Algorhythm Holdings, Inc. (RIME): M&A transaction — 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.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Algorhythm Holdings, Inc. completed a disposition involving The Singing Machine Company, Inc. and Stingray Music USA, Inc. for for $500,000 (closed 2025-08-01).

Action: disposition
Counterparty: The Singing Machine Company, Inc. and Stingray Music USA, Inc.
Consideration: for $500,000
Closing: 2025-08-01

Exact text from the filing

On August 1, 2025, Algorhythm Holdings, Inc. (the “Company”) entered into an asset purchase agreement (the “Agreement”) with The Singing Machine Company, Inc. and Stingray Music USA, Inc. (“Stingray USA”), a related party, pursuant to which Stingray USA purchased substantially all of the assets, and assumed most of the liabilities, associated with the Company’s Singing Machine business (the “Business”) for $500,000.

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29 m&a transactions filed in the last 30 days. Browse all m&a transactions →

Algorhythm Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001641172-25-022621

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