivable previously reversed and written off as initially deemed uncollectible.

The Company incurred service expenses from Starlight Electronics Co, Ltd, (“SLE”) a related party. The services from SLE were approximately $91,000 for both of the three months ended June 30, 2021 and 2020. These amounts were included as a component of general and administrative expenses in the accompanying condensed consolidated statements of operations.