Highly-accomplished leaders bring proven expertise in growth, innovation, and AI-driven transformation to support company’s next phase of expansion Fort Lauderdale, FL, Oct. 07, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), a leading AI technology company, today announced the appointment of Scott Thorn and Kapil Gupta to its Board of Directors. Their combined experience in scaling high-growth companies, guiding operational transformation, and driving adoption of cutting-e ...

Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Society Pass Incorporated (SOPA) has increased by 139% to $3.34 - Critical Metals Corp. (CRML) has risen by 79% to $14.30 - Sanmina Corporation (SANM) is up 26% at $144.61 - Palisade Bio, Inc. (PALI) has gained 25% to $2.00 - Advanced Micro Devices, Inc. (AMD) has increased by 24% to $205.07 - Odyssey Marine Exploration, Inc. (OMEX) is up 22% at $2.46 - Youxin Technology Ltd (YAAS) has risen by 21% to $3.14 - NioCorp Developments Ltd. (NB) is up 18% at $9.38 - Snow Lake Resources Ltd. (LITM) has increased by 14% to $5.66 - Plug Power Inc. (PLUG) is up 7% at $4.10 [3] Premarket Losers - Rich Sparkle Holdings Limited (ANPA) has decreased by 15% to $22.10 - CCH Holdings Ltd Ordinary Shares (CCHH) is down 15% at $3.73 - Xcel Brands, Inc. (XELB) has fallen by 14% to $2.04 - Quantum Computing Inc. (QUBT) is down 13% at $21.39 - Rent the Runway, Inc. (RENT) has decreased by 12% to $4.70 - MDJM Ltd (UOKA) is down 11% at $2.96 - CID HoldCo, Inc. (DAIC) has fallen by 9% to $2.72 - Algorhythm Holdings, Inc. (RIME) is down 9% at $2.47 - Corbus Pharmaceuticals Holdings, Inc. (CRBP) has decreased by 8% to $13.50 - Art's-Way Manufacturing Co., Inc. (ARTW) is down 7% at $2.58 [4]

Core Insights - Algorhythm Holdings, Inc.'s subsidiary, SemiCab Holdings, LLC, won the Best Value Award at LogiMeet 2025, a prestigious event in the fast-moving consumer packaged goods industry [2][3] - The award reflects the effectiveness of SemiCab's AI-enabled Collaborative Transportation Platform, which has expanded its service scope by over 500% since 2023 [3] Company Overview - Algorhythm Holdings, Inc. focuses on AI technology and the development of SemiCab, which addresses global supply-chain challenges for major retailers, brands, and transportation providers [5] - SemiCab's platform utilizes real-time data and advanced predictive optimization models to enhance logistics efficiency, allowing shippers to reduce costs while increasing carrier earnings [5]

Company Overview - Algorhythm Holdings, Inc. is an AI technology holding company focused on the growth and development of its subsidiary, SemiCab, which is emerging as a leader in the global logistics and distribution industry [5] - SemiCab's AI-enabled, cloud-based Collaborative Transportation Platform addresses common supply-chain problems globally, enabling major retailers, brands, and transportation providers to optimize millions of loads and hundreds of thousands of trucks [5] Leadership Appointment - SemiCab Solutions Private Limited has appointed Vasudha Khurana as VP of Brand and Communications, who will lead the development of the brand, marketing strategies, and global go-to-market initiatives for multiple product launches [1][4] - Khurana has over 12 years of marketing and business experience, including significant roles at Google, Unilever, and PhonePe, where she helped grow the user base from 250 million to 500 million [2] Strategic Importance - The CEO of SemiCab, Ajesh Kapoor, emphasized that Khurana's expertise in brand storytelling and international marketing will be crucial for scaling SemiCab into a leading global freight technology platform [4] - The company aims to maximize truck utilization and expand its customer base, with Khurana's leadership expected to enhance client engagement and thought leadership in truckload optimization technology [4]

