secwatch.observer — SEC 8-K summary
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Issuer:     Algorhythm Holdings, Inc. (RIME)
CIK:        0000923601
Form:       8-K
Filed at:   2023-05-25T23:59:59+00:00
Accession:  0001493152-23-019127
Event type: debt
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/923601/000149315223019127/0001493152-23-019127-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/923601/000149315223019127/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-23-019127

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