Tue, Apr 15, 8:11 PM (30 days ago)
**Summary of Algorhythm Holdings, Inc. (RIME)** **Financial Performance:** - **Revenue:** $23,494,000 for the year ended December 31, 2024, compared to $29,198,000 for the nine-month transition period ended December 31, 2023. - **Gross Profit:** $4,781,000 (20.4% of net sales) for the year ended December 31, 2024, compared to $6,190,000 (21.2% of net sales) for the nine-month transition period ended December 31, 2023. - **Operating Expenses:** $18,706,000 for the year ended December 31, 2024, compared to $12,333,000 for the nine-month transition period ended December 31, 2023. - **Net Loss:** $23,257,000, or $353.87 per share of common stock, for the year ended December 31, 2024, compared to $6,398,000, or $263.04 per share of common stock, for the nine-month transition period ended December 31, 2023. **Market Position Changes:** - **Stock Performance:** The stock has experienced significant volatility, with the closing bid price falling below $0.10 per share for 13 consecutive trading days ending December 27, 2024, leading to a delisting warning from Nasdaq. - **Market Capitalization:** As of April 14, 2025, the aggregate market value of the voting and non-voting common equity held by non-affiliates was $4,185,048, with 2,394,829 shares of common stock outstanding. **Strategic Overview:** - **Business Units:** Algorhythm Holdings operates two primary business units: SemiCab (AI-enabled software logistics) and Singing Machine (home karaoke consumer products). - **Growth Strategy:** The company aims to diversify its business by investing in SemiCab to develop and grow it into a significant revenue producer, while continuing to focus on customer retention and cost reduction for Singing Machine. **Future Outlook:** - **Revenue Expectations:** Total net sales are expected to increase over the next 12 months due to anticipated growth in the SemiCab business. - **Profitability:** Gross profit is expected to improve as costs of goods sold remain stable and sales of higher-margin streaming technology karaoke machines increase. - **Operating Expenses:** Operating expenses are expected to remain flat or decrease as the company implements initiatives to reduce general and administrative expenses. **Risk Factors:** - **Financial Condition:** The company has a history of losses and needs to raise additional capital to meet its obligations and sustain operations. - **Market Risks:** The company faces risks related to trade policies, tariffs, and economic conditions that could negatively impact its business. - **Operational Risks:** The company relies on key personnel and faces risks related to supply chain disruptions, cybersecurity threats, and regulatory compliance. **Financial Condition:** - **Cash Balance:** As of December 31, 2024, the cash balance was $7,550,000, which is not sufficient to fund operations for at least one year after the date the consolidated financial statements are issued. - **Liquidity:** The company has a recent history of recurring operating losses and decreases in working capital, raising substantial doubt about its ability to continue as a going concern. **Note:** The amounts are usually in thousands, 000s.