Core Insights - Algorhythm Holdings, Inc. announced that its subsidiary, SemiCab India, secured a supply chain finance receivables facility with Bank of America, providing access to low-cost, non-dilutive working capital [2][3] Group 1: Financial Facility Details - The facility allows SemiCab India to accelerate payment on eligible accounts receivable for services provided to its three largest global customers, which are major multinational FMCG and automotive companies in India [3] - The financing arrangement is non-dilutive, with a cost of 1% above the Indian one-year Treasury Bill rate, currently around 5.6% [3] Group 2: Strategic Importance and Growth Plans - The CEO of Algorhythm emphasized the strategic partnership's significance and the quality of capital available to SemiCab, enabling faster scaling without heavy reliance on equity financing [4] - The recent $4.4 million financing, combined with the new facility, positions the company well for growth into 2026, with plans to expand client-driven financing solutions [4] Group 3: Company Overview - Algorhythm Holdings focuses on the growth of SemiCab, which addresses global supply chain challenges through its AI-enabled, cloud-based Collaborative Transportation Platform [5] - SemiCab's platform utilizes real-time data and advanced predictive optimization models to enhance logistics efficiency, benefiting both shippers and carriers [5]

Company Overview - Algorhythm Holdings, Inc. is an AI technology holding company focused on providing AI-powered transportation solutions through its primary business unit, SemiCab [4] - SemiCab aims to optimize truck utilization, reduce empty miles, and deliver measurable efficiencies for clients in the U.S. and India [4] Business Model and Technology - SemiCab's Collaborative Transportation Platform is AI-enabled and cloud-based, designed to predict and optimize millions of loads and hundreds of thousands of trucks [5] - The platform utilizes real-time data from API-based load tendering and integrates with TMS and ELD partners to enhance collaboration among manufacturers, retailers, distributors, and carriers [5] - The AI platform allows shippers to pay less while enabling carriers to earn more without requiring operational changes [5] Upcoming Events - Gary Atkinson, the CEO of Algorhythm Holdings, will participate in the H.C. Wainwright 27th Annual Global Investment Conference from September 8–10, 2025, in New York City [1] - A presentation by Mr. Atkinson will be available via webcast for conference attendees, with on-demand access starting September 5 at 7:00 AM ET [2] - One-on-one meetings with Mr. Atkinson can be scheduled by registered conference attendees through the conference scheduling platform [3]

Core Insights - Algorhythm Holdings, Inc. has signed a master service agreement with Bajaj Electricals, a leading electronics manufacturer in India, with annual sales exceeding $560 million [1] - The agreement involves Algorhythm's subsidiary, SemiCab Holdings, providing AI-powered shipping services aimed at reducing costs and improving delivery accuracy across multiple metropolitan markets in India [2][3] - This partnership marks a significant milestone for SemiCab, as it is one of the first client mandates that bypasses the pilot phase, allowing for a quicker ramp-up and larger market share acquisition [3] Company Overview - Bajaj Electricals, founded in 1938 and based in Mumbai, is a diversified manufacturer of consumer electrical appliances, employing over 2,500 people and operating 19 offices in India [4] - The company has a wide distribution network, selling products through over 400,000 retail locations and is publicly traded on the Bombay Stock Exchange and National Stock Exchange of India [4] - Algorhythm Holdings focuses on AI technology and the development of SemiCab, which addresses supply chain challenges through its AI-enabled Collaborative Transportation Platform [5] Technology and Services - SemiCab's platform utilizes real-time data and advanced predictive optimization models to enhance logistics efficiency, enabling fully loaded round trips for shippers and carriers [5] - The AI-powered software aims to reduce service costs, improve delivery accuracy, and eliminate empty miles in transportation [2][5] - The partnership with Bajaj Electricals is expected to enhance SemiCab's ability to attract more clients in the rapidly growing Indian market [3]

