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Segment Information and Revenue Disaggregation
 6 Months Ended
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:

  

                                                 
   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:

 

   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:

  

 

             
   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:

  

Geographic Area            
   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