Algorhythm Holdings, Inc. 8-K

What Happened
Algorhythm Holdings, Inc. filed a Form 8-K (Item 2.04) on May 7, 2026, reporting that it defaulted on a promissory note issued to SemiCab Inc. The Company issued the $1,750,000 promissory note on May 2, 2025 under an equity purchase agreement; $1,500,000 was due May 2, 2026 (the Initial Payment) and $250,000 is due November 2, 2026. The Company failed to make the Initial Payment on May 2, 2026, triggering an event of default.

Key Details

• Promissory Note principal: $1,750,000 issued to SemiCab Inc. on May 2, 2025.
• Payment schedule: $1,500,000 due May 2, 2026; $250,000 due November 2, 2026.
• Default consequence: interest on the Initial Payment rose from 6% to 8% per annum upon default; Seller may, with written notice, declare all amounts immediately due.
• Current status: as of the 8-K filing (May 7, 2026), the Seller has not accelerated the debt or pursued legal remedies.

Why It Matters
This filing shows an actual default that increases Algorhythm’s near-term cost of borrowing (higher interest) and gives the seller the contractual right to demand immediate repayment of the full balance. For investors, that raises questions about the company’s short-term liquidity and potential increased cash needs. The seller has not yet acted, but future disclosures or actions (acceleration, negotiation, or legal steps) could materially affect the company’s financial position. Investors should watch for follow-up filings and any related liquidity or financing updates.