Algorhythm completes sale of Singing Machine karaoke business

Algorhythm (RIME) sold its Singing Machine karaoke consumer electronics business to Stingray (STGYF). Under the terms of the deal, Stingray’s subsidiary, Stingray Music USA, Inc., acquired all of the assets of the Singing Machine’s karaoke business. The consideration for the purchased assets was $4.5M, paid in cash and by the assumption of selected liabilities and trade payables. Key Highlights of the Transaction: The transaction eliminated approximately $4 million in liabilities, vastly improving and de-levering Algorythm’s balance sheet going forward.The sale of the Company’s karaoke and consumer electronics business will reduce the company’s annual cash outflows by 70%+. The transaction vastly reduces the Company’s reliance on human capital. The transaction will eliminate headcount in the US associated with the consumer electronics division. Going forward, almost all expected headcount growth will be in vastly lower cost markets, primarily India. With the sale of Singing Machine, Algorhythm is now strategically positioned to concentrate capital and operational resources on SemiCab-its high-growth AI freight platform-which has more than tripled its annualized revenue run rate since January 2025, reaching approximately $7 million.