Interactive Strength Inc. d/b/a FORME Reports
First Quarter 2023 Results
Adjusted
EBITDA was a $4.4 million loss, a $6.3 million improvement versus
first quarter of 2022
Average
Annualized Recurring Revenue per Household at $1,650, more than
three times greater versus first quarter of 2022
New Note
Purchase Agreement to issue up to $15.0 million in senior secured
notes
Austin,
Texas - June 8, 2023 -- InvestorsHub NewsWire - Interactive
Strength Inc. d/b/a FORME (the "Company", or "FORME") (NASDAQ:
TRNR), today announced its financial results
for the first quarter of 2023.
The Company incurred a net
loss of $16.0 million for the first quarter of 2023, or a loss of
$2.09 per diluted share, as compared with a net loss of $12.7
million, or a loss of $43.81 per diluted share for the same period
in 2022, due primarily to expenses incurred in connection with the
Company's IPO.
Adjusted EBITDA, a non-GAAP
financial measure, was a $4.4 million loss for the quarter.
Adjusted EBITDA for the first quarter reflects $14.6 million of
non-cash stock-based compensation. For more information regarding
the non-GAAP financial measures discussed in this press release,
please see "Non-GAAP Financial Measures" and "Reconciliation of
GAAP to Non-GAAP Financial Measures" below.
CEO
Comments
Trent Ward, co-founder and
CEO of FORME, said "We are excited to be presenting our first
quarter results as a public company, and to announce additional
funding on attractive terms that underscore the potential of
FORME's combination of premium smart home gyms and virtual personal
training."
"There was a lower level of
hardware products installed in the quarter as we were managing
working capital closely leading up to the IPO at the end of April.
As a result, we ended the quarter with a backlog of sold but not
yet installed hardware products. We did announce a few key
partnership opportunities recently with Signa Sports United, a
specialist sports e-commerce company with more than 80 online sites
serving over 6 million customers worldwide, and Aethos hotels."
"The average annualized
recurring revenue per household more than tripled to $1,650,
reflecting the impact of our strategy to introduce higher revenue
training services to our premium smart home gyms. We believe this
focus on generating significantly higher recurring revenue per
customer than our peers will be the biggest driver towards our
future profitability."
"Importantly, we were also
able to demonstrate strong control of operating expenses. Although
our total operating expenses on a GAAP basis was $19.6 million in
the first quarter of 2023 as compared to $10.1 million for the same
period in 2022, we reduced non-GAAP total operating expenses, which
excludes depreciation and amortization, stock-based compensation
expense and IPO readiness costs and expenses, for the first quarter
of 2023 to $3.6 million from $9.4 million for the same period in
the prior year, a 62% reduction. We expect to generally maintain
consistent operating expense levels during the rest of 2023 and
plan to continue to manage costs appropriately to allow for the
operational leverage inherent in our technology platform."
"When combined with the
proceeds from the IPO, we believe the proceeds from the senior loan
we signed this week should fund the Company well into 2024 and are
a testament to the exciting business we are building."
Note
Purchase Agreement
On June 6, 2023, the Company
signed a note purchase agreement to issue senior secured notes (the
"Notes") with gross proceeds to the Company of up to $15.0 million.
The lead investor has committed to purchase at least $7.5 million
of the Notes and the Notes have a two-year maturity, at 10.0%
interest per annum, and with a 5.0% original issuance discount,
representing a total cost of debt of 12.5% over the term of the
Notes.
About Interactive Strength Inc.
Interactive Strength Inc. (NASDAQ: TRNR) d/b/a
Forme is a digital fitness platform that combines premium connected
fitness hardware products with personal training and coaching (from
real humans) to deliver an immersive experience and better outcomes
for both consumers and trainers. We believe we are the pioneer
brand in the emerging sector of virtual personal training and
health coaching and that our products and services are accelerating
a powerful shift towards outcome-driven fitness
solutions. The company is headquarters in
Austin, Texas, USA. Visit
formelife.com
for
more information, and connect with Forme on Facebook,
and Instagram.
Channels for Disclosure of
Information
In compliance
with disclosure obligations under Regulation FD, we announce
material information to the public through a variety of means,
including filings with the Securities and Exchange Commission
("SEC"), press releases, company blog posts, public conference
calls, and webcasts, as well as via our investor relations website.
Any updates to the list of disclosure channels through which we may
announce information will be posted on the investor relations page
on our website. The inclusion of our website address or the address
of any third-party sites in this press release are intended as
inactive textual references only.
