Good day, everyone, and welcome to The Singing Machine fiscal year 2022 earnings report. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one, that's star one on your telephone keypad. You may withdraw yourself from the queue by pressing star two. Please note this call may be recorded and I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Brendan Hopkins. Please go ahead.
Thank you everyone for joining us today. We have a brief safe harbor and then we'll get started. Except for historical information contained herein, the statements in this conference call are forward-looking statements that are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from forecasted results. With that said, I would like to turn the call over to Gary Atkinson, CEO of The Singing Machine.
Thank you, Brendan. Good morning, everyone. My name is Gary Atkinson, Singing Machine CEO. I'm joined as well this morning by with Lionel Marquis, Company CFO, and Bernardo Melo, our Chief Revenue Officer. I wanna start off the call by thanking everyone for taking the time to listen in and participate in our fiscal year 2022 earnings call. The twelve months ended March 31, 2022 was a unique period in the company's history. We faced a number of very significant challenges and headwinds to our business, but I'm proud to say that our entire global team executed very well. We overcame a series of daily obstacles related to global supply chain and found a way to ensure our critical retail channel partners had the products they needed to support strong consumer demand for our karaoke products.
Our CFO, Lionel Marquis, will provide additional details into the results of operations, but I wanted to celebrate some key accomplishments. First, despite all of the challenging supply chain obstacles from last year, we still managed to deliver over one million karaoke products to the worldwide market, generating over $47.5 million in net sales, which represents approximately $1.7 million or 4% growth versus the $45.8 million we generated in the last fiscal year. Secondly, we cemented a critical technology relationship with our most important strategic partner, Stingray. Stingray is one of the leading digital content licensing providers throughout the world, and they play a key role in our shareholder reconstitution, our Nasdaq uplist, and a number of key technology initiatives that we launched during fiscal year 2022.
Finally, we've completed a critical new step in expanding our relationship with Walmart through their consumer electronics division. This has the potential to drive incremental revenue growth for the next several years, and Bernardo will unpack more of this later in our call. Lionel's gonna walk you through the details of the results of operations for the last fiscal year, but before he does that, I wanted to set the stage for his part of the call by emphasizing the success of our team during the supply chain disruptions of last year. In terms of supply chain, we have spent decades cultivating some of the best manufacturing relationships in southern China. As a result, we were able to secure product on time and on budget to meet the U.S. holiday retail season.
Our Hong Kong operations team leveraged our extensive knowledge and network of shipping and logistics relationships to get our product from the docks in China to the ports of Long Beach and L.A. in time to hit the holidays. It is noteworthy that during that time, ocean containers and vessels suffered an unprecedented disruption, causing container prices to skyrocket from roughly 4,000 per container to over 20,000 per 40-ft container. In all, we estimate approximately $2.4 million hit to our bottom line caused by the unexpected surge in container pricing. The good news is that so far this year, container prices have stabilized, and they've come way down from the peak where they were last year. However, that being said, prices still remain elevated above normal. With this brief summary, I would like to turn the call over to Lionel Marquis, company CFO.
Thank you, Gary. I also wanted to thank all of the participants in today's earnings call. I believe we delivered some very solid results for fiscal year 2022, particularly when you consider the operational and economic headwinds that we faced during the year, as Gary alluded to. First, I'd like to discuss our sales growth for 2022. Our revenues for the twelve months ended March 31, 2022 were $47.5 million. That represents a 4% growth when compared to our sales of $45.8 million for the prior fiscal year. I think it's worth noting that the strength and resiliency of our sales growth in fiscal year 2021, we enjoyed a very strong year-over-year sales growth, primarily due to two factors.
First, we benefited from the emphasis on consumers finding safe and home-centric forms of entertainment during the bulk of the global pandemic. Secondly, Singing Machine's successfully launched its Carpool Karaoke device, which proved to be very well received. These two factors led to almost 19% revenue growth in fiscal year 2021. Now, when you consider 2021 as a banner year, and then you factor in all of the supply chain headwinds, it can be hard to imagine the fiscal year 2022 outperforming such a banner year. However, without the benefit of any new major product launches to stimulate demand, overall consumer demand remained very strong and we delivered steady growth. This is a testament to our strong brand recognition and consumer reach to virtually every meaningful retailer in the United States.
