---
schema_version: "secwatch.filing_event.v1"
accession: "0001641172-25-025707"
form_type: "8-K"
ticker: "RIME"
cik: "0000923601"
company_name: "Algorhythm Holdings, Inc."
filed_at: "2025-08-27T23:59:59+00:00"
generated_at: "2026-05-17T09:52:45.811507+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Algorhythm enters $20M prepaid purchase with Streeterville; director Kling resigns

## Summary
- Entered up to $20M prepaid purchase agreement with Streeterville; initial $4.39M at 9%, 3-yr maturity.
- Net proceeds ~$4M after $360K OID and $30K expenses; used for working capital.
- Issued 95,694 commitment shares; resale registration due within 30 days.
- Additional purchases up to $3M outstanding, 9% OID; floor price at greater of 20% Nasdaq minimum or $0.10.
- Director Joseph Kling resigned from board effective Aug 21, no disagreement.

## SEC filing metadata
- accession: 0001641172-25-025707
- form_type: 8-K
- ticker: RIME
- cik: 0000923601
- company_name: Algorhythm Holdings, Inc.
- filed_at: 2025-08-27T23:59:59+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, 5.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/923601/000164117225025707/0001641172-25-025707-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/923601/000164117225025707/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001641172-25-025707
- JSON: https://secwatch.observer/filing/0001641172-25-025707.json
- Plain text: https://secwatch.observer/filing/0001641172-25-025707.txt

## Key facts
- Debt Financings
  Algorhythm Holdings, Inc. incurred debt of $4,390,000 with Streeterville Capital, LLC at nine percent (9%) per annum maturing three years.
  - Principal: $4,390,000
  - Counterparty: Streeterville Capital, LLC
  - Rate: nine percent (9%) per annum
  - Maturity: three years
  - Event: incurrence
  source text: The Securities Purchase Agreement provides for an initial Pre-Paid Purchase in the principal amount of $4,390,000, before deducting an original issue discount of $360,000 and transaction expenses of $30,000 (the "Initial Pre-Paid Purchase"), the terms of which are set forth on secured prepaid purchase #1 ("Secured Pre-Paid Purchase #1"). The Initial 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/923601/000164117225025707/0001641172-25-025707-index.htm

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