Non-GAAP Financial
Measures
In addition to
our results determined in accordance with accounting principles
generally accepted in the United States, or GAAP, we believe the
following non-GAAP financial measures are useful in evaluating our
operating performance.
The Company's
non-GAAP financial measure in this press release consist of
Adjusted EBITDA, which we define as net (loss) income, adjusted to
exclude: other expense (income), net; income tax expense (benefit);
depreciation and amortization expense; stock-based compensation
expense; vendor settlements; and IPO readiness costs and
expenses.
The Company
believes the above adjusted financial measures help facilitate
analysis of operating performance and the operating leverage in our
business. We believe that these non-GAAP financial measures are
useful to investors for period-to-period comparisons of our
business and in understanding and evaluating our operating results
for the following reasons:
-
Adjusted EBITDA is widely used by
investors and securities analysts to measure a company's operating
performance without regard to items such as stock-based
compensation expense, depreciation and amortization expense, other
expense (income), net, and provision for income taxes that can vary
substantially from company to company depending upon their
financing, capital structures, and the method by which assets were
acquired;
-
Our management uses Adjusted
EBITDA in conjunction with financial measures prepared in
accordance with GAAP for planning purposes, including the
preparation of our annual operating budget, as a measure of our
core operating results and the effectiveness of our business
strategy, and in evaluating our financial performance;
and
-
Adjusted EBITDA provides
consistency and comparability with our past financial performance,
facilitate period-to-period comparisons of our core operating
results, and may also facilitate comparisons with other peer
companies, many of which use similar non-GAAP financial measures to
supplement their GAAP results.
Our use of
Adjusted EBITDA, or any other non-GAAP financial measures we may
use in the future, is presented for supplemental informational
purposes only and should not be considered as a substitute for, or
in isolation from, our financial results presented in accordance
with GAAP. Further, these non-GAAP financial measures have
limitations as analytical tools. Some of these limitations are, or
may in the future be, as follows:
-
Although depreciation and
amortization expense are non-cash charges, the assets being
depreciated and amortized may have to be replaced in the future,
and Adjusted EBITDA does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements;
-
Adjusted EBITDA excludes
stock-based compensation expense, which has recently been, and will
continue to be for the foreseeable future, a significant recurring
expense for our business and an important part of our compensation
strategy;
-
Adjusted EBITDA does not reflect:
(1) changes in, or cash requirements for, our working capital
needs; (2) interest expense, or the cash requirements necessary to
service interest or principal payments on our debt, which reduces
cash available to us; or (3) tax payments that may represent a
reduction in cash available to us;
-
Adjusted EBITDA does not reflect
impairment charges for fixed assets, and gains (losses) on
disposals for fixed assets;
-
Adjusted EBITDA does not reflect
gains associated with vendor settlements.
-
Adjusted EBITDA does not reflect
IPO readiness costs and expenses that do not qualify as equity
issuance costs.
-
Adjusted EBITDA does not reflect
non cash fair value gains (losses) on convertible notes, warrants
and unrealized currency gains (losses).
Further, the non-GAAP
financial measures presented may not be comparable to similarly
titled measures reported by other companies due to differences in
the way that these measures are calculated. For example, the
expenses and other items that we exclude in our calculation of
Adjusted EBITDA may differ from the expenses and other items, if
any, that other companies may exclude from Adjusted EBITDA when
they report their operating results. Because companies in our
industry may calculate such measures differently than we do, their
usefulness as comparative measures is limited. Because of these
limitations, Adjusted EBITDA should be considered along with other
operating and financial performance measures presented in
accordance with GAAP.
