Leaked documents suggest undisclosed insider transactions, where executives cashed out large sums before stockholders suffered catastrophic losses.

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.

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.

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.