Algorhythm Holdings, Inc. 8-K

What Happened
Algorhythm Holdings, Inc. (RIME) filed an 8‑K disclosing that it issued a $1,750,000 promissory note to SemiCab, Inc. on May 2, 2025 under an equity purchase agreement involving its subsidiary SemiCab Holdings, LLC. The note required a $1,500,000 payment on May 2, 2026 (Initial Payment) and $250,000 on November 2, 2026. After failing to make the $1.5M Initial Payment, Algorhythm and SemiCab entered a forbearance agreement on May 9, 2026 (forbearance through June 16, 2026). The parties then executed a second forbearance agreement dated June 16, 2026 extending forbearance through July 16, 2026; the June 16, 2026 forbearance is filed as Exhibit 10.1.

Key Details

• Promissory Note: $1,750,000 issued May 2, 2025 to SemiCab, Inc. under an equity purchase agreement.
• Payment schedule: $1,500,000 due May 2, 2026; $250,000 due November 2, 2026.
• Forbearances: May 9, 2026 forbearance (waiver and forbearance through June 16, 2026); June 16, 2026 forbearance (waiver and forbearance extended through July 16, 2026).
• Exhibit: Forbearance agreement dated June 16, 2026 is attached as Exhibit 10.1 to the 8‑K.

Why It Matters
The filing confirms Algorhythm missed a material debt payment and obtained temporary relief via forbearance rather than an immediate default enforcement. For investors, this highlights near‑term liquidity and contractual risk: the obligation remains outstanding and must be addressed by the forbearance expiration (July 16, 2026), otherwise the seller may resume enforcement or pursue remedies under the note or equity purchase agreement. Monitor future filings for repayment, further extensions, or other financing actions.