Financial Performance - Interactive Strength Inc. reported quarterly revenue of $1.4 million, a nearly 400% increase from the prior-year period[3]. - The net loss for the quarter was $6.6 million, or $1.74 per diluted share, compared to a net loss of $11.4 million and $2,681.82 per share in the same period last year[3]. - Adjusted EBITDA loss was $2.5 million, reflecting a 29% year-over-year improvement in operational efficiency[1]. - Fitness product revenue increased significantly to $1,050 million in Q1 2025 from $53 million in Q1 2024, representing a growth of 1,877%[24]. - Total revenue for Q1 2025 reached $1,356 million, a substantial increase compared to $363 million in Q1 2024, marking a growth of 273%[24]. - Gross loss improved to $(304) million in Q1 2025 from $(1,200) million in Q1 2024, indicating a reduction in losses by 74.7%[24]. - Total operating expenses decreased to $6,008 million in Q1 2025 from $8,241 million in Q1 2024, a reduction of 27%[24]. - Net loss attributable to common stockholders narrowed to $(6,603) million in Q1 2025 compared to $(11,394) million in Q1 2024, reflecting a 42% improvement[24]. Cash and Equity Position - Cash and cash equivalents increased to $2,207 million as of March 31, 2025, up from $138 million at the end of 2024[26]. - Total assets grew to $37,816 million as of March 31, 2025, compared to $34,170 million at the end of 2024, an increase of 7.8%[26]. - Total liabilities decreased to $24,060 million as of March 31, 2025, down from $27,055 million at the end of 2024, a reduction of 11%[26]. - Stockholders' equity increased to $13.8 million, up from $7.1 million at year-end 2024, enhancing compliance with Nasdaq listing requirements[4]. Future Outlook and Guidance - The company raised its full-year 2025 pro forma revenue guidance to more than $75 million, a greater than 15% increase from the previous guidance of $65 million[5]. - The pending acquisitions of Sportstech and Wattbike are expected to contribute more than $20 million in pro forma revenue during the first quarter[6]. - The company anticipates generating positive adjusted EBITDA in Q4 2025, having approached this milestone on a pro forma basis in Q1[6]. - The acquisition activity and improved shareholder equity are expected to lead to a transformational year for the company[6]. Business Operations - The company operates under two main brands: CLMBR and FORME, focusing on innovative specialty fitness equipment and digital fitness services[8]. - The company emphasizes the importance of adjusted EBITDA as a measure of operating performance, excluding various expenses that can vary significantly between companies[15]. Cash Flow Activities - The company reported net cash used in operating activities of $(3,545) million for Q1 2025, compared to $(2,959) million in Q1 2024[28]. - The company raised $7,771 million in net cash from financing activities in Q1 2025, compared to $4,615 million in Q1 2024, indicating a 68% increase[28].

Revenue Performance - Total revenue for Q1 2025 reached $1,356,000, a significant increase from $363,000 in Q1 2024, representing a growth of 273%[11] - Fitness product revenue surged to $1,050,000 in Q1 2025, compared to $53,000 in Q1 2024, marking an increase of 1,877%[11] - Membership revenue increased to $176,000 for the three months ended March 31, 2025, up from $155,000 in the prior year, reflecting a growth of 13.5%[70] - Training revenue decreased to $130,000 for the three months ended March 31, 2025, down from $155,000 in the same period of 2024, indicating a decline of 16.1%[70] - Woodway, the exclusive distributor, represented 71% of the Company's total revenue for the three months ended March 31, 2025[206] Financial Losses and Improvements - The company reported a gross loss of $304,000 in Q1 2025, an improvement from a gross loss of $1,200,000 in Q1 2024[11] - The net loss attributable to common stockholders for Q1 2025 was $6,603,000, compared to a net loss of $11,394,000 in Q1 2024, indicating a 42% improvement[11] - The net loss for the three months ended March 31, 2025, was $6.603 million, a decrease from a net loss of $11.394 million in the same period of 2024, indicating an improvement of 42%[54] - The company reported a net loss of $6,603,000 for the quarter ending March 31, 2025[16] Operating Expenses and Cash Flow - Total operating expenses decreased to $6,008,000 in Q1 2025 from $8,241,000 in Q1 2024, reflecting a reduction of 27%[11] - Net cash used in operating activities was $3.5 million for the three months ended March 31, 2025, compared