Good day, everyone, and welcome to the Algorhythm Holdings Full Year 2025 Financial Results Earnings Call. My name is Elvis, and I'll be your operator today. As a reminder, this call is being recorded. We have a brief safe harbor statement, and then we'll begin. This call contains forward-looking statements under U.S. federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of these risks and uncertainties can be found in the reports filed with the Securities and Exchange Commission, including the cautionary statement provided in our current and periodic filings. Now I'll turn the call over to your host, Gary Atkinson, Company CEO. Please go ahead, Gary.

Thank you. Good morning, ladies and gentlemen, and thank you for joining our 2025 year-end earnings call. My name is Gary Atkinson, CEO of Algorhythm Holdings, and I'm joined this morning by our CFO and General Counsel, Alex Andre. We're excited to share the momentum behind SemiCab, our AI-powered logistics platform and the significant traction that we've gained this year. Over the past six weeks, we've seen an extraordinary surge in attention, both from the media and from within the logistics industry, all around our technology and its potential to solve one of freight's most persistent and costly problems today, which is empty miles. This wave of exposure has accelerated our commercial sales pipeline, attracted industry veterans to our company and expanded our reach to key enterprise decision-makers at a scale that we had never anticipated. Before diving into updates, I want to briefly reframe the core problem that we've been setting out to solve and why we believe SemiCab is positioned to lead the next wave in freight technology. Firstly, the global truckload market is the backbone of the world's economy. It is estimated to be a $3 trillion a year industry. However, it's still very deeply inefficient. Today, roughly one in every three miles that a truck drives is driven empty, resulting in close to $1 trillion in avoidable waste and inefficiency every year. The SemiCab platform is purpose-built to address this problem. Our collaborative AI platform continuously optimizes freight movement across multiple enterprises using our core planning, predicting and execution engine to build continuous movements, or as we call them, round trips, to reduce waste. And finally, we've been seeing the results — in a real-world production environment, we've shown that we can reduce empty miles by more than 70%, and we have the capability to handle four times the freight volume without adding any additional headcount when compared to traditional freight brokers. Put simply, we're building a platform that can reshape how $3 trillion of freight flows globally, eliminating up to $700 billion in inefficiency. It's very rare to find a solution that simultaneously helps shippers save money, improves fleet utilization for carriers and can reduce carbon emissions for the environment. This is the kind of systemic change that SemiCab can enable. And I believe we're on the verge of a larger shift that is starting to take place — a movement towards freight as an orchestrated network as opposed to the current environment of freight as a series of independent transactions. I will talk briefly about some of the growth and some of the full-year highlights and then turn the call over to Alex, who will discuss the financial results. In 2025, we secured four new Fortune 500 clients in India and converted five pilot programs into multimillion-dollar contract expansions. That momentum has pushed our annualized revenue run rate to nearly $10 million by year-end, and it is already meaningfully higher in the first quarter of 2026. In addition to that, during the first quarter of 2026, we have already achieved two new customers, MTR Foods and Coca-Cola India, plus an additional contract expansion in India. To date, every single one of our pilot customers that has joined our network has come back to us looking for an expansion, whether it's a geographic expansion through more lanes or more volume. These expansions are driven by real recurring demand from globally recognized shippers. The shift from pilot to scale is accelerating, and we expect this trend to continue. With that, I'll now turn the call over to Alex, who will walk you through some of the results for the 2025 year. Go ahead, Alex.

