Business Context and Reporting Period
Company: Algorhythm Holdings, Inc. (Nasdaq Symbol: RIME)
Filing Type: Form 8-K (Current Report)
Date of Report: June 16, 2026
Reporting Period: The filing addresses a specific event occurring on June 16, 2026, regarding the Company's stock listing status on The Nasdaq Capital Market.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The report focuses exclusively on regulatory compliance regarding stock listing standards.
Material Changes
- Listing Deficiency: The Company received a Notification Letter from Nasdaq stating it no longer meets the minimum bid price requirement of $1.00 per share under Nasdaq Listing Rule 5550(a)(2).
- Trigger Event: The deficiency was based on the closing bid price of the Company's common stock for the 30 consecutive business days from May 4, 2026, to June 15, 2026.
- Trading Status: The notification has no immediate effect on the listing or trading of the Company's common stock; trading continues under the symbol "RIME."
Guidance, Outlook, and Risks
- Compliance Period: The Company has an initial 180-calendar-day compliance period ending December 14, 2026, to regain compliance.
- Remediation Criteria: Compliance is achieved if the closing bid price is at least $1.00 per share for a minimum of ten consecutive business days during the compliance period.
- Secondary Compliance Period: If the initial period is unsuccessful, the Company may be eligible for an additional 180-day period, provided it meets other listing standards (e.g., market value of publicly held shares) and notifies Nasdaq of its intent to cure, potentially via a reverse stock split.
- Risks: There is no assurance the Company will regain compliance or maintain other listing requirements. Failure to cure the deficiency may result in delisting.
- Management Action: The Company intends to actively monitor the stock price and consider options, including a reverse stock split, to regain compliance.
Investor Verification Checklist
- Verify the current closing bid price of RIME stock to assess proximity to the $1.00 threshold.
- Monitor future 8-K filings for announcements regarding a reverse stock split or other capital structure changes.
- Check for any subsequent Nasdaq communications regarding the extension of the compliance period or delisting notices.
- Review the Company's market value of publicly held shares to ensure eligibility for a second compliance period if needed.