to $2.96 million in the prior year, reflecting ongoing operational challenges[17]. - The company reported a net cash provided by financing activities of $7.77 million during the reporting period, indicating successful capital raising efforts[17]. Assets and Liabilities - Cash and cash equivalents increased to $2,207,000 as of March 31, 2025, up from $138,000 as of December 31, 2024[9] - Total assets grew to $37,816,000 as of March 31, 2025, compared to $34,170,000 as of December 31, 2024, representing an increase of 8%[9] - Total liabilities decreased to $24,060,000 as of March 31, 2025, down from $27,055,000 as of December 31, 2024, a reduction of 11%[9] - The company has a significant accumulated deficit of $209.4 million as of March 31, 2025, highlighting ongoing financial challenges[33]. Stock and Equity Transactions - The weighted average common stock outstanding for basic and diluted was 3,804,106 shares in Q1 2025, compared to 4,249 shares in Q1 2024[11] - The company issued $1,500,000 in Series B preferred stock upon the acquisition of CLMBR, Inc.[15] - The issuance of common stock from the At the Market offering amounted to $1,594,000[15] - The issued and outstanding common stock increased from 1,402,102 shares as of December 31, 2024, to 7,953,570 shares as of March 31, 2025[181] - The Company issued 821,500 shares of common stock from At the Market offering in February 2025[189] Debt and Financing - The company incurred a total outstanding debt of approximately $10.9 million as of the issuance date, with about $9.0 million scheduled to mature over the next twelve months[33]. - The Company entered into a Term Loan agreement for approximately $8.0 million, with a guarantee fee of $2.3 million due at maturity, and the outstanding principal amount was approximately $5.0 million as of April 24, 2024[82][84] - The carrying value of the Term Loan as of March 31, 2025, was $3.289 million, with total interest expense recognized of $60,000 for the three months ended March 31, 2025[91] - The Company recorded a debt discount of $2.0 million and incurred $0.3 million of debt issuance costs related to the January 2025 Convertible Notes, which will be amortized over the life of the notes[114] Legal and Compliance Issues - The Company has received two notices from Nasdaq regarding noncompliance with listing requirements, but has since regained compliance with both the minimum stockholders' equity and publicly held shares requirements[38] - The Company is subject to a Mandatory Panel Monitor for one year following compliance with Nasdaq rules, which could lead to delisting if future compliance is not maintained[38] - The Company is involved in legal proceedings with a potential liability of $2.2 million related to a breach of contract claim[179] Accounting and Reporting Changes - The Company has adopted ASU 2023-07 for segment reporting, enhancing disclosures about significant segment expenses, effective for the 2024 annual period[48] - The Company is currently evaluating the impact of new accounting standards, including ASU 2020-04 and ASU 2022-06, but does not expect them to have a material impact on financial statements[49]

Financial Performance - Quarterly revenue was $2.4 million, aligning with projections, and full-year revenue reached $5.4 million for 2024[1][3] - The company incurred a net quarterly loss of $5.8 million, or $7.26 per diluted share, an improvement from a loss of $11.4 million and $3,214.88 per share in the same period of 2023[3] - Adjusted EBITDA loss for the quarter was $1.9 million, reflecting a 42% year-over-year improvement and a 19% sequential improvement[4] - Total revenue for the year ended December 31, 2024, was $5,380 million, compared to $962 million in 2023, representing a year-over-year growth of 460%[23] - Net loss attributable to common stockholders for the year ended December 31, 2024, was $34,934 million, compared to $51,373 million in 2023, reflecting a decrease of 32%[23] Operational Highlights - The highest quarterly revenue to date was achieved in Q4 2024, indicating improved operational performance[4] - Fitness product revenue for Q4 2024 reached $2,046 million, a significant increase from $72 million in Q4 2023[23] - Total operating expenses for the year ended December 31, 2024, were $26,407 million, down from $48,952 million in 2023, indicating a reduction of 46%[23] - Gross loss for Q4 2024 was $410 million, an improvement from a gross loss of $1,618 million in Q4 2023[23] Balance Sheet and Cash Flow - Stockholders' equity stood at $7.1 