Salt Lake City, Utah, May 15, 2025 (GLOBE NEWSWIRE) — TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today its first quarter 2025 results. The Company reported sales of $5.4 million, up 7.5% compared to 2024 first quarter sales of $5.0 million. Net losses doubled to ($2.6) million for 2025’s first quarter, versus a net loss of ($1.3) million in the 2024 period, driven largely by recognition of interest expenses associated with the conversion of convertible notes in the period. EPS for 2025’s first quarter was ($0.09), an improvement from 2024’s ($0.22) loss per share.
Chief Executive Officer and Director Chris Jones said, “2025 got off to a solid start and we expect the sales cadence to improve over the course of the year, driven by new product introductions. Management’s attention has also focused on addressing the previously reported Nasdaq listing deficiencies. The Company has announced a plan that will significantly reduce debt on its balance sheet and increase shareholder equity. This plan has been presented at a Nasdaq Listing Qualifications hearing on May 15th and we expect to receive their determination in the near term.”
Mr. Jones continued, “We look forward to further growth in the business as we continue to innovate in creating the best virtual golf ecosystem in the market. We expect the first franchise locations to open over the next 90 days, with the associated delivery of TruGolf hardware and software solutions. We are optimistic that new products expected to launch in the coming months will be well received.”
Operations:
Gross margin for 2025’s first quarter improved to 68.0% as compared to 61.0% in 2024’s quarter. 2025’s loss from operations was 30.7% higher at ($1.2) million as compared to ($0.9) million in 2024. 2025 operating expenses increased by 22.5% or $0.9 million, driven by higher SG&A costs arising from higher third-party installation expenses, increased marketing costs and higher professional fees.
Interest expense jumped by $1.1 million as $1.7 million in principal amount of convertible notes and their$1.1 million associated accrued and make-whole interest converted to shares and their full interest costs were recognized in the conversion period. Cash flow used in operations was approximately $0.5 million in the first quarter of 2025, versus generation of $2.7 million in 2024’s quarter, with the difference resulting from a growth in inventory in the 2025 period, as well as the greater net loss for the period.
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, http://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.
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,515,820 | $ | 8,782,077 | ||||
| Restricted cash | 2,100,000 | 2,100,000 | ||||||
| Accounts receivable, net | 1,579,614 | 1,399,153 | ||||||
| Inventory, net | 3,852,977 | 2,349,345 | ||||||
| Prepaid expenses and other current assets | 189,961 | 116,619 | ||||||
| Other current assets | – | 45,737 | ||||||
| Total Current Assets | 18,238,372 | 14,792,931 | ||||||
| Property and equipment, net | 192,711 | 143,852 | ||||||
| Capitalized software development costs, net | 1,710,652 | 1,540,121 | ||||||
| Right-of-use assets | 545,915 | 634,269 | ||||||
| Other long-term assets | 31,023 | 31,023 | ||||||
| Total Assets | $ | 20,718,673 | $ | 17,142,196 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,563,454 | $ | 2,819,703 | ||||
| Deferred revenue | 4,141,790 | 3,113,010 | ||||||
| Notes payable, current portion | 10,148 | 10,001 | ||||||
| Notes payable to related parties, current portion | 2,937,000 | 2,937,000 | ||||||
| Line of credit, bank | 802,738 | 802,738 | ||||||
| Dividend notes payable | 4,023,923 | 4,023,923 | ||||||
| Accrued interest | 565,402 | 661,376 | ||||||
| Accrued and other current liabilities | 2,823,067 | 999,307 | ||||||
| Accrued and other current liabilities – assumed in Merger | 45,008 | 45,008 | ||||||
| Lease liability, current portion | 296,291 | 363,102 | ||||||
| Total Current Liabilities | 18,208,821 | 15,775,168 | ||||||
| Non-current Liabilities: | ||||||||
| Notes payable, net of current portion | 7,137 | 9,732 | ||||||
| Note payables to related parties, net of current portion | 624,000 | 624,000 | ||||||
| PIPE loan payable, net | 5,165,893 | 4,068,953 | ||||||
| Gross sales royalty payable | 1,000,000 | 1,000,000 | ||||||
| Lease liability, net of current portion | 278,071 | 305,125 | ||||||
| Total Liabilities | 25,283,922 | 21,782,978 | ||||||
| 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; 29,184,965 and 26,120,545 shares issued and outstanding, respectively | 2,918 | 2,612 | ||||||
