Interactive Strength Inc. (Nasdaq

TRNR) Receives Letter From Nasdaq Confirming That the Company Complies With the Stockholders’ Equity Requirement

• The letter Confirms Compliance as a Result of the Company’s Successful Execution of Its Compliance Plan

• Stockholders’ Equity Was Increased Through the Acquisition of CLMBR and the Conversion to Equity of Outstanding Debt

AUSTIN, TX, March 05, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – Interactive Strength Inc. d/b/a FORME (Nasdaq: TRNR) (“TRNR” or “the Company”), maker of innovative specialty fitness equipment and provider of virtual personal training services, today announced that it has received written notification from the Nasdaq Stock Market (“Nasdaq”) that, based on the Company’s Form 8-K, dated February 16, 2024, Nasdaq has determined that the Company complies with Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’ Equity Requirement”).

Trent Ward, Co-Founder and CEO of TRNR, said: “We are pleased to have successfully executed the acquisition of CLMBR and the debt conversion, which are two key elements in our strategy to achieve financial stability and profitability in the future. CLMBR is expected to generate material growth in revenue and gross profit for the Company in 2024, and the conversion of debt to equity strengthens our balance sheet. We are appreciative of the efforts of the Nasdaq Staff as we developed a compliance plan and received confirmation of compliance after the completed actions. We believe we have laid the foundation for growth and profitability, and we look forward to executing our strategic plan.”

As background, on August 22, 2023, the Company had received written notification from Nasdaq that the Company’s stockholders’ equity as reported in its Quarterly Report on Form 10-Q for the period ended June 30, 2023 did not satisfy the continued listing requirement under Nasdaq Listing Rule 5450(b)(1)(A) for the Nasdaq Global Market, which requires that a listed company’s stockholders’ equity be at least $10.0 million. As reported in the Form 10-Q, the Company’s stockholders’ equity as of June 30, 2023 was approximately $5.0 million.

In accordance with Nasdaq Listing Rules, the Company submitted, in a timely fashion, a plan to regain compliance with the Stockholders’ Equity Requirement. The Company’s compliance plan was accepted by Nasdaq, and the Company was granted until February 19, 2024 to evidence compliance.

As a first step, on January 24, 2024, Nasdaq approved the Company’s application to list its Common Stock on The Nasdaq Capital Market (the “Capital Market”) and the Company’s securities were transferred to the Capital Market at the opening of business on January 26. Secondly, on February 2, the Company completed the acquisition of substantially all of the assets of CLMBR and issued equity as consideration. Finally, on February 15, the Company converted a number of its promissory notes to equity and, on February 16, the Company issued the Form 8-K upon which Nasdaq relied to confirm the Company’s compliance with the Stockholders’ Equity Requirement. Nasdaq did note, however, that if the Company fails to evidence compliance with the Stockholders’ Equity Requirement in its Quarterly Report on Form 10-Q for the March 31, 2024 period, the Company’s securities may be subject to delisting.