Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 15, 2018 | Sep. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MSN | ||
Entity Registrant Name | EMERSON RADIO CORP | ||
Entity Central Index Key | 32,621 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 22,571,951 | ||
Entity Public Float | $ 12,501,554 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net revenues: | ||
Net product sales | $ 14,363 | $ 17,635 |
Licensing revenue | 659 | 3,616 |
Net revenues | 15,022 | 21,251 |
Costs and expenses: | ||
Cost of sales | 13,921 | 16,277 |
Other operating costs and expenses | 60 | 199 |
Selling, general and administrative expenses | 4,923 | 5,101 |
Total costs and expenses | 18,904 | 21,577 |
Operating (loss) | (3,882) | (326) |
Other income: | ||
Interest income, net | 492 | 261 |
(Loss) before income taxes | (3,390) | (65) |
Provision for income tax expense | 3,461 | 172 |
Net (loss) | $ (6,851) | $ (237) |
Basic (loss) per share | $ (0.27) | $ (0.01) |
Diluted (loss) per share | $ (0.27) | $ (0.01) |
Weighted average shares outstanding | ||
Basic | 25,282 | 27,115 |
Diluted | 25,282 | 27,115 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 25,096,000 | $ 27,471,000 |
Short term investments | 16,000,000 | 25,078,000 |
Accounts receivable, net | 1,884,000 | 1,208,000 |
Royalty receivable | 63,000 | 99,000 |
Inventory | 3,164,000 | 838,000 |
Prepaid purchases | 360,000 | 750,000 |
Prepaid expenses and other current assets | 497,000 | 1,494,000 |
Total Current Assets | 47,064,000 | 56,938,000 |
Property, plant, and equipment, net | 14,000 | 18,000 |
Deferred tax assets, net | 528,000 | 791,000 |
Other assets | 151,000 | 101,000 |
Total Non-current Assets | 693,000 | 910,000 |
Total Assets | 47,757,000 | 57,848,000 |
Current Liabilities: | ||
Accounts payable and other current liabilities | 803,000 | 756,000 |
Income tax payable | 250,000 | 165,000 |
Deferred revenue | 50,000 | |
Total Current Liabilities | 1,103,000 | 921,000 |
Non-Current Liabilities: | ||
Federal tax payable | 2,871,000 | |
Total Non-current Liabilities | 2,871,000 | |
Total Liabilities | 3,974,000 | 921,000 |
Shareholders’ Equity: | ||
Series A Preferred shares — 10,000,000 shares authorized; 3,677 shares issued and outstanding; liquidation preference of $3,677,000 | 3,310,000 | 3,310,000 |
Common shares — $0.01 par value, 75,000,000 shares authorized; 52,965,797 shares issued at March 31, 2018 and March 31, 2017, respectively; 22,799,088 and 27,065,852 shares outstanding at March 31, 2018 and March 31, 2017, respectively | 529,000 | 529,000 |
Additional paid-in capital | 79,792,000 | 79,792,000 |
Accumulated deficit | (9,265,000) | (2,414,000) |
Treasury stock, at cost (30,166,709 and 25,899,945 shares at March 31, 2018 and March 31, 2017, respectively) | (30,583,000) | (24,290,000) |
Total Shareholders’ Equity | 43,783,000 | 56,927,000 |
Total Liabilities and Shareholders’ Equity | $ 47,757,000 | $ 57,848,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, shares authorized | 10,000,000 | 10,000,000 |
Preferred shares, shares issued | 3,677 | 3,677 |
Preferred shares, shares outstanding | 3,677 | 3,677 |
Preferred shares, liquidation preference | $ 3,677,000 | $ 3,677,000 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 75,000,000 | 75,000,000 |
Common shares, shares issued | 52,965,797 | 52,965,797 |
Common shares, shares outstanding | 22,799,088 | 27,065,852 |
Treasury stock, shares | 30,166,709 | 25,899,945 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock |
Balance at Mar. 31, 2016 | $ 57,230,000 | $ 3,310,000 | $ 529,000 | $ 79,792,000 | $ (2,177,000) | $ (24,224,000) |
Balance (in shares) at Mar. 31, 2016 | 52,965,797 | |||||
Purchase of treasury stock | (66,000) | (66,000) | ||||
Net loss | (237,000) | (237,000) | ||||
Balance at Mar. 31, 2017 | $ 56,927,000 | 3,310,000 | $ 529,000 | 79,792,000 | (2,414,000) | (24,290,000) |
Balance (in shares) at Mar. 31, 2017 | 52,965,797 | 52,965,797 | ||||
Purchase of treasury stock | $ (6,293,000) | $ (6,292,620) | (6,293,000) | |||
Net loss | (6,851,000) | (6,851,000) | ||||
Balance at Mar. 31, 2018 | $ 43,783,000 | $ 3,310,000 | $ 529,000 | $ 79,792,000 | $ (9,265,000) | $ (30,583,000) |
Balance (in shares) at Mar. 31, 2018 | 52,965,797 | 52,965,797 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net (loss) | $ (6,851) | $ (237) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 8 | 16 |
Deferred tax assets | 263 | 610 |
Asset allowances and reserves | (166) | (554) |
Changes in assets and liabilities: | ||
Accounts receivable | (510) | 2,146 |
Royalty receivable | 36 | 1,193 |
Inventory | (2,326) | 1,218 |
Prepaid purchases | 390 | 121 |
Prepaid expenses and other current assets | 997 | (938) |
Other assets | (50) | 31 |
Accounts payable and other current liabilities | 47 | (935) |
Due to affiliates | (512) | |
Deferred revenue | 50 | |
Income taxes payable | 2,956 | (290) |
Net cash (used) provided by operating activities | (5,156) | 1,869 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of short term investments | 70,136 | 33,209 |
Purchases of short term investments | (61,058) | (38,132) |
Proceeds from restricted cash | 500 | |
Additions to property, plant and equipment | (4) | (5) |
Net cash provided (used) by investing activities | 9,074 | (4,428) |
Cash Flows from Financing Activities: | ||
Purchases of treasury stock | (6,293) | (66) |
Net cash (used) by financing activities | (6,293) | (66) |
Net (decrease) in cash and cash equivalents | (2,375) | (2,625) |
Cash and cash equivalents at beginning of the year | 27,471 | 30,096 |
Cash and cash equivalents at end of the year | 25,096 | 27,471 |
Cash paid for: | ||
Interest | 4 | 2 |
Income taxes | $ 320 | $ 1,524 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES: Background and Basis of Presentation The consolidated financial statements include the accounts of Emerson Radio Corp. (“Emerson”, consolidated — the “Company”), and its subsidiaries. The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses the Emerson trademark for a variety of products domestically and internationally. It is the Company’s policy to prepare its financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Certain items in prior year financials were reclassified to conform to current year presentation. Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents Highly liquid investments with original maturities of three months or less at the time of purchase are considered to be cash equivalents. Fair Values of Financial Instruments The carrying amounts for cash and cash equivalents, trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these financial instruments. Investments The Company determines the appropriate classifications of securities at the time of purchase and evaluates the continuing appropriateness of that classification thereafter. Realized gains and losses are determined on a specific identification basis and are reported separately as a component of income. Decreases and increases in the fair value of securities deemed to be other than temporary are included in earnings. Long-Lived Assets The Company’s long-lived assets include property, plant and equipment. At March 31, 2018, the Company had approximately $14,000 of property, plant and equipment, net of accumulated depreciation. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topics 350 “Intangibles” and 360 “Property, Plant and Equipment”. The recoverability of assets held and used is measured by a comparison of the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Future events could cause the Company to conclude that impairment indicators exist and that long-lived assets may be impaired. If impairment is deemed to exist, the asset will be written down to fair value. Any such impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. As of March 31, 2018, management expects the carrying value of its long-lived assets to be fully recoverable. Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets being depreciated. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and betterments are capitalized and depreciated over the remaining estimated useful lives of the related assets. At time of disposal, the cost and related accumulated depreciation are removed from the Company’s records and the difference between net carrying value of the asset and the sale proceeds is recorded as a gain or loss. Depreciation of property, plant and equipment is provided by the straight-line method as follows: • Computer, Equipment and Software Three years to seven years • Furniture & Fixtures Seven years • Leasehold Improvements Straight-line basis over the shorter of the useful life of the improvement or the term of the lease Revenue Recognition Distribution of products Revenues from product distribution are recognized at the time title passes to the customer. Under the Direct Import Program, title passes in the country of origin. Under the Domestic Program, title passes primarily at the time of shipment. Estimates for future expected returns are based upon historical return rates and netted against revenues. Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for the Company’s products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 605, “Revenue Recognition”, subtopic 50 “Customer Payments and Incentives” and Securities and Exchange Commission Staff Accounting Bulletins 101 “Revenue Recognition in Financial Statements,” and 104 “Revenue Recognition, corrected copy” (“SAB’s 101 and 104”). At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 605, “Revenue Recognition”, subtopic 15 “Products”, (i) sales incentives offered to customers that meet the criteria for accrual under ASC topic 605, subtopic 50 and (ii) under SAB’s 101 and 104, an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within SAB 104’s and 101’s four revenue recognition criteria, all of which are required to be met in order to recognize revenue. If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered. Licensing In addition to the distribution of products, the Company grants licenses for the right to use the Company’s trademarks for a stated term for the manufacture and/or sale of consumer electronics and other products under agreements which require payment of either i) a non-refundable minimum guaranteed royalty or, ii) the greater of the actual royalties due (based on a contractual calculation, normally comprised of actual product sales by the licensee multiplied by a stated royalty rate, or “Sales Royalties”) or a minimum guaranteed royalty amount. In the case of (i), such amounts are recognized as revenue on a straight-line basis over the term of the license agreement. In the case of (ii), Sales Royalties in excess of guaranteed minimums are accounted for as variable fees and are not recognized as revenue until the Company has ascertained that the licensee’s sales of products have exceeded the guaranteed minimum. In effect, the Company recognizes the greater of Sales Royalties earned to date or the straight-line amount of minimum guaranteed royalties to date. In the case where a royalty is paid to the Company in advance, the royalty payment is initially recorded as a liability and recognized as revenue as the royalties are deemed to be earned according to the principles outlined above. Inventories Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out basis. The Company records inventory reserves to reduce the carrying value of inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves may be required. Conversely, if market conditions improve, such reserves are reduced. Trade Accounts Receivable The Company extends credit based upon evaluations of a customer’s financial condition and provides for any anticipated credit losses in the Company’s financial statements based upon management’s estimates and ongoing reviews of recorded allowances. If the financial condition of a customer deteriorates, resulting in an impairment of that customer’s ability to make payments, additional reserves may be required. Conversely, reserves are reduced to reflect credit and collection improvements. Cost of Sales Cost of sales includes actual product cost, quality control costs, change in inventory reserves, duty, buying costs, the cost of transportation to the Company’s third party logistics providers’ warehouse from its manufacturers, warehousing costs, and an allocation of those selling, general and administrative expenses that are directly related to these activities. Other Operating Costs and Expenses Other operating costs and expenses include costs associated with returned products received from retailers, warranty costs, warehouse supply expenses, and an allocation of those selling, general and administrative expenses that are directly related to these activities. Because other operating costs and expenses are not included in cost of sales, the reported gross margin may not be comparable to those of other distributors that may include all costs related to the cost of product to their cost of sales and in the calculation of gross margin. Selling, General and Administrative Expenses Selling, general and administrative expenses include all operating costs of the Company that are not directly related to the cost of procuring product or costs not included in other operating costs and expenses. Sales Return Reserves Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for our products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. Foreign Currency The assets and liabilities of foreign subsidiaries have been translated at current exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the year. Related translation adjustments are reported as a separate component of shareholders’ equity. Losses and gains resulting from foreign currency transactions are included in the results of operations. The Company generally does not enter into foreign currency exchange contracts to hedge its exposures related to foreign currency fluctuations and there were no foreign exchange forward contracts held by the Company at March 31, 2018 or March 31, 2017. Advertising Expenses Advertising expenses are charged against earnings as incurred and are included in selling, general and administrative expenses. The Company incurred $17,000 of advertising expenses during fiscal 2018 and nil during fiscal 2017. Sales Allowance and Marketing Support Expenses Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 605, “Revenue Recognition”, subtopic 50 “Customer Payments and Incentives” and Securities and Exchange Commission Staff Accounting Bulletins 101 “Revenue Recognition in Financial Statements,” and 104 “Revenue Recognition, corrected copy” (“SAB’s 101 and 104”). At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 605, “Revenue Recognition”, subtopic 15 “Products”, (i) sales incentives offered to customers that meet the criteria for accrual under ASC topic 605, subtopic 50 and (ii) under SAB’s 101 and 104, an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within SAB 104’s and 101’s four revenue recognition criteria, all of which are required to be met in order to recognize revenue. If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered. The sales and marketing support accrual activity for fiscal 2018 and fiscal 2017 was as follows (in thousands): Balance at March 31, 2016 $ 473 additions 492 usages (395 ) adjustments (276 ) Balance at March 31, 2017 $ 294 additions 611 usages (593 ) adjustments (195 ) Balance at March 31, 2018 $ 117 Interest income, net The Company records interest as incurred. The net interest income for fiscal 2018 and 2017 consists of: 2018 2017 (In thousands) Interest expense $ (4 ) $ (2 ) Interest income 496 263 Interest income, net $ 492 $ 261 Income Taxes Deferred income taxes are recorded to account for the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets have been recorded net of an appropriate valuation allowance, to the extent management believes it is more likely than not that such assets will be realized. (See Note 5 “Income Taxes”). Any tax penalties are recorded as part of selling, general and administrative expenses and any interest to which the Company is subject, is recorded as a part of income tax expense. Penalties and interest incurred during fiscal 2018 were approximately $1,000 and $51,000, respectively, and approximately $14,000 and $86,000 during fiscal 2017. Comprehensive Income Comprehensive income is net income adjusted for foreign currency translation adjustments. Earnings Per Common Share Earnings per common share are based upon the weighted average number of common and common equivalent shares outstanding. Outstanding stock options and warrants are treated as common stock equivalents when dilution results from their assumed exercise. Recent Accounting Pronouncements Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses” (Issued June 2016) In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material impact on its financial statements. Accounting Standards Update 2016-02 “Leases” (Issued February 2016) In February 2016, the FASB issued ASU 2016-02 "Leases" to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 creates a new Accounting Standards Codification Topic 842 "Leases" to replace the previous Topic 840 "Leases." ASU 2016-02 affects both lessees and lessors, although for the latter the provisions are similar to the previous model, but updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASU 2014-09 (see above). ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is assessing the standard to determine if ASU 2016-02 will have a material impact on its financial statements. Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” (Issued May 2014) In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers" in order to ensure that revenue recognition requirements are the same under both US GAAP and International Financial Reporting Standards ("IFRS"). ASU 2014-09 removes inconsistencies and provides a more robust framework for addressing revenue issues. ASU 2014-09 was effective for reporting periods and interim periods beginning on or after December 15, 2016. In August 2015, the FASB issued ASU 2015-14 "Deferral of the Effective Date" to delay the implementation of ASU 2014-09 by one year, in response to feedback from preparers, practitioners and users of financial statements. Accordingly, ASU 2014-09 is now effective for reporting periods and interim periods beginning on or after December 15, 2017. Early adoption is permitted for reporting and interim periods beginning on or after December 15, 2016. The Company has elected to adopt the amendments in ASU 2014-09 on a modified retrospective basis; whereas any cumulative effect of adopting this guidance will be recognized as an adjustment to its opening balance of retained earnings. Prior periods will not be retrospectively adjusted. The Company does not expect these amendments to have a material impact on its financial statements, as it is primarily a seller of tangible personal property whose contracts with customers and the related transaction prices and performance obligations will be minimally affected by the amendments. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 2 — INVENTORIES: Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. As of March 31, 2018 and March 31, 2017, inventories consisted exclusively of purchased finished goods. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 3 — RELATED PARTY TRANSACTIONS: From time to time, Emerson engages in business transactions with its controlling shareholder, Nimble Holdings Company Limited (“Nimble”), formerly known as The Grande Holdings Limited (“Grande”), and one or more of Nimble’s direct and indirect subsidiaries. Set forth below is a summary of such transactions. Controlling Shareholder S&T International Distribution Limited (“S&T”), which is a wholly owned subsidiary of Grande N.A.K.S. Ltd., which is a wholly owned subsidiary of Nimble, collectively have, based on a Schedule 13D/A filed with the Securities and Exchange Commission (“SEC”) on February 28, 2018, the shared power to vote and direct the disposition of 15,243,283 shares, or approximately 66.9%, of the Company’s outstanding common stock as of March 31, 2018. Accordingly, the Company is a “controlled company” as defined in Section 801(a) of the NYSE American Company Guide. On September 26, 2017, Wealth Warrior Global Limited (“Wealth Warrior”) acquired approximately 65.9% of the outstanding share capital of Nimble from Sino Bright Enterprises Co., Ltd., a company related to the Company’s Chairman of the Board. Based upon disclosures filed by Wealth Warrior on a Schedule 13D on October 10, 2017, as subsequently amended, Wealth Warrior, together with its affiliates, collectively held 73.9% of the outstanding share capital of Nimble as of October 10, 2017. Accordingly, a change of control of the Company was deemed to have occurred as Wealth Warrior may be deemed to be a controlling person of Nimble, and as a result may be deemed to share the power to vote or direct the vote of (and to share the power to dispose or direct the disposition of) the shares of the Company held for the account of S&T. Related Party Transactions Return of Pledged Collateral to S&T In April 2016, the Company, upon a request made by S&T, considered and agreed to return to S&T the $500,000 of collateral which S&T had paid to the Company in September 2014 as part of the indemnification agreement between S&T, Grande and the Company pertaining to an Internal Revenue Service challenge of the Company’s March 31, 2010 earnings and profits calculations underlying the taxability of a dividend paid during March 2010 to all of it stockholders, net of the $79,000 in expenses incurred by the Company in defending the IRS challenge. On April 29, 2016, the Company paid $421,000 to S&T to effectuate the release of the collateral net of the aforementioned expenses incurred by the Company. From September 30, 2014 through March 31, 2016, this pledged collateral had been recorded by the Company as restricted cash on its balance sheet. Ancillary Expenses Pertaining to Rented Office Space in Hong Kong During the twelve months ended March 31, 2018 the Company was billed approximately $13,000, and $14,000 for the twelve months ended March 31, 2017, for utility and service charges from the Grande Properties Management Limited (“GPML”) and Lafe Strategic Services Limited (“LSSL”), both related parties to the Company’s Chairman of the Board, in connection with the Company’s rented office space in Hong Kong. The Company owed nil to both GPML and LSSL related to these charges at March 31, 2018 and March 31, 2017. Administrative service fees charged to related parties During the twelve months ended March 31, 2018 the Company billed approximately $23,000, and nil for the twelve months ended March 31, 2017, |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | NOTE 4 — PROPERTY, PLANT, AND EQUIPMENT: As of March 31, 2018 and 2017, property, plant and equipment is comprised of the following: 2018 2017 (In thousands) Computer equipment and software 323 323 Furniture and fixtures 190 193 Leasehold improvements 8 8 521 524 Less accumulated depreciation and amortization (507 ) (506 ) $ 14 $ 18 Depreciation of property, plant, and equipment amounted to approximately $8,000 and $16,000 for the twelve months ended March 31, 2018 and 2017, respectively. During fiscal 2018, the Company disposed of property, plant and equipment with gross book values totaling approximately $3,000. The Company recognized a total net loss of nil on these disposals in fiscal 2018. During fiscal 2017, the Company disposed of property, plant and equipment with gross book values totaling approximately $19,000. The Company recognized a total net loss of nil on these disposals in fiscal 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5 — INCOME TAXES: The Company’s provision for income tax expense for fiscal 2018 and fiscal 2017 was as follows: 2018 2017 (In thousands) Current: Federal $ 3,071 $ (596 ) Foreign, state and other 8 5 Prior year federal and state, with interest 119 154 Deferred: Federal 272 540 Foreign, state and other (9 ) 69 Provision for income tax expense $ 3,461 $ 172 The Company files a consolidated federal return and certain state and local income tax returns. The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the statutory federal rate of 34% to earnings before income taxes for fiscal March 2018 and fiscal 2017 is analyzed below: 2018 2017 (In thousands) Statutory provision $ (1,044 ) $ (40 ) Foreign subsidiary (80 ) (71 ) State taxes 91 (51 ) Permanent differences 1 112 Effect of new rate per Tax Act on deferred tax asset 325 — True up to prior year taxes (106 ) (63 ) Federal taxes on Section 965 3,121 — Valuation allowance 160 288 Utilization of NOL on Section 965 997 — NOL Adjustments (4 ) (3 ) Provision for income tax expense $ 3,461 $ 172 As of March 31, 2018 and March 31, 2017, the significant components of the Company’s deferred tax assets which were classified as non-current, were as follows: 2018 2017 (In thousands) Deferred tax assets: Accounts receivable reserves $ 86 $ 123 Inventory reserves 125 201 Accruals 43 17 Property, plant and equipment and intangible assets 262 438 Net operating loss and credit carry forwards 460 300 Valuation allowance (448 ) (288 ) Total deferred tax assets $ 528 $ 791 The Company has no The Company has $7.0 million of state NOLs as of March 31, 2018 as follows (in millions $): Loss Year (Fiscal) Included in DTA Expiration Year (Fiscal) 2014 $2.4 million 2034 2017 $0.5 million 2036 2018 $3.6 million 2037 The tax benefits related to these state net operating loss carry forwards and future deductible temporary differences are recorded to the extent management believes it is more likely than not that such benefits will be realized. The income of foreign subsidiaries before taxes was $276,000 for the fiscal year ended March 31, 2018 as compared to a loss before taxes of $220,000 for the fiscal year ended March 31, 2017, respectively. Except for the accrual of the one-time transition tax on the deemed repatriation of the Company’s undistributed earnings of its foreign subsidiaries, as detailed below, no provision was made for U.S. or additional foreign taxes on undistributed earnings of foreign subsidiaries. Such earnings have been and will be reinvested but could become subject to additional tax if they were loaned to the Company or a domestic affiliate, or if the Company should sell its stock in the foreign subsidiaries. The Company analyzed the future reasonability of recognizing its deferred tax assets at March 31, 2018. As a result, the Company concluded that a valuation allowance of approximately $448,000 would be recorded against the assets. The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. As of March 31, 2018, the Company’s open tax years for examination for U.S. federal tax are 2014-2017, and for U.S. states’ tax are 2011-2017. Based on the outcome of tax examinations or due to the expiration of statutes of limitations, it is reasonably possible that the unrecognized tax benefits related to uncertain tax positions taken in previously filed returns may be different from the liabilities that have been recorded for these unrecognized tax benefits. As a result, the Company may be subject to additional tax expense. In December 2017, President Trump signed into law H.R.1, commonly known as the Tax Cuts and Jobs Act (“TCJA”), which makes significant changes to the Internal Revenue Code. Subsequent to enactment of the TCJA in December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance regarding accounting for the TCJA’s impact. SAB 118 requires companies to recognize those tax items for which accounting can be completed. For items whose accounting has not been completed, companies must recognize provisional amounts to the extent they are reasonably estimable, with subsequent adjustments over a measurement period as more information is available and calculations are finalized. Enactment of the TCJA resulted in a one-time transition tax on the deemed repatriation of the Company’s undistributed earnings of its foreign subsidiaries. The Company has estimated that it will have a gross transition tax liability of $4.6 million which will be reduced by $1.5 million due to net operating losses of $4.7 million. Thus the Company has recorded tax expense of $3.1 million in the year ended March 31, 2018 as a provisional estimate of its US federal and state transition tax liability. The TCJA lowered the Company’s US statutory federal tax rate from 34% to 21% effective January 1, 2018. The Company recorded a tax expense of $0.3 million in the year ended March 31, 2018 as a provisional estimate of the reduction in its US deferred tax assets resulting from the rate change. While the Company has recognized the provisional tax effect of the transition tax on deemed repatriation and the revaluation of deferred tax assets and liabilities in its financial statements for the year ended March 31, 2018, the ultimate tax impact could differ from these provisional amounts. The Company will continue to analyze the impact of the TCJA, including any additional regulatory