---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-23-031486"
form_type: "8-K"
ticker: "RIME"
cik: "0000923601"
company_name: "Algorhythm Holdings, Inc."
filed_at: "2023-09-01T23:59:59+00:00"
generated_at: "2026-06-11T00:52:50.330065+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# Singing Machine receives waiver for loan default but credit line cut from $5M to $2M

## Summary
- Lender waived Event of Default from failing to deliver June 2023 financial statements on time.
- Borrowing base and maximum revolving loan limit reduced from $5M to $2M.
- New liquidity covenant: cash + availability must be at least $2.5M at each month-end starting July 31, 2023.
- Termination fee (Section 4.05(e)) and Section 12.04 deleted from Credit Agreement.

## SEC filing metadata
- accession: 0001493152-23-031486
- form_type: 8-K
- ticker: RIME
- cik: 0000923601
- company_name: Algorhythm Holdings, Inc.
- filed_at: 2023-09-01T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/923601/000149315223031486/0001493152-23-031486-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/923601/000149315223031486/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-031486
- JSON: https://secwatch.observer/filing/0001493152-23-031486.json
- Plain text: https://secwatch.observer/filing/0001493152-23-031486.txt

## Key facts
- Material Agreements
  Algorhythm Holdings, Inc. amended Revolving Loan Amendment with Fifth Third Bank, National Association (effective 2023-08-30).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: Fifth Third Bank, National Association
  - Effective: 2023-08-30
  source text: On August 30, 2023, The Singing Machine Company, Inc. and its wholly owned subsidiary, SMC Logistics, Inc., entered into a Waiver and Second Amendment (the “Revolving Loan Amendment”) to that certain Credit and Security Agreement (the “Credit Agreement”) with Fifth Third Bank, National Association, dated as of October 14, 2022.
  evidence_url: https://www.sec.gov/Archives/edgar/data/923601/000149315223031486/0001493152-23-031486-index.htm

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