---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-019127"
form_type: "8-K"
ticker: "RIME"
cik: "0000923601"
company_name: "Algorhythm Holdings, Inc."
filed_at: "2023-05-25T23:59:59+00:00"
generated_at: "2026-06-14T15:27:38.377076+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.65
calibrated_materiality_score: 0.65
confidence: "high"
source: SEC EDGAR
---

# Singing Machine obtains waiver of credit defaults; adds new liquidity and cash flow covenants

## Summary
- Fifth Third Bank waived existing defaults for Nov 2022–Feb 2023 fixed charge coverage violations.
- New minimum Liquidity (Excess Availability + cash) set at $2.5M–$4M through July 2024.
- Minimum Operating Cash Flow covenant ranges from $(750k) to $(3.55M) for Feb–Aug 2023.
- Equity cure right available up to $500k per 365-day period, max 4 times total, for covenant breaches.
- Company paid a $10,000 waiver and amendment fee upon execution.

## SEC filing metadata
- accession: 0001493152-23-019127
- form_type: 8-K
- ticker: RIME
- cik: 0000923601
- company_name: Algorhythm Holdings, Inc.
- filed_at: 2023-05-25T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.65
- calibrated_materiality_score: 0.65
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/923601/000149315223019127/0001493152-23-019127-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/923601/000149315223019127/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-019127
- JSON: https://secwatch.observer/filing/0001493152-23-019127.json
- Plain text: https://secwatch.observer/filing/0001493152-23-019127.txt

## Key facts
- Material Agreements
  Algorhythm Holdings, Inc. amended Revolving Loan Amendment with Fifth Third Bank, National Association (effective 2023-05-19).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: Fifth Third Bank, National Association
  - Effective: 2023-05-19
  source text: On May 19, 2023, The Singing Machine Company, Inc. (the “Company”) and its wholly-owned subsidiary, SMC Logistics, Inc. (“SMC”), entered into a Waiver and First Amendment (the “Revolving Loan Amendment) to that certain Credit and Security Agreement (the “Credit Agreement”) with Fifth Third Bank, National Association, (“Fifth Third”), dated as of October 14, 2022.
  evidence_url: https://www.sec.gov/Archives/edgar/data/923601/000149315223019127/0001493152-23-019127-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.