Algorhythm sells Singing Machine karaoke business to Stingray for $4.5M, eliminates $4M liabilities

Algorhythm Holdings, Inc.

Transaction closed Aug 1, 2025; consideration of $4.5M includes cash and assumption of ~$4M in liabilities, vastly de-levering balance sheet.
Annual cash burn reduced by over 70% after sale of consumer electronics division; US headcount eliminated.
SemiCab AI freight platform annualized revenue run rate tripled to ~$7M since January 2025; company now focusing capital there.
Related-party transaction: director Mathieu Peloquin is an officer of Stingray Group; board including disinterested directors approved the deal.
Pro forma financial information to be filed within 71 days per SEC requirements.

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