Cautionary Statement Regarding Forward-Looking
Statements
This
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact are, or may be
deemed to be, forward-looking statements. In some cases,
forward-looking statements can be identified by the use of
forward-looking terms such as "anticipate," "estimate," "believe,"
"continue," "could," "intend," "may," "plan," "potential,"
"predict," "should," "will," "expect," "objective," "projection,"
"forecast," "goal," "guidance," "outlook," "effort," "target,"
"trajectory" or the negative of these terms or other comparable
terms. However, the absence of these words does not mean that the
statements are not forward-looking. Forward-looking
statements include, but are not limited to, statements regarding:
(i) our expectations as to our operating expense levels during the
rest of 2023 and our plan to continue to manage costs appropriately
to allow for the operational leverage inherent in our technology
platform; (ii) our belief as to the sufficiency of our cash
position, including from the proceeds the senior loan we signed
this week, to help fund the Company into 2024; (iii) the utility of
non-GAAP financial measures; (iv) our ability access proceeds from
the senior loan; (v) our belief that our focus on generating
significantly higher recurring revenue per customer than our peers
will be the biggest driver towards our future profitability; and
(vi) the anticipated features and benefits of our product and
service offerings. These forward-looking statements are
subject to risks and uncertainties which may cause actual results
to differ materially from those expressed or implied in such
forward-looking statements. These risk and uncertainties
include, but are not limited to, the following: our ability to
achieve or maintain profitability; the growth rate, if any, of our
business and revenue and our ability to manage any such growth;
risks related to our subscription or any future revenue model; our
limited operating history; our ability to continue as a "going
concern"; our ability to compete successfully; fluctuations in our
operating results and factors affecting the same; our reliance on
sales of our Forme Studio equipment; our ability to sustain
competitive pricing levels; the growth rate, if any, of our target
markets and our industry; the ability of our customers to obtain
financing to purchase our products; our ability to forecast demand
for our products and services, anticipate consumer preferences, and
manage our inventory; our ability to attract and retain members,
personal trainers, health coaches, and fitness instructors; our
ability to expand our commercial and corporate wellness business;
unforeseen costs and potential liability in connection with our
products and services; our dependence on third-party systems and
services; our future capital needs and ability to obtain additional
financing to fund our operations; and risks related to intellectual
property, litigation, potential acquisitions, dependence on key
personnel, privacy, cybersecurity, and other regulatory, tax, and
accounting matters, and international operations, as well as the
risks and uncertainties discussed in our most recently filed
periodic reports on Form 10-Q and Form 10-K and subsequent filings
and as detailed from time to time in our SEC filings. Given these
risks and uncertainties, you should not place undue reliance on
these forward-looking statements. All forward-looking statements
set forth in this release are qualified by these cautionary
statements, and there can be no assurance that the actual results
or developments anticipated by the Company will be realized or,
even if substantially realized, that they will have the expected
consequence to or effects on the Company or its business or
operations. These forward-looking statements reflect our
management's beliefs and views with respect to future events and
are based on estimates and assumptions as of the date of this press
release. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee that
the future results, levels of activity, performance, or events and
circumstances reflected in the forward-looking statements will be
achieved or occur. Moreover, neither we nor any other person
assumes responsibility for the accuracy and completeness of the
forward-looking statements. Accordingly, you should not rely upon
forward-looking statements as predictions of future events.
Forward-looking statements set forth in this release speak only as
of the date hereof, and we do not undertake any obligation to
update forward-looking statements to reflect subsequent events or
circumstances, changes in expectations or the occurrence of
unanticipated events, except to the extent required by law.
TRNR
Investor Contact
ir@formelife.com
INTERACTIVE STRENGTH INC. AND
SUBSIDIARIES
KEY PERFORMANCE AND BUSINESS
METRICS
(unaudited)
(In thousands)
|
|
Three Months Ended March 31,
|
|
|
|
2023
|
|
|
2022
|
|
Total Households (at end of period)
|
|
|
204
|
|
|
|
115
|
|
Total Members (at end of period)
|
|
235
|
|
|
115
|
|
Annual Recurring Revenue
|
|
$
|
364,800
|
|
|
$
|
58,919
|
|
Average Annualized Recurring Revenue per Household
|
|
$
|
1,650
|
|
|
$
|
490
|
|
Net Dollar Retention Rate
|
|
|
176
|
%
|
|
NM
|
|
Net Loss (in thousands)
|
|
$
|
(15,961
|
)
|
|
$
|
(12,691
|
)
|
Adjusted
EBITDA (in thousands) (1)
|
|
$
|
(4,427
|
)
|
|
$
|
(10,770
|
)
|
NM - Not meaningful.
(1) Please refer to the
reconciliation table titled "Reconciliation of Non-GAAP Financial
Measures"
Households
We believe our
ability to expand the number of households is an indicator of our
market penetration and growth. Total households are defined as
individuals or entities with an active paid membership and
training.
Members
Our total member
count is a key indicator of the size of our future revenue
opportunity. We define a member as someone who has a unique profile
on our platform, either as the primary membership owner or an
associated user within the household.
