Singing Machine Regains Compliance with Nasdaq Stock Market Rule 5550(b)(1)

Singing Machine (OTCMKTS:SMDM) recently announced in an 8-K filing that the company has successfully regained compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market under Nasdaq Stock Market Rule 5550(b)(1).

As indicated in the filing, Singing Machine had received a letter from Nasdaq on August 26, 2024, highlighting the non-compliance issue due to reported stockholders’ equity of less than $2.5 million in its Quarterly Report on Form 10-Q for the period ended June 30, 2024. In response, Singing Machine submitted a plan to regain compliance within 45 days of receiving the initial notice.

On November 13, 2024, Singing Machine filed a Current Report on Form 8-K detailing the steps taken to address the non-compliance issue and expressing confidence that compliance had been achieved. Subsequently, on November 22, 2024, the company received confirmation from Nasdaq that it now complies with Nasdaq Listing Rule 5550(b)(1.

However, Singing Machine has been made aware that any failure to demonstrate continued compliance in its next periodic report filed with the Securities and Exchange Commission could lead to delisting. In such a situation, Nasdaq Staff would provide written notification, allowing the company to appeal the decision to a listing panel.

The management team at Singing Machine, led by Chief Executive Officer Gary Atkinson, signed off on the 8-K report on November 25, 2024. This marks a positive development for the company as it moves forward with a renewed focus on maintaining compliance with listing requirements.

Investors and stakeholders are advised to monitor Singing Machine’s future filings closely to ensure ongoing compliance with regulatory standards and listing requirements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Singing Machine’s 8K filing here.

About Singing Machine

The Singing Machine Company, Inc, together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Europe, Asia, and Australia. It offers karaoke products under the flagship brand Singing Machine; licensed karaoke microphone products under the Carpool Karaoke brand; microphone accessories and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for Singing Machine hardware.