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Segment Information and Revenue Disaggregation | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Segment Information and Revenue Disaggregation | Note 14 – Segment Information and Revenue Disaggregation Segment Information Pursuant to ASC 280, the Company’s Chief Executive Officer serves as the Company’s Chief Operating Decision Maker (“CODM”) for the purposes of ASC 280. The CODM concluded that the Company operates two reportable segments. One segment consists of its Singing Machine business and the other segment consists of its SemiCab business. The CODM manages the Company’s operations and business separately for each operating segment and uses net sales and net loss to allocate resources, making operating decisions and evaluating financial performance. The CODM also uses net sales and net loss, along with non-financial inputs and qualitative information, to evaluate the Company’s performance, establish compensation, monitor budget versus actual results, and decide the level of investment in various operating activities and other capital allocation activities. The following table details the revenues, significant expenses and other segment items regularly provided to the CODM: Schedule of Details the Revenue, Significant expenses and Other Segment
|  | Three Months Ended June 30, 2025 |  |  | Three Months Ended June 30, 2024 |  |  | Six Months Ended June 30, 2025 |  |  | Six Months Ended June 30, 2024 |
|  | Singing |  |  |  |  |  |  |  |  | Singing |  |  |  |  |  |  |  |  | Singing |  |  |  |  |  |  |  |  | Singing |  |  |  |  |  |  |
|  | Machine |  |  | SemiCab |  |  | Total |  |  | Machine |  |  | SemiCab |  |  | Total |  |  | Machine |  |  | SemiCab |  |  | Total |  |  | Machine |  |  | SemiCab |  |  | Total |
Revenues |  | $ | 1,564,000 |  |  | $ | 1,152,000 |  |  | $ | 2,716,000 |  |  | $ | 2,440,000 |  |  | $ | - |  |  | $ | 2,440,000 |  |  | $ | 3,434,000 |  |  | $ | 1,275,000 |  |  | $ | 4,709,000 |  |  | $ | 4,866,000 |  |  | $ | - |  |  | $ | 4,866,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of revenues |  |  | 270,000 |  |  |  | 1,492,000 |  |  |  | 1,762,000 |  |  |  | 2,116,000 |  |  |  | - |  |  |  | 2,116,000 |  |  |  | 1,634,000 |  |  |  | 1,621,000 |  |  |  | 3,255,000 |  |  |  | 4,040,000 |  |  |  | - |  |  |  | 4,040,000 |
Adjusted sales and marketing |  |  | 234,000 |  |  |  | - |  |  |  | 234,000 |  |  |  | 547,000 |  |  |  | - |  |  |  | 547,000 |  |  |  | 998,000 |  |  |  | - |  |  |  | 998,000 |  |  |  | 1,177,000 |  |  |  | - |  |  |  | 1,177,000 |
Adjusted general and administrative (1) |  |  | 751,000 |  |  |  | 744,000 |  |  |  | 1,495,000 |  |  |  | 1,982,000 |  |  |  | - |  |  |  | 1,982,000 |  |  |  | 2,684,000 |  |  |  | 1,224,000 |  |  |  | 3,908,000 |  |  |  | 4,070,000 |  |  |  | - |  |  |  | 4,070,000 |
Adjusted depreciation and amortization |  |  | 28,000 |  |  |  | 17,000 |  |  |  | 45,000 |  |  |  | 54,000 |  |  |  | - |  |  |  | 54,000 |  |  |  | 61,000 |  |  |  | 32,000 |  |  |  | 93,000 |  |  |  | 106,000 |  |  |  | - |  |  |  | 106,000 |
Adjusted impairement of ROU lease |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,878,000 |  |  |  | - |  |  |  | 3,878,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,878,000 |  |  |  | - |  |  |  | 3,878,000 |
Share based compensation |  |  | (38,000 | ) |  |  | - |  |  |  | (38,000 | ) |  |  | 17,000 |  |  |  | - |  |  |  | 17,000 |  |  |  | 47,000 |  |  |  | - |  |  |  | 47,000 |  |  |  | 36,000 |  |  |  | - |  |  |  | 36,000 |
Change in fair value of warrant liability |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,468,000 |  |  |  | - |  |  |  | 6,468,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Gain on disposal of fixed assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Loss on issuance of warrants |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Interest expense |  |  | 9,000 |  |  |  | 18,000 |  |  |  | 27,000 |  |  |  | 17,000 |  |  |  | - |  |  |  | 17,000 |  |  |  | 9,000 |  |  |  | 34,000 |  |  |  | 43,000 |  |  |  | 45,000 |  |  |  | - |  |  |  | 45,000 |
Other income (expense), net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Income tax provision |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (52,000 | ) |  |  | - |  |  |  | (52,000 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Segment net loss |  | $ | 310,000 |  |  | $ | (1,119,000 | ) |  | $ | (809,000 | ) |  | $ | (6,119,000 | ) |  | $ | - |  |  | $ | (6,119,000 | ) |  | $ | (8,467,000 | ) |  | $ | (1,636,000 | ) |  | $ | (10,103,000 | ) |  | $ | (8,486,000 | ) |  | $ | - |  |  | $ | (8,486,000 | )
Total segment assets |  | $ | 5,244,000 |  |  | $ | 3,033,000 |  |  | $ | 8,277,000 |  |  | $ | 12,367,000 |  |  | $ | - |  |  | $ | 12,367,000 |  |  | $ | 5,244,000 |  |  | $ | 3,033,000 |  |  | $ | 8,277,000 |  |  | $ | 12,367,000 |  |  | $ | - |  |  | $ | 12,367,000 |
(1) |  | Excludes depreciation and amortization, share-based compensation, impairment of goodwill and impairment of a note receivable.