As for the cost of goods sold and their inherent impact on gross margins, we generated $10.8 million in gross income for the fiscal year. This represents approximately 12% decrease from the $12.8 million generated in fiscal year 2021 in gross profit. The decrease was driven heavily by margin compressions as we experienced significant increases in shipping and logistics costs getting product from China to various end markets in the United States. The overall impact to the margins was a reduction of approximately 400 basis points. Overall, these price increases have largely stabilized. In some cases, shipping costs have come down moderately. Provided conditions do not change, currently don't expect any shipping logistics environment to have an outsized impact in our financial performance for the rest of the calendar year.
From a cost control perspective, we placed a heavy emphasis on minimizing discretionary spending during the fiscal year. As a result, our selling expenses decreased almost 10% for the fiscal year ended March 31, 2022, from $4.0 million to $3.6 million. Our cost control efforts in part benefited from the limitations on an in-person sales and marketing, which reduced travel and other related expenses. Partly offsetting these reductions in costs were legal, accounting, and other professional services expenses in advance that we incurred in advance for preparation in both the private placement in August 2021 and the planning of the Nasdaq uplisting undertaken in 2022. Much of these professional services were largely one-time in nature, and we anticipate seeing these expenses subside to some degree going forward.
The net effect of these results of operations generated a net gain of approximately $200,000, which represents a $0.02 earnings per share. Turning to our balance sheet, we held approximately $2.3 million in cash as of March 31, 2022, which is significantly higher than the $300,000 we had on hand at the end of fiscal year 2021. We coupled with cash proceeds from our recent $4.4 million capital raise in conjunction with our uplisting to Nasdaq. The company has taken meaningful steps to enhance its overall financial flexibility and strength during the overall period of economic uncertainty.
At this point, that is my report, and I'd like to turn the call back over to Gary to discuss recent developments and provide additional color on how we see the remainder of the calendar year unfolding.
Thank you, Lionel. At this point in the call, I would like to turn it over to Bernardo Melo, who will give us a bit of a recap on fiscal year 2022 sales. Go ahead, Bernardo.
Good morning, everyone. I would also like to thank you for taking interest in our company and listening today. I'm sure we have some new listeners. I just wanna recap a little bit of what we are doing in the retail landscape. Singing Machine has been dominant, especially in North America with all the big box retailers throughout representing the home karaoke segment, doing business with big box retailers like Walmart and Target, warehouse clubs like Costco, Sam's Club, and BJ's, e-commerce like Amazon and all the dropship that we do with those major retailers that I mentioned before. We're also doing a lot of business with regional retailers like BrandsMart and P.C. Richard, for those that know those retailers.
We usually dominate somewhere around 2-6 ft of space of the home karaoke network segment and we've been doing so for many years. With that being said, you know, like Gary highlighted, 2022 and I'll talk about fiscal year but you know also reference calendar year as well. 2022 was definitely a big challenge all around for everyone doing business in the retail level. With container prices increasing from anywhere from $4,200 all the way upwards to $20,000 a container. We set a lot of our business almost a year, a year and a half in advance, so we had programs in place before we incurred these costs.
Fortunately, we were able to pass some costs, but not fast enough as a lot of retailers have 90-day windows before they could accept price increases. With that being said, we did have good sell-through for the products that we did get in. We had good sell-through at retail. The holidays are still very strong for us with Black Friday and promotional sales going well. A lot of the retailers coming out clean with some of those holiday sales now. Some did get shipments very late in December as there were delays at the port, and those carried over to our fourth quarter calendar year first quarter. The ordering in the fourth quarter was not as relevant as 2021 during the fourth quarter.
That's just because of inventory coming in. Also a lot of retailers have an inventory of stock that were non-karaoke, but that did restrict or open the buy dollars across the board. We were caught in that and we're no different than anyone else, as many companies have reported that in their earnings. We also were able to introduce, we're able to upgrade our Wi-Fi machine at Costco that did really well, that has a lot of back-end potential. Increased our business in Australia. We cleaned our business up in Canada by finishing our partnership with a distributor and going direct there.