Thank you, Gary. Hello, everyone. The annual report that we filed with the SEC earlier this morning presented our financial results for the years ended December 31, 2025, and 2024. Our 2025 financial results were heavily impacted by two major transactions that we completed this year. First, on May 2, we acquired SMCB Solutions Private Limited, which owns and operates our SemiCab India business segment. The financial results of SMCB are reflected in our financial statements for the period of May 2, 2025 through December 31, 2025. Second, on August 1, we sold our legacy consumer electronics business. Under applicable GAAP provisions, we reflected all financial results attributed to the consumer electronics business as discontinued operations in our financial statements. As a result, our balance sheet, income statement and statement of cash flows only reflect the financial results of our continuing operations, including the operations of SemiCab. The financial results of the consumer electronics business for all periods reported in our financial statements are reflected in select line items referencing discontinued operations. Moving on to our 2025 financial results. Sales for the year ended 2025 increased 1,370% to $4.4 million from $300,000 last year, primarily due to the acquisition of SemiCab's Indian subsidiary, SMCB, on May 2. During the eight months that we owned it during 2025, SemiCab delivered $4.4 million of revenue. SemiCab's legacy U.S. business was responsible for $300,000 of revenue that we generated during 2024. We recently announced that SemiCab's annualized revenue run rate had increased to almost $10 million during December 2025. During the next 12 months, we expect our revenue to increase substantially with SemiCab's annualized revenue run rate expected to increase to between $15 million and $20 million by the end of 2026. This will be largely attributable to growth in our SemiCab Indian managed services business, but will also reflect some revenue that we expect to begin generating from SemiCab's new SaaS business that we announced this past fall. Gary will discuss each of these business segments further later during this call. Gross loss for 2025 was $1.3 million compared to $194,000 last year. Gross loss is a function of the revenue that SemiCab generates from the managed services that it provides in India and the freight handling and servicing costs that comprise its cost of sales that it incurs in connection with the provision of those services. Under the managed services model, SemiCab pays for access to trucks and generates revenue by using these trucks to complete shipments for its customers. It enters into contracts for access to trucks when it enters new territories in India, then begins generating revenue in these territories as it acquires customers there and is awarded more routes. It takes time for SemiCab to acquire customers and expand its routes to fully utilize the trucks that it has under contract. During this time, SemiCab incurs costs for the trucks that it has under contract, while its revenue scales more gradually as it begins to acquire customers. Consequently, gross margins are negative. As it obtains customers in these territories and is awarded more routes from its customers, SemiCab more fully utilizes the trucks it has in their contract. As the truck utilization rate increases, a greater amount of revenues generated by the trucks spread a larger revenue base over the relatively same cost of the trucks it is using in these territories. As the network matures in each region and the truck utilization rate improves, the growth in revenue begins to outpace the increases in trucking costs. This drives a sharp improvement in gross margins. We view this initial ramp-up period as a necessary investment in long-term scale and profitability. We expect gross loss as a percentage of revenue to decrease over the next 12 months as the growth in revenue that SemiCab generates from obtaining new customers and routes exceeds the increase in cost of sales that it incurs as it enters into contracts for access to additional trucks. Operating expenses for 2025 decreased almost 20% to $6.6 million from $8.2 million last year. The decrease was due primarily to a decrease of $3.6 million for impairment of goodwill that we recorded during 2024, partially offset by an increase of $2 million in general and administrative expenses. We expect general and administrative expenses to increase over the next 12 months as we continue to invest in the growth and development of our SemiCab business. Net loss from continuing operations for 2025 decreased $3.7 million to $15.2 million from $18.9 million last year. Of these amounts, $6.5 million of our 2025 net loss and $8.9 million of our 2024 net loss consisted of one-time noncash charges for warrants that we previously issued and capital raising transactions. The decrease in net loss from continuing operations was due primarily to an increase of $5.2 million for cost of sales, partially offset by an increase of $4.1 million for revenue and a decrease in other expenses. We expect our net loss from continuing operations to decrease over the next 12 months due to the previously described increase in revenue that we anticipate generating and our expectation that we will not incur any future losses related to warrant issuances. However, we expect this decrease to be partially offset by increases in the expenses we will incur in connection with the growth and development of our SemiCab business. Finally, we are pleased to report that our balance sheet has strengthened significantly over the past 12 months. We had cash on hand of $6.1 million at December 31, 2025 and had $10.9 million of cash on hand as of March 25, 2026, putting us in a strong cash position to support the growth and development of our business for the remainder of 2026. Additionally, we reduced our liabilities by almost 50% between December 31, 2024 and December 31, 2025 through a reduction of our outstanding liabilities. This reduction in our liabilities substantially improved our ratio of liabilities to total assets on our balance sheet. That concludes my overview of our 2025 financial results. Gary?