The following reconciles total segment assets to consolidated total assets as of June 30, 2025: Schedule of Reconcilation of Segment Assets to Consolidated
|  | June 30, |  |  | December 31, |
|  | 2025 |  |  | 2024 |
Total segment assets |  | $ | 8,277,000 |  |  | $ | 17,516,000 |
Goodwill |  |  | 4,418,000 |  |  |  | 786,000 |
Total assets |  | $ | 12,695,000 |  |  | $ | 18,302,000 |
The total segment assets of $17,516,000 at December 31, 2024 were comprised of $16,301,000 for the Singing Machine segment and $1,215,000 for the SemiCab segment. Revenue Disaggregation The Company disaggregates revenues by product line and major geographic region. The Company’s product lines consist of AI-enabled software logistics services and home karaoke consumer products. Revenue by product line for the three and six months ended June 30, 2025 and 2024 was as follows: Schedule of Revenue by Product Line
|  | Three Months Ended |  |  | Six Months Ended |
Product Line |  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
Karaoke machines |  | $ | 1,533,000 |  |  | $ | 1,257,000 |  |  | $ | 2,275,000 |  |  | $ | 2,308,000 |
Licensed products |  |  | 1,000 |  |  |  | 107,000 |  |  |  | 15,000 |  |  |  | 198,000 |
Kids youth electronics |  |  | 103,000 |  |  |  | 102,000 |  |  |  | 170,000 |  |  |  | 171,000 |
Microphones and accessories |  |  | (260,000 | ) |  |  | 865,000 |  |  |  | 523,000 |  |  |  | 1,818,000 |
Music subscriptions |  |  | 187,000 |  |  |  | 109,000 |  |  |  | 451,000 |  |  |  | 371,000 |
Logistics services |  |  | 1,152,000 |  |  |  | - |  |  |  | 1,275,000 |  |  |  | - |
Total revenue |  | $ | 2,716,000 |  |  | $ | 2,440,000 |  |  | $ | 4,709,000 |  |  | $ | 4,866,000 |
The geographic region of sales is based primarily on where the product and services were delivered. Revenue by geographic region for the three and six months ended June 30, 2025 and 2024 was: Schedule of Revenue by Revenue by Geographic Region
Geographic Area |  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
|  | Three Months Ended |  |  | Six Months Ended |
Geographic Area |  | June 30, 2025 |  |  | June 30, 2024 |  |  | June 30, 2025 |  |  | June 30, 2024 |
North America |  | $ | 1,410,000 |  |  | $ | 2,316,000 |  |  | $ | 3,403,000 |  |  | $ | 4,742,000 |
Australia |  |  | 46,000 |  |  |  | 124,000 |  |  |  | 46,000 |  |  |  | 124,000 |
India |  |  | 1,137,000 |  |  |  | - |  |  |  | 1,137,000 |  |  |  | - |
All Others |  |  | 123,000 |  |  |  | - |  |  |  | 123,000 |  |  |  | - |
Total revenue |  | $ | 2,716,000 |  |  | $ | 2,440,000 |  |  | $ | 4,709,000 |  |  | $ | 4,866,000 |

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- Definition The entire disclosure for reporting segments including data and tables. 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