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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Loss Before Income Taxes | The Company’s loss before income taxes for the year ended December 31, 2024 and the nine months ended December 31, 2023 is as follows: Schedule of Loss Before Income Taxes
|  | 2024 |  |  | 2023 |
United States |  | $ | (24,414,000 | ) |  | $ | (6,173,000 | )
Foreign |  |  | 47,000 |  |  |  | (225,000 | )
Total |  | $ | (24,367,000 | ) |  | $ | (6,398,000 | )
Schedule of Deferred Tax Assets and Liabilities | The Company did not have any provision for income taxes for the year ended December 31, 2024 or the nine months ended December 31, 2023. ALGORHYTHM HOLDINGS, INC AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 The Company’s net deferred tax assets as of December 31, 2024 and 2023 are as follows: Schedule of Deferred Tax Assets and Liabilities
|  | December 31, 2024 |  |  | December 31, 2023 |
NOL Federal Carryforward |  | $ | 4,085,000 |  |  | $ | 1,291,000 |
State NOL Carryforward |  |  | 1,426,000 |  |  |  | 469,000 |
Inventory differences |  |  | 355,000 |  |  |  | 1,173,000 |
Impairment of GoodWIll - Semi Cab |  |  | 674,000 |  |  |  | - |
Stock option compensation expense (SFAS 123R) |  |  | 179,000 |  |  |  | 159,000 |
Intangibles - Semi Cab |  |  | 253,000 |  |  |  | - |
ROU Liability |  |  | 14,000 |  |  |  | 1,022,000 |
Section 163(j) |  |  | 694,000 |  |  |  | 151,000 |
Allowance for doubtful accounts |  |  | 40,000 |  |  |  | 45,000 |
Reserve for estimated returns |  |  | 476,000 |  |  |  | 384,000 |
Accrued vacation |  |  | 20,000 |  |  |  | 8,000 |
Deferred Tax Assets Gross |  | $ | 8,216,000 |  |  | $ | 4,702,000 |
Less: valuation allowance |  |  | (8,039,000 | ) |  |  | (3,600,000 | )
Net deferred tax asset |  | $ | 176,000 |  |  | $ | 1,103,000 |
Depreciable and amortizable assets |  |  | (39,000 | ) |  |  | (67,000 | )
ROU Asset |  |  | (14,000 | ) |  |  | (1,000,000 | )
Warrant Liability |  |  | (92,000 | ) |  |  | - |
Prepaid expenses |  |  | (32,000 | ) |  |  | (35,000 | )
Net deferred tax liability |  | $ | (176,000 | ) |  | $ | (1,103,000 | )
Net Deferred Tax Assets and Liabilities |  | $ | - |  |  | $ | - |
Schedule of Deferred Tax Assets and Liabilities | The Company’s net deferred tax assets as of December 31, 2024 and 2023 are as follows: Schedule of Deferred Tax Assets and Liabilities
|  | December 31, 2024 |  |  | December 31, 2023 |
NOL Federal Carryforward |  | $ | 4,085,000 |  |  | $ | 1,291,000 |
State NOL Carryforward |  |  | 1,426,000 |  |  |  | 469,000 |
Inventory differences |  |  | 355,000 |  |  |  | 1,173,000 |
Impairment of GoodWIll - Semi Cab |  |  | 674,000 |  |  |  | - |
Stock option compensation expense (SFAS 123R) |  |  | 179,000 |  |  |  | 159,000 |
Intangibles - Semi Cab |  |  | 253,000 |  |  |  | - |
ROU Liability |  |  | 14,000 |  |  |  | 1,022,000 |
Section 163(j) |  |  | 694,000 |  |  |  | 151,000 |
Allowance for doubtful accounts |  |  | 40,000 |  |  |  | 45,000 |
Reserve for estimated returns |  |  | 476,000 |  |  |  | 384,000 |
Accrued vacation |  |  | 20,000 |  |  |  | 8,000 |
Deferred Tax Assets Gross |  | $ | 8,216,000 |  |  | $ | 4,702,000 |
Less: valuation allowance |  |  | (8,039,000 | ) |  |  | (3,600,000 | )
Net deferred tax asset |  | $ | 176,000 |  |  | $ | 1,103,000 |
Depreciable and amortizable assets |  |  | (39,000 | ) |  |  | (67,000 | )
ROU Asset |  |  | (14,000 | ) |  |  | (1,000,000 | )
Warrant Liability |  |  | (92,000 | ) |  |  | - |
Prepaid expenses |  |  | (32,000 | ) |  |  | (35,000 | )
Net deferred tax liability |  | $ | (176,000 | ) |  | $ | (1,103,000 | )
Net Deferred Tax Assets and Liabilities |  | $ | - |  |  | $ | - |
Schedule of Tax Provision | The actual tax provision differs from the “expected” tax for the year ended December 31, 2024 and the nine months ended December 31, 2023 (computed by applying the U.S. Federal Corporate tax rate of 21% to income before taxes) as follows: Schedule of Tax Provision
|  | December 31, 2024 |  |  | December 31, 2023 |
Expected tax expense (benefit) |  | $ | (5,117,000 | ) |  | $ | (1,344,000 | )
State income taxes, net of Federal income tax effect |  |  | (1,574,000 | ) |  |  | (326,000 | )
Permanent differences |  |  | (441,000 | ) |  |  | 104,000 |
Permanent difference loss on issuance of warrants |  |  | 2,441,000 |  |  |  |  | -
Tax rate differential on foreign earnings |  |  | 13,000 |  |  |  | 59,000 |
Change in valuation allowance |  |  | 4,428,000 |  |  |  | 1,495,000 |
Other |  |  | 250,000 |  |  |  | 11,000 |
Actual tax (benefit) provision |  | $ | - |  |  | $ | - |

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