Salt Lake City, Utah, April 21, 2025 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today an overview of its 2024 results that were filed on Form 10-K on April 15, 2025. The Company reported record sales of $21.9 million, an increase of 6.2% percent as compared to 2023 sales. The gains were driven by continued enthusiastic market adoption of new hardware and software products launched earlier in 2024. Net losses narrowed by 14 ...

Market Overview - TruGolf's total addressable market for golf products in 2022 was estimated at $1.4 billion, with a forecasted CAGR of 11.05%, reaching $3.8 billion by 2031[26]. - The company currently holds a 4.28% market share in the golf products sector, with 69% of the market derived from indoor golf simulators[26]. - In 2022, the off-course golf market reached approximately $27.9 million, surpassing on-course play for the first time, with a 13% year-over-year increase in off-course participation[25]. - The indoor golf market has seen a significant increase due to factors such as the high costs of outdoor golf and the closure of over 100 golf courses annually[27]. - The indoor golf simulator market is expected to grow significantly, driven by the increasing popularity of off-course golf activities[25]. Product Development and Innovation - TruGolf's Apogee launch monitor is designed for easy installation and maintenance, reducing calibration time from 20-30 minutes to under five minutes[40]. - TruGolf's E6 software is compatible with 90% of hardware in the market, allowing access to a wide range of customers in both indoor and outdoor settings[26]. - The company is collaborating with a video game company to enhance its E6 software with photorealistic graphics through a new dynamic graphics engine[24]. - E6 Apex software features a new graphics engine providing photo-realistic recreations of golf courses with accuracy within 2 inches on fairways and 2 centimeters on greens[47]. - The company plans to launch new products, including the next generation of Apogee and the Mini Trainer, while phasing out legacy products[73]. Business Strategy and Expansion - The company plans to launch a franchise solution to capitalize on the growing demand for commercial indoor golf offerings[28]. - The company plans to franchise indoor golf entertainment venues, requiring spaces between 5,000 and 32,000 square feet, significantly less than traditional golf courses[51]. - Future franchise locations will operate as authorized resellers, with a pre-sales requirement to ensure profitability prior to operations[52]. - The company has signed a Joint Venture agreement in China to manage distribution across Asia, aiming to expand its market presence[216]. - TruGolf's business model aims to unify the golf technology space, positioning itself as a leader in both hardware and software solutions[209]. Marketing and Sales - Approximately 80% of the company's marketing efforts focus on lead generation through various channels, including SEO and social media campaigns[66]. - The company continues to invest in expanding its sales force and marketing efforts to increase product adoption and awareness[216]. - TruGolf's software integrates with over 24 third-party golf technology hardware manufacturers, covering approximately 90% of the global market[208]. Financial Performance and Risks - The company anticipates needing to raise additional capital in the future to support its growth strategy and operations[112]. - Rising costs for raw materials, labor, and freight could negatively affect the Company's gross margin and profitability[115]. - Supply chain disruptions due to factors like the COVID-19 pandemic and geopolitical conflicts could materially impact operations and profitability[118]. - Consumer spending is sensitive to macroeconomic conditions, including inflation and geopolitical events, which could adversely affect sales[141]. - Economic downturns may lead to declines in consumer purchases, particularly for discretionary premium sporting goods, impacting financial performance[142]. Compliance and Regulatory Challenges - The Company is subject to various U.S. federal, state, and foreign laws and regulations, which may evolve and impact operations[86]. - The cost of compliance as a public company is estimated to exceed $250,000 annually, potentially affecting the company's ability to continue as a going concern[147]. - Legal and regulatory challenges related to intellectual property protection could negatively impact sales and financial condition[153]. Operational Insights - The company experiences increased product usage and higher sales volumes during the first and fourth quarters due to seasonality[83]. - The Company typically increases marketing, sales, and customer service activities during the third and fourth quarters to meet seasonal demand[84]. - The Company employs approximately 72 employees, with 71 full-time and one part-time, many of whom work remotely[95]. - The company has collected extensive swing data since 2017, which offers insights into performance trends and consumer behavior[57]. Stock and Equity Information - As of April 14, 2025, the company had 29,881,672 shares of Class A common stock issued and outstanding, with current directors and executive officers owning approximately 16.8% of these shares[170]. - The company's stockholders' equity was reported at ($10,508,104), indicating non-compliance with Nasdaq's minimum stockholders' equity requirement of $10,000,000[174]. - The company received a notification for not maintaining a minimum bid price of $1 per share for 30 consecutive business days, with a compliance period ending on May 5, 2025[176]. - The company also received a notice regarding its market value of publicly held securities falling below the $15,000,000 threshold required for continued listing on Nasdaq[177]. - The company has never declared or paid dividends on its common stock and does not anticipate doing so in the foreseeable future[199]. Cybersecurity and Technology - The company has engaged an outside consulting firm to review its information systems environment and improve security measures[190]. - The company utilizes a Cloud-only architecture to enhance security and minimize risks associated with system downtime and data breaches[182]. - The company has not experienced any cybersecurity incidents that materially affected its business strategy or financial condition[188].

