Algorhythm Holdings, Inc.

Algorhythm Holdings, Inc. announced a leadership transition with the immediate resignation of Andrew Thompson as CEO and Chairman. Gregory D. Smith has been appointed as the new CEO and Chairman. Mr. Smith's employment agreement includes a base salary of $375,000, an annual bonus of up to 50% of his base salary, and a grant of 2,119,542 restricted shares. The agreement also outlines severance benefits and equity awards.

Algorhythm Holdings, Inc. announced it will release its financial results for the second quarter ended June 30, 2026, on Friday, August 14, 2026. The company is a leading provider of AI-powered logistics solutions, primarily through its SemiCab platform. SemiCab uses AI/ML predictions to optimize logistics for retailers, brands, and transportation providers globally.

Algorhythm Holdings, Inc. entered into a settlement agreement with Continuation Capital, Inc. to resolve $1.93 million in liabilities by issuing up to 5 million common shares. This issuance is exempt from registration requirements and is designed to allow Continuation Capital to generate proceeds equal to 120% of the claim amount. Additionally, the company amended employment agreements for CEO Gary Atkinson and CFO Alex Andre, harmonizing change of control treatment and detailing new compensation structures, including base salaries, annual bonuses, and significant equity awards.

Algorhythm Holdings reported significant milestones for the first half of 2026, including a $9.5 million capital infusion. The company achieved a $12 million annualized revenue run rate (ARR) in March 2026, marking over a 20% increase from December 2025. First-quarter revenue surged over 71% sequentially and more than 1,800% year-over-year. Algorhythm also expanded its customer base in India with new and existing contracts and made progress in US market penetration with a key sales hire.

Algorhythm Holdings, Inc. entered into an Exchange Agreement with Streeterville Capital, LLC to restructure a portion of its debt. The company partitioned $3.5 million from an existing Secured Pre-Paid Purchase #4 and exchanged it for 3,500 shares of newly created Series A Preferred Stock. This preferred stock, with a stated value of $1,150 per share, accrues a 9% preferred return and ranks senior to common stock, thereby modifying the rights of existing security holders.

Algorhythm Holdings, Inc. entered into a second forbearance agreement with SemiCab, Inc. after failing to make a $1,500,000 payment due on May 2, 2026, related to a $1,750,000 promissory note. SemiCab, Inc. has irrevocably waived the default caused by the missed payment. The agreement extends the forbearance period, preventing SemiCab from taking action until July 16, 2026, to allow the company more time to address the overdue amount.

Algorhythm Holdings, Inc. received a notification from Nasdaq on June 16, 2026, stating it no longer meets the minimum bid price requirement of $1.00 per share. The company's common stock traded below this threshold for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). Algorhythm has 180 calendar days, until December 14, 2026, to regain compliance. The company plans to monitor its stock price and consider options, including a reverse stock split, to meet the requirement.

Algorhythm Holdings, Inc. announced that its subsidiary, SemiCab, will participate as a Gold Sponsor at Reuters Events: Supply Chain USA 2026 in Chicago on June 23rd and 24th. SemiCab will showcase its Apex SaaS platform, which uses AI to manage freight as an interconnected network, aiming to reduce empty miles and lower costs. The company will also host an educational workshop on adapting to market volatility, led by CEO Ajesh Kapoor and VP of U.S. Sales Jonathan Miller. This participation follows a period of accelerating growth for SemiCab, including new enterprise customer wins and contract expansions.

Algorhythm Holdings, Inc. announced it has regained compliance with Nasdaq's continued listing requirement, which mandates a minimum stockholders' equity of $2,500,000. The company had previously received a non-compliance notification on November 28, 2025, and was granted an extension by Nasdaq on January 28, 2026, after submitting a detailed plan. As of March 31, 2026, Algorhythm reported stockholders' equity of $3,168,000, achieved through expense reduction, increased sales from its SemiCab business, and the sale of common stock to Streeterville Capital, LLC.

Algorhythm Holdings' subsidiary, SemiCab India, announced a significant expansion of its managed freight services agreement with Procter & Gamble India. This expansion increases the total annual contract value by 32% to $4.2 million and boosts lane volume by over 50%, from 42 to 65 lanes. This marks the third contract expansion with P&G India, reflecting increased confidence in SemiCab's AI-powered logistics solutions and supporting Algorhythm's strategic expansion into U.S. and European markets.