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Subsequent Events
12 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

Note 19 - Subsequent Events

 

Exercise of Pre-Funded Warrants

 

Immediately subsequent to the Company’s listing on Nasdaq, the Company received exercises notices on 561,311 pre-funded warrants. These pre-funded warrants were previously issued as part of a capital raise completed in August 2021. As of the date of this filing, all pre-funded warrants have been exercised and converted to common stock.

 

Change of Control

 

On June 13, 2022, BitNile Holdings, Inc. (“BitNile Holdings”), a Delaware corporation, Digital Power Lending, LLC (“Digital Power Lending”), a California limited liability company and subsidiary of BitNile Holdings, and Milton C. Ault, III (“Ault”), Founder and Executive Chairman of BitNile Holdings (collectively the “Reporting Persons”) filed a joint Schedule 13D filing (the “Schedule 13D”) reporting that the Reporting Persons acquired, in the aggregate, 52.0% of the issued and outstanding shares of common stock, par value $0.01 per share (the “Common Stock”) of The Singing Machine the Company, through open market purchases.

 

Pursuant to the Schedule 13D and subsequent amended Schedule 13D filings, Digital Power Lending beneficially owns and BitNile Holdings and Ault may be deemed to beneficially own an aggregate of 1,568,849 shares of the Common Stock (the “Shares”), or approximately 52.0% of the outstanding shares of Common Stock.

 

As these purchases were made in the open market, control of the Company was not assumed from a particular person or group of persons. The Schedule 13D reported “Mr. Ault expresses an interest in adding one or more shareholder representatives to the Issuer’s board of directors.” Other than the foregoing, the Company is not aware of any arrangement or understanding between or among BitNile Holdings, Digital Power Lending and Ault or any of their respective associates with respect to election of directors of the Company or other matters.