Algorhythm Holdings, Inc. (NASDAQ: RIME) received an additional $9.5 million under its existing $20 million financing facility, bringing the total capital raised under the facility to $19.5 million and leaving the company with approximately $12.5 million in cash on hand. The company also repaid roughly $7 million of the initial $10 million drawn under the facility, further improving its liquidity position.
The infusion is earmarked to support the continued expansion of the company’s SemiCab AI‑enabled logistics platform in India, the United States, and other international markets. By bolstering its balance sheet, Algorhythm aims to accelerate growth of its high‑margin, high‑volume freight‑optimization business and reduce reliance on external debt or equity issuances.
CEO Gary Atkinson said the company is now fully funded to execute its business plan in the US and India through 2026, adding that it has received almost all of the funds available under the facility, which added significant stockholders’ equity to the balance sheet and placed the company in the strongest financial position it has ever been in.
Prior period financials highlight the company’s ongoing challenges: Q3 2025 revenue was $1.7 million with a net loss of $3.0 million and $2.8 million in cash and equivalents. For the last 12 months, revenue was $26.39 million with losses of $28.70 million. The company has also faced Nasdaq compliance issues related to minimum bid price and stockholder equity requirements, underscoring the importance of the new capital infusion.
The capital infusion supports the scaling of SemiCab’s truck‑utilization technology, which has already driven a jump in the platform’s annualized revenue run rate from $2.5 million at the end of 2024 to $9.7 million in 2025. Management projects the run rate to reach $15–20 million by the end of 2026, and the new funding will help accelerate that trajectory while improving margins as the platform scales.
The infusion positions Algorhythm to accelerate growth of its core SemiCab business, but the company remains focused on achieving profitability and maintaining Nasdaq compliance as it expands into new geographies.
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