STOCKHOLDERS’ EQUITY

9 Months Ended

12 Months Ended

Sep. 30, 2024

Dec. 31, 2023

STOCKHOLDERS’ EQUITY

NOTE 10 – ISSUANCE OF COMMON STOCK

Equity Incentive Plan

On April 12, 2022, the Board of Directors approved The Singing Machine Company, Inc. 2022 Equity Incentive Plan, or the 2022 Plan. The 2022 Plan provides for the issuance of equity incentive awards, such as stock options, stock appreciation rights, stock awards, restricted stock, stock units, performance awards and other stock or cash-based awards collectively, the “Awards.” Awards may be granted under the 2022 Plan to the Company’s employees, officers, directors, consultants, agents, advisors and independent contractors.

There were 150,943 share base compensation awards issued under the 2022 Plan during the three and nine months ended September 30, 2024 with a weighted average grant date fair value of $0.55 per share. There were no share base compensation awards issued under the 2022 Plan during the three and nine months ended September 30, 2023. There were 1,250 and 6,500 shares forfeited during the three and nine months ended September 30, 2024, respectively. There were no shares forfeited during the three and nine months ended September 30, 2023. As of September 30, 2024, there were 63,453 shares available to be issued under the 2022 Plan.

Equity compensation under the 2022 Plan was approximately $101,000 and $138,000 during the three and nine months ended September 30, 2024 and was expensed as a component of general administrative expenses on the accompanying condensed consolidated statements of operations. As of September 30, 2024, there was an unrecognized expense of approximately $50,000 remaining on options currently vesting over time with an approximate weighted average of twelve months remaining until these options are fully vested.

The vested options as of September 30, 2024, had no intrinsic value.

Other Equity Compensation

During the three and nine months ended September 30, 2024, the Company issued 774,528 shares of common stock to three vendors for payment of consulting services rendered and 94,340 for restricted shares of common stock to Vivek Sehgal (a related party) as bonus compensation (See Note 5). The grant date fair value for all of these share issuances was approximately $478,000 and were expensed as a component of general and administrative expenses on the accompanying condensed consolidated statements of operations during the three and nine months ended September 30, 2024. These shares vest immediately but must be held for a minimum of six months in accordance with Securities Exchange Commission Rule 144.

Semi Cab Inc [Member]

STOCKHOLDERS’ EQUITY

NOTE 10 – STOCKHOLDERS’ EQUITY

EQUITY INCENTIVE PLAN

The Company has maintained an equity incentive plan since 2020. Under this plan, all employees have been eligible to received common stock options as a part of their performance-based incentive compensation plan.

COMMON STOCK OPTIONS

During the years ended December 31, 2020, 2021 and 2022 the Company issued the following stock options, as shown below. No options were issued in 2023 or 2024.

