RELATED PARTY TRANSACTIONS

6 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 10 –RELATED PARTY TRANSACTIONS

The Company has an ongoing music subscription sharing agreement with Stingray Group, Inc. (“Stingray”), who has a minority interest in the Company, which enables subscribers to access a digital music library maintained by Stingray for the benefit of the Company and its retail customers. For the three months ended September 30, 2023 and 2022, the Company received music subscription revenue of approximately $156,000 and $123,000, respectively. For the six months ended September 30, 2023 and 2022, the Company received music subscription revenue of approximately $332,000 and $255,000, respectively. These amounts were included as a component of net sales in the accompanying condensed consolidated statements of operations. On September 30, 2023 and March 31 2023, the Company had approximately $165,000 and $218,000, respectively, due from Stingray for music subscription reimbursement.

Stingray has one representative on the Company’s board of directors. For the three months ended September 30, 2023 and 2022, the Company compensated this board member approximately $16,000 and $0, respectively for his services to the board. For the six months ended September 30, 2023 and 2022, the Company compensated this board member approximately $16,000 and $24,000, respectively for his services to the board. Such board compensation is recorded within general and administrative expenses on the condensed consolidated statements of operations.

As of September 30, 2023 and March 31, 2023, the Company had approximately $0 and $21,000 due from the Company’s largest shareholder, Ault Alliance, Inc. (“AAI”) for trade show expenses incurred on behalf of AAI in January, 2023.

AAI has three representatives on the Company’s board of directors who are compensated for their services to the board. For both the three and six months ended September 30, 2023 and 2022, these board members received approximately $48,000 and $10,000, respectively for their services to the board. Such board compensation is recorded within general and administrative expenses on the condensed consolidated statements of operations.