Algorhythm Holdings (RIME) investor relations material

Company overview and business model

• Operates as an AI technology holding company with a primary focus on SemiCab, an AI-enabled logistics and distribution platform; previously operated a karaoke consumer products business, which was sold in August 2025.

• SemiCab leverages AI/ML for predictive optimization in transportation, aiming to reduce empty miles, improve asset utilization, and lower logistics costs for manufacturers, retailers, and carriers.

• The company’s operations include subsidiaries in the US, India, and Hong Kong, with SemiCab providing both managed transportation services and SaaS subscriptions for shippers and brokers.

• SemiCab’s customer base consists primarily of large, fast-moving consumer products companies, with services currently offered in India and planned expansion in the US.

Financial performance and metrics

• For the three months ended June 30, 2025, net sales were $2.7M (up from $2.4M YoY), with gross profit of $954K (35.1% margin), and a net loss attributable to common shareholders of $585K.

• For the six months ended June 30, 2025, net sales were $4.7M (down from $4.9M YoY), with a net loss of $9.8M and accumulated deficit of $58.9M as of June 30, 2025.

• For the year ended December 31, 2024, net sales were $23.5M (down from $29.2M for the prior period), with a net loss of $23.3M and negative cash flow from operations of $8.6M.

• As of June 30, 2025, cash was $1.1M, with total assets of $12.7M and total liabilities of $9.9M; the audit report includes a going concern warning due to recurring losses and limited cash resources.

Use of proceeds and capital allocation

• Proceeds from the exercise of Series A warrants (if exercised) are intended for business growth, working capital, and general corporate purposes; no assurance all warrants will be exercised.

• Proceeds from the August 2025 private placement with Streeterville Capital are to be used at management’s discretion, with broad authority over allocation.

• The company has used recent capital raises to fund operations, repay debt, and support expansion, including acquisitions in the AI logistics sector.