---
schema_version: "secwatch.filing_event.v1"
accession: "0001641172-25-022621"
form_type: "8-K"
ticker: "RIME"
cik: "0000923601"
company_name: "Algorhythm Holdings, Inc."
filed_at: "2025-08-07T23:59:59+00:00"
generated_at: "2026-05-17T18:46:42.779042+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001641172-25-022621
- form_type: 8-K
- ticker: RIME
- cik: 0000923601
- company_name: Algorhythm Holdings, Inc.
- filed_at: 2025-08-07T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.01, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/923601/000164117225022621/0001641172-25-022621-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/923601/000164117225022621/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001641172-25-022621
- JSON: https://secwatch.observer/filing/0001641172-25-022621.json
- Plain text: https://secwatch.observer/filing/0001641172-25-022621.txt

## Key facts
- M&A Transactions
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/923601/000164117225022621/0001641172-25-022621-index.htm

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