We also signed a new partnership in the U.K. with a much larger distributor that's better positioned to handle our product throughout those key retailers in the U.K. Those things are good. Looking forward a little bit, you know, we secured key business with Walmart CE. We gained 4 ft of space there. A very key business for us because it allowed us to introduce a brand-new technology that we're calling Singcast, which allows the consumer to stream in our app through the machine and in conjunction with the TV, the cell phone, the app and the machine. We're taking advantage of that technology. We've introduced, I mean, two new items at Walmart CE, and they already seem to be off to a good start.
Another thing that we're focusing on is signing on some key licensing deals that will help us expand distribution within our key retail partnerships, not only through the CE department, but also to toys and some other departments, like celebrations and things like that. We've also started doing some heavy analysis on A/B testing for direct-to-consumer. We have two top leaders in the industry currently testing all these metrics to see how we could expand on it. It just allows us to be not as reliant on retail and expanding our distribution to direct-to-consumer, which seems to be a very strong point for karaoke as well. We're working on some other key partnerships as well that are gonna be outside of our normal business structure.
I'm sure we'll be announcing some of those in future earnings calls. With that being said, I'll turn it back to Gary, and I'll stick around for additional questions on the back end.
Perfect. Thank you, Bernardo. I'm mindful of time. I wanna make sure I save some time for Q&A. Before that, I just quickly wanna take a few minutes to shift gears and highlight some key non-financial accomplishments that our team completed during fiscal year 2022 that we believe have established strong growth and innovation momentum for the company as we move forward. Firstly, during fiscal year 2022, we successfully completed a $10 million private placement back in August of 2021. The primary purpose of this transaction was to basically reinvigorate our shareholder base and buy out our legacy majority shareholder of more than 20 years. The rationale for this was pretty simple. The management team had identified certain growth and innovation opportunities that we believe the company is ideally situated to take advantage of.
However, our former majority shareholder had a very traditional hardware-only view for the company, and we felt it was critical that we expanded into the music content and other verticals in order to successfully continue to keep growing. As part of this process to transform the company, we also started back in fiscal year 2022 pursuing an uplist to a national exchange, and Nasdaq made a lot of sense for us at the time. Ultimately, the hard work that we put in last summer led to a successful uplisting to the Nasdaq this spring. We believe that this new platform will serve our investors well as we execute and share our growth story moving forward. Secondly, we have expanded our most important strategic relationship with Stingray.
They are a leading global digital music content company, and their technology plays a key role in our emerging subscription-based growth model. The capability was also central to our new Wi-Fi streaming and our new casting-enabled products that were very well received by the Walmart consumer electronics team. We believe we can leverage these technology-driven capabilities to capture more incremental opportunities in terms of average sales price per machine, improve margins, and drive follow-on subscription services to keep the customer coming back for more. Finally, before we jump into Q&A, we are also in the process of thinking bigger. We are underway in shifting our overall thinking from being the number one market leader in home karaoke to being the number one market leader in all aspects of karaoke.
We intend to continue to dominate the in-home market as we already have done, but we also want to improve our penetration into the car and into connected devices and smart TVs. Overall, we seek to leverage our well-known brand to expand our reach into larger, more lucrative markets. We look forward to providing additional updates on these efforts as we continue to execute on our business strategy in the coming future. At this time, I would like to open it up now for any questions that anyone might have.
At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question, and we'll pause for a moment to allow questions to queue. Our first question comes from Rommel Dionisio with Aegis Capital.
Good morning. Thanks for taking my question. You know, I saw a press release in early June about, you know, full line assortment of products being available in Walmart and on the electronics aisle, more importantly. I know it's been just a few weeks and it's not peak season, but I just wondered if you could relay some, you know, sort of initial feedback from the placement there. Obviously, a significant win in terms of expansion of shelf space in a key retailer like Walmart. Yeah, just wondering how that's gone so far and how it looked going into, you know, the next several months, more in a peak season. Thank you.
Yeah. Yeah. Thank you for the call. I'll take that one. You know, it's although it's set in mid-May of this year, which is not normally traditional setting for karaoke. Usually karaoke sets sometimes in September or October. Numbers are off to a good start. A couple of the really encouraging points on it. Number one, people are really understanding the Singcast. They're buying it. Numbers are promising right off the bat. We partnered with a Stingray company called Chatter that allows us to put a QR code right outside the box, and we're able to see what sort of engagement people are doing when they're accessing this QR code.
