Algorhythm Holdings secures $1.09M debt from Streeterville Capital with 9% interest and equity conversion at 90% of VWAP

Algorhythm Holdings, Inc.

• Secured Pre-Paid Purchase #3 with principal $1,090,000, including $90,000 original issue discount; net proceeds $1,000,000.
• Interest 9% per annum; maturity 3 years from December 19, 2025; prepayment allowed at 110% of outstanding balance.
• Streeterville can convert principal into common shares at 90% of lowest 10-day VWAP, subject to 9.99% ownership cap.
• Placement agent Univest Securities received 8% cash fee on gross proceeds; offering exempt under Section 4(a)(2).
• Debt is secured by guarantees, pledges, security agreements, and IP security agreement from prior August 2025 purchase agreement.