Algorhythm Completes $4.5 Million Sale of Singing Machine Karaoke Business
Algorhythm Holdings (NASDAQ: RIME) has sold its Singing Machine karaoke business to Stingray Music USA for $4.5 million in a strategic transaction combining cash payment and assumption of selected liabilities. The deal eliminates approximately $4 million in liabilities from Algorhythm's balance sheet.
The sale marks a pivotal shift as Algorhythm focuses on its SemiCab AI freight platform, which has demonstrated significant growth with annualized revenue reaching $7 million, more than triple its January 2025 levels. The transaction will reduce annual cash outflows by over 70% and streamline operations by eliminating U.S. headcount associated with the consumer electronics division.
Algorhythm Holdings (NASDAQ: RIME) ha venduto la sua divisione karaoke Singing Machine a Stingray Music USA per 4,5 milioni di dollari in un'operazione strategica che combina un pagamento in contanti e l'assunzione di passività selezionate. L'accordo elimina circa 4 milioni di dollari di passività dal bilancio di Algorhythm.
La vendita rappresenta un cambiamento cruciale, poiché Algorhythm si concentra sulla sua piattaforma di trasporto SemiCab AI, che ha mostrato una crescita significativa con ricavi annualizzati che raggiungono i 7 milioni di dollari, più che triplicando i livelli di gennaio 2025. La transazione ridurrà i flussi di cassa in uscita annuali di oltre il 70% e semplificherà le operazioni eliminando il personale statunitense associato alla divisione di elettronica di consumo.
Algorhythm Holdings (NASDAQ: RIME) ha vendido su negocio de karaoke Singing Machine a Stingray Music USA por 4,5 millones de dólares en una transacción estratégica que combina un pago en efectivo y la asunción de ciertas responsabilidades. El acuerdo elimina aproximadamente 4 millones de dólares en pasivos del balance de Algorhythm.
La venta marca un cambio fundamental, ya que Algorhythm se enfoca en su plataforma de transporte SemiCab AI, que ha mostrado un crecimiento significativo con ingresos anualizados que alcanzan los 7 millones de dólares, más del triple de los niveles de enero de 2025. La transacción reducirá los flujos de efectivo anuales en más del 70% y simplificará las operaciones al eliminar el personal en EE. UU. asociado con la división de electrónica de consumo.
Algorhythm Holdings (NASDAQ: RIME)는 자사의 Singing Machine 노래방 사업을 Stingray Music USA에 450만 달러에 전략적 거래로 매각했습니다. 이 거래는 현금 지급과 선택된 부채 인수를 결합한 형태입니다. 이 거래로 Algorhythm의 대차대조표에서 약 400만 달러의 부채가 제거됩니다.
이번 매각은 Algorhythm이 SemiCab AI 화물 플랫폼에 집중하는 중대한 전환점입니다. 이 플랫폼은 연간 매출이 700만 달러에 달하며 2025년 1월 수준의 3배 이상 성장했습니다. 거래로 연간 현금 유출이 70% 이상 줄어들고, 소비자 전자제품 부문과 관련된 미국 인력도 감축되어 운영이 간소화됩니다.
Algorhythm Holdings (NASDAQ : RIME) a vendu son activité de karaoké Singing Machine à Stingray Music USA pour 4,5 millions de dollars dans le cadre d'une transaction stratégique combinant un paiement en espèces et la prise en charge de certaines dettes. Cette opération permet de supprimer environ 4 millions de dollars de passifs du bilan d'Algorhythm.
Cette vente marque un tournant important alors qu'Algorhythm se concentre sur sa plateforme de fret SemiCab AI, qui a connu une croissance significative avec un chiffre d'affaires annualisé atteignant 7 millions de dollars, soit plus du triple des niveaux de janvier 2025. La transaction réduira les sorties de trésorerie annuelles de plus de 70 % et simplifiera les opérations en supprimant les effectifs américains liés à la division électronique grand public.
Algorhythm Holdings (NASDAQ: RIME) hat sein Karaoke-Geschäft Singing Machine an Stingray Music USA für 4,5 Millionen US-Dollar in einer strategischen Transaktion verkauft, die eine Barzahlung und die Übernahme ausgewählter Verbindlichkeiten kombiniert. Der Deal eliminiert etwa 4 Millionen US-Dollar an Verbindlichkeiten aus der Bilanz von Algorhythm.
Der Verkauf markiert einen entscheidenden Wandel, da sich Algorhythm auf seine SemiCab AI-Frachtplattform konzentriert, die ein signifikantes Wachstum mit einem annualisierten Umsatz von 7 Millionen US-Dollar verzeichnet, was mehr als das Dreifache des Niveaus von Januar 2025 ist. Die Transaktion wird die jährlichen Cashflows um über 70 % reduzieren und die Abläufe durch den Abbau von US-Mitarbeitern in der Unterhaltungselektronik-Sparte straffen.
- None.
- Complete exit from established karaoke business with 40-year market leadership
- Loss of consumer electronics revenue stream
- Reduction in U.S. workforce
Insights
Algorhythm's $4.5M sale of Singing Machine significantly reduces debt and cash burn while pivoting to focus on its rapidly growing AI freight platform.
This strategic divestiture represents a pivotal transformation for Algorhythm Holdings, converting the company from a consumer electronics business to a focused AI technology platform. The
The deal's structure is financially prudent - Stingray pays in cash and assumes selected liabilities and payables, allowing Algorhythm to essentially trade a lower-growth legacy business for immediate balance sheet improvement. By shedding the human capital requirements of the consumer electronics division, management can redirect resources to the SemiCab AI freight platform, which has demonstrated exceptional growth by more than tripling its annualized revenue run rate to approximately
This transaction follows a classic corporate restructuring playbook: divest non-core assets, reduce operational complexity, and concentrate resources on high-growth segments. The move transforms Algorhythm's business model from capital-intensive consumer electronics to a scalable AI-driven platform with significantly improved unit economics. With SemiCab's current
The strategic refocusing also addresses operational efficiency by shifting future headcount growth to lower-cost markets, primarily India, creating a more sustainable cost structure for scaling operations. This transformation effectively repositions Algorhythm from a traditional hardware company to a technology platform with potentially higher margins and scalability.
Accelerated SemiCab Momentum Fuels Capital Shift Toward Growth
Fort Lauderdale, FL, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), a leading AI technology and consumer electronics holding company, announced today that it has sold its Singing Machine karaoke consumer electronics business to Stingray (“Stingray”), an industry leader in music and video content distribution, business services, and advertising solutions. 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 (which includes marketable inventory) was
Key Highlights of the Transaction:
- Strengthened Balance Sheet: The transaction eliminated approximately
$4 million in liabilities, vastly improving and de-levering Algorythm’s balance sheet going forward. - Reduction in Annual Cash Burn: The sale of the Company’s karaoke and consumer electronics business will reduce the company’s annual cash outflows by
70% +. - Highly Scalable, Human Capital Light Business Model: 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.
- Focused Capital Allocation: 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 .
“The sale of our Singing Machine business represents a major milestone for Algorhythm Holdings,” said Gary Atkinson, CEO of Algorhythm. “Last year, we expanded our business focus toward highly scalable, AI-driven technologies with massive growth potential. With the sale of Singing Machine, we can now fully focus all of our time, energy and capital on accelerating the growth of SemiCab, our rapidly expanding AI freight logistics and distribution platform. We are very excited about what the future holds.”
Atkinson continued, “We believe this transaction with Stingray will provide a seamless transition for Singing Machine’s employees, customers, and partners. I am proud of Singing Machine’s legacy as the worldwide #1 brand in the home karaoke market for over 40 years and am confident that the brand under Stingray’s stewardship will continue to thrive and dominate the karaoke market for decades to come.”
About Algorhythm Holdings
Algorhythm Holdings, Inc. (NASDAQ: RIME) is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine.
SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully-loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing.
For additional information, please go to: http://www.semicab.com
Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart.
For additional information, please go to www.singingmachine.com.
Investor Relations Contact:
investors@algoholdings.com
www.algoholdings.com
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
FAQ
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