# EDGAR Filing Document

**Accession Number:** 0001785056
**File Stem:** 0001193125-26-232775
**Filing Date:** 2026-5
**Character Count:** 216232
**Document Hash:** eaa49b7cd35593b40be56c8dc818c4d6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-232775.hdr.sgml**: 20260520

**ACCESSION NUMBER**: 0001193125-26-232775

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 112

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260520

**DATE AS OF CHANGE**: 20260520

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Interactive Strength, Inc.
- **CENTRAL INDEX KEY:** 0001785056
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 821432916
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41610
- **FILM NUMBER:** 261004837

**BUSINESS ADDRESS:**
- **STREET 1:** 1005 CONGRESS AVENUE
- **STREET 2:** SUITE 925
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78701
- **BUSINESS PHONE:** 3106978655

**MAIL ADDRESS:**
- **STREET 1:** 1005 CONGRESS AVENUE
- **STREET 2:** SUITE 925
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78701

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **March 31,** 2026

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ___________ to ________**

**Commission File Number:** 001-41610

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INTERACTIVE STRENGTH INC.

**(Exact name of registrant as specified in its charter)**

------

---

| | |
|:---|:---|
| Delaware | 82-1432916 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |
| 1005 Congress Ave**,** Suite 925<br>Austin**,** Texas | 78701 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (**512**)** 885-0035

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Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, $0.0001 par value per share | TRNR | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☒ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 15, 2026, the registrant had 2,330,936 shares of common stock, $0.0001 par value per share, outstanding.

Unless otherwise indicated, all share numbers and per share totals have been adjusted to reflect the 1-for-40 reverse stock split that was effective on June 14, 2024, the 1-for-100 reverse stock split that was effective on November 11, 2024, the 1-for-10 reverse stock split that was effective on June 26, 2025 and the 1-for-10 reverse stock split that was effective on February 24, 2026.

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**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **<u>Part I. Financial Information</u>** |  |
| [<u>Item 1 Financial Statements</u>](#item_1_financial_statements) | 1 |
| [<u>Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operation</u>](#item_2_managements_discussion_and_analys)<u>s</u> | 31 |
| [<u>Item 3 Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_and_qualitative) | 45 |
| [<u>Item 4 Controls and Procedures</u>](#item4_controls_and_procedures) | 45 |
| **<u>Part II. Other Information</u>** |  |
| [<u>Item 1 Legal Proceedings</u>](#item_1_legal_proceedings) | 48 |
| [<u>Item 1A Risk Factors</u>](#item_1a_risk_factors) | 48 |
| [<u>Item 5 Other Information</u>](#item_5_other_information) | 49 |
| [<u>Item 6 Exhibits</u>](#item6_exhibits) | 50 |

---

i

------

# Item 1. Financial S tatements

# INTERACTIVE STRENGTH INC. AND SUBSIDIARIES

# CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)

(In thousands, except share amounts)

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $4738 | $512 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 2512 | 2614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 4544 | 3748 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendor deposits | 1130 | 377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan receivable |  | 6592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1125 | 860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 14049 | 14703 |
| Property and equipment, net | 436 | 379 |
| Right-of-use-assets | 284 | 317 |
| Intangible assets, net | 17098 | 7863 |
| Long-term inventories, net | 3523 | 3583 |
| Vendor deposits long term | 1825 | 1825 |
| Goodwill | 20639 | 15545 |
| Other assets | 2790 | 2628 |
| **Total assets** | $60644 | $46843 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $9358 | $8981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 5191 | 4849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability, current portion | 143 | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 4475 | 1317 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan payable | 7543 | 8823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | 1011 | 243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible notes payable, net | 8757 | 6913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 36478 | 31285 |
| Operating lease liability, net of current portion | 152 | 171 |
| Mandatorily redeemable Series D convertible preferred stock | 7859 |  |
| Other long term liabilities | 3455 | 1753 |
| Warrant liabilities | 169 | 408 |
| Loans payable non current, net | 3502 | 1794 |
| Convertible notes payable non current, net | 1053 | 2738 |
| **Total liabilities** | $52668 | $38149 |
| Commitments and contingencies (Note 15) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series E convertible preferred stock, par value $0.0001; 1,300,000 shares authorized, issued and outstanding as of March 31, 2026 and December 31, 2025. | 2304 | 2304 |
| **Stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A convertible preferred stock, par value $0.0001; 10,000,000 shares authorized; 4,414,745 shares issued and outstanding as of March 31, 2026 and December 31, 2025. | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series B convertible preferred stock, par value $0.0001; 1,500,000 shares authorized; 408,775 shares issued and outstanding as of March 31, 2026 and December 31, 2025. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C convertible preferred stock, par value $0.0001; 5,000,000 shares authorized; 2,623,176 and 1,534,921 shares issued and outstanding as of March 31, 2026 and December 31, 2025. | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $0.0001; 900,000,000 shares authorized; 2,057,018 and 307,516 shares issued and outstanding as of March 31, 2026 and December 31, 2025. | 2 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 243976 | 233817 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | (24) | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (238285) | (227542) |
| Total stockholders' equity | 5672 | 6390 |
| **Total liabilities, preferred stock and stockholders' equity** | $60644 | $46843 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

# 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,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product revenue | $4453 | $1050 |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership revenue | 605 | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other revenue | 83 | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 5141 | 1356 |
| Cost of revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of fitness product revenue | (3043) | (917) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of membership | (365) | (423) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of training and other revenue | (124) | (320) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | (3532) | (1660) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit (loss) | 1609 | (304) |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 438 | 1271 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 1034 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 4127 | 4487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 5599 | 6008 |
| Loss from operations | (3990) | (6312) |
| Other income (expense), net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | (2477) | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1530) | (1764) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain upon extinguishment of debt and accounts payable | (1710) | 3037 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes | (1350) | (573) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earnout | (26) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | (327) | (1487) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrants | 667 | 449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense), net | (6753) | (291) |
| Loss before provision for income taxes | (10743) | (6603) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense |  |  |
| Net loss attributable to common stockholders | $(10743) | $(6603) |
| Net loss per share - basic and diluted | $(10.24) | $(173.58) |
| Weighted average common stock outstanding—basic and diluted | 1049454 | 38041 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Net loss | $(10743) | $(6603) |
| Other comprehensive (loss) gain: |  |  |
| Foreign currency translation (loss) gain | (137) | 21 |
| Total comprehensive loss | $(10880) | $(6582) |

---

The accompanying notes are an integral part of these consolidated financial statements.

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# INTERACTIVE STRENGTH INC. AND SUBSIDIARIES
**CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited)

(In thousands, except share amounts)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Convertible Preferred Stock Series E** | **Convertible Preferred Stock Series E** | **Convertible Preferred Stock Series A** | **Convertible Preferred Stock Series A** | **Convertible Preferred Stock Series B** | **Convertible Preferred Stock Series B** | **Convertible Preferred Stock Series C** | **Convertible Preferred Stock Series C** | **Common Stock** | **Common Stock** | **Additional Paid-In Capital** | **Accumulated Other Comprehensive Income** | **Accumulated Deficit** | **Total Stockholders' (Deficit) Equity** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |  |  |  |  |
| **Balances at December 31, 2024** |  | $- | 4658737 | $1 | 1500000 | $- | 2861128 | $- | 14021 | $8 | $209509 | $183 | $(202586) | $7115 |
| Series A Preferred dividends declared and paid in kind |  |  | 112334 |  |  |  |  |  |  |  | 225 |  | (225) |  |
| Series C Preferred dividends declared and paid in kind |  |  |  |  |  |  | 126515 |  |  |  | 253 |  | (253) |  |
| Issuance of Common stock from At the Market offering |  |  |  |  |  |  |  |  | 8215 |  | 1594 |  |  | 1594 |
| Issuance of Common stock upon conversion of convertible notes |  |  |  |  |  |  |  |  | 39416 | 1 | 5798 |  |  | 5799 |
| Issuance of Common stock upon conversion of preferred stock |  |  | (100000) |  | (1060118) |  | (2801250) |  | 17883 |  |  |  |  |  |
| Issuance of Series C Preferred stock upon settlement of loss restoration agreement |  |  |  |  |  |  | 1684817 | 1 |  |  | 3127 |  |  | 3128 |
| Gain on extinguishment of related party promissory notes |  |  |  |  |  |  |  |  |  |  |  |  | 279 | 279 |
| Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 2423 |  |  | 2423 |
| Foreign currency translation gain |  |  |  |  |  |  |  |  |  |  |  | 21 |  | 21 |
| Net loss |  |  |  |  |  |  |  |  |  |  |  |  | (6603) | (6603) |
| **Balances at March 31, 2025** |  | $— | 4671071 | $1 | 439882 | $— | 1871210 | $1 | 79535 | $9 | $222929 | $204 | $(209388) | $13756 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(unaudited)

(In thousands, except share amounts)

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Convertible Preferred Stock Series E** | **Convertible Preferred Stock Series E** | **Convertible Preferred Stock Series A** | **Convertible Preferred Stock Series A** | **Convertible Preferred Stock Series B** | **Convertible Preferred Stock Series B** | **Convertible Preferred Stock Series C** | **Convertible Preferred Stock Series C** | **Common Stock** | **Common Stock** | **Additional Paid-In Capital** | **Accumulated Other Comprehensive Income** | **Accumulated Deficit** | **Total Stockholders' Equity** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |  |  |  |  |
| **Balances at December 31, 2025** | 1300000 | $2304 | 4414745 | $1 | 408775 | $- | 1534921 | $1 | 307516 | $- | $233817 | $113 | $(227542) | $6390 |
| Issuance of Common stock from At the Market offering |  |  |  |  |  |  |  |  | 290000 |  | 1463 |  |  | 1463 |
| Issuance of Common stock upon conversion of convertible notes |  |  |  |  |  |  |  |  | 1127416 | 1 | 5867 |  |  | 5868 |
| Issuance of Series C Preferred stock under settlement agreement |  |  |  |  |  |  | 1088255 | 1 |  |  | 1750 |  |  | 1751 |
| Reverse stock split retirement of fractional shares |  |  |  |  |  |  |  |  | (32) |  |  |  |  |  |
| Issuance of Common stock upon settlement of debt |  |  |  |  |  |  |  |  | 332118 | 1 | 831 |  |  | 832 |
| Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 248 |  |  | 248 |
| Foreign currency translation gain |  |  |  |  |  |  |  |  |  |  |  | (137) |  | (137) |
| Net loss |  |  |  |  |  |  |  |  |  |  |  |  | (10743) | (10743) |
| **Balances at March 31, 2026** | 1300000 | $2304 | 4414745 | $1 | 408775 | $— | 2623176 | $2 | 2057018 | $2 | $243976 | $(24) | $(238285) | $5672 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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# CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)

(In thousands)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Cash Flows From Operating Activities:** |  |  |
| Net loss | $(10743) | $(6603) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency | 4 | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 36 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 817 | 876 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | 33 | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory step up amortization | 1 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 394 | 2089 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt and accounts payable | 1710 | (3037) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on settlement of accounts payable |  | 551 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of preferred stock | 37 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest income |  | (158) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid in kind and non-cash interest expense | 602 | 1306 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 946 | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Credit loss on loan receivable | 242 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes | 1350 | 573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash charge from settlement agreement | 2176 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earnout | 26 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | 327 | 1487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrants | (667) | (449) |
| Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 249 | (338) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (73) | 391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 73 | (48) |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendor deposits | (13) | (37) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (17) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 161 | (580) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | (49) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (175) | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (35) | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (2587) | (3545) |
| **Cash Flows From Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment from (advances to) Sportstech | 6350 | (2025) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (97) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of property and equipment | 9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of internal use software | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of business, cash paid, net of cash acquired | (1711) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of software and content | (399) | (166) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used) in investing activities | 4150 | (2191) |
| **Cash Flows From Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of loans | (344) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible notes, net of issuance costs | 1595 | 6177 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock from At the Market Offering, net of issuance costs | 1463 | 1594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 2714 | 7771 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate on cash | (51) | 34 |
| **Net Change In Cash and Cash Equivalents** | 4226 | 2069 |
| Cash at beginning of the period | 512 | 138 |
| Cash at end of period | $4738 | $2207 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

# INTERACTIVE STRENGTH INC. AND SUBSIDIARIES

# NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
**1. Description of Business and Basis of Presentation**

***Description and Organization***

Interactive Strength Inc. (the "Company") is an acquisition-focused company seeking to accelerate growth via acquisitions and deploy capital into sectors that are considered undervalued due to temporary factors, operational or misunderstood industry trends. The Company's current portfolio consists of four leading brands serving the commercial and at-home markets with specialty fitness equipment and virtual training: Wattbike, Ergatta, CLMBR and FORME. Wattbike, acquired on July 1, 2025, offers a range of high-performance indoor bikes and has built a reputation as the training tool trusted by the world's top athletes, teams and military programs. CLMBR manufactures vertical climbing equipment and provides a unique digital and on-demand training platform. FORME is a hardware manufacturer and digital fitness service provider that combines award-winning smart gyms with live 1:1 personal training (from real humans) to deliver an immersive experience. The combination of technology with expert training leads to better outcomes for both consumers and trainers alike. Wattbike, CLMBR and FORME offer unique fitness solutions for both the commercial and at-home markets.

***Reverse Stock Split***

On February 23, 2026, the Company filed a Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a reverse stock split of the Company's common stock, $0.0001 par value per share (the "Common Stock"), at a rate of 1-for-10 (the "February 2026 Reverse Stock Split"), effective on February 24, 2026. As a result of the February 2026 Reverse Stock Split, every ten pre-split shares of Common Stock were combined into one share of Common Stock, resulting in a reduction in the number of shares of the Company's outstanding Common Stock from 17,984,137 shares to 1,798,406 shares.

On June 26, 2025, the Company filed a Certificate of Amendment to the Company's Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a reverse stock split of the Company's common stock, $0.0001 par value per share, at a rate of 1-for-10 (the "June 2025 Reverse Stock Split"), effective on June 26, 2025. The June 2025 Reverse Stock Split decreased the number of shares of Common Stock issued and outstanding from 14,091,197 shares to 1,409,047 shares.

The February 2026 Reverse Stock Split and the June 2025 Reverse Stock Split (collectively, the "Reverse Stock Splits") both resulted in each holder of Common Stock owning fewer shares of Common Stock. However, the Reverse Stock Splits affected all holders of Common Stock uniformly and did not affect any stockholder's percentage ownership interest in the Company. Therefore, voting rights and other rights and preferences of the holders of Common Stock were not affected by the Reverse Stock Splits. Common stock issued pursuant to the Reverse Stock Splits remains fully paid and nonassessable, without any change in the par value per share. Pursuant to the Charter Amendment, no fractional shares were issued in connection with the Reverse Stock Splits. Stockholders who otherwise would be entitled to receive fractional shares received cash for each fraction of a share held. Proportionate adjustments were made to the number of shares of Common Stock underlying the Company's outstanding equity awards and warrants, and the number of shares issuable under the Company's equity incentive plans, convertible notes and other existing agreements, as well as their corresponding exercise or conversion price, as applicable. There was no change to the number of authorized shares or the par value per share of the Company's common stock.

All share and per share information, including earnings per share, in this Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Splits, and certain items in prior period financial statements have been revised to conform to the current presentation (see Note 2).

***Acquisition of Ergatta, Inc.***

On February 18, 2026, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Ergatta, Inc., a Delaware corporation ("Ergatta"), Ergatta Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Company ("Merger Sub"), and Tom Aulet, solely in his capacity as the securityholders' representative (the "Securityholders' Representative"), pursuant to which Merger Sub merged with and into Ergatta (the "Merger"), with Ergatta surviving as a wholly owned subsidiary of the Company (the "Ergatta Acquisition"). At the effective time of the Merger, each issued and outstanding share of preferred stock and common stock of Ergatta (other than excluded and dissenting shares) was cancelled and, in the case of the preferred stock, converted into the right to receive, subject to the terms of the Merger Agreement, the merger consideration more fully described in Note 23. The Merger closed on March 11, 2026, and the accompanying condensed consolidated financial statements reflect the operations of Ergatta subsequent to that date (see Note 23 for further information).

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***Acquisition of Wattbike Holdings Limited***

On April 8, 2025, the Company entered into an Agreement for the Sale and Purchase of the Entire Issued Share Capital and Loan Notes of Wattbike (Holdings) Limited ("Wattbike") (the "Purchase Agreement") with the shareholders of Wattbike (the "Shareholders") and holders of certain promissory notes (the "Notes") issued by Wattbike (the "Noteholders," and together with the Shareholders, the "Sellers") to acquire the entire issued share capital and Notes of Wattbike. On July 1, 2025, pursuant to the Purchase Agreement, the Company completed the acquisition for a total purchase price of approximately $3.7 million, consisting of (i) all of the issued and outstanding shares of Wattbike held by the Shareholders in exchange for £1.00, (ii) contingent consideration with a fair value of $0.2 million, (iii) 1,300,000 shares of the Company's non-voting Series E preferred stock with a fair value of $2.3 million, and (iv) effective settlement of certain preexisting relationships and bridge financing previously recorded as a loan receivable by the Company of $1.2 million (the "Wattbike Acquisition").

The Wattbike Acquisition was accounted for under the acquisition method of accounting under Accounting Standards Codification ("ASC") 805, Business Combinations. Assets acquired and liabilities assumed were recorded in the condensed consolidated balance sheet at their estimated fair values as of July 1, 2025, with the remaining unallocated purchase price recorded as goodwill.

