---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-25-029389"
form_type: "8-K"
ticker: "RIME"
cik: "0000923601"
company_name: "Algorhythm Holdings, Inc."
filed_at: "2025-12-29T23:59:59+00:00"
generated_at: "2026-05-16T12:12:57.256351+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001493152-25-029389
- form_type: 8-K
- ticker: RIME
- cik: 0000923601
- company_name: Algorhythm Holdings, Inc.
- filed_at: 2025-12-29T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/923601/000149315225029389/0001493152-25-029389-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/923601/000149315225029389/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-25-029389
- JSON: https://secwatch.observer/filing/0001493152-25-029389.json
- Plain text: https://secwatch.observer/filing/0001493152-25-029389.txt

## Key facts
- Debt Financings
  Algorhythm Holdings, Inc. incurred debt of $1,090,000 with Streeterville Capital, LLC at nine percent (9%) per annum maturing three years.
  - Principal: $1,090,000
  - Counterparty: Streeterville Capital, LLC
  - Rate: nine percent (9%) per annum
  - Maturity: three years
  - Event: incurrence
  source text: Secured Pre-Paid Purchase #3 provides for a third Pre-Paid Purchase in the principal amount of $1,090,000, before deducting an original issue discount of $90,000 (the "Third Pre-Paid Purchase"). The Third Pre-Paid Purchase accrues interest at the rate of nine percent (9%) per annum and has a maturity date of three years.
  evidence_url: https://www.sec.gov/Archives/edgar/data/923601/000149315225029389/0001493152-25-029389-index.htm
- Equity Issuances
  Algorhythm Holdings, Inc. issued common stock to Streeterville Capital, LLC for principal amount of $1,090,000, before deducting an original issue discount of $90,000.
  - Security: common stock
  - Purchaser: Streeterville Capital, LLC
  - Consideration: principal amount of $1,090,000, before deducting an original issue discount of $90,000
  source text: the Company agreed to issue and sell shares of its common stock to Streeterville in one or more pre-paid purchases (each, a “Pre-Paid Purchase” and collectively, the “Pre-Paid Purchases”) for an aggregate purchase price of up to $20,000,000. Secured Pre-Paid Purchase #3 provides for a third Pre-Paid Purchase in the principal amount of $1,090,000, before deducting an original issue discount of $90,000
  evidence_url: https://www.sec.gov/Archives/edgar/data/923601/000149315225029389/0001493152-25-029389-index.htm
- Material Agreements
  Algorhythm Holdings, Inc. entered into Secured Pre-Paid Purchase #3 with Streeterville Capital, LLC valued at $1,090,000 (effective 2025-12-19).
  - Action: entry
  - Counterparty: Streeterville Capital, LLC
  - Value: $1,090,000
  - Effective: 2025-12-19
  source text: On December 19, 2025, Algorhythm Holdings, Inc. (the “Company”) entered into Secured Pre-Paid Purchase #3 with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”)
  evidence_url: https://www.sec.gov/Archives/edgar/data/923601/000149315225029389/0001493152-25-029389-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.