AUSTIN, TX - Interactive Strength Inc., operating as FORME (NASDAQ:TRNR), a specialist in fitness equipment and virtual training, has regained compliance with Nasdaq's stockholders' equity requirement. This development follows the company's strategic acquisition of CLMBR and the conversion of outstanding debt to equity.
FORME had previously been notified by Nasdaq that its stockholders' equity did not meet the minimum requirement of $10.0 million as of June 30, 2023. In response, FORME submitted a compliance plan which was accepted, granting them until February 19, 2024, to meet the requirement.
The company took several steps to regain compliance, including transferring its securities to The Nasdaq Capital Market on January 26, 2024. FORME then acquired the assets of CLMBR on February 2, issuing equity as part of the transaction. Additionally, on February 15, FORME converted certain promissory notes into equity. The successful execution of these actions was confirmed in a Form 8-K filed on February 16, which Nasdaq used to verify compliance.
Trent Ward, Co-Founder and CEO of TRNR, expressed confidence in the company's financial stability and future profitability, citing the acquisition and debt conversion as pivotal. He also projected that CLMBR would significantly contribute to revenue and gross profit growth in 2024.
Nasdaq has cautioned, however, that FORME must continue to demonstrate compliance with the stockholders' equity requirement in its upcoming quarterly report for the period ending March 31, 2024, to avoid potential delisting.
FORME operates two main brands, CLMBR, a vertical climbing machine, and FORME, a digital fitness platform. These products are designed to offer full-body workouts and virtual personal training services, catering to both commercial and in-home use.
This announcement is based on a press release statement from Interactive Strength Inc. and reflects the company's current compliance status and strategic initiatives.
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