Algorhythm Holdings Secures Forbearance on $1.5M Promissory Note Default
RIME is trading near its 52-week low of $0.564 (2.8% above the low) on light trading volume (0.2× avg).
Summary
Algorhythm Holdings secured a forbearance agreement until June 16, 2026, for its $1.5 million promissory note default, temporarily avoiding immediate enforcement actions.
Key Events · Legal and Risk Events · RIME
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Forbearance Agreement Reached
The company entered into a forbearance agreement with SemiCab Inc. regarding a $1.5 million promissory note payment that was due on May 2, 2026, and was not made.
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Default Waived Temporarily
SemiCab Inc. has irrevocably waived the default for the missed May 2, 2026 payment and will forbear from taking action until June 16, 2026.
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Ongoing Financial Distress
This temporary relief comes amidst a going concern warning and recent disclosures of Nasdaq delisting threats, highlighting the company's precarious financial position.
Analysis · RIME · Technology
This filing provides a temporary reprieve for Algorhythm Holdings after its recent default on a $1.5 million promissory note payment. The forbearance agreement prevents the noteholder from taking immediate action until June 16, 2026, buying the company critical time to address its financial obligations. However, it does not resolve the underlying financial distress, which includes a going concern warning and ongoing Nasdaq delisting threats, with the stock trading near its 52-week low.
How filings like this one have moved
In the 30 days to Sep 15, 2026, 35.6% of the 1100 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. 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 $0.58 on NASDAQ in the Technology sector, with a market capitalization of approximately $9M. The 52-week trading range was $0.56 to $4.58. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.