Algorhythm Holdings, Inc.

For the period ended Dec 31, 2024. Filed Apr 15, 2025.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Apr 15, 2025

RIME$0.08-7.1%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Consolidated Balance Sheets at December 31, 2024 and 2023

Algorhythm Holdings, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

	December 31, 2024	December 31, 2023
Assets
Current Assets
Cash	$7,550,000	$6,703,000
Accounts receivable, net of allowances of $274,000 and $174,000, respectively	4,373,000	7,308,000
Accounts receivable, related party	212,000	269,000
Note receivable - related party	701,000	-
Inventory	2,186,000	6,871,000
Returns asset	1,621,000	1,919,000
Prepaid expenses and other current assets	120,000	136,000
Total Current Assets	16,763,000	23,206,000
Property and equipment, net	284,000	404,000
Operating leases - right of use assets	95,000	3,926,000
Other non-current assets	29,000	179,000
Intangible assets, net	345,000	-
Goodwill	786,000	-
Total Assets	$18,302,000	$27,715,000
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$3,808,000	$7,616,000
Accrued expenses	4,224,000	2,614,000
Refund due to customer	38,000	1,743,000
Customer prepayments	-	687,000
Reserve for sales returns	3,355,000	3,390,000
Warrant liability	16,603,000	-
Current portion of notes payable to related parties	265,000	-
Other current liabilities	145,000	159,000
Total Current Liabilities	28,438,000	16,209,000
Notes payable to related parties, net of current portion	385,000	-
Operating lease liabilities, net of current portion	-	3,925,000
Other liabilities	-	3,000
Total Liabilities	28,823,000	20,137,000
Commitments and Contingencies	-
Shareholders’ (Deficit) Equity
Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding	-	-
Common stock $0.01 par value; 100,000,000 shares authorized; 470,825 and 32,090 shares issued and outstanding at December 31, 2024 and 2023.	5,000	-
Additional paid-in capital	39,682,000	33,493,000
Accumulated deficit	(49,172,000)	(25,915,000)
Non-controlling interest	(1,036,000)	-
Total Algorhythm Holdings Shareholders’ (Deficit) Equity	(10,521,000)	7,578,000
Total Liabilities and Shareholders’ (Deficit) Equity	$18,302,000	$27,715,000

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended	Nine Months Ended
	December 31, 2024	December 31, 2023
Net Sales	$23,494,000	$29,198,000
Cost of Goods Sold	18,713,000	23,008,000
Gross Profit	4,781,000	6,190,000
Operating Expenses
Selling expenses	2,874,000	3,717,000
General and administrative expenses	12,240,000	8,616,000
Impairment of goodwill	3,592,000	-
Total Operating Expenses	18,706,000	12,333,000
Loss from Operations	(13,925,000)	(6,143,000)
Other (Expense) Income
Change in fair value of warrant liability	334,000	-
Loss on issuance of warrants	(8,889,000)	-
Interest expense	(1,887,000)	(299,000)
Other income	-	44,000
Total Other Expense	(10,442,000)	(255,000)
Loss Before Income Tax Benefit	(24,367,000)	(6,398,000)
Income Tax Provision	-	-
Net Loss	(24,367,000)	(6,398,000)
Net Loss Attributable to Non-controlling Interest	1,110,000	-
Net Loss Available to Common Stockholders	$(23,257,000)	$(6,398,000)
Loss per common share
Basic and diluted	$(353.87)	$(263.04)
Weighted Average Common and Common
Equivalent Shares:
Basic and diluted	65,722	24,323

