TruGolf Reports 2024 Financial Results

Salt Lake City, Utah, April 21, 2025 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today an overview of its 2024 results that were filed on Form 10-K on April 15, 2025. The Company reported record sales of $21.9 million, an increase of 6.2% percent as compared to 2023 sales. The gains were driven by continued enthusiastic market adoption of new hardware and software products launched earlier in 2024. Net losses narrowed by 14.5% to ($8.8) million for 2024, versus a net loss of ($10.3) million in 2023. Notably, 42% of the net loss for 2024 was due to non-cash expenses. EPS for the full year was ($0.76), a significant improvement from 2023’s ($857.35) loss per share. Chief Executive Officer and Director Chris Jones said, “We are very pleased with our growing sales momentum for our upgraded and industry-leading golf simulators and software. Cost controls were effective and contributed to our greater cash generation in the second half of the year. We ended the year with $10.9 million in cash, and our debt went down. Interest in our franchise concept remains high and we anticipate announcing contracts for additional franchises in the United States throughout 2025. We now expect the first franchise locations to open by the end of the second quarter, with associated delivery of TruGolf simulators in the first half of 2025.” Mr. Jones continued, “2024 saw the rollout of our new, industry-leading golf simulator products that were eagerly accepted by the market. While 2024’s sales growth was somewhat hindered by select product availability, we expect to continue setting the standard in the world of virtual golf with further hardware and software innovations arriving in 2025.” Operations: Gross margin for 2024 improved to 66.7% as compared to 61.9% in 2023. 2024’s loss from operations was 75% lower at ($2.1) million as compared to ($8.7) million in 2023. 2024 operating expenses declined by 22% or $4.7 million. These improvements were driven by implementing better cost controls, reducing discretionary spending and achieving greater productivity through enhanced operational efficiencies. 2024 SG&A expenses declined by 40%, or $4.4 million, in 2024 as compared to 2023. Non-cash stock compensation expense for the year was $658,000. Cash flow used in operations was $4.0 million in 2024, versus $6.1 million in 2023, an improvement of over 35%. TruGolf ended 2024 with $10.9 million in cash on the balance sheet. As previously disclosed, on October 2, 2024, the Company received a delist determination letter from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) related to its failure to maintain stockholders’ equity for continued listing. The Company has requested a hearing to appeal the delist determination, which has been scheduled for May 15, 2025. 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 timing of new franchise openings during 2025. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC's website, www.sec.gov About TruGolf: Since 1983, TruGolf has been passionate about driving the golf industry with innovative indoor golf solutions. TruGolf builds products that capture the spirit of golf. TruGolf's mission is to help grow the game by attempting to make it more Available, Approachable, and Affordable through technology - because TruGolf believes Golf is for Everyone. TruGolf's team has built award-winning video games ("Links"), innovative hardware solutions, and an all-new e-sports platform to connect golfers around the world with E6 CONNECT. Since TruGolf's beginning, TruGolf has continued to attempt to define and redefine what is possible with golf technology. Contact: Michael Bacal mbacal@darrowir.com 917-886-9071 TRUGOLF HOLDINGS, INCCONSOLIDATED BALANCE SHEETS December 31, December 31, 2024 2023 ASSETS Current Assets: Cash and cash equivalents $10,882,077 $3,297,564 Restricted cash - 2,100,000 Marketable investment securities - 2,478,953 Accounts receivable, net 1,399,153 2,398,872 Inventory, net 2,349,345 2,119,084 Prepaid expenses and other current assets 116,619 262,133 Other current assets 45,737 - Total Current Assets 14,792,930 12,656,606 Property and equipment, net 143,852 234,308 Capitalized software development costs, net 1,540,121 - Right-of-use assets 634,269 972,663 Other long-term assets 31,023 1,905,983 Total Assets $17,142,195 $15,769,560 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities: Accounts payable $2,819,702 $2,059,771 Deferred revenue 3,113,010 1,704,224 Notes payable, current portion 10,001 9,425 Notes payable to related parties, current portion 2,937,000 1,237,000 Line of credit, bank 802,738 802,738 Margin line of credit account - 1,980,937 Convertible notes payable - 954,622 Dividend notes payable 4,023,923 - Derivative liability - - Accrued interest 661,376 459,872 Accrued and other current liabilities 999,307 1,125,495 Accrued and other current liabilities - assumed in Merger 45,008 - Lease liability, current portion 363,102 334,255 Total Current Liabilities 15,775,167 10,668,339 Non-current Liabilities: Notes payable, net of current portion 9,732 2,402,783 Note payables to related parties, net of current portion 624,000 861,000 PIPE loan payable, net 4,068,953 - Dividend notes payable - 4,023,923 Gross sales