Company Announces Geographic Expansion of Lanes and Pilot of Drop & Hook Program in Indian FMCG Sector for the First Time Fort Lauderdale, FL, June 04, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. ("Algorhythm") (NASDAQ: RIME) – an AI technology and consumer electronics holding company, today announced that its subsidiary, SMCB Solutions Private Limited ("SemiCab India"), has been awarded a large expansion to its Master Services Agreement with the Indian subsidiary of the world's third largest consume ...

Fort Lauderdale, FL, June 03, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), an AI-driven technology and consumer electronics holding company, today announced that its subsidiary, SMCB Solutions Private Limited (“SemiCab India”), has recently signed four new pilot agreements and four contract expansions with eight enterprise-scale customers in India. Under the new and expanded contracts, SemiCab India will provide enterprise-level shipping services through its AI-powered, ...

Mr. Kapoor Brings more than 30 Years of Supply-Chain, Logistics Technology and Go-To-Market Leadership to the Board Fort Lauderdale, FL, May 20, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. ("Algorhythm") (NASDAQ: RIME) – an AI technology and consumer electronics holding company, today announced the appointment of Ajesh Kapoor to its board of directors effective May 19, 2025. Mr. Kapoor brings more than 30 years of logistics and supply chain technology innovation and leadership to the Company's Board. ...

Algorhythm Holdings (RIME) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Gary Atkinson - CEOAlex Andre - CFO & General Counsel Conference Call Participants Edward Woo - Director of Research & Senior AnalystNone - Analyst Operator Good day, everyone, and welcome to Algorithm Holdings First Quarter twenty twenty five Financial Results Earnings Call. My name is Paul, and I will be your operator. As a reminder, today's call is being recorded. We have a brief safe harbor, and then we'll get ...

Financial Data and Key Metrics Changes - Sales decreased to $2 million in Q1 2025 from $2.4 million in Q1 2024, primarily due to lower sales of karaoke products, which are discretionary purchases affected by inflation and seasonal trends [13][14] - Gross profit remained stable at $500,000, with gross margin improving from 21% to 25% due to a decrease in returns [14] - Stockholders' equity improved to $3.3 million as of March 31, 2025, from a deficit of $11.6 million at December 31, 2024, after the reclassification of warrant liabilities [18][16] Business Line Data and Key Metrics Changes - The semi cap business in India saw sales grow almost fivefold, doubling the number of clients and serving three of the top ten and five of the top fifty largest consumer packaged goods companies globally [9][10] - The company has increased its fleet access to over 500 trucks and anticipates annualized revenue capacity in India to exceed $20 million [10] Market Data and Key Metrics Changes - The National Digital Freight Exchange (NDFE) represents a significant opportunity with a total freight spend of over $1.4 billion annually, with approximately $400 million identified for optimization [7][32] - The company is positioned to benefit from the shift of manufacturing from China to India, which is expected to enhance domestic growth [21] Company Strategy and Development Direction - The company is prioritizing the semi cap business, particularly in India, for near-term growth, while exploring strategic alternatives for its consumer electronics karaoke business [22] - The acquisition of SemiCAD India is viewed as a critical opportunity, leveraging government support and collaboration with major multinational companies to address freight inefficiencies [5][6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the karaoke business due to supply chain issues and tariff uncertainties but expressed optimism about the growth potential in the semi cap sector [20][21] - The company expects substantial revenue growth from the semi cap business over the next twelve months as it expands its customer base [14] Other Important Information - The company completed a reverse stock split in February 2025, affecting all reported financial numbers [12] - A one-time noncash charge of $6.5 million was recorded due to the remeasurement of warrants, impacting the income statement [16] Q&A Session Summary Question: State of software development for SemiCap - Management indicated that the software platform acquired is already commercially secure and operational, requiring minimal further investment for development [25][26] Question: Business operations outside of India - Management confirmed that the US division of SemiCap was also acquired, with plans to introduce a new business model in the US market soon [28][29] Question: Addressable market size and growth timeline - Management clarified that the $400 million addressable market in India is expected to be targeted aggressively over the next two to three years, primarily leveraging existing customer relationships [31][32]

Fort Lauderdale, FL, May 16, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) – an AI technology and consumer electronics holding company, announced today its results of operations for the three-month period ended March 31, 2025. Q1 2025 Financial Highlights Algorhythm reported revenue of $2.0 million for the three months ended March 31, 2025 compared to $2.4 million for the three months ended March 31, 2024. Gross profit margin increased by 4.4% to 25.1% from 20.7% compared ...

Financial Performance - Net sales decreased by $433,000 to $1,993,000 for the three-month period ended March 31, 2025, compared to $2,426,000 for the same period in 2024, primarily due to the loss of retail shelf space at two major customers[128] - Gross profit decreased to $500,000, or 25.1% of net sales, for the three-month period ended March 31, 2025, compared to $502,000, or 20.7% of net sales, for the same period in 2024[128] - Net loss available to common stockholders was $9,191,000, or $4.66 per share, for the three-month period ended March 31, 2025, compared to $2,367,000, or $73.76 per share, for the same period in 2024[129] - Total assets decreased from $18,302,000 at December 31, 2024, to $10,461,000 at March 31, 2025[129] Operating Expenses - Operating expenses increased by $521,000 to $3,310,000 for the three-month period ended March 31, 2025, primarily due to growth and development expenses for the SemiCab business[128] - Selling expenses increased by $134,000 to $764,000 for the three-month period ended March 31, 2025, compared to $630,000 for the same period in 2024, primarily due to increased online marketing and social media advertising campaigns[137] - General and administrative expenses rose by $387,000 to $2,546,000 for the three-month period ended March 31, 2025, from $2,159,000 in the same period of 2024, mainly due to expenses related to the development and growth of the SemiCab business[138] - Other expenses surged by $6,456,000 to $6,468,000 for the three-month period ended March 31, 2025, compared to $28,000 for the same period in 2024, primarily due to a non-cash loss from the change in fair value of warrants[139] Cash Flow - Net cash used by operating activities was $3,108,000 during the three-month period ended March 31, 2025, an increase of $551,000 from $2,557,000 in the same period of 2024[143] - Net cash used by investing activities was $673,000 for the three-month period ended March 31, 2025, with no cash flows from investing activities in the same period of 2024[144] - Net cash used by financing activities increased to $473,000 for the three-month period ended March 31, 2025, compared to $21,000 for the same period in 2024, primarily due to repayments of promissory notes[145] - As of March 31, 2025, the company's cash balance was $3,296,000[142] Future Outlook - The company expects net sales of Singing Machine products to decrease over the next 12 months due to tariffs on products manufactured in China, while revenue from the SemiCab business is expected to increase[132] - The company plans to invest in the SemiCab business to develop it into a significant revenue producer, focusing on technology research and development, marketing, and hiring qualified employees[125] - The company intends to continue relying on cash generated from operations, equity sales, and debt to fund operations and expansion efforts, including potential acquisitions[146] Acquisitions - The company completed the acquisition of the India component of the SemiCab business on May 2, 2025, following the acquisition of the U.S. component on July 3, 2024[126] Compliance - The company received a letter from Nasdaq on March 25, 2025, confirming compliance with the minimum bid price requirement of $1.00 per share for continued listing[151] Non-controlling Interest - Net loss attributable to non-controlling interest was $103,000 for the three-month period ended March 31, 2025, reflecting losses incurred by SemiCab allocated to SemiCab, Inc. through its 20% membership interest[140] One-time Charges - The company incurred a one-time, non-cash charge of $6,468,000 for the change in fair value of warrants related to a public offering completed on December 6, 2024[130]

Core Insights - Algorhythm Holdings, Inc. has acquired SemiCab Solutions Private Ltd., enhancing its presence in the rapidly growing Indian logistics market [1][2] - The acquisition provides access to a significant multinational customer base and scalable growth opportunities through SemiCab's AI platform [4][6] Company Overview - Algorhythm Holdings is a diversified technology-driven holding company with a focus on AI technology and consumer electronics [9] - SemiCab is recognized as an emerging leader in the global logistics and distribution industry, utilizing AI to optimize supply chain operations [10] Acquisition Details - Algorhythm's subsidiary, SemiCab Holdings, LLC, acquired 9,999 of the 10,000 equity shares of SemiCab India for a $1.75 million promissory note and 119,742 shares of common stock [2] - This acquisition marks Algorhythm's second transaction with SemiCab, Inc., following the acquisition of its U.S. business in July 2024 [1] Market Context - India's logistics sector, valued at $1.3 trillion, is undergoing modernization, supported by government initiatives like the Gati Shakti National Master Plan [5] - The National Digital Freight Exchange (NDFE) has selected SemiCab as its AI logistics partner, indicating strong institutional support for the company's technology [5] Performance Metrics - SemiCab India has more than doubled its annualized revenue run rate from approximately $1.8 million to approximately $4.5 million since January 2025, with expectations to double again by year-end [6] - The platform improves freight utilization rates from approximately 65% to up to 90% and reduces total shipping costs by up to 10% [7] Strategic Advantages - The acquisition allows Algorhythm to tap into existing contracts with leading FMCG companies in India, providing a pathway to scale operations significantly [6] - SemiCab's AI platform enhances visibility in the transportation network, enabling real-time collaboration between shippers and transporters [8]

Core Viewpoint - Algorhythm Holdings, Inc. is transitioning from a consumer electronics company focused on karaoke products to an AI technology company specializing in freight technology services for the transportation industry [5][10]. Financial Highlights - The company reported revenue of $23.5 million for the year ended December 31, 2024, down from $29.2 million for the nine-month period ended December 31, 2023 [8]. - Gross profit was $4.8 million for the year ended December 31, 2024, compared to $6.2 million for the nine-month period ended December 31, 2023, with gross margins of 20.4% and 21.2% respectively [8]. - Loss from operations increased to $13.9 million for the year ended December 31, 2024, compared to $6.1 million for the nine-month period ended December 31, 2023 [8]. - Net loss rose to $24.4 million for the year ended December 31, 2024, compared to $6.1 million for the nine-month period ended December 31, 2023 [8]. - Adjusted net loss was $7.6 million for the year ended December 31, 2024, compared to $2.6 million for the nine-month period ended December 31, 2023 [8]. - Inventory was reduced by 68%, from $6.9 million as of December 31, 2023, to $2.2 million as of December 31, 2024 [8]. - Cash on hand increased to $7.6 million as of December 31, 2024 [8]. Strategic Developments - The company acquired the United States business of SemiCab, Inc., an AI-driven logistics company, to enter the AI space [9]. - Significant corporate actions were taken, including a name change to Algorhythm Holdings and raising over $10 million in capital to pay off liabilities and support growth [9]. - The company plans to complete the acquisition of SemiCab India, which has secured notable pilot contracts, contributing to revenue growth [6][9]. Future Outlook - The company anticipates growth in its SemiCab business, expecting increased revenue from its customer base in the U.S. and the integration of SemiCab India [10][11]. - There is an evaluation of strategic alternatives for the Singing Machine business, including a potential sale, as the focus shifts to AI logistics and distribution [11].

Acquisition and Corporate Changes - Algorhythm Holdings, Inc. completed the acquisition of SemiCab, Inc. for a purchase price consisting of 3,210 shares of common stock and a 20% membership interest in SemiCab Holdings[28]. - Algorhythm Holdings, Inc. changed its fiscal year end from March 31 to December 31 during 2023[27]. - The company appointed Alex Andre as Chief Financial Officer and General Counsel on February 13, 2025, replacing Richard Perez[40]. - A reverse stock split of 1-for-200 was approved and took effect on February 10, 2025, along with an increase in authorized shares from 100,000,000 to 800,000,000[39]. Financial Activities - The company entered into a loan agreement for a $2,000,000 revolving line of credit with Oxford Commercial Finance, which was terminated on October 17, 2024, with no outstanding amounts owed[32]. - A public offering on December 4, 2024, resulted in net proceeds of $8,565,000 from the sale of 21,000 shares of common stock and pre-funded warrants[37]. - A registered direct offering on December 18, 2024, generated net proceeds of $1,665,000 from the sale of 120,337 shares of common stock at a purchase price of $16.62 per share[38]. Product Development and Offerings - The company plans to expand its business into new verticals, including automotive and connected-TV devices, to grow global distribution for its karaoke products[26]. - Singing Machine's karaoke products are Bluetooth® enabled and feature advanced capabilities such as real-time pitch correction and streaming karaoke content via WiFi[42]. - The karaoke product offerings include almost 20,000 licensed karaoke songs in the catalog[47]. - The company does not rely on a single supplier for karaoke products, using multiple manufacturers in southern China[53]. Sales and Marketing - Sales to the top five customers accounted for 79% of karaoke revenue for the year ended December 31, 2024[67]. - Marketing efforts are aimed at increasing brand awareness and optimizing investments through digital analytics tools[58]. - The karaoke products are marketed through a direct sales team and independent representatives, with sales recognized upon transfer of title[57]. Logistics and Operations - The company has outsourced its warehousing services to a 3PL company effective September 1, 2023, after the lease at the Ontario warehouse expired[55]. - The SemiCab logistics services focus on full truckload transportation, with contracts generally lasting up to a year[60]. - The company maintains a dedicated software development team in India to enhance the SemiCab platform[52]. - The logistics industry experiences cyclic demand, with smaller operators facing challenges during periods of oversupply[70]. Seasonal Trends - Seasonal demand for karaoke products typically peaks from late July to early November, impacting quarterly performance[69].