guidance issued by the U.S. tax authorities, and expects to complete its accounting in 2018. Prior to March 2018, the Company had asserted under ASC 740-30 that all of the unremitted earnings of its foreign subsidiaries were indefinitely invested. The Company evaluates this assertion each period based on a number of factors, including the operating plans, budgets, and forecasts for both the Company and its foreign subsidiaries; the long-term and short-term financial requirements in the U.S. and in each foreign jurisdiction; and the tax consequences of any decision to repatriate earnings of foreign subsidiaries to the U.S. Because of the transition tax on deemed repatriation required by the TCJA, the Company has been subject to tax in 2017 on the entire amount of its previously undistributed earnings from foreign subsidiaries. Beginning in 2018, the TCJA will generally provide a 100% deduction for U.S. federal tax purposes of dividends received by the Company from its foreign subsidiaries. However, the Company is currently evaluating the potential foreign and U.S. state tax liabilities that would result from future repatriations, if any, and how the TCJA will affect the Company's existing accounting position with regard to the indefinite reinvestment of undistributed foreign earnings. The Company expects to complete this evaluation and determine the impact which the legislation may have on its indefinite reinvestment assertion within the measurement period provided by SAB 118. The TCJA establishes new tax rules designed to tax U.S. companies on global intangible low-taxed income (GILTI) earned by foreign subsidiaries. Because of the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the TCJA and the application of ASC 740. Therefore, the Company has not made any adjustments related to potential GILTI tax in its March 31, 2018 financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 — COMMITMENTS AND CONTINGENCIES: Leases: The Company leases warehouse and office space from non-affiliated companies, with annual commitments as follows (in thousands). Also included are commitments to the Company’s ERP software provider: Fiscal Years Amount 2018 286 2019 162 2020 86 2021 81 Thereafter 68 Total $ 683 Rent expense resulting from leases with non-affiliated companies aggregated $261,000 and $264,000, respectively, for fiscal 2018 and 2017. Letters of Credit: The Company utilizes the services of one of its banks to issue secured letters of credit on behalf of the Company, as needed, on a 100% cash collateralized basis. At March 31, 2018 and March 31, 2017, the Company had no letters of credit outstanding. Capital Expenditure and Other Commitments: As of March 31, 2018, there were no capital expenditure or other commitments other than the normal purchase orders used to secure product. Employee Benefit Plan: The Company currently sponsors a defined contribution 401(k) retirement plan which is subject to the provisions of the Employee Retirement Income Security Act. The Company matches a percentage of the participants’ contributions up to a specified amount. These contributions to the plan for fiscal 2018 and 2017 were $32,000 and $42,000, respectively, and were charged against earnings for the periods presented. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 7 — SHAREHOLDERS’ EQUITY: Common Shares: Authorized common shares total 75,000,000 with a par value $0.01 per share, of which, 22,799,088 were outstanding as of March 31, 2018 and 27,065,852 as of March 31, 2017. Shares held in treasury at March 31, 2018 were 30,166,709 and at March 31, 2017 were 25,899,945. Common Stock Repurchase Program: In December 2016, the Company publicly announced the approval by the Board of Directors of the repurchase of up to $5 million of its common stock, that the repurchases may be effected from time to time at prevailing market prices, through open market or in privately negotiated transactions, which may include, in whole or in part, the establishment of a purchase program pursuant to the safe harbor provided by Rule 10b5-1 under the Securities Exchange Act of 1934, through block purchases or through accelerated or forward or similar stock purchases. In September 2017, the Company’s Board of Directors approved an additional $5 million, bringing the total authorized stock repurchases under the program to $10 million and in June 2018 extended the program to December 31, 2018. Under the program, repurchases will be funded from available working capital and any repurchased shares will be held in the treasury as authorized and issued shares available for general corporate purposes. During the twelve months ended March 31, 2018, 4,266,764 shares for $6,292,620 were repurchased. As of March 31, 2018, the Company had repurchased 4,330,744 shares for $6,359,238 under this program. The remaining balance of the program is $3,640,762 as of March 31, 2018. Series A Preferred Stock: The Company has issued and outstanding 3,677 shares of Series A Preferred Stock, $.01 par value (“Preferred Stock”), with a face value of $3,677,000, which had no determinable market value as of March 31, 2018. The Preferred Stock is non-voting, has no dividend preferences and has not been convertible since March 31, 2002; however, it retains a liquidation preference. |
Short Term Investments
Short Term Investments | 12 Months Ended |
Mar. 31, 2018 | |
Short Term Investments [Abstract] | |
Short Term Investments | NOTE 8 — SHORT TERM INVESTMENTS: At March 31, 2018 and March 31, 2017, the Company held short-term investments in certificates of deposit totaling $16.0 million and $25.1 million, respectively. The Company held $5.0 million in certificates of deposit which were classified as cash equivalents as of March 31, 2018 and $3.0 million as of March 31, 2017. Of the $5.0 million in certificates of deposit classified as cash equivalents, $2.0 million matured on April 26, 2018 and have not been re-invested into certificates of deposit. The remaining $3.0 million matured on May 23, 2018 and were re-invested. |
Net Earnings Per Share
Net Earnings Per Share | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE 9 — NET EARNINGS PER SHARE: The following table sets forth the computation of basic and diluted earnings per share for the years ended March 31, 2018 and March 31, 2017: 2018 2017 (In thousands, except per share data) Numerator: Net (loss) $ (6,851 ) $ (237 ) Denominator: Denominator for basic and diluted earnings per share — weighted average shares 25,282 27,115 Net (loss) per share: Basic and diluted (loss) per share $ (0.27 ) $ (0.01 ) For the year ended March 31, 2018, there were no outstanding instruments which were potentially dilutive. |
License Agreements
License Agreements | 12 Months Ended |
Mar. 31, 2018 | |
License Agreements [Abstract] | |
License Agreements | NOTE 10 — LICENSE AGREEMENTS: The Company is currently party to two license agreements that allow the licensee to use its trademarks for the manufacture and/or the sale of consumer electronics and other products. Each of these license agreements (i) allows the licensee to use the Company’s trademarks for a specific product category, or for sales within specific geographic areas, or for sales to a specific customer base, or any combination of the above, or any other category that might be defined in applicable license agreement and (ii) may be subject to renewal at the initial expiration of applicable agreement and is governed by the laws of the United States. Historically, the Company’s largest license agreement was with Funai which accounted for $2.8 million, or approximately 78% of the Company’s total fiscal 2017 licensing revenue. As previously disclosed, the Funai licensing agreement was terminated effective as of December 31, 2016. As previously disclosed, on December 16, 2015, the Company received written notice from Funai stating its intention to terminate the agreement, with termination to be effective on December 31, 2016. In accordance with the agreement, in June 2016 Funai paid to the Company the full balance of the contracted non-refundable minimum annual royalty through the December 31, 2016 termination date in the amount of $2.8 million. This licensing relationship contributed substantial product volume and market presence through Funai’s manufacture and distribution of products bearing the Emerson ® |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | NOTE 11 — LEGAL PROCEEDINGS: The Company is not currently a party to any legal proceedings other than litigation matters, in most cases involving ordinary and routine claims incidental to its business. Management cannot estimate with certainty the Company’s ultimate legal and financial liability with respect to such pending litigation matters. However, management believes, based on its examination of such matters, that the Company’s ultimate liability will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Mar. 31, 2018 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | NOTE 12 — RISKS AND UNCERTAINTIES: Customer and Licensee Concentration For the twelve months ended March 31, 2018, the Company’s three largest customers, accounted for approximately 84% of the Company’s net revenues, with Walmart accounting for 62%, Amazon.com accounting for 11%, Fred Meyer accounting for 11%. For the 12 months ended March 31, 2017 the Company’s two largest customers, and largest licensee, accounted for approximately 83% of the Company’s net revenue with Walmart accounting for 53%, Fred Meyer accounting for 17% and Funai accounting for 13%. A significant decline in net sales to any of the Company’s key customers would have a material adverse effect on the Company’s business, financial condition and results of operation. The