Form 4: Algorhythm Holdings Director Milton C. Ault III Sells Shares in Open Market Transactions

Director Milton C. Ault III reports selling shares of Algorhythm Holdings (RIME) in a series of open market transactions.

Summary

• Milton C. Ault III, a director and 10% owner of Algorhythm Holdings, Inc. (RIME), reported the sale of common stock in a series of open market transactions.
• On September 27, 2024, 2,774 shares were sold at a weighted average price of $0.5121.
• On September 30, 2024, 35,600 shares were sold at a weighted average price of $0.4949.
• On October 1, 2024, 50,380 shares were sold at a weighted average price of $0.4916.
• These sales were executed by Ault Lending, LLC, a wholly-owned subsidiary of Hyperscale Data, Inc. (HSD).
• Mr. Ault, as Executive Chairman of HSD, is deemed to have voting and investment power over the securities held by Ault Lending.
• Following these transactions, Ault Lending, LLC beneficially owns 1,364,230 shares of Algorhythm Holdings, Inc.

Sentiment

Score: 4

Explanation: Insider selling can create uncertainty, but the transactions are relatively small compared to the total shares outstanding. The sentiment is neutral to slightly negative.

Negatives

• A director selling shares could be perceived negatively by investors.

Risks

• Continued selling by insiders could put downward pressure on the stock price.

Industry Context

Insider selling is a common occurrence, and its impact can vary depending on the size and frequency of the transactions, as well as the overall market sentiment towards the company and its industry.

Stakeholder Impact

• Shareholders may react to the news of insider selling, potentially impacting the stock price.
• The impact on other stakeholders (employees, customers, suppliers, creditors) is likely minimal unless the selling signals a larger strategic shift.

Key Dates

Keywords

Algorhythm Holdings, RIME, Milton C. Ault III, Ault Lending, Hyperscale Data, Insider Trading, Share Sale, Open Market, Director, Stock