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Interactive Strength Inc., an electronic and electrical equipment manufacturer based in Austin, Texas, with a market capitalization of $7.92 million and current trading price of $0.80, has entered into a significant financial agreement, according to a recent SEC filing. According to InvestingPro data, the company generated revenue of $6.37 million in the last twelve months. On June 4, 2025, the company issued a convertible promissory note for $725,000 to S Interactive LLC. The note carries an original issue discount of 10%, resulting in a purchase price of $652,500.
The note, which matures on June 4, 2027, accrues interest at an annual rate of 15%. Interactive Strength retains the option to prepay the outstanding principal before the maturity date. In such an event, if the total interest paid is less than $217,500, the company is obliged to pay the difference to the holder. This financing comes at a time when the company’s liquidity metrics show some strain, with a current ratio of 0.54 and negative gross profit margins of -29.53%.
The holder of the note is entitled to convert the outstanding principal and accrued interest into the company’s Series A Preferred Stock at any time before the maturity date. The conversion price is set at $1.25 per share.
In the event of a default, as defined in the note, all unpaid principal, interest, and related expenses will become immediately due and payable. The full text of the note, detailing all the terms and conditions, is included as Exhibit 4.1 in the SEC filing. For deeper insights into Interactive Strength’s financial health and 12 additional exclusive ProTips, check out InvestingPro.
This financial move creates a direct financial obligation for Interactive Strength Inc. and is reported in compliance with SEC regulations. The information provided in this article