| 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 | 172 | ||||||
| Treasury stock at cost, 4,692 shares of common stock held, respectively | (2,037,000 | ) | (2,037,000 | ) | ||||
| Additional paid-in capital | 21,294,479 | 18,548,931 | ||||||
| Accumulated deficit | (23,825,818 | ) | (21,155,496 | ) | ||||
| Total Stockholders’ Deficit | (4,565,249 | ) | (4,640,781 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 20,718,673 | $ | 17,142,196 | ||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the | For the | |||||||
| Three Months Ended | Three Months Ended | |||||||
| March 31, 2025 | March 31, 2024 | |||||||
| Revenue, net | $ | 5,389,230 | $ | 5,012,022 | ||||
| Cost of revenue | 1,726,199 | 1,959,023 | ||||||
| Total gross profit | 3,663,031 | 3,052,999 | ||||||
| Operating expenses: | ||||||||
| Royalties | 225,320 | 329,888 | ||||||
| Salaries, wages and benefits | 1,946,816 | 1,841,595 | ||||||
| Selling, general and administrative | 2,725,119 | 1,825,201 | ||||||
| Total operating expenses | 4,897,255 | 3,996,684 | ||||||
| Loss from operations | (1,234,224 | ) | (943,685 | ) | ||||
| Other (expenses) income: | ||||||||
| Interest income | 54,596 | 30,587 | ||||||
| Interest expense | (1,490,694 | ) | (384,854 | ) | ||||
| Loss on investment | – | (3,912 | ) | |||||
| Total other expense | (1,436,098 | ) | (358,179 | ) | ||||
| Loss from operations before provision for income taxes | (2,670,322 | ) | (1,301,864 | ) | ||||
| Provision for income taxes | – | – | ||||||
| Net loss | $ | (2,670,322 | ) | $ | (1,301,864 | ) | ||
| Net loss per common share Series A – basic and diluted | $ | (0.09 | ) | $ | (0.22 | ) | ||
| Net loss per common share Series B – basic and diluted | $ | (1.56 | ) | $ | (1.14 | ) | ||
| Weighted average shares outstanding Series A – basic and diluted | 28,461,277 | 5,994,704 | ||||||
| Weighted average shares outstanding Series B – basic and diluted | 1,716,860 | 1,144,573 | ||||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the | For the | |||||||
| Three Months Ended | Three Months Ended | |||||||
| March 31, 2025 | March 31, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,670,322 | ) | $ | (1,301,864 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 115,300 | 36,105 | ||||||
| Amortization of convertible notes discount | 231,940 | 947 | ||||||
| Amortization of right-of-use asset | 88,354 | 82,454 | ||||||
| Change in OCI | – | 1,662 | ||||||
| Stock issued for make good provisions on debt conversion | 1,087,513 | – | ||||||
| Stock options issued to employees | 3,341 | – | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (180,461 | ) | 468,422 | |||||
| Inventory, net | (1,503,632 | ) | (216,569 | ) | ||||
| Prepaid expenses | (73,342 | ) | 200,278 | |||||
| Other current assets | 45,737 | 2,478,953 | ||||||
| Accounts payable | (256,248 | ) | 1,146,347 | |||||
| Deferred revenue | 1,028,780 | 90,524 | ||||||
| Accrued interest payable | (95,974 | ) | 82,759 | |||||
| Accrued and other current liabilities | 1,823,760 | (321,090 | ) | |||||
| Lease liability | (93,865 | ) | (80,311 | ) | ||||
| Net cash provided by (used in) operating activities | (449,119 | ) | 2,668,617 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (64,159 | ) | (332,342 | ) | ||||
| Capitalized software, net | (270,531 | ) | – | |||||
| Net cash used in investing activities | (334,690 | ) | (332,342 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from PIPE loans, net of discount | 2,520,000 | 4,320,000 | ||||||
| Cash acquired in Merger | – | 103,818 | ||||||
| Increase in other liabilities | – | 18,545 | ||||||
| Costs of Merger paid from PIPE loan | – | (2,082,787 | ) | |||||
| Repayments of line of credit | – | (1,980,937 | ) | |||||
| Repayments of liabilities assumed in Merger | – | (15,716 | ) | |||||
| Repayments of notes payable | (2,448 | ) | (2,295 | ) | ||||
| Repayments of notes payable – related party | – | (268,500 | ) | |||||
| Net cash provided by financing activities | 2,517,552 | 92,128 | ||||||
| Net change in cash , cash equivalents and restricted cash | 1,733,743 | 2,428,403 | ||||||
| Cash, cash equivalents and restricted cash – beginning of year | 10,882,077 | 5,397,564 | ||||||
| Cash, cash equivalents and restricted cash – end of year | $ | 12,615,820 | $ | 7,825,967 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | 108,993 | $ | 302,095 | ||||
| Income taxes | $ | – | $ | – | ||||
| Non-cash investing and financing activities: | ||||||||
| PIPE note principal converted to Class A Common Stock | $ | 1,655,000 | $ | – | ||||
| 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 | ) | |||
