Algorhythm Holdings Defaults on $1.5M Debt Payment, Faces Accelerated Obligation
RIME sits 17% above its 52-week low of $0.65.
Summary
Algorhythm Holdings, Inc. has defaulted on a $1.5 million payment for a promissory note, triggering an event of default and increasing the interest rate on the unpaid amount.
Key Events · Financing and Capital Events · RIME
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Debt Payment Default
The company failed to make a $1.5 million payment on a $1.75 million promissory note due on May 2, 2026.
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Event of Default Triggered
This failure constitutes an event of default under the promissory note, increasing the interest rate on the unpaid amount from 6% to 8% per annum.
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Risk of Accelerated Obligation
The lender (SemiCab Inc.) now has the right to declare all outstanding amounts, totaling $1.75 million, immediately due and payable.
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No Immediate Lender Action
As of the filing date, the lender has not yet exercised any remedies or sought legal action against the company.
Analysis · RIME · Technology
Algorhythm Holdings' failure to make a $1.5 million payment on a promissory note triggers an event of default, significantly increasing its financial risk. This default, representing a substantial portion of the company's market capitalization, exacerbates existing concerns about its ability to continue as a going concern and its Nasdaq listing status. While the lender has not yet demanded immediate repayment of the full $1.75 million, the potential for this action creates severe liquidity pressure and could lead to further adverse events for the company.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 47.8% of the 247 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -1.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, RIME was trading at $0.76 on NASDAQ in the Technology sector, with a market capitalization of approximately $11.1M. The 52-week trading range was $0.65 to $4.58. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.