Salt Lake City, Utah, Nov. 15, 2024 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading golf technology company, announced today its results for the third quarter of 2024. The Company reported strong third quarter sales of $6,236,795, an increase of 82 percent as compared to the third quarter of 2023. EPS for the third quarter of 2024 was $0.00. EBITDA for the third quarter of 2024 was $1.1 million, inclusive of $148,000 of franchising expenses and zero franchising revenues recognized. The gains were driven by enthusiastic market adoption of new hardware and software products launched earlier this year.
"This strong third quarter growth is a direct result of the significant investment we have made in our technology over the past two years, "said Chief Executive Officer and Director Chris Jones. "We believe this is just the beginning of a dynamic growth period for TruGolf and the sports technology industry. In addition to our hardware and software sales, our franchise concept, launched in the third quarter, has an initial 120 franchise locations committed to coming online all throughout the United States. This franchise initiative represents the future of how users will engage with the sport and adds significant tailwinds to our growing technology sales. The enthusiastic adoption of our new Hardware, Software, and Web products, combined with the enthusiasm for our franchise concept, have led us to increase our full year revenue target and EBIDTA goals for 2024."
Revised Outlook:
- Total revenue for end of 2024 is expected to grow by 9%-13% as compared to end of 2023 levels.
- EBITDA for the second half of 2024 is estimated to range between $1,100,000 to $1,500,000, showing a return to profitability following significant investments made over the past two years in technology designed to drive significant, future growth and expansion opportunities.
Financial Operations:
- Gross margin for the third quarter of 2024 was 69% as compared to 55 % in the third quarter of 2023.
- Year to date gross margin was 66% as compared to 67% during the same period in 2023.
- Operating income for third quarter 2024 hit $872,000, an increase of 137% compared to the third quarter 2023 operating loss of ($2.3 million).
- The 2024 year to date operating loss is 87% lower at ($856,000) as compared to ($6.8 million) for the same period in 2023.
- Year to date 2024 compensation expenses decreased by $1.5 million as compared to the same period in 2023.
- Year to date 2024 SGA expenses also declined by $4.1 million as compared to the same period in 2023.
- Free cash flow year to date 2024 was $3.1 million as compared to ($6.1 million) during the same period in 2023.
- EBITDA year to date 2024 is ($277,000) inclusive of $306,539 of franchising expenses and zero franchising revenue recognized. Excluding franchising expenses, EBITDA it is slightly positive year to date 2024.
Disclaimer on Forward Looking Statements
This news release contains certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute "forward-looking statements" and accordingly, involve estimates, assumptions, forecasts, judgements and uncertainties. Forward-looking statements include, without limitation, the Company's forecasts for total sales and EBITDA discussed above. There are a number of factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking statements. Such factors are detailed in the Forward Looking Statements and Risk Factors sections of the Company's S-1 filed with the Securities and Exchange Commission. We do not undertake an obligation to update our forward-looking statements to reflect future events.
About TruGolf, Inc.:
TruGolf is a golf technology company, committed to making golf, easy. From innovative uses for AI to build content and enhanced image and spatial analysis, to gamified golf improvement plans, TruGolf is an industry leader in the growing technological revolution in the sport of golf. Since TruGolf's founding it has redefined what is possible with golf through technology. TruGolf's suite of Hardware, Software, and Web Products make the game easier to Play, Improve and Enjoy.
