The Singing Machine Company, Inc. announced it has entered into a logistics agreement with Logistics Plus, Inc. to distribute Singing Machine's karaoke products throughout the U.S. and Canada. LP is a specialized, full-service logistics company with operations in 45+ countries worldwide. LP is a top third-party logistics provider, a top 100 logistics company, a top freight brokerage and dedicated logistics and warehousing service provider.

LP has over 1.37 million square feet in southern California, including Chino, Colton, San Bernardino, and Riverside, and over 5 million square feet across the United States. In response to significant rising costs of commercial real estate, labor, and supply-chain costs in southern California, the Company has decided to not renew its lease on its approximate 90,000 sq. ft of warehouse space in Ontario, California.

As a result, Singing Machine has opted to shift to a 100% variable-cost model, eliminating unneeded staffing, leasing, warehousing systems and equipment, and other fixed costs. The impact of this shift in operations will allow the Company to eliminate annually in excess of $1.6 million in fixed rent expense and approximately $1.2 million in direct and indirect labor expense.