msn-10q_20211231.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-07731

EMERSON RADIO CORP.

(Exact name of registrant as specified in its charter)

Delaware		22-3285224
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

35 Waterview Blvd., Suite 140, Parsippany, NJ		07054
(Address of principal executive offices)		(Zip code)

(973) 428-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $.01 per share	MSN	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of common stock as of February 11, 2022: 21,042,652.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item 1. Financial Statements		3
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition		14
Item 3. Quantitative and Qualitative Disclosures About Market Risk		19
Item 4. Controls and Procedures		19
PART II — OTHER INFORMATION
Item 1. Legal Proceedings		21
Item 1A. Risk Factors		21
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		21
Item 3. Defaults Upon Senior Securities		21
Item 4. Mine Safety Disclosure		21
Item 5. Other Information		21
Item 6. Exhibits		21
SIGNATURES		22

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

EMERSON RADIO CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended December 31,						Nine Months Ended December 31,
	2021			2020			2021			2020

Net revenues:
Net product sales	$	2,509		$	2,273		$	6,290		$	5,718
Licensing revenue		65			60			195			180
Net revenues		2,574			2,333			6,485			5,898
Costs and expenses:
Cost of sales		1,826			1,754			4,786			4,519
Selling, general and administrative expenses		1,469			1,560			4,196			4,601
		3,295			3,314			8,982			9,120
Operating loss		(721	)		(981	)		(2,497	)		(3,222	)
Other (loss) income:
Loss on settlement of litigation		(450	)		—			(450	)		—
Interest income, net		7			18			40			128
Income from governmental assistance programs		—			28			207			83
Loss before income taxes		(1,164	)		(935	)		(2,700	)		(3,011	)
Provision for income tax expense		—			10			11			15
Net loss		(1,164	)		(945	)		(2,711	)		(3,026	)
Basic loss per share	$	(0.06	)	$	(0.04	)	$	(0.13	)	$	(0.14	)
Diluted loss per share	$	(0.06	)	$	(0.04	)	$	(0.13	)	$	(0.14	)
Weighted average shares outstanding
Basic		21,043			21,043			21,043			21,043
Diluted		21,043			21,043			21,043			21,043

The accompanying notes are an integral part of the consolidated financial statements.

EMERSON RADIO CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands except share data)

	December 31, 2021		March 31, 2021

ASSETS
Current Assets:
Cash and cash equivalents	$	24,744	$	5,245
Short term investments		—		25,045
Accounts receivable, net		2,619		691
Inventory		2,574		1,961
Prepaid purchases		287		361
Prepaid expenses and other current assets		383		289
Total Current Assets		30,607		33,592
Non-Current Assets:
Property and equipment, net		2		—
Right-of-use asset-operating leases		455		213
Right-of-use asset-finance leases		3		3
Other assets		90		94
Total Non-Current Assets		550		310
Total Assets	$	31,157	$	33,902
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and other current liabilities		1,142		788

SEC Form 10-Q filed by Emerson Radio Corporation