EMERSON RADIO CORP

Emerson Radio Corp.

Company and focus

• Designs, sources, imports, markets, sells and licenses houseware and consumer electronic products under the Emerson brand and related marks (including Emerson® and H.H. Scott®).
• Licenses trademarks to third parties worldwide.
• Core strategy emphasizes brand recognition, a broad distribution base, sourcing/vendor relationships, and global licensing and distribution expertise. The company intends to continue licensing its trade names and trademarks to third parties.

Geography and markets

• Primary marketing and sales in the United States, with additional activity in Canada and Mexico.
• Products are manufactured predominantly in China and imported into the U.S.

Products and categories

• Houseware: microwave ovens, toaster ovens, heaters and fans, massagers, and related items.
• Audio and electronics: televisions, clock radios, karaoke machines, Bluetooth speakers, wireless charging devices, and accessories.
• The company markets both company-sourced products and licensed products bearing its trademarks.

Licensing activities

• Two active license agreements permitting licensees to manufacture and sell products bearing Emerson trademarks in defined territories.
• LMCA (Leveraged Marketing Corporation of America) and GLSL (Global Licensing Services Pte Limited) act as agents to identify and secure additional licensing opportunities.
• Licensing arrangements provide income with limited incremental costs and working capital requirements.

Customers and revenue concentration

• Fiscal 2026 net revenues by customer: Amazon ~42%; Fred Meyer ~13%.
• Fiscal 2025 net revenues by customer: Amazon ~39%; Walmart ~31%.
• Net trade accounts receivable as of March 31, 2026: Amazon ~64%; Fred Meyer ~20%.
• Net trade accounts receivable as of March 31, 2025: Amazon ~59%; Variety Wholesalers ~19%.
• Approximately 82% of net revenues in fiscal 2026 and 52% in fiscal 2025 were generated through third-party sales representative organizations; in fiscal 2026 two organizations accounted for about 68% of net revenues (one about 43%, another about 25%).

Direct Import Program and online channels

• Domestic program: products generally shipped from U.S. warehoused inventory with title passing at shipment.
• Direct Import Program: title passes to the customer in the country of origin; about 13% of product sales in fiscal 2026 and 11% in fiscal 2025 were through this program.
• Sells through third-party online marketplaces and the company website, with online channels identified as growth opportunities.

Manufacturing, suppliers, and sourcing risk

• All product purchases in fiscal 2026 and 2025 were finished goods from manufacturers located in China.
• Major suppliers accounted for ~96% of product purchases in 2026 and ~86% in 2025.
  • 2026: Welly (formerly Weili) 49%; Midea 33%; Itoma 14%; others 4%.
  • 2025: Welly 37%; Midea 12%; Itoma 37%; others 14%.
• The company relies on a limited number of suppliers and does not maintain long-term exclusive purchasing commitments. Supplier concentration, potential disruptions, and cost volatility present operational risks.
• Shipping costs are affected by global supply chain dynamics and ocean freight costs.

Warranties and product safety

• Warranty terms: generally one-year for microwave ovens and compact refrigerators; 90-day warranty for audio products.
• Subject to CPSC, FDA and other safety and regulatory regimes; recalls or repairs could incur costs and affect reputation.

Intellectual property

• Owns Emerson® and related trademarks with registrations in the U.S. and other jurisdictions.
• Licensing and brand protection are priorities to preserve brand value; infringement or mismanagement by licensees could affect brand integrity.

Information security and cybersecurity risk

• Information security and data privacy are managed through internal processes and third-party service providers.
• Cybersecurity threats and data breaches could have material negative effects.

Corporate structure and governance

• Nimble Holdings Company Limited, through indirect subsidiaries, beneficially owns approximately 72.4% of Emerson’s outstanding common stock as of March 31, 2026.
• Emerson is a “controlled company” under NYSE American rules and may rely on exemptions from certain governance requirements.
• Nimble’s ownership gives it material influence over board decisions, including director elections and major corporate actions.
• Bylaws designate Delaware’s Court of Chancery as the exclusive forum for many stockholder matters and federal courts for securities-act matters.

Employees

• As of June 4, 2026: 21 employees total (8 in the United States; 13 in China). No employees are union-represented; labor relations are described as good.

Financial snapshot and risks

• Revenue concentration is high among a small set of customers, with customer shares shifting between fiscal years.
• Direct Import Program, online marketplaces, and third-party sales representatives are material channels.
• The company identifies risks related to tariffs, supply chain disruptions, currency fluctuations, and regulatory compliance that could affect future revenues and profitability.

Availability and contact

• Corporate website: www.emersonradio.com
• The company files reports with the SEC and provides access to annual, quarterly, and current reports.

Key explicit facts

• Emerson designs, sources, imports, markets, sells, and licenses houseware and consumer electronics under the Emerson brand.
• All products are manufactured in China; 100% of product purchases in 2026 and 2025 were from Chinese manufacturers.
• Fiscal 2026 net revenues were dependent on two primary customers: Amazon 42%, Fred Meyer 13%. Fiscal 2025 depended on Amazon 39% and Walmart 31%.
• Direct Import Program accounted for about 13% of product sales in 2026 and 11% in 2025.
• Nimble controls approximately 72.4% of outstanding shares as of March 31, 2026; Emerson is a controlled company under NYSE American rules.
• 21 employees as of June 4, 2026 (8 U.S.; 13 China); no union representation.
• Warranty terms: one-year for microwave ovens and compact refrigerators; 90 days for audio products.
• Licensing is supported by LMCA and GLSL; two active license agreements.
• Major suppliers (2026): Welly 49%, Midea 33%, Itoma 14%, others 4%. Major suppliers (2025): Welly 37%, Midea 12%, Itoma 37%, others 14%.