million at year-end 2024[1] - Cash and cash equivalents at the end of Q4 2024 were $138 million, compared to $0 in Q4 2023[25] - Total assets increased to $34,170 million as of December 31, 2024, up from $16,802 million in 2023, marking a growth of 103%[25] - Total liabilities rose to $27,055 million in 2024, compared to $22,354 million in 2023, an increase of 21%[25] - The company reported a net cash used in operating activities of $14,812 million for the year ended December 31, 2024, slightly improved from $15,427 million in 2023[27] Strategic Outlook - The company anticipates more than $50 million in pro forma revenue for 2025, supported by pending acquisitions[1][5] - The company is focused on expanding its international distribution and sales network to drive organic revenue growth[5] - The financial results reflect the company's ongoing efforts to execute its acquisition strategy for 2025[5] - The company continues to enhance its balance sheet and stabilize its listing[5] - The company plans to provide further details on its strategy and performance in its upcoming quarterly shareholder letter[5] Acquisition Activities - The company issued common stock and series B preferred stock for the acquisition of business valued at $3,969 million[27]

Financial Performance - Total revenue for the years ended December 31, 2024 and 2023 was $5.4 million and $1.0 million, respectively, with net losses of $(34.9) million and $(51.4) million[516]. - Total revenue for the year ended December 31, 2024, was $5,380,000, representing a 459% increase compared to $962,000 in 2023[555]. - The company reported a net loss of $34,934,000 for the year ended December 31, 2024, a 32% improvement from a net loss of $51,373,000 in 2023[555]. - Total operating expenses decreased by $22,545,000, or 46%, to $26,407,000 in 2024, compared to $48,952,000 in 2023[565]. - General and administrative expenses decreased by $18.9 million, or 51%, for the year ended December 31, 2024, compared to 2023, primarily due to a $16.5 million decrease in stock-based compensation expenses[568]. - The company incurred a net operating loss of $29.2 million and used net cash in operations of $14.8 million during the year ended December 31, 2024, with an accumulated deficit of $202.6 million as of the same date[579]. Revenue Breakdown - Connected fitness product revenue represented 74% of total revenue in 2024, up from 59% in 2023[532]. - Membership revenue accounted for 14% of total revenue in 2024, slightly down from 15% in 2023[533]. - Training revenue represented 12% of total revenue in 2024, a decrease from 26% in 2023[534]. - Fitness product revenue increased by $3,399,000, or 592%, to $3,973,000 in 2024, primarily due to the acquisition of CLMBR, Inc.[558]. - Membership revenue rose by $641,000, or 451%, to $783,000 in 2024, also attributed to the CLMBR acquisition[559]. Acquisitions and Expansion - The company acquired CLMBR, Inc. in February 2024, aiming to generate higher earnings and cash flow through synergies[517]. - The company plans to expand internationally, targeting markets with high fitness penetration, such as the UK and Canada[521]. - The corporate wellness initiative is set to expand, providing customized solutions for hybrid workforces[525]. - The company aims to reduce personal training costs while maintaining quality, expanding the addressable market for coaching services[523]. Cash Flow and Financing - Net cash used in operating activities was $14.8 million for the year ended December 31, 2024, primarily due to a net loss of $34.9 million[584]. - Net cash provided by financing activities was $16.3 million for the year ended December 31, 2024, mainly from the issuance of convertible notes and common stock offerings[587]. - The company had total outstanding debt of approximately $11.1 million as of the issuance date, all scheduled to mature over the next twelve months[579]. - Net cash provided by financing activities for the year ended December 31, 2023 was $17.1 million, primarily from $4.3 million in common stock issuance and $10.8 million from the IPO[588]. - Net cash used in investing activities was $1.7 million for the year ended December 31, 2024, related to the acquisition of CLMBR, Inc.