secwatch.observer — SEC 8-K summary
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Issuer:     Algorhythm Holdings, Inc. (RIME)
CIK:        0000923601
Form:       8-K
Filed at:   2024-10-24T23:59:59+00:00
Accession:  0001493152-24-042405
Event type: debt
Sentiment:  negative
Materiality: 0.65
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Algorhythm raises $2.0M via 15% OID secured notes and 2.3M shares
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- Gross proceeds $2.0M from $2.35M principal of 90-day secured notes (15% OID) and 2.3M shares.
- Notes accrue 14% interest only upon default; secured by company assets and guaranteed by subsidiaries.
- Net proceeds will be used for working capital and general corporate purposes.
- Issued 2.3M shares, representing ~19% dilution vs. pre-offering 11.9M shares outstanding.
- Univest Securities acted as placement agent, receiving 7% of gross proceeds plus legal fee reimbursement.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/923601/000149315224042405/0001493152-24-042405-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/923601/000149315224042405/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-042405

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