$RYM

RYTHM, Inc.

CIK:0001800637|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Revenue

^[1]

$ 23,021

$ 2,042

$ 36,307

$ 2,580

Cost of goods sold

4,485

1,360

7,374

1,808

Gross profit

18,536

682

28,933

772

Selling, general and administrative

^[2]

16,600

7,480

31,031

11,271

Total operating expenses

16,600

7,480

31,031

11,271

Operating income (loss) from continuing operations

1,936

(6,798)

(2,098)

(10,499)

Interest expense, net

^[3]

(1,727)

(291)

(3,469)

(290)

(Loss) gain in fair value of warrant liabilities

(232)

(115)

(127)

292

Other income (expense), net

(1)

Total other (expenses) income, net

(1,957)

(407)

(3,594)

Loss from continuing operations before income taxes

(21)

(7,205)

(5,692)

(10,479)

Income tax benefit

1,205

26,798

Income (loss) from continuing operations, net of income taxes

1,184

(7,205)

21,106

(10,479)

Loss from discontinued operations

(123)

(2,041)

(Loss) gain on disposal of Extraction business

(32)

3,534

Loss (income) from discontinued operations, net of income taxes

(155)

1,493

Net income (loss)

$ 1,184

$ (7,360)

$ 21,106

$ (8,986)

Basic income (loss) per share

Continuing operations (in Dollars per share)

$ 0.09

$ (3.66)

$ 1.61

$ (5.35)

Discontinued operations (in Dollars per share)

(0.08)

0.76

Net income (loss) per share attributable to Common Stockholders – basic (in Dollars per share)

0.09

(3.74)

1.61

(4.59)

Diluted income (loss) per share

Continuing operations (in Dollars per share)

0.09

(3.66)

1.49

(5.35)

Discontinued operations (in Dollars per share)

(0.08)

0.76

Net income (loss) per share attributable to Common Stockholders – diluted (in Dollars per share)

$ 0.09

$ (3.74)

$ 1.49

$ (4.59)

Weighted average common shares outstanding - basic (in Shares)

2,155,721

1,965,425

2,152,443

1,958,724

Weighted average common shares outstanding - diluted (in Shares)

2,283,971

1,965,425

5,252,126

1,958,724

[1]	Includes $17.7 million and $27.7 million for the three and six months ended June 30, 2026, and $264 thousand and $265 thousand for the three and six months ended June 30, 2025, in each case from related parties.
[2]	Includes $5.9 million and $10.2 million for the three and six months ended June 30, 2026, and $2.8 million and $4.2 million for the three and six months ended June 30, 2025, in each case from related parties.
[3]	Includes $1.8 million and $3.6 million of interest expense for the three and six months ended June 30, 2026, and $548 thousand and $798 thousand for the three and six months ended June 30, 2025, in each case from a related party.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net Income (Loss)	$ 21,106	$ (8,986)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	6,925	735
Non-cash interest expense	1,502	164
Non-cash tax benefit from release of valuation allowance	(26,798)
Lease expense	14	85
Impairment of right-of-use assets		24
Stock-based compensation expense	1,148	1,104
Change in fair value of warrant liabilities	127	(292)
Change in provision for credit losses, net	(25)	52
Change in provision for inventory	137	112
Gain on disposal of property and equipment		(2)
Gain on disposal of Extraction business		(3,534)
Changes in operating assets and liabilities:
Accounts receivable	230	(812)
Accounts receivable - related party	1,092
Inventory	1,161	(610)
Prepaid expenses and other current assets	(1,843)	(903)
Accounts payable	(221)	(324)
Accounts payable - related party	69
Accrued expenses and other current liabilities	1,690	(943)
Accrued expenses and other current liabilities - related party	3,421
Operating lease liabilities	(38)	(104)
Contract liabilities		(1,167)
Other liabilities		263
Net cash and cash equivalents provided by (used in) operating activities	9,697	(15,138)
Cash flows from investing activities:
Related party acquisition of MC Brands		(5,075)
Net cash and cash equivalents used in investing activities		(5,075)
Cash flows from financing activities:
Proceeds from related party notes		27,000
Proceeds from notes payable		3,000
Repayments of notes payable		(1)
Net cash and cash equivalents provided by financing activities		29,999
Net increase in cash and cash equivalents	9,697	9,786
Cash and cash equivalents at the beginning of period	32,218	31,170
Cash and cash equivalents at the end of period	41,915	40,956
Supplemental disclosures
Cash paid for interest	257	518
Supplemental disclosure of non-cash investing and financing activities
Issuance of pre-funded warrants in lieu of related party cash interest	2,313	510
Accrued pre-funded warrants in lieu of cash interest		476
Reclassification of accounts payable to notes payable		$ 99

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Current assets:

Cash and cash equivalents

$ 41,915

$ 32,218

Accounts receivable, net

^[1]

7,920

9,317

Inventory, net

^[2]

2,747

4,045

Prepaid expenses and other current assets

3,813

1,970

Total current assets

56,395

47,550

Goodwill

9,713

Related party prepaid license rights

42,475

49,400

Deferred tax assets

26,798

Non-current assets associated with discontinued operations

Total assets

135,381

106,677

Current liabilities:

Accounts payable

^[3]

2,671

2,340

Accrued expenses and other current liabilities

^[4]

10,133

7,917

Long-term debt, current

8,623

3,621

Current liabilities associated with discontinued operations

2,043

2,082

Total current liabilities

95,470

42,960

Warrant liabilities

^[5]

824

697

Long-term debt, net of current

5,000

Total liabilities

96,294

93,657

Commitments and contingencies (Note 15)

Stockholders’ equity:

Common Stock, $0.001 par value per share, 35,000,000 shares authorized; 2,179,128 and 2,149,128 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively.

Preferred stock, value

Additional paid-in capital

358,779

353,818

Accumulated deficit

(319,694)

(340,800)

Total stockholders’ equity

39,087

13,020

Total liabilities and stockholders’ equity

135,381

106,677

Related Party

Current liabilities:

Related party debt, current

72,000

27,000

Related party debt, net of current

45,000

Preferred A Stock

Stockholders’ equity:

Preferred stock, value

[1]	Includes $5.9 million and $7.0 million from related parties as of June 30, 2026 and December 31, 2025, respectively.
[2]	Includes $407 thousand and $392 thousand from a related party as of June 30, 2026 and December 31, 2025, respectively.
[3]	Includes $221 thousand and $152 thousand due to related parties as of June 30, 2026 and December 31, 2025, respectively.
[4]	Includes $4.3 million and $4.7 million due to related parties as of June 30, 2026 and December 31, 2025, respectively.
[5]	As of June 30, 2026 and December 31, 2025, the number of outstanding warrants subject to liability classification was 40,017, of which 15,394 were held by RSLGH, LLC (“RSLGH”) a related party.