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]
Interactive Strength (TRNR) - 2024 Q2 - Quarterly Report