News

Interactive Strength Inc. d/b/a FORME Reports Third Quarter 2023 Results

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Net Loss and Earnings per Diluted Share of $10.4 million and $0.73

Adjusted EBITDA was a $3.4 million loss, a $5.8 million improvement versus third quarter of 2022

Entered into a definitive agreement to acquire substantially all of the assets of CLMBR, Inc.

AUSTIN, TX – (NewMediaWire) – November 14, 2023 – Interactive Strength Inc. d/b/a FORME (the “Company”, or “FORME”) (NASDAQ: TRNR), today announced its financial results for the third quarter of 2023.   

The Company incurred a net loss of $10.4 million for the third quarter of 2023, or a loss of $0.73 per diluted share, as compared with a net loss of $14.8 million, or a loss of $30.16 per diluted share for the same period in 2022.

Adjusted EBITDA, a non-GAAP financial measure, was a $3.4 million loss for the quarter. Adjusted EBITDA for the third quarter reflects $4.8 million of non-cash stock-based compensation. For more information regarding the non-GAAP financial measures discussed in this press release, please see “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

The Company continued to make substantial progress towards completing the acquisition of the assets of CLMBR, Inc., the maker of the first-to-market connected vertical climber, with a definitive agreement being executed in early October as previously disclosed.

As previously announced, the potential transaction, if consummated, is expected to accelerate FORME’s commercialization path, result in immediate scale across all functions and create a high-growth and profitable platform that sells connected fitness equipment and digital fitness services across B2B and B2C channels. Based on internal projections from the target’s management, 2024 combined revenues are projected to exceed $20 million. By the fourth quarter of 2024, the combined business is expected to be cash flow positive and to achieve positive adjusted EBITDA based on identified cost synergies.  There can be no assurance, however, that such results will be achieved.

CEO Comments

Trent Ward, co-founder and CEO of FORME, said, “The third quarter showed continued reduction in operating expenses, resulting in the lowest adjusted EBITDA loss we have had since becoming commercial at $3.4 million. We expect that our operating expenses further decrease in the fourth quarter as we drive more operating efficiencies, which is setting the stage for us to reach profitability in the next twelve months based on the acquisition of CLMBR.”

 

“We believe that this is a transformational acquisition, both in its potential to help drive the business to profitability toward the end of next year and by shifting the channel where the vast majority of the revenue is generated to B2B. We continue to grow our distribution footprint in different B2B verticals and are excited about gaining a partner such as WOODWAY to really drive the business forward.”

 

“We sold substantially all of our Lift inventory in the third quarter, but we expect to have inventory available for consumers in time for the holiday and new year peak period that is upcoming. Our focus continues to be on generating significant recurring revenue per device, reaching a record of $1,723 (annualized) in the third quarter.”

 

“The priority for the rest of the year is to focus on the consummation of the acquisition of CLMBR and we are making meaningful progress towards that goal.”

About Interactive Strength Inc.

Interactive Strength Inc. (NASDAQ: TRNR) d/b/a Forme is a digital fitness platform that combines premium connected fitness hardware products with personal training and coaching (from real humans) to deliver an immersive experience and better outcomes for both consumers and trainers. We believe we are the pioneer brand in the emerging sector of virtual personal training and health coaching and that our products and services are accelerating a powerful shift towards outcome-driven fitness solutions.  The company is headquarters in Austin, Texas, USA.  Visit formelife.com for more information, and connect with Forme on Facebook, and Instagram.

Channels for Disclosure of Information

In compliance with disclosure obligations under Regulation FD, we announce material information to the public through a variety of means, including filings with the Securities and Exchange Commission (“SEC”), press releases, company blog posts, public conference calls, and webcasts, as well as via our investor relations website. Any updates to the list of disclosure channels through which we may announce information will be posted on the investor relations page on our website. The inclusion of our website address or the address of any third-party sites in this press release are intended as inactive textual references only.

Non-GAAP Financial Measures

In addition to our results determined in accordance with accounting principles generally accepted in the United States, or GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance.

 

The Company’s non-GAAP financial measure in this press release consist of Adjusted EBITDA, which we define as net (loss) income, adjusted to exclude: other expense (income), net; income tax expense (benefit); depreciation and amortization expense; stock-based compensation expense; gain on debt extinguishment; vendor settlements; transaction related expenses; and IPO readiness costs and expenses.

