COMPUTATION OF EARNINGS PER SHARE

6 Months Ended

Sep. 30, 2023

Net Income (Loss) per Common Share

COMPUTATION OF EARNINGS PER SHARE

NOTE 9 –COMPUTATION OF EARNINGS PER SHARE

Computation of basic and dilutive earnings (loss) per share was as follows:

	For the three months ended September 30, 2023		For the three months ended September 30, 2022		For the six months ended September 30, 2023			For the six months ended September 30, 2022
Net income (loss)	$	97,535	$	296,467	$	(2,362,146	)	$	280,464
Weighted-average common shares outstanding		4,220,259		3,071,131		4,063,697			2,484,660
Weighted-average diluted shares outstanding		4,220,259		3,610,188		4,063,697			2,961,631
Basic net income (loss) per share	$	0.02	$	0.10	$	(0.58	)	$	0.11
Diluted net income (loss) per share	$	0.02	$	0.08	$	(0.58	)	$	0.09

Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Potentially dilutive securities (including warrants and stock options) are excluded from the diluted EPS in loss periods when the applicable exercise price is greater than the market price on their period end date as their effect would be anti-dilutive.

THE SINGING MACHINE COMPANY, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023 and 2022

(Unaudited)

For the three and six months ended September 30, 2023, options to purchase 91,261 shares of common stock and 902,113 common stock warrants were excluded from the calculation of diluted EPS per share as the result would have been anti-dilutive. For the three and six months ended September 30, 2022, options to purchase 49,781 shares of common stock were excluded in the calculation of diluted net income per share as the result would have been anti-dilutive.