termination of the Funai license agreement has had a material adverse effect on the Company’s business, financial condition and results of operation. Product Concentration For the twelve months ended March 31, 2018, the Company’s gross product sales were comprised of four product types within two categories — housewares products and audio products, and two of these product types, namely microwave ovens and compact refrigerators — both within the housewares category — generated approximately 69% of the Company’s gross product sales, with microwave ovens generating approximately 63% of the total and compact refrigerators generating approximately 6% of the total. Audio products generated approximately 30% of the Company’s gross product sales during fiscal 2018. For the twelve months ended March 31, 2017, the Company’s gross product sales were comprised of the same four product types within the same two categories — housewares products and audio products, and two of these product types, namely microwave ovens and compact refrigerators — both within the housewares category — generated approximately 82% of the Company’s gross product sales, with microwave ovens generating approximately 71% of the total and compact refrigerators generating approximately 11% of the total. Audio products generated approximately 18% of the Company’s gross product sales during fiscal 2017. As a result of this dependence, a significant decline in pricing of, or market acceptance of these product types and categories, either in general or specifically as marketed by the Company, would have a material adverse effect on the Company’s business, financial condition and results of operations. Because the market for these product types and categories is characterized by periodic new product introductions, the Company’s future financial performance will depend, in part, on the successful and timely development and customer acceptance of new and enhanced versions of these product types and other products distributed by the Company. There can be no assurance that the Company will continue to be successful in marketing these products types within these categories or any other new or enhanced products. Concentrations of Credit Risk As a percent of the Company’s total trade accounts receivable, net of specific reserves, Walmart and Amazon.com accounted for 64% and 21% as of March 31, 2018, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, Walmart and Fred Meyer accounted for 91% and nil as of March 31, 2017, respectively. The Company periodically performs credit evaluations of its customers but generally does not require collateral, and the Company provides for any anticipated credit losses in the financial statements based upon management’s estimates and ongoing reviews of recorded allowances. The accounts receivable allowance for doubtful accounts on the Company’s total trade accounts receivable balances was approximately $6,000 at March 31, 2018 and approximately $4,000 at March 31, 2017. Due to the high concentration of the Company’s net trade accounts receivables among just two customers, any significant failure by one of these customers to pay the Company the amounts owing against these receivables would result in a material adverse effect on the Company’s business, financial condition and results of operations. The Company maintains its cash accounts with major U.S. and foreign financial institutions. The Company’s cash and restricted cash balances on deposit in the U.S. as of March 31, 2018 and March 31, 2017 were insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per qualifying bank account in accordance with FDIC rules. The Company’s cash, cash equivalents and restricted cash balances in excess of these FDIC-insured limits were approximately $24.5 million and approximately $27.0 million at March 31, 2018 and March 31, 2017, respectively. Supplier Concentration During the twelve months ended March 31, 2018, the Company procured approximately 93% of its products for resale from its two largest factory suppliers, and of these, the Company procured approximately 59% of these products from one of them and 34% from another. During the twelve months ended March 31, 2017, the Company procured approximately 91% of its products for resale from its two largest factory suppliers, and of these, the Company procured approximately 75% of these products from one of them and 16% from another. No assurance can be given that ample supply of product would be available at current prices and on current credit terms if the Company were required to seek alternative sources of supply without adequate notice by a supplier or a reasonable opportunity to seek alternate production facilities and component parts and any resulting significant shortage of product supply would have a material adverse effect on the Company’s business, financial condition and results of operation. |
Geographic Information
Geographic Information | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | NOTE 13 — GEOGRAPHIC INFORMATION: Net revenues and long-lived assets of the Company for the fiscal years ended March 31, 2018 and March 31, 2017 are summarized below by geographic area (in thousands). Net revenues are attributed to geographic area based on the location of the customer. Year Ended March 31, 2018 U.S. Foreign Consolidated Net revenues $ 15,022 $ — $ 15,022 Long-lived assets $ 25 $ 90 $ 115 Year Ended March 31, 2017 U.S. Foreign Consolidated Net revenues $ 21,251 $ — $ 21,251 Long-lived assets $ 26 $ 93 $ 119 |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation The consolidated financial statements include the accounts of Emerson Radio Corp. (“Emerson”, consolidated — the “Company”), and its subsidiaries. The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses the Emerson trademark for a variety of products domestically and internationally. It is the Company’s policy to prepare its financial statements in conformity with accounting principles generally accepted in the United States (“US GAAP”). The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidation. Certain items in prior year financials were reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, the Company is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents Highly liquid investments with original maturities of three months or less at the time of purchase are considered to be cash equivalents. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying amounts for cash and cash equivalents, trade accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these financial instruments. |
Investments | Investments The Company determines the appropriate classifications of securities at the time of purchase and evaluates the continuing appropriateness of that classification thereafter. Realized gains and losses are determined on a specific identification basis and are reported separately as a component of income. Decreases and increases in the fair value of securities deemed to be other than temporary are included in earnings. |
Long-Lived Assets | Long-Lived Assets The Company’s long-lived assets include property, plant and equipment. At March 31, 2018, the Company had approximately $14,000 of property, plant and equipment, net of accumulated depreciation. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC Topics 350 “Intangibles” and 360 “Property, Plant and Equipment”. The recoverability of assets held and used is measured by a comparison of the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Future events could cause the Company to conclude that impairment indicators exist and that long-lived assets may be impaired. If impairment is deemed to exist, the asset will be written down to fair value. Any such impairment loss could have a material adverse impact on the Company’s financial condition and results of operations. As of March 31, 2018, management expects the carrying value of its long-lived assets to be fully recoverable. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets being depreciated. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and betterments are capitalized and depreciated over the remaining estimated useful lives of the related assets. At time of disposal, the cost and related accumulated depreciation are removed from the Company’s records and the difference between net carrying value of the asset and the sale proceeds is recorded as a gain or loss. Depreciation of property, plant and equipment is provided by the straight-line method as follows: • Computer, Equipment and Software Three years to seven years • Furniture & Fixtures Seven years • Leasehold Improvements Straight-line basis over the shorter of the useful life of the improvement or the term of the lease |
Revenue Recognition | Revenue Recognition Distribution of products Revenues from product distribution are recognized at the time title passes to the customer. Under the Direct Import Program, title passes in the country of origin. Under the Domestic Program, title passes primarily at the time of shipment. Estimates for future expected returns are based upon historical return rates and netted against revenues. Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for the Company’s products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 605, “Revenue Recognition”, subtopic 50 “Customer Payments and Incentives” and Securities and Exchange Commission Staff Accounting Bulletins 101 “Revenue Recognition in Financial Statements,” and 104 “Revenue Recognition, corrected copy” (“SAB’s 101 and 104”). At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 605, “Revenue Recognition”, subtopic 15 “Products”, (i) sales incentives offered to customers that meet the criteria for accrual under ASC topic 605, subtopic 50 and (ii) under SAB’s 101 and 104, an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within SAB 104’s and 101’s four revenue recognition criteria, all of which are required to be met in order to recognize revenue. If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered. Licensing In addition to the distribution of products, the Company grants licenses for the right to use the Company’s trademarks for a stated term for the manufacture and/or sale of consumer electronics and other products under agreements which require payment of either i) a non-refundable minimum guaranteed royalty or, ii) the greater of the actual royalties due (based on a contractual calculation, normally comprised of actual product sales by the licensee multiplied by a stated royalty rate, or “Sales Royalties”) or a minimum guaranteed royalty amount. In the case of (i), such amounts are recognized as revenue on a straight-line basis over the term of the license agreement. In the case of (ii), Sales Royalties in excess of guaranteed minimums are accounted for as variable fees and are not recognized as revenue until the Company has ascertained that the licensee’s sales of products have exceeded the guaranteed minimum. In effect, the Company recognizes the greater of Sales Royalties earned to date or the straight-line amount of minimum guaranteed royalties to date. In the case where a royalty is paid to the Company in advance, the royalty payment is initially recorded as a liability and recognized as revenue as the royalties are deemed to be earned according to the principles outlined above. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out basis. The Company records inventory reserves to reduce the carrying value of inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves may be required. Conversely, if market conditions improve, such reserves are reduced. |
Trade Accounts Receivable | Trade Accounts Receivable The Company extends credit based upon evaluations of a customer’s financial condition and provides for any anticipated credit losses in the Company’s financial statements based upon management’s estimates and ongoing reviews of recorded allowances. If the financial condition of a customer deteriorates, resulting in an impairment of that customer’s ability to make payments, additional reserves may be required. Conversely, reserves are reduced to reflect credit and collection improvements. |
Cost of Sales | Cost of Sales Cost of sales includes actual product cost, quality control costs, change in inventory reserves, duty, buying costs, the cost of transportation to the Company’s third party logistics providers’ warehouse from its manufacturers, warehousing costs, and an allocation of those selling, general and administrative expenses that are directly related to these activities. |
Other Operating Costs and Expenses | Other Operating Costs and Expenses Other operating costs and expenses include costs associated with returned products received from retailers, warranty costs, warehouse supply expenses, and an allocation of those selling, general and administrative expenses that are directly related to these activities. Because other operating costs and expenses are not included in cost of sales, the reported gross margin may not be comparable to those of other distributors that may include all costs related to the cost of product to their cost of sales and in the calculation of gross margin. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include all operating costs of the Company that are not directly related to the cost of procuring product or costs not included in other operating costs and expenses. |
Sales Return Reserves | Sales Return Reserves Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for our products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. |
Foreign Currency | Foreign Currency The assets and liabilities of foreign subsidiaries have been translated at current exchange rates, and related revenues and expenses have been translated at average rates of exchange in effect during the year. Related translation adjustments are reported as a separate component of shareholders’ equity. Losses and gains resulting from foreign currency transactions are included in the results of operations. The Company generally does not enter into foreign currency exchange contracts to hedge its exposures related to foreign currency fluctuations and there were no foreign exchange forward contracts held by the Company at March 31, 2018 or March 31, 2017. |
Advertising Expenses | Advertising Expenses Advertising expenses are charged against earnings as incurred and are included in selling, general and administrative expenses. The Company incurred $17,000 of advertising expenses during fiscal 2018 and nil during fiscal 2017. |
Sales Allowance and Marketing Support Expenses | Sales Allowance and Marketing Support Expenses Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 605, “Revenue Recognition”, subtopic 50 “Customer Payments and Incentives” and Securities and Exchange Commission Staff Accounting Bulletins 101 “Revenue Recognition in Financial Statements,” and 104 “Revenue Recognition, corrected copy” (“SAB’s 101 and 104”). At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 605, “Revenue Recognition”, subtopic 15 “Products”, (i) sales incentives offered to customers that meet the criteria for accrual under ASC topic 605, subtopic 50 and (ii) under SAB’s 101 and 104, an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within SAB 104’s and 101’s four revenue recognition criteria, all of which are required to be met in order to recognize revenue. If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered. The sales and marketing support accrual activity for fiscal 2018 and fiscal 2017 was as follows (in thousands): Balance at March 31, 2016 $ 473 additions 492 usages (395 ) adjustments (276 ) Balance at March 31, 2017 $ 294 additions 611 usages (593 ) adjustments (195 ) Balance at March 31, 2018 $ 117 |
Interest income, net | Interest income, net The Company records interest as incurred. The net interest income for fiscal 2018 and 2017 consists of: 2018 2017 (In thousands) Interest expense $ (4 ) $ (2 ) Interest income 496 263 Interest income, net $ 492 $ 261 |
Income Taxes | Income Taxes Deferred income taxes are recorded to account for the tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets have been recorded net of an appropriate valuation allowance, to the extent management believes it is more likely than not that such assets will be realized. (See Note 5 “Income Taxes”). Any tax penalties are recorded as part of selling, general and administrative expenses and any interest to which the Company is subject, is recorded as a part of income tax expense. Penalties and interest incurred during fiscal 2018 were approximately $1,000 and $51,000, respectively, and approximately $14,000 and $86,000 during fiscal 2017. |
Comprehensive Income | Comprehensive Income Comprehensive income is net income adjusted for foreign currency translation adjustments. |
Earnings Per Common Share | Earnings Per Common Share Earnings per common share are based upon the weighted average number of common and common equivalent shares outstanding. Outstanding stock options and warrants are treated as common stock equivalents when dilution results from their assumed exercise. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses” (Issued June 2016) In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material impact on its financial statements. Accounting Standards Update 2016-02 “Leases” (Issued February 2016) In February 2016, the FASB issued ASU 2016-02 "Leases" to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 creates a new Accounting Standards Codification Topic 842 "Leases" to replace the previous Topic 840 "Leases." ASU 2016-02 affects both lessees and lessors, although for the latter the provisions are similar to the previous model, but updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASU 2014-09 (see above). ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is assessing the standard to determine if ASU 2016-02 will have a material impact on its financial statements. Accounting Standards Update 2014-09 “Revenue from Contracts with Customers” (Issued May 2014) In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers" in order to ensure that revenue recognition requirements are the same under both US GAAP and International Financial Reporting Standards ("IFRS"). ASU 2014-09 removes inconsistencies and provides a more robust framework for addressing revenue issues. ASU 2014-09 was effective for reporting periods and interim periods beginning on or after December 15, 2016. In August 2015, the FASB issued ASU 2015-14 "Deferral of the Effective Date" to delay the implementation of ASU 2014-09 by one year, in response to feedback from preparers, practitioners and users of financial statements. Accordingly, ASU 2014-09 is now effective for reporting periods and interim periods beginning on or after December 15, 2017. Early adoption is permitted for reporting and interim periods beginning on or after December 15, 2016. The Company has elected to adopt the amendments in ASU 2014-09 on a modified retrospective basis; whereas any cumulative effect of adopting this guidance will be recognized as an adjustment to its opening balance of retained earnings. Prior periods will not be retrospectively adjusted. The Company does not expect these amendments to have a material impact on its financial statements, as it is primarily a seller of tangible personal property whose contracts with customers and the related transaction prices and performance obligations will be minimally affected by the amendments. |
