Algorhythm Highlights Potential $70 Million Project Cash Value as Azure Energy Advances Renewable Power Development

Azure has alternative paths to project value: income through a minority equity stake or potential sale proceeds after final permitting.

Rhea-AI Summary

Algorhythm Holdings (RIME) outlined potential equity proceeds of approximately $7 million from a sale of Azure Energy’s North Carolina power project.

The 100 MW biomass facility is under development. Its first 50 MW phase is expected to operate in approximately 24 months; the second would add 50 MW after another 12 months. Azure is forecast to earn approximately $3 million in 2027 fee income from existing contracts. If completed as scheduled, Algorhythm expects annual EBITDA, earnings before interest, taxes, depreciation and amortization, exceeding $4 million through its minority stake once operational in late 2028.

Alternatively, a sale after final permitting has an estimated project value of up to $70 million. Azure would receive approximately $7 million for its stake plus transaction-management fees if sold. Azure expects to begin marketing the project and fully evaluate offers before the end of Q4 2026.

6 points · 2 major

PositiveiHow this balance works

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0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Approximately $3 million in 2027 fee income is forecast for Azure from existing contracts.
• Major point. Forward-looking: it has not happened yet and may not happen.Annual EBITDA exceeding $4 million is expected through Algorhythm’s minority stake once operational in late 2028.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Approximately $7 million in equity proceeds plus transaction-management fee income would go to Azure if sold. 2.5× market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.First-phase capacity of 50 MW is expected to be fully operational in approximately 24 months.
• Minor point. Forward-looking: it has not happened yet and may not happen.Second-phase capacity expansion to 100 MW would require an additional 12 months thereafter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Project marketing and full offer evaluation are expected before the end of Q4 2026.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Final permitting must be completed before the alternative project sale.
• Minor point. Forward-looking: it has not happened yet and may not happen.Up to $70 million estimated project value rests on an assumed approximately $1 million per powered acre.
• Minor point. Forward-looking: it has not happened yet and may not happen.Expected annual EBITDA depends on the project being completed as scheduled.

Key Figures

Project capacity: 100 MW First-phase capacity: 50 MW Forecast fee income: Approximately $3 million +4 more

Project capacity

100 MW

North Carolina biomass power project under development

First-phase capacity

50 MW

First phase; expected to be operational in approximately 24 months

Forecast fee income

Approximately $3 million

2027; based on existing contracts

Expected annual EBITDA

In excess of $4 million

Once the facility is operational, expected in late 2028

Estimated project sale value

Up to $70 million

Conditional on sale upon completion of final permitting

Potential equity proceeds

Approximately $7 million

Azure's proceeds if the project is sold

Offer evaluation milestone

Before the end of Q4 2026

Azure expects to begin marketing the project and evaluate offers

Historical Context

1 past event · Latest: Oct 07

1 event

1. Oct 07

   Renewable process introduction

   24h Move

   -0.7%

   Introduced Azure's wood-to-electricity process; this announcement adds project-specific development and monetization details.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pyrolysis-to-power, baseload capacity, dispatchable electricity, ebitda

4 terms

pyrolysis-to-power technical

"pyrolysis-to-power generation facility currently under development"

A waste- or biomass-to-energy process that thermally decomposes organic material at high temperature with little or no oxygen (pyrolysis) to produce combustible gases, oils and char, then uses those pyrolysis products to generate electricity and sometimes heat. The produced syngas or pyrolysis oil is cleaned and burned in engines, gas turbines, or boilers connected to generators, while char can be combusted or used as a carbon product; outputs and efficiency vary with feedstock and reactor design. Distinct from incineration and gasification, pyrolysis relies on low-oxygen thermal breakdown and typically requires downstream gas/oil conditioning and emissions controls to produce reliable power.

baseload capacity technical

"produce baseload capacity around the clock"

Baseload capacity is the portion of power generation that can run continuously to meet the minimum, always-present demand on the electricity grid, like the appliances in your home that stay on 24/7. For investors, baseload assets matter because they typically provide steady, predictable revenue and lower risk compared with intermittent sources; their reliability, operating costs and long-term contracts affect a utility or energy company's cash flow and asset value.

