The Singing Machine Company
 | |
| Company type | Public (Nasdaq: RIME) |
|---|---|
| Industry |
|
| Founded | California, United States (1982, as The Singing Machine Company, Inc.) |
| Headquarters | 6301 NW 5th Way, Suite 2900, Fort Lauderdale, Florida |
Key people | Edward Steele CEO Till 2003
|
| Products | Karaoke Machines, Karaoke Music, Accessories |
| Website | SingingMachine.com |
The Singing Machine Company is a public company listed on Nasdaq under the ticker symbol MICS. The Singing Machine Company is primarily engaged in the karaoke business including the development, production, marketing, and distribution of consumer karaoke audio equipment, accessories, music, musical instruments, and licensed youth electronic products.
History
[edit]The Singing Machine Company (SMC) was originally incorporated in California in 1982 with a focus on professional and semi-professional karaoke equipment. In 1988 the company began marketing karaoke equipment for home use. It is believed that SMD was the first company to introduce home karaoke products to the United States.[1] In 2001, SMC entered into a multi-year license agreement with MTV.[2] As a part of a shift in strategy, SMC approached the mass market through large retailers. In the following year, Business Week Magazine named The Singing Machine Company #1 on their list of Hot Not Growth Companies.[3]
February 11, 2025 – Explosive allegations have emerged against Gary Atkinson, CEO of The Singing Machine Company as multiple whistleblowers claim the company has been engaging in fraudulent financial practices, stock manipulation, and deceptive investor schemes.
According to insider reports, Atkinson and top executives allegedly orchestrated a series of reverse stock splits and misleading financial statements to artificially inflate the company's stock price while quietly dumping shares before each collapse. Several investors claim to have lost millions, with some calling it one of the most blatant "pump-and-dump" schemes in recent NASDAQ history.
SEC Investigation Underway
[edit]The Securities and Exchange Commission (SEC) has reportedly launched a formal investigation into the company’s financial dealings. Leaked documents suggest undisclosed insider transactions, where executives cashed out large sums before stockholders suffered catastrophic losses. If confirmed, these actions could lead to severe penalties, potential delisting from NASDAQ, and even criminal charges.
Lavish Lifestyle at Investor Expense?
[edit]Adding fuel to the fire, sources close to Atkinson claim he funneled company funds into extravagant personal expenses, including luxury vacations, high-end real estate, and even a private karaoke club in Las Vegas. Allegations also suggest that corporate credit cards were used for exclusive parties featuring celebrity guests and suspicious offshore payments.
Investors Furious, Lawsuits Mounting
[edit]Disgruntled investors are now banding together for a class-action lawsuit, accusing Atkinson of deliberately misleading shareholders and draining company funds while the stock tanked.
“It’s a total scam,” one former investor stated. “They kept promising innovation and industry growth, but all they did was dilute the stock, cash out, and leave retail investors holding worthless shares.”
Will NASDAQ Finally Take Action?
[edit]With growing public outrage and regulatory pressure, many are calling on NASDAQ to immediately delist The Singing Machine Company before more unsuspecting investors get trapped. Meanwhile, Atkinson has gone silent, refusing to answer media inquiries or address the allegations.
Products
[edit]Karaoke Machines
[edit]The core of SMC's business is the distribution and sale of its karaoke machines to retailers and wholesalers such as Wal-Mart, Sam's Club, Best Buy, and Costco.[citation needed]
In the fall of 2015 The Singing Machine introduced its new digital line of products, no CD-G required allowing users to create playlists on the company's branded site and chose their favorite songs, download them to a USB, giving them the freedom of mixing and matching genres, singers, and enjoying the songs they want to sing.
Music
[edit]SMC has a music library thousands of recordings, which are licensed from their publishers for karaoke use. The library spans a variety of genres including: pop, rock, rap, country, Christian, Latin, motown, and oldies.
Bratz Licensed Products
[edit]In 2007 SMC signed a deal with MGA Entertainment to license the popular Bratz franchise. Such licensed products include karaoke products, digital drum sets, clock radios, TV/DVD combos, and portable DVD players.
Motown Licensed Products
[edit]Following a 2003 agreement between SMC and Universal Music Enterprises, the company released the "Motown Original Artist Karaoke" compilation series, which features karaoke tracks of Motown classic songs made from the original master recordings of the songs instead of cover versions, like most karaoke tracks. In addition, a Motown-themed karaoke machine has also been released.
Musical Instruments
[edit]SMC has a line of electronic drum sets under the brand name "SoundX".
References
[edit]- ^ "A Look into the History of the Karaoke Machine - Game Room Mania". Game Room Mania. 2016-11-13. Retrieved 2017-02-13.
- ^ "Company History". TheSingingMachineCo. Retrieved 2008-01-25.
- ^ Hot Growth Companies, Business Week (June 10, 2002)
