TruGolf Announces 82% YOY Third Quarter Sales Growth

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

By GlobeNewswire – Press Releases

Source: GlobeNewswire – Press Releases