dispatchable electricity technical

"firm, dispatchable electricity and water"

Dispatchable electricity is power that can be turned on or off, or scaled up and down, on demand to meet the grid’s needs—like a standby generator you can start when traffic spikes. It matters to investors because dispatchable sources provide predictable, controllable supply and revenue, help balance intermittent renewables, reduce blackout risk, and often command premium prices for reliability in power markets.

ebitda financial

"earn in excess of $4 million in EBITDA annually"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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Company Identifies Potential $7 Million Equity Proceeds from Strategic Sale of North Carolina 100 MW Project

Fort Lauderdale, FL, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME) – a diversified holding company and owner of Azure Energy, a renewable power plant developer (“Azure”), and SemiCab Holdings, an AI-enabled logistics provider, today provided details of one of its significant sources of revenue and value creation, a 100MW biomass renewable power plant project in North Carolina.

The project is a 100 MW pyrolysis-to-power generation facility currently under development in western North Carolina. The facility will convert regional woody biomass into firm, dispatchable electricity and water. It will be able to produce baseload capacity around the clock, which makes it suitable for industrial and advanced manufacturing users that cannot tolerate intermittency or curtailment. The project is divided into two separate timelines and deliverables. The first phase is expected to generate 50MW of power and is expected to be fully operational in approximately 24 months. The second phase would double the production capacity to 100MW and would require an additional 12 months to come online thereafter.

Based on existing contracts, Azure is forecast to earn approximately $3 million in fee income in 2027. Azure also has two clearly defined paths to unlock additional value from the project in the future. First, if the project is completed as scheduled, the Company expects to earn in excess of $4 million in EBITDA annually through its minority equity stake once the facility is operational in late 2028. Alternatively, the project could be sold upon completion of final permitting, with an estimated value of up to $70 million, based on an assumed valuation of approximately $1 million per powered acre, consistent with Colliers' 2026 U.S. Data Center Marketplace Report. If sold, Azure would receive approximately $7 million for its equity stake, plus additional fee income for managing the transaction. Azure expects to begin marketing the project and fully evaluate offers before the end of Q4 2026.

"Our North Carolina project is one of three active, highly attractive projects our team is helping advance today," commented Andrew Thompson, CEO of Algorhythm Holdings. “It is in the most advance stage of all of the projects, and we view its near-term value as central to enhancing our balance sheet, clearing legacy financings, and positioning the Azure to accelerate growth in 2027. We are quickly progressing towards fully monetizing the value we stand to generate from this project in the coming months.”

About Algorhythm Holdings

Algorhythm Holdings, Inc. (NASDAQ: RIME) is a diversified holding company focused on identifying, acquiring, and scaling innovative businesses in high-growth markets. The Company's two primary operating businesses are Azure Energy and SemiCab Holdings. Azure Energy provides strategic and technical advisory services for renewable biomass power generation infrastructure. Since launching in 2025, Azure has secured equity interests in multiple U.S. power projects currently under development, with an estimated aggregate net present value exceeding $220 million, while establishing multi-year consulting contracts that provide recurring fee revenue. For additional information about Azure Energy, please visit www.azure-energy.co.

Algorhythm Holdings, Inc. also owns and operates SemiCab, an AI-enabled logistics software provider. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform is designed to provide the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com.

Investor Relations Contact

Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in the Company’s reports filed with the SEC, including, without limitation the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much could Algorhythm’s Azure Energy receive from selling the North Carolina power project?

Azure would receive approximately $7 million for its equity stake, plus additional fee income for managing the transaction, if the project is sold. The alternative sale path follows completion of final permitting and carries an estimated project value of up to $70 million.

What income does Algorhythm expect from the North Carolina power project?

Azure is forecast to earn approximately $3 million in fee income in 2027 based on existing contracts. If the project is completed as scheduled, Algorhythm expects annual EBITDA exceeding $4 million through its minority equity stake once the facility is operational in late 2028.

What is the basis for Algorhythm’s North Carolina project valuation?

The estimated value of up to $70 million is based on an assumed valuation of approximately $1 million per powered acre. Algorhythm describes that assumption as consistent with Colliers’ 2026 U.S. Data Center Marketplace Report.