Algorhythm Holdings (RIME) Ends Settlement Agreement with Continuation Capital

What Happened

• On September 21, 2026, Algorhythm Holdings, Inc. (RIME) and Continuation Capital, Inc. (CCI) agreed to terminate the Settlement Agreement dated July 21, 2026. Under that agreement the Company had agreed to issue CCI up to 5,000,000 shares of common stock until CCI generated aggregate proceeds equal to 120% of an acquired claim.
• The Termination ends Algorhythm’s further obligation to issue any additional shares to CCI under the Settlement Agreement. The original claim amount was $1,928,014; the Company estimates approximately $1,418,649 of that claim amount remains outstanding.
• Separately, on September 22, 2026, the Company furnished an updated corporate/investor presentation (Exhibit 99.1) it intends to use with investors and post on its website.

Key Details

• Original claim amount acquired by CCI: $1,928,014.
• Potential share issuance under the Settlement Agreement: up to 5,000,000 common shares.
• Company estimate of remaining balance on liabilities covered by the agreement: ~$1,418,649.
• Termination date: September 21, 2026; investor presentation furnished: September 22, 2026.

Why It Matters

• Ending the Settlement Agreement removes the Company’s obligation to issue up to 5 million shares to CCI, which eliminates a specific future source of potential dilution tied to that agreement.
• However, the filing shows roughly $1.42 million of the original claim remains outstanding, so related liabilities have not been fully resolved and could still affect the company’s balance sheet or cash needs.
• The furnished investor presentation is an update for the market and reflects the company’s communications with investors; the presentation is furnished (not “filed”) and therefore is not subject to certain Exchange Act liabilities.