secwatch.observer — SEC 8-K summary
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Issuer:     Algorhythm Holdings, Inc. (RIME)
CIK:        0000923601
Form:       8-K
Filed at:   2026-02-23T23:59:59+00:00
Accession:  0001493152-26-007763
Event type: debt
Sentiment:  negative
Materiality: 0.80
Item codes: 1.01, 2.03, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/0001493152-26-007763-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/923601/000149315226007763/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-26-007763

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