We've seen that people are using that QR code to determine which is the right model for them. Originally we thought that QR code was mostly gonna be used on how to set up the machine, but we're actually seeing that people are engaging and trying to find out what model is right for them. We're able to introduce the two Singcast model. We also introduce a brand new product category for us, which is more of a professional mic for vlog and podcasting and things like that, which could be a new array of products for us. That's also been encouraging. Still our traditional karaoke. Although there's new technology there, our traditional karaoke technology is still holding up as well.
We're excited about we already had conversations for 2023, believe it or not, on that section. The feedback from the buyer was that she wants to expand even in 2022. We're off to a good start and we're really happy about it.
Just one other point, just to add to what Bernardo said. The other key takeaway from the sales so far is the higher price points are actually performing well, and that was a concern of mine. You know, typically anytime you deal with Walmart, their customers are so price sensitive, and there was concerns whether the higher price points in the assortment would perform, and they have. They've performed really well so far. So that's a promising sign as well.
Gary, just on that, could you just clarify specifically? You're referring to like what, $99-$149? And what was the previous high price point at Walmart before this, you got the electronics out? Thank you.
The previous high point was $59, which was in the toy department. We've done some features here and there, but in line product, the previous high was $59. Now we're carrying three items above $99. We're carrying three items, a $99, a $129, and a $149. Initially, the $129 beat all items in sales, which was very encouraging for us. The $149 item has been steady all along. We have a really cool promotion beginning in October for a rollback, which we think is even gonna elevate that item even more.
Great. That's great feedback. Thanks so much, gentlemen.
I think our next question comes from Corey Dortch with Paradigm Opportunities Fund.
Hey, Gary, Lionel, and Bernardo. First and foremost, congrats on a fantastic year and significant milestones, including taking the company back to business and focusing on an attractive high growth arena. I want to congratulate you first. Thank you.
Thank you, Cory.
Second, I was wondering if you guys could double click on subscription revenue and the Stingray partnership. In the context of the company's margins last year, which from my understanding, you know, just given the macroeconomics, combined with the supply chain issues obviously, hurt margins a bit. How do you see that going forward, when you think about the Stingray partnership, the subscription revenue, you know, and how a lot of that goes straight to the bottom line?
Sure. I can address that. Thank you, and thank you for the question, Cory. I think the way we think broadly about the subscription-based business is it's working. You know, we've seen it when we tightly integrate the music and the hardware of the machine. We've seen that that's had a significant impact on just how sticky that service can be. For instance, we launched a new high price point Wi-Fi pedestal at Costco and Sam's Club, and that had Wi-Fi and the music content services built directly into the machine. We saw that the rate of retention on those customers that converted to paying subs was astronomically higher than anything else we've seen before.
In a similar situation with the new Walmart consumer electronics program, we introduced this new technology called Singcast, which enables people to cast their karaoke videos from their mobile phone up to their TV. Again, we're seeing very strong numbers just initially right off the bat through the Singcast technology line. I think the overall broader point is that when we take the effort to integrate the machines with the music, the success is much more apparent.
Yeah. That's very helpful. I really appreciate that color, Gary. I guess to follow up with that commentary, you know, Stingray, the Stingray partnership, which is a great partnership and has recently shown more and more traction. How do you think about product focus going forward? If you look at your catalog, obviously, the company offers a number of SKUs. If you look at the bottom lines, blended, clearly there are some SKUs that just don't achieve the margin that is as attractive or quite frankly, any margin relative to the subscription revenues. How do you think about where you focus going forward and how you could see those margins changing through the product shift?
Sure. I mean, I think you're referring to. We certainly have a large percentage of our overall hardware portfolio that are lower margin drivers, so mainly promotionally driven products. For us, you know, those are key in terms of just maintaining a lot of those retail relationships.
Mm-hmm.
Those are sort of the key test, foot in the door. We know they-
Mm-hmm.
Necessarily deliver a lot of margin and profit to the bottom line.
Right.
They're essential to just continue to sort of hold on to our retail shelf space, because if we don't do it.
Got it.
