Notes Payable to Related Parties

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Notes Payable to Related Parties

Note 6 – Notes Payable to Related Parties

SemiCab Holdings assumed several unsecured loans from Ajesh Kapoor and Vivek Sehgal in the acquisition of SemiCab, Inc.’s business. The Company had accrued interest payable of $6,000 as of December 31, 2024 that was included as a component of accrued expenses on the Company’s consolidated balance sheets. The Company incurred interest expense on these loans of $36,000 for the year ended December 31, 2024.

The terms of each loan are summarized in the table below:

	Issue	Maturity		Interest
Note Holder	Date	Date	Status	Rate			Principal
Ajesh Kapoor	7/10/2021	7/10/2026	Current		9	%	$	150,000
Ajesh Kapoor	8/27/2021	8/26/2026	Current		9	%		235,000
Vivek Sehgal	4/17/2023	10/13/2023	Default		10	%		50,000
Ajesh Kapoor	5/5/2023	5/4/2024	Default		10	%		50,000
Ajesh Kapoor	5/17/2023	5/16/2024	Default		10	%		165,000
Balance as of December 31, 2024							$	650,000
Less: current portion of notes payable to related parties								265,000
Notes payable to related parties, net of current portion							$	385,000

Subsequent to December 31, 2024, the Company entered into waivers and amendments with each of the note holders who are parties to the loans described above that were in default at December 31, 2024 pursuant to which the maturity dates of the loans were extended to February 1, 2026. As a result of the execution of the waivers and amendments, the Company cured the defaults that had existed at December 31, 2024 due to non-payment on the original maturity dates of the notes.

ALGORHYTHM HOLDINGS, INC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 and 2023