Algorhythm Q2 Revenue Jumps 161% to $3M on Expanded India Contracts
RIME sits 15% above its 52-week low of $0.39 on elevated volume (2.9× avg).
Summary
Algorhythm Holdings reported Q2 revenue of $3.0 million, up 161% year-over-year and 25% sequentially, driven by expanded SemiCab contracts in India. Gross margin improved 850 basis points sequentially. The company expanded its contract with Procter & Gamble India, increasing annualized contract value by about 32%, and signed a new master services agreement with Onida Electronics. The company reported a Q2 loss per share of 25 cents. Despite the strong top-line growth, the company faces significant financial distress: a going concern warning, material internal control weaknesses, and multiple debt defaults were disclosed in the same 10-Q filing. The stock trades at $0.45, far below the $1.00 Nasdaq minimum bid requirement, and the company is under a delisting notice.
At the time of this announcement, RIME was trading at $0.45 on NASDAQ in the Technology sector, with a market capitalization of approximately $7M. The 52-week trading range was $0.39 to $4.58. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.