Monitor for further forbearance or default before July 16 deadline. Likely need for dilutive financing or asset sales to meet obligations. Watch for going-concern risk in next 10-Q.
Price Chart
Executive Summary
Algorhythm Holdings defaulted on a $1.5M payment due May 2, 2026 under a $1.75M promissory note issued to SemiCab, Inc. The company entered a second forbearance agreement on June 16, 2026, extending the cure period to July 16, 2026. This signals severe liquidity strain for a company with only ~$11M market cap.
Key Facts
- Company failed to pay $1.5M initial payment on $1.75M promissory note due May 2, 2026.
- Second forbearance agreement with SemiCab extends default waiver to July 16, 2026.
- Note balance: $1.5M initial + $250K final (due Nov 2, 2026).
- Market cap ~$11M, making this a material liquidity event.
Financial Impact
Default on $1.5M payment (13.6% of market cap) with $250K additional due Nov 2026; total note $1.75M.
Risk Factors
- Further default could trigger note acceleration and potential bankruptcy.
- Liquidity crunch may force distressed equity issuance, diluting existing shareholders.
- Nasdaq listing status may be at risk if financial condition deteriorates.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-029603 |
| Exhibit: ex10-1.htm | 0001493152-26-029603 |
| Document: 0001493152-26-029603-index-headers.html | 0001493152-26-029603 |
| Document: 0001493152-26-029603-index.html | 0001493152-26-029603 |
| Document: 0001493152-26-029603.txt | 0001493152-26-029603 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 6d ago | SC 13G | $0.1032 | awaiting T+60 | — | $0.1039 (+0.68%) |
Oct 7, 2026 18d ago | 3 | $0.1400 | awaiting T+60 | — | $0.1039 (−25.79%) |
Sep 21, 2026 5w ago | 8-K | $0.1835 | awaiting T+60 | — | $0.1039 (−43.38%) |
Aug 14, 2026 10w ago | Press Release | $0.3751 | awaiting T+60 | — | $0.1039 (−72.30%) |
Jun 22, 2026 18w ago | 8-K | $0.6600 $0.1950 | ▲ +70.45% | ▲ +73.70% | $0.1039 (+84.26%) |
Jun 18, 2026 18w ago | 8-K | $0.6400 $0.2173 | ▲ +66.05% | ▲ +67.79% | $0.1039 (+83.77%) |
Jun 4, 2026 20w ago | EFFECT | $0.7300 $0.2608 | ▲ +64.27% | ▲ +66.16% | $0.1039 (+85.77%) |
May 21, 2026 22w ago | 8-K | $0.7400 $0.3151 | ▼ −57.42% | ▼ −60.61% | $0.1039 (−85.96%) |
May 12, 2026 23w ago | Press Release | $0.7600 | awaiting T+60 | — | $0.1039 (−86.33%) |
May 8, 2026 24w ago | S-1/A | $0.6100 $0.4036 | ▲ +33.84% | ▲ +38.23% | $0.1039 (+82.97%) |
US Market Status
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