Singing Machine Board Approves Reverse Stock Split and Increase in Authorized Shares

On January 14, 2025, Algorhythm Holdings, Inc. (OTCMKTS:SMDM) made significant strides in its corporate restructuring plans as detailed in the Form 8-K filing submitted to the Securities and Exchange Commission. Following the annual stockholder meeting held on January 13, 2025, where shareholders endorsed a reverse stock split and an increase in authorized common stock, the company’s Board of Directors took critical actions to realign its financial structure.

As reported in the filing, shareholders at the meeting had greenlighted the Board of Directors to execute a reverse stock split within one year of January 13, 2025, with a designated ratio ranging from 1-for-10 to a maximum of 1-for-250. Additionally, they approved amending the Certificate of Incorporation to escalate the number of authorized common shares from 100,000,000 to 800,000,000 shares.

The subsequent day, on January 14, 2025, the Board of Directors decided on a 1-for-200 reverse stock split ratio and sanctioned the filing of a Certificate of Amendment to effectuate the reverse split and raise the authorized common shares to 800,000,000. This Certificate of Amendment was promptly filed with the Secretary of State of Delaware on the same day.

Despite the Board’s approval, it was noted that the reverse stock split has not yet come into effect in the public markets. The Form 8-K document also references the copy of the Certificate of Amendment, available as Exhibit 3.1 in the report, outlining the details of the approved actions.

Furthermore, the filing outlines that the financial statement and exhibits in compliance with the regulations were duly provided. Exhibit 3.1 includes the Certificate of Amendment to the Certificate of Incorporation while Exhibit 104 comprises the Cover Page Interactive Data File embedded within the Inline XBRL document.

In conclusion, Algorhythm Holdings, Inc. has taken progressive steps towards restructuring its financial framework with the approval of a reverse stock split and an increase in authorized shares, as detailed in the recent Form 8-K filing dated January 14, 2025. Investors and stakeholders await the impending effects of these decisions on the company’s standing in the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Singing Machine’s 8K filing here.

About Singing Machine

The Singing Machine Company, Inc, together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Europe, Asia, and Australia. It offers karaoke products under the flagship brand Singing Machine; licensed karaoke microphone products under the Carpool Karaoke brand; microphone accessories and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for Singing Machine hardware.