On September 16, 2008 the Company received notice from the NYSE Alternext US (the "Exchange") indicating that the Company was below certain requirements of the Exchange's continued listing standards as of June 30, 2008. Specifically, shareholders' equity was less than $4,000,000 and there were losses from continuing operations in three of its four most recent fiscal years, as set forth in Section 1003(a)(ii) of the Exchange's Company Guide. In response, the Company submitted a timely plan of compliance to the Exchange. In a letter dated December 12, 2008 from the Exchange the Company was officially notified that the Exchange had accepted the Company's plan of compliance and the Company has until March 31, 2009 to complete the plan and regain compliance with Section 1003(a)(ii) of the Exchange's Company Guide. Staff advised the Company that it will be subject to periodic review by the Exchange during the extension period and that failure to make progress consistent with the Company's plan could result in delisting.

Also in that same letter dated December 12, 2008, the Exchange Staff has notified the Company that it deems the Company's common stock selling price as too low. The Exchange has informed the Company that it must address its low selling price by June 12, 2009 in order to remain in compliance with Company Guide Section 1003(f)(v).

(a) Exhibits.

Exhibit
Number                                  Description
99.1       Press Release, dated December 18, 2008 issued by The Singing Machine
           Company, Inc. (Filed herewith)