Financial Data and Key Metrics Changes - Sales for the three months ended June 30, 2025, increased to $2,700,000 from $2,400,000 for the corresponding period last year, primarily due to the addition of SemiCap India [13] - Gross profit for the same period increased to $954,000 from $324,000, with gross margin rising to 35% from 13% [14] - Net loss for the three months ended June 30 decreased to $809,000 from $6,200,000 for the comparable period last year [16] Business Line Data and Key Metrics Changes - The Singing Machine business accounted for $1,500,000 of sales, while the SemiCap business accounted for $1,200,000 [13] - SemiCap's revenue run rate has tripled to more than $7,000,000 since January 2025, with expectations to generate between $2,000,000 and $2,500,000 in the third quarter [14] - Fleet expansion increased from 140 to 450 trucks, increasing the annualized revenue run rate to approximately $23,000,000 [8] Market Data and Key Metrics Changes - SemiCap secured five new contracts with major fast-moving consumer goods companies in India [7] - Four existing clients expanded their geographic lanes and volume by over 100%, with some cases upwards of 200% [8] - The average annualized revenue run rate increased by almost 300% to approximately $7,000,000 [8] Company Strategy and Development Direction - The strategic sale of the Singing Machine business was aimed at reducing cash burn and reallocating resources to the high-growth SemiCap business [5][17] - The company is focusing on scaling SemiCap aggressively, which operates in a massive addressable market with significant growth potential [6] - The company plans to invest in the growth and development of SemiCap while expecting a reduction in general and administrative expenses due to the sale of Singing Machine [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in SemiCap's growth trajectory, anticipating continued contract wins and geographic expansion [18] - The company does not foresee tariffs impacting the SemiCap business, as it is not directly exposed to tariffs like the Singing Machine business was [26][28] - Management indicated that the focus on SemiCap will allow for better capital allocation and operational efficiency [43] Other Important Information - The Singing Machine sale generated $4,500,000 in total consideration, reducing liabilities by approximately $4,000,000 [5] - The company is in the process of establishing a factoring facility in India to address working capital needs [37] Q&A Session Summary Question: Guidance on profit margins and operating expenses for Q4 - Management anticipates total operating expenses to decrease significantly due to the sale of Singing Machine, with margins expected to be in the range of 5% to 10% for SemiCap [22][24] Question: Impact of tariffs on SemiCap business - Management clarified that SemiCap is not exposed to tariffs as it does not import physical products, and they expect continued demand from large multinational customers [26][28] Question: Plans for raising capital for SemiCap growth - Management acknowledged the need for additional working capital to fund SemiCap's growth, indicating that equity sales may be part of the strategy [34][36] Question: Customer expansion and growth opportunities - Management highlighted strong demand from existing customers and potential new customer acquisitions, with plans for geographic expansion beyond India [48][49] Question: Distinction between SemiCap and digital freight brokers - Management emphasized that SemiCap is not just a digital freight broker but a platform designed to optimize truck utilization and reduce empty miles, addressing a significant issue in the transportation industry [55][57]

Core Insights - Algorhythm Holdings, Inc. reported significant operational and financial improvements in Q2 2025, transitioning into a high-growth AI technology company focused on logistics and distribution [3][4]. Financial Highlights - Revenue for Q2 2025 increased to $2.7 million, up from $2.4 million in Q2 2024, primarily due to the acquisition of SemiCab India [4][5]. - Gross profit margin improved to 35.1% in Q2 2025 from 13.3% in the same period last year, with gross profit reaching approximately $1.0 million [5]. - Total operating expenses decreased by $4.8 million to $1.7 million in Q2 2025 compared to $6.5 million in Q2 2024 [5]. - Net loss decreased to $0.8 million in Q2 2025 from $6.1 million in the same period last year, reflecting a $3.9 million reduction in operating lease impairment and lower general and administrative expenses [5][6]. Business Developments - The acquisition of SemiCab India and the sale of the Singing Machine business have transformed Algorhythm into a technology-focused company, significantly reducing cash burn and strengthening the balance sheet [3]. - SemiCab's business has seen a nearly 300% growth in annualized revenue run rate, increasing from approximately $2 million in January to over $7 million [3]. - The fleet size of SemiCab increased from 140 to 450 trucks, with plans to expand to over 1,000 vehicles by the end of 2025 to meet growing demand [5]. Strategic Contracts - SemiCab secured five new contracts with leading multinational fast-moving consumer goods (FMCG) companies in India, expanding its presence in the high-growth logistics market [5]. - Existing contracts were expanded, with lanes and volumes increasing by 100% to 200%, indicating significant revenue growth potential [5].

