Slide 1: Investors Presentation June 2022
a @ | INVESTORS 4 PRESENTATION June 2022
Slide 2: Forward Looking Statements
S FORWARD LOOKING STATEMENTS This presentation of The Singing Machine, Inc. (the “Company”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities law. Words such as “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”
Slide 3: Company Snapshot
foo] 4 COMPANY SNAPSHOT YEAR FOUNDED REVENUE NUMBER OF PRODUCTS PUBLIC COMPANY 1 982 Worldwide leader in consumer karaoke products. Established brand in market since 1982 $50 M+ North American market leader with proven, long-standing retail partnerships Distributes 25+ SKUs at prices from $10 to $30
Slide 4: Investment Highlights
foo) 4 INVESTMENT HIGHLIGHTS WALMART ELECTRONICS DISTRIBUTION RECURRING REVENUE #1 BRAND IN HOME KARAOKE STRONG BALANCE SHEET Key topline growth driver starting May 2022. New distribution to Walmart Consumer Electronics Dept. to set ~3,200 stores with 4-foot karaoke section. EBITDA accelerator. New
Slide 5: Deep Retail Partnership
S] DEEP RETAIL PARTNERSHIP ¢ Available in over 25,000 stores nationwide. * Over 75,000 linear feet of shelf space representation in North America (our moat around the business) - Exclusive, year-round karaoke supplier * Products available in over 10 countries world-wide. World Class Retail Partnersh
Slide 6: Distribution Territories
DISTRIBUTION TERRITORIES NORTH AMERICA SOUTH AMERICA 7 * EUROPE —g eee COUNTRIES O stRoNe DisTRIBUTION EMERGING TERRITORY WITH LIMITED DISTRIBUTION PROMISING MARKET FOR EXPANSION —_— CHINA 4 JAPAN ~ KOREA AUSTRALIA
Slide 7: Product Overview
PRODUCT OVERVIEW Over 1 Million karaoke machines sold in 2021! Streaming § NEVV + Flagship product line with integrated access to content subscriptions. Casting NEW + SingCast technology to facilitate higher engagement with karaoke content in our app. Traditional + Dominant retail presence. * High f
Slide 8: Singing Machine Karaoke App and Strategic Partnership
4 Singing Machine K: ke Al Leading media & technology inging Machine Karaoke App STRATEGIC OY stincray company & content partner. Over 100,000 new and popular fully Large shareholder with Board I dd ki ke hits ! anced aoe PARTNERSHIP secbraesecctasicn RECURRING App & integrated music Monthly service
Slide 9: Streaming & Casting Series
© STREAMING & © CASTING SERIES | “sz ee. 4 yf ON : em > | BREAK OUT 2 — q* —— foo} GES >» Cy streaming singcast technology
Slide 10: Growth Catalysts
foo) 4 GROWTH EXPANSION INTO WALMART ELECTRONICS CATALYSTS ¢ New distribution into ~3,200 stores nationwide this May 2022 with 4-foot karaoke section. + Walmart CE selected 8 new karaoke models. « Assortment has higher price point karaoke products with more technology to support content subscription
Slide 11: Management and Board
GARY AW@INGEIN CEO & Director 14 years experience karaoke, toy and consumer electronics. Consistent track record of growth and profits. Licensed Attorney in Florida and Georgia. JD/MBA, Case Western Reserve University. BA Economics, University of Rochester. BERNARMELO CHIEF REVENUE OFFICER 18 years
Slide 12: Financials
4 FINANCIALS Proven track-record of success: EBITDA profitable in 9 out of last 10 years. Growth: Expanded sales 3x over last 10 years, after accounting for loss of Toys R’ Us. $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 ($10.00) NET SALES MARGIN EBITDA FY19 $46.50M 25.1% $1.3M FY20 $38.50M 21.0% -$3.5
Slide 13: Capitalization Table
foo) 4 CAPITALIZATION TABLE 2,782,321 1,155,556 233,334 53,667 Approximate Market Cap: $8-9M Fully diluted Market Cap: $11-12M *at closing price 6/1/2022
Slide 14: Key Takeaways
ee KEY 4 TAKEAWAYS Extensive pipelines Digital content support For 40 years, Singing Combined 45 years of already built to all major and technology Machine has dominated _ leadership and retailers and supported by lead the home karaoke experience in retail and e-commerce platforms. strategic investo
Slide 15: The Singing Machine Company
The Singing Machine Company © 2 singing machine 6301 NW 5th Way Suite 2900 Fort Lauderdale, FL 33309 United States