***Liquidity and Capital Resources***

In accordance with Accounting Standards Update ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (Subtopic 205-40), or ASU 205-40, management evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the issuance date of the accompanying financial statements.

As an emerging growth company, the Company is subject to certain inherent risks and uncertainties associated with the development of an enterprise. In this regard, since the Company's inception, substantially all of management's efforts have been devoted towards the development of its brands and services, their penetration in the marketplace, and the development of a commercial organization, all at the expense of short-term profitability.

As of the date the accompanying consolidated financial statements were issued (the "issuance date"), management evaluated the following adverse conditions and events present at the Company in accordance with ASU 205-40:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company has incurred significant operating losses and used net cash flows in its operations since its inception. In this regard, the Company incurred a net operating loss of $4.0 million and used net cash in its operations of $2.6 million during the three months ended March 31, 2026, and had an accumulated deficit of $238.3 million as of March 31, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•In order to execute its emerging growth strategy, the Company has been heavily dependent on financing from lenders and capital from private and public investors (collectively "outside capital") since its inception and expects to remain heavily dependent on outside capital for the foreseeable future until such time that the Company's operations reach a scale of profitability that allows it to fund its obligations primarily with cash inflows from operations. However, management can provide no assurance the Company will ever be able to generate sufficient cash inflows to reduce or eliminate its reliance on outside capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company's available liquidity to fund its operations over the next twelve months beyond the issuance date was limited to approximately $1.3 million of unrestricted cash and cash equivalents. However, based on the Company's anticipated liquidity needs, the foregoing available liquidity will not be sufficient to fund the Company's obligations as they become due over the next year beyond the issuance date absent management's ability to secure additional outside capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•While the Company is actively seeking to secure additional outside capital (and has historically been able to successfully secure such capital), no additional outside capital has been secured or was deemed probable of being secured as of the issuance date. In addition, management can provide no assurance that the Company will be able to secure additional outside capital on acceptable terms, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Included in the Company's anticipated liquidity needs is a substantial amount of outstanding debt that is scheduled to mature over the next twelve months beyond the issuance date. As disclosed in Notes 11 and 24, the Company had total outstanding debt, including convertible notes, of approximately $20.3 million as of the issuance date, of which approximately $18.2 million is scheduled to mature over the next twelve months beyond the issuance date, for which the Company does not have sufficient liquidity to repay if a cash settlement is required. In the event the Company is unable to refinance its outstanding debt, settle some or all of its debt with shares of the Company's common or preferred stock, secure additional outside capital, and/or secure amendments or waivers from its lenders to defer or modify their repayment terms, management will be required to seek other strategic alternatives to settle this indebtedness, which may include, among others, a significant curtailment of the Company's operations, a sale of certain of the Company's assets, a sale of the entire Company to strategic or financial investors, and/or allowing the Company to become insolvent by filing for bankruptcy protection under the provisions of the U.S. Bankruptcy Code.

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These uncertainties raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern, which contemplates that the Company will be able to realize assets and settle liabilities and commitments in the normal course of business for the foreseeable future. Accordingly, the accompanying consolidated financial statements do not include any adjustments that may result from the outcome of these uncertainties.

**2. Summary of Significant Accounting Policies**

***Basis of Presentation and Consolidation***

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board (the "FASB").

The accompanying unaudited condensed consolidated financial statements include the accounts of Interactive Strength Inc. and its subsidiaries in which the Company has a controlling financial interest, and should be read in conjunction with the annual audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2025 included in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") on March 31, 2026. The accompanying consolidated balance sheet as of December 31, 2025 was derived from the audited financial statements as of and for the year ended December 31, 2025. These condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X, and therefore omit or condense certain footnotes and other information normally included in complete consolidated financial statements prepared in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company's financial position as of March 31, 2026 and its results of operations, comprehensive loss, changes in stockholders' equity and cash flows for the three months ended March 31, 2026 and 2025. In addition, certain prior year balances have been reclassified to conform to the current presentation. Specifically, Income tax payable as of December 31, 2025 in the amount of $7,000 has been reclassified to Accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet and Proceeds from exercise of incremental warrants and issuance of convertible notes, net of issuance costs for the three months ended March 31, 2025 in the amount of $3.5 million has been reclassified to Proceeds from issuance of convertible notes, net of issuance costs, in the accompanying condensed consolidated statement of cash flows.

The financial data and other information disclosed in these notes related to the three months ended March 31, 2026 and 2025 are unaudited. The results for the three months ended March 31, 2026 and 2025 , are not necessarily indicative of results to be expected for the year ending December 31, 2026 , any other interim periods, or any future year or period.

***Use of Estimates***

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to the realizability of inventory, fair value measurements, useful lives of long lived assets, including property and equipment and finite lived intangible assets, product warranty, stock-based compensation expense, warrant liabilities, accrual of acquisition earn-outs, valuation of deferred taxes, valuation of derivatives, fair value of goodwill and other intangible assets, fair value of preferred stock in connection with acquisitions and debt extinguishments, and commitments and contingencies. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results may differ from these estimates.

***Segment Information***

Operating segments are defined as components of an enterprise for which separate and discrete information is available for evaluation by the chief operating decision-maker ("CODM") in deciding how to allocate resources and assess performance. The Company has one operating segment, the development and sale of its at-home fitness technology platform. The Company's CODM is its chief executive officer, who manages the Company's operations on a consolidated basis for the purpose of allocating resources. As the Company has one reportable segment, all required segment financial information is presented in the consolidated financial statements (See Note 3). The Company currently operates in the United States, the United Kingdom, and Taiwan. As of March 31, 2026 and December 31, 2025, substantially all of the Company's long-lived assets were held in the United States.

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**Significant Accounting Policies** 

During the three months ended March 31, 2026, there were no significant changes to the Company's significant accounting policies as described in the Company's audited consolidated financial statements as of and for the year ended December 31, 2025, except as described below.

***Loan Receivable***

Loan receivable as of December 31, 2025 consisted of a loan agreement entered into with Sportstech Brands Holding GmbH ("Sportstech") and Mr. Ali Ahmad, the sole shareholder of Sportstech, which was intended as a form of bridge financing until a pending acquisition transaction could be closed. The Transaction did not close as the Company and Sportstech were unable to come to terms on a final subscription and shareholders' agreement, and the loan was not paid back at the maturity date of December 30, 2025. The balance on the loan receivable from Sportstech as of December 31, 2025, including accrued interest and fees, was $6.6 million, which was recorded on the Company's balance sheet as of December 31, 2025. On March 4, 2026, the Company and Sportstech settled the outstanding balance and the Company received $6.4 million in cash. As a result, the Company recorded a credit loss on the settlement of the loan receivable in the amount of $0.2 million in the first quarter of 2026, which is reflected in Other expense in the accompanying condensed consolidated statement of operations.

***Recently Issued Accounting Pronouncements***

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB"), or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the impact of recently issued standards that are not yet effective will not have a material impact on the Company's condensed consolidated financial statements upon adoption. The Company qualifies as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and has elected not to "opt out" of the extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company has the option to adopt the new or revised standard at the time private companies adopt the new or revised standard and may do so until such time that the Company either (i) irrevocably elects to "opt out" of such extended transition period or (ii) no longer qualifies as an emerging growth company. As noted below, certain new or revised accounting standards were early adopted.

*Accounting Pronouncements Recently Adopted* 

*ASU 2025-05*

In July 2025, the FASB issued ASU 2025-05, "Financial Instruments – Credit Losses (Topic 326)." In developing forecasts as part of estimating expected credit losses, the ASU allows entities to elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. This ASU is effective for annual and interim periods beginning in 2026. The Company adopted ASU 2025-05 effective January 1, 2026. Adoption of the new standard did not have a material impact on the Company's consolidated financial statements.

*Accounting Pronouncements Not Yet Adopted* 

*ASU 2024-03*

In November 2024, the FASB issued ASU 2024-03, as amended by ASU 2025-01, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses". The amendments in ASU 2024-03 address investor requests for more detailed expense information and require additional disaggregated disclosures in the notes to financial statements for certain categories of expenses that are included on the face of the income statement. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its condensed consolidated financial statements.

*ASU 2025-06*

In September 2025, the FASB issued ASU 2025-06, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40)." The ASU updates the guidance on accounting for internal-use software costs by (i) removing all references to software development stages, and (ii) requiring that an entity capitalize software costs when both management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. This ASU is effective for annual and interim periods beginning in 2028. Early adoption is permitted. The Company is currently evaluating the impact of the new standard.

**3. Segment Reporting**

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The Company is organized into one operating and one reportable segment that engages in the development and sales of specialty fitness equipment and virtual training and is managed on a consolidated basis. The CODM regularly reviews financial information at the operating segment level to allocate resources and to assess performance. The CODM evaluates segment profit (loss) based on net loss, which is reported in the condensed consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets. The CODM uses net loss to allocate resources, including property and equipment and financial or capital resources, and to assess performance by monitoring budget-to-actual and year-over-year variances.

The following table presents revenue and significant segment expenses that are included within net loss:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **(in thousands)** | **2026** | **2025** |
| Total Revenues | $5141 | $1356 |
| Less: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of fitness product revenue (excluding depreciation and amortization) | 2898 | 759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of membership (excluding depreciation and amortization) | 37 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of training | 124 | 320 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development (excluding stock based compensation) | 383 | 572 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative (excluding stock based compensation, depreciation and amortization) | 2806 | 2040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 1530 | 1764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | (158) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earnout | 26 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss upon extinguishment of debt and accounts payable | 1710 | (3037) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes | 1350 | 573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | 327 | 1487 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrants | (667) | (449) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 854 | 1012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 394 | 2089 |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction related expenses (1) | 801 | 299 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendor Settlements | 115 | 458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other segment items (2) | 3196 | 230 |
| Net loss | $(10743) | $(6603) |
| Reconciliation of net loss |  |  |
| Adjustments and reconciling items |  |  |
| Consolidated net loss | $(10743) | $(6603) |

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(1) Transaction costs related to acquisition of Ergatta, Wattbike and Sportstech.

(2) Other segment items included in consolidated net loss includes sales and marketing (excluding stock based compensation, depreciation and amortization) and other expense, net.

The following tables present a summary of revenues by geographic area:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| **(in thousands)** | **CLMBR** | **FORME** | **Wattbike** | **Ergatta** | **Total** |
| Revenue |  |  |  |  |  |
| United States |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | $23 | $109 | $358 | $104 | $594 |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership Revenue | 102 | 43 | - | 407 | 552 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other revenue | 2 | 49 | - | 32 | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 127 | 201 | $358 | 543 | 1229 |
| Europe |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | - | - | 3074 | - | 3074 |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership Revenue | - | - | 43 | 7 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | - | - | 3117 | 7 | 3124 |
| Asia |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | - | - | 361 | - | 361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | - | - | 361 | - | 361 |
| Other |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | - | - | 424 | - | 424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership Revenue | - | - | - | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | - | - | 424 | 3 | 427 |
| Total Revenue | $127 | $201 | $4260 | $553 | $5141 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| **(in thousands)** | **CLMBR** | **FORME** | **Wattbike** | **Ergatta** | **Total** |
| Revenue |  |  |  |  |  |
| United States |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | $989 | $61 | $- | $- | $1050 |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership Revenue | 138 | 38 | - | - | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other revenue | 90 | 40 | - | - | 130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 1217 | 139 | - | - | 1356 |
| Europe |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | - | - | - | - | - |
| Asia |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness Product Revenue | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  |  |  |  |
| Total Revenue | $1217 | $139 | $- | $- | $1356 |

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**4. Revenue Recognition**

The Company's revenue is mainly derived from the sales of its Connected Fitness Products in Europe and the United States and associated recurring Membership revenue, along with sales of personal training services and license revenue recorded within Training and other revenue.

The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Identification of the contract, or contracts, with a customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Identification of the performance obligations in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Determination of the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Allocation of the transaction price to the performance obligations in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company's revenue is reported net of sales returns, discounts and incentives as a reduction of the transaction price.

The Company applies the practical expedient as per ASC 606-10-50-14 and does not disclose information related to remaining performance obligations due to their original expected terms being one year or less.

*Connected Fitness Products*

Connected Fitness Products include the Company's portfolio of Connected Fitness Products and related accessories, delivery and installation services, and extended warranty agreements. The Company recognizes Connected Fitness Product revenue net of sales returns and discounts on the date the product has been delivered to the customer or at shipping point if the customer is responsible for shipping, except for extended warranty revenue which is recognized over the warranty period. The Company allows customers to return products within thirty days of purchase, as stated in its return policy.

Amounts paid for payment processing fees for credit card sales for Connected Fitness Products are included as a reduction to fitness product revenue in the Company's condensed consolidated statements of operations and comprehensive loss.

*Membership*

The Company's memberships provide unlimited access to content in its library of on-demand fitness classes. The Company's memberships are offered on a month-to-month basis.

Amounts paid for membership fees are included within deferred revenue on the Company's condensed consolidated balance sheets and recognized ratably over the membership term. The Company records payment processing fees for its monthly membership charges within cost of membership in the Company's condensed consolidated statements of operations and comprehensive loss.

*Training and other*

The Company's training services are personal training services delivered through its Connected Fitness Products and third-party mobile devices. Training revenue is recognized at the time the services are delivered. Other revenue mainly includes third-party license revenue for Ergatta.

*Standard Product Warranty*

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The Company offers a standard product warranty that its Connected Fitness Products and related accessories will operate under normal, non-commercial use for a period of one year which covers the touchscreen, frame and all incorporated elements, and related accessories from the date of original delivery. The Company has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs are recorded as a component of cost of revenue. Factors that affect the warranty obligation include historical as well as current product failure rates, service delivery costs incurred in correcting product failures, and warranty policies and business practices.

The Company also offers the option for customers in some markets to purchase a third-party extended warranty and service contract that extends or enhances the technical support, parts, and labor coverage offered as part of the base warranty included with the Connected Fitness Product for an additional period of 24 to 48 months.

For third-party extended warranty service sold along with the Company's Connected Fitness Products, the Company does not obtain control of the warranty before transferring it to the customers. Therefore, the Company accounts for revenue related to the fees paid to the third-party extended warranty provider on a net basis, by recognizing only the net commission it retains. The Company considers multiple factors when determining whether it obtains control of third-party products including, but not limited to, evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product.

The Company sells connected fitness equipment and digital fitness services across Business to Business ("B2B") and Business to Customer ("B2C") channels in the United States, Europe and Asia. The following table presents a summary of revenue by product:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;CLMBR | $23 | $989 |
| &nbsp;&nbsp;&nbsp;&nbsp;FORME | 109 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ergatta | 104 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wattbike | 4217 |  |
| Total Fitness Product Revenue | 4453 | 1050 |
| &nbsp;&nbsp;&nbsp;&nbsp;CLMBR | 102 | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;FORME | 43 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ergatta | 416 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Wattbike | 44 |  |
| Total Membership Revenue | 605 | 176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ergatta | 32 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CLMBR | 2 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;FORME | 49 | 40 |
| Total Training and other revenue | 83 | 130 |
| Total Revenue | $5141 | $1356 |

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**5. Inventories, net**

Inventories consist of the following:

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| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Finished products | $4048 | $3748 |
| Finished products - Long Term | 2947 | 3007 |
| Manufactured components and accessories | 496 |  |
| Raw materials - Long Term | 576 | 576 |
| Total inventories, net | $8067 | $7331 |

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Manufactured components and accessories generally represent purchased components that later get integrated into a finished rower by the Company's contract manufacturer.

Finished products - Long Term represents inventory not expected to be sold in the next twelve months. Raw materials - Long Term represents the components and parts currently being stored in the Company's Taiwan facility that will be shipped to the Company's manufacturing partners and will not be used within one year.

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**6. Property and Equipment, net**

Property and equipment consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Pre-production tooling | $3322 | $3325 |
| Machinery and equipment | 1052 | 967 |
| Leasehold improvements | 197 | 198 |
| Furniture and fixtures | 23 | 23 |
| Exercise equipment | 59 | 60 |
| Total | 4653 | 4573 |
| Less: Accumulated depreciation | (4217) | (4194) |
| Total property and equipment, net | $436 | $379 |

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Depreciation expense amounted to approximately $36,000 for the three months ended March 31, 2026 and 2025.

**7. Goodwill, Intangible Assets, net and Digital Assets**

***Goodwill*** 

Goodwill and intangible assets of $5.1 million and $9.8 million, respectively, were acquired in the Ergatta Acquisition and were recorded at fair value on the acquisition date. As of March 31, 2026, there was no goodwill impairment. Refer to Note 23. Acquisitions for more information.

Changes in goodwill for the three months ended March 31, 2026 are as follows:

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| | |
|:---|:---|
| ***(in thousands)*** | **Goodwill** |
| Balance as of December 31, 2025 | $15545 |
| Goodwill acquired | 5145 |
| Foreign currency translation adjustments | (51) |
| Balance as of March 31, 2026 | $20639 |

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***Intangible Assets, Net***

Identifiable intangible assets, net consist of the following:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of March 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
| ***(in thousands)*** | **Cost** | **Accumulated Amortization** | **Net Book Value** | **Cost** | **Accumulated Amortization** | **Net Book Value** |
| Internal-use software | $6415 | $(6220) | $195 | $6415 | $(6171) | $244 |
| Developed technology | 4987 | (667) | 4320 | 2610 | (535) | 2075 |
| Customer related | 12050 | (1228) | 10822 | 5479 | (944) | 4535 |
| Trademark and trade name | 1996 | (235) | 1761 | 1203 | (194) | 1009 |
| Total identifiable intangible assets | $25448 | $(8350) | $17098 | $15707 | $(7844) | $7863 |

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Amortization expense amounted to $0.5 million for the three months ended March 31, 2026 and 2025. As of March 31, 2026 and December 31, 2025, there was no intangible asset impairment.