Thank you, Alex. Before I open it up for questions, I want to draw a distinction between our two complementary business models. Firstly, we have our managed services business in India and secondly, we have our recently announced Apex platform, which is our global SaaS offering. Our managed services business in India, as Alex mentioned, is generating all of our revenue today. There, we work with the India business segments of notable enterprise shippers such as Procter & Gamble, Unilever, Kellogg's and recently announced Coca-Cola. In this managed services model, we don't own any of the trucks or employ any of the drivers. We act as a virtual carrier, sourcing trucks and directing their continuous movements through our platform. Contrast that with the new SemiCab Apex platform. We're bringing the same multi-enterprise network model directly to shippers and to third-party logistics providers worldwide through a scalable technology-first subscription model. Apex differs from managed services in the sense that it is high margin and asset light. It delivers recurring SaaS revenue with strong gross margins. It's also very easily globally deployable. It's relevant wherever empty miles are a problem, which is everywhere. It's also very easy to implement, and this is an extremely important point. We are not a TMS system. The SemiCab platform sits adjacent to existing TMS systems and can be integrated simply without a heavy IT lift. I believe Apex represents our future. It's a platform capable of powering millions of loads while saving shippers money, keeping carriers' trucks fully utilized and reducing unnecessary fuel consumption and CO2 emissions. We're laying the groundwork to generate recurring platform fees on every optimized truck movement across every geography. We're excited for what lies ahead, and we're grateful for all of your continued support. And with that now, I'd like to turn the call over for any questions.

Our first question today comes from Theodore O'Neill of Litchfield Hills Research.

Okay. Gary, so on the SaaS business, can you give us some high-level overview of what the pipeline into that looks like, inquiries? And if you've got a — if you're building a dedicated sales team to support that product?

Yes. Thanks, Theodore. I appreciate that question. With all of the recent media attention that we received over the last six weeks or so, it's been really transformative for the business. And not just from a visibility perspective, but we're now talking to some of the largest logistics service providers in the world. These are some everyday household brands that are delivering packages to everybody's front door. We're speaking with key C-level decision-makers that, quite frankly, probably wouldn't have been talking to us months ago. The attention has been profound for what it is able to do for our SemiCab Apex platform. And that's really what makes me the most excited. We have a very strong pipeline now of commercial sales opportunities with some of these largest logistics service providers. Now that being said, these companies do not move quickly. These are medium-term opportunities that are in the pipeline, but those are the types of deals and agreements that I think will be transformative, particularly as we're talking about the Apex SaaS platform with these companies. The margin profile is materially different from what we see in managed services. With Apex, we're looking at closer to the traditional 90% SaaS margin, and it can scale very quickly. So hopefully that answered your question, Theodore.

And what about a dedicated sales team for this?

Yes. So that's the other advantage that we've seen here over the last few weeks — we've actually had quite a strong inbound flow of communication from some industry executives that had seen the media attention. These are people who have been inside the industry long enough to understand how inefficient the empty mile problem is. Over the last 10 to 15 years many technology companies have attempted to solve this problem, often as a passion project. When they saw what we've been doing and had conversations with Ajesh and Vivek, the founder and co-founder of SemiCab, and had a chance to do a demo of the platform, we've been able to attract some really high-caliber talent to the company to help lead some of the sales efforts. These things take time, but we're very optimistic about where the Apex platform can go in the near term.

Okay. And my other question — the question I have for you is on the restricted cash: what are the restrictions there, and how do you access that?

Do you want to tackle that, Alex?

Sure. The restricted cash consists of some of the cash that we received from Streeterville, and it's being held in a reserve account until such time as they are able to purchase securities from us. As that occurs, these funds get released to us. They have been releasing those funds to us over time since we first engaged in that transaction back in November.

From Chardan Capital Markets, we have Jim McIlree.