[586]. Expenses and Losses - The cost of fitness product revenue increased by $1,511,000, or 66%, to $3,798,000 in 2024, driven by increased sales from the CLMBR acquisition[561]. - Total cost of revenue increased by $1,668,000, or 26%, to $8,158,000 in 2024, compared to $6,490,000 in 2023[560]. - Interest expense increased by $6.1 million for the year ended December 31, 2024, driven by various debt-related costs, including $4.2 million from the February 2024 convertible note[571]. - The company reported a total other expense of $5.7 million for the year ended December 31, 2024, a significant decrease from $3.1 million in 2023[569]. Compliance and Internal Controls - The company received three notices from Nasdaq regarding noncompliance with listing requirements, but demonstrated compliance with the minimum stockholders' equity and publicly held shares requirements as of December 31, 2024[580]. - The company has identified material weaknesses in internal control over financial reporting related to insufficient trained professionals and inadequate controls over stock-based compensation[618]. - Measures are being implemented to improve internal control, including hiring qualified personnel and engaging financial consultants, with an accounting software system expected to be fully implemented in the 2025 fiscal year[619]. - Management cannot assure that efforts to remediate material weaknesses will be successful or timely, which could adversely affect financial reporting accuracy[620]. Market and Economic Conditions - Participation in golf grew 10% year-over-year to over 41.1 million in 2022, while pickleball saw an 85.7% increase in participation in 2022[526]. - Inflation has not had a material effect on the company's business, but significant inflationary pressures could harm financial condition and operating results[625]. - A hypothetical 10% change in interest rates would not result in a material change for the years ended December 31, 2024 and 2023[624]. - The company has not entered into derivatives or hedging transactions for foreign currency exposure, which is currently considered relatively small[624].

Core Insights - zSpace has launched the zSpace Imagine Learning Solution, a headset-free AR/VR laptop system aimed at elementary education, showcasing its commitment to transforming learning experiences for young students [1][2]. Product Overview - The zSpace Imagine AR/VR laptops are designed for safety and comfort, providing an immersive experience without the need for headsets or 3D glasses, featuring zView technology for collaborative work [3]. - The solution includes a collection of engaging applications covering essential subjects like math, science, and language arts, aligned with elementary-level learning standards [4]. - A library of curriculum-aligned lessons and activities is available, maximizing the potential of AR/VR to create interactive learning experiences [5]. - zSpace offers professional development for educators, including on-site and virtual training to help integrate the technology into classrooms effectively [6]. Market Position and Impact - zSpace has been a pioneer in immersive learning for over eight years, focusing on STEM and CTE education, and is now expanding its influence into elementary education [2]. - The company is trusted by over 3,500 educational institutions, indicating a strong market presence and credibility in the AR/VR education sector [8]. - The innovative approach of combining AR/VR technology with a pedagogy-driven curriculum has the potential to set new standards in elementary education [7].

Financial Performance - The company reported a net loss of $7.1 million for Q3 2024, improving from a net loss of $10.4 million in Q3 2023, resulting in a loss of $1.53 per diluted share[2]. - Adjusted EBITDA for Q3 2024 was a loss of $2.3 million, an improvement of $1.0 million compared to Q3 2023[3]. - Total revenue for Q3 2024 was $2,014,000, a significant increase from $306,000 in Q3 2023, representing a growth of 558%[16]. - Fitness product revenue reached $1,617,000 in Q3 2024, compared to $206,000 in Q3 2023, marking a 684% increase[16]. - Membership revenue increased to $224,000 in Q3 2024 from $38,000 in Q3 2023, reflecting a growth of 489%[16]. - Adjusted EBITDA for Q3 2024 was $(2,348,000), an improvement from $(3,373,000) in Q3 2023[15]. - Net loss for Q3 2024 was $(7,141,000), compared to $(10,408,000) in Q3 2023, indicating a reduction in losses by 31%[16]. - Net loss for the nine months ended September 30, 2024, was $29,172, compared to a loss of $39,971 in 2023, representing a 27.1% improvement[18]. - Net cash used in operating activities decreased to $8,909 from $13,561, reflecting a 34.5% reduction year-over-year[18]. Revenue Growth - Revenue for Q3 2024 reached $2.0 million, representing a growth of 325% compared to Q2 2024[1]. - The company