Revenue and Sales Performance - Revenue for the three-month period ended September 30, 2025, was $1,744,000, a significant increase from $127,000 for the same period in 2024, primarily due to the acquisition of SMCB[156] - Net sales increased by $1,617,000 to $1,744,000 for the three-month period ended September 30, 2025, compared to $127,000 for the same period in 2024, primarily due to the acquisition of SMCB[161] - Net sales increased by $2,891,000 to $3,018,000 for the nine-month period ended September 30, 2025, compared to $127,000 for the same period in 2024, driven by SMCB's contribution[169] Costs and Expenses - Gross loss for the three-month period ended September 30, 2025, was $351,000, or 20% of net sales, compared to a gross loss of $32,000, or 25% of net sales in the same period of 2024[156] - Cost of sales rose by $1,936,000 to $2,095,000 for the three-month period ended September 30, 2025, compared to $159,000 for the same period in 2024, mainly due to costs associated with SMCB[162] - Cost of sales increased by $3,557,000 to $3,716,000 for the nine-month period ended September 30, 2025, compared to $159,000 for the same period in 2024, primarily due to SMCB[170] - Operating expenses decreased to $1,214,000 for the three-month period ended September 30, 2025, down from $1,791,000 in the same period of 2024[157] - General and administrative expenses decreased by $580,000 to $1,211,000 for the three-month period ended September 30, 2025, compared to $1,791,000 for the same period in 2024[166] - General and administrative expenses increased by $354,000 to $3,184,000 for the nine-month period ended September 30, 2025, compared to $2,830,000 for the same period in 2024[173] - Selling expenses were $3,000 for the three-month period ended September 30, 2025, with no selling expenses incurred in the same period in 2024[164] Net Loss and Financial Position - Net loss from continuing operations for the three-month period ended September 30, 2025, was $1,882,000, compared to $2,106,000 for the same period in 2024[157] - Net loss available to common shareholders for the three-month period ended September 30, 2025, was $2,962,000, or $1.15 per share, compared to a net gain of $1,195,000, or $0.13 per share, for the same period in 2024[158] - Net loss attributable to non-controlling interest was $20,000 for the three-month period ended September 30, 2025, down from $221,000 for the same period in 2024[168] Cash Flow and Financing - Net cash used by operating activities was $4,343,000 during the nine-month period ended September 30, 2025, compared to $3,770,000 for the same period in 2024[177] - Net cash provided by financing activities was $4,115,000 during the nine-month period ended September 30, 2025, compared to $1,103,000 for the same period in 2024, reflecting increased proceeds from promissory notes[180] Future Outlook - The company expects substantial increases in net sales from the SemiCab business over the next 12 months, particularly from the growing customer base in India[159] - Anticipated gross loss is expected to decrease as net sales from the SemiCab business increase, outpacing the rise in cost of sales[159] - The company plans to invest in the growth and development of the SemiCab business, which may lead to increased operating expenses due to legal and accounting costs[159] - Future acquisitions of complementary businesses may significantly impact the company's financial results, either positively or negatively[160] Assets - Total assets decreased from $18,302,000 at December 31, 2024, to $10,845,000 at September 30, 2025[158]
Algorhythm Holdings Inc.(RIME) - 2025 Q3 - Quarterly Report