Significant Accounting Polici21
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Life of Property Plant and Equipment | Depreciation of property, plant and equipment is provided by the straight-line method as follows: • Computer, Equipment and Software Three years to seven years • Furniture & Fixtures Seven years • Leasehold Improvements Straight-line basis over the shorter of the useful life of the improvement or the term of the lease |
Sales and Marketing Support Accrual Activity | The sales and marketing support accrual activity for fiscal 2018 and fiscal 2017 was as follows (in thousands): Balance at March 31, 2016 $ 473 additions 492 usages (395 ) adjustments (276 ) Balance at March 31, 2017 $ 294 additions 611 usages (593 ) adjustments (195 ) Balance at March 31, 2018 $ 117 |
Interest Income, Net | The Company records interest as incurred. The net interest income for fiscal 2018 and 2017 consists of: 2018 2017 (In thousands) Interest expense $ (4 ) $ (2 ) Interest income 496 263 Interest income, net $ 492 $ 261 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Component of Property Plant and Equipment | As of March 31, 2018 and 2017, property, plant and equipment is comprised of the following: 2018 2017 (In thousands) Computer equipment and software 323 323 Furniture and fixtures 190 193 Leasehold improvements 8 8 521 524 Less accumulated depreciation and amortization (507 ) (506 ) $ 14 $ 18 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax Expense | The Company’s provision for income tax expense for fiscal 2018 and fiscal 2017 was as follows: 2018 2017 (In thousands) Current: Federal $ 3,071 $ (596 ) Foreign, state and other 8 5 Prior year federal and state, with interest 119 154 Deferred: Federal 272 540 Foreign, state and other (9 ) 69 Provision for income tax expense $ 3,461 $ 172 |
Effective Rate Reflected in Provision for Income Taxes and Amounts Determined by Applying Statutory Federal Rate | The difference between the effective rate reflected in the provision for income taxes and the amounts determined by applying the statutory federal rate of 34% to earnings before income taxes for fiscal March 2018 and fiscal 2017 is analyzed below 2018 2017 (In thousands) Statutory provision $ (1,044 ) $ (40 ) Foreign subsidiary (80 ) (71 ) State taxes 91 (51 ) Permanent differences 1 112 Effect of new rate per Tax Act on deferred tax asset 325 — True up to prior year taxes (106 ) (63 ) Federal taxes on Section 965 3,121 — Valuation allowance 160 288 Utilization of NOL on Section 965 997 — NOL Adjustments (4 ) (3 ) Provision for income tax expense $ 3,461 $ 172 |
Components of Deferred Tax Assets Classified as Non-Current | As of March 31, 2018 and March 31, 2017, the significant components of the Company’s deferred tax assets which were classified as non-current, were as follows: 2018 2017 (In thousands) Deferred tax assets: Accounts receivable reserves $ 86 $ 123 Inventory reserves 125 201 Accruals 43 17 Property, plant and equipment and intangible assets 262 438 Net operating loss and credit carry forwards 460 300 Valuation allowance (448 ) (288 ) Total deferred tax assets $ 528 $ 791 |
State Net Operating Loss | The Company has $7.0 million of state NOLs as of March 31, 2018 as follows (in millions $) Loss Year (Fiscal) Included in DTA Expiration Year (Fiscal) 2014 $2.4 million 2034 2017 $0.5 million 2036 2018 $3.6 million 2037 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Company Leases Warehouse and Office Space from Non-Affiliated Companies with Annual Commitments Including Commitments to ERP Software Provider | The Company leases warehouse and office space from non-affiliated companies, with annual commitments as follows (in thousands). Also included are commitments to the Company’s ERP software provider: Fiscal Years Amount 2018 286 2019 162 2020 86 2021 81 Thereafter 68 Total $ 683 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended March 31, 2018 and March 31, 2017: 2018 2017 (In thousands, except per share data) Numerator: Net (loss) $ (6,851 ) $ (237 ) Denominator: Denominator for basic and diluted earnings per share — weighted average shares 25,282 27,115 Net (loss) per share: Basic and diluted (loss) per share $ (0.27 ) $ (0.01 ) |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Net Revenues and Long-Lived Assets of Company | Net revenues and long-lived assets of the Company for the fiscal years ended March 31, 2018 and March 31, 2017 are summarized below by geographic area (in thousands). Net revenues are attributed to geographic area based on the location of the customer. Year Ended March 31, 2018 U.S. Foreign Consolidated Net revenues $ 15,022 $ — $ 15,022 Long-lived assets $ 25 $ 90 $ 115 Year Ended March 31, 2017 U.S. Foreign Consolidated Net revenues $ 21,251 $ — $ 21,251 Long-lived assets $ 26 $ 93 $ 119 |
Significant Accounting Polici27
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Mar. 31, 2018USD ($)Derivative | Mar. 31, 2017USD ($)Derivative | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Property, plant, and equipment, net | $ 14,000 | $ 18,000 |
Foreign exchange forward contracts held | Derivative | 0 | 0 |
Advertising expenses | $ 17,000 | $ 0 |
Income taxes penalties | 1,000 | 14,000 |
Income taxes interest | $ 51,000 | $ 86,000 |
Estimated Useful Life of Proper
Estimated Useful Life of Property Plant and Equipment (Detail) | 12 Months Ended |
Mar. 31, 2018 | |
Computer, Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 3 years |
Computer, Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 7 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | 7 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful life | Straight-line basis over the shorter of the useful life of the improvement or the term of the lease |
Sales and Marketing Support Acc
Sales and Marketing Support Accrual Activity (Detail) - Allowance for Promotions - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning Balance | $ 294 | $ 473 |
additions | 611 | 492 |
usages | (593) | (395) |
adjustments | (195) | (276) |
Ending Balance | $ 117 | $ 294 |
Interest Income, Net (Detail)
Interest Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income And Expenses [Abstract] | ||
Interest expense | $ (4) | $ (2) |
Interest income | 496 | 263 |
Interest income, net | $ 492 | $ 261 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Oct. 10, 2017 | Sep. 26, 2017 | Apr. 29, 2016 | |
Nimble Holding Company Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Nimble's Ownership Interest in Emerson number of shares | 15,243,283 | |||||
Nimble's Ownership Interest Percentage | 66.90% | |||||
Nimble Holding Company Limited | Wealth Warrior Global Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of outstanding shares acquired | 65.90% | |||||
Nimble Holding Company Limited | Wealth Warrior Global Limited and its Affiliates | ||||||
Related Party Transaction [Line Items] | ||||||
Related party ownership percentage | 73.90% | |||||
S&T | ||||||
Related Party Transaction [Line Items] | ||||||
Repayment of pledged collateral amount | $ 500,000 | |||||
Release of collateral, net of expenses incurred | $ 421,000 | |||||
S&T | IRS | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred in defending IRS challenge | $ 79,000 | |||||
GPML and LSSL | ||||||
Related Party Transaction [Line Items] | ||||||
Utility and service charges | $ 13,000 | $ 14,000 | ||||
GPML | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties for utility and service charges | 0 | 0 | ||||
LSSL | ||||||
Related Party Transaction [Line Items] | ||||||
Due to related parties for utility and service charges | 0 | 0 | ||||
PAL, SARC and TICL | ||||||
Related Party Transaction [Line Items] | ||||||
Administrative service fees charged to related parties | 23,000 | 0 | ||||
PAL | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties for administrative service fees | 0 | 0 | ||||
SARC | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties for administrative service fees | 0 | 0 | ||||
TICL | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related parties for administrative service fees | $ 0 | $ 0 |
Component of Property Plant and
Component of Property Plant and Equipment (Detail) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Computer equipment and software | $ 323,000 | $ 323,000 |
Furniture and fixtures | 190,000 | 193,000 |
Leasehold improvements | 8,000 | 8,000 |
Property, Plant and Equipment, Gross, Total | 521,000 | 524,000 |
Less accumulated depreciation and amortization | (507,000) | (506,000) |
Property, plant and equipment, net | $ 14,000 | $ 18,000 |
Property Plant and Equipment -
Property Plant and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 8,000 | $ 16,000 |
Property, plant and equipment disposed, gross book value | 3,000 | 19,000 |
Loss from disposal of property, plant and equipment | $ 0 | $ 0 |
Provision for Income Tax Expens
Provision for Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Current: | ||
Federal | $ 3,071 | $ (596) |
Foreign, state and other | 8 | 5 |
Prior year federal and state, with interest | 119 | 154 |
Deferred: | ||
Federal | 272 | 540 |
Foreign, state and other | (9) | 69 |
Provision for income tax expense | $ 3,461 | $ 172 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule Of Income Taxes [Line Items] | ||||
Corporate tax rate | 34.00% | 34.00% | ||
Net operating loss carry forwards, amount | $ 4,700,000 | $ 4,700,000 | ||
Income (loss) of foreign subsidiaries before taxes | 276,000 | $ (220,000) | ||
Deferred tax valuation allowance against assets | 448,000 | 448,000 | $ 288,000 | |
Transition tax liability, gross | 4,600,000 | 4,600,000 | ||
Decrease in transition tax liability | (1,500,000) | |||
