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Notes Payable to Related Parties

3 Months Ended

Mar. 31, 2025

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 $5,000 as of March 31, 2025 that was included as a component of accrued expenses on the Company’s condensed consolidated balance sheets. The Company incurred interest expense on these loans of $15,000 for the three months ended March 31, 2025.

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	2/1/2026	Current		10	%		50,000
Ajesh Kapoor	5/5/2023	2/1/2026	Current		10	%		50,000
Ajesh Kapoor	5/17/2023	2/1/2026	Current		10	%		165,000

Balance as of March 31, 2025							$	650,000
Balance							$	650,000

Less: current portion of notes payable to related parties								265,000

Notes payable to related parties, net of current portion							$	385,000

As of December 31, 2024, the loans described above that were issued between April 17, 2023 and Mary 17, 2023 were in default. Subsequent to December 31, 2024, the Company entered into waivers and amendments with each of the note holders who are parties to those loans to extend the maturity dates of the loans to February 1, 2026.

On February 18, 2025, the Company issued a promissory note to each of Stingray Group and Regalia Ventures in the amount of $286,000 and $472,000, respectively. A discussion of these transactions and the terms of the promissory notes is set forth herein in Note 11 – Securities Transactions.

Algorhythm Holdings, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

March 31, 2025 and 2024 (Unaudited)