The Singing Machine Company, Inc., doing business as SMC Global, (Singing Machine) is engaged in the development, production, marketing and distribution of consumer karaoke audio equipment, accessories, music, musical instruments and licensed youth electronic products. The Company contracts for the manufacturing of all its electronic equipment products with factories located in China. The Company also produces and markets karaoke music, including compact discs plus graphics (CD+G's), which contain music and lyrics of songs for use with karaoke recording equipment. The Company obtains the song licenses from publishers, such as EMI, Universal, Sony and Warner, and contracts for the reproduction of music recordings with independent studios. The Company has three different product lines, which consists in total of over 50 different models. The product lines consist of Karaoke Machines, Music and Musical Instruments.