Holder	Granted Shares		Outstanding Awards		Grant Date	Exercise Price		Vesting Start Date	Vested Outstanding		Unvested		Date Fully Vested	Board Approval Date	Expiration Date
Sudhir Narasimhamurthy		180,000		180,000	09-29-2020	$	0.06	09-29-2020		180,000		0	09-29-2023	09-28-2020	09-28-2030
Sudhir Narasimhamurthy		50,000		50,000	08-12-2021	$	0.06	09-01-2021		33,333		16,667	09-01-2025	08-12-2021	08-11-2031
Sudhir Narasimhamurthy		25,000		25,000	05-02-2022	$	0.05	05-02-2022		12,500		12,500	05-02-2026	05-02-2022	05-01-2032
Kadandale Srinivas Sudheer		600,000		600,000	09-29-2020	$	0.06	09-29-2020		600,000		0	09-29-2023	09-28-2020	09-28-2030
Kadandale Srinivas Sudheer		100,000		100,000	08-12-2021	$	0.06	09-01-2021		66,666		33,334	09-01-2025	08-12-2021	08-11-2031
Kadandale Srinivas Sudheer		50,000		50,000	05-02-2022	$	0.05	05-02-2022		25,000		25,000	05-02-2026	05-02-2022	05-01-2032
Vivek Sehgal		4,000,000		4,000,000	09-29-2020	$	0.06	09-29-2020		4,000,000		0	09-29-2023	09-28-2020	09-28-2030
Vivek Sehgal		200,000		200,000	08-12-2021	$	0.06	09-01-2021		133,333		66,667	09-01-2025	08-12-2021	08-11-2031
Vivek Sehgal		100,000		100,000	05-02-2022	$	0.05	05-02-2022		50,000		50,000	05-02-2026	05-02-2022	05-01-2032
Rajiv Saxena		100,000		100,000	09-29-2020	$	0.06	09-29-2020		100,000		0	09-29-2023	09-28-2020	09-28-2030
Harsha Bhat		180,000		180,000	09-29-2020	$	0.06	09-29-2020		180,000		0	09-29-2023	09-28-2020	09-28-2030
Harsha Bhat		50,000		50,000	08-12-2021	$	0.06	09-01-2021		33,333		16,667	09-01-2025	08-12-2021	08-11-2031
Harsha Bhat		25,000		25,000	05-02-2022	$	0.05	05-02-2022		12,500		12,500	05-02-2026	05-02-2022	05-01-2032
Jagan Reddy		4,000,000		4,000,000	09-29-2020	$	0.06	09-29-2020		4,000,000		0	09-29-2023	09-28-2020	09-28-2030
Jagan Reddy		200,000		200,000	08-12-2021	$	0.06	09-01-2021		133,333		66,667	09-01-2025	08-12-2021	08-11-2031
Jagan Reddy		100,000		100,000	05-02-2022	$	0.05	05-02-2022		50,000		50,000	05-02-2026	05-02-2022	05-01-2032
Siddayya S Ganjal		180,000		180,000	09-29-2020	$	0.06	09-29-2020		180,000		0	09-29-2023	09-28-2020	09-28-2030
Siddayya S Ganjal		50,000		50,000	08-12-2021	$	0.06	09-01-2021		33,333		16,667	09-01-2025	08-12-2021	08-11-2031
Siddayya S Ganjal		25,000		25,000	05-02-2022	$	0.05	05-02-2022		12,500		12,500	05-02-2026	05-02-2022	05-01-2032
Sunil Arora		90,000		0	09-29-2020	$	0.06	09-29-2020		0		0	09-29-2023	09-28-2020	09-28-2030
Rajiv Virmani		500,000		500,000	09-29-2020	$	0.06	09-29-2020		500,000		0	09-29-2023	09-28-2020	09-28-2030
Sudhindra Shenoy		180,000		180,000	09-29-2020	$	0.06	09-29-2020		180,000		0	09-29-2023	09-28-2020	09-28-2030
Sudhindra Shenoy		50,000		50,000	08-12-2021	$	0.06	09-01-2021		33,333		16,667	09-01-2025	08-12-2021	08-11-2031
Sudhindra Shenoy		25,000		25,000	05-02-2022	$	0.05	05-02-2022		12,500		12,500	05-02-2026	05-02-2022	05-01-2032
Antony Sunil		90,000		90,000	09-29-2020	$	0.06	09-29-2020		90,000		0	09-29-2023	09-28-2020	09-28-2030
Antony Sunil		50,000		50,000	08-12-2021	$	0.06	09-01-2021		33,333		16,667	09-01-2025	08-12-2021	08-11-2031
Antony Sunil		25,000		25,000	05-02-2022	$	0.05	05-02-2022		12,500		12,500	05-02-2026	05-02-2022	05-01-2032
Tuleeka Nandy		15,000		0	08-12-2021	$	0.06	09-01-2021		0		0	09-01-2025	08-12-2021	08-11-2031
Tuleeka Nandy		15,000		15,000	05-02-2022	$	0.05	05-02-2022		7,500		7,500	05-02-2026	05-02-2022	05-01-2032
Robel Atnafu		5,000		0	08-12-2021	$	0.06	09-01-2021		0		0	09-01-2025	08-12-2021	08-11-2031
Guy Primus		360,000		360,000	08-12-2021	$	0.06	09-01-2021		240,000		120,000	09-01-2025	08-12-2021	08-11-2031
Samartha Gowda		15,000		15,000	05-02-2022	$	0.05	05-02-2022		7,500		7,500	05-02-2026	05-02-2022	05-01-2032
Alexandra Aiello		2,500		2,500	05-02-2022	$	0.05	05-02-2022		1,250		1,250	05-02-2026	05-02-2022	05-01-2032
Stephen Cabral		5,000		0	05-02-2022	$	0.05	05-02-2022		0		0	05-02-2026	05-02-2022	05-01-2032
Jonah Petit-Perrin		2,500		2,500	05-02-2022	$	0.05	05-02-2022		1,250		1,250	05-02-2026	05-02-2022	05-01-2032
Bryan Nella		25,000		25,000	05-02-2022	$	0.05	05-02-2022		12,500		12,500	05-02-2026	05-02-2022	05-01-2032
Mark Sink		25,000		25,000	05-16-2022	$	0.05	05-16-2022		12,500		12,500	05-16-2026	05-02-2022	05-15-2032
Koustav Choudhuri		17,000		17,000	05-16-2022	$	0.05	05-16-2022		8,500		8,500	05-16-2026	05-02-2022	05-15-2032
Total		11,712,000		11,597,000

WARRANTS

Not applicable. The Company has not issued any form of a warrant.

COMMON STOCK ISSUANCES

Not applicable other than founders shares in the amount of 25,000,000. The Company has only used SAFE convertible notes convertible into preferred equity, and common stock options to date.