ARR
Given the recurring nature of usage on our
platform, we view annual recurring revenue as an important
indicator of our progress towards growth targets and of the overall
health of the member base. We calculate ARR at a point in time by
multiplying the latest monthly period's revenue by 12.
ARPH
We
believe that our average recurring revenue per household, which we
refer to as ARPH, is a strong indication of our ability to deliver
value to our members and we use this metric to track expanding
usage on our platform by our existing members. We calculate ARPH on
a monthly basis as our total revenue in that period divided by the
number of households determined as of the last day of that period.
For a quarterly or annual period, ARPH is determined as the
weighted average monthly ARPH over such three or 12-month
period.
Net Dollar
Retention Rate
Our ability to
maintain long-term revenue growth and achieve profitability is
dependent on our ability to retain and grow revenue from our
existing members. To help us measure our performance in this area,
we monitor our net dollar retention rate. We calculate net dollar
retention rate monthly by starting with the revenue from the cohort
of all members during the corresponding month 12 months prior, or
the Prior Period Revenue. We then calculate the revenue from these
same members as of the current month, or the Current Period
Revenue, including any expansion and net of any contraction or
attrition from these members over the last 12 months. The
calculation also includes revenue from members that generated
revenue before, but not in, the corresponding month 12 months
prior, but subsequently generated revenue in the current month and
are therefore reflected in the Current Period Revenue. We include
this group of re-engaged members in this calculation because our
members may use our platform for workouts that stop and start over
time. We then divide the total Current Period Revenue by the total
Prior Period Revenue to arrive at the net dollar retention rate for
the relevant month. For a quarterly or annual period, the net
dollar retention rate is determined as the average monthly net
dollar retention rates over such three or 12-month
period.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
INTERACTIVE STRENGTH INC. AND
SUBSIDIARIES
CONSOLIDATED RECONCILIATION OF
ADJUSTED EBITDA TO NET LOSS
(unaudited)
(In thousands)
|
|
Three Months Ended March 31,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
(in thousands)
|
Net Loss
|
|
$
|
(15,961
|
)
|
|
$
|
(12,691
|
)
|
|
Adjusted to exclude the following:
|
|
|
|
|
|
|
|
Total other expense (income), net
|
|
|
(2,655
|
)
|
|
|
395
|
|
|
Income tax benefit (expense)
|
|
|
—
|
|
|
|
—
|
|
|
Depreciation and amortization expense
|
|
|
1,600
|
|
|
|
1,438
|
|
|
Stock-based compensation expense (1)
|
|
|
14,639
|
|
|
|
88
|
|
|
Vendor settlements (2)
|
|
|
(2,595
|
)
|
|
|
—
|
|
|
IPO readiness costs and expenses (3)
|
|
|
545
|
|
|
|
—
|
|
|
Adjusted
EBITDA (4)
|
|
$
|
(4,427
|
)
|
|
$
|
(10,770
|
)
|
|
(1) Stock based
compensation
(2) Gain on
forgiveness of debt of $2.6 million related to the third-party
Content Provider.
(3) Adjusts for IPO
readiness costs and expenses that do not qualify as equity issuance
costs.
(4) Please refer to the "Non-GAAP
Financial Measures" section of the press release.
