0001493152-26-021727
SEC filingAlgorhythm Holdings failed to make a $1.5M payment on a promissory note, triggering a default and increased interest rate.
On May 2, 2025, Algorhythm Holdings issued a $1.75 million promissory note to SemiCab Inc. in connection with an equity purchase agreement. The note required a $1.5 million payment on May 2, 2026, and a $250,000 payment on November 2, 2026. The company failed to make the initial payment, triggering an event of default. As a result, the interest rate on the defaulted amount increased from 6% to 8% per annum. The seller has the right to declare all outstanding amounts immediately due and payable upon written notice, but as of the filing date, no remedies have been exercised. This default indicates potential liquidity issues and may lead to accelerated repayment demands, increasing financial pressure on the company.