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].

TRNR Stock Movement Today On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Interactive Strength (NASDAQ:TRNR) stock is rocketing higher on Monday after the fitness platform operator completed a reverse stock split. The reverse stock split is part of the company's plan to regain compliance with ...

Exhibit 99.1 INTERACTIVE STRENGTH INC. Interactive Strength Inc. (Nasdaq: TRNR) Reports First Quarter 2024 Results Net Loss and Earnings per Diluted Share of $11.4 million and $0.67 Adjusted EBITDA was a $3.4 million loss, a $1.0 million improvement versus first quarter of 2023 The Company confirms it expects to be run-rate Adjusted EBITDA positive as early as the fourth quarter of 2024 Austin, Texas - May 20, 2024 - Interactive Strength Inc. d/b/a FORME (the "Company", or "FORME") (NASDAQ: TRNR), today ann ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 | Delaware | 82-1432916 | | --- | --- | | ( State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 1005 Congress Ave, Suite 925 | | | Austin , Texas | 78701 | | (Address of principal executive offices) | (Zip Code) | | | Registrant's telephone number, including area code: (512) 885-0035 | FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-41610 INTERACTIVE STRENGTH INC. (Exact name of Registrant as specified in its Charter) Delaware 82-1432916 (State or other jurisdicti ...