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As of March 31, 2026, estimated annual amortization expense for each of the next five fiscal years is as follows:

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| | |
|:---|:---|
| **Fiscal Years Ending December 31,** | **Fiscal Years Ending December 31,** |
| *(in thousands)* |  |
| 2026 (remaining) | 3510 |
| 2027 | 4532 |
| 2028 | 2406 |
| 2029 | 1715 |
| 2030 | 1689 |
| 2031 | 1158 |
| Thereafter | 2088 |
| Total | $17098 |

---

**8. Prepaid Expenses and Other Current Assets**

Prepaid expenses and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Security deposit | 20 | 50 |
| Prepaid licenses | 179 | 151 |
| Research and development tax credit | 194 | 254 |
| Other receivables | 20 | 20 |
| Insurance | 243 | 86 |
| Other prepaid | 469 | 299 |
| Total prepaid expenses and other current assets | $1125 | $860 |

---

**9. Other Assets, net**

Other assets, net consisted of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of March 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
| ***(in thousands)*** | **Cost** | **Accumulated Amortization** | **Net Book Value** | **Cost** | **Accumulated Amortization** | **Net Book Value** |
| Capitalized content costs | $6824 | $(6364) | $460 | $6789 | $(6346) | $443 |
| Capitalized software | 8288 | (5986) | 2302 | 7886 | (5701) | 2185 |
| Security deposits | 28 | - | 28 | - | - | - |
| Total other assets | $15140 | $(12350) | $2790 | $14675 | $(12047) | $2628 |

---

Amortization expense amounted to $0.3 million and $0.4 million for the three months ended March 31, 2026 and 2025, respectively.

------

**10. Accrued Expenses and Other Current Liabilities**

Accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Accrued bonus | $93 | $73 |
| Accrued payroll | 141 | 151 |
| Accrued PTO | 67 | 60 |
| Accrued legal settlements | 2054 | 2066 |
| Accrued royalties | 251 | 251 |
| Accrued professional fees | 756 | 451 |
| Customer deposits | 23 | 12 |
| Vendor settlements | 300 | 300 |
| Accrued state and local taxes | 192 |  |
| Accrued VAT | 400 | 488 |
| Other accrued expenses and current liabilities | 914 | 997 |
| Total accrued expenses and other current liabilities | $5191 | $4849 |

---

Accrued legal settlement of $2.1 million represents the payments due following settlement of a lawsuit which was an assumed liability as part of a 2024 acquisition transaction and is further discussed in Note 15. Commitments and Contingencies.

**11. Debt**

At March 31, 2026 and December 31, 2025, debt consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
| **Convertible Notes *(in thousands)*** | **2026** | **2025** |
| Secured convertible notes | $6589 | $7432 |
| Discount on senior secured convertible notes | (2309) | (3979) |
| June 2025 convertible preferred note | 815 | 788 |
| Discount on June 2025 convertible preferred note | (43) | (52) |
| Remainder notes recorded at fair value | 4538 | 4314 |
| Related party convertible notes | 220 | 215 |
| Other convertible notes recorded at fair value | - | 933 |
| &nbsp;&nbsp;Total convertible notes payable | 9810 | 9651 |
| Less: current portion | (8757) | (6913) |
| Convertible notes payable - long-term | 1053 | $2738 |
| **Loans Payable *(in thousands)*** |  |  |
| Promissory notes - related parties | 1850 | 2190 |
| Term loan, net of discount | 1968 | 2674 |
| Working capital facility | 1387 | 1684 |
| Other notes payable | 6098 | 4462 |
| Discount on other notes payable | (258) | (393) |
| Total loans payable | 11045 | 10617 |
| Less: current portion | (7543) | (8823) |
| Loans payable - long-term | $3502 | $1794 |

---

***Secured Convertible Notes***

On January 28, 2025, the Company entered into a Securities Purchase Agreement (the "January 2025 SPA") with an accredited investor (the "Investor"). Pursuant to the January 2025 SPA, the Company sold and the Investor purchased, (a) a senior secured convertible note (the "January 2025 Convertible Note") in the amount of $3.3 million and warrants to purchase 6,742 shares of the Company's common stock, (b) Class A Incremental Warrants to purchase up to $13.0 million in senior secured convertible notes ("Class A Incremental Notes), and (c) Class B Incremental Warrants to purchase up to $20.0 million in senior secured convertible notes ("Class B Incremental Notes").

The January 2025 Convertible Note and the Class A Incremental Notes carry a 10.0% original issue discount and accrue interest at a

------

rate of 12.0% per annum, subject to adjustment from time to time as set forth in the respective notes. The January 2025 Convertible Note was convertible (in whole or in part) at any time prior to the Maturity Date into the number of shares of Common Stock equal to (x) 110% of the sum of (i) the portion of the principal amount of the January 2025 Convertible Notes to be converted or redeemed, (ii) accrued and unpaid Interest with respect to such principal amount of the January 2025 Convertible Notes, (iii) the Make-Whole Amount, (iv) accrued and unpaid Late Charges with respect to such principal amount of the Note, Make-Whole Amount and Interest, and (v) any other unpaid amounts pursuant to the Transaction Documents, if any, divided by (y) an initial conversion price of $313.30 per share, subject to adjustment as provided in the January 2025 Convertible Notes agreement.

During the three months ended March 31, 2026, the Company issued additional Class A Incremental Notes with substantially the same terms as the January 2025 Convertible Note as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On January 6, 2026, a Class A Incremental Note in the principal amount of $1.2 million, an initial conversion price of $10.254 per share, a maturity date of January 6, 2027 and warrants to purchase 61,844 shares of Common Stock with an initial exercise price of $15.76 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On February 5, 2026, a Class A Incremental Note in the principal amount of $0.6 million, with an initial conversion price of $4.51 per share, a maturity date of February 5, 2027 and warrants to purchase 68,116 shares of Common Stock at an initial exercise price of $6.9316 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On February 9, 2026, a Class A Incremental Note in the principal amount of $0.1 million, with an initial conversion price of $4.5 per share, a maturity date of February 9, 2027 and warrants to purchase 16,009 shares of Common Stock at an initial exercise price of $6.9316 per share.

In connection with the Ergatta Acquisition, the Investor agreed to subordinate its security interest in the Company's assets to that of the holders of the Ergatta Note, as defined below. During the three months ended March 31, 2026, the Investor converted previously issued Class A Incremental Notes with an aggregate principal balance, including accrued interest, in the amount of $2.9 million into 909,625 shares of common stock, and the Company recorded a loss on extinguishment of debt of $2.8 million. In connection with the convertibility features contained in and warrants issued in connection with the issuance of the Senior Secured Notes, the Company recognized aggregate derivative liabilities in the amount of $0.4 million and aggregate warrant liabilities in the amount of $0.4 million.

During the three months ended March 31, 2025, the Investor converted a total of $2.0 million owed pursuant to the January 2025 Convertible Notes into a total of 8,269 shares of Common Stock and the Company recorded a gain on extinguishment of debt of $0.7 million. During the three months ended March 31, 2025 the Company issued an additional Class A Incremental Note in the principal amount of $4.0 million and between March 31, 2025 and December 31, 2025 the Company issued additional Class A Incremental Notes with an aggregate principal amount of $7.2 million.

Interest recognized on the Secured Convertible Notes is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Contractual interest expense | $223 | $726 |
| Amortization of debt issuance costs | 872 | 330 |
| Total | $1095 | $1056 |

---

***June 2025 Convertible Preferred Note***

On June 4, 2025, the Company issued a convertible promissory note in the principal amount of $0.7 million with an original issue discount of 10.0% to an accredited investor (the "June 2025 Convertible Preferred Note"). The June 2025 Convertible Preferred Note has a maturity date of June 4, 2027 and accrues interest at a rate of 15.0% per annum.

The carrying value of the June 2025 Convertible Preferred Note as of March 31, 2026 and December 31, 2025 was $0.8 million and $0.7 million, respectively. Interest expense recognized on the June 2025 Convertible Preferred Note was approximately $26,000 for the three months ended March 31, 2026.

***Remainder Notes***

In connection with the sale of the Company's FET and other collateral tokens in October and December of 2025, the Company issued the Remainder Notes to ATW Partners and DWF Labs in the principal amount of $3.0 million and $4.5 million, respectively. The Remainder Notes issued to ATW and DWF have maturity dates of one year beyond their date of issuance and accrue interest at a rate of 12% per annum and are convertible into shares of Common Stock at initial conversion prices of $35.40 and $25.30 per share, respectively, subject to adjustment as provided under the terms of the notes. The Company elected the fair value option for the Remainder

------

Notes, and the aggregate fair value for these notes as of March 31, 2026 and December 31, 2025 was $4.5 million and $4.3 million, respectively. As a result, the Company recognized a loss on the change in fair value of these notes in the amount of $0.2 million for the three months ended March 31, 2026.

***Related Party Convertible Notes***

On February 18, 2020, the Company entered into a $0.1 million note with interest at the rate of 12.0% per annum and a maturity date of February 18, 2021. The note was amended in January 2024 to include a conversion provision whereby at any time while outstanding the lender has the right to convert any outstanding and unpaid principal and accrued interest of the note into shares of the Company's Series A Preferred Stock at a conversion price of $38.50 per share. The total outstanding balance, including accrued interest, at March 31, 2026 and December 31, 2025 was $0.2 million.

***Other Convertible Notes***

On February 1, 2024, the Company entered into a Senior Secured Convertible Promissory Note (the "February 2024 Convertible Note") with Treadway Holdings LLC ("Treadway"), a lender, in the aggregate principal amount of $6.0 million, which is convertible into shares of Common Stock. The Note accrues interest at a rate of 2.0% per month.

The original maturity date of the February 2024 Convertible Note was December 15, 2024. The February 2024 Convertible Note is convertible (in whole or in part) at any time prior to the Maturity Date into the number of shares of Common Stock equal to the quotient resulting by dividing the outstanding principal balance of the February 2024 Convertible Note to be converted by an initial conversion price of $800,000.00 per share. In November 2024, the Company and Treadway entered into an Amended and Restated Senior Secured Convertible Promissory Note (the "Amended and Restated Note") that amended and restated the February 2024 Convertible Note in its entirety. The Amended and Restated Note had a principal amount of $4.0 million. Pursuant to the Amended and Restated Note, the conversion price of the February 2024 Convertible Note was changed to $479.00 per share (the Common Stock's Nasdaq Official Closing Price (as reflected on Nasdaq.com) on November 11, 2024. The Company elected the fair value option for the February 2024 Convertible Notes under ASC 825, Financial Instruments, with changes in fair value recorded in earnings each reporting period.

On December 13, 2024, the Company and Treadway entered into a Letter Agreement (the "Letter Agreement") that, among other things, extended the Maturity Date to January 14, 2025. On January 14, 2025, Treadway sold the Amended and Restated Note to Woodway USA, Inc. ("Woodway"), a customer of the Company. On March 3, 2025, Woodway sold the Amended and Restated Note to TR Opportunities II LLC (the "Current Holder"). On April 18, 2025, the Company and the Current Holder entered into a Letter Agreement to lower the conversion price to $110.00 (a premium to the closing price of the Common Stock on April 17, 2025). On August 8, 2025, the Company and the Current Holder entered into a Letter Agreement to lower the conversion price to $55.00 (a premium to the closing price of the Common Stock on August 7, 2025). On September 26, 2025, the Company entered into an exchange agreement (the "Exchange Agreement") with the Current Holder, pursuant to which the Current Holder and the Company exchanged the February 2024 Convertible Note for a Class B Incremental Note in an aggregate principal amount of $2.2 million (the "September 2025 Exchange Note").

The September 2025 Exchange Note accrued interest at a rate of 12% per annum, subject to adjustment from time to time as set forth in the September Exchange Note. The maturity date of the September Exchange Note was January 30, 2026. On November 24, 2025, the Company and the Current Holder amended the September 2025 Exchange Note to extend the maturity date to September 26, 2027.

The September 2025 Exchange Note was convertible (in whole or in part) at any time prior to the Maturity Date into the number of shares of Common Stock equal to (x) 110% of the sum of (i) the portion of the principal amount of the September 2025 Exchange Note to be converted or redeemed, (ii) accrued and unpaid Interest with respect to such principal amount of the September Exchange Note, (iii) the Make-Whole Amount (as defined in the September 2025 Exchange Note), (iv) accrued and unpaid Late Charges (as defined in the September Exchange Note) with respect to such principal amount of the September Exchange Note, Make-Whole Amount and Interest, and (v) any other unpaid amounts pursuant to the transaction documents, if any (the "Conversion Amount"), divided by (y) the conversion price of $55.00, subject to adjustment as provided in the September Exchange Note.

The September 2025 Exchange Note is also convertible (each, an "Alternate Conversion") into shares of Common Stock at a conversion rate equal to the quotient of (x) the Conversion Amount, divided by (y) the Alternate Conversion Price (as defined below); provided, that if an event of default has occurred and is continuing, the September 2025 Exchange Note is convertible at a conversion rate equal to the quotient of (x) 120% of the Conversion Amount, divided by (y) the Alternate Conversion Price. The "Alternate Conversion Price" means the lower of (i) the applicable conversion price as in effect on the date of the Alternate Conversion, and (ii) the greater of (A) 118%, or, if an event of default has occurred and is continuing, 85%, of the lowest VWAP of the Common Stock during the ten consecutive trading day period ending and including the trading day immediately preceding the delivery of the applicable conversion notice, and (B) the Floor Price (as defined in the September Exchange Note).

The fair value of this note was $0.9 million as of December 31, 2025. In January of 2026, the note was converted into 217,791 shares

------

of common stock, and the Company recognized a loss on change in fair value of this note of $1.1 million for the three months ended March 31, 2026.

***Promissory Notes - Related Parties***

On March 5, 2025, the Company entered into an agreement to settle outstanding liabilities with its former legal counsel by issuing to them an unsecured promissory note in the principal amount of $3.9 million which had a maturity date of October 15, 2025 and accrued interest at a rate of 12% per annum. The note was not repaid on its scheduled maturity date. Total interest expense of $0.4 million was recorded in the consolidated statement of operations through November 7, 2025 and the total outstanding principal balance including accrued interest as of that date was $4.3 million.

On November 7, 2025, the Company's former legal counsel sold 50% of this note, including accrued interest, to Woodway, an unrelated party (the "New Woodway Note"). On December 29, 2025, the Company's former legal counsel sold the remaining 50% of this note in the amount of $2.2 million, including accrued interest, to two related parties of the Company, and this amount was outstanding as of December 31, 2025. In February of 2026, one of these related parties transferred their note to two other related parties in equal amounts of $0.6 million. On February 26, 2026, these two related parties each exchanged $0.2 million of principal for 44,000 shares of common stock, for a total of exchange of $0.4 million of principal for 88,000 shares of common stock, and the Company recognized an aggregate gain on extinguishment of debt in the amount of $0.2 million.

***Term Loan***

On February 1, 2024, the Company entered into a Credit Agreement (the "Term Loan") with Vertical Investors LLC, (the "Lender") pursuant to which the Company agreed to borrow from the Lender a term loan in the aggregate principal amount of approximately $8.0 million. The term loan bears interest at Daily Simple Secured Overnight Financing Rate ("SOFR-Based Rate"), and the Company has a guarantee fee of $2.3 million due on the maturity date. The guarantee fee was treated as a debt discount and accreted through interest expense through the revised maturity date of December 31, 2025. On March 29, 2024, the Company issued 1,500,000 shares of the Company's Series A Convertible Preferred Stock to the Lender in exchange for reduction of outstanding debt of $3.0 million.

On April 24, 2024, (the "Effective Date") the Company entered into a Loan Modification Agreement (the "Modification Agreement") with the Lender reducing the outstanding debt by $3.0 million and extending the maturity date to December 31, 2024, which was subsequently extended to December 31, 2025. As of the Effective Date, the outstanding principal amount of the Loan was approximately $5.0 million.

The carrying value of the Term Loan is as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Principal and interest | $- | $326 |
| Guarantee fees | 1968 | 2348 |
| Aggregate carrying value | $1968 | $2674 |

---

***Working Capital Facility***

In connection with the acquisition of Wattbike, the Company assumed the obligations under a working capital facility for a total of $2.1 million in principal and accrued interest as of the date of acquisition. The interest rate under the facility is 1,100 basis points above the Bank of England Base Rate. On July 1, 2025, the Company extended the facility to June 30, 2026, and the total commitment under the facility was reduced to $2.7 million. For the three months ended March 31, 2026, the Company incurred interest and fees totaling $0.1 million, all of which were paid-in-kind. The outstanding balance on this facility as of March 31, 2026 and December 31, 2025 was $1.4 million and $1.7 million, respectively.

***Other Notes Payable*** 

As part of the purchase price for the Ergatta Acquisition, the Company issued a senior secured note (the "Ergatta Note") to the sellers in the principal amount of $1.9 million. The principal balance includes a working capital adjustment under the terms set forth in the Merger Agreement. The Ergatta note accrues interest at a rate of 5% per annum, has a maturity date of April 30, 2027, and is secured by substantially all of the assets of the Company.