expects to generate $2.4 million in revenue for Q4 2024[1]. Assets and Liabilities - Total current assets as of September 30, 2024, were $10,240,000, up from $5,356,000 at the end of 2023[17]. - Total liabilities increased to $31,961,000 as of September 30, 2024, compared to $22,354,000 at the end of 2023[17]. Cash Position - The company ended Q3 2024 with $2.3 million in cash, following a capital raise in July[4]. - Cash and restricted cash at the end of the period increased to $2,269 from $30, showing a significant improvement[18]. Stockholder Information - Stockholders' equity was reported at $5.8 million at the end of Q3 2024, exceeding the Nasdaq requirement of $2.5 million[4]. - The weighted average common stock outstanding increased to 4,653,452 shares as of September 30, 2024, compared to 354,656 shares in Q3 2023[16]. Operational Changes - The company has transitioned to primarily selling to commercial customers (B2B) following the acquisition of CLMBR, Inc.[14]. - The company will no longer report certain key operational metrics related to a direct-to-consumer business model due to its shift in focus[14]. - The company is actively pursuing additional acquisitions and plans to communicate more details in the future[4]. Expenses - Research and development expenses for Q3 2024 were $2,212,000, slightly down from $2,357,000 in Q3 2023[16]. - Stock-based compensation decreased to $9,448 from $23,773, a reduction of 60.3%[18]. Other Financial Metrics - The company reported a gross loss of $(288,000) in Q3 2024, an improvement from $(1,123,000) in Q3 2023[16]. - Net cash provided by financing activities was $12,947, down from $14,656 in the previous year, indicating an 11.6% decline[18]. - The acquisition of business resulted in cash payments of $1,447, which was not present in the previous year[18]. - Proceeds from the issuance of common stock and pre-funded warrants upon offering totaled $4,510, down from $10,820, a decrease of 58.3%[18]. - Interest expense due but not paid was reported at $1,054, which was not applicable in the previous year[18]. - Non-cash investing and financing activities included the issuance of common stock and series B preferred stock for the acquisition of business valued at $3,969[18].

Revenue Growth - Total revenue for Q3 2024 was $2,014,000, a significant increase from $306,000 in Q3 2023, representing a growth of 558%[4] - Fitness product revenue reached $1,617,000 in Q3 2024, compared to $206,000 in Q3 2023, marking a growth of 684%[4] - Membership revenue increased to $224,000 in Q3 2024 from $38,000 in Q3 2023, reflecting a growth of 489%[4] - Revenue for the three months ended September 30, 2024, was $2,014,000, compared to $652,000 for the same period in 2023, representing a significant increase of 208%[176] Net Loss and Financial Performance - The company reported a net loss of $7,141,000 for Q3 2024, an improvement from a net loss of $10,408,000 in Q3 2023, indicating a reduction of 31%[5] - The net loss for the three months ended September 30, 2024, was $(7,141,000), an improvement from $(11,918,000) in the same period last year, indicating a reduction in losses by approximately 40%[176] - The company reported an operating loss of $(7,754,000) for the three months ended September 30, 2024, compared to $(11,203,000) for the same period in 2023, reflecting a 30% decrease in operating losses[176] - The company reported a net loss of $29,172,000 for the nine months ended September 30, 2024, compared to a net loss of $39,971,000 for the same period in 2023, representing a 27% improvement[9] Assets and Liabilities - Total assets as of September 30, 2024, were $37,753,000, up from $16,802,000 as of December 31, 2023, representing a growth of 125%[2] - Total liabilities increased to $31,961,000 as of September 30, 2024, compared to $22,354,000 as of December 31, 2023, an increase of 43%[2] - The company’s accumulated deficit increased to $196,621,000 as of September 30, 2024, from $166,911,000 as of December 31, 2023[3] - Total current assets increased to $10,240,000 as of September 30, 2024, up from $5,356,000 as of December 31, 2023, marking an increase of 91%[2] Stockholder Equity and Compliance - The company’s total stockholders' equity improved to $5,792,000 as of September 30, 2024, from a deficit of $5,552,000 as of December 31, 2023[3] - The Company received a deficiency letter from Nasdaq on August 20, 2024, regarding the closing bid price of its common stock being below the minimum $1.00 per share requirement[16] - The Company has until November 