Latest news with #SemiCab
Yahoo
4 days ago
- Business
- Yahoo
$2 Billion Revenue CPG Company Awards SemiCab India New Pilot to Implement Drop & Hook Trucking Model
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 consumer packaged goods ('CPG') manufacturer with over $84 billion in annual revenues. Under the first phase of the expanded services agreement, SemiCab India will provide managed transportation services to the CPG company on more than 40 heavily populated lanes throughout India, representing a 200% increase in lanes currently serviced. Upon completion of this phase of the relationship, the CPG company has agreed to broaden its relationship with SemiCab to include an expanded geographic footprint for services and an increased quantity of lanes served. Ajesh Kapoor, CEO of SemiCab Holdings, LLC, commented, 'We are excited to expand our relationship with our CPG client, which is one of the largest and most prestigious members of the National Digital Freight Exchange ('NDFE') in India today. The expansion of our collaboration opens the door to tremendous growth opportunities with a global powerhouse in the CPG world.' In connection with the contract expansion, SemiCab India announced a new pilot program with this CPG company in India modeled after the 'drop & hook' freight model. Drop and hook refers to the process of a driver dropping off a full trailer at a destination and hooking up to an already pre-loaded trailer, enabling the driver to quickly move on to their next delivery route rather than waiting for the trailer to be loaded and unloaded. This process, which has been widely adopted in the United States, will help us double the driving time in India. It has not been widely adopted due to infrastructure, operational, and technology constraints that, before SemiCab, companies have been unable to overcome. SemiCab's Collaborative Transportation Platform provides the operational and technological capabilities to support the drop and hook model in the Indian market. The platform can cut turnaround times by up to 80%, increasing the monthly miles per truck from an average of 3,200 miles to 5,000 miles with limited additional costs, improving shipping margins dramatically. SemiCab India is expected to go live with this multi-national company in June 2025. 'We are very excited to help pioneer the drop and hook model in India,' added Mr. Kapoor. 'This model can save countless hours of downtime, helping shippers avoid virtually all the congestion created by live loading and unloading in place today. Keeping our fleet fully deployed and quickly serving clients at metrics that no one else in the India market can match will serve as a major competitive advantage for us as we scale our business in India. We expect all other NDFE companies to adopt this model as we roll it out across the country.' About Algorhythm Holdings Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine. SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully-loaded round trips. With SemiCab's AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. For additional information, please go to Investor Relations Contact:investors@ Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm's reports to the SEC, including, without limitation Algorhythm's Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise. Sign in to access your portfolio
Business Upturn
4 days ago
- Business
- Business Upturn
$2 Billion Revenue CPG Company Awards SemiCab India New Pilot to Implement Drop & Hook Trucking Model
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 consumer packaged goods ('CPG') manufacturer with over $84 billion in annual revenues. Under the first phase of the expanded services agreement, SemiCab India will provide managed transportation services to the CPG company on more than 40 heavily populated lanes throughout India, representing a 200% increase in lanes currently serviced. Upon completion of this phase of the relationship, the CPG company has agreed to broaden its relationship with SemiCab to include an expanded geographic footprint for services and an increased quantity of lanes served. Ajesh Kapoor, CEO of SemiCab Holdings, LLC, commented, 'We are excited to expand our relationship with our CPG client, which is one of the largest and most prestigious members of the National Digital Freight Exchange ('NDFE') in India today. The expansion of our collaboration opens the door to tremendous growth opportunities with a global powerhouse in the CPG world.' In connection with the contract expansion, SemiCab India announced a new pilot program with this CPG company in India modeled after the 'drop & hook' freight model. Drop and hook refers to the process of a driver dropping off a full trailer at a destination and hooking up to an already pre-loaded trailer, enabling the driver to quickly move on to their next delivery