INTERACTIVE STRENGTH INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(In thousands, except share
and per share amounts)
|
|
Three Months Ended March 31,
|
|
|
|
2023
|
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
Fitness product revenue
|
|
$
|
72
|
|
|
$
|
177
|
|
Membership revenue
|
|
|
24
|
|
|
|
12
|
|
Training revenue
|
|
|
61
|
|
|
|
—
|
|
Total revenue
|
|
|
157
|
|
|
|
189
|
|
Cost of revenue:
|
|
|
|
|
|
|
Cost of fitness product revenue
|
|
|
(743
|
)
|
|
|
(554
|
)
|
Cost of membership
|
|
|
(962
|
)
|
|
|
(1,489
|
)
|
Cost of training
|
|
|
(103
|
)
|
|
|
(304
|
)
|
Total cost of revenue
|
|
|
(1,808
|
)
|
|
|
(2,347
|
)
|
Gross loss
|
|
|
(1,651
|
)
|
|
|
(2,158
|
)
|
Operating expenses:
|
|
|
|
|
|
|
Research and development
|
|
|
3,113
|
|
|
|
4,967
|
|
Sales and marketing
|
|
|
600
|
|
|
|
2,009
|
|
General and administrative
|
|
|
15,847
|
|
|
|
3,162
|
|
Total operating expenses
|
|
|
19,560
|
|
|
|
10,138
|
|
Loss from operations
|
|
|
(21,211
|
)
|
|
|
(12,296
|
)
|
Other income (expense), net:
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
117
|
|
|
|
15
|
|
Interest income (expense)
|
|
|
208
|
|
|
|
(386
|
)
|
Gain upon debt forgiveness
|
|
|
2,595
|
|
|
|
—
|
|
Change in fair value of convertible notes
|
|
|
(80
|
)
|
|
|
(24
|
)
|
Change in fair value of warrants
|
|
|
2,410
|
|
|
|
—
|
|
Total other income (expense), net
|
|
|
5,250
|
|
|
|
(395
|
)
|
Loss before provision for income taxes
|
|
|
(15,961
|
)
|
|
|
(12,691
|
)
|
Income tax expense
|
|
|
—
|
|
|
|
—
|
|
Net loss attributable to common stockholders
|
|
$
|
(15,961
|
)
|
|
$
|
(12,691
|
)
|
Net loss per share - basic and diluted
|
|
$
|
(2.09
|
)
|
|
$
|
(43.81
|
)
|
Weighted
average common stock outstanding—basic and diluted
|
|
|
7,653,940
|
|
|
|
289,713
|
|
INTERACTIVE STRENGTH INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited)
(In thousands, except share
and per share amounts)
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,050
|
|
|
$
|
226
|
|
Accounts receivable, net of allowances
|
|
|
11
|
|
|
|
—
|
|
Inventories, net
|
|
|
1,884
|
|
|
|
4,567
|
|
Vendor deposits
|
|
|
3,487
|
|
|
|
3,603
|
|
Prepaid expenses and other current assets
|
|
|
1,276
|
|
|
|
1,426
|
|
Total current assets
|
|
|
7,708
|
|
|
|
9,822
|
|
Property and equipment, net
|
|
|
1,050
|
|
|
|
1,326
|
|
Right-of-use-assets
|
|
|
22
|
|
|
|
110
|
|
Intangible assets, net
|
|
|
3,348
|
|
|
|
3,834
|
|
Long-term inventories
|
|
|
2,702
|
|
|
|
—
|
|
Deferred offering costs
|
|
|
3,935
|
|
|
|
2,337
|
|
Other assets
|
|
|
6,996
|
|
|
|
7,018
|
|
Total Assets
|
|
$
|
25,761
|
|
|
$
|
24,447
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
8,311
|
|
|
$
|
7,743
|
|
Accrued expenses and other current liabilities
|
|
|
3,515
|
|
|
|
5,304
|
|
Operating lease liability, current portion
|
|
|
23
|
|
|
|
106
|
|
Deferred revenue
|
|
|
35
|
|
|
|
29
|
|
Loan payable
|
|
|
5,889
|
|
|
|
6,708
|
|
Senior secured notes
|
|
|
2,000
|
|
|
|
—
|
|
Income tax payable
|
|
|
7
|
|
|
|
7
|
|
Convertible note payable
|
|
|
4,350
|
|
|
|
4,270
|
|
Total current liabilities
|
|
|
24,130
|
|
|
|
24,167
|
|
Operating lease liability, net of current portion
|
|
|
—
|
|
|
|
9
|
|
Warrant liabilities
|
|
|
594
|
|
|
|
3,004
|
|
Total liabilities
|
|
$
|
24,724
|
|
|
$
|
27,180
|
|
Commitments and contingencies (Note 13)
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Common stock, par value $0.0001; 50,000,000 and 369,950,000 shares
authorized as of March 31, 2023 and December 31, 2022,
respectively; 11,774,279 and 2,450,922 shares issued and
outstanding as of March 31, 2023 and December 31, 2022,
respectively.
