XML 38 R24.htm IDEA: XBRL DOCUMENT
v3.25.1

Segment Information and Revenue Disaggregation | 12 Months Ended
--- | ---
Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Information and Revenue Disaggregation | Note 15 – Segment Information and Revenue Disaggregation Segment Information As previously detailed in Note 3 – Summary of Significant Accounting Policies – Segment Reporting, pursuant to ASC 280, the Company’s Chief Executive Officer serves as the Company’s Chief Operating Decision Maker (“CODM”) for the purposes of ASC 280. The CODM concluded that the Company operates two reportable segments. One segment consists of its Singing Machine business and the other segment consists of its SemiCab business. The CODM manages the Company’s operations and business separately for each operating segment and uses net sales and net loss to allocate resources, making operating decisions and evaluating financial performance. The CODM also uses net sales and net loss, along with non-financial inputs and qualitative information, to evaluate the Company’s performance, establish compensation, monitor budget versus actual results, and decide the level of investment in various operating activities and other capital allocation activities. ALGORHYTHM HOLDINGS, INC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 The following table details the revenues, significant expenses and other segment items regularly provided to the CODM: Schedule of Details the Revenue, Significant expenses and Other Segment
|  | Year Ended December 31, 2024 |  |  | Nine Months Ended December 31, 2023 |
|  | Singing Machine |  |  | SemiCab |  |  | Total |  |  | Singing Machine |  |  | SemiCab |  |  | Total |
Revenues |  | $ | 23,197,000 |  |  | $ | 297,000 |  |  | $ | 23,494,000 |  |  | $ | 29,198,000 |  |  | $ | - |  |  | $ | 29,198,000 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted cost of revenues |  |  | 18,222,000 |  |  |  | 491,000 |  |  |  | 18,713,000 |  |  |  | 23,008,000 |  |  |  | - |  |  |  | 23,008,000 |
Adjusted sales and marketing |  |  | 2,874,000 |  |  |  | - |  |  |  | 2,874,000 |  |  |  | 3,717,000 |  |  |  | - |  |  |  | 3,717,000 |
Adjusted general and administrative (1) |  |  | 9,935,000 |  |  |  | 1,014,000 |  |  |  | 10,949,000 |  |  |  | 8,219,000 |  |  |  | - |  |  |  | 8,219,000 |
Adjusted depreciation and amortization |  |  | 191,000 |  |  |  | 31,000 |  |  |  | 222,000 |  |  |  | 287,000 |  |  |  | - |  |  |  | 287,000 |
Share based compensation |  |  | 578,000 |  |  |  | 52,000 |  |  |  | 630,000 |  |  |  | 110,000 |  |  |  | - |  |  |  | 110,000 |
Impairment of goodwill |  |  | - |  |  |  | 3,592,000 |  |  |  | 3,592,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Impairment of note receivable |  |  | - |  |  |  | 439,000 |  |  |  | 439,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Change in fair value of warrant liability |  |  | (334,000 | ) |  |  | - |  |  |  | (334,000 | ) |  |  | - |  |  |  | - |  |  |  | - |
Gain on disposal of fixed assets |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (44,000 | ) |  |  | - |  |  |  | (44,000 | )
Loss on issuance of warrants |  |  | 8,889,000 |  |  |  | - |  |  |  | 8,889,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Interest expense |  |  | 1,660,000 |  |  |  | 227,000 |  |  |  | 1,887,000 |  |  |  | 299,000 |  |  |  | - |  |  |  | 299,000 |
Segment net loss |  | $ | (18,818,000 | ) |  | $ | (5,549,000 | ) |  | $ | (24,367,000 | ) |  | $ | (6,398,000 | ) |  | $ | - |  |  | $ | (6,398,000 | )
Total segment assets |  | $ | 16,301,000 |  |  | $ | 1,215,000 |  |  | $ | 17,516,000 |  |  |  |  |  |  |  |  |  |  |  |  |
(1) | Excludes depreciation and amortization, share-based compensation, impairment of goodwill and impairment of a note receivable.
The following reconciles total segment assets to consolidated total assets as of December 31, 2024: Schedule of Reconcilation of Segment Assets to Consolidated
|  | December 31, 2024 |
Total segment assets |  | $ | 17,516,000 |
Goodwill |  |  | 786,000 |
Total assets |  | $ | 18,302,000 |
The Company only had one reportable segment for the nine months ended December 31, 2023, which consisted of its Singing Machine business. As the Company only had one reportable segment, the measure of segment assets at December 31, 2023 is reported on the balance sheet as total consolidated assets. Revenue Disaggregation The Company disaggregates revenues by product line and major geographic region as most of its revenue is generated by the sales of karaoke products. Revenue by product line is as follows: Schedule of Revenue by Product Line
Product Line |  | Year Ended December 31, 2024 |  |  | Nine Months Ended December 31, 2023 |
Classic Karaoke Machines |  | $ | 16,516,000 |  |  | $ | 24,189,000 |
Licensed Products |  |  | 486,000 |  |  |  | 549,000 |
Kids Youth Electronics |  |  | 959,000 |  |  |  | 565,000 |
Microphones and Accessories |  |  | 4,411,000 |  |  |  | 3,283,000 |
Music Subscriptions |  |  | 825,000 |  |  |  | 612,000 |
Logistics Services |  |  | 297,000 |  |  |  | - |
Total Net Sales |  | $ | 23,494,000 |  |  | $ | 29,198,000 |
ALGORHYTHM HOLDINGS, INC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 Revenue by geographic region is as follows: Schedule of Revenue by Geographical Region
|  | Year Ended December 31, 2024 |  |  | Nine Months Ended December 31, 2023 |
North America |  | $ | 22,191,000 |  |  |  | 28,763,000 |
Australia |  |  | 1,075,000 |  |  |  | 205,000 |
Europe and United Kingdom |  |  | 184,000 |  |  |  | 226,000 |
All Others |  |  | 44,000 |  |  |  | 4,000 |
Total Net Sales |  | $ | 23,494,000 |  |  |  | 29,198,000 |
The geographic area of sales is based primarily on where the product was delivered. The Company’s accounts receivable balance, net of an allowance of $139,182, was$7,305,920 as of December 31, 2022.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration