DefaultMay 7, 2026, 04:40 PM
Algorhythm Holdings Defaults on $1.5M Promissory Note Payment
AI Summary
Algorhythm Holdings, Inc. announced it failed to make a $1.5 million initial payment on a promissory note to SemiCab Inc. due on May 2, 2026. This failure triggered an event of default, causing the interest rate on the overdue amount to increase from six percent to eight percent per annum. As a result, SemiCab Inc. now has the right to declare all outstanding amounts immediately due and payable, though they have not yet exercised this remedy.
Key Highlights
- Algorhythm Holdings defaulted on a $1,500,000 payment due May 2, 2026.
- The payment was part of a $1,750,000 promissory note issued to SemiCab Inc. on May 2, 2025.
- The initial payment was due on the first anniversary of the note's issuance.
- The remaining $250,000 on the note is due on November 2, 2026.
- The default increased the interest rate on the $1,500,000 from 6% to 8% per annum.
- SemiCab Inc. now has the right to declare all outstanding amounts immediately due and payable.
- As of May 7, 2026, SemiCab Inc. has not exercised any remedies.