Company Overview: Algorhythm Holdings, Inc.

Business Structure

Algorhythm Holdings, Inc., formerly known as The Singing Machine Company, Inc., is a holding company operating primarily in two distinct sectors:

1. SemiCab: An AI-enabled software logistics business.
2. Singing Machine: A consumer electronics business specializing in karaoke products.

SemiCab

• Functionality: SemiCab provides a cloud-based Collaborative Transportation Platform designed to enhance logistics through the optimization of loads and truck utilization.
• Technological Approach: Utilizes AI/ML (artificial intelligence/machine learning) for predictive optimization models to increase transportation capacity and reduce logistics costs.
• Clientele: As of December 31, 2024, SemiCab enabled major retailers, brands, and transportation providers to address their logistics needs, although specific customer numbers are not disclosed.
• Revenue Contribution: Though still in early stages, SemiCab began generating revenue by serving a growing customer base primarily in the logistics and distribution industry. The company aims for continued growth in this segment.

Singing Machine

• Product Offering: Engages in the development, marketing, and sale of consumer karaoke audio equipment and accessories.
• Market Presence: One of the leading global companies in the karaoke and music entertainment industry. Their products are distributed through major retailers and e-commerce platforms.
• Customers: Significant sales are made to retailers like Walmart, Costco, Target, and Sam's Club, among others.
• Seasonality: Experiences heightened sales from late July through November, typically accounting for 79% and 91% of total revenue in the quarters ending September 30 and December 31, respectively for FY 2024.

Financial Overview

Revenue and Income

• Total Revenue: Algorhythm reported net sales of $23.5 million for the fiscal year ending December 31, 2024.
• Comparison: This reflects a decline from $29.2 million during the nine-month transition period ending December 31, 2023.
• Gross Profit: The gross profit for FY 2024 was $4.78 million, indicating a gross margin of 20.4%, down from 21.2% in the previous period.
• Net Loss: The company incurred a net loss available to common stockholders of $23.3 million, which amounts to approximately $353.87 per share. This is a substantial increase from the loss of $6.4 million or about $263.04 per share for the transition period ended December 31, 2023.

Operational Metrics

• Employees: As of April 14, 2025, Algorhythm Holdings employed 25 individuals.
• Stockholder Information: The company had 2,394,829 shares of common stock outstanding as of April 14, 2025.

Market Position

• Stock Listing: Algorhythm Holdings trades on the Nasdaq under the ticker symbol RIME.

Recent Developments and Strategic Focus

• Acquisition: On July 3, 2024, Algorhythm purchased substantially all assets of SemiCab, Inc. which helped expand their logistics capabilities.
• Financial Strategies: The company completed various public offerings and private placements to raise capital.
• Future Outlook: Management anticipates that revenue from SemiCab will increase while acknowledging short-term declines in Singing Machine sales due to market conditions and tariffs.

This strategic positioning and focus on technology-driven logistics and established consumer products position Algorhythm Holdings for potential growth while managing significant challenges in terms of profitability and operational execution.