Algorhythm Holdings Secures $2 Million in Funding Amidst Financial Challenges and AI-Driven Logistics Innovations

Algorhythm Holdings, Inc. Announces $2 Million Registered Direct Offering

, (GLOBE NEWSWIRE) -- (Nasdaq: RIME) ("Algorhythm" or the "Company"), an AI-driven technology and consumer electronics holding company today announced that it has entered into a definitive agreement with several investors for the purchase and sale of an aggregate of 24,067,388 of the Company's common stock, par value per share (the "Common Stock") at a purchase price of 0.0831 per share in a registered direct offering priced at-the-market under Nasdaq rules. The aggregate gross proceeds to the Company of this offering are expected to be approximately . The transaction is expected to close on or about , subject to the satisfaction of customary closing conditions. is acting as the sole placement agent. The registered direct offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-269183) previously filed by the Company and declared effective by the ("SEC") on . A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the and will be available on the website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting at [email protected], or by calling +1 (212) 343-8888. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Copies of the prospectus supplement relating to the registered direct offering, together with the accompanying base prospectus will be filed by the Company and, upon filing, can be obtained at the website at www.sec.gov. About is a holding company with two primary investments. First, the Company owns , an emerging leader in the AI-enabled global logistics industry. Second, the Company owns , the worldwide leader in the consumer karaoke industry. SemiCab is a cloud-based Collaborative Transportation Platform built to achieve the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. To orchestrate collaboration across manufacturers, retailers, distributors, and their carriers, SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners. To build fully loaded round trips, SemiCab uses AI/ML predictions and advanced predictive optimization models. On the SemiCab platform, shippers pay less and carriers make more while not having to change a thing. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. SemiCab's Orchestrated Collaboration AI model has proven to increase transportation capacity, improve asset utilization, reduce empty miles, lower logistics costs, and provide visibility into the entire transportation network. Models show the technology has the capability of saving shippers tens of billions of dollars annually through optimization. Further, SemiCab's technology also has the potential to play a key role in the improved sustainability model globally. Based on its proven ability to improve truck utilization rates from 65% to over 90%, this results in a dramatic reduction in the carbon footprint of the industry. The optimization of existing truck utilization can add approximately 30% more trucking capacity without adding more trucks, drivers or driven miles which addresses common problems plaguing the industry like severe driver shortage and road congestion. Trucking optimization could also eliminate approximately 25% of CO2 emissions attributable to road freight. For additional information regarding SemiCab: http://www.semicab.com is the worldwide leader in consumer karaoke products. Based in , and founded over forty years ago, the Company designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Their portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products and is also developing the world's first globally available, fully integrated in-car karaoke system. The Company also has a new philanthropic initiative, -eoke by , to focus on the social impact of karaoke for children and adults of all ages who would benefit from singing. Their products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam's Club, Target, and Walmart. To learn more, go to www.singingmachine.com. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the .

Algorhythm Holdings announces $2 million stock sale By Investing.com

FORT LAUDERDALE - Algorhythm Holdings, Inc. (NASDAQ:RIME), a technology and consumer electronics company with a current market capitalization of $1.15 million, has disclosed a registered direct offering of its common stock, which is expected to result in $2 million in gross proceeds for the company. According to InvestingPro data, the company's stock has experienced significant volatility, declining over 93% in the past year. The firm has agreed to sell approximately 24.07 million shares at a price of $0.0831 each. The transaction is scheduled to close on December 18, 2024, given all customary conditions are met. InvestingPro analysis indicates the company is currently trading below its Fair Value, with concerning financial health metrics including a weak overall financial health score and rapidly diminishing cash reserves. Univest Securities, LLC is serving as the exclusive placement agent for this offering. This sale of shares is being conducted in accordance with a shelf registration statement previously filed and declared effective by the U.S. Securities and Exchange Commission (SEC) on January 20, 2023. Algorhythm Holdings is known for its two primary investments: SemiCab Holdings, a company in the AI-enabled global logistics industry, and The Singing Machine Company, a leader in the consumer karaoke market. SemiCab's platform utilizes AI and machine learning to enhance transportation efficiency, while The Singing Machine Company offers a variety of karaoke products and is developing an in-car karaoke system. The company's recent announcement follows the SEC guidelines, and the final prospectus supplement and accompanying prospectus will be available on the SEC's website. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Algorhythm's AI-driven logistics platform, SemiCab, has shown potential in reducing costs and carbon emissions in the transportation sector by optimizing truck utilization rates. The Singing Machine Company, on the other hand, has a global presence in the karaoke industry and is involved in philanthropic initiatives through its CARE-eoke program. Financial metrics from InvestingPro reveal the company's challenges, with a negative EBITDA of $10.6 million and revenue decline of 16.2% in the last twelve months. Subscribers to InvestingPro can access 17 additional ProTips and a comprehensive Pro Research Report for deeper insights into RIME's financial position and growth prospects. The company cautions that this announcement contains forward-looking statements subject to risks and uncertainties and that actual results may differ materially from those projected. Investors are encouraged to review factors that may affect the company's future results as detailed in the company's SEC filings. This article is based on a press release statement. In other recent news, Algorhythm Holdings, Inc. has announced a series of significant developments. The technology and consumer electronics holding company priced a public offering expected to generate approximately $9.5 million in gross proceeds. The funds raised are slated for working capital, general corporate purposes, and to repay certain outstanding senior secured notes, according to Univest Securities, the sole placement agent for the transaction. Additionally, Algorhythm Holdings has regained compliance with Nasdaq's minimum stockholders' equity requirement following a period of non-compliance. This was achieved through a successful compliance plan that included an At-The-Market Issuance Sales Agreement with Ascendiant Capital Markets, LLC, and the acquisition of SemiCab, Inc., resulting in the issuance of over 4 million shares of common stock. Moreover, the company secured approximately $2 million in funding through a Securities Purchase Agreement, issuing 2,300,000 shares of common stock. The net proceeds are planned for working capital and other general corporate purposes. Furthermore, Algorhythm Holdings has formed a partnership with Apollo Tyres (NS:APLO), India's largest tire manufacturer, through its subsidiary SemiCab India. This partnership aims to optimize freight logistics with an AI-powered platform. Despite a decrease in net sales and gross profit, Algorhythm Holdings has announced a strategic shift towards the automotive and connected TV sectors. These are the recent developments for Algorhythm Holdings. However, Nasdaq has cautioned that if Algorhythm Holdings does not demonstrate continued compliance in its next SEC periodic report, it may face delisting.