Interactive Strength Inc. (Nasdaq: TRNR) Wins Appeal for Continued Nasdaq Listing

Rhea-AI Summary

Interactive Strength Inc. (Nasdaq: TRNR), maker of CLMBR and FORME fitness equipment, has successfully appealed to maintain its Nasdaq listing. The company, which was not in compliance with the $2.5 million minimum stockholders' equity requirement as of March 31, 2024, has been granted an exception until November 14, 2024 to demonstrate compliance.

CEO Trent Ward expressed confidence in achieving compliance, stating that TRNR would have met the requirement for the quarter ending June 30th on a pro forma basis, including their equity offering that closed on July 2nd. This appeal win provides TRNR with additional time to meet Nasdaq's listing requirements and maintain its position on the stock market.

Positive

• Successful appeal to maintain Nasdaq listing
• Extension granted until November 14, 2024 to comply with equity rule
• Pro forma compliance with equity rule for Q2 2024, including July 2nd equity offering

Negative

• Non-compliance with $2.5 million minimum stockholders' equity requirement as of March 31, 2024
• Risk of delisting if compliance is not achieved by November 14, 2024

AUSTIN, TX / ACCESSWIRE / August 12, 2024 / Interactive Strength Inc. (Nasdaq:TRNR) ("TRNR" or "the Company"), maker of innovative specialty fitness equipment under the CLMBR and FORME brands, today announced that the Company received a letter stating that the Nasdaq Hearings Panel has granted the Company's request for continued listing on the Nasdaq Stock Market.

As of March 31, 2024, the Company was not in compliance with Listing Rule 5550(b)(1) (the "Equity Rule") which specifies a minimum stockholders' equity of $2.5 million. The Company received a delisting letter from Nasdaq on May 22, 2024, that outlined various options. The Company appealed the delisting and participated in a hearing on this matter on July 16, 2024. As a result of this hearing, the Panel has determined to grant the Company an exception until November 14, 2024 to demonstrate compliance with the Equity Rule.

Trent Ward, Co-Founder and CEO of TRNR, said: "We are pleased that the Hearings Panel agreed with our potential to regain compliance with the Equity Rule when we report our third quarter earnings in November and we look forward to achieving that target. As a starting point and an indication of our confidence in achieving compliance, we are proud to share that we would have been in compliance with the Equity Rule for the quarter that ended on June 30^th on a pro forma basis, when including our equity offering that closed on July 2^nd."

TRNR Investor Contact
ir@interactivestrength.com

TRNR Media Contact
forme@jacktaylorpr.com

About Interactive Strength Inc.:

Interactive Strength Inc. produces innovative specialty fitness equipment and digital fitness services under two main brands: 1) CLMBR and 2) FORME. Interactive Strength Inc. is listed on NASDAQ (symbol: TRNR).

CLMBR is a vertical climbing machine that offers an efficient and effective full-body strength and cardio workout. CLMBR's design is compact and easy to move - making it perfect for commercial or in-home use. With its low impact and ergonomic movement, CLMBR is safe for most ages and levels of ability and can be found at gyms and fitness studios, hotels, and physical therapy facilities, as well as available for consumers at home. www.clmbr.com.

FORME is a digital fitness platform that combines premium smart gyms with live virtual personal training and coaching to deliver an immersive experience and better outcomes for both consumers and trainers. FORME delivers an immersive and dynamic fitness experience through two connected hardware products: 1) The FORME Studio Lift (fitness mirror and cable-based digital resistance) and 2) The FORME Studio (fitness mirror). In addition to the company's connected fitness hardware products, FORME offers expert personal training and health coaching in different formats and price points through Video On-Demand, Custom Training, and Live 1:1 virtual personal training. www.formelife.com.

Forward Looking Statements:

This press release includes certain statements that are "forward-looking statements" for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and reflect management's assumptions, views, plans, objectives and projections about the future. Forward-looking statements generally are accompanied by words such as "believe", "project", "expect", "anticipate", "estimate", "intend", "strategy", "future", "opportunity", "plan", "may", "should", "will", "would", "will be", "will continue", "will likely result" or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the possibility of maintaining compliance with Nasdaq Listing Rules in the future, as well as the Company being able to report Stockholders' Equity in excess of the required levels. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Risks and uncertainties include but are not limited to: demand for our products; competition, including technological advances made by and new products released by our competitors; our ability to accurately forecast consumer demand for our products and adequately maintain our inventory; and our reliance on a limited number of suppliers and distributors for our products. A further list and descriptions of these risks, uncertainties and other factors can be found in filings with the Securities and Exchange Commission. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements.

SOURCE: Interactive Strength Inc.

View the original press release on accesswire.com

FAQ

What was the outcome of TRNR's Nasdaq listing appeal?

Interactive Strength Inc. (TRNR) won its appeal and was granted an exception until November 14, 2024, to demonstrate compliance with Nasdaq's minimum stockholders' equity requirement of $2.5 million.

Why was TRNR at risk of being delisted from Nasdaq?

TRNR was not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders' equity of $2.5 million, as of March 31, 2024.

When did TRNR receive the delisting letter from Nasdaq?

TRNR received a delisting letter from Nasdaq on May 22, 2024, outlining various options for the company.

What is the deadline for TRNR to comply with Nasdaq's Equity Rule?

The Nasdaq Hearings Panel granted TRNR an exception until November 14, 2024, to demonstrate compliance with the Equity Rule.