---
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"
generated_at: "2026-05-16T01:21:20.298380+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Algorhythm Holdings enters $10.355M secured prepaid purchase with Streeterville Capital

## Summary
- 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.

## SEC filing metadata
- 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
- event_type: debt
- sentiment: negative
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-26-007763
- JSON: https://secwatch.observer/filing/0001493152-26-007763.json
- Plain text: https://secwatch.observer/filing/0001493152-26-007763.txt

## Key facts
- Debt Financings
  Algorhythm Holdings, Inc. incurred loan of $10,355,000 with Streeterville Capital, LLC at 9% per annum maturing three years.
  - Instrument: loan
  - Principal: $10,355,000
  - Counterparty: Streeterville Capital, LLC
  - Rate: 9% per annum
  - Maturity: three years
  - Event: incurrence
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/0001493152-26-007763-index.htm
- Material Agreements
  Algorhythm Holdings, Inc. entered into Secured Pre-Paid Purchase #4 with Streeterville Capital, LLC valued at $10,355,000 (effective 2026-02-17).
  - Action: entry
  - Agreement: equity purchase
  - Counterparty: Streeterville Capital, LLC
  - Value: $10,355,000
  - Effective: 2026-02-17
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/0001493152-26-007763-index.htm

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