Core Concept - TruGolf and Digital Legends have partnered to create an advanced golf simulator that allows players to compete against legendary golfer Ben Hogan in a highly realistic digital environment [2][3][4]. Group 1: Technology and Experience - The simulator utilizes TruGolf's E6 Apex platform and cutting-edge AI to accurately recreate golf legends, providing an immersive experience for users [3][4]. - The technology aims to erase the barriers of time, allowing golfers to learn from both historical and contemporary legends [4][5]. Group 2: Market Position and Future Plans - TruGolf is recognized as a leader in golf technology, focusing on innovative AI applications and gamified improvement plans [6]. - Digital Legends is expanding its intellectual property portfolio, aiming to integrate various legendary figures into modern entertainment and sports experiences [7][8]. - The public debut of this technology is scheduled for Augusta, with a full release planned for fall 2025 [4].

Core Insights - TruGolf Links Franchising, LLC is expanding its franchise model by signing a regional development deal with John Young to open 40 new golf simulator centers across Tennessee [1][4] - The company aims to create a modern, inclusive, and community-driven golf experience for players of all skill levels, starting with a flagship location in Knoxville [1][3] - TruGolf has a comprehensive franchise program that includes both individual and regional developer opportunities, featuring state-of-the-art technology and facilities [4][7] Company Overview - TruGolf, Inc. has been a key player in the golf industry since 1983, focusing on innovative indoor golf solutions and technology to make golf more accessible [6] - The company’s mission is to grow the game of golf by making it more available, approachable, and affordable through technology [6] - TruGolf has developed award-winning video games and innovative hardware solutions, including an e-sports platform to connect golfers globally [6] Franchise Model - The franchise program allows for individual franchises and emphasizes regional developers who can manage territories with populations of 1 million or more [7] - Regional developers are responsible for opening flagship locations and developing additional units, receiving compensation for attracting franchisees and providing local support [7] - Each facility will feature advanced simulator bays, dining areas, and pro shops, with flagship locations designed to be 5,000 square feet or more [4]

Core Insights - TruGolf Holdings, Inc. has engaged Eventus Advisory Group for financial services advisory and CFO support to enhance its financial operations and strategic priorities [1][2] - Eventus has over 17 years of experience with micro- and small-cap companies, specializing in financial operations, technical accounting, and SEC compliance [2][6] - TruGolf is working to regain compliance with Nasdaq listing requirements by improving its balance sheet and reducing outstanding liabilities by the March 31, 2025 deadline [3] Company Overview - TruGolf is a leading golf technology company focused on making golf easier through innovative AI applications, enhanced image analysis, and gamified improvement plans [5] - The company has a strong history of delivering innovative golf simulation solutions and is recognized as a leader in the golf technology space [3] Eventus Overview - Eventus is a CFO advisory firm that supports public and private companies with services including accounting, financial operations, regulatory compliance, and corporate governance [6] - The firm aims to help businesses navigate complex financial landscapes, allowing clients to focus on sustainable growth [6]

Core Insights - TruGolf Links is introducing a patented hybrid golf simulator that integrates simulation technology with physical golf courses, enhancing the golfing experience and making it more accessible [1][2] - Nexus Golf has made a strategic investment of $2 million in TruGolf Links to strengthen their partnership and support the development of this innovative technology [3][4] - The hybrid golf simulator is expected to create new revenue streams for golf course operators and franchise partners, allowing for night golf and expanding operational hours [2][5] Company Overview - TruGolf Links is a fast-growing franchise subsidiary of TruGolf Holdings, focusing on redefining golf entertainment through technology [4] - Nexus Golf is dedicated to advancing the future of golf, aiming to make the game more enjoyable for consumers and profitable for business owners [6] Investment Details - Nexus Golf's investment of $2 million is aimed at accelerating TruGolf Links' expansion and enhancing its franchise model [3][4] - The first hybrid franchise location is anticipated to be operational by the end of 2025, indicating a rapid rollout of this new technology [5] Market Impact - The hybrid golf simulator addresses various challenges in traditional golf, such as time consumption, maintenance costs, and accessibility, thereby appealing to a broader audience [5] - Regional developers will play a crucial role in expanding the franchise, targeting territories with populations of 1 million or more [7][8]

