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].