Trugolf Reports First Quarter 2025 Financial Results Q1 2025 Sales Grow 7.5% Over Q1 2024

(MENAFN- GlobeNewsWire - Nasdaq) 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,

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.

Contact:	Michael Bacal
	...
	917-886-9071

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	)

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