Financial Results - TruGolf Holdings, Inc. reported its financial results for the year ended December 31, 2024, on February 18, 2025[5]. - The financial statements and exhibits are part of the Current Report on Form 8-K[8]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4]. - The company has not elected to use the extended transition period for complying with new financial accounting standards[4]. Regulatory Information - The report indicates that the information provided is not intended to be deemed "filed" under the Securities Exchange Act of 1934[6]. - The press release detailing the financial results is attached as Exhibit 99.1[5]. Signatory Information - The report was signed by Brenner Adams, Chief Growth Officer of TruGolf Holdings, Inc.[11].

Core Insights - TruGolf Holdings, Inc. has launched its portable Launch Monitor, LaunchBox, in Canada, utilizing advanced high-speed camera technology for measuring ball data both indoors and outdoors [1][2] - The LaunchBox offers tour-level accuracy at an affordable price, making professional-grade technology accessible to all golfers [2] - The product integrates with TruGolf's E6 APEX virtual golf software, which features over 1,000 playable virtual golf courses and gamified improvement challenges [3] Product Features - LaunchBox captures club and ball data using ultra high-speed cameras without the need for specialty balls or marked clubs, providing instant shot metrics [4] - The device supports 12+ club and ball metrics, driving ranges, and virtual course play, enhanced by 5Ghz Wi-Fi for stable connectivity to PC or iOS devices [4] - E6 APEX software, built with IBM watsonx.ai, incorporates machine learning geospatial tools for accurate virtual course recreation [3] Company Overview - TruGolf is a leader in golf technology, focusing on innovative AI applications and gamified improvement plans to enhance the golfing experience [5] - The company aims to redefine golfing through technology, offering a comprehensive suite of hardware, software, and web products [5]

Core Insights - TruGolf is collaborating with D3 Sports Tech to enhance gamified experiences in golf and multisport arcade games, leveraging D3's expertise in skills-based wagering and compliance [1][14] - The partnership aims to utilize advanced game and player data analytics to increase user engagement and create more immersive virtual experiences [1][14] - D3 Sports Tech's digital wallet services will enable TruGolf to operate tournaments and challenges in over 100 countries, enhancing player engagement and revenue opportunities [7][12] Company Overview - TruGolf is a leading golf technology company focused on making golf more accessible through innovative uses of AI and gamified improvement plans [3][14] - D3 Sports Tech specializes in digital wallet solutions for skills-based gaming, providing legal compliance for cash payouts in over 100 countries [12][15] - Both companies are committed to advancing golf simulation technology and enhancing the overall gaming experience for players [6][7] Market Insights - The collaboration addresses the strong connection between golf and wagering, with a significant percentage of recreational golfers likely to wager on their games [6] - D3 Sports Tech's solutions have been certified by gaming boards in Nevada and New Jersey, ensuring compliance for real-money challenges [12] - The partnership is expected to introduce new features that make gameplay more meaningful and rewarding for users [6][7]

Core Viewpoint - TruGolf Holdings, Inc. has initiated coverage with a price forecast of $2, focusing on golf technology and esports platforms following a merger in Q1 2024 [1] Group 1: Growth Projections - Analyst Jack Vander Aarde projects strong multi-year growth driven by next-generation paid software subscriptions, hardware replacement sales, and accelerated domestic franchise center rollouts [2] - The company has secured commitments for 120 U.S. franchise locations, potentially generating over $24 million in revenue from bundled hardware and equipment [3] - Aarde anticipates revenue growth of 9% in 2024, 20% in 2025, and 30% in 2026 [4] Group 2: Financial Outlook - The company is expected to reach nearly breakeven EBITDA in 2024, with positive EBITDA and free cash flow projected for 2025 [5] - Aarde forecasts a 10-year revenue compound annual growth rate of 20% and EBITDA margins of 20% [5] - TruGolf ended Q3 2024 with $7.5 million in cash, sufficient to support operations for at least 12 months [5] Group 3: Strategic Initiatives - TruGolf may explore strategic growth capital opportunities to accelerate franchise expansion [6] - TRUG shares have seen a price increase of 19.7%, trading at $0.4423 [7]