Algorhythm Holdings Announces Supply Chain Finance Facility with Bank of America for SemiCab India

Rhea-AI Summary

Algorhythm Holdings (NASDAQ: RIME) has announced that its subsidiary, SemiCab India, has secured a supply chain finance receivables facility with Bank of America. This non-dilutive facility will provide access to working capital by enabling accelerated payment on eligible accounts receivable from its three largest global FMCG, industrial, and automotive customers in India.

The facility offers financing at 1% above the Indian one-year Treasury Bill rate (approximately 5.6%) with no limit on eligible receivables. Combined with their recent $4.4 million financing, this ensures capitalization through 2026 to support SemiCab's growth in AI-powered logistics and distribution solutions.

Positive

• Secured low-cost financing at approximately 5.6% interest rate
• Non-dilutive facility with no equity-linked provisions
• Unlimited financing available for eligible accounts receivable
• Combined with recent $4.4M financing ensures capitalization through 2026

Negative

• Facility limited to only three largest customers currently
• Success dependent on continued relationship with major clients

Insights

Financial Analyst

Algorhythm secured a low-cost financing facility leveraging major clients' credit quality, reducing capital needs while supporting growth.

Algorhythm Holdings' subsidiary SemiCab India has secured a significant working capital solution through a supply chain finance facility with Bank of America. This facility essentially allows SemiCab to get paid early on receivables from its three largest global customers at a remarkably low interest rate of approximately 5.6% (1% above Indian one-year T-Bill rate).

The key advantage here is twofold: SemiCab can accelerate cash conversion from its largest customers without limit, while borrowing at rates far below what would typically be available to a company of its size. This works because the facility leverages the superior credit quality of SemiCab's major multinational clients in the FMCG, industrial, and automotive sectors.

The structure is notably non-dilutive with no equity components, preserving shareholder value. When paired with their recent $4.4 million financing round, the company appears to have sufficient capital runway into 2026 while reducing their reliance on equity markets for growth capital.

This arrangement signals strong relationships with major clients and provides exceptional financial flexibility—allowing SemiCab to invest in growth while maintaining a healthier cash conversion cycle. The ability to tap into what are essentially their largest customers' lower borrowing costs represents a significant competitive advantage in scaling their AI-powered logistics solutions without the typical capital constraints facing growth-stage technology companies.

 Multi-Million Dollar, Non-Dilutive Facility Supports
SemiCab’s Three Largest Global Customers

Fort Lauderdale, FL, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME), an AI technology holding company, announced today that its subsidiary, SMCB Solutions Private Limited (“SemiCab India), has secured a supply chain finance receivables facility with Bank of America.

The facility provides SemiCab India with access to low-cost, non-dilutive working capital by enabling accelerated payment on all eligible accounts receivable for services provided to its three largest global customers, which are some of the largest multinational fast moving consumer goods (“FMCG”) industrial and automotive companies in India. The Bank of America facility allows accelerated payment on eligible accounts receivable, without limit, at a rate of 1% above the Indian one-year Treasury Bill rate, currently equivalent to approximately 5.6%. The arrangement is entirely non-dilutive and carries no equity or equity-linked provisions.

“This milestone demonstrates both our importance as a strategic partner and the quality of capital now available to SemiCab,” said Gary Atkinson, CEO of Algorhythm. “Our largest clients’ global financing programs will allow us to leverage their exceptionally low cost of capital to accelerate the collection of accounts receivable. This facility gives us access to immediate working capital at a fraction of traditional financing costs, enabling us to scale faster without relying heavily on the capital markets for equity financing.”

Atkinson added, “Pairing this program with our recent $4.4 million financing ensures that we are sufficiently capitalized into 2026 to support SemiCab’s accelerating growth. Expanding these client-driven financing solutions across more relationships is a key priority for us as we execute upon our plan to grow SemiCab into the market leader in AI-powered logistics and distribution solutions.”

About Algorhythm Holdings

Algorhythm Holdings, Inc. is an AI technology company focused on the growth and development of SemiCab, an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves 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 Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2024. 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

What type of financing facility did Algorhythm Holdings (RIME) secure with Bank of America?

Algorhythm secured a supply chain finance receivables facility that provides accelerated payment on eligible accounts receivable at approximately 5.6% interest rate (1% above Indian T-Bill rate).

How will the Bank of America facility benefit Algorhythm's subsidiary SemiCab India?

The facility provides access to low-cost, non-dilutive working capital through accelerated payment collection from its three largest global customers, enabling faster scaling without relying on equity financing.

What is the interest rate for Algorhythm Holdings' (RIME) new financing facility?

The facility's interest rate is set at 1% above the Indian one-year Treasury Bill rate, currently equivalent to approximately 5.6%.

How long will Algorhythm Holdings' (RIME) current capitalization last?

With the combination of this facility and their recent $4.4 million financing, Algorhythm is sufficiently capitalized into 2026.

Which customers are eligible for Algorhythm's (RIME) supply chain finance facility?

The facility currently covers SemiCab India's three largest global customers in the FMCG, industrial, and automotive sectors in India.