In This Story
Algorhythm Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing shows net sales for the quarter were $10,622,000, down from $15,931,000 in the same quarter the previous year. The decrease in sales is attributed to lower sell-through results from major customers, particularly Walmart (WMT+0.77%).
Gross profit for the quarter was $2,375,000, compared to $3,734,000 in the previous year, reflecting the decrease in net sales.
Operating expenses decreased to $1,118,000 from $3,628,000, largely due to a gain on early termination of a lease agreement, which resulted in a gain of $3,874,000.
The company reported a net income of $1,195,000 for the quarter, compared to $97,000 in the previous year.
Algorhythm completed an asset purchase agreement with SemiCab, Inc., acquiring substantially all assets and certain liabilities, and issued 641,806 shares of common stock as part of the transaction.
The company entered into a Securities Purchase Agreement, issuing secured notes with a principal amount of $2,352,941 for net proceeds of $2,000,000.
Algorhythm terminated its revolving credit facility with Oxford Commercial Finance, paying a termination fee of $40,000.
The company has a working capital deficit of $2,082,000 as of September 30, 2024, and acknowledges substantial doubt about its ability to continue as a going concern.
The filing details ongoing legal proceedings, including a settlement agreement for a lease dispute and a lawsuit related to a contract breach for IT services.
Algorhythm's stockholders' equity was approximately $2.7 million, and the company is working to maintain compliance with NASDAQ listing requirements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Algorhythm Holdings Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.