We know one of our competitors will. We're not gonna walk away from that. I think the takeaway from your question is we're definitely gonna be focusing a lot more of our energy in terms of developing new karaoke products that work well with the sort of the integrated Stingray music content offerings, right?
Yeah.
The more. It's just improving. The more that we do.
Yeah.
With music content built in, the better the experience is for the consumer, and for the subscription service itself. I hope that answers your question.
Yeah. Cory, one of the things that we're looking at heavily, and this has been great that Stingray's been a strong partner with us in helping us introduce us to new partnerships such as, like, Roku TV or the car, in-car entertainment. We see that as a huge opportunity for us to deliver product that is a bit higher margin but also works well with the Stingray ecosystem. They've been good enough to include us in a lot of those conversations. Therefore we're gonna be trying to focus also our product development on addressing those segments.
That makes a lot of sense. If I'm understanding it correctly, essentially what you're saying is while your gross margin on some of your products may not be as attractive, the consumer generally is attracted to that product. It helps with your brand awareness and to continue to keep that shelf space, which therefore allows you to penetrate with new innovative technology and products that have the subscription integrated. I get that and I just again wanna say congratulations. I think something that's become evidently clear to me over the past couple quarters is the experience, knowledge and relationships that you guys as a management team have developed with big box retail as well as online marketplaces.
Mm-hmm.
Is truly invaluable, and indispensable. I really thank you guys for your efforts and everything you did to grow a really big company.
Thank you, Cory. We certainly appreciate those kind words.
As a reminder, if you'd like to ask your question, please dial star one on your telephone keypad. We'll take our next question from Eric Nickerson with Third Century Partners.
Hey, good morning, guys. Yeah, on the subscription. On the subscription business, let me ask a little bit more on that. What were the subscription revenues for those in 2022, fiscal year 2022?
So the, um-
Can you hear me?
Yes, I can hear you. Yeah. We don't break out the revenue in our, obviously, in our earnings statement. They're not a sort of material enough number just yet for us to be breaking out as a different segment for that revenue. But I can tell you that it is well north of $1 million and growing pretty significantly. Hopefully that addresses your question.
Yeah, I guess that's good enough. I mean, I saw, like, something like $500,000 or 1% of sales somewhere. I forget where. So I guess you're presuming, you know, triple digit growth rates on that over the next couple two or three years. Would I be correct in that? It's gonna have to grow that much to become significant. And you talk a lot about it, and I guess it's the future of the company with the margins and all. Am I correct in that you expect that to grow just exponentially, at least for the next few years?
Yeah, I think we do. I think the key factor, though, is number of machines that we sell into the market, right? The best way to sell the service is to the customers that are buying the machines.
Yeah.
Our goal is to convert more and more of those machines from more of a traditional karaoke machine into more of an integrated technology machine that supports the Stingray services. That's kind of the burden that's on us right now is trying to innovate and just continue to keep releasing more and more new products that support that Stingray platform.
Okay, good enough. Just some questions on the finances. We had, I guess you raised a note about just back of the envelope here, $7 million-$8 million between last year and this year's secondary offerings and the buybacks and all. I look at the balance sheet, I see we've got really a lot of inventory. I'm guessing most of that money has been sunk into inventory. Which leaves me wondering, like, how does the financial situation look to go ahead this year and finance whatever it is more that you need for the holidays in terms of the inventory and the receivables? How are we set up to finance that stuff? Are we gonna need more secondaries? Do you have bank financing lined up? Do you have enough money in the till? How does it look?
We have financing. We currently have financing with Crestmark and Ironhorse Funding that has served us well. It's kind of an evergreen type of situation. It's up to us to terminate, you know, if we don't give a termination notice on the, you know, at the anniversary, the renewal each year, if you will, the agreements continue to move on, as evergreen. Certainly I'm working on, you know, alternative financing because that's, you know, that market is not the cheapest market right now. I'm working diligently on, you know, alternative financing for that point. But there's no concern about having financing for what we have right now. You mentioned that we raised approximately $8 million over the last year.
A lot of it went to, you know, $7 million of it, of the first tranche, went to buy out the, you know, the parent company, if you will. Not seven million, but, you know, it's a large portion of it went to buy out the former parent corporation. It left us with, you know, approximately $4 million-$5 million of working capital, operating capital, much of which we did use to buy down the inventory. Now that having been said, the inventory that we do have on hand, there's no obsolescence involved here, you know, at least not in the near future. We'll have to buy less inventory this year than we had to last year, which is going to help us on, you know, the cost situation.