STATEMENTS OF SHAREHOLDERS’ (DEFICIT) EQUITY

For the Year Ended December 31, 2024 and Nine Months Ended December 31, 2023

Common Stock · Additional Paid in · Non-Controlling · Accumulated
Shares · Amount · Capital · Interest · Deficit · Total
Balance at March 31, 2023	15,837	$	-	$29,848,000	$	-	$(19,517,000)	$10,331,000
Net loss	-		-	-		-	(6,398,000)	(6,398,000)
Sale of common stock, net of offering costs	16,253		-	3,529,000		-	-	3,529,000
Stock based compensation	-		-	110,000		-	-	110,000
Other	-		-	6,000		-	-	6,000
Balance at December 31, 2023	32,090	$	-	$33,493,000	$	-	$(25,915,000)	$7,578,000
Net loss	-		-	-		(1,110,000)	(23,257,000)	(24,367,000)
Sale of common stock and pre-funded warrants, net of offering cost	418,927		4,000	4,881,000		-	-	4,885,000
Stock based compensation	5,099		-	630,000		-	-	630,000
Common stock issued for purchase of SemiCab Inc	3,209		-	494,000		-	-	494,000
Subsidiary interests issued for purchase of SemiCab Inc	-		-	-		74,000	-	74,000
Repurchase of common shares - related parties	-		-	(758,000)		-	-	(758,000)
Issuance of common stock with debt	11,500		1,000	942,000		-	-	943,000
Balance at December 31, 2024	470,825		$5,000	$39,682,000		$(1,036,000)	$(49,172,000)	$(10,521,000)

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended · Nine Months Ended
December 31, 2024 · December 31, 2023
Cash flows from operating activities
Net loss	$(24,367,000)		$(6,398,000)
Adjustments to reconcile net loss to net cash (used in), provided by operating activities:
Depreciation	192,000		287,000
Amortization of intangible assets	30,000		-
Impairment of goodwill from purchase of SemiCab Inc	3,592,000		-
Impairment on note receivable - SCMB	439,000		-
Reduction in SMCB loan in exchange for services	637,000		-
Provision for estimated cost of returns	299,000		(1,364,000)
Change in fair value of warrant liability	(334,000)		-
Loss on issuance of warrants	8,889,000		-
Amortization of debt discount and issuance costs	1,520,000		-
Provision for inventory obsolescence	918,000		1,798,000
Reserve for sales returns	(35,000)		2,490,000
Credit losses	14,000		8,000
Non-cash effect on termination of operating lease	(280,000)		-
Net gain from disposal of property and equipment	-		(44,000)
Stock based compensation	630,000		110,000
Amortization of right of use assets	236,000		510,000
Changes in operating assets and liabilities:
Accounts receivable	3,114,000		(5,241,000)
Accounts receivable - related parties	57,000		(30,000)
Inventories	3,767,000		415,000
Prepaid expenses and other current assets	29,000		215,000
Other non-current assets	-		76,000
Accounts payable	(4,540,000)		5,847,000
Accrued expenses	(1,076,000)		348,000
Prepaids from customers	-		103,000
Refunds due to customers	(2,392,000)		1,743,000
Operating lease liabilities	105,000		(462,000)
Net cash (used in) provided by operating activities	(8,556,000)		411,000
Cash flows from investing activities
Purchase of property and equipment	(70,000)		(68,000)
Pre Acquistion advances to SemiCab	(415,000)		-
Cash received from purchase of SemiCab Inc	17,000		-
Disposal of property and equipment	-		54,000
Advances to SMCB	(1,777,000)		-
Net cash used in investing activities	(2,245,000)		(14,000)
Cash flows from financing activities
Proceeds from sale of common stock and warrants, net of offering costs	12,932,000		3,529,000
Payments on merchant cash advances payable	(631,000)		-
Proceeds from issuance of senior secured notes, net of discounts	2,000,000		-
Payment of senior secured notes	(2,353,000)		-
Payment of debt issuance costs	(225,000)		-
Other	(75,000)		(118,000)
Net cash provided by financing activities	11,648,000		3,411,000
Net change in cash	847,000		3,808,000
Cash at beginning of year	6,703,000		2,895,000
Cash at end of period	$7,550,000		$6,703,000
Supplemental disclosures of cash flow information:
Cash paid for interest	$591,000		44,000
Non-Cash investing and financing cash flow information:
Common stock and subsidiary interests issued for purchase of SemiCab Inc	$568,000	$	-
Right of use assets exchanged for lease liabilities	$136,000		$3,874,000
Issuance of common stock with debt	$943,000	$	-
Repurchase of common shares - related parties	$758,000	$	-
Effect of extinguishment of advances to SemiCab Inc.	$415,000	$	-

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