As previously discussed, on November 7, 2025, Woodway purchased the New Woodway Note from the Company's former legal counsel in the principal amount of $2.1 million. The New Woodway Note accrues interest at a rate of 12% per annum and has a maturity date of November 6, 2026. The outstanding balance on the New Woodway Note, including accrued interest, as of March 31, 2026 and December 31, 2025 was $2.0 million.

------

On May 21, 2025, the Company issued an unsecured promissory note in the principal amount of $2.0 million to Woodway (the "May 2025 Woodway Note"). On February 27, 2026, Woodway exchanged $0.4 million of principal on this note for 88,000 shares of Common Stock, and the Company recorded a gain on the extinguishment of debt in the amount of $0.2 million. The carrying value of the May 2025 Woodway Note as of March 31, 2026 and December 31, 2025 was $1.6 million and $1.8 million, respectively.

On May 1, 2025, the Company entered into an agreement to settle outstanding liabilities with a third-party by issuing to the third-party an unsecured promissory note in the principal amount of $0.5 million which has a maturity date of May 1, 2026 and accrues interest at a rate of 5% per annum. The total outstanding principal balance including accrued interest as of March 31, 2026 and December 31, 2025 was $0.3 million.

Scheduled maturities on the Company's outstanding indebtedness as of March 31, 2026 is as follows:

---

| | | |
|:---|:---|:---|
| **Fiscal Years Ending December 31,** | **Fiscal Years Ending December 31,** |  |
| *(in thousands)* | **Convertible Notes** | **Loans Payable** |
| 2026 (remaining) | $7760 | $6822 |
| 2027 | 1769 | 4223 |
| 2028 | 281 | - |
| Total | $9810 | $11045 |

---

**12. Warrants**

The following is a schedule of changes in warrants issued and outstanding from December 31, 2025 to March 31, 2026:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Outstanding as of** |  |  |  | **Outstanding as of** |
|  | **December 31, 2025** | **Issued** | **Exercised** | **Canceled** | **March 31, 2026** |
| February 2024 Warrants | 7 |  |  |  | 7 |
| Woodway February 2024 Warrants | 2 |  |  |  | 2 |
| Registered Direct Placement Agent Warrants | 1 |  |  |  | 1 |
| Registered Direct Offering Warrants | 14 |  |  |  | 14 |
| Best Efforts Offering A-1 Warrants | 284 |  |  |  | 284 |
| Best Efforts Offering A-2 Warrants | 284 |  |  |  | 284 |
| Best Efforts Placement Agent Warrants | 21 |  |  |  | 21 |
| January 2025 Warrants | 4897 |  |  |  | 4897 |
| Woodway May 2025 Warrants | 4000 |  |  |  | 4000 |
| Class A Incremental Notes Warrants | 113067 | 145969 |  |  | 259036 |
| Total Common Stock Purchase Warrants | 122577 | 145969 |  |  | 268546 |

---

The warrants are classified as other long-term liabilities within the condensed consolidated balance sheets and are carried at fair value, with changes in fair value recorded in earnings.

*Class A Incremental Notes Warrants*

In connection with the January 28, 2025 Securities Purchase Agreement (see Note 11), the Company issued warrants to purchase an aggregate of 145,969 shares of Common Stock during the three months ended March 31, 2026 with initial exercise prices ranging from $4.51 per share to $10.254 per share. The warrants are exercisable for seven years after the issuance date and are subject to customary adjustments for stock dividends, stock splits, issuances of additional shares of common stock.

*January 2025 Warrants*

On January 28, 2025, the Company issued warrants to purchase 6,742 shares of common stock with an initial exercise price of $94.57 per share. The warrants may be exercised during the period commencing January 28, 2025 and ending January 28, 2032. The warrant exercise price is subject to customary adjustments for stock dividends, stock splits, issuances of additional shares of common stock. On July 7, 2025, the Company entered into an inducement offer letter agreement and agreed to exercise part of the January 2025 Warrants of 1,845 shares at an exercise price of $54.20 per share.

**13. Fair Value Measurements**

The Company's financial instruments consist of derivatives, convertible notes held at fair value, and warrants. Assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 were as follows:

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Level 1** | **Level 2** | **Level 3** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| **Assets** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $4738 | $— | $— | $512 | $— | $— |
| Total | $4738 | $— | $— | $512 | $— | $— |
| **Liabilities** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | $— | $— | $1011 | $— | $— | $243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series D convertible preferred stock |  |  | $7859 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration |  |  | 1613 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible notes |  |  | 4538 |  |  | 5247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrants |  |  | 169 |  |  | 408 |
| Total | $— | $— | $15190 | $— | $— | $5898 |

---

During the three months ended March 31, 2026, there were no transfers between Level 1 and Level 2, nor into and out of Level 3. The carrying values of the Company's prepaid expenses and other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities.

The following summarizes the activity for the Company Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2026.

***Derivatives***

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| | |
|:---|:---|
| ***(in thousands)*** | **Class A Incremental Notes Derivative** |
| Fair value at December 31, 2025 | $243 |
| Issuance of derivatives | 441 |
| Change in estimated fair value of derivatives | 327 |
| Fair value at March 31, 2026 | $1011 |

---

The Company recorded the derivatives as a derivative asset or liability in the Company's condensed consolidated balance sheet in accordance with FASB ASC 815, Derivatives and Hedging. For the outstanding derivatives as of March 31, 2026 and December 31, 2025, the fair value of the derivatives were determined using a Monte Carlo simulation. The Monte Carlo Simulation valuation model incorporates assumptions as to stock price volatility, discount rate, dividend rate and risk-free interest rate.

The following table outlines the key inputs for the Monte Carlo Simulation models:

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| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| Weighted-average risk-free interest rate | 3.66% - 3.76% | 3.45% - 3.51% |
| Weighted-average expected term (in years) | 0.47 - 2.41 | 0.72 - 2.65 |
| Weighted-average expected volatility | 95.0% | 95.0% |
| Expected dividend yield | —% | —% |

---

***Convertible Notes***

*September 2025 Exchange Note*

The Company entered into a convertible note arrangement in February 2024. The Company elected the fair value option for this note under ASC 825, Financial Instruments, with changes in fair value recorded in earnings each reporting period. During the three months ended March 31, 2026, the entire remaining principal and interest balance was converted into shares of Common Stock and the Company recorded a change in fair value for the difference between the $0.9 million fair value as of December 31, 2025 and the fair value of the Common Stock issued.

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---

| | |
|:---|:---|
|  | **Sep-25** |
| ***(in thousands)*** | **Exchange Note** |
| Fair value at December 31, 2025 | $933 |
| Conversion to common stock | (2059) |
| Change in estimated fair value of convertible notes | 1126 |
| Fair value at March 31, 2026 | $- |

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*Remainder Notes*

The Company also elected the fair value option for the Remainder Notes (see Note 11). These notes were valued using a Monte Carlo Simulation model using a discount rate of 32%, volatility of 70% and a risk free rate of 3.68% as of March 31, 2026.

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| | |
|:---|:---|
| ***(in thousands)*** | **Remainder Notes** |
| Fair value at December 31, 2025 | $4314 |
| Change in estimated fair value of convertible notes | 224 |
| Fair value at March 31, 2026 | $4538 |

---

*January 2025 Exchange Notes*

On February 4, 2025, the Company and the Exchange Agreement Investor entered into an Exchange Agreement (the "Exchange Agreement"), pursuant to which the Company and the Exchange Agreement Investor exchanged the Former Principal Stockholder Notes for five new secured promissory notes of the Company secured by the Company's assets (the "January 2025 Exchange Notes"). The amendment to the Note represents the addition of a substantive conversion feature and as a result the Company recorded a gain on extinguishment included in condensed consolidated statement of stockholders' equity. The Company elected the fair value option for the January 2025 Exchange Notes under ASC 825, Financial Instruments, with changes in fair value recorded in earnings each reporting period. The fair value of the January 2025 Exchange Notes was determined using a discounted cash flow analysis at a discount rate of 16.3% on February 4, 2025. The January 2025 Exchange Notes, in the aggregate principal amount of $5.4 million were fully converted into 26,428 shares of Common Stock in February 2025.

---

| | |
|:---|:---|
|  | **January 2025** |
| ***(in thousands)*** | **Exchange Notes** |
| Carrying amount at February 4, 2025 | $5380 |
| Conversion to common stock | (5391) |
| Gain on extinguishment of debt with related party | (279) |
| Change in estimated fair value of convertible notes | 290 |
| Fair value at March 31, 2025 | $— |

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***Warrants***

The following table summarizes the activity for the Company Level 3 warrant liabilities measured at fair value on a recurring basis for the three months ended March 31, 2026:

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| | |
|:---|:---|
| ***(in thousands)*** | **Class A Incremental Notes Warrants** |
| Fair value at December 31, 2025 | $408 |
| Issuance of warrants | 428 |
| Change in estimated fair value of warrants | (667) |
| Fair value at March 31, 2026 | $169 |

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The following table outlines the key inputs for the Black-Scholes option-pricing models:

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| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| Weighted-average risk-free interest rate | 4.0% - 4.06% | 3.7% - 4.2% |
| Weighted-average expected term (in years) | 6.32 - 6.86 | 0.26 - 9.52 |
| Weighted-average expected volatility | 100.0% | 150.0% |
| Expected dividend yield | —% | —% |

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***Series D Convertible Preferred Stock***

In connection with the acquisition of Ergatta (see Note 23) on March 11, 2026, the Company issued the Series D Convertible Preferred Stock, which was initially valued $7.7 million. The fair value was estimated using a Monte-Carlo simulation model with a risk-free rate of 3.64% and an annual equity volatility of 100%. The following table summarizes the activity for preferred stock measured at fair value on a recurring basis for the three months ended March 31, 2026:

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| | |
|:---|:---|
| ***(in thousands)*** | **Series D Preferred Stock** |
| Fair value at December 31, 2025 | $— |
| Ergatta acquisition | 7676 |
| Change in estimated fair value of preferred stock | 37 |
| Stock-based compensation | 146 |
| Fair value at March 31, 2026 | $7859 |

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***Accrued Earnout***

The Merger Agreement with Ergatta provides for additional cash consideration payable to the sellers on April 30, 2027 of up to $3.5 million based on the excess of 2026 Free Cash Flow (see Note 23) over $1.75 million, multiplied by 2. The fair value of the contingent consideration as of March 31, 2026 was estimated using a Monte-Carlo simulation model under a risk-neutral basis. The following table summarizes the activity for the contingent consideration measured at fair value on a recurring basis for the three months ended March 31, 2026:

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| | |
|:---|:---|
| ***(in thousands)*** | **Accrued Earnout** |
| Fair value at December 31, 2025 | $— |
| Ergatta acquistion on March 11, 2026 | 1587 |
| Change in estimated fair value of contingent consideration | 26 |
| Fair value at March 31, 2026 | $1613 |

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**14. Leases**

***Lease Obligations***

The Company has made certain assumptions and judgments when applying ASC 842 including the adoption of the package of practical expedients available for transition. The practical expedients allowed the Company to not reassess (i) whether expired or existing contracts contained leases, (ii) lease classification for expired or existing leases and (iii) previously capitalized initial direct costs. The Company also elected not to recognize right-of-use assets and lease liabilities for short-term leases (leases with a term of twelve months or less).

Operating lease arrangements primarily consist of office and warehouse leases expiring at various years through 2028. The facility leases have original lease terms of two to seven years and contain options to extend the lease up to 5 years or terminate the lease. Options to extend are included in leased right-of-use assets and lease liabilities in the condensed consolidated balance sheet when the Company is reasonably certain it will renew the underlying leases. The Company has elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments.

As of March 31, 2026 and December 31, 2025, the weighted average discount rate for operating leases was 6.42% and the weighted average remaining lease term for operating leases was 2.2 and 2.4 years, respectively.

The Company has entered into various short-term operating leases for office and warehouse space, with an initial term of twelve months or less. These short-term leases are not recorded on the Company's condensed consolidated balance sheets. The components of lease expense and other information for three months ended March 31, 2026 and 2025 were as follows.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease costs | $36 | $82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Variable lease costs | 13 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term lease costs | 1 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total lease costs | 50 | 128 |
| Other information: |  |  |
| &nbsp;&nbsp;Cash paid for amounts included in the measurement of operating lease liability | $50 | $118 |

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The following represents the Company's minimum annual rental payments under operating leases for each of the next five years and thereafter:

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| | |
|:---|:---|
| **Fiscal Year Ending December 31,** | **Operating** |
|  | **(in thousands)** |
| 2026 (remaining) | 115 |
| 2027 | 145 |
| 2028 | 63 |
| 2029 |  |
| Thereafter |  |
| Total future minimum lease payments | 323 |
| Less: imputed interest | (28) |
| Present value of operating lease liability | $295 |
| Current portion of lease liability | 143 |
| Non-current portion of lease liability | 152 |
| Present value of operating lease liability | $295 |

---

**15. Commitments and Contingencies**

***Royalty Agreement***

In 2017, the Company entered into a royalty agreement with Fuseproject and agreed to pay 3% of cumulative FORME net sales up to $5.0 million and 1% of cumulative FORME net sales above $5.0 million, up to a maximum total royalty of $1.0 million. Regardless of the level of cumulative net sales, a guaranteed minimum payment of $0.2 million shall be paid in the first 12 months after the product's initial retail release as an advance towards the royalty payments which was accrued as of March 31, 2026 and December 31, 2025. The Company recorded royalty expense of $0 and $5,000 for the three months ended March 31, 2026 and 2025, respectively.

***Legal Proceedings***

On March 7, 2024, a petition was filed by Tung Keng Enterprise Co., Ltd. d/b/a DK City Co., Ltd. ("DK City") against CLMBR, Inc. and the Company in the United States District Court for the District of Colorado to enforce a monetary arbitration award of approximately $2.25 million against CLMBR, Inc. (the "Petition"). The Company was not involved in that prior arbitration, which involved alleged breaches of an equipment manufacturing agreement between CLMBR, Inc. and DK City. On June 25, 2024, CLMBR, Inc. and the Company collectively resolved the dispute via a Confidential Settlement Agreement and Mutual Release with DK City. Pursuant to that agreement, the Company was required to make certain payments to DK City, CLMBR, Inc. and the Company would be released from liability, and the Petition would be voluntarily dismissed without prejudice. The Company subsequently defaulted on this agreement due to not complying with the payment plan, and on September 22, 2025 a new petition was filed alleging breach of the negotiated settlement. The complaint seeks damages in the amount of $2.0 million, plus statutory interest and attorneys' fees. The Company has admitted liability, and the parties have requested a Magistrate Judge settlement conference. The plaintiff has filed a motion for summary judgment, but the parties are engaged in settlement discussions.

The total amount outstanding as of March 31, 2026 and December 31, 2025 was $2.1 million, including default interest of $0.1 million, and is reflected in Accrued Expenses and other current liabilities in the accompanying consolidated balance sheet.

On or about February 20, 2025, the Company was sued in the Superior Court of Massachusetts, Suffolk County, by one of its former financial services consultants ("the Plaintiff"), alleging a breach of an agreement between the parties for financial services Plaintiff allegedly provided to the Company. The dispute was fully resolved and on June 12, 2025, the parties filed a joint stipulation of dismissal with prejudice and the settlement amount was $2.2 million. The current portion of the total remaining payments as of March 31, 2026 and December 31, 2025 of $0.3 million is included in accrued expenses and other current liabilities and the non-current

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portion as of March 31, 2026 and December 31, 2025 of $1.7 million and $1.8 million, respectively, is included in other long-term liabilities in the condensed consolidated balance sheet.

The Company is involved in legal proceedings in the normal course of business. The Company currently believes that any ultimate liability arising out of such proceedings will not have a material adverse effect on the Company's financial position, results of operations or cash flows.

**16. Stockholders' Equity (Deficit)**

***Common Stock***

The Company's authorized Common Stock consisted of 900,000,000 shares at $0.0001 par value, as of March 31, 2026 and December 31, 2025. The issued and outstanding common stock was 2,057,018 shares and 307,516 shares as of March 31, 2026 and December 31, 2025, respectively.

During the three months ended March 31, 2026, the Company issued 290,000 shares of Common Stock from an At the Market offering, and received net proceeds of approximately $1.5 million.

On February 27, 2026, Woodway exchanged $0.4 million of principal on the May 2025 Woodway Note for 88,000 shares of Common Stock.

On February 26, 2026, a related party noteholder of the Company exchanged $0.2 million of principal for 44,000 shares of Common Stock. Also on February 26, 2026, another related party noteholder of the Company exchanged $0.2 million of principal for 44,000 shares of Common Stock.

Between February 17, 2026 and February 26, 2026 Vertical Investors, LLC exchanged $0.8 million of note principal and accrued interest for 156,118 shares of Common Stock.

In January of 2026, the Current Holder of the September 2025 Exchange Note converted the remaining $1.6 million of principal into 217,791 shares of Common Stock.

During the three months ended March 31, 2026, the holder of the Company's secured convertible notes converted an aggregate of $2.9 million of note principal into 909,625 shares of Common Stock in accordance with the terms of the secured convertible notes.

In February 2025, the Company issued 8,215 shares of Common Stock, par value $0.0001, from At the Market offering.

