Revenue Performance - Revenue for the six months ended June 30, 2025, was $9,700,094, an increase of $814,909 or 9% compared to $8,885,185 for the same period in 2024[122]. - Revenue increased by $437,701, or 11%, for the three months ended June 30, 2025, compared to the same period in 2024, driven by greater product acceptance and market penetration[131]. - The increase in revenue is attributed to greater product acceptance and market penetration within the industry[125]. Cost and Expenses - Cost of revenue increased by $865,924 or 27%, reaching $4,125,158 for the six months ended June 30, 2025, primarily due to inventory adjustments and costs related to the TruTrack product[126]. - Cost of revenues rose by $1,098,747, or 85%, for the three months ended June 30, 2025, primarily due to inventory adjustments and increased costs related to the TruTrack product[132]. - Total operating expenses rose by $1,324,509 or 18%, totaling $8,719,186 for the six months ended June 30, 2025, with selling, general, and administrative expenses increasing by $1,519,387 or 40%[127]. - Total operating expenses increased by $423,938, or 13%, for the three months ended June 30, 2025, with selling, general, and administrative expenses rising by $619,470, or 31%[133]. Operating Loss - Operating loss for the six months ended June 30, 2025, was $3,104,250, compared to a loss of $1,728,726 for the same period in 2024, reflecting a variance of $1,375,524[123]. - The company anticipates continued operating losses as it executes its development plans for 2025 and other strategic initiatives[136]. Other Income and Cash Flow - Other income (expenses) increased by $1,745,076 or 153%, resulting in a total of $(2,887,542) for the six months ended June 30, 2025, primarily due to interest and amortization expenses[128]. - Other income (expenses) increased by $667,157, or 85%, for the three months ended June 30, 2025, mainly due to interest and amortization expenses related to PIPE Convertible Notes[134]. - Net cash used in operating activities was $1,354,546 for the six months ended June 30, 2025, primarily due to a net loss of $5,991,792[139]. - Net cash provided by financing activities was $2,246,572 for the six months ended June 30, 2025, mainly from net proceeds of PIPE Convertible Notes[142]. Assets and Liabilities - As of June 30, 2025, cash on hand was $10,159,359, with a working capital surplus of $6,554,656, compared to a deficiency of $982,237 as of December 31, 2024[135]. - Current assets increased to $20,985,256 as of June 30, 2025, primarily due to the recognition of a $5,651,310 asset related to Series A Preferred Stock[137]. - The increase in current liabilities was primarily due to the reclassification of $3,734,900 in PIPE Convertible Notes from non-current to current liabilities[137]. Product Development and Initiatives - The latest launch monitor, Apogee, features a voice command system and a laser indicator, aimed at improving user experience and accuracy[115]. - TruGolf's software, E6 Connect, records over 725,000 indoor golf shots per day and integrates with approximately 90% of golf technology hardware in the market[117]. - The company has established the Virtual Golf Association (VGA), allowing users to earn points through gameplay and compete in worldwide leaderboard events[118]. Stock and Shareholder Information - A reverse stock split of 1-for-50 was executed on June 23, 2025, reducing Class A common shares from 40,532,150 to 810,617[120].
Deep Medicine Acquisition (DMAQ) - 2026 Q1 - Quarterly Report