 

The Company believes the above adjusted financial measures help facilitate analysis of operating performance and the operating leverage in our business. We believe that these non-GAAP financial measures are useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

§   Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization expense, other expense (income), net, and provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired;

§   Our management uses Adjusted EBITDA in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance; and

§   Adjusted EBITDA provides consistency and comparability with our past financial performance, facilitate period-to-period comparisons of our core operating results, and may also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

 

Our use of Adjusted EBITDA, or any other non-GAAP financial measures we may use in the future, is presented for supplemental informational purposes only and should not be considered as a substitute for, or in isolation from, our financial results presented in accordance with GAAP. Further, these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are, or may in the future be, as follows:

·          Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

·          Adjusted EBITDA excludes stock-based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy;

·          Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us;

·          Adjusted EBITDA does not reflect impairment charges for fixed assets, and gains (losses) on disposals for fixed assets;

·          Adjusted EBITDA does not reflect gains associated with debt extinguishments.

·          Adjusted EBITDA does not reflect gains associated with vendor settlements.

·          Adjusted EBITDA does not reflect IPO readiness costs and expenses that do not qualify as equity issuance costs.

·          Adjusted EBITDA does not reflect transaction related expenses from CLMBR acquisition.

·          Adjusted EBITDA does not reflect non cash fair value gains (losses) on convertible notes, warrants and unrealized currency gains (losses).

 

Further, the non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. For example, the expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results. Because companies in our industry may calculate such measures differently than we do, their usefulness as comparative measures is limited. Because of these limitations, Adjusted EBITDA should be considered along with other operating and financial performance measures presented in accordance with GAAP.

 

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. Forward-looking statements include, but are not limited to, statements regarding:  the expectations as to the Company’s progress toward consummating the acquisition of the assets of CLMBR, Inc.; the anticipated timing of availability of additional inventory; aspects of the potential transaction, including the expected or potential impact and benefits thereof (such as the anticipated acceleration of FORME’s commercialization path, the ability to achieve immediate scale across all functions and create a high-growth and profitable platform, and the anticipated impact on FORME’s operating results and financial position, including statements regarding internal management projections of the target and the potential transaction, including with respect to 2023 and 2024 combined gross revenues and that, by the fourth quarter of 2024, the combined business is expected to be cash flow positive and to have positive adjusted EBITDA based on identified cost synergies if the gross revenue projections are achieved; the anticipated timeframe for the potential transaction; the Company’s expectations as to decreasing operating expenses in the fourth quarter and its belief that this will help position the Company to potentially reach profitability toward the end of 2024; the anticipated timing of availability of inventory;, the utility of non-GAAP financial measures; and the anticipated features and benefits of our product and service offerings.  These forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those expressed or implied in such forward-looking statements. These risk and uncertainties include, but are not limited to, the following: our ability to achieve or maintain profitability; our future capital needs and ability to obtain additional financing to fund our operations; our ability to continue as a “going concern”; the growth rate, if any, of our business and revenue and our ability to manage any such growth; risks related to our subscription or any future revenue model; our limited operating history; our ability to compete successfully; fluctuations in our operating results and factors affecting the same; our reliance on sales of our Forme Studio equipment; our ability to sustain competitive pricing levels; the growth rate, if any, of our target markets and our industry; the ability of our customers to obtain financing to purchase our products; our ability to forecast demand for our products and services, anticipate consumer preferences, and manage our inventory; our ability to attract and retain members, personal trainers, health coaches, and fitness instructors; our ability to expand our commercial and corporate wellness business; unforeseen costs and potential liability in connection with our products and services; our dependence on third-party systems and services; and risks related to potential acquisitions, intellectual property, litigation, dependence on key personnel, privacy, cybersecurity, and other regulatory, tax, and accounting matters, and international operations (including the impact of any geopolitical risks such as regional unrest or outbreak of hostilities or war), as well as the risks and uncertainties discussed in our most recently filed periodic reports on Form 10-Q and subsequent filings and as detailed from time to time in our SEC filings. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. All forward-looking statements set forth in this release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. These forward-looking statements reflect our management’s beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this press release. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

TRNR Investor Contact
ir@formelife.com

INTERACTIVE STRENGTH INC. AND SUBSIDIARIES
KEY PERFORMANCE AND BUSINESS METRICS
(unaudited)
(In thousands)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Total Households (at end of period)

 

 

226

 

 

 

173

 

 

 

226

 

 

 

173

 

Total Members (at end of period)

 

232

 

 

192

 

 

232

 

 

 

192

 

Annual Recurring Revenue

 

$

464,425

 

 

$

223,547

 

 

$

464,425

 

 

$

223,547

 

Average Annualized Recurring Revenue per Household

 

$

1,723

 

 

$

1,289

 

 

$

1,723

 

 

$

1,289

 

Net Dollar Retention Rate

 

 

185

%

 

NM

 

 

 

185

%

 

NM

 

Net Loss (in thousands)

 

$

(10,408

)

 

$

(14,754

)

 

$

(39,971

)

 

$

(39,415

)

Adjusted EBITDA (in thousands)

 

$

(3,373

)

 

$

(9,160

)

 

$

(13,532

)

 

$

(29,808

)

NM – Not meaningful.

Adjusted EBTIDA –  Please refer to the reconciliation table titled “Reconciliation of Non-GAAP Financial Measures”

 

Households

We believe our ability to expand the number of households is an indicator of our market penetration and growth. Total households are defined as individuals or entities with an active paid membership and training.

 

Members

Our total member count is a key indicator of the size of our future revenue opportunity. We define a member as someone who has a unique profile on our platform, either as the primary membership owner or an associated user within the household.

 

ARR

Given the recurring nature of usage on our platform, we view annual recurring revenue as an important indicator of our progress towards growth targets and of the overall health of the member base. We calculate ARR at a point in time by multiplying the latest monthly period’s revenue by 12.

 

ARPH

We believe that our average recurring revenue per household, which we refer to as ARPH, is a strong indication of our ability to deliver value to our members and we use this metric to track expanding usage on our platform by our existing members. We calculate ARPH on a monthly basis as our total revenue in that period divided by the number of households determined as of the last day of that period. For a quarterly or annual period, ARPH is determined as the weighted average monthly ARPH over such three or 12-month period.

 

Net Dollar Retention Rate

Our ability to maintain long-term revenue growth and achieve profitability is dependent on our ability to retain and grow revenue from our existing members. To help us measure our performance in this area, we monitor our net dollar retention rate. We calculate net dollar retention rate monthly by starting with the revenue from the cohort of all members during the corresponding month 12 months prior, or the Prior Period Revenue. We then calculate the revenue from these same members as of the current month, or the Current Period Revenue, including any expansion and net of any contraction or attrition from these members over the last 12 months. The calculation also includes revenue from members that generated revenue before, but not in, the corresponding month 12 months prior, but subsequently generated revenue in the current month and are therefore reflected in the Current Period Revenue. We include this group of re-engaged members in this calculation because our members may use our platform for workouts that stop and start over time. We then divide the total Current Period Revenue by the total Prior Period Revenue to arrive at the net dollar retention rate for the relevant month. For a quarterly or annual period, the net dollar retention rate is determined as the average monthly net dollar retention rates over such three or 12-month period.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
INTERACTIVE STRENGTH INC. AND SUBSIDIARIES
CONSOLIDATED RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
(unaudited)
(In thousands)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

(in thousands)

 

 

Net Loss

 

$

(10,408

)

 

$

(14,754

)

 

$

(39,971

)

 

$

(39,415

)

 

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other expense (income), net

 

 

333

 

 

 

604

 

 

 

(657

)

 

 

1,512

 

 

Income tax benefit (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

1,696

 

 

 

1,740

 

 

 

4,931

 

 

 

4,667

 

 

Stock-based compensation expense (1)

 

 

4,836

 

 

 

3,773

 

 

 

23,773

 

 

 

3,951

 

 

Gain on extinguishment of debt (2)

 

 

 

 

 

(523

)

 

 

 

 

 

(523

)

 

Vendor settlements (3)

 

 

 

 

 

 

 

 

(2,595

)

 

 

 

 

IPO readiness costs and expenses (4)

 

 

 

 

 

 

 

 

817

 

 

 

 

 

Transaction related expenses (5)

 

 

170

 

 

 

 

 

 

170

 

 

 

 

 

Adjusted EBITDA (6)

 

$

(3,373

)

 

$

(9,160

)

 

$

(13,532

)

 

$

(29,808

)

 

 

(1)   Stock based compensation

(2)   Gain forgiveness of debt from PPP Loan.

(3)   Gain on forgiveness of debt of $2.6 million related to the third-party Content Provider.

(4)   Adjusts for IPO readiness costs and expenses that do not qualify as equity issuance costs.

(5)   Adjusts for transaction costs related to CLMBR acquisition.

(6)   Please refer to the “Non-GAAP Financial Measures” section of the press release.

INTERACTIVE STRENGTH INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except share and per share amounts)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Fitness product revenue

 

$

206

 

 

$

144

 

 

$

502

 

 

$

402

 

Membership revenue

 

 

38

 

 

 

25

 

 

 

94

 

 

 

53

 

Training revenue

 

 

62

 

 

 

32

 

 

 

183

 

 

 

32

 

Total revenue

 

 

306

 

 

 

201

 

 

 

779

 

 

 

487

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of fitness product revenue

 

 

(360

)

 

 

(764

)

 

 

(1,529

)

 

 

(2,047

)

Cost of membership

 

 

(960

)

 

 

(1,545

)

 

 

(2,861

)

 

 

(3,537

)

Cost of training

 

 

(109

)

 

 

(387

)

 

 

(300

)

 

 

(1,077

)

Total cost of revenue

 

 

(1,429

)

 

 

(2,696

)

 

 

(4,690

)

 

 

(6,661

)

Gross loss

 

 

(1,123

)

 

 

(2,495

)

 

 

(3,911

)

 

 

(6,174

)

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,357

 

 

 

4,854

 

 

 

7,796

 

 

 

15,284

 

Sales and marketing

 

 

282

 

 

 

1,193

 

 

 

1,473

 

 

 

5,194

 

General and administrative

 

 

6,313

 

 

 

6,131

 

 

 

30,043

 

 

 

11,774

 

Total operating expenses

 

 

8,952

 

 

 

12,178

 

 

 

39,312

 

 

 

32,252

 

Loss from operations

 

 

(10,075

)

 

 

(14,673

)

 

 

(43,223

)

 

 

(38,426

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

(179

)

 

 

(417

)

 

 

25

 

 

 

(740

)

Interest (expense)

 

 

(154

)

 

 

(187

)

 

 

(1,382

)

 

 

(748

)

Gain upon debt forgiveness

 

 

 

 

 

523

 

 

 

2,595

 

 

 

523

 

Change in fair value of convertible notes

 

 

 

 

 

 

 

 

(252

)

 

 

(24

)

Change in fair value of warrants

 

 

 

 

 

 

 

 

2,266

 

 

 

 

Total other income (expense), net

 

 

(333

)

 

 

(81

)

 

 

3,252

 

 

 

(989

)

Loss before provision for income taxes

 

 

(10,408

)

 

 

(14,754

)

 

 

(39,971

)

 

 

(39,415

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(10,408

)

 

$

(14,754

)

 

$

(39,971

)

 

$

(39,415

)

Net loss per share – basic and diluted

 

$

(0.73

)

 

$

(30.16

)

 

$

(3.40

)

 

$

(93.10

)

Weighted average common stock outstanding—basic and diluted

 

 

14,186,222

 

 

 

489,132

 

 

 

11,750,907

 

 

 

423,362

 

INTERACTIVE STRENGTH INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share amounts)

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

30

 

 

$

226

 

Accounts receivable, net of allowances

 

 

7

 

 

 

 

Inventories, net

 

 

1,443

 

 

 

4,567

 

Vendor deposits

 

 

3,280

 

 

 

3,603

 

Prepaid expenses and other current assets

 

 

962

 

 

 

1,426

 

Total current assets

 

 

5,722

 

 

 

9,822

 

Property and equipment, net

 

 

583

 

 

 

1,326

 

Right-of-use-assets

 

 

296

 

 

 

110

 

Intangible assets, net

 

 

2,866

 

 

 

3,834

 

Long-term inventories, net

 

 

3,121

 

 

 

 

Deferred offering costs

 

 

 

 

 

2,337

 

Other assets

 

 

5,683

 

 

 

7,018

 

Total Assets

 

$

18,271

 

 

$

24,447

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

8,921

 

 

$

7,743

 

Accrued expenses and other current liabilities

 

 

1,951

 

 

 

5,304

 

Operating lease liability, current portion

 

 

53

 

 

 

106

 

Deferred revenue

 

 

66

 

 

 

29

 

Loan payable

 

 

6,266

 

 

 

6,708

 

Senior secured notes

 

 

1,038

 

 

 

 

Income tax payable

 

 

7

 

 

 

7

 

Convertible note payable

 

 

 

 

 

4,270

 

Total current liabilities

 

 

18,302

 

 

 

24,167

 

Operating lease liability, net of current portion

 

 

243

 

 

 

9

 

Warrant liabilities

 

 

 

 

 

3,004

 

Total liabilities

 

$

18,545

 

 

$

27,180

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

Common stock, par value $0.0001; 900,000,000 and 369,950,000 shares authorized as of September 30, 2023 and December 31, 2022, respectively; 14,178,514 and 2,450,922 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively.

 

 

7

 

 

 

4

 

Additional paid-in capital

 

 

154,942

 

 

 

112,436

 

Accumulated other comprehensive income

 

 

286

 

 

 

365

 

Accumulated deficit

 

 

(155,509

)

 

 

(115,538

)

Total stockholders’ equity (deficit)

 

 

(274

)

 

 

(2,733

)

Total liabilities and stockholders’ equity (deficit)

 

$

18,271

 

 

$

24,447

 

INTERACTIVE STRENGTH INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(In thousands)

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net loss

 

$

(39,971

)

 

$

(39,415

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Foreign currency

 

 

64

 

 

 

821

 

Depreciation

 

 

743

 

 

 

932

 

Amortization

 

 

4,188

 

 

 

3,735

 

Non-cash lease expense

 

 

66

 

 

 

 

Inventory valuation loss

 

 

261

 

 

 

1,106

 

Stock-based compensation

 

 

23,773

 

 

 

3,951

 

Gain upon debt forgiveness

 

 

(2,595

)

 

 

(523

)

Interest expense

 

 

77

 

 

 

746

 

Amortization of debt discount

 

 

1,305

 

 

 

 

Change in fair value of convertible notes

 

 

252

 

 

 

24

 

Warrants issued to service providers

 

 

442

 

 

 

 

Change in fair value of warrants

 

 

(2,266

)

 

 

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts receivable

 

 

(7

)

 

 

 

Inventories

 

 

(442

)

 

 

(2,806

)

Prepaid expenses and other current assets

 

 

464

 

 

 

(721

)

Vendor deposits

 

 

323

 

 

 

316

 

Deferred offering costs

 

 

 

 

 

(1,123

)

Long-term inventories

 

 

 

 

 

(313

)

Other assets

 

 

(10

)

 

 

(1

)

Accounts payable

 

 

585

 

 

 

1,642

 

Accrued expenses and other current liabilities

 

 

(780

)

 

 

2,141

 

Deferred revenue

 

 

37

 

 

 

(4

)

Operating lease liabilities

 

 

(70

)

 

 

 

Net cash used in operating activities

 

 

(13,561

)

 

 

(29,492

)

Cash Flows From Investing Activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

 

 

 

(501

)

Acquisition of internal use software

 

 

(349

)

 

 

(2,744

)

Acquisition of software and content

 

 

(797

)

 

 

(4,958

)

Net cash used in investing activities

 

 

(1,146

)

 

 

(8,203

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

Proceeds from issuance of related party loans

 

 

465

 

 

 

14

 

Payments of related party loans

 

 

(483

)

 

 

(1,178

)

Proceeds from issuance of common stock upon initial public offering, net of offering costs

 

 

10,820

 

 

 

 

Payments of offering costs

 

 

(1,453

)

 

 

 

Proceeds from senior secured notes

 

 

3,030

 

 

 

 

Payments of senior secured notes

 

 

(2,000

)

 

 

 

Proceeds from issuance of Preferred Stock – Series A, net of issuance costs

 

 

 

 

 

29,997

 

Proceeds from issuance of convertible notes

 

 

 

 

 

5,902

 

Proceeds from the issuance of common stock A

 

 

4,247

 

 

 

2,060

 

Proceeds from the exercise of common stock options

 

 

30

 

 

 

6

 

Repayment Bounce Back Loan

 

 

 

 

 

(69

)

Net cash provided by financing activities

 

 

14,656

 

 

 

36,732

 

Effect of exchange rate on cash

 

 

(145

)

 

 

(74

)

Net Change In Cash and Cash Equivalents

 

 

(196

)

 

 

(1,037

)

Cash and restricted cash at beginning of year

 

 

226

 

 

 

1,697

 

Cash and restricted cash at end of year

 

$

30

 

 

$

660

 

Supplemental Disclosure Of Cash Flow Information:

 

 

 

 

 

 

Property & equipment in AP

 

 

18

 

 

 

175

 

Inventories in AP and accrued

 

 

815

 

 

 

783

 

Issuance of Series A preferred stock in connection with convertible notes payable

 

 

 

 

 

5,926

 

Offering costs in AP and accrued

 

 

3,155

 

 

 

 

Exercise of stock warrants

 

 

2,468

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

313

 

 

 

 

Conversion of convertible notes into common stock

 

 

4,521

 

 

 

 

Decrease in right-of-use asset and operating lease liabilities due to lease termination

 

 

61

 

 

 

 

Issuance of Common Stock from Rights Offering

 

 

202

 

 

 

 

Net exercise of options

 

 

323

 

 

 

 

Stock-based compensation capitalized in software

 

 

745

 

 

 

 

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