SUPPLEMENTAL INFORMATION CONDENSED FINANCIAL INFORMATION

9 Months Ended

Dec. 31, 2023

Supplemental Information Condensed Financial Information

SUPPLEMENTAL INFORMATION CONDENSED FINANCIAL INFORMATION

NOTE 21 – SUPPLEMENTAL INFORMATION CONDENSED FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED DECEMBER 31, 2023, AND 2022.

The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the nine months ended December 31, 2023 and 2022

	Nine Months Ended
	December 31, 2023			December 31, 2022
				(unaudited)
Net Sales	$	29,198,000		$	35,916,000
Cost of Goods Sold		23,008,000			27,481,000
Gross Profit		6,190,000			8,435,000
Operating Expenses		12,333,000			9,986,000
(Loss) Income from Operations		(6,143,000	)		(1,551,000	)
Other (Expenses) Income		(255,000	)		(574,000	)
(Loss) Income Before Income Tax Benefit		(6,398,000	)		(2,125,000	)
Income Tax Benefit (Loss)		-			472,000
Net (Loss) Income	$	(6,398,000	)	$	(1,653,000	)
Loss per Common Share
Basic and Diluted		(1.32	)		(0.61	)
Weighted Average Common and Common
Equivalent Shares:
Basic and Diluted		4,864,540			2,699,210

THE SINGING MACHINE COMPANY, INC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023, and March 31, 2023 and 2022

The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine months ended December 31, 2023 and 2022 (unaudited)

	For the Nine Months Ended
	December 31, 2023			December 31, 2022
				(unaudited)
Cash flows from operating activities
Net loss	$	(6,398,000	)	$	(1,653,000	)
Adjustments to reconcile net loss to net cash used in operating activities:		1,305,000			(73,000	)
Changes in operating assets and liabilities:		5,504,000			(538,000	)
Net cash provided by (used in) operating activities		411,000			(2,264,000	)
Cash flows from investing activities
Net cash used in investing activities		(14,000	)		(149,000	)
Cash flows from financing activities
Net cash provided by financing activities		3,411,000			2,917,000
Net change in cash		3,808,000			504,000
		-			-
Cash at beginning of year		2,895,000			2,291,000
Cash at end of period	$	6,703,000		$	2,795,000

THE SINGING MACHINE COMPANY, INC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023, and March 31, 2023 and 2022

The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the nine months ended December 31, 2023 and 2022 (unaudited)

	Common Stock				Additional Paid in		Subscriptions			Accumulated
	Shares		Amount		Capital		Receivable			Deficit			Total
Balance at March 31, 2023		3,167,488	$	32,000	$	29,822,000	$	(6,000	)	$	(19,517,000	)	$	10,331,000
Net loss		-		-		-		-			(6,398,000	)		(6,398,000	)
Issuance of common stock, net of stock offering costs		3,250,573		32,000		3,497,000		-			-			3,529,000
Stock based compensation		-		-		110,000		-			-			110,000
Other		-		-		-		6,000			-			6,000
Balance at December 31, 2023		6,418,061	$	64,000		33,429,000	$	-		$	(25,915,000	)	$	7,578,000

	Common Stock				Additional Paid in		Subscriptions		Accumulated
	Shares		Amount		Capital		Receivable		Deficit			Total
Balance at March 31, 2022		1,221,209	$	12,000	$	24,903,000	$	-	$	(14,879,000	)	$	10,036,000
Net loss		-		-		-		-		(1,653,000	)		(1,653,000	)
Issuance of common stock and warrants, net of stock offering costs		1,909,519		19,000		4,489,000		-		-			4,508,000
Stock based compensation		15,803		-		307,000		-		-			307,000
Other		1,688		-		-		-		-			-
Balance at December 31, 2022 (unaudited)		3,148,219	$	31,000		29,699,000	$	-	$	(16,532,000	)	$	13,198,000