Interactive Strength, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial increase in total revenue, which reached $2,014,000, marking a 558% rise from $306,000 in the same quarter of 2023. This growth was primarily driven by a remarkable 685% increase in fitness product revenue, which totaled $1,617,000 compared to $206,000 in the prior year. Membership revenue also saw a significant boost, rising to $224,000 from $38,000, while training revenue increased to $173,000 from $62,000.
Despite the revenue growth, Interactive Strength reported a net loss of $7,141,000 for the quarter, an improvement from the $10,408,000 loss recorded in Q3 2023. For the nine months ended September 30, 2024, the net loss was $29,172,000, down from $39,971,000 in the same period of the previous year. The company’s total operating expenses decreased to $7,466,000 from $8,952,000 year-over-year, reflecting a 17% reduction.
The company’s total current assets increased significantly to $10,240,000 as of September 30, 2024, up from $5,356,000 at the end of 2023. Total assets also rose to $37,753,000 from $16,802,000, while total current liabilities increased to $26,549,000 from $21,534,000. Notably, stockholders' equity improved to $5,792,000, recovering from a deficit of $(5,552,000) at the end of 2023.
A key strategic development was the acquisition of CLMBR, Inc. on February 2, 2024, for approximately $16.1 million, which included cash, common stock, and the retirement of senior debt. This acquisition is expected to enhance the company’s growth in the connected fitness market. The company also executed a 1-for-40 reverse stock split on June 14, 2024, to improve its stock price and comply with Nasdaq listing requirements.
As of September 30, 2024, Interactive Strength had approximately $14.1 million in total outstanding debt, with $5.2 million related to personal loans from related parties. The company is actively seeking additional capital to fund operations and repay debts, facing potential delisting from Nasdaq if it fails to meet compliance requirements. The company reported an accumulated deficit of $196.6 million as of the same date, raising concerns about its ability to continue as a going concern.
About Interactive Strength, Inc.
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