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023
| 2024 | 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,452,185 | $ | 3,297,564 | ||||
| Restricted cash | - | 2,100,000 | ||||||
| Marketable investment securities | - | 2,478,953 | ||||||
| Accounts receivable, net | 4,542,097 | 2,398,872 | ||||||
| Inventory, net | 2,324,230 | 2,119,084 | ||||||
| Prepaid expenses | 99,032 | 262,133 | ||||||
| Total current assets | 14,417,544 | 12,656,606 | ||||||
| Property and equipment, net | 131,581 | 234,308 | ||||||
| Capitalized software development costs, net | 1,738,417 | - | ||||||
| Right-of-use assets | 721,051 | 972,663 | ||||||
| Other long-term assets | 31,097 | 1,905,983 | ||||||
| Total assets | $ | 17,039,690 | $ | 15,769,560 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,288,208 | $ | 2,059,771 | ||||
| Customer deposits | 4,600,105 | 1,704,224 | ||||||
| Deferred revenue | 575,000 | - | ||||||
| Notes payable, current portion | 9,854 | 9,425 | ||||||
| Notes payable to related parties, current portion | 1,937,000 | 1,237,000 | ||||||
| Line of credit, bank | 802,738 | 802,738 | ||||||
| Margin line of credit account | - | 1,980,937 | ||||||
| Convertible notes payable | 954,622 | 954,622 | ||||||
| Notes payable assumed in Merger | 1,465,000 | - | ||||||
| Accrued interest | 1,649,341 | 459,872 | ||||||
| Accrued and other current liabilities | 1,201,071 | 1,125,495 | ||||||
| Accrued and other current liabilities - assumed in Merger | 295,008 | - | ||||||
| Lease liability, current portion | 375,660 | 334,255 | ||||||
| Total current liabilities | 16,153,607 | 10,668,339 | ||||||
| Non-current liabilities: | ||||||||
| Notes payable, net of current portion | 12,290 | 2,402,783 | ||||||
| Note payables to related parties, net of current portion | 874,000 | 861,000 | ||||||
| PIPE loan payable, net | 4,232,448 | - | ||||||
| Dividend notes payable | 4,023,923 | 4,023,923 | ||||||
| Gross sales royalty payable | 1,000,000 | 1,000,000 | ||||||
| Lease liability, net of current portion | 380,386 | 668,228 | ||||||
| Other liabilities | 589,619 | 63,015 | ||||||
| Total liabilities | 27,266,273 | 19,687,288 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' deficit: | ||||||||
| Preferred stock, $0.0001 par value, 10 million share authorized; zero shares issued and outstanding, respectively | - | - | ||||||
| Common stock - Series A, $0.0001 par value, 90 million shares authorized; 11,887,985 and 13,098 shares issued and outstanding, respectively. | 1,189 | 120 | ||||||
| Common stock - Series B, $0.0001 par value, 10 million shares authorized; 1,716,860 and 0 shares issued and outstanding, respectively. | 172 | - | ||||||
| Treasury stock at cost, 4,692 shares of common stock held, respectively | (2,037,000 | ) | (2,037,000 | ) | ||||
| Additional paid-in capital | 7,100,503 | 10,479,738 | ||||||
| Accumulated other comprehensive loss | - | (1,662 | ) | |||||
| Accumulated deficit / losses | (15,291,447 | ) | (12,358,924 | ) | ||||
| Total stockholders' deficit | (10,226,583 | ) | (3,917,728 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 17,039,690 | $ | 15,769,560 | ||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
(unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues, net | $ | 6,236,795 | $ | 3,431,735 | $ | 15,121,980 | $ | 13,788,700 | ||||||||
| Cost of revenues | 1,924,093 | 1,533,691 | 5,183,328 | 4,531,429 | ||||||||||||
| Gross profit | 4,312,702 | 1,898,044 | 9,938,652 | 9,257,271 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Royalties | 166,631 | 130,610 | 719,668 | 447,366 | ||||||||||||
| Salaries, wages and benefits | 1,695,678 | 2,252,848 | 4,654,560 | 6,171,878 | ||||||||||||
| Selling, general and administrative | 1,578,112 | 1,838,297 | 5,420,872 | 9,455,683 | ||||||||||||
| Total operating expenses | 3,440,421 | 4,221,755 | 10,795,100 | 16,074,927 | ||||||||||||
| (Loss) income from operations | 872,281 | (2,323,711 | ) | (856,448 | ) | (6,817,656 | ) | |||||||||
| Other (expenses) income: | ||||||||||||||||
| Interest income | 38,592 | 21,197 | 105,800 | 71,542 | ||||||||||||
| Interest expense | (971,048 | ) | (358,354 | ) | (2,176,810 | ) | (1,265,775 | ) | ||||||||
| Loss on investment | - | - | (3,912 | ) | - | |||||||||||
| Total other expense | (932,456 | ) | (337,157 | ) | (2,074,922 | ) | (1,194,233 | ) | ||||||||
| Loss from operations before income taxes | (60,175 | ) | (2,660,868 | ) | (2,931,370 | ) | (8,011,889 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (60,175 | ) | $ | (2,660,868 | ) | $ | (2,931,370 | ) | $ | (8,011,889 | ) | ||||
| Basic and diluted net loss per share attributable to common stockholders | $ | (0.00 | ) | $ | (219.38 | ) | $ | (0.28 | ) | $ | (660.56 | ) | ||||
| Basic and diluted weighted average common shares | 13,380,737 | 12,129 | 10,550,277 | 12,129 | ||||||||||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASHFLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
(unaudited)
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,931,370 | ) | $ | (8,011,889 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization expense | 331,728 | 45,682 | ||||||
| Amortization of PIPE convertible notes original issue discount | 47,447 | 183,695 | ||||||
| Amortization of right-of-use asset | 251,612 | 217,101 | ||||||
| Bad debt expense | - | 665,920 | ||||||
| Change in OCI | 1,662 | - | ||||||
| Stock issued for services | - | 4,493,333 | ||||||
| Stock issued for interest | 341,696 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (2,143,225 | ) | (1,057,286 | ) | ||||
| Inventory, net | (205,146 | ) | (1,289,741 | ) | ||||
| Prepaid expenses | 163,101 | (76,690 | ) | |||||
| Other current assets | 2,478,953 | 17,840 | ||||||
| Other assets | - | (2,026,082 | ) | |||||
| Accounts payable | 228,437 | 837,049 | ||||||
| Customer deposits | 2,895,881 | (70,508 | ) | |||||
| Deferred revenue | 575,000 | - | ||||||
| Accrued interest | 1,208,014 | 397,517 | ||||||
| Accrued and other current liabilities | 75,576 | (290,484 | ) | |||||
| Other liabilities | (1,148 | ) | 38,357 | |||||
| Lease liability | (246,437 | ) | (194,953 | ) | ||||
| Net cash provided by (used in) operating activities | 3,071,781 | (6,121,139 | ) | |||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | - | (89,024 | ) | |||||
| Capitalized software development costs | (1,967,418 | ) | - | |||||
| Reduction in long term assets | (115 | ) | (2,419,725 | ) | ||||
| Net cash used in investing activities | (1,967,533 | ) | (2,508,749 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from line of credit | - | 1,945,397 | ||||||
| Proceeds from notes payable | - | 2,499,999 | ||||||
| Repayments of notes payable | (7,005 | ) | (89,337 | ) | ||||
| Repayments of notes payable - related party | (287,000 | ) | (18,500 | ) | ||||
| Proceeds from notes payable - related party | 1,000,000 | - | ||||||
| Payments on assumed liabilities in Merger | (15,716 | ) | - | |||||
| Proceeds from convertible notes | - | 185,500 | ||||||
| PIPE loan, net of OID discount | 4,185,000 | - | ||||||
| Cash acquired in Merger | 103,818 | - | ||||||
| Costs of Merger paid from PIPE loan | (1,947,787 | ) | - | |||||
| Repayment of line of credit | (1,980,937 | ) | - | |||||
| Repayment of notes payable assumed in Merger | (100,000 | ) | - | |||||
| Dividends paid | - | (75,096 | ) | |||||
| Net cash provided by financing activities | 950,373 | 4,447,963 | ||||||
| Net change in cash, cash equivalents, and restricted cash | 2,054,621 | (4,181,925 | ) | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 5,397,564 | 9,656,266 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 7,452,185 | $ | 5,474,341 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for income tax | $ | - | $ | - | ||||
| Cash paid for interest | $ | 548,041 | $ | 868,264 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING and FINANCING ACTIVITIES: | ||||||||
| Notes payable assumed in Merger | $ | 1,565,000 | $ | - | ||||
| Accrued liabilities assumed in Merger | $ | 310,724 | $ | - | ||||
| Remeasurement of common stock exchanged/issued in Merger | $ | (1,875,724 | ) | $ | - | |||
| Right of Use Asset in exchange for lease liability | $ | - | $ | 537,995 | ||||
Contact: Michael Bacal
mbacal@darrowir.com
917-886-9071