route rather than waiting for the trailer to be loaded and unloaded. This process, which has been widely adopted in the United States, will help us double the driving time in India. It has not been widely adopted due to infrastructure, operational, and technology constraints that, before SemiCab, companies have been unable to overcome. SemiCab's Collaborative Transportation Platform provides the operational and technological capabilities to support the drop and hook model in the Indian market. The platform can cut turnaround times by up to 80%, increasing the monthly miles per truck from an average of 3,200 miles to 5,000 miles with limited additional costs, improving shipping margins dramatically. SemiCab India is expected to go live with this multi-national company in June 2025. 'We are very excited to help pioneer the drop and hook model in India,' added Mr. Kapoor. 'This model can save countless hours of downtime, helping shippers avoid virtually all the congestion created by live loading and unloading in place today. Keeping our fleet fully deployed and quickly serving clients at metrics that no one else in the India market can match will serve as a major competitive advantage for us as we scale our business in India. We expect all other NDFE companies to adopt this model as we roll it out across the country.' About Algorhythm Holdings Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine. SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully-loaded round trips. With SemiCab's AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. For additional information, please go to Investor Relations Contact: [email protected] Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as 'expects,' 'anticipates,' 'believes,' 'will,' 'will likely result,' 'will continue,' 'plans to,' 'potential,' 'promising,' and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm's reports to the SEC, including, without limitation Algorhythm's Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
Yahoo
5 days ago
- Business
- Yahoo
SemiCab Secures Four New Contract Wins and Four Contract Expansions, Accelerating Revenue Outlook
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, cloud-based Collaborative Transportation Platform. The four new customer acquisitions and four contract expansions greatly add to SemiCab's AI-powered digital freight orchestration platform and strongly reinforce the company's position as the preferred partner for national and multinational high-volume shippers in India. The expanded contracts are with some of the largest multinational fast moving consumer goods ('FMCG'), industrial and automotive companies in India. A summary of these contracts include: Four of SemiCab India's largest clients have successfully completed pilot programs and are expanding lanes and geographies. The contract expansions reflect increased lanes and volume for SemiCab's services, with the increases expected to range from between 100% to more than 200% over current levels. The contracts add coverage for over 20 new high-density lanes spanning highly populated regions, improving fleet utilization and reducing empty miles for all shipping partners. The enhancements increase SemiCab India's annualized revenue run rate by more than 400% compared to Q1 2025 levels. The new customer pilot programs are with large conglomerate industrial and consumer products companies and are in various phases of onboarding with the expectation that services will commence during June 2025. A summary of the new pilot contracts include: SemiCab India has been awarded four new pilot programs originating from new members to the National Digital Freight Exchange ('NDFE'). These pilot programs expand SemiCab India's geographic footprint in India to include the densely populated South-West-Central corridors in India. The programs greatly accelerate the company's timeline for achieving its plan to fill all of its available trucks, which currently have the capacity to generate annual revenue of more than $23 million. Ajesh Kapoor, CEO of SemiCab Holdings, LLC, commented on the recent new business awards, 'We are extremely pleased to reach this important milestone with all four of our largest clients and word of mouth is spreading. As a result of the work of the team and the powerful benefits of our Collaborative Transportation Platform, our four new pilot awards came from new entrants to the NDFE as referrals from existing customers.' SemiCab India currently has an active fleet of more than 140 trucks with rights to expand its fleet by an additional 450 trucks. SemiCab India plans to develop its growing pipeline of contracts with new FTL carriers to grow its fleet to more than 1,000 vehicles by the end of 2025 to keep pace with demand. According to Research and Markets recent market report, Road Freight Transport in India, India's $140 billion freight transportation market is expected to grow to $240 billion by 2029. 'Demand for long-haul truckload transportation in India is surging and is ripe for technology-led efficiency gains,' added Gary Atkinson, CEO of Algorhythm Holdings. 'Our AI-enabled transportation platform is quickly becoming the platform of choice for multinational companies looking to unlock lower shipping costs, increase operational efficiency, and meet Indian government mandates for infrastructure connectivity and multi-modal efficiency. These new client acquisitions and contract expansions will fill part of this capacity and greatly accelerate our achievement of our projected revenue targets for 2025 and beyond.' About Algorhythm Holdings Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine. SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform has the scalability necessary to predict and optimize millions of loads and hundreds of thousands of trucks, helping customers reduce shipping costs, improve delivery accuracy, and eliminate empty miles traveled. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. It uses AI/ML predictions and advanced predictive optimization models to enable fully-loaded round trips. With SemiCab's AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. For additional information, please go to Investor Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm's reports to the SEC, including, without limitation Algorhythm's Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
Yahoo
20-05-2025
- Business
- Yahoo
Algorhythm Holdings Appoints Ajesh Kapoor to its Board of Directors
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. During his career, Ajesh has designed and implemented industry-leading supply chain and logistics solutions for several leading international companies. Mr. Kapoor is the Founder and CEO of SemiCab, an AI logistics and distribution business that was named a Gartner Cool Vendor in Supply Chain. Prior to that, Mr. Kapoor served as the Vice President of Product Management at GT Nexus, a division of Infor, the world's largest cloud-based B2B multi-enterprise network and execution platform for global trade and supply chain management. At GT Nexus, he transformed the TMS product line into a cloud-based multi-modal foundation that allows a single platform to orchestrate end-to-end, multi-continent transportation capabilities. GT Nexus was acquired by Infor in 2015 for $675M. Earlier in his career, Mr. Kapoor served as Global Head of Supply Chain Advisory Services at Wipro Technologies. There, he designed and implemented the supply chain services strategy for the company's Retail, CPG and Transportation Industry segments. He was also the Founder and Chief Technology Officer at GEOCOMtms, a division of Blue Yonder, where he developed and brought to market fleet management solutions that grew to be recognized as the industry leader. GEOCOMtms was acquired by RedPrairie Corporation (which later became Blue Yonder) in 2007. 'Ajesh has been a visionary in the logistics space for over three decades. He has a tremendous passion for building networks and technology platforms with a proven track record of building successful companies and teams from the ground up,' commented Gary Atkinson, CEO of Algorhythm Holdings. 'He has demonstrated his substantial expertise in this space since our acquisition of the US component of SemiCab's business in July 2024. We look forward to leveraging his expertise on a broader level to accelerate the transformation of our business.' About Algorhythm Holdings Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine. SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully-loaded round trips. With SemiCab's AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. For additional information, please go to Investor Relations Contact:investors@ Forward Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm's reports to the SEC, including, without limitation Algorhythm's Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Algorhythm Holdings Reports First Quarter 2025 Financial Results
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 to the same period of the prior year. Gross profit was $0.5 million for the three months ended March 31, 2025. Loss from operations increased $0.5 million to $2.8 million for the three months ended March 31, 2025, compared to $2.3 million for the three months ended March 31, 2024. Net loss increased $6.8 million to $9.2 million for the three months ended March 31, 2025, compared to $2.4 million for the three months ended March 31, 2024. Adjusted net loss, a non-GAAP measure, was $3.2 million for the three months ended March 31, 2025, compared to $2.4 million for the three months ended March 31, 2024. Inventory was reduced by 14% during the three months ended March 31, 2025, from $2.2 million as of December 31, 2024 to $1.9 million as of March 31, 2025. The Company had cash on hand to $3.3 million as of March 31, 2025. A reconciliation of adjusted net loss on a GAAP and non-GAAP basis is included in the table below entitled 'Reconciliation of GAAP to non-GAAP Financial Measures'. 2025 Business Highlights '2025 is off to an incredible start, highlighted by our recent acquisition of SMCB Solutions Private Ltd. ('SemiCab India'), which operates SemiCab's AI enabled, cloud-based Collaborative Transportation Platform in the Indian market,' stated Gary Atkinson, Chief Executive Officer of Algorhythm. 'SemiCab India is currently operating at an annualized revenue run rate of $4.6 million with projected volume from its national and multinational customers expected to double that run rate by the end of the year. In addition, SemiCab India recently expanded its active fleet to 140 trucks and has access to an additional 450 trucks which, in the event actual growth exceeds projected growth, provides it with the capacity to quadruple its annualized revenue run rate from $4.6 million to over $23 million during the second half of 2025. Algorhythm plans to develop its pipeline of pending contracts with new full truckload (FTL) carriers to grow its fleet to over 1,000 vehicles by the end of 2025 to keep pace with demand.' 'I am highly optimistic at the Company's outlook for the back half of 2025 and beyond,' continued Mr. Atkinson. 'I believe our strategic pivot into AI logistics services with SemiCab will prove to be the correct decision, particularly during this period of extreme economic volatility. We have already seen a seismic move of manufacturing coming into India as a result of tariffs. We foresee this will create opportunities to solve logistics problems and force more optimization throughout the transportation industry. We are committed to continue to invest into the growth of our SemiCab business to take advantage of these opportunities.' Q1 2025 Financial Summary Algorhythm generated revenue of $2.0 million for the three months ended March 31, 2025 compared to $2.4 million for the same period last year. 'Our decrease in revenue was due primarily to lower sales within our karaoke business,' commented Alex Andre, Chief Financial Officer of Algorhythm. 'Sales of our karaoke products will likely continue to decrease due to the negative impact on our business of recently implemented tariffs, however, we expect this to be offset by an increase in revenue that we expect to generate from our SemiCab business. Our recent acquisition of SemiCab India will positively impact our revenue for the remainder of 2025.' The Company reported a net loss for the three-month period ended March 31, 2025 of $9.2 million, compared to a net loss of $2.4 million in the same period of the prior year. The increase was due primarily to a substantial increase in non-cash expenses of $6.4 million for the change in fair value of warrants that the Company issued in December 2024 as part of a public offering. Excluding non-cash expenses, Algorhythm's adjusted net loss was $3.2 million for the quarter. 'The warrants that we issued in December 2024 were subject to certain contingencies that resulted in us recording a warrant liability of $16.6 million on our balance sheet at December 31, 2024 and a loss of $6.4 million on our income statement for Q1 2025,' stated Mr. Andre. 'All of these contingencies were satisfied or became moot during Q1 2025. As a result, we reclassified the entire warrant liability to equity on our balance sheet at March 31, 2025. We will not incur any future non-cash charges associated with changes in the fair value of these warrants.' Non-GAAP Financial Measures The Company prepares it's consolidated financial statements in accordance with United States generally accepted accounting principles ('GAAP'). In addition to disclosing financial information prepared in accordance with GAAP, this release also includes non-GAAP operating income, non-GAAP net income and non-GAAP net income per share data for the periods presented. Management uses non-GAAP financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company's management believes that these non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the Company's core business operations, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. These non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings. Accordingly, they may be different from similar non-GAAP financial measures presented by other companies. These non-GAAP financial measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP financial measures. Investors should consider these non-GAAP financial measures as a supplement to, and not as a substitute for, corresponding financial measures calculated in accordance with GAAP. For the purposes of this press release, the following non-GAAP financial