Algorhythm Holdings, Inc. (RIME): debt financing — Algorhythm Holdings defaults on $1.5M note payment; interest rate rises from 6% to 8%

Algorhythm Holdings, Inc.

Failed to make $1.5M initial payment due May 2, 2026 on a $1.75M promissory note to SemiCab Inc.
Default triggered; interest rate on the overdue amount increased from 6% to 8% per annum.
Seller may declare all outstanding amounts immediately due and payable upon written notice.
As of May 7, 2026, SemiCab has not exercised any remedies under the note.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Algorhythm Holdings, Inc. reported a default on loan of $1,750,000 with SemiCab Inc. at six percent per annum maturing May 2, 2026.

Instrument: loan
Principal: $1,750,000
Counterparty: SemiCab Inc.
Rate: six percent per annum
Maturity: May 2, 2026
Event: default

Exact text from the filing

Obligation or an Obligation under an Off-Balance Sheet Arrangement. On May 2, 2025, Algorhythm Holdings, Inc. (the “Company”) issued a promissory note in the principal amount of $1,750,000 (the “Promissory Note”) to SemiCab Inc., a Delaware corporation (the “Seller”), pursuant to an equity purchase agreement (the “Equity Purchase Agreement”) among the Company and

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Algorhythm Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001493152-26-021727

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