Core Insights - TruGolf Holdings, Inc. reported record sales of $21.9 million for 2024, marking a 6.2% increase compared to 2023 sales [1] - The company narrowed its net losses by 14.5% to $8.8 million in 2024, down from a net loss of $10.3 million in 2023 [1] - Gross margin improved to 66.7% in 2024 from 61.9% in 2023, while operating expenses decreased by 22% [3][4] Financial Performance - Revenue for 2024 was $21.9 million, up from $20.6 million in 2023 [11] - Loss from operations decreased significantly to $2.1 million in 2024 from $8.7 million in 2023 [3][11] - The company ended 2024 with $10.9 million in cash, a substantial increase from $3.3 million in 2023 [4][9] Operational Highlights - The company implemented effective cost controls, leading to a 40% reduction in SG&A expenses, amounting to a decrease of $4.4 million [4] - Cash flow used in operations improved by over 35%, decreasing from $6.1 million in 2023 to $4.0 million in 2024 [4] - TruGolf anticipates the opening of new franchise locations in the U.S. by the end of Q2 2025, with high interest in its franchise concept [2] Market Position and Future Outlook - The market has shown enthusiastic adoption of TruGolf's new hardware and software products launched in 2024 [2] - The company plans to continue innovating in the virtual golf space with further product developments expected in 2025 [2] - Interest in the franchise model remains strong, with contracts for additional franchises anticipated to be announced throughout 2025 [2]

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]