Core Insights - Algorhythm Holdings, Inc. reported a net loss of $9.2 million for Q1 2025, a significant increase from a net loss of $2.4 million in Q1 2024, primarily due to a $6.4 million increase in non-cash expenses related to warrants [6][7][24] - The company generated revenue of $2.0 million in Q1 2025, down from $2.4 million in the same period last year, attributed mainly to lower sales in its karaoke business [5][6] - The acquisition of SemiCab India is expected to positively impact revenue, with an annualized revenue run rate projected to double by year-end [4][5] Financial Performance - Revenue for Q1 2025 was $2.0 million, a decrease of 16.7% from $2.4 million in Q1 2024 [5][6] - Gross profit margin increased to 25.1%, up from 20.7% in the prior year, with gross profit remaining relatively stable at $0.5 million [6][23] - Operating loss increased to $2.8 million in Q1 2025 from $2.3 million in Q1 2024, while adjusted net loss was $3.2 million compared to $2.4 million in the previous year [6][7][24] Business Developments - The acquisition of SemiCab India, which operates an AI-enabled transportation platform, is a strategic pivot for the company into AI logistics services [4][14] - SemiCab India is currently generating an annualized revenue run rate of $4.6 million, with potential to quadruple this figure to over $23 million by the second half of 2025 [4] - The company plans to expand its fleet to over 1,000 vehicles by the end of 2025 to meet increasing demand [4] Balance Sheet Highlights - As of March 31, 2025, the company had cash on hand of $3.3 million, down from $7.6 million at the end of 2024 [6][20] - Total assets decreased to $10.5 million from $18.3 million at the end of 2024, while total liabilities also decreased to $7.1 million from $28.8 million [20][21] - The company reported a significant reduction in inventory by 14%, from $2.2 million at the end of 2024 to $1.9 million [6][21]
Algorhythm Holdings Reports First Quarter 2025 Financial Results