Algorhythm Holdings prepays $2M under financing deal

Available on EDGAR 11/12/2026 - 04:42 PM EST Accepted by SEC EDGAR 11/12/2026 - 04:42 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Algorhythm Holdings, Inc. made a voluntary $2,000,000 prepayment against Secured Pre-Paid Purchase #4 on November 10, 2026, using restricted cash. The aggregate balance of all outstanding Pre-Paid Purchases under the agreement fell from $10,137,461 to $8,137,461.

Streeterville Capital agreed to waive the 110% prepayment premium otherwise payable. Purchase #4 had a principal amount of $10,355,000 before an original issue discount of $855,000; the agreement provides for aggregate purchase prices of up to $20,000,000.

1 point · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 0 points

How the balance works

Positive

• Major pointOutstanding Pre-Paid Purchase balances fell by $2,000,000. 65% of market cap

Negative

• None.

Filing Explained

The underlying agreement is also a common-share sale arrangement: Algorhythm agreed to issue and sell shares to Streeterville through prepaid purchases, but this filing gives no share count tied to the November 10 prepayment, so dilution from that payment cannot be sized.

8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Key Figures

Prepayment: $2,000,000 Outstanding Pre-Paid Purchase balance before prepayment: $10,137,461 Outstanding Pre-Paid Purchase balance after prepayment: $8,137,461 +3 more

6 metrics

Prepayment $2,000,000 Voluntary payment against PPP #4 on November 10, 2026, from restricted cash

Outstanding Pre-Paid Purchase balance before prepayment $10,137,461 Aggregate balance before the November 10, 2026 prepayment

Outstanding Pre-Paid Purchase balance after prepayment $8,137,461 Aggregate balance after the November 10, 2026 prepayment

PPP #4 principal amount $10,355,000 Before deducting the original issue discount

Original issue discount $855,000 Deducted from PPP #4 principal amount

Aggregate purchase price limit Up to $20,000,000 Pre-Paid Purchases under the Securities Purchase Agreement

Key Terms

restricted cash, original issue discount, prepayment premium, Pre-Paid Purchase

4 terms

restricted cash financial

"a voluntary prepayment of $2,000,000 out of restricted cash"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

original issue discount financial

"before deducting an original issue discount of $855,000"

Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.

prepayment premium financial

"waive the 110% prepayment premium otherwise payable"

A prepayment premium is a fee a borrower pays when they pay off a loan or debt earlier than agreed, like an early-termination charge on a phone contract. For investors, it affects the timing and amount of cash they receive from loans or mortgage-backed securities, changing expected returns and reinvestment plans because early repayment can return principal sooner or come with extra compensation.

Pre-Paid Purchase financial

"a fourth Pre-Paid Purchase in the principal amount"

A pre-paid purchase is when payment is made before the product or service is delivered, like buying a concert ticket or putting money on a gift card. For investors, pre-payments matter because they change a company’s cash flow and balance sheet: the seller gets cash up front but records an obligation to deliver later, which affects when revenue is recognized and how future profits and working capital look.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did RIME prepay against PPP #4?

Algorhythm Holdings prepaid $2,000,000 from restricted cash against PPP #4 on November 10, 2026. The aggregate balance of all outstanding Pre-Paid Purchases under the agreement fell from $10,137,461 to $8,137,461.

Did Streeterville waive a prepayment premium on RIME’s PPP #4?

Yes. Streeterville Capital agreed to waive the 110% prepayment premium otherwise payable in connection with Algorhythm Holdings’ $2,000,000 prepayment.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 10, 2026

ALGORHYTHM HOLDINGS, INC.

(Exact Name of Registrant as Specified in Charter)

Delaware		001-41405		95-3795478
(State or Other Jurisdiction		(Commission		(IRS Employer
of Incorporation)		File Number)		Identification No.)

800 Corporate Drive, Suite 216
Fort Lauderdale, FL		33334
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (954) 800-0425

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		RIME		The Nasdaq Stock Market LLC (The Nasdaq Capital Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events.

On February 17, 2026, Algorhythm Holdings, Inc. (the “Company”) entered into Secured Pre-Paid Purchase #4 (“PPP #4”) with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”), under that certain securities purchase agreement (the “Securities Purchase Agreement”), dated August 21, 2025, between the Company and Streeterville. Under the Securities Purchase Agreement, the Company agreed to issue and sell shares of its common stock to Streeterville in one or more pre-paid purchases (each, a “Pre-Paid Purchase” and collectively, the “Pre-Paid Purchases”) for an aggregate purchase price of up to $20,000,000. PPP #4 provided for a fourth Pre-Paid Purchase in the principal amount of $10,355,000, before deducting an original issue discount of $855,000.

On November 10, 2026, the Company made a voluntary prepayment of $2,000,000 (the “Prepayment”) out of restricted cash against PPP #4. Streeterville agreed to waive the 110% prepayment premium otherwise payable by the Company in connection with the Prepayment. Following the Prepayment, the aggregate balance of all of the outstanding Pre-Paid Purchases under the Securities Purchase Agreement was reduced from $10,137,461 to $8,137,461.

The foregoing descriptions of the Securities Purchase Agreement and PPP #4 do not purport to be complete and are qualified in their entirety by reference to the full text of those documents, which were previously filed with the Securities and Exchange Commission as Exhibits 10.1 and 10.2 to the Company’s Current Report on Form 8-K filed on February 23, 2026.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 12, 2026	ALGORHYTHM HOLDINGS, INC.
	By:	/s/ Gregory D. Smith
	Name:	Gregory D. Smith
	Title:	Chief Executive Officer

Filing Exhibits & Attachments

3 documents

Other Documents

• EX-101 XBRL SCHEMA FILE 3.0 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB