secwatch.observer — SEC 8-K summary
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Issuer:     Algorhythm Holdings, Inc. (RIME)
CIK:        0000923601
Form:       8-K
Filed at:   2026-07-24T21:12:54+00:00
Accession:  0001493152-26-034615
Event type: other_material
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 3.02, 5.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Algorhythm settles $1.93M debt with up to 5M shares; amends CEO/CFO employment agreements
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- Settlement with Continuation Capital: issue up to 5M shares to satisfy $1,928,014 in liabilities; court approved under Section 3(a)(10).
- CEO Gary Atkinson amended agreement: $360K base salary, annual bonus up to 50% of base, stock option for 5% of fully diluted shares.
- CFO Alex Andre amended agreement harmonizes change-in-control treatment; both executives get lump-sum bonus equal to base salary plus max annual bonus upon change of control.
- Shares issued to CCI cannot exceed 19.99% of outstanding common stock at any time.
- Settlement avoids litigation and uses private placement exemption from registration.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/923601/000149315226034615/0001493152-26-034615-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/923601/000149315226034615/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-26-034615

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