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RIME settles $1,928,014 liability with up to 5 million shares, rewrites executive change-of-control terms

7/25/2026

$1,928,014 in outstanding liabilities is the claim at the center of Algorhythm Holdings' July 21, 2026 settlement with Continuation Capital, Inc., disclosed in a Form 8-K filed July 24.

The Fort Lauderdale, Florida company (Nasdaq: RIME) agreed to issue up to 5,000,000 shares of common stock in one or more tranches until Continuation Capital has generated aggregate proceeds equal to 120% of that amount, or $2,313,617.

The Circuit Court of the Twelfth Judicial Circuit in and for Desoto County, Florida approved the agreement on July 23, after a fairness hearing under Section 3(a)(10) of the Securities Act of 1933.

Settlement terms Continuation Capital, Inc. (CCI), a Delaware corporation, acquired the underlying liabilities from their former holders before the settlement was signed.