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 owned a karaoke products business, which was sold in August 2025.

• SemiCab leverages AI/ML for predictive optimization in transportation, targeting improved truck utilization, reduced empty miles, and lower logistics costs.

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

• Customers are primarily large, fast-moving consumer goods 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, gross profit $954K (35.1% margin), and net loss attributable to common shareholders was $585K.

• For the six months ended June 30, 2025: net sales were $4.7M, gross profit $1.45M, and net loss attributable to common shareholders was $9.8M.

• For the year ended December 31, 2024: net sales were $23.5M, gross profit $4.8M (20.4% margin), and net loss attributable to common shareholders was $23.3M.

• As of June 30, 2025, cash was $1.1M, total assets $12.7M, and accumulated deficit $58.9M.

• Audit reports include a going concern warning due to recurring losses and insufficient cash to fund operations for the next year.

Use of proceeds and capital allocation

• Proceeds from the exercise of Series A warrants (up to $9.5M if fully exercised) are intended for business growth, working capital, and potential acquisitions.

• No proceeds will be received from the resale of shares by Streeterville Capital; all costs of registration are borne by the company.

• Capital allocation priorities include investment in SemiCab’s technology, hiring, marketing, and potential acquisitions in AI logistics.