TruGolf (TRUG) Registration filing summary

Company overview and business model

• Designs, manufactures, and sells indoor golf simulators and software for residential and commercial markets, with a 40-year history in golf technology.

• Offers a range of hardware (portable, professional, commercial, custom) and proprietary E6 Connect software, which is compatible with 90% of golf simulator hardware globally.

• Pursuing growth through franchising indoor golf venues, launching a Virtual Golf Association, and monetizing swing data.

• Recent business combination with Deep Medicine Acquisition Corp. resulted in public listing on Nasdaq as TruGolf Holdings, Inc.

Financial performance and metrics

• 2023 revenue was $20.6M, up 1.8% from 2022, driven by new Apogee launch monitor sales, offset by a decline in software subscriptions.

• Gross profit for 2023 was $12.8M, with a gross margin of 62%.

• Operating expenses rose 71.7% to $21.4M in 2023, mainly due to stock-based compensation and consulting fees related to the IPO and business combination.

• Net loss for 2023 was $10.3M, compared to a net loss of $957K in 2022.

• As of March 31, 2024, cash and equivalents were $7.8M, with current working capital of $2.5M.

• Company has incurred net losses and negative operating cash flows in recent periods, but management believes it has sufficient capital for at least the next 12 months.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by selling securityholders; proceeds from warrant exercises, if any, will be used for general corporate purposes.

• PIPE financing raised up to $15.5M in convertible notes, with additional tranches possible.

• Capital raised is allocated to product development, manufacturing expansion, marketing, and international growth initiatives.