|
|
|
7
|
|
|
|
4
|
|
Additional paid-in capital
|
|
|
132,279
|
|
|
|
112,436
|
|
Accumulated other comprehensive income
|
|
|
250
|
|
|
|
365
|
|
Accumulated deficit
|
|
|
(131,499
|
)
|
|
|
(115,538
|
)
|
Total stockholders' equity (deficit)
|
|
|
1,037
|
|
|
|
(2,733
|
)
|
Total liabilities and stockholders' equity
(deficit)
|
|
$
|
25,761
|
|
|
$
|
24,447
|
|
INTERACTIVE STRENGTH INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
(unaudited)
(In thousands)
|
|
Three Months Ended March 31,
|
|
|
|
2023
|
|
|
2022
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(15,961
|
)
|
|
$
|
(12,691
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Foreign currency
|
|
|
106
|
|
|
|
82
|
|
Depreciation
|
|
|
276
|
|
|
|
370
|
|
Amortization
|
|
|
1,323
|
|
|
|
1,068
|
|
Amortization of operating lease assets
|
|
|
27
|
|
|
|
—
|
|
Inventory valuation loss
|
|
|
73
|
|
|
|
121
|
|
Stock-based compensation
|
|
|
14,639
|
|
|
|
97
|
|
Gain upon debt forgiveness
|
|
|
(2,595
|
)
|
|
|
—
|
|
Interest (income) expense
|
|
|
(208
|
)
|
|
|
389
|
|
Change in fair value of convertible notes
|
|
|
80
|
|
|
|
24
|
|
Change in fair value of warrants
|
|
|
(2,410
|
)
|
|
|
—
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(11
|
)
|
|
|
—
|
|
Inventories
|
|
|
(21
|
)
|
|
|
(1,005
|
)
|
Prepaid expenses and other current assets
|
|
|
150
|
|
|
|
(182
|
)
|
Vendor deposits
|
|
|
116
|
|
|
|
(141
|
)
|
Other assets
|
|
|
19
|
|
|
|
(1
|
)
|
Accounts payable
|
|
|
257
|
|
|
|
1,475
|
|
Accrued expenses and other current liabilities
|
|
|
(572
|
)
|
|
|
(371
|
)
|
Deferred revenue
|
|
|
6
|
|
|
|
4
|
|
Operating lease liabilities
|
|
|
(32
|
)
|
|
|
—
|
|
Net cash used in operating activities
|
|
|
(4,738
|
)
|
|
|
(10,761
|
)
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
—
|
|
|
|
(227
|
)
|
Acquisition of internal use software
|
|
|
—
|
|
|
|
(1,647
|
)
|
Acquisition of software and content
|
|
|
(416
|
)
|
|
|
(808
|
)
|
Net cash used in investing activities
|
|
|
(416
|
)
|
|
|
(2,682
|
)
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
|
Payments of loans
|
|
|
(96
|
)
|
|
|
(449
|
)
|
Proceeds from senior secured notes
|
|
|
2,000
|
|
|
|
—
|
|
Proceeds from issuance of Preferred Stock - Series A, net of
issuance costs
|
|
|
—
|
|
|
|
26,928
|
|
Proceeds from issuance of convertible notes
|
|
|
—
|
|
|
|
5,902
|
|
Proceeds from the issuance of common stock A
|
|
|
4,247
|
|
|
|
2,063
|
|
Proceeds from the exercise of common stock options
|
|
|
30
|
|
|
|
25
|
|
Repayment Bounce Back Loan
|
|
|
—
|
|
|
|
(73
|
)
|
Net cash provided by financing activities
|
|
|
6,181
|
|
|
|
34,396
|
|
Effect of exchange rate on cash
|
|
|
(203
|
)
|
|
|
18
|
|
Net Change In Cash and Cash
Equivalents
|
|
|
824
|
|
|
|
20,971
|
|
Cash and restricted cash at beginning of year
|
|
|
226
|
|
|
|
1,697
|
|
Cash and restricted cash at end of year
|
|
$
|
1,050
|
|
|
$
|
22,668
|
|
|
|
|
|
|
|
|
Supplemental Disclosure Of Cash Flow
Information:
|
|
|
|
|
|
|
Property & equipment in AP
|
|
|
18
|
|
|
|
80
|
|
Inventories in AP and accrued
|
|
|
1,078
|
|
|
|
130
|
|
Capitalized software and content in AP
|
|
|
18
|
|
|
|
17
|
|
Issuance of Series A preferred stock in connection with convertible
notes payable
|
|
|
—
|
|
|
|
5,926
|
|
Deferred offering costs
|
|
|
1,598
|
|
|
|
—
|
|
Decrease in right-of-use asset and operating lease
liabilities due to lease termination
|
|
|
61
|
|
|
|
—
|
|
Issuance of Common Stock from Rights Offering
|
|
|
202
|
|
|
|
—
|
|
Net
exercise of options
|
|
|
313
|
|
|
|
—
|
|