From January 2025 through March 2025, the Company issued 39,416 shares of Common Stock upon conversion of $8.6 million of convertible notes.

From January 2025 through March 2025, the Company issued 17,883 shares of Common Stock upon conversion of 100,000 shares of Series A Preferred Stock, 1,060,118 shares of Series B Preferred Stock and 2,801,250 shares of Series C Preferred Stock.

On March 20, 2026, the Company announced that its Board of Directors (the "Board") approved a stock repurchase program of up to $0.5 million, whereby the Company may repurchase shares of its Common Stock in the open market subject to market conditions, applicable securities laws, and the Company's policies governing insider transactions. As of March 31, 2026, no shares have been repurchased under this program.

***Preferred Stock***

In January 2024, the Board authorized the proposed issuance of shares of non-voting Series A and Series B convertible preferred stock. The Company's authorized preferred stock consists of 200,000,000 shares at $0.0001 par value. As of December 31, 2025, the Series A Certificate designated 10,000,000 shares of the Company's preferred stock as Series A Preferred Stock, the Series B Certificate designated 1,500,000 shares of the Company's preferred stock as Series B Preferred Stock, the Series C Certificate designated 5,000,000 shares of the Company's preferred stock as Series C Preferred Stock and the Series E Certificate designated 1,300,000 shares of the Company's authorized preferred stock as Series E Convertible Preferred Stock.

On March 31, 2026, the Company entered into a settlement agreement with the Lender under the Term Loan (see Note 11) valued at $2.2 million, which the Company settled through the issuance of 1,088,255 shares of Series C Preferred Stock. The shares of preferred stock were valued at $1.8 million and the Company recognized a gain on extinguishment of this liability in the amount of $0.4 million.

Upon the closing of the Ergatta Acquisition (see Note 23), the Company filed a certificate of designation with the Secretary of State of

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the State of Delaware, creating three new series of preferred stock designated as (i) Series D-1 Convertible Preferred Stock, par value $0.0001 per share ("Series D-1 Preferred Stock") and designating 4,750,000 shares thereof, (ii) Series D-2 Convertible Preferred Stock, par value $0.0001 per share ("Series D-2 Preferred Stock") and designating 1,000,000 shares thereof, and (iii) Series D-3 Convertible Preferred Stock, par value $0.0001 per share ("Series D-3 Preferred Stock," collectively with Series D-1 Preferred Stock and Series D-2 Preferred Stock, "Series D Preferred Stock") and designating 500,000 shares thereof. Series D Preferred Stock has no voting rights, other than any vote required by law or the Company's Certificate of Incorporation. Series D-1 Preferred Stock and Series D-2 Preferred Stock shall convert into shares of the Company's common stock, par value $0.0001 per share ("Common Stock") on May 3, 2027. Series D-3 Preferred Stock shall convert to shares of Common Stock on May 1, 2028. Conversion of the Series D Preferred Stock is subject to stockholder approval, and if such approval is not obtained, the Series D Preferred Stock will be redeemed for cash. As a result, and due to the variability in the number of shares of Common Stock that the Series D Preferred Stock is convertible into that is not based on the value of the Common Stock, the Series D Preferred Stock is reflected as a liability in the Company's condensed consolidated balance sheet as of March 31, 2026.

The remaining unissued shares of the Company's authorized preferred stock are undesignated.

On January 23, 2025 the Board declared a dividend on the shares of Series A Preferred Stock issued and outstanding as of the record date for such dividend, as a dividend in kind, in the form of 112,334 shares of Series A Preferred Stock. The Company issued 112,334 Dividend Shares on January 23, 2025.

On March 31, 2025, the Company issued 1,188,571 shares of the Company's Series C Preferred Stock as payment of the $2.4 million Net Trade Value as of that date pursuant to a Loss Restoration Agreement.

On January 23, 2025, the Board declared a dividend on the shares of Series C Preferred Stock issued and outstanding as of the record date for such dividend, as a dividend in kind, in the form of 126,515 shares of Series C Preferred Stock. The Company issued 126,515 Dividend Shares on January 23, 2025.

**17. Equity-Based Compensation**

***2023 and 2020 Equity Incentive Plan***

Presented below is a summary of the compensation cost recognized in the condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| ***(in thousands)*** | **2026** | **2025** |
| Research and development | $55 | $699 |
| Sales and marketing | - | - |
| General and administrative | 339 | 1390 |
| Total | $394 | $2089 |

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The table above includes approximately $0.1 million of compensation expense related to the Series D-2 and D-3 Preferred Stock issued in connection with the Ergatta Acquisition (see Note 23), and is reflected in General and administrative expense. For the three months ended March 31, 2026 and 2025, the Company recognized stock-based compensation expense of $0.4 million and $2.4 million, respectively, of which $0.0 million and $0.3 million, respectively, was capitalized as software costs.

During the three months ended March 31, 2026, the Company did not grant any shares under the 2023 and 2020 Plan. The Company has not granted any restricted stock or stock appreciation rights.

The following summary sets forth the stock option activity under the 2023 and 2020 Plan:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of options** | **Weighted average exercise price** | **Weighted average remaining contractual term (in years)** | **Aggregate intrinsic value (in thousands)** |
| **Outstanding as of December 31, 2025** | 7 | $100644 | 7.3 | $— |
| Granted |  | $— |  |  |
| Exercised |  | $— |  |  |
| Cancelled or forfeited |  | $— |  |  |
| **Outstanding as of March 31, 2026** | 7 | $100644 | 7.3 | $— |
| Options exercisable as of March 31, 2026 | 4 | $513794 | 7.2 | $— |
| Options unvested as of March 31, 2026 | 3 | $1738503 | 7.4 | $— |

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As of March 31, 2026 and December 31, 2025, the Company had $0.7 million and $0.9 million of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 0.2 years and 0.2 years, respectively.

**18. Concentration of Credit Risk and Major Customers and Vendors**

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company's cash and cash equivalents are maintained with high-quality financial institutions, the compositions and maturities of which are regularly monitored by management.

For the three months ended March 31, 2026, there were no customers representing greater than 10% of the Company's consolidated revenue. For the three months ended March 31, 2025, Woodway represented 71% of the Company's consolidated revenue.

At March 31, 2026, one customer represented 48% of the Company's consolidated accounts receivable. At December 31, 2025, this customer represented 47% of the Company's consolidated accounts receivable.

The Company had no vendors representing greater than 10% of total finished goods purchases for the three months ended March 31, 2026 and one vendor representing more than 10% of finished goods for the three months ended March 31, 2025.

**19. Benefit Plans**

The Company established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Matching contributions to the plan may be made at the discretion of the Board. During the three months ended March 31, 2026 and 2025, the Company did not make any contributions to the plan.

The Company contributes up to 5% of an employee's salary into personal pension funds held by individual employees under the laws of the United Kingdom. These personal pension funds are the responsibility of the individual employees. The Company's contribution to employee pension funds for the three months ended March 31, 2026 was approximately $27,000.

**20. Loss Per Share**

The computation of loss per share is as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| ***(in thousands, except share and per share amounts)*** |  |  |
| Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(10743) | $(6603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to common stockholders | $(10743) | $(6603) |
| Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common stock outstanding -<br> basic and diluted | 1049454 | 38041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss per share attributable to common<br> stockholders - basic and diluted | $(10.24) | $(173.58) |

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The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:

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| | | |
|:---|:---|:---|
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Warrants to purchase common stock | 268546 | 75821 |
| Series A Convertible Preferred Stock conversion to common stock | 229338 | 29847 |
| Series B Convertible Preferred Stock conversion to common stock | 2 | 3 |
| Series C Convertible Preferred Stock conversion to common stock | 16143 | 11515 |
| Notes payable conversion to common stock | 387914 | 44371 |
| Stock options to purchase common stock | 7 | 8 |
| Total | 901950 | 161565 |

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The Company's Series D Convertible Preferred Stock and Series E Convertible Preferred Stock are also potentially convertible into Common Stock, however the conversion price is unknown as of March 31, 2026.

**21. Related Party Transactions**

In the ordinary course of business, we may enter into transactions with directors, principal officers, their immediate families, and affiliated companies in which they are principal stockholders (commonly referred to as "related parties").

***Related Party Convertible Notes***

See Note 11 for discussion.

***Principal Stockholder Promissory Notes***

As further discussed in Note 11, On January 29, 2025, the Former Principal Stockholder assigned the Former Principal Stockholder Notes of $5.4 million to an accredited investor that is managed by an ATW Partners related entity (the "Exchange Agreement Investor") and the outstanding principal balance was $0 as of March 31, 2025.

***Other Related Party Transactions***

In 2017, the Company entered into a royalty agreement with Fuseproject and agreed to pay 3% of cumulative net FORME fitness product sales up to $5.0 million and 1% of cumulative net FORME fitness product sales above $5.0 million, up to a maximum total royalty of $1.0 million. Regardless of the level of cumulative net sales, a guaranteed minimum payment of $0.2 million shall be paid in the first 12 months after the products initial retail release as an advance towards the royalty payments which was accrued as of March 31, 2026. As of March 31, 2026 the Company has accrued $0.3 million in royalty payments. The Company recorded royalty expense of $0 and $5,000 for the three months ended March 31, 2026 and 2025, respectively.

**22. Supplemental Disclosure of Cash Flow Information**

Supplemental cash flow information for the three months ended March 31, 2026 and 2025 is as follows:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Supplemental Disclosure Of Cash Flow Information:** |  |  |
| Cash paid for Interest |  | 88 |
| **Non-Cash Investing and Financing Information:** |  |  |
| Property & equipment in accounts payable |  | 18 |
| Inventories in accounts payable and accrued expenses |  | 205 |
| Non-cash consideration for acquisition of Ergatta | 11335 |  |
| Issuance and offering costs in accounts payable and accrued expenses |  | 43 |
| Gain on extinguishment of debt with related party |  | 279 |
| Issuance of common stock upon conversion of convertible notes | 5868 | 5798 |
| Issuance of Series C Preferred Stock upon settlement of loss restoration agreement |  | 3127 |
| Issuance of warrants with convertible notes | 428 | 1213 |
| Issuance of embedded derivatives with convertible notes | 441 | 2104 |
| Series A Dividends Paid in Kind |  | 225 |
| Series C Dividends Paid in Kind |  | 253 |
| Non-cash settlement of debt through issuance of common stock | 832 |  |
| Stock-based compensation capitalized in intangible asset and other assets |  | 334 |

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**23. Acquisitions**

**Ergatta Acquisition**

On March 11, 2026, the Company completed the Ergatta Acquisition (see Note 1) for a total purchase price of approximately $13.4 million, consisting of (i) cash paid at closing of $2.1 million; (ii) a senior secured promissory note delivered at the Closing and maturing on April 30, 2027 in the amount of $1.9 million (which includes a working capital adjustment in accordance with the terms of the Merger Agreement); (iii) contingent consideration initially valued at $1.6 million payable on April 30, 2027, as provided by the calculations, formulas, and other procedures set forth in the Merger Agreement; (iv) assumption of post-closing Ergatta liabilities of $0.2 million; and (v) 4,749,974 shares of the Company's Series D-1 Preferred Stock (see Note 16).

At the closing, the Company entered into a registration rights agreement with the Securityholders' Representative, on behalf of the parties entitled to receive equity consideration under the Merger Agreement, pursuant to which the Company granted customary registration rights with respect to equity consideration issuable under the Merger Agreement.

The Acquisition was accounted for under the acquisition method of accounting under ASC 805, Business Combinations. Assets acquired and liabilities assumed were recorded in the condensed consolidated balance sheet at their estimated fair values as of March 11, 2026, with the remaining unallocated purchase price recorded as goodwill. The table below summarizes the consideration transferred to Ergatta shareholders on March 11, 2026:

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| | |
|:---|:---|
| **(in thousands)** | **Ergatta** |
| Cash | $2075 |
| Senior secured note | 1899 |
| Series D-1 preferred stock | 7676 |
| Contingent consideration | 1587 |
| Other liabilities assumed | 173 |
| Total consideration | $13410 |

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Ergatta is a connected fitness company with an emphasis on game-based fitness content. The Ergatta Acquisition was a strategic acquisition intended to help accelerate the Company's commercialization path and achieve immediate scale, resulting in a high growth, profitable platform that sells connected fitness equipment and digital fitness services across B2B and B2C channels.

The Series D-1 preferred stock was recorded at its estimated fair value and recognized as a long-term liability in the accompanying condensed consolidated balance sheet. Settlement of this liability is based on Ergatta's free cash flow, as defined below, and the settlement value will be a minimum of $5.25 million and a maximum of $9.5 million.

The purchase price allocation is preliminary and subject to change, including the valuation of intangible assets. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year after the acquisition date.

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| | |
|:---|:---|
| **(in thousands)** | **As of March 11, 2026** |
| Cash | $363 |
| Accounts receivable | 151 |
| Inventories | 664 |
| Prepaid expenses and other current assets | 338 |
| Vendor deposits | 740 |
| Property and equipment | 50 |
| Other assets | 13 |
| Intangible assets | 9800 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total assets acquired | $12119 |
| Accounts payable | (216) |
| Accrued expenses and other current liabilities | (305) |
| Deferred revenue | (3333) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total identifiable net assets acquired | 8265 |
| Goodwill | 5145 |
| Total identifiable net assets acquired and goodwill | 13410 |

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The identified intangible assets of $9.8 million are comprised of (i) software developed technology of $2.4 million that has an estimated useful life of 5 years, (ii) direct-to-consumer subscription of $5.3 million that has an estimated useful life of 2 years, (iii) license agreement of $1.3 million having an estimated useful life of 6 years; and (iv) trademarks and trade name of $0.8 million with an estimated useful life of 9 years. Significant assumptions utilized in the valuation of identified intangible assets were based on company specific information and projections which are not observable in the market and are thus considered Level 3 measurements as defined by U.S. GAAP. Estimated annual amortization expense related to these intangible assets for each of the next five fiscal years is included in Note 7.

*Earn Out*

As part of the Ergatta Acquisition, the sellers are entitled to receive a cash contingent payment on April 30, 2027 that is secured by the $1.9 million senior note previously discussed. The amount of the contingent payment is based on Ergatta's 2026 Free Cash Flow less $1.75 million multiplied by 2.0, with a maximum payment of $3.5 million. The fair value of this payment as of March 11, and March 31, 2026 is estimated to be $1.6 million. Additionally, the ultimate settlement of the Series D-1 Preferred Stock is contingent upon on Ergatta's 2026 Free Cash Flow, which is defined as earnings before interest, taxes, deprecation and amortization, stock-based compensation, other income/expense and certain mutually agreed-upon non-recurring charges, less capitalized software development expenses and other capital expenditures incurred in the ordinary course of business. The amount of the settlement associated with the Series D-1 Preferred Stock is expected to be between a minimum of $5.25 million and a maximum of $9.5M. "

The following unaudited pro forma summary presents condensed consolidated information of the Company including Ergatta and Wattbike, acquired on July 1, 2025, as if these acquisitions had occurred as of January 1, 2025, the earliest year presented herein:

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| | | |
|:---|:---|:---|
|  | **Proforma** | **Proforma** |
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
|  | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue | $7742 | $8531 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating Loss | (3876) | (6431) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Loss | (10739) | (7452) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss per share – basic and diluted | $(10.23) | $(195.90) |
| Weighted average common stock outstanding – basic<br> and diluted | 1049454 | 38041 |

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The unaudited pro forma consolidated results for the three months ended March 31, 2026 and 2025 were prepared using the acquisition method of accounting and are based on the historical financial information of Ergatta and the Company. The unaudited pro forma consolidated results incorporate historical financial information for all significant acquisitions pursuant to SEC regulations since January 1, 2025. The historical financial information has been adjusted to give effect to pro forma adjustments that are: (i) directly attributable to the acquisition, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results. The unaudited pro forma consolidated results are not necessarily indicative of what the Company's consolidated results of operations actually would have been had it completed these acquisitions on January 1, 2025.

The following unaudited condensed consolidated results of operations for Ergatta are included in the condensed consolidated statements of loss for the three months ended March 31, 2026.

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| | |
|:---|:---|
|  | **Three Months Ended March 31,** |
|  | **2026** |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue | $552 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating Loss | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net Loss | (182) |

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**24. Subsequent Events**

***Share Repurchases***

Between May 5, 2026 and May 15, 2026, the Company repurchased 88,568 shares of its Common Stock on the open market (see Note 16) for an aggregate purchase price of approximately $82,000.

***Conversion of Convertible Notes and Loans Payable***

On April 7, 2026, the Lender under the Company's term loan dated February 1, 2024 (see Note 11) converted $0.3 million of debt principal into 59,782 shares of Common Stock.

