Algorhythm Holdings, Inc.

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.

Algorhythm Holdings reported a significant increase in net sales to $2.4 million for Q1 2026, up from $123,000 in Q1 2025, while narrowing its net loss to $5.38 million from $9.29 million year-over-year. The company also saw a substantial improvement in its financial position, moving from a shareholder deficit to positive equity of $3.17 million. Despite these improvements, the company issued a going concern warning, citing insufficient cash to fund operations for at least one year and a history of operating losses. The company has transitioned its focus to its SemiCab AI technology business after selling its Singing Machine business in August 2025.

Algorhythm Holdings, Inc. recapped SemiCab's Inaugural Freight Network Forum, where industry leaders from DAT Freight & Analytics, Bernstein Research, and SemiCab discussed the structural nature of US freight cost pressures. The panel concluded that traditional responses are inadequate for current market challenges. Key insights included the potential for a legitimate driver shortage due to regulatory changes and the inefficiency in freight residing between enterprises, which SemiCab's AI-powered platform aims to address by significantly reducing empty miles.

Algorhythm Holdings, Inc. announced it will release its financial results for the first quarter ended March 31, 2026, on Thursday, May 14, 2026. Management will host a conference call on the same day at 10:00 a.m. Eastern Time to discuss the results and provide a business update. An audio rebroadcast of the call will be available later in the day on the company's investor relations website.