Income tax expense due to tax transition tax liability | 3,100,000 | |||
Income tax expense resulting from rate change | $ 300,000 | |||
Deduction for U.S. federal tax | 100.00% | |||
Senario Plan | ||||
Schedule Of Income Taxes [Line Items] | ||||
Corporate tax rate | 21.00% | |||
U.S. federal | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carry forwards, amount | $ 0 | $ 0 | ||
U.S. federal | Earliest Tax Year | ||||
Schedule Of Income Taxes [Line Items] | ||||
Open tax years | 2,014 | |||
U.S. federal | Latest Tax Year | ||||
Schedule Of Income Taxes [Line Items] | ||||
Open tax years | 2,017 | |||
States | ||||
Schedule Of Income Taxes [Line Items] | ||||
Net operating loss carry forwards, amount | $ 7,000,000 | $ 7,000,000 | ||
States | Earliest Tax Year | ||||
Schedule Of Income Taxes [Line Items] | ||||
Open tax years | 2,011 | |||
States | Latest Tax Year | ||||
Schedule Of Income Taxes [Line Items] | ||||
Open tax years | 2,017 |
Effective Rate Reflected in Pro
Effective Rate Reflected in Provision for Income Taxes and Amounts Determined by Applying Statutory Federal Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory provision | $ (1,044) | $ (40) |
Foreign subsidiary | (80) | (71) |
State taxes | 91 | (51) |
Permanent differences | 1 | 112 |
Effect of new rate per Tax Act on deferred tax asset | 325 | |
True up to prior year taxes | (106) | (63) |
Federal taxes on Section 965 | 3,121 | |
Valuation allowance | 160 | 288 |
Utilization of NOL on Section 965 | 997 | |
NOL Adjustments | (4) | (3) |
Provision for income tax expense | $ 3,461 | $ 172 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets Classified as Non-Current (Detail) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Deferred tax assets: | ||
Accounts receivable reserves | $ 86,000 | $ 123,000 |
Inventory reserves | 125,000 | 201,000 |
Accruals | 43,000 | 17,000 |
Property, plant and equipment and intangible assets | 262,000 | 438,000 |
Net operating loss and credit carry forwards | 460,000 | 300,000 |
Valuation allowance | (448,000) | (288,000) |
Total deferred tax assets | $ 528,000 | $ 791,000 |
State Net Operating Loss (Detai
State Net Operating Loss (Detail) $ in Millions | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry forwards, amount | $ 4.7 |
States | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carry forwards, amount | $ 7 |
States | Fiscal Year 2014 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2,014 |
Net operating loss carry forwards, amount | $ 2.4 |
Net operating loss carryforwards, expiration year | 2,034 |
States | Fiscal Year 2017 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2,017 |
Net operating loss carry forwards, amount | $ 0.5 |
Net operating loss carryforwards, expiration year | 2,036 |
States | Fiscal Year 2018 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforward, origination year | 2,018 |
Net operating loss carry forwards, amount | $ 3.6 |
Net operating loss carryforwards, expiration year | 2,037 |
Company Leases Warehouse and Of
Company Leases Warehouse and Office Space from Non-Affiliated Companies with Annual Commitments Including Commitments to ERP Software Provider (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Leases Operating [Abstract] | |
2,018 | $ 286 |
2,019 | 162 |
2,020 | 86 |
2,021 | 81 |
Thereafter | 68 |
Total | $ 683 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Rent Expense | $ 261,000 | $ 264,000 |
Letters of credit issued percentage of cash collateralized basis | 100.00% | |
Outstanding letters of credit | $ 0 | 0 |
Capital expenditure | 0 | |
Other commitment | 0 | |
Defined contribution 401(k) retirement plan, employer contribution | $ 32,000 | $ 42,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Equity Class Of Treasury Stock [Line Items] | ||||
Common shares, shares authorized | 75,000,000 | 75,000,000 | ||
Common shares, par value | $ 0.01 | $ 0.01 | ||
Common shares, shares outstanding | 22,799,088 | 27,065,852 | ||
Treasury stock, shares | 30,166,709 | 25,899,945 | ||
Cost of shares repurchased under common stock repurchase program | $ 6,293,000 | $ 66,000 | ||
Cost of shares repurchased under common stock repurchase program | $ 30,583,000 | $ 24,290,000 | ||
Preferred shares, shares issued | 3,677 | 3,677 | ||
Preferred shares, shares outstanding | 3,677 | 3,677 | ||
Preferred shares, par value | $ 0.01 | |||
Preferred shares, liquidation preference | $ 3,677,000 | $ 3,677,000 | ||
Common Stock | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 10,000,000 | |||
Stock repurchase program, additional authorized repurchase amount | $ 5,000,000 | |||
Stock repurchase program, expiration date | Dec. 31, 2018 | |||
Number of common shares repurchased | 4,266,764 | |||
Cost of shares repurchased under common stock repurchase program | $ 6,292,620 | |||
Stock repurchase program, remaining balance | $ 3,640,762 | |||
Common Stock | Common Stock Repurchase Program | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Treasury stock, shares | 4,330,744 | |||
Cost of shares repurchased under common stock repurchase program | $ 6,359,238 | |||
Common Stock | Maximum | ||||
Equity Class Of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 5,000,000 |
Short Term Investments - Additi
Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018 | May 23, 2018 | Apr. 26, 2018 | Mar. 31, 2017 | |
Investment [Line Items] | ||||
Short term investments in certificates of deposit | $ 16,000 | $ 25,078 | ||
Cash Equivalents | ||||
Investment [Line Items] | ||||
Certificates of deposit | $ 5,000 | $ 3,000 | ||
Certificates of deposit maturity date | Apr. 26, 2018 | |||
Remaining certificates of deposit maturity date | May 23, 2018 | |||
Cash Equivalents | Subsequent Event [Member] | ||||
Investment [Line Items] | ||||
Certificates of deposit | $ 3,000 | $ 2,000 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net loss | $ (6,851) | $ (237) |
Denominator: | ||
Denominator for basic and diluted earnings per share — weighted average shares | 25,282 | 27,115 |
Net (loss) per share: | ||
Basic and diluted (loss) per share | $ (0.27) | $ (0.01) |
Net Earnings Per Share - Additi
Net Earnings Per Share - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2018shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of earnings per share | 0 |
License Agreements - Additional
License Agreements - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($) | Mar. 31, 2018USD ($)Agreement | Mar. 31, 2017USD ($) | |
License Agreements [Line Items] | |||
Number of license agreements | Agreement | 2 | ||
Licensing revenue | $ 659,000 | $ 3,616,000 | |
Funai | |||
License Agreements [Line Items] | |||
License revenue percentage | 78.00% | ||
Licensing revenue | $ 2,800,000 | ||
Termination of license agreement, effective date | Dec. 31, 2016 | ||
Non-refundable minimum annual royalty payments received | $ 2,800,000 |
Risks and Uncertainties - Addit
Risks and Uncertainties - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Unusual Risk Or Uncertainty [Line Items] | ||
Allowance for doubtful accounts | $ 6,000 | $ 4,000 |
Cash, cash equivalents and restricted cash balances in excess of FDIC-insured limits | 24,500,000 | 27,000,000 |
Maximum | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Cash and restricted cash deposit | $ 250,000 | $ 250,000 |
Customer Concentration Risk | Net Revenues | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 84.00% | 83.00% |
Customer Concentration Risk | Net Revenues | Amazon.com | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 11.00% | |
Customer Concentration Risk | Net Revenues | Walmart | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 62.00% | 53.00% |
Customer Concentration Risk | Net Revenues | Fred Meyer | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 11.00% | 17.00% |
Customer Concentration Risk | Net Revenues | Funai | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Product Concentration Risk | Net Revenues | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 69.00% | 82.00% |
Product Concentration Risk | Net Revenues | Microwave Ovens | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 63.00% | 71.00% |
Product Concentration Risk | Net Revenues | Compact Refrigerators | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 6.00% | 11.00% |
Product Concentration Risk | Net Revenues | Audio Products | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 30.00% | 18.00% |
Credit Concentration Risk | Trade Accounts Receivable, Net of Specific Reserves | Amazon.com | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 21.00% | |
Credit Concentration Risk | Trade Accounts Receivable, Net of Specific Reserves | Walmart | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 64.00% | 91.00% |
Credit Concentration Risk | Trade Accounts Receivable, Net of Specific Reserves | Fred Meyer | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 0.00% | |
Supplier Concentration Risk [Member] | Products for Resale | Two Largest Factory Suppliers | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 93.00% | 91.00% |
Supplier Concentration Risk [Member] | Products for Resale | Supplier One [Member] | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 59.00% | 75.00% |
Supplier Concentration Risk [Member] | Products for Resale | Supplier Two [Member] | ||
Unusual Risk Or Uncertainty [Line Items] | ||
Concentration risk, percentage | 34.00% | 16.00% |
Net Revenues and Long-Lived Ass
Net Revenues and Long-Lived Assets of Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 15,022 | $ 21,251 |
Long-lived assets | 115 | 119 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 15,022 | 21,251 |
Long-lived assets | 25 | 26 |
Foreign | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 90 | $ 93 |