In April of 2026, the holder of one of the Company's senior convertible notes (see Note 11) converted approximately $0.2 million of principal and accrued interest into 214,136 shares of Common Stock.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes and other financial information included in Part I, Item 1. of this Form 10-Q, and together with our audited consolidated financial statements, the related notes thereto and other information set forth in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 31, 2026 (the "2025 10-K"). Historic results are not necessarily indicative of future results.*

**Cautionary Statement Regarding Forward-Looking Statements**

This Quarterly Report on Form 10-Q 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our future financial performance, including our expectations regarding our revenue, cost of revenue, gross profit, operating expenses, including changes in research and development, sales and marketing, and general and administrative expenses (as well as any components of the foregoing), and our ability to achieve and maintain profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our business model, growth strategy and our ability to effectively manage our growth, the factors which may affect our performance and the potential impact thereof and the potential significance and impact of our key operational and business metrics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•anticipated trends, growth rates, and challenges in our business and the markets in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our market opportunity, including potential or anticipated growth of the fitness and wellness industry, including the smart home gym and connected fitness sector of this industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our internal estimates as to our market opportunities, including our total addressable market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•market acceptance of our Connected Fitness hardware and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•beliefs and objectives for future operations, products, and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain and increase sales of our Ergatta water rowers, CLMBR vertical climbing machine ("CLMBR") and FORME Studio equipment and Wattbike fitness products, increase memberships to the Ergatta, Wattbike, CLMBR and FORME platforms, and expand our product and service offerings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to attract and retain qualified trainers, including personal trainers, and to contract with fitness instructors and other content production personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations regarding potential changes to our membership or pricing models or to our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our plans to expand our commercial and corporate wellness customer base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to develop new content, features, equipment, and other services to integrate with or complement the Ergatta, CLMBR, FORME and Wattbike platforms and bring them to market in a timely manner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations regarding content costs included in our products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effects of seasonal trends on our results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations concerning relationships with third-party manufacturers, suppliers, content providers, ecosystem partners, and other third parties, as well as current and potential strategic relationships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations regarding our manufacturing and supply chain, including any defects or warranty claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain, protect, and enhance our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our international expansion plans and ability to continue to expand internationally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effects of increased competition in our markets and our ability to compete effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to stay in compliance with laws and regulations that currently apply or become applicable to our business both in the United States and internationally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•economic and industry trends, projected growth, or trend analysis;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our liquidity position, capital requirements and need for additional financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations regarding the impact of general economic conditions and geopolitical events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the imposition of new tariffs or changes in existing tariff rates.

These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include those discussed below and under Item 1A. Risk Factors, as well as the risks discussed in the Company's other filings with the Securities and Exchange Commission (the "SEC"). All forward-looking statements set forth in this Quarterly Report 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. Forward-looking statements set forth in this Quarterly Report 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. You should carefully read the "Risk Factors" section to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements.

## Overview
Interactive Strength Inc. is the parent company of four leading brands serving the commercial and at-home markets with specialty fitness equipment and virtual training: Wattbike, Ergatta, CLMBR and FORME. Wattbike, acquired in July of 2025, offers a range of high-performance indoor bikes that set the global standard in cycling. Known for unmatched accuracy, realistic ride feel, and advanced performance tracking, Wattbike is trusted by elite athletes, national teams, and fitness enthusiasts around the world. Ergatta, acquired in March 2026, is a game-based connected fitness company. CLMBR offers a premium vertical climbing experience through its patented open-frame design and immersive touchscreen, delivering a high-intensity, low-impact workout that's both efficient and effective. FORME delivers strength, mobility, and recovery training through immersive content, performance-grade hardware, and expert coaching. Its wall-mounted systems include the Studio, a smart fitness mirror for guided programming and live 1:1 personal training, and the Lift, which adds smart resistance cable training—ideal for high-performance environments and sport-specific development. The combination of technology with expert training leads to better outcomes for both consumers and trainers alike. Wattbike, CLMBR and FORME each offer unique fitness solutions for both the commercial and at-home markets.

Key milestones in our growth history include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•May 2017 – Interactive Strength Inc. founded

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•July 2021 – Commenced commercial delivery of FORME Studio (fitness mirror), our first connected fitness hardware product

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•July 2022 – Live 1:1 personal training service launched

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•August 2022 – Commenced commercial delivery of FORME Studio Lift (fitness mirror and cable-based digital resistance)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•April 2023 – Interactive Strength went public on NASDAQ with ticker symbol "TRNR"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•February 2024 – Acquired substantially all of the assets of CLMBR, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•July 2025 - Acquired all of the outstanding equity interests of Wattbike (Holdings) Limited ("Wattbike").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•March 2026 - Acquired all of the outstanding equity interests of Ergatta, Inc. ("Ergatta")

Our revenue is primarily generated from the sale of our connected fitness hardware products and associated recurring membership revenue.

During the three months ended March 31, 2026 and 2025, we generated total revenue of $5.1 million and $1.4 million, respectively, and incurred net losses of $10.7 million and $6.6 million, respectively. As we generated recurring net losses and negative operating cash flow since inception, we have funded our operations primarily with gross proceeds from the issuance of convertible notes, the issuance of promissory notes to unrelated and related parties, and the issuance of common stock.

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**Business Model and Growth Strategy**

***Acquire complementary businesses that generate attractive synergies*** 

We acquired CLMBR, Inc. in February 2024 and Wattbike on July 1, 2025. In addition, on March 11, 2026, we completed the acquisition of Ergatta, a connected fitness company that is considered a pioneer in game-based connected fitness. We expect that we will be able to acquire additional revenue-generating businesses, which would generate higher earnings and cashflows through synergies with our existing business. Our team brings significant experience with M&A transactions and we are one of the few companies in our industry with publicly traded equity securities, which we believe makes us an attractive acquirer.

***Leverage well established equipment distributors to scale in commercial channels***

We have high value partnerships with numerous fitness equipment distributors around the world, including Woodway, to sell CLMBR, FORME and Wattbike products into a variety of commercial environments. These relationships allow us to leverage the sales knowledge, relationships and specialization of third parties to accelerate our sales initiatives. Importantly, this construct allows us to make the vast majority of our sales related expenses variable, as we typically pay commissions only when units are sold.

***Expand into new geographies***

We intend to expand the international reach of our existing brands by leveraging in-market relationships and sales infrastructure across the brands in our portfolio. For example, with Wattbike, which is based in the United Kingdom, we are currently evaluating potential expansion of that brand in the US, where FORME, CLMBR and Ergatta have well established routes to market in both commercial and residential markets, although we have not yet made any definitive plans regarding such expansion or the potential timing thereof. We plan to pursue disciplined international expansion by targeting countries with sound macroeconomic conditions, favorable growth trends and stable regulatory environments, and importantly, those where we have footholds and low risk routes to market through our existing brand relationships and in market presence.

***Build out partnership ecosystem***

We intend to continue to build our strategic partner ecosystem with a focus on relationships that enable us to extend our platform to new audiences. We are pursuing opportunities in a number of attractive verticals, including sports, physical therapy and rehabilitation, and telemedicine. We are continuously identifying and evaluating opportunities to apply our coaching know-how in new and innovative ways to expand our reach and impact.

***Expand B2B Channel*** 

We intend to expand our sales and marketing efforts into a variety of light commercial settings, including multifamily buildings, hotels, country clubs, universities and performance centers.

**Factors Affecting Our Performance**

Our financial condition and results of operations have been, and will continue to be, affected by a number of factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•We have a limited operating history, and our past financial results may not be a reliable indicator of our ability to successfully establish our product and service offerings in the marketplace, or of our future performance, and our revenue growth rate is likely to slow as our business matures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our membership revenue is largely dependent on our ability to sell our Ergatta, Wattbike, CLMBR and FORME Studio equipment and if sales of such equipment decline, our membership revenue would decline, and it would materially and negatively affect our future revenue and results of operations. Similarly, we may be unable to attract and retain members, which could have an adverse effect on our business and rate of growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If we fail to compete successfully against existing and future competitors, we may fail to obtain a meaningful market share, which in turn would harm our business, financial condition, and results of operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Increases in component and equipment costs, long lead times, supply shortages, and supply changes could disrupt our supply chain and negatively impact our business, financial condition, and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The sufficiency of our liquidity and capital resources, and our ability to obtain additional funding as needed for our operations and to execute on our strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Our ability to execute or realize the anticipated benefits of any strategic acquisition or transaction.

We have experienced, and expect to continue to experience, some disruptions to parts of our supply chain, including procuring necessary components or parts in a timely fashion, with suppliers increasing lead times or placing products on allocation and raising prices. In addition, disruptions to commercial transportation infrastructure have increased delivery times for materials and components or parts for our fitness equipment, and has impacted, and could in the future impact, our ability to timely deliver our products to customers. While these supply chain disruptions have resulted in operational challenges, including extended customer order lead times and periodic product allocation, they have not had a material adverse effect on our revenue or liquidity or capital resources for the three months ended March 31, 2026, and we have not implemented any significant mitigation efforts to date as a result. However, we cannot predict the impact to us of any future or prolonged supply chain disruptions or any mitigation efforts we may take going forward. For example, as a result of these supply chain disruptions, we may be required to increase customer order lead times and place some products on allocation. In addition, we may consider additional or alternative third-party manufacturing and logistics providers or suppliers. Such mitigation efforts may result in cost increases and any attempts to offset such increases with price increases may result in reduced sales, increased customer dissatisfaction, or otherwise harm our reputation. Further, if we were to elect to transition or add manufacturing or logistics providers or suppliers, it may result in temporary or additional delays in product delivery or risks related to consistent product quality or reliability. This in turn may limit our ability to fulfill customer orders and we may be unable to satisfy all of the demand for our products. We may in the future also purchase components further in advance, which in return can result in less capital being allocated to other activities such as marketing and other business needs. We cannot quantify the impact of such disruptions at this time or predict the impact of any mitigation efforts we may take in response to supply chain disruptions on our business, financial condition, and results of operations.

In addition, customer demand for our products may be impacted by weak economic conditions, inflation, weak growth, recession, equity market volatility, or other negative economic factors in the United States or other nations. The United States has recently experienced historically high levels of inflation. If the inflation rate continues to increase, it will likely affect our expenses, including, but not limited to, employee compensation expenses, increased manufacturing and supplier costs, and increasing market prices of certain components, parts, supplies, and commodity raw materials, which are incorporated into our products or used by our suppliers to manufacture our products. These components, parts, supplies, and commodities may from time to time become restricted, or general market factors and conditions may affect pricing of such components, parts, supplies and commodities, such as inflation or supply chain constraints. Given our limited operating history, we cannot predict how ongoing or increasing recessionary or inflationary pressures may impact our business, financial condition, and results of operations in the future.

**<u>RESULTS OF OPERATIONS</u>**

**Critical Accounting Policies and Estimates**

This Management's Discussion and Analysis of Financial Condition and Results of Operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate these estimates and assumptions, including those described below. We base our estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances. These estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Because of the uncertainty inherent in these matters, actual results may differ from these estimates and could differ based upon other assumptions or conditions.

Some of the estimates and assumptions we have to make under U.S. GAAP require very difficult, subjective and/or complex judgments about matters that are inherently uncertain and, as a result, we have identified those as critical accounting estimates, which are considered critical to an understanding of our historical financial condition and results of operations and are reasonably likely to have a material impact on our future results of operations and financial condition. Critical accounting estimates include those used in estimating the fair value of our convertible notes, warrants issued in conjunction with the issuance of such convertible notes, assumptions used in determining the valuation allowance for our deferred tax assets and the impairment of goodwill and intangible assets and estimates and assumptions used in determining the fair value of consideration paid and liabilities assumed in business combinations. For a description of our significant accounting policies, see Note 2 to the Consolidated Financial Statements.

The critical accounting policies that reflect our more significant judgments and estimates used in the preparation of our consolidated financial statements include those noted below.

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***Fair Value Measurements***

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings when they occur. Our financial instruments that are carried at fair value in our consolidated financial statements consist of convertible notes, warrants and embedded derivative liabilities associated with the issuance of convertible notes and contingent consideration related to acquisition transactions. The fair value of these instruments that are measured at each accounting period are generally determined using Monte Carlo simulations or discounted cash flow analyses and are largely based on unobservable inputs to the valuation methodology (Level 3 inputs - see Note 13 to the Consolidated Financial Statements).

***Goodwill and Intangible Assets***

Our annual goodwill impairment assessment at October 1, 2025 was performed based on our determination that Wattbike, CLMBR and FORME comprise a single reporting unit based on the guidance provided in Accounting Standards Codification ("ASC") 350, and we performed a quantitative analysis using a combination of income and market approaches. Our reporting unit had fair values in excess of their carrying values, resulting in no impairment of goodwill.

We estimate the fair value of intangible assets acquired in business combinations based on an income approach. Where applicable, we utilize the relief-from-royalty method, which assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to exploit the related benefits of these types of assets. This approach is dependent on a number of factors, including estimates of future growth and trends, royalty rates for this category of intellectual property, discount rates and other variables. For the periods presented, we did not recognize any impairment of intangible assets.

***Contingent Consideration***

In accordance with ASC 805, Business Combinations, liabilities for contingent consideration assumed in business acquisitions are recorded at fair value at the date of acquisition, with changes in the fair value recorded through earnings at each reporting period. We assess the fair value of this liability based on our estimate of the likelihood that sales projections or forecasted free cash flow, as defined, will be achieved and that the contingent payment will be earned. For the three months ended March 31, 2026 and 2025, we recorded losses on changes in fair value of contingent consideration of $26,000 and $0, respectively, and for the years ended December 31, 2025 and 2024, we recorded gains on changes in fair value of contingent consideration of $0.2 million and $1.3 million, respectively.

***Convertible Notes***

As permitted under ASC Topic 825, Financial Instruments, we have elected the fair value option to account for some of our convertible notes that were issued in 2025 and 2024 (see Note 11 to the Consolidated Financial Statements). In accordance with ASC Topic 825, we record these convertible notes at fair value with changes in fair value recorded as a component of other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss. The convertible notes for which we elected the fair value option are valued using a discounted cash flow analysis or Monte Carlo Simulation model, and the assumptions used therein are discussed in Note 13 to the Consolidated Financial Statements. For the three months ended March 31, 2026 and 2025, we recorded losses on the change in fair value of convertible notes of $1.4 million and $0.6 million, respectively, and for the years ended December 31, 2025 and 2024, we recognized a gain (loss) on changes in fair value of convertible notes of $28.6 million and ($0.1 million), respectively.

***Warrants and Derivative Liabilities***

In connection with convertible notes that we issued in 2026 and 2025 for which we did not elect the fair value option, we issued warrants to purchase our Common Stock which did not meet the requirements for equity classification, and are therefore classified as long-term liabilities in the accompanying consolidated balance sheets with changes in fair value recognized in earnings at each reporting period. We generally utilize a Black-Scholes option pricing model to determine the fair value of these liabilities. For the three months ended March 31, 2026 and 2025 we recognized gains on changes in the fair values of warrants of $0.7 million and $0.4 million, respectively, and for the years ended December 31, 2025 and 2024, we recognized gains on changes in fair value of warrants of $2.8 million and $9.3 million, respectively.

We also recognized derivative liabilities related to these convertible notes for the embedded conversion options contained in the notes, which are also measured at fair value with changes in fair value recorded in earnings in each reporting period. The fair value of these liabilities are generally determined using a Monte Carlo Simulation model, and the key inputs into the model are disclosed in Note 13 to the consolidated financial statements. For the three months ended March 31, 2026 and 2025, we recognized a loss on the changes in

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fair values of derivatives of $0.3 million and $1.5 million, respectively, and for the years ended December 31, 2025 and 2024, we recognized a gain and loss on changes in fair value of derivatives of $0.5 million and $0.5 million, respectively.

***Income Taxes***

We maintain a full valuation allowance against all of our net deferred tax assets, and as a result we have historically not recorded an income tax benefit in the accompanying consolidated financial statements despite continued losses since inception. This valuation allowance reflects our assessment of whether it is more likely than not that we will generate sufficient taxable income in the future to be able to utilize our deferred tax assets. In determining whether a valuation allowance is warranted, we evaluate factors such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies. Evaluation of these factors requires our management to make certain estimates, assumptions and judgments. We consider all positive and negative evidence to estimate if sufficient future taxable income will be generated to realize our deferred tax assets, and we consider cumulative losses in recent years to be a significant type of negative evidence. As of March 31, 2026 and 2025, we determined that it is more-likely-than-not that our federal and state deferred tax assets will not be realized.

***Recent Accounting Pronouncements***

See Note 2, Summary of Significant Accounting Policies, of the notes to our consolidated financial statements included in the 2025 10-K for recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted as of the dates of the statement of financial position included in this quarterly report on Form 10-Q.

**Emerging Growth Company and Smaller Reporting Company Status**

Under Section 107(b) of the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, an "emerging growth company" can delay the adoption of new or revised accounting standards until such time as those standards would apply to private companies. We have elected this exemption to delay adopting new or revised accounting standards until such time as those standards apply to private companies. Where allowable, we have early adopted certain standards as described in Note 2 to our consolidated financial statements included in the 2025 10-K. As a result, our consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. We will continue to remain an "emerging growth company" until the earliest of the following: (i) the last day of the fiscal year following the fifth anniversary of the date of the completion of our initial public offering; (ii) the last day of the fiscal year in which our total annual gross revenue is equal to or more than $1.235 billion; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC. We are also a "smaller reporting company," meaning that the market value of our stock held by non-affiliates is less than $700.0 million and our annual revenue is less than $100.0 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700.0 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

**Components of Our Operating Results**

***Revenue***

*Connected Fitness Products*

Connected Fitness Product revenue consists of sales of our connected fitness products and related accessories, delivery and installation services, and extended warranty agreements offered through a third-party. Fitness Product revenue is recognized at the time of delivery, except for extended warranty revenue which is recognized over the warranty period. For the third-party extended warranty service sold along with the connected fitness products, we do not obtain control of the warranty before transferring it to the customers. Therefore, we account for revenue related to the fees paid to the third-party extended warranty provider on a net basis, by recognizing only the net commission we retain. Connected fitness product revenue represented 87% and 77% of total revenue for the three months ended March 31, 2026 and 2025, respectively.

*Membership*

Membership revenue consists of revenue generated from our monthly Connected Fitness membership. Membership revenue represented 12% and 13% of total revenue for the three months ended March 31, 2026 and 2025, respectively. With the recent acquisition of Ergatta, we expect our membership revenue to increase overall and as a percentage of total revenue during the remainder of 2026.

*Training and Other Revenue*

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Training and other revenue consists of sales of our personal training services delivered through our connected fitness products and third-party mobile devices, and also includes license revenue generated by Ergatta. Training revenue is recognized at the time of delivery. Training and other revenue represented 2% and 10% of total revenue for the three months ended March 31, 2026 and 2025, respectively.

***Cost of Revenue***

*Connected Fitness Product*

Connected Fitness Product cost of revenue consists of Wattbike, Ergatta, CLMBR, Studio and Studio Lift and accessories product costs, including manufacturing costs, duties and other applicable importing costs, shipping and handling costs, packaging, warranty replacement costs, fulfillment costs, warehousing costs, and certain allocated costs related to management and facilities expenses associated with supply chain logistics.

*Membership*

Membership cost of revenue includes costs associated with personnel related expenses, filming and production costs, hosting fees, music royalties, amortization of capitalized content and amortization of capitalized software development costs.

*Training and Other*

Training and other revenue cost of revenue includes costs associated with personnel related expenses and rent expense.

***Operating Expenses***

*Research and Development*

Research and development expense primarily consists of personnel and facilities-related expenses, engineering costs, consulting and contractor expenses, tooling and prototype materials, and software platform expenses. We capitalize certain qualified costs incurred in connection with the development of internal-use software and software to be sold or marketed which may also cause research and development expenses to vary from period to period.

*Sales and Marketing*

Sales and marketing expense consists of performance marketing media spend, brand creative expenses, amortization of customer-related and trademark intangible assets, all showroom expenses and related lease payments and sales and marketing personnel-related expenses.

*General and Administrative*

General and administrative expenses include personnel-related expenses and facilities-related costs primarily for our executive, finance, accounting, legal, human resources, and IT functions. General and administrative expenses also include fees for professional services, principally comprised of legal, audit, tax and accounting services, insurance and depreciation of internal use software.

We expect to incur additional general and administrative expenses as a result of operating as an acquisition-focused public company, including expenses related to compliance and reporting obligations required of public companies, and increased costs for insurance, investor relations expenses, and professional services. As a result, we expect that our general and administrative expenses will increase in absolute dollars in future periods and vary from period to period as a percentage of revenue, but we expect to leverage these expenses over time as we grow our revenue and member base.

**Other (Expense) Income, Net**

Other (expense) income, net consists of expenses associated with the issuance of convertible notes that were recognized at fair value, unrealized currency gains and losses, and expense recognized in connection with a settlement agreement.

**Interest Expense**

Interest expense consists of interest associated with our convertible notes and loans payable.

**Interest Income**

Interest income in 2025 consists of interest associated with the loan receivable.

**(Loss) gain upon extinguishment of debt and accounts payable**

(Loss) gain on debt extinguishment and accounts payable is primarily the result of gains or losses incurred upon conversion of convertible notes and loans payable into equity, or an exchange of debt instruments.

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**Change in Fair Value of Convertible Notes**

The change in fair value of convertible notes consists of the change in the fair value of the outstanding convertible notes since the previous reporting period.

**Change in Fair Value of Earn Out**

The change in fair value of earn out consists of the change in the fair value of outstanding contingent consideration liabilities since the previous reporting period.

**Change in Fair Value of Derivatives**

The change in fair value of derivatives consists of the change in the fair value of the outstanding derivatives since the previous reporting period.

**Change in Fair Value of Warrants**

The change in fair value of warrants consists of the change in the fair value of the outstanding warrants since the previous reporting period.

**Results of Operations**

The following tables set forth our consolidated results of operations for the periods presented.

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## Results of Operations for the Three Months Ended March 31, 2026 and 2025
The following tables set forth our condensed consolidated results of operations for the periods presented. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **%** |
| Revenue: | **(in thousands)** | **(in thousands)** | **(in thousands)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product revenue | $4453 | $1050 | $3403 | 324% |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership revenue | 605 | 176 | 429 | 244% |
| &nbsp;&nbsp;&nbsp;&nbsp;Training revenue | 83 | 130 | (47) | (36%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 5141 | 1356 | 3785 | 279% |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of fitness product revenue (2) | (3043) | (917) | (2126) | 232% |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of membership (2) | (365) | (423) | 58 | (14%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of training | (124) | (320) | 196 | (61%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | (3532) | (1660) | (1872) | 113% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit (loss) | 1609 | (304) | 1913 | (629%) |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development (1) | 438 | 1271 | (833) | (66%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing (1) (2) | 1034 | 250 | 784 | 314% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative (1) (2) | 4127 | 4487 | (360) | (8%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 5599 | 6008 | (409) | (7%) |
| Loss from operations | (3990) | (6312) | 2322 | (37%) |
| Other income (expense), net: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net: | (2477) | (111) | (2366) | 2132% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1530) | (1764) | 234 | (13%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | 158 | (158) | 100% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) upon extinguishment of debt and accounts payable | (1710) | 3037 | (4747) | (156%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes | (1350) | (573) | (777) | 136% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earn out | (26) |  | (26) | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | (327) | (1487) | 1160 | (78%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrants | 667 | 449 | 218 | 49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | (6753) | (291) | (6462) | 2221% |
| Loss before provision for income taxes | (10743) | (6603) | (4140) | 63% |
| Income tax benefit (expense) |  |  |  | - |
| Net loss | $(10743) | $(6603) | $(4140) | 63% |

---

(1)Includes stock-based compensation expense as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **%** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | $55 | $699 | $(644) | (92%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 339 | 1390 | (1051) | (76%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $394 | $2089 | $(1695) | (81%) |

---

For the three months ended March 31, 2026 and 2025, $0 and $0.3 million, respectively, of stock-based compensation was capitalized as software costs.

(2)Includes depreciation and amortization expense as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **%** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of membership | $328 | $423 | $(95) | (22%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of fitness product revenue | 145 | 158 | (13) | (8%) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 66 | 300 | (234) | (78%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 315 | 131 | 184 | 140% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total depreciation and amortization expense | $854 | $1012 | $(158) | (16%) |

---

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**Comparison of the three months ended March 31, 2026 and 2025**

***Revenue***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |  |  |
|  | **2026** | **2025** | **Amount** | **% Change** |
| Revenue: | **(in thousands)** | **(in thousands)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product | $4453 | $1050 | $3403 | 324% |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership | 605 | 176 | 429 | 244% |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other | 83 | 130 | (47) | (36%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 5141 | 1356 | 3785 | 279% |
| &nbsp;&nbsp;&nbsp;&nbsp;Percentage of revenue |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product | 87% | 77% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership | 12% | 13% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Training | 2% | 10% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 100% | 100% |  |  |

---

Fitness product revenue increased by $3.4 million, or 324%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase in Fitness Product revenue was the result of $4.2 million of revenue associated with Wattbike, which was acquired on July 1, 2025, partially offset by a decrease in CLMBR revenue in 2026.

Membership revenue increased $0.4 million, or 244%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase is attributable to Ergatta, acquired on March 11, 2026.

Training and other revenue decreased by $47,000, or 36%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was a result of a decrease in Live 1:1 training sessions.

***Cost of Revenue and Gross Profit (Loss)***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |  |  |
|  | **2026** | **2025** | **Amount** | **% Change** |
| Cost of Revenue: | **(in thousands)** | **(in thousands)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product | $3043 | $917 | $2126 | 232% |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership | 365 | 423 | (58) | (14%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other | 124 | 320 | (196) | (61%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 3532 | 1660 | 1872 | 113% |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Profit (Loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product | 1410 | 133 | 1277 | 960% |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership | 240 | (247) | 487 | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other | (41) | (190) | 149 | 78% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit (loss) | 1609 | (304) | 1913 | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Margin: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fitness product | 32% | 13% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Membership | 40% | (140%) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Training and other | (49%) | (146%) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 31% | (22%) |  |  |

---

Fitness product cost of revenue increased by $2.1 million, or 232%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase is due to the cost of revenue associated with Wattbike, which was acquired on July 1, 2025.

Membership cost of revenue decreased by $58,000, or 14%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease is primarily related to the decrease in content amortization expense, partially offset by Ergatta membership cost of revenue not present in 2025.

Training and other cost of revenue decreased $0.2 million, or 61%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease is mainly due to the decline in Live 1:1 training sessions.

Our gross profit/loss improved from a loss of $0.3 million for the three months ended March 31, 2025 to gross profit of $1.6 million for the three months ended March 31, 2026. The improvement is mainly due to the Wattbike acquisition.

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***Operating Expenses***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **%** |
| Operating Expenses: | **(in thousands)** | **(in thousands)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | $438 | $1271 | $(833) | (66%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 1034 | 250 | 784 | 314% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 4127 | 4487 | (360) | (8%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $5599 | $6008 | $(409) | (7%) |

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*Research and Development*

Research and development expense decreased by $0.8 million, or 66%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to decreases in stock-based compensation and other personnel-related costs of $0.6 million and $0.2 million, respectively.

*Sales and Marketing*

Sales and marketing expense increased by approximately $0.8 million, or 314%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, driven by increases in personnel-related expenses of $0.5 million and advertising expense $0.1 million, both of which are attributable to the Wattbike acquisition, and amortization of intangibles of $0.2 million associated with Ergatta.

*General and Administrative*

General and administrative expense decreased by $0.4 million, or 8%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The decrease was mainly due to decreases in stock-based compensation expense of $1.1 million and vendor settlements of $0.3 million, largely offset by Wattbike and Ergatta expenses of $0.8 million and $0.1 million, respectively, in 2026 with no comparable amount for 2025.

***Other Income (Expense), net***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Change** | **Change** |
|  | **2026** | **2025** | **Amount** | **%** |
| Other income (expense), net | **(in thousands)** | **(in thousands)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expense, net: | $(2477) | $(111) | $(2366) | 2132% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (1530) | (1764) | 234 | (13%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income |  | 158 | (158) | (100%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) gain upon extinguishment of debt and accounts payable | (1710) | 3037 | (4747) | (156%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of convertible notes | (1350) | (573) | (777) | 136% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earn out | (26) |  | (26) | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivatives | (327) | (1487) | 1160 | (78%) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrants | 667 | 449 | 218 | 49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | $(6753) | $(291) | $(6462) | 2221% |

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*Other Expense, net*

Other expense, net for the three months ended March 31, 2026 is mainly comprised of expense recognized under a settlement agreement in the amount of $2.2 million and the credit loss of $0.2 million recognized upon the settlement of the Sportstech loan receivable. Other expense, net for the three months ended March 31, 2025 is mainly comprised of losses on the settlement of a Loss Restoration Agreement.

*Interest Expense*

Interest expense decreased by $0.2 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025. The decrease mainly attributable to the conversion of certain higher interest debt into equity, partially offset by an increase in amortization of debt discount.

*Interest Income*

Interest income decreased by $0.2 million for the three months ended March 31, 2026 as compared to the same period of a year ago due to the repayment of the loan receivable from Sportstech in early 2026.

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*(Loss) Gain on extinguishment of debt and accounts payable*

The loss on extinguishment of debt and accounts payable for the three months ended March 31, 2026 was mainly the result of the conversion of Class A Incremental Notes into equity (see Note 11 to the Consolidated Financial Statements) resulting in a loss on extinguishment of $2.8 million, partially offset by gains on extinguishment of $1.1 million resulting from other indebtedness that was converted to equity. For the three months ended March 31, 2025, we recorded a gain on extinguishment of $3.0 million in connection with the conversion of debt to equity.

*Change in Fair Value of Convertible Notes* 

We recorded losses on the change in fair value of convertible notes for the three months ended March 31, 2026 and 2025 of $1.4 million and $0.6 million due to the increase in fair value of these notes.

*Change in Fair Value of Derivatives*

The loss on the change in fair value of derivatives for the three months ended March 31, 2026 of $0.3 million reflects the increase in the fair value of the Company's derivative instruments, which are mainly the result of the issuance of convertible promissory notes. For the three months ended March 31, 2025, we recorded a loss of $1.5 million related to the increases in fair value of these instruments.

*Change in Fair Value of Warrants*

The gain on the change in fair value of warrants issued in conjunction with the issuance of convertible notes was $0.7 million and $0.4 million, respectively.

**<u>Liquidity and Capital Resources</u>**

At March 31, 2026, we had a working capital deficit of $22.4 million, mainly consisting of cash and cash equivalents of $4.7 million, accounts receivable of $2.5 million, inventory of $4.5 million and vendor deposits and other current assets of $2.3 million, more than offset by accounts payable and accrued expenses of $14.5 million, the current portion of convertible notes and loans payable of $16.3 million and other current liabilities of $5.6 million. We have incurred an accumulated deficit of $238.3 million since inception, and we had negative cash flows from operations of $2.6 million and $3.5 million for the three months ended March 31, 2026 and 2025, respectively, and $10.4 million and $14.8 million for the years ended December 31, 2025 and 2024, respectively. We also incurred operating losses of $4.0 million and $6.3 million for the three months ended March 31, 2026 and 2025, respectively, and $19.9 million and $29.2 million for the years ended December 31, 2025 and 2024, respectively. We have funded our operations for the last few years through the sale of our debt and equity securities. Our material cash requirements are primarily comprised of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Payments to vendors and professional service providers critical to our operations and our obligations as a public company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cash portions of the purchase price for strategic acquisitions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Principal and interest payments on debt scheduled to mature over the next twelve months

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Obligations under legal settlements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Salaries, wages and benefits to employees

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Sourcing, new product development and commercialization activities for our existing products

As an emerging growth company, we are subject to certain inherent risks and uncertainties associated with the development of an enterprise. Since our inception, substantially all of management's efforts have been devoted towards the development of its brands and services, their penetration in the marketplace, and the development of a commercial organization, all at the expense of short-term profitability.

In order to execute our growth strategy, we have been heavily dependent on financing from lenders and capital from private and public investors (collectively "outside capital") since our inception and we expect to remain heavily dependent on outside capital for the foreseeable future until such time that our operations reach a scale of profitability that allows us to fund our obligations with cash inflows from operations. However, management can provide no assurance that we will ever be able to generate sufficient cash inflows to reduce or eliminate our reliance on outside capital.

Our available liquidity to fund our operations over the next twelve months beyond the issuance date was limited to approximately $1.3 million of cash and cash equivalents However, based on our anticipated liquidity needs, the foregoing available liquidity will not be sufficient to meet our obligations as they become due over the next year beyond the issuance date absent management's ability to secure additional outside capital, which may not be available on commercially acceptable terms, or at all. The Securities Purchase Agreement that we entered into on January 28, 2025 with an accredited investor allows the investor to purchase up to $20.0 million of additional senior secured convertible notes from us, and we also have an At The Market Offering Agreement in place under which we may issue

------

additional shares of Common Stock of approximately $6.0 million, however these do not represent firm commitments for additional capital. We currently have no firm commitments in place for securing additional outside capital.

Included in our anticipated liquidity needs is approximately $18.2 million of outstanding debt that is scheduled to mature over the next twelve months beyond the issuance date, and we do not have sufficient liquidity to repay such debt if a cash settlement is required. In the event we are unable to refinance our outstanding debt, settle some or all of the debt with shares of our common or preferred stock, secure additional outside capital, and/or secure amendments or waivers from its lenders to defer or modify their repayment terms, management will be required to seek other strategic alternatives to settle this indebtedness, which may include, among others, a significant curtailment of the Company's operations, a sale of certain of the Company's assets, a sale of the entire Company to strategic or financial investors, and/or allowing the Company to become insolvent by filing for bankruptcy protection under the provisions of the U.S. Bankruptcy Code. These uncertainties raise substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared on the basis that we will continue to operate as a going concern, which contemplates that we will be able to realize assets and settle liabilities and commitments in the normal course of business for the foreseeable future. Accordingly, the accompanying consolidated financial statements do not include any adjustments that may result from the outcome of these uncertainties.

## Cash Flows
**Comparison of the three months ended March 31, 2026 and 2025**

---

| | | |
|:---|:---|:---|
| *(in thousands)* | **2026** | **2025** |
| Net cash used in operating activities | $(2587) | $(3545) |
| Net cash provided by (used) in investing activities | 4150 | (2191) |
| Net cash provided by financing activities | 2714 | 7771 |
| Effect of exchange rate on cash | (51) | 34 |
| Net Change In Cash and Cash Equivalents | $4226 | $2069 |

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***Operating Activities***

Net cash used in operating activities was $2.6 million and $3.5 million for the three months ended March 31, 2026 and 2025, respectively. The decrease was mainly due to favorable changes in accounts receivable and accounts payable and accrued expenses. The following table represents the components of cash used in operating activities:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| **(in thousands)** | **2026** | **2025** |
| Net loss | $(10743) | $(6603) |
| Non-cash expenses, gains and losses (a) | 8035 | 3799 |
| Changes in accounts receivable | 249 | (338) |
| Changes in inventory | (73) | 391 |
| Changes in accounts payable, accrued expenses and other current liabilities | 112 | (615) |
| Other, net | (167) | (179) |
| Total cash used in operations | $(2587) | $(3545) |
| (a) - includes depreciation and amortization, stock-based compensation, non-cash interest expense and gains and losses on changes in fair value of the Company's financial instruments. | (a) - includes depreciation and amortization, stock-based compensation, non-cash interest expense and gains and losses on changes in fair value of the Company's financial instruments. | (a) - includes depreciation and amortization, stock-based compensation, non-cash interest expense and gains and losses on changes in fair value of the Company's financial instruments. |

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***Investing Activities***

Net cash provided by investing activities of $4.2 million for the three months ended March 31, 2026 was mainly comprised of the repayment of the Sportstech loan receivable in the amount of $6.4 million (see Note 2 to the Consolidated Financial Statements), partially offset by $1.7 million of cash paid in the Ergatta acquisition transaction, net of cash acquired and acquisition of software and content of $0.4 million. Net cash used in investing activities of $2.2 million for the three months ended March 31, 2025 were comprised of a loan to Sportstech of $2.0 million and acquisition of software and content of $0.2 million.

