Singing Machine Co. Faces Delisting Concerns

TL;DR

SMCN might get kicked off the exchange, big trouble brewing.

AI Summary

Singing Machine Co., Inc. filed an 8-K on August 30, 2024, reporting a notice of delisting or failure to satisfy a continued listing rule or standard. The earliest event reported was on August 26, 2024. The company is incorporated in Delaware and its principal executive offices are located in Fort Lauderdale, Florida.

Why It Matters

This filing indicates potential issues with the company's continued listing on a stock exchange, which could impact its stock's liquidity and investor confidence.

Risk Assessment

Risk Level: high — A notice of delisting or failure to meet listing standards poses a significant risk to the company's stock trading and overall financial health.

Key Players & Entities

• Singing Machine Co., Inc. (company) — Registrant
• August 26, 2024 (date) — Earliest event reported
• August 30, 2024 (date) — Filing date
• Delaware (jurisdiction) — State of incorporation
• Fort Lauderdale, FL (location) — Principal executive offices

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share MICS The Nasdaq Stock Mar
• $1.00 — common stock listed on Nasdaq was below $1.00 for the prior 33 consecutive trading da
• $2,500,000 — pany's stockholders' equity be at least $2,500,000 (the "Stockholders' Equity Requirement"
• $872,999 — olders' equity as of June 30, 2024 was ($872,999). The Staff's notice has no immediate i

Filing Documents

• form8-k.htm (8-K) — 40KB
• 0001493152-24-034617.txt ( ) — 212KB
• mics-20240826.xsd (EX-101.SCH) — 3KB
• mics-20240826_lab.xml (EX-101.LAB) — 33KB
• mics-20240826_pre.xml (EX-101.PRE) — 24KB
• form8-k_htm.xml (XML) — 4KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 26, 2024 THE SINGING MACHINE COMPANY, INC. (Exact name of registrant as specified in charter) Delaware 001-41405 95-3795478 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 6301 NW 5th Way , Suite 2900 Fort Lauderdale , FL 33309 (Address of principal executive offices) (Zip Code) (954) 596-1000 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.01 per share MICS The Nasdaq Stock Market LLC (The Nasdaq Capital Market) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( 240.12b-2 of this chapter). Emerging growth If an emerging growth company, indicate by check mart if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. Nasdaq Minimum Bid Price Requirement Deficiency On August 26, 2024, The Singing Machine Company, Inc. (the "Company") received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, because the closing bid price for the Company's common stock listed on Nasdaq was below $1.00 for the prior 33 consecutive trading days, the Company no longer meets the minimum bid price requirement for continued listing on The Nasdaq Capital Market under Nasdaq Marketplace Rule 5550(a)(2), requiring a minimum bid price of $1.00 per share (the "Minimum Bid Price Requirement"). The notification has no immediate effect on the listing of the Company's common stock. In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has a period of 180 calendar days from August 26, 2024, or until February 24, 2025, to regain compliance with the Minimum Bid Price Requirement. If at any time before February 24, 2025, the bid price of the Company's common stock closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has achieved compliance with the Minimum Bid Price Requirement. The notification letter also disclosed that in the event the Company does not regain compliance with the Minimum Bid Price Requirement by February 24, 2025, the Company may be eligible for additional time. To qualify for additional time, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If the Company meets these requirements, Nasdaq will inform the Company that it has been granted an additional 180 calendar days to regain compliance. However, if it appears to the staff of Nasdaq (the "Staff") that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the Staff would notify the Company that its securities will be subject to delisting. The Company intends to continue actively monitoring the bid price for its common stock between now and February 24, 2025, and will consider available options to resolve the deficiency and regain compliance with the Minimum Bid Price Requirement. Nasdaq Stockholder's Equity Requirement Deficiency In addition, on August 26, 2024, the Company received a notification letter from Nasdaq indicating that the Company's stockholders' equity as reported in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 (the "Form 10-Q"), did not satisfy th

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View this 8-K filing on SEC EDGAR