14, 2024, to demonstrate compliance with Nasdaq's stockholders' equity requirement following its debt conversion and acquisition[16] - The Company's stockholders' equity as of September 30, 2024, was approximately $5.8 million, exceeding the minimum requirement by over $3 million[16] Research and Development - Research and development expenses for Q3 2024 were $2,212,000, slightly down from $2,357,000 in Q3 2023[4] - The company recorded total research and development expenses of $1,206,000 for the three months ended September 30, 2024, down from $1,347,000 in the same period of 2023[148] Stock-Based Compensation - Stock-based compensation for the quarter was $4.951 million, indicating a significant investment in employee incentives[7] - Stock-based compensation decreased to $9,448,000 for the nine months ended September 30, 2024, down from $23,773,000 in the same period of 2023, indicating a reduction of approximately 60%[9] - The company recognized stock compensation expense of $3.2 million for the three months ended September 30, 2024, compared to $9.6 million for the same period in 2023[153] Acquisition and Related Costs - The Company completed the acquisition of CLMBR, Inc. for a total purchase price of approximately $16.1 million, which included $30,000 in cash and the issuance of 1,428,922 shares of common stock valued at $1.0 million[13] - The company recorded acquisition-related costs of $0.9 million and $1.4 million for the three and nine months ended September 30, 2024, respectively[173] - A contingent liability of $1.3 million was recorded related to earn-out shares based on CLMBR sales through the B2B channel, but was later marked to $0 due to the remote likelihood of achieving the sales target[175] Cash Flow and Liquidity - Cash and restricted cash at the end of the period was $2,269,000, a significant increase from $30,000 at the end of the previous period[9] - The company experienced a net cash used in operating activities of $8,909,000 for the nine months ended September 30, 2024, compared to $13,561,000 in the prior year, reflecting improved cash flow management[9] - The company raised $4,510,000 from the issuance of common stock and pre-funded warrants during the financing activities, down from $10,820,000 in the prior period[9] Foreign Currency Impact - The company reported a foreign currency translation loss of $(136) thousand for the quarter ending June 30, 2023[7] - The company reported a foreign currency translation gain of $172 thousand for the quarter ending September 30, 2023, indicating favorable currency movements[7] - Foreign currency translation loss for the three months ended September 30, 2024, was $242,000, compared to a gain of $172,000 in the same period of 2023[5] Legal and Compliance Issues - The company resolved a legal dispute with DK City through a Confidential Settlement Agreement, which included total payments greater than one year from September 30, 2024, of $1.1 million included in other long-term liabilities[132] - The Company may face delisting from Nasdaq if it fails to regain compliance with listing requirements, which could adversely affect its ability to raise capital and the liquidity of its common stock[16] Inventory and Asset Management - Total inventories increased to $7,971,000 as of September 30, 2024, up from $5,515,000 on December 31, 2023, representing a 44.5% increase[42] - The company’s inventory valuation loss was $141,000 for the nine months ended September 30, 2024, down from $261,000 in the same period of 2023, showing better inventory management[9] Share Structure Changes - The company completed a reverse stock split at a rate of 1-for-40, reducing the number of shares from 26,581,056 to 664,526 shares[11] - The company issued 12,036,139 shares of common stock from At the Market offerings between June 2024 and September 2024[138] - As of September 30, 2024, the company had 17,170,456 shares of common stock outstanding, a significant increase from 354,802 shares as of December 31, 2023[137]