measures have the following meanings: 'Adjusted net loss' means net loss plus depreciation and amortization, reduction in SMCB loan in exchange for services, provision for estimated cost of returns, change in fair value of warrant liability, provision for inventory obsolescence, credit losses, reserve for sales returns, and stock-based compensation. For further information, please refer to the Company's Annual Report on Form 10-K filed with the SEC on April 15, 2025 and available online at For a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please see the table below entitled 'Reconciliation of GAAP to Non-GAAP Financial Measures'. Conference Call Details: Date: Friday, May 16, 2025 Time: 10:00 a.m. EDT Dial-in number: 888-999-3182 Conference ID: RIME An audio rebroadcast of the call will be available later in the day at: About Algorhythm Holdings Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine. SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab's AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select Wi-Fi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. For additional information, please go to Investor Relations Contact:investors@ Forward Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm's reports to the SEC, including, without limitation Algorhythm's Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise. Algorhythm Holdings, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) March 31, 2025 December 31, 2024 Assets Current Assets Cash $ 3,296,000 $ 7,550,000 Accounts receivable, net of allowances of $396,000 and $275,000, respectively 1,385,000 4,373,000 Accounts receivable, related party 357,000 212,000 Note receivable, related party 1,201,000 701,000 Inventory 1,895,000 2,186,000 Returns asset 751,000 1,621,000 Prepaid expenses and other current assets 126,000 120,000 Total Current Assets 9,011,000 16,763,000 Property and equipment, net 253,000 284,000 Other non-current assets 81,000 124,000 Intangible assets, net 330,000 345,000 Goodwill 786,000 786,000 Total Assets $ 10,461,000 $ 18,302,000 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 1,301,000 $ 3,808,000 Accrued expenses 2,414,000 4,224,000 Refund due to customer 630,000 38,000 Reserve for sales returns 1,742,000 3,355,000 Warrant liability - 16,603,000 Current portion of notes payable to related parties 551,000 265,000 Other current liabilities 97,000 145,000 Total Current Liabilities 6,735,000 28,438,000 Notes payable to related parties, net of current portion 385,000 385,000 Total Liabilities 7,120,000 28,823,000 Commitments and Contingencies Shareholders' Equity (Deficit) Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding at March 31, 2025 and December 31, 2024 - - Common stock, $0.01 par value; 800,000,000 and 100,000,000 shares authorized; 2,394,829 and 470,825 shares issued and outstanding at March 31, 2025 and December 31, 2024 24,000 5,000 Additional paid-in capital 63,577,000 39,682,000 Accumulated deficit (58,363,000 ) (49,172,000 ) Non-controlling interest (1,139,000 ) (1,036,000 ) Treasury stock, 10,990 and -0- shares reserved at March 31, 2025 and 2024 (758,000 ) - Total Algorhythm Holdings Shareholders' Equity (Deficit) 3,341,000 (10,521,000 ) Total Liabilities and Shareholders' Equity (Deficit) $ 10,461,000 $ 18,302,000 Algorhythm Holdings, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2025 2024 Net Sales $ 1,993,000 $ 2,426,000 Cost of Goods Sold 1,493,000 1,924,000 Gross Profit 500,000 502,000 Operating Expenses Selling expenses 764,000 630,000 General and administrative expenses 2,546,000 2,159,000 Total Operating Expenses 3,310,000 2,789,000 Loss from Operations (2,810,000 ) (2,287,000 ) Other Expenses Change in fair value of warrant liability (6,468,000 ) - Interest expense (16,000 ) (28,000 ) Total Other Expenses (6,484,000 ) (28,000 ) Loss Before Income Tax Benefit (9,294,000 ) (2,315,000 ) Income Tax Provision - (52,000 ) Net Loss (9,294,000 ) (2,367,000 ) Net loss attributable to non-controlling interest 103,000 - Net Loss Available to Common Stockholders $ (9,191,000 ) $ (2,367,000 ) Loss per common share Basic and diluted $ (4.66 ) $ (73.76 ) Weighted Average Common and Common Equivalent Shares: Basic and diluted 1,972,869 32,090 Algorhythm Holdings, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) Table 1: Adjusted Net Loss For the Three Months Ended March 31, 2025 2024 Net loss (as reported) $ (9,294,000 ) $ (2,367,000 ) Depreciation and amortization 91,000 136,000 Reduction in SMCB loan in exchange for services 172,000 - Provision for estimated cost of returns 870,000 658,000 Change in fair value of warrant liability 6,468,000 - Provision for inventory obsolescence 4,000 - Credit losses 3,000 101,000 Reserve for sales returns (1,614,000 ) (971,000 ) Stock based compensation 85,000 19,000 Adjusted net loss $ (3,215,000 ) $ (2,424,000 )
