Algorhythm Holdings, Inc., previously known as Singing Machine Co Inc, announced significant corporate changes, including the termination of a financial agreement and amendments to its By-laws affecting stockholder meetings. The Delaware-incorporated company, which operates in the phonograph records and prerecorded audio tapes and disks sector, disclosed these developments in a recent SEC filing.
On Monday, the company concluded its Loan Agreement with Oxford Commercial Finance, settling the associated Revolving Credit Note established on March 28, 2024. Algorhythm Holdings reported no outstanding loan balance as of the termination date but is obligated to pay a $40,000 early termination fee.
In a move impacting stockholder engagement, Algorhythm Holdings amended its Amended By-laws on Sunday, October 18, 2024. The amendment, approved by the Board of Directors, reduces the quorum required for stockholder meetings from a majority to one-third (33 1/3%) of the voting power of the shares entitled to vote. This change aims to facilitate easier decision-making and meeting governance.
InvestingPro Insights
Algorhythm Holdings' recent corporate changes come amid challenging market conditions for the company. According to InvestingPro data, the stock has taken a significant hit over various time frames, including the last week, month, three months, and six months. This downward trend is further reflected in the stock's current price, which stands at only 32.69% of its 52-week high.
The company's financial health appears to be under pressure, with InvestingPro Tips highlighting that Algorhythm Holdings is not profitable over the last twelve months. This is corroborated by the negative Operating Income Margin of -21.64% and a concerning Return on Assets of -50.61% for the last twelve months as of Q3 2024.
Despite these challenges, it's worth noting that the stock has shown a strong return over the last five years, according to one of the InvestingPro Tips. This long-term performance contrasts with the recent struggles and may be of interest to investors considering the company's potential for recovery.
For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Algorhythm Holdings, providing deeper insights into the company's financial situation and market position.
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