Algorhythm Holdings, Inc. 10-K/A

ITEM 3. LEGAL PROCEEDINGS On or about February 4, 2020 Singing Machine was named in a product liability complaint alongside Target and Energizer Brands in the state of Missouri. It is alleged by the Plaintiff, an individual, that one of Singing Machine’s karaoke products injured the plaintiff while she was operating the product from battery power. Plaintiff alleges her injury occurred when battery acid leaked from the karaoke product. The plaintiff purchased the karaoke machine at Target and operated the karaoke machine with Energizer batteries. Plaintiff is suing both Singing Machine and Energizer because she is unsure whether the karaoke product or the batteries caused the battery acid leak. The plaintiff alleges four counts of action against Singing Machine including strict product liability, negligence, breach of warranty, and failure to warn. Singing Machine has product liability insurance and the matter has been turned over the matter to insurance company’s counsel in defending the matter. The Company does not believe that the resolution of this matter is likely to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. As of August 12, 2020 management is not aware of any other legal proceedings other than matters that arise in the ordinary course of business. ITEM 4. MINE SAFETY DISCLOSURES Not applicable 13 PART II