{"schema_version":"secwatch.filing_event.v1","accession":"0001493152-26-007763","form_type":"8-K","ticker":"RIME","cik":"0000923601","company_name":"Algorhythm Holdings, Inc.","filed_at":"2026-02-23T23:59:59+00:00","discovered_at":"2026-05-14T18:02:38.064355+00:00","generated_at":"2026-05-16T01:21:20.298380+00:00","sec_items":["1.01","2.03","3.02","9.01"],"event_type":"debt","sentiment":"negative","materiality_score":0.8,"calibrated_materiality_score":0.8,"confidence":"high","headline":"Algorhythm Holdings enters $10.355M secured prepaid purchase with Streeterville Capital","bullets":["Principal amount $10.355M with $855K original issue discount; net proceeds $9.5M; $3.5M placed in restricted deposit account as collateral.","Interest at 9% per annum, maturity 3 years; prepayment permitted at 110% of outstanding balance with 10 trading days notice.","Streeterville may convert portions of outstanding balance into common shares at its discretion, subject to 9.99% ownership cap and floor price.","Note secured by cash in DACA account, security agreement, IP security agreement, and guaranty from subsidiary RIME Holdings.","Univest Securities received 8% cash fee on $6M proceeds not placed in DACA account; additional 8% fee on DACA funds when released to company."],"urls":{"canonical":"https://secwatch.observer/filing/0001493152-26-007763","json":"https://secwatch.observer/filing/0001493152-26-007763.json","markdown":"https://secwatch.observer/filing/0001493152-26-007763.md","text":"https://secwatch.observer/filing/0001493152-26-007763.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/0001493152-26-007763-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/form8-k.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-05-16T01:21:20.298380+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"b0ab6f7830c0593b095d34d4e3d62676868be338","claim":"Algorhythm Holdings, Inc. incurred loan of $10,355,000 with Streeterville Capital, LLC at 9% per annum maturing three years.","evidence_excerpt":"Secured Pre-Paid Purchase #4 provides for a fourth Pre-Paid Purchase in the principal amount of $10,355,000, before deducting an original issue discount of $855,000 (the “Fourth Pre-Paid Purchase”). The Fourth Pre-Paid Purchase accrues interest at the rate of nine percent (9%) per annum and has a maturity date of three years.","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/0001493152-26-007763-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"loan"},{"label":"Principal","value":"$10,355,000"},{"label":"Counterparty","value":"Streeterville Capital, LLC"},{"label":"Rate","value":"9% per annum"},{"label":"Maturity","value":"three years"},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"},{"claim_id":"49ab3b2820451b476e8280470848eb78c679d16c","claim":"Algorhythm Holdings, Inc. entered into Secured Pre-Paid Purchase #4 with Streeterville Capital, LLC valued at $10,355,000 (effective 2026-02-17).","evidence_excerpt":"On February 17, 2026, Algorhythm Holdings, Inc. (the “Company”) entered into Secured Pre-Paid Purchase #4 with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”), under that certain securities purchase agreement (the “Securities Purchase Agreement”), dated August 21, 2025, between the Company and Streeterville.","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/0001493152-26-007763-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"equity purchase"},{"label":"Counterparty","value":"Streeterville Capital, LLC"},{"label":"Value","value":"$10,355,000"},{"label":"Effective","value":"2026-02-17"}],"fact_type":"material_agreement"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}