Financial Performance - Total revenue for Q2 2024 reached $621,000, a 96.4% increase from $316,000 in Q2 2023[5] - Membership revenue surged to $207,000 in Q2 2024, compared to $32,000 in Q2 2023, marking a 546.9% increase[5] - Net loss for Q2 2024 was $10,637,000, an improvement from a net loss of $13,602,000 in Q2 2023[6] - The company reported a total comprehensive loss of $10,639 million for Q2 2024, compared to $13,738 million in Q2 2023[6] - The net loss for the six months ended June 30, 2024, was $22,031 thousand, an improvement from a net loss of $29,563 thousand for the same period in 2023, representing a 25.5% reduction[11] - The net loss attributable to common stockholders for the six months ended June 30, 2024 was $22.0 million, compared to a loss of $29.6 million for the same period in 2023[150] Assets and Liabilities - Total assets increased to $37,765,000 as of June 30, 2024, up from $16,802,000 at the end of 2023[3] - Current liabilities rose to $35,599,000 in Q2 2024, compared to $21,534,000 in Q4 2023, reflecting a 65.3% increase[3] - Total liabilities rose to $37,352,000 as of June 30, 2024, from $22,354,000 as of December 31, 2023[3] - The total outstanding debt as of June 30, 2024, was approximately $17.2 million, all classified as current liabilities[19] - As of June 30, 2024, the Company had an accumulated deficit of $188.9 million[19] Cash Flow and Financing - Cash and cash equivalents stood at $156,000 as of June 30, 2024, compared to $0 at the end of 2023[3] - Net cash used in operating activities decreased to $5,160 thousand for the six months ended June 30, 2024, compared to $11,200 thousand for the same period in 2023, indicating a 53.9% improvement[11] - The company’s cash flows from financing activities provided $6,673 thousand for the six months ended June 30, 2024, compared to $13,687 thousand in the same period of 2023, indicating a 51.2% decrease[11] - The Company incurred offering costs amounting to $4.6 million through the IPO and $0.3 million related to a Public Offering completed in July 2024[26] Stockholder Equity - Total stockholders' equity improved to $413,000 in Q2 2024 from a deficit of $5,552,000 at the end of 2023[4] - As of June 30, 2023, total stockholders' equity was $5,011,000, with an accumulated deficit of $145,101,000[8] - The balances at March 31, 2023, showed total stockholders' equity at $(131,490,000)[8] - As of March 31, 2024, total stockholders' equity (deficit) stands at $(178,300) thousand[10] Expenses - Total operating expenses decreased to $7,002,000 in Q2 2024 from $10,800,000 in Q2 2023, a reduction of 35.5%[5] - Research and development expenses for Q2 2024 were $2,474,000, slightly up from $2,326,000 in Q2 2023[5] - Stock-based compensation for the quarter was $4,510,000[8] - The company reported stock-based compensation of $6,291 thousand for the six months ended June 30, 2024, a decrease from $18,938 thousand in the same period of 2023, reflecting a 66.8% reduction[11] Acquisitions - The company completed the acquisition of CLMBR for a total purchase price of approximately $16.1 million, which included cash, common stock, preferred stock, and the retirement of senior debt[17] - The acquisition of CLMBR is expected to accelerate the Company's commercialization path and enhance its growth in connected fitness equipment and digital fitness services[162] - The Company recorded a gain of $1.3 million related to the change in fair value of the earn-out liability associated with the CLMBR acquisition[166] Compliance and Regulatory - The company was notified by Nasdaq that it did not comply with the minimum $2,500,000 stockholders' equity requirement for continued listing[20] - The company has until November 14, 2024, to demonstrate compliance with Nasdaq listing requirements[20] - The company regained compliance with Nasdaq Listing Rule 5550(a)(2) regarding minimum bid price of $1.00 as of July 8, 2024[173] Market and Operations - The Company operates in the United States, the United Kingdom, and Taiwan, with substantially all long-lived assets held in the United States[24] - The Company has one operating segment focused on the development and sale of its at-home fitness technology platform[23]

Financial Performance - The company reported a net loss of $10.6 million for Q2 2024, or a loss of $17.48 per diluted share, an improvement from a net loss of $13.6 million, or a loss of $40.78 per diluted share in Q2 2023[1]. - Adjusted EBITDA for the quarter was a loss of $2.9 million, reflecting a $2.8 million improvement compared to Q2 2023[2]. - Net loss for Q2 2024 was $10,637,000, an improvement from a net loss of $13,602,000 in Q2 2023, while the six-month net loss decreased from $29,563,000 in 2023 to $22,031,000 in 2024[17]. - Adjusted EBITDA for Q2 2024 was $(2,894,000), compared to $(5,731,000) in Q2 2023, and $(10,157,000) for the six months ended June 30, 2023, compared to $(6,342,000) in 2024[18]. - Total revenue for Q2 2024 was $621,000, significantly up from $316,000 in Q2 2023, with six-month revenue increasing from $473,000 in 2023 to $984,000 in 2024[19]. - Fitness product revenue rose to $258,000 in Q2 2024 from $224,000 in Q2 2023, while membership revenue surged from $32,000 to $207,000 in the same period[19]. - Total operating expenses decreased from $10,800,000 in Q2 2023 to $7,002,000 in Q2 2024, with research and development expenses at $2,474,000 compared to $2,326,000 in the prior year[19]. - Net loss for the six months ended June 30, 2024, was $22,031,000, an improvement from a net loss of $29,563,000 for the same period in 2023[21]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2024, were $156,000, with total current assets increasing to $8,270,000 from $5,356,000 at the end of 2023[20]. - Total assets increased to $37,765,000 as of June 30, 2024, compared to $16,802,000 at the end of 2023[20]. - Current liabilities rose to $35,599,000 from $21,534,000 at the end of 2023, primarily due to an increase in accounts payable and loan payable[20]. - Net cash used in operating activities decreased to $5,160,000 from $11,200,000 year-over-year[21]. - Net cash used in investing activities was $1,407,000, compared to $868,000 in the prior year[21]. - Net cash provided by financing activities was $6,673,000, down from $13,687,000 in the previous year[21]. - Cash and restricted cash at the end of the period was $156,000, significantly lower than $1,403,000 at the end of the previous year[21]. Business Strategy and Market Outlook - The company expects to generate between $2.0 million and $2.5 million in revenue for Q3 2024, contingent on the timing of receiving required certifications for European deliveries[6]. - Successful pilots were conducted with Crunch Fitness and Gold's Gym, leading to orders for 13 and 2 CLMBRs respectively, with Gold's Gym planning installations in 23 locations[3][4]. - The company anticipates strong international demand, having secured initial orders in Germany and the Gulf region, with expectations to sell to at least ten international distributors this year[5]. - The company does not expect to achieve previous revenue and profitability guidance until 2025 due to a slower ramp in revenue for CLMBR following its acquisition[6]. - The company has shifted its business model to primarily focus on B2B sales following the acquisition of CLMBR, Inc., and will no longer report certain DTC metrics[17]. - The company is investing in new product development and market expansion strategies to enhance revenue growth and operational efficiency[17]. - The company plans to provide updated guidance on revenue and profitability when timing becomes more certain[6]. Stockholder's Equity and Compensation - Stockholder's equity was reported at $0.4 million as of June 30, with an equity offering of $4.0 million completed on July 2, improving compliance with Nasdaq's Equity Rule[7]. - Stock-based compensation recorded was $6,291,000, a decrease from $18,938,000 in the prior year[21]. - The company issued common stock worth $3,969,000 for the acquisition of a business[21]. - The company capitalized $155,000 in stock-based compensation related to software development[22]. - The company reported a change in fair value of convertible notes amounting to $316,000[21]. - The company experienced a loss on exchange of warrants for equity totaling $358,000[21]. Product Development and Challenges - The company is focused on enhancing the durability of CLMBR components, which caused delays in product shipping and revenue generation[2]. - The partnership with WOODWAY aims to ensure CLMBR meets the stringent specifications of commercial users[2].

Core Viewpoint - Interactive Strength (NASDAQ:TRNR) has successfully appealed for continued listing on the Nasdaq Exchange, receiving an extension until November 14, 2024, to regain compliance with the minimum stockholders' equity requirement of $2.5 million [1][3]. Group 1: Company Compliance and Financial Performance - The Nasdaq Hearings Panel has acknowledged the potential of Interactive Strength to regain compliance with the Equity Rule by the time it reports its third-quarter earnings in November [3]. - The company indicated that it would have been compliant with the Equity Rule for the quarter ending June 30 on a pro forma basis, factoring in an equity offering that closed on July 2 [3]. Group 2: Stock Market Reaction - Following the news, TRNR stock experienced significant trading activity, with over 85 million shares exchanged, far exceeding the average daily trading volume of approximately 1.4 million shares [4]. - As of Monday afternoon, TRNR stock has risen by 58.8% [4].