Singing Machine Secures $12.5 Million Revolving Credit Facility

The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the North American leader in consumer karaoke products – today announced it has executed a tri-party Intercreditor Agreement for a Revolving Line of Credit on eligible accounts receivable and inventory (the “Facility”).

On June 16, 2020 the Company entered into a two-year Loan and Security Agreement for a $10,000,000 financing facility with Crestmark, a division of Meta Bank, NA (“Crestmark”) on eligible accounts receivable. Further, the Company also executed a two-year Loan and Security Agreement with Iron Horse Credit (“Iron Horse”) for up to $2,500,000 in inventory financing.

Highlights:

The combined facility provides the Company with up to $12,500,000 in financing during the Company’s peak season.

The Facility allows for the Company to borrow against eligible accounts receivable and inventory to provide working capital to operate the business.

Interest on the loan with Crestmark is Prime Rate plus 5.5% (with a minimum of 8.75% p.a.) and interest on the loan with Iron Horse is 15.5% p.a.

Management Commentary:

Gary Atkinson, Singing Machine CEO, commented, “We're delighted to close on this Facility with Crestmark and Iron Horse which will provide us with liquidity to meet our goals for this coming year and beyond.”

About The Singing Machine

Based in the U.S., Singing Machine® is the North American leader in consumer karaoke products. The first to provide karaoke systems for home entertainment in the United States, the Company sells its products worldwide through major mass merchandisers and on-line retailers. We offer the industry's widest line of at-home karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing practice, music listening, entertainment and social sharing. The Singing Machine provides consumers the best warranties in the industry and access to over 13,000 songs for streaming and download. Singing Machine products are sold through most major retailers in North America and also internationally. See www.singingmachine.com for more details.

Investor Relations Contact:

Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors