The Singing Machine Company, Inc.

Good day, everyone, and welcome to the Singing Machine Fiscal 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 1, that's star 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star 2. 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 the Safe Harbor Provisions of the Private Security Allegation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties.

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 mello our chief revenue officer I want to start off the call by thanking everyone for taking the time to listen in and participate in our fiscal year 2022 earnings call. The 12 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 1 million karaoke products to the worldwide market, generating over 47.5 million in net sales. This 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. And 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 going to 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 US 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 LA 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-foot 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.