Planned leadership transition in connection with the Company’s previously announced evaluation of strategic alternatives and a corporate repositioning. As part of the transition, the Company dismissed Gary Atkinson as Chief Executive Officer of the Company following approximately 20 years of service to the Company. Mr. Atkinson also resigned from the Company’s Board of Directors.

The leadership transition occurred in connection with the completion of a corporate transaction that resulted in the appointment of a new Chief Executive Officer, additional members of the Board of Directors and a significant change in the Company’s operating focus.

"I want to take this opportunity to thank the many employees, business partners, customers and shareholders who have supported the Company throughout my time here," said Gary Atkinson. "I am proud of what our team has accomplished together and believe we have positioned Algorhythm for an exciting new chapter."

"This transition was part of a deliberate process by the Company to position itself for its next phase of growth," continued Atkinson. "I am excited about the opportunities being pursued by the Company and believe the new leadership team brings a compelling vision for its future. As a continuing shareholder, I look forward to watching that strategy take shape in the coming weeks and months."

The Company’s Board of Directors has been evaluating strategic alternatives designed to strengthen the Company’s financial and operating profile and enhance long-term shareholder value. As part of that process, the Company was evaluating an proposed acquisition involving a high-growth, revenue-generating, EBITDA-positive business operating in the energy space.

The Company will provide additional information in the near future regarding the transaction, new leadership team and future strategic direction of the Company.