***Financing Activities***

Net cash provided by financing activities of $2.7 million for the three months ended March 31, 2026 was primarily from the issuance of convertible notes of $1.6 million and proceeds from the issuance of common stock from an At the Market Offering of $1.5 million, partially offset by the payment of loans under a line of credit at Wattbike of $0.3 million.

Net cash provided by financing activities of $7.8 million for the three months ended March 31, 2025 was primarily from proceeds from the issuance of convertible notes in the amount of $6.2 million and At the Market Offering proceeds of $1.6 million.

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**Item 3. Quantitative and Qualitative Disclosure About Market Risk**

***Foreign Currency Risk***

To date, most of our inventory purchases have been denominated in U.S. dollars. A portion of our operating expenses are incurred outside the United States and are denominated in foreign currencies, which are also subject to fluctuations due to changes in foreign currency exchange rates. In addition, our suppliers incur many costs, including labor and supply costs, in other currencies. While we are not currently contractually obligated to pay increased costs due to changes in exchange rates, to the extent that exchange rates move unfavorably for our suppliers, they may seek to pass these additional costs on to us, which could have a material impact on our gross margins. Our operating results and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates. However, we believe that the exposure to foreign currency fluctuation from operating expenses is relatively small at this time as the related costs do not constitute a significant portion of our total expenses. To date, we have not entered into derivatives or hedging transactions, as our exposure to foreign currency exchange rates has historically been partially hedged as our foreign currency denominated inflows have covered our foreign currency denominated expenses. However, we may enter into derivative or hedging transactions in the future if our exposure to foreign currency should become more significant.

***Interest rate risk***

Substantially all of our outstanding debt instruments have fixed interest rates. As a result, a hypothetical 100 basis point increase in interest rates would not result in a material impact on our cash flows, liquidity or results of operations for the three months ended March 31, 2026 and 2025.

***Inflation Risk***

While inflation has contributed to increased manufacturing and supplier costs, higher component prices and elevated employee compensation expenses for the three months ended March 31, 2026 and 2025, we do not believe that these inflationary pressures have had a material effect on our business, financial condition or results of operations. However, if our costs become subject to more significant or sustained inflationary pressures, we may not be able to fully offset such higher costs through price increases or other measures. Our inability or failure to do so could harm our business, financial condition, and operating results.

## Item 4. Contr ols and Procedures.
***Evaluation of Disclosure Controls and Procedures***

Under the supervision, and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), in connection with the period ending March 31, 2026. Based on that evaluation, management has concluded that as of the respective period, our disclosure controls and procedures were not effective due to the material weaknesses in internal control over financial reporting described below.

Notwithstanding the material weaknesses in our internal control over financial reporting, management has concluded that the condensed consolidated financial statements included in this Form 10-Q fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America.

***Management's Report on Internal Control Over Financial Reporting***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act for the Company. Management assessed the effectiveness of internal control over financial reporting as of the three months ended March 31, 2026. In making this assessment, our management used the criteria set forth in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO Framework"). Based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of March 31, 2026, because of the material weaknesses described below.

*Material Weaknesses*

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that a reasonable possibility exists that a material misstatement of our annual or interim consolidated financial statements would not be prevented or detected on a timely basis.

Management concluded that material weaknesses existed as of March 31, 2026. Specifically, management identified deficiencies in the principles associated with the control environment, risk assessment, control activities, information and communication and monitoring components of internal control, based on the criteria established by the COSO Framework, that constitute material weaknesses, either individually or in the aggregate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Control Environment: The Company lacked appropriate policies and resources to develop and operate effective internal control over financial reporting, which contributed to the Company's inability to properly analyze, record and disclose accounting matters accurately and timely. This was further impacted by the lack of sufficient complement of qualified technical accounting and financial reporting personnel. This material weakness contributed to additional material weaknesses further described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Risk Assessment: The Company did not have a formal process to identify, update, and assess risks, including risks around the accounting for complex transactions, that could significantly impact the design and operation of the Company's control activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Control Activities: The Company did not design and implement effective control activities and identified the following material weaknesses:

oThe lack of a sufficient number of trained professionals with the expertise to design, implement, and execute a formal risk assessment process and formal accounting policies, procedures, and control over accounting and financial reporting to ensure the timely and accurate recording of financial transactions while maintaining a segregation of duties. This, coupled with management's accounting software system having certain system limitations that do not allow for an effective control environment and the absence of sufficient other mitigating controls, created segregation of duties deficiencies.

oThe lack of a sufficient number of trained professionals with the appropriate U.S. GAAP technical expertise to identify, evaluate, and account for complex transactions and review valuation reports prepared by external specialists*.*

oThe Company failed to design and implement adequate internal controls over the recording of stock-based compensation expense, including a precise review and procedures to ensure the proper accounting for stock-based compensation expense, and the recording of that expense completely and accurately in the appropriate period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Information and Communication: The Company did not have adequate processes and controls for communicating information among the relevant parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Monitoring Activities: The Company did not appropriately select, develop, and perform ongoing evaluations to ascertain whether the components of internal controls are present and functioning. The Company did not evaluate and communicate internal control deficiencies in a timely manner to those parties responsible for taking corrective action, including senior management and the board of directors.

These material weaknesses could result in a misstatement of the account balances or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or timely detected.

***Inherent Limitations on Effectiveness of Controls***

Our management, including our principal executive officer and principal financial officer, do not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Due to inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

***Remediation Plan and Status***

We are committed to remediating the control deficiencies that constituted the above material weakness by implementing changes to our internal control over financial reporting. We are in the process of implementing measures designed to improve our internal control over financial reporting to remediate these material weaknesses, including formalizing our processes and internal control documentation and strengthening supervisory reviews by our financial management; hiring additional qualified accounting and finance personnel and engaging financial consultants to enable the implementation of internal control over financial reporting and segregating duties amongst accounting and finance personnel. In addition, we are planning on implementing an accounting software system with the design and functionality to segregate incompatible accounting duties, which we currently expect will be implemented in our 2026 fiscal year.

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While we are implementing these measures, we cannot assure you that these efforts will remediate our material weaknesses and significant deficiencies in a timely manner, or at all, or prevent restatements of our financial statements in the future. In particular, our material weakness related to our accounting software was not fully remediated for the three months ended March 31, 2026, as we expect to implement new software later in 2026. If we are unable to successfully remediate our material weaknesses, or identify any future significant deficiencies or material weaknesses, the accuracy and timing of our financial reporting may be adversely affected, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports, and the market price of our common stock may decline as a result.

***Changes in Internal Control Over Financial Reporting*** 

There has been no change in our internal control over financial reporting during the period ended March 31, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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## Part II - Other Information

## Item 1. Legal Proceedings.
For information regarding legal proceedings please refer to Note 15, *Commitments and Contingencies*, in Part I, Item 1, "Financial Statements" of this Quarterly Report on Form 10-Q. From time to time, we are involved in legal proceedings and subject to claims arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we believe that the resolution of current matters will not have a material adverse effect on our business, financial condition, or results of operations. Even if any particular litigation or claim is not resolved in a manner that is adverse to our interests, such litigation can have a negative impact on us because of defense and settlement costs, diversion of management resources from our business, and other factors.

## Item 1A. *Risk Factors.* 
*Our business, financial condition, results of operations, and cash flows may be impacted by a number of factors, many of which are beyond our control, including those set forth in the 2025 10-K and in our other filings with the SEC, the occurrence of any one of which could have a material adverse effect on our actual results. Except as set forth below, there have been no material changes to the risk factors previously disclosed in the 2025 10-K. The Company is supplementing the risk factors previously disclosed in the 2025 10-K with the following risk factors.*

**Our acquisition of Ergatta does not provide assurance that the operations of Ergatta will be accretive to our earnings or otherwise improve our results of operations.** 

Acquisitions, such as our recent acquisition of Ergatta, involve the integration of previously separate businesses into a common enterprise in which it is envisioned that synergistic operations and economies of scale will result in improved financial performance. However, realization of these envisioned results is subject to numerous risks and uncertainties including but not limited to:

● Diversion of management time and attention from daily operations;

● Difficulties integrating the acquired business, technologies and personnel into our business;

● Potential loss of key employees, key contractual relationships or key customers of the acquired business; and

● Assumption of the liabilities and exposure to unforeseen liabilities of the acquired business.

Even though our acquisition of Ergatta has been consummated, there is no assurance that the acquisition will be accretive to our earnings or otherwise improve our results of operations.

**If we are unable to successfully manage the integration of our acquisitions, we may not benefit from our acquisition strategy.** 

As part of our growth strategy, we seek to supplement internal growth with targeted acquisitions, including the recent acquisition of Ergatta. We may not be successful in integrating newly acquired companies into our day-to-day operations for a variety of possible reasons, including (a) our inability to retain the skilled managerial, technical, and sales personnel of acquired companies; (b) our inability to retain the customers of acquired companies; (c) our lack of success in integrating the services offered by acquired companies with our services to achieve a single package of service offerings; (d) our inability to establish and maintain uniform standards, controls, policies and procedures throughout our acquired companies; or (e) our inability to devote the management time required to successfully integrate acquired companies due to limited management resources.

**Our issuance of convertible debt exposes us to various risks on dilution of our existing stockholders, downward pressure on stock price, impact on future financing and investor confidence.**

Our issuance of convertible debt exposes us to various risks, including the following:

*Dilution Risk to Existing Shareholders*: Our issuance of convertible debt, which may be converted into shares of our common stock, poses a significant risk of dilution to our existing shareholders. Upon conversion, new shares will be issued, increasing the total number of outstanding shares and potentially decreasing the voting power of current shareholders. The extent of dilution will depend on the conversion price and the amount of debt converted.

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*Downward Pressure on Stock Price*: The potential for future dilution from the conversion of debt can create downward pressure on our stock price. Investors may anticipate the increased supply of shares, leading to a negative impact on market valuation.

*Impact on Future Financing*: The existence of convertible debt on our balance sheet, and the potential for future dilution, may make it more difficult or expensive for us to raise additional capital through equity or debt offerings in the future. Potential investors may be wary of the existing conversion rights or the perceived debt burden.

*Market Perception and Investor Confidence*: The market's perception of our financial health and growth prospects can be influenced by our capital structure, including the amount and terms of our convertible debt. Negative perceptions could impact investor confidence and our stock valuation.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

On March 31, 2026 we issued 1,088,255 shares of Series C Preferred Stock pursuant to a settlement agreement in connection with the resolution of certain outstanding obligations.

During the three months ended March 31, 2026 we issued 332,118 shares of common stock in the settlement of debt.

The offers, sales and issuances of the securities described above were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act and Rule 506 promulgated under Regulation D promulgated thereunder as transactions by an issuer not involving a public offering. The recipients of securities in each of these transactions acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the securities issued in these transactions. Each of the recipients of securities in these transactions was an accredited investor or institutional accredited investor within the meaning of Rule 501(a) of Regulation D under the Securities Act and had adequate access, through employment, business or other relationships, to information about the Registrant. No underwriter was involved in these transactions.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

Our directors and officers (as defined in Rule 16a-1 under the Exchange Act) may from time to time enter into plans or other arrangements for the purchase or sale of our shares that are intended to satisfy the affirmative defense conditions of Rule 10b5–1(c) or may represent a non-Rule 10b5-1 trading arrangement under the Exchange Act. During the quarter ended March 31, 2026, no such plans or arrangements were adopted or terminated, including by modification

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**Item 6. Exh** **ibit**

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 2.1\*\* | [<u>Agreement and Plan of Merger, by and among Interactive Strength Inc., Ergatta Acquisition Corp., Ergatta, Inc. and Tom Aulet, dated as of February 18, 2026 (incorporated by reference from Exhibit 2.1 to the registrant's Current Report on Form 8-K filed February 23, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526064329/trnr-ex2_1.htm) |
| 3.1 | [<u>Certificate of Amendment to the Certificate of Incorporation of Interactive Strength Inc. (incorporated by reference from Exhibit 3.1 to the registrant's Current Report on Form 8-K filed February 25, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526071829/trnr-ex3_1.htm) |
| 3.2 | [<u>Certificate of Designation of Preferences, Rights and Limitations of Series D1 Convertible Preferred Stock, Series D2 Convertible Preferred Stock and Series D3 Convertible Preferred Stock of Interactive Strength Inc. (incorporated by reference from Exhibit 3.1 to the registrant's Current Report on Form 8-K filed March 11, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526102276/trnr-ex3_1.htm) |
| 10.1 | [<u>Exchange Agreement, dated as of December 29, 2025 (incorporated by reference from Exhibit 10.1 to the registrant's Current Report on Form 8-K filed January 5, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526002608/trnr-ex10_1.htm) |
| 10.2 | [<u>Settlement Agreement, dated as of December 31, 2025, by and between Interactive Strength Inc. and Vertical Investors, LLC (incorporated by reference from Exhibit 10.1 to the registrant's Current Report on Form 8-K filed January 7, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526006397/trnr-ex10_1.htm) |
| 10.3 | [<u>Exchange Agreement, dated as of December 31, 2025, by and between Interactive Strength Inc. and Vertical Investors, LLC (incorporated by reference from Exhibit 10.2 to the registrant's Current Report on Form 8-K filed January 7, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526006397/trnr-ex10_2.htm) |
| 10.4 | [<u>Exchange Agreement, dated as of February 19, 2026, by and between Interactive Strength Inc. and Vertical Investors, LLC (incorporated by reference from Exhibit 10.1 to the registrant's Current Report on Form 8-K filed February 25, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526071829/trnr-ex10_1.htm) |
| 10.5 | [<u>Settlement Agreement, by and between Interactive Strength Inc. and Sportstech Brands Holding GmbH, dated as of February 27, 2026 (incorporated by reference from Exhibit 10.1 to the registrant's Current Report on Form 8-K filed March 5, 2026).</u>](https://www.sec.gov/Archives/edgar/data/1785056/000119312526094084/trnr-ex10_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;31.1<br>| [<u>Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</u>](trnr-ex31_1.htm). |
| &nbsp;&nbsp;&nbsp;&nbsp;31.2 | [<u>Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](trnr-ex31_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.1\* | [<u>Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](trnr-ex32_1.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;32.2\* | [<u>Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](trnr-ex32_2.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
| &nbsp;&nbsp;&nbsp;&nbsp;101.SCH | Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents. |
| &nbsp;&nbsp;&nbsp;&nbsp;104 | Cover Page Formatted as Inline XBRL and Contained in Exhibit 101. |

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\* In accordance with Item 601(b)(32)(ii) of Regulation S K and SEC Release No. 34-47986, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and will not be deemed "filed" for purposes of Section 18 of the Exchange Act or deemed to be incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933 except to the extent that the registrant specifically incorporates it by reference.

------

\*\* The schedules to this Exhibit have been omitted in accordance with Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplementally to the Securities and Exchange Commission a copy of all omitted exhibits and schedules upon its request.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | INTERACTIVE STRENGTH INC. | INTERACTIVE STRENGTH INC. |
| Date: May 20, 2026 | By: | /s/ Trent A. Ward |
|  |  | **Trent A. Ward** |
|  |  | **Chief Executive Officer** |
|  |  | (Principal Executive Officer and Duly Authorized Officer) |
| Date: May 20, 2026 | By: | /s/ Caleb Morgret |
|  |  | **Caleb Morgret** |
|  |  | **Chief Financial Officer** |
|  |  | (Principal Financial Officer and Principal Accounting Officer) |

---

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Trent A. Ward, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 of Interactive Strength Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 20, 2026 | By: | /s/ Trent A. Ward |
|  |  | **Trent A. Ward** |
|  |  | **Chief Executive Officer** |
|  |  | (Principal Executive Officer) |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Caleb Morgret, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 of Interactive Strength Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 20, 2026 | By: | /s/ Caleb Morgret |
|  |  | **Caleb Morgret** |
|  |  | **Chief Financial Officer** |
|  |  | (Principal Financial Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Interactive Strength Inc. (the "Company") on Form 10-Q for the period ending March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: May 20, 2026 | By: | /s/ Trent A. Ward |
|  |  | **Trent A. Ward** |
|  |  | **Chief Executive Officer** |
|  |  | (Principal Executive Officer) |

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## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Interactive Strength Inc. (the "Company") on Form 10-Q for the period ending March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

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| | | |
|:---|:---|:---|
| Date: May 20, 2026 | By: | /s/ Caleb Morgret |
|  |  | **Caleb Morgret** |
|  |  | **Chief Financial Officer** |
|  |  | (Principal Financial Officer) |

---

------