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides comprehensive financial information, including statements, notes, management's discussion, market risk, and controls [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, liquidity, accounting policies, segment information, and recent transactions like the SMCB acquisition [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20%28Unaudited%29%20and%20December%2031%2C%202024) The balance sheet shows a decrease in total assets from $18.302 million at Dec 31, 2024, to $12.695 million at June 30, 2025. Total liabilities also significantly decreased from $28.823 million to $9.885 million, primarily due to the reclassification of warrant liability to equity. Shareholders' equity shifted from a deficit of $(10.521) million to a positive $2.810 million Condensed Consolidated Balance Sheets (USD) | Metric | Dec 31, 2024 (USD) | Jun 30, 2025 (USD) | Change (USD) | | :-------------------------------- | :----------------- | :----------------- | :------------- | | Total Assets | 18,302,000 | 12,695,000 | (5,607,000) | | Total Liabilities | 28,823,000 | 9,885,000 | (18,938,000) | | Total Shareholders' Equity (Deficit) | (10,521,000) | 2,810,000 | 13,331,000 | | Cash | 7,550,000 | 1,134,000 | (6,416,000) | | Warrant liability | 16,603,000 | - | (16,603,000) | | Goodwill | 786,000 | 4,418,000 | 3,632,000 | - **Significant decrease** in total liabilities primarily due to the reclassification of warrant liability to additional paid-in capital[8](index=8&type=chunk) - Goodwill **increased substantially** from **$786,000** to **$4,418,000**, largely due to the acquisition of SMCB[8](index=8&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) For the three months ended June 30, 2025, net sales increased to $2.716 million from $2.440 million in the prior year, and gross profit significantly improved to $954,000 from $324,000. The company reduced its net loss from $(6.119) million to $(809,000) for the quarter. For the six months, net sales slightly decreased, but net loss also decreased from $(8.486) million to $(10.103) million, primarily due to a large non-cash loss from the change in fair value of warrant liability in 2025 Condensed Consolidated Statements of Operations (USD) | Metric | 3 Months Ended Jun 30, 2025 (USD) | 3 Months Ended Jun 30, 2024 (USD) | YoY Change (USD) | 6 Months Ended Jun 30, 2025 (USD) | 6 Months Ended Jun 30, 2024 (USD) | YoY Change (USD) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :---------------- | :-------------------------------- | :-------------------------------- | :---------------- | | Net Sales | 2,716,000 | 2,440,000 | 276,000 | 4,709,000 | 4,866,000 | (157,000) | | Cost of Goods Sold | 1,762,000 | 2,116,000 | (354,000) | 3,255,000 | 4,040,000 | (785,000) | | Gross Profit | 954,000 | 324,000 | 630,000 | 1,454,000 | 826,000 | 628,000 | | Loss from Operations | (782,000) | (6,154,000) | 5,372,000 | (3,592,000) | (8,441,000) | 4,849,000 | | Net Loss | (809,000) | (6,119,000) | 5,310,000 | (10,103,000) | (8,486,000) | (1,617,000) | | Net Loss Available to Common Shareholders | (585,000) | (6,119,000) | 5,534,000 | (9,776,000) | (8,486,000) | (1,290,000) | | Basic and Diluted EPS | (0.24) | (190.68) | 190.44 | (4.40) | (264.44) | 260.04 | - The **significant improvement** in net loss for the three months ended June 30, 2025, was primarily driven by a decrease in operating lease impairment expense (from **$3,878,000** to **$0**)[10](index=10&type=chunk)[130](index=130&type=chunk) - The six-month net loss increased due to a **$6,468,000** change in fair value of warrant liability in 2025, which was not present in 2024[10](index=10&type=chunk)[77](index=77&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20%28Unaudited%29) Shareholder's equity transitioned from a deficit of $(10.521) million at December 31, 2024, to a positive $2.810 million at June 30, 2025. This improvement was largely due to the exercise of Series B warrants, which resulted in $15.214 million in additional paid-in capital, and the reclassification of Series A warrants to equity, adding $7.857 million Condensed Consolidated Statements of Stockholders' Equity (USD) | Metric | Dec 31, 2024 (USD) | Jun 30, 2025 (USD) | Change (USD) | | :-------------------------------- | :----------------- | :----------------- | :------------- | | Total Algorhythm Holdings Shareholders' Equity (Deficit) | (10,521,000) | 2,810,000 | 13,331,000 | | Common Stock Shares Outstanding | 470,825 | 2,514,571 | 2,043,746 | | Additional Paid-in Capital | 39,682,000 | 63,854,000 | 24,172,000 | | Accumulated Deficit | (49,172,000) | (58,948,000) | (9,776,000) | - Exercise of Series B warrants contributed **$15,214,000** to additional paid-in capital[14](index=14&type=chunk) - Reclassification of Series A warrants to equity added **$7,857,000** to additional paid-in capital[14](index=14&type=chunk) - Common stock shares outstanding **increased significantly** from **470,825** to **2,514,571**, partly due to the exercise of Series B warrants and the acquisition of SMCB[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024%20%28Unaudited%29) Net cash used in operating activities remained relatively stable at approximately $(5.4) million for the six months ended June 30, 2025 and 2024. However, net cash used in investing activities significantly increased to $(1.359) million in 2025 from $(6,000) in 2024, primarily due to share repurchases and advances to SMCB. Net cash provided by financing activities improved to $379,000 in 2025 from a net use of $(42,000) in 20