You mentioned that it will take some time to roll out Apex. I'm curious about two things. One, can you put a range around how much time you think it will take for customers to roll it out? And then secondly, what are the obstacles or objections that the customers have? Do they require testing for a short or extended period of time? Can it only work on certain vehicles? Are they concerned about service and support? Are they concerned about your balance sheet? Just general things like that — what are the pipeline customers worried about before they move forward?

That's a great question, Jim. I want to clarify something because there's been a bit of misconception. The Apex platform is already developed and available today for customers to utilize. It is not a heavy TMS system; it sits adjacent to existing TMS systems. We're not talking about a long, multi-month expensive integration cycle to get the platform up and working. It's a relatively light TMS-adjacent cloud-based platform that customers can connect to through some simple APIs. So it's not a technology restraint in terms of having customers use it. It's really more of a commercial agreement cycle that has to happen. We've had strong engagement and strong response. When we engage with prospective customers, we ask them for historical shipping data, whether it's six months or a year. We ingest that data into our SemiCab AI optimizer engine, and it can show a customer how much they could have saved over that period — number of miles and freight spend reductions. We bundle that analysis back up and give it to the customer. It's hard for a shipper to ignore those types of cost savings that could be accessible to them without any loss of service. It's the same quality of service in pickups and deliveries but done more efficiently. That has been a very effective selling tactic. Previously, when we presented multi-network or multi-enterprise collaborative shipping networks at conferences, some in the industry perceived it as too theoretical. The recent media attention has shifted perception: industry participants are now looking at our platform as the next key change in freight technology. That broader acceptance has helped our commercial conversations, but these are not overnight deals.

Can I press you a little bit on timing in terms of what customers might require for their testing before they roll out? I'm assuming they're going to test it first. Would they test for a month, six months? Or is that discussion taking place yet?

It's hard to give a one-size-fits-all timeframe. Every customer, depending on size and risk tolerance, will have different appetites. A top-five logistics service provider that is multi-billions in revenue will be more cautious and will take more time and testing. The nice thing about our platform is we can enable a private cloud network or a public cloud network. For a large enterprise shipper that owns a dedicated fleet, we can create a private cloud for them where all their assets are on a completely private network. We've been surprised at how much inefficiency exists even within large Fortune 500 shippers moving consumer goods across a country. There are tremendous opportunities to improve efficiency. We don't have anybody poised to sign contracts today, but there are many ongoing conversations that are optimistic. Each customer will decide how quickly they want to onboard, so it is difficult to give a precise date.

And next, you'll hear from Brian.

Gary, good morning. You've really addressed my initial question. So just a follow-up on a few things you said. Obviously, there's been significant media attention, which is great. And you've also seen the dramatic increase in your cash position. As you think about the next 12 to 24 months or so, what are one or two key drivers that you believe could have the biggest impact on future revenue growth?

That's a great question, Brian. I think the biggest driver will be the SaaS model and how quickly we can turn on that high-margin business. Internally, that's where we're investing: sales channels, pipeline development and hiring to support SaaS opportunities and partnerships. Landing SaaS contracts will be transformative to our financial profile because it's recurring revenue, it carries a higher valuation multiple and it is sticky. When a customer understands that we can reduce empty miles by upwards of 70%, those numbers are jaw-dropping inside the industry. We've had lanes where empty miles were 10% or less. When you bring that technology into an enterprise customer with huge scale, the efficiency opportunities and savings are significant. We are still in the early stages, probably in the first or second inning, but there is a lot of enthusiasm around what this technology can unlock.

That concludes our question-and-answer session. Gary, back over to you for any additional or closing comments.

Okay. Perfect. Well, again, I want to thank everybody for taking the time today to learn more about Algorhythm Holdings and for doing a deeper dive into our 2025 year-end financial results. I particularly appreciate all the good questions today. We've just recently concluded our first quarter ended March 31, and we'll be looking forward to sharing all of those results with you next month. So take care, everybody. Thank you, and we'll talk again soon.

That concludes our meeting today. You may now disconnect.