Algorhythm Holdings, Inc.

Hey everyone and welcome to Algorithm Holdings first quarter 2025 financial results earnings call. My name is Paul and I will be your operator. As a reminder today's call is being recorded. We have a brief safe harbor and then we'll get started. This call contains forward-looking statements under U.S. federal securities laws. These statements are subject to risk and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the cautionary statement included in our current and periodic file. I would like to now turn the call over to Gary Atkinson, company CEO.

Thank you. Good morning, ladies and gentlemen.

I want to start off this morning by thanking everyone for taking the time to listen in and participate in our first quarter 2025 earnings call. My name is Gary Atkinson, CEO of Algorithm Holdings. I also have on the call with me today Alex Andre, our CFO and General Counsel. By way of quick agenda, Alex will be providing a comprehensive update on our financial results of operations for the first quarter. But before Alex provides his comments, I would like to take a few minutes to talk about our vision for the business and to recap some accomplishments so far year to date. I'm thrilled at the work the team has accomplished this past quarter, and I believe we are in one of the most important times in our company's history to date. As we recently announced, we closed the acquisition of SMCB Solutions Private Limited, also known as Semicab India. As some of you may recall, back in July last year, we acquired Semicab's U.S. operations, intellectual property, and technology, and also brought over their entire team to form Semicab Holdings LLC under our algorithm holding company structure. What became clear to us was that Semicab's technology was compelling with great potential, but it was their India subsidiary and its unique position in the market that made this opportunity too good to pass up. In my view, the transaction for Semicab India is one of the most exciting, impactful opportunities for the company and its shareholders today. The opportunity that we saw was straightforward. With explicit Indian government support, more than 35 of the world's largest multinational Fortune 1000 companies in the consumer packaged goods industry saw the benefit of working together in a collaborative environment to solve one common problem, and that is the massive freight inefficiencies in the Indian market. Together, they created a consortium whereby the entire group could benefit from one shared transportation network where trucks moved goods with vastly better efficiency metrics than the industry norm. And as a group, they could all receive the benefits of better transportation costs. In India, this platform is known as the National Digital Freight Exchange, or the NDFE. A very key point here is the NDFE was built in close collaboration with Semicab. In many ways, it was built specifically to take advantage of the AI technology that Semicab has created. In fact, today, Semicab is the exclusive technology provider to the NDFE. From a financial perspective, the NDFE presents a very large business opportunity. The total freight spend across the NDFE group is over 1.4 billion U.S. dollars annually. Semicab has analyzed much of the underlying shipping data and has identified approximately 400 million in annual freight spend that is ideally suited for optimization. This is our initial addressable market. When we first acquired Semicat's U.S. operations, we immediately began funding Semicat India. We knew that they were onboarding new pilot shipping contracts, names like Unilever, Apollo Tire, Marico. We knew they needed to gain access to a larger carrier fate for these new and growing client opportunities. We chose to fund all of this while we navigated the process of acquiring Semicab India as an Indian legal entity. While the process admittedly took longer than expected, it is now complete. This was by far our most critical accomplishment year to date. To summarize, during the transition period between July of last year and now, we have seen Semicab's U.S. and India sales grow almost five-fold. They have almost doubled their number of clients. We now serve three of the top 10 and five of the top 50 largest consumer packaged goods companies in the world. We have supported early critical pilot programs with clients like Procter & Gamble and Asian Paints, ramping each program successfully. We have added new pilot programs with Unilever and Mariko, among others. We have increased our fleet substantially. with access now to over 500 trucks when we need it, and we now have the capacity to increase our business in India to over $20 million on an annualized revenue basis as quickly as needed. We are currently lining up an additional 1,000 trucks over the second half of this year in preparation for further expected client expansion in India. In short, we see Semicat India at an early stage of a major inflection point. We look forward to sharing updates on this progress in the coming months. At this point, I'd like to now ask our CFO, Alex Andre, to walk everyone through the results of operations for the first quarter of 2025.