royalty payable 1,000,000 1,000,000 Lease liability, net of current portion 305,125 668,228 Other liabilities - 63,015 Total Liabilities 21,782,977 19,687,288 Commitments and Contingencies Stockholders’ Deficit: Preferred stock, $0.0001 par value, 10 million shares authorized; zero shares issued and outstanding, respectively - - Common stock, $0.0001 par value, 100,000,000 shares authorized: Common stock - Series A, $0.0001 par value, 90 million shares authorized; 26,120,545 and 13,098 shares issued and outstanding, respectively 2,612 120 Common stock - Series B, $0.0001 par value, 10 million shares authorized; 1,716,860 and 1,716,860 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 18,548,931 10,479,738 Accumulated other comprehensive loss - (1,662)Accumulated deficit (21,155,497) (12,358,924) (4,640,782) (3,917,728) Total Stockholders’ Deficit (4,640,782) (3,917,728) Total Liabilities and Stockholders’ Deficit $17,142,195 $15,769,560 TRUGOLF HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the For the Year Ended Year Ended December 31, 2024 December 31, 2023 Revenue, net $21,858,864 $20,583,851 Cost of revenue 7,271,512 7,825,768 Total gross profit 14,587,352 12,758,083 Operating expenses: Royalties 706,214 709,640 Salaries, wages and benefits 9,314,415 9,681,323 Selling, general and administrative 6,669,684 11,027,332 Total operating expenses 16,690,313 21,418,295 Loss from operations (2,102,962) (8,660,212) Other (expenses) income: Interest income 106,400 108,011 Interest expense (6,932,618) (1,730,908)Gain on fair value adjustment 142,319 - Loss on extinguishment of debt (270,594) - Gain on investment 262,035 - Total other expense (6,692,458) (1,622,897) Loss from operations before provision for income taxes (8,795,420) (10,283,109) Provision for income taxes - - Net loss $(8,795,420) $(10,283,109) Net loss per common share Series A - basic and diluted $(0.76) $(857.35) Weighted average shares outstanding Series A - basic and diluted 11,634,761 11,994 TRUGOLF HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the For the Year Ended Year Ended December 31, 2024 December 31, 2023 Cash flows from operating activities: Net loss $(8,795,420) $(10,283,109)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 607,415 58,641 Amortization of convertible notes original issue discount 728,278 97,111 Amortization of right-of-use asset 338,394 298,208 Change in fair value of derivative liability 142,319 Fair value of warrants in excess of fair value of debt - 93,530 Bad debt expense 767,913 681,479 Change in OCI 1,662 - Stock issued for services 119,959 5,872,529 Stock issued for make good provisions on debt conversion 700,821 - Stock options issued to employees 538,323 - Changes in operating assets and liabilities: Marketable investment securities - 12,530 Accounts receivable, net 231,806 (1,335,714)Inventory, net (230,261) 2,396 Prepaid expenses 145,514 (114,385)Capitalized software, net (2,070,742) - Other current assets (45,737) 17,840 Other assets 13,662 (1,905,983)Accounts payable 494,215 596,434 Deferred revenue 1,408,786 (1,008,296)Accrued interest payable 201,504 615,582 Accrued and other current liabilities (634,557) 374,819 Other liabilities (63,015) 63,015 Lease liability (334,256) (269,848)Net cash used in operating activities (5,733,416) (6,133,221) Cash flows from investing activities: Purchases of property and equipment - (127,413)Purchase of short-term investments - (2,493,145)Sale of short-term investments 2,478,953 - Net cash provided by (used in) investing activities 2,478,953 (2,620,558) Cash flows from financing activities: Proceeds from PIPE loans, net of discount 8,902,681 - Proceeds from loan payable – related party 2,000,000 - Proceeds from investment fund (PIPE) 2,112,560 - Cash acquired in Merger 103,818 - Debt refinance conversion 192,787 - Proceeds from line of credit - 1,980,937 Proceeds from notes payable - 2,433,059 Proceeds from convertible notes - 185,500 Costs of Merger paid from PIPE loan (1,947,787) - Repayments of line of credit (1,980,937) - Repayments of loans assumed in Merger (100,000) - Repayments of notes payable (9,146) (107,569)Repayments of notes payable - related party (535,000) (37,000)Dividends paid - 40,150 Net cash provided by financing activities 8,738,976 4,495,077 Net change in cash , cash equivalents and restricted cash 5,484,513 (4,258,702) Cash, cash equivalents and restricted cash - beginning of year 5,397,564 9,656,266 Cash and cash equivalents - end of year $10,882,077 $5,397,564 Supplemental cash flow information: Cash paid for: Interest $923,975 $1,115,332 Income taxes $- $- Non-cash investing and financing activities: Derivative liability related to warrants $142,319 $- PIPE note principal converted to Class A Common Stock $5,832,600 $- Convertible notes exchanged for PIPE note $2,419,622 $- Class A Common Stock exchanged in Merger $3,854,573 $- Class A Common Stock issued in Merger $1,154 $- Class B Common Stock issued in Merger $172 $- Termination of loan payable $1,875,000 $- Conversion of dividend note payable and accrued interest $- $3,925,273 Conversion of note payable to line of credit $- $257,113 Warehouse lease $- $537,994

TruGolf Reports 2024 Financial Results

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