If cost of containers and stuff do start going up again and, you know, logistics issues start existing, we'll have that. It is active inventory. It is inventory that's gonna be moved. We do have, you know, plans for placement, if you will, on all of that inventory that's there. I believe that we're, you know, we have sufficient cash to operate between the, you know, what we've raised so far. We're not contemplating another, you know, raise at, you know, at this point in time. We think we, you know, from what our projections are for our operations and also what we have from financing will be sufficient for the next 12 months to take care of the operation for this year.
Okay. Yeah, one more quick one for you, Lionel. I looked through the financial statements. I noticed, you know, we said we had net income of $230,000 on the bottom line. Then over on the balance sheet, it shows that our accumulated deficit increased by something like $2.6 million. My understanding there is, and maybe you can educate me here, that your net income figures should go over directly and adjust the accumulated deficit in the other direction by the amount of net income. So what happened there? Why? Do I not understand your accounting system or
Well, no, I'm not sure I understand the question. I'll tell you what I'll do is I'll take a look at it for you and because I'm not sure I understand your, you know, your question.
Well, let me just put it simply. You had $230,000 of net income.
Right.
The accumulated deficit shows an increase of $2.6 million. I just wanna know, you know, why that is. That's what I'd like you. Maybe give me a call or something, or I'll call you later on.
Yeah. Why don't we take this offline? Because I, you know,
Sure.
I'll take a look at that and see. Because we've, you know, a lot of things have happened with equity over the past six months, so it may have something to do with that, but I'll-
All right.
I'll take a look at it.
Okay. Just a few questions then quickly about our new majority owner. Is he wanting to install any directors on the board?
Sure. I'll tackle that. Nothing has been publicly announced yet. I know that I believe that BitNile, in one of their Schedule 13D filings, did say that they had intention to add directors to the board. Obviously we're still in the process of getting to know each other and understanding sort of the mutual working relationship moving forward. I will say it has been very positive. We've met and spoken with Todd Ault, who is their Executive Chairman of BitNile. Who's been so far just very supportive of our business and looking for ways to help us grow. We are very sort of confident in terms of moving forward together. Right now there's been no, we haven't finalized any number of directors on the board. Once we do, you know, obviously we'll make those disclosures.
Okay. Has he proposed any strategy shifts or management changes or anything like that that would impact what you guys wanna do going forward?
No. So far, no. I mean, he has been very clear and adamant that he is not looking to run this business. He has a lot of faith and has shown a lot of support to the existing management team that's in place now. He just felt like we were undervalued. You know, I think. I mean, I don't wanna put words in his mouth, but I feel like he sees the opportunity with all of the retail distribution that we have with every single major big box retailer, and he felt like the street wasn't really appreciating what we have and felt like there was opportunities to help us expand. I think I'll leave it at that.
Hey, Eric. Sorry, it's Lionel again. Just to go back to your question earlier. If you take a look at the consolidated statements of shareholders' equity, you'll notice that there was a $2.8 million decrease in the accumulated deficit because of the buyback of and retirement of treasury shares when we took out the majority shareholder back in August. That was approximately $2.8 million of shares bought back and retired into the treasury, you know. That's what reduced the accumulated deficit. Well, you had a $330,000 pickup and a buyback, if you will, of treasury share redemption and retirement of treasury shares w hen we took out the parent, that was approximately $2.8 million. The net was $2.6 million to the accumulated deficit.
Okay. This is the operator. I was just letting you know Eric's line got disconnected during the middle of that. There are currently no further questions at this time.
Perfect. All right. Well, thank you everybody, and I appreciate everybody taking the time to listen to our fiscal year 2022 year-end earnings call, and thanks for everybody that asked some great questions. We look forward to speaking with you all next month to cover the results of our first quarter for fiscal year 2023, so right around the corner. All right. Thanks everybody. That concludes our call today. Have a great day, and we'll talk to you all soon. Take care.
Thank you for joining The Singing Machine fiscal year 2022 earnings report. This does conclude today's program. You may now disconnect and have a great weekend.