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].
Interactive Strength (TRNR) - 2024 Q2 - Quarterly Results