TruGolf(TRUG) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue for the nine months ended September 30, 2025, was $13,806,059, a decrease of $1,315,921 or 9% compared to $15,121,980 for the same period in 2024[127] - Revenue decreased by $2,130,830, or 34%, for the three months ended September 30, 2025, compared to the same period in 2024[134] Cost and Expenses - Cost of revenue increased by $200,458, or 4%, for the nine months ended September 30, 2025, primarily due to an increase in simulator costs of $338,627[129] - Cost of revenues decreased by $665,465, or 35%, for the three months ended September 30, 2025, primarily due to the decrease in revenue[135] - Total operating expenses rose by $1,844,917, or 17%, for the nine months ended September 30, 2025, driven by a 55% increase in professional fees[130] - Total operating expenses increased by $520,410, or 15%, for the three months ended September 30, 2025, with selling, general and administrative expenses rising by $1,761,630, or 111%[136] Operating Loss and Income - Operating loss for the nine months ended September 30, 2025, was $4,217,744, compared to an operating loss of $856,448 for the same period in 2024[127] - The company recorded a loss before income taxes of $13,270,036 for the nine months ended September 30, 2025, compared to a loss of $2,931,370 in 2024[127] - Other income (expenses) increased by $6,977,370, or 336%, for the nine months ended September 30, 2025, primarily due to a loss on extinguishment of debt of $6,135,160[131] - Other income (expenses) increased by $5,232,069, or 561%, for the three months ended September 30, 2025, mainly due to a loss on extinguishment of debt[137] Cash Flow and Working Capital - As of September 30, 2025, cash on hand was $13,535,121, with a working capital surplus of $4,159,517, compared to a deficiency of $982,237 as of December 31, 2024[138] - Net cash used in operating activities was $1,978,411 for the nine months ended September 30, 2025, primarily due to a net loss of $13,270,036[143] - Net cash used in investing activities was $2,493,600 for the nine months ended September 30, 2025, primarily due to an increase in capitalized software[145] - Net cash provided by financing activities was $7,125,055 for the nine months ended September 30, 2025, mainly from net proceeds of PIPE Convertible Notes and Series A Preferred Warrants[147] - Current assets increased to $19,158,839 as of September 30, 2025, up from $14,792,931 as of December 31, 2024[141] Strategic Initiatives and Future Outlook - The Company anticipates continued operating losses as it executes its development plans for 2025 and other strategic initiatives[139] Product and Market Development - The latest launch monitor, Apogee, features a voice command system and a laser indicator, enhancing user experience[118] - TruGolf's software records over 725,000 indoor golf shots per day, integrating with approximately 90% of golf technology hardware in the global market[121] - The company’s hardware offerings range from just under $400 to over $100,000, providing a wide range of pricing options[119] - TruGolf has established the Virtual Golf Association, allowing users to earn points through gameplay and compete for real-world prizes[122]