Dilution Is the Silent Variable in the Bull Case

One thing I rarely see discussed properly in bullish threads about Algorhythm Holdings, Inc. is the impact of dilution over time. Revenue growth stories are exciting. AI narratives attract attention. But share structure matters. When a company repeatedly raises capital through structured agreements, shareholders need to consider: * How many shares could ultimately be issued * At what effective pricing * Under what conditions Even if the business improves operationally, expanding share count can cap upside. Per share value is what investors own, not total revenue. If operating losses continue and additional capital is required, dilution may not be optional. It may be necessary. **This creates a cycle:** 1. Raise capital 2. Fund operations 3. Report growth 4. Still not profitable 5. Raise capital again Breaking that cycle requires positive cash flow. Until RIME demonstrates consistent cash generation, dilution remains a real and ongoing risk, not a hypothetical one. The bearish view is simple: shareholders could see operational progress while still experiencing limited upside if capital structure keeps expanding.