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 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.

• Recently completed a business combination, resulting in a public listing on Nasdaq under the symbol TRUG.

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 operating expenses rising 71.7% to $21.4M, resulting in a net loss of $10.3M.

• For the six months ended June 30, 2024, revenue declined 14.2% year-over-year to $8.9M, with a net loss of $2.9M.

• As of June 30, 2024, cash and equivalents were $6.7M, with a working capital deficit of $66K.

• Company has incurred net losses and negative operating cash flows in recent periods, raising substantial doubt about its ability to continue as a going concern without additional capital or improved performance.

Use of proceeds and capital allocation

• Proceeds from warrant exercises, if any, will be used for general corporate purposes; actual cash received depends on market price exceeding warrant exercise prices.

• Capital from the business combination and PIPE financing is allocated to product development, manufacturing expansion, marketing, and international growth.

• No proceeds will be received from the resale of shares by selling securityholders.