Algorhythm Holdings Announces 2024 Financial Results

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].