Financial Performance - Total revenue for Q3 2025 was $4.815 million, a 139.5% increase from $2.014 million in Q3 2024[10] - Fitness product revenue reached $4.553 million in Q3 2025, up 181.5% from $1.617 million in Q3 2024[10] - Gross profit for Q3 2025 was $825 thousand, compared to a gross loss of $288 thousand in Q3 2024[10] - Net loss for Q3 2025 was $5.231 million, an improvement from a net loss of $7.141 million in Q3 2024[10] - The net loss for the nine months ended September 30, 2025, was $14,012,000, compared to a net loss of $29,172,000 for the same period in 2024, representing a 52% improvement[17] - The net loss for the three months ended September 30, 2025, was $5.231 million, compared to a net loss of $7.141 million for the same period in 2024, representing a 26.7% improvement[62] Assets and Liabilities - Total current assets increased to $17.372 million as of September 30, 2025, from $8.218 million as of December 31, 2024[8] - Total liabilities rose to $67.981 million as of September 30, 2025, compared to $27.055 million as of December 31, 2024[8] - The company reported a total stockholders' equity of $14.857 million as of September 30, 2025, up from $7.115 million as of December 31, 2024[8] - Digital assets increased to $36.770 million as of September 30, 2025, with no digital assets reported as of December 31, 2024[8] - The company has total outstanding debt of approximately $46.4 million as of the issuance date, with about $12.4 million scheduled to mature over the next twelve months[38] Cash Flow and Investments - Cash used in operating activities for the nine months ended September 30, 2025, was $8,161,000, slightly better than $8,909,000 used in the same period of 2024[17] - The company reported a significant cash outflow of $53,490,000 in investing activities for the nine months ended September 30, 2025, compared to $1,407,000 in 2024, primarily due to the acquisition of digital assets[17] - Financing activities generated $62,248,000 in cash for the nine months ended September 30, 2025, compared to $12,947,000 in 2024, indicating a strong capital influx[17] Stock and Equity - The weighted average common stock outstanding for Q3 2025 was 1,682,660 shares, compared to 4,653 shares in Q3 2024[10] - The company issued 1.5 million shares of Series A preferred stock upon conversion of debt[14] - The company issued common stock upon the exercise of stock options, resulting in $373,000[14] - The company issued 1,250,000 shares of Series LTI Convertible Preferred Stock valued at $2.5 million to executive officers and board members, which vests 100% upon grant date[87] Acquisitions - The Company completed the acquisition of Wattbike Holdings Limited for a total purchase price of approximately $4.0 million on July 1, 2025[30] - The Company completed the acquisition of CLMBR, Inc. for a total purchase price of approximately $16.1 million on February 2, 2024[32] - The company plans to acquire approximately 99.8% stake in Sportstech with an initial investment of $15,000,000 through the issuance of Series D Non-voting Convertible Preferred Stock[24] Research and Development - Research and development expenses decreased to $404 thousand in Q3 2025 from $2.212 million in Q3 2024[10] - Research and development expenses for the three months ended September 30, 2025, were $337,000, down from $1.006 million in the same period of 2024, a decrease of 66.5%[62] Digital Assets - The company recognized a change in fair value of digital assets amounting to $10.605 million for the three months ended September 30, 2025[62] - The company recognized a loss of $10.6 million and $10.5 million related to changes in the fair value of digital assets for the three and nine months ended September 30, 2025, respectively[197] - The company’s digital assets are categorized as Level 1 investments, with a total value of $36,770,000 as of September 30, 2025[195] Compliance and Regulatory Issues - The Company has received two notices from Nasdaq regarding noncompliance with listing requirements, but has since regained compliance with both[40] - The Company is subject to a Mandatory Panel Monitor for compliance with Nasdaq listing rules for one year following the compliance letters received[40] - The Company has been unable to remain in compliance with certain Nasdaq qualifications in the past, raising doubts about its ability to continue as a going concern[41] Debt and Interest - The company incurred interest expense of $4.017 million for the three months ended September 30, 2025, compared to $1.831 million in the same period of 2024, reflecting a 119% increase[62] - The company has limited available liquidity of approximately $0.6 million of unrestricted cash and cash equivalents to fund operations over the next twelve months[38] - The company recorded a gain on extinguishment of $0.3 million from the troubled debt restructuring of promissory notes[90] Miscellaneous - The company operates primarily in the United States, the United Kingdom, and Taiwan, with most long-lived assets held in the United States as of September 30, 2025[46] - The company expects to hold its digital assets as a long-term investment, classifying them as non-current assets as of September 30, 2025[50]
Interactive Strength (TRNR) - 2025 Q3 - Quarterly Report