Algorhythm Holdings Inc. (RIME) had quite the evening on Tuesday, climbing 28.7% in after-hours trading to reach $1.57. This came on the heels of a solid regular session where the stock gained 19.61% to close at $1.22.

So what sparked the excitement? The Florida-based AI technology company announced that its subsidiary, SemiCab, secured an expansion to its master services agreement with Apollo Tyres Ltd., India's second-largest tire manufacturer. We're talking about a company with over $5 billion in annual sales that ranks among the top ten global competitors in the tire industry.

Following the Money

The expanded deal isn't just about prestige. SemiCab, a Georgia-based collaborative transportation platform, will now provide managed transportation services across 20 densely populated lanes in India. That means higher overall frequency of loads shipped across a broader geographic footprint.

Here's the number that matters: Algorhythm Holdings says this expanded agreement has the capacity to generate as much as $2.5 million in annual revenue for SemiCab. Not bad for a company with a current market cap of just $3.32 million.

The relationship isn't brand new, either. SemiCab launched its commercial pilot program with Apollo Tyres back in September 2024, so this expansion represents a vote of confidence in the platform's performance.

What SemiCab Actually Does

SemiCab's managed services run on an AI-enabled, cloud-based Collaborative Transportation Platform designed to tackle the inefficiencies plaguing freight logistics. The goals are straightforward: reduce service costs, improve delivery accuracy, and eliminate empty miles—that wasteful practice of trucks running without cargo.

The platform offers live tracking and integrates with existing Transportation Management Systems for automated indenting, invoicing, and real-time shipment visibility. In other words, it's designed to make the entire logistics operation smoother and more transparent.

Ajesh Kapoor, CEO of SemiCab Holdings, LLC, called the partnership "a major step forward in our mission to revolutionize freight logistics in India."

The Bigger Picture Remains Grim

Before you get too excited about the after-hours pop, let's talk context. Algorhythm Holdings has been through a brutal twelve months, down 97.31% over the past year. The stock's 52-week range tells the story: a high of $67.72 and a low of $0.94.

At its current price, RIME is positioned at just 0.42% of its 52-week range, meaning it's sitting very close to those lows. That could indicate potential for a rebound if buying interest returns, or it could simply reflect a company struggling to find its footing.

The Relative Strength Index sits at 43.04, and market data indicates RIME stock has a negative price trend across all time frames. Traders remain cautious as the long-term trend continues pointing downward.

So yes, a 29% after-hours jump makes for an exciting headline, and the Apollo Tyres partnership expansion represents genuine business progress. But for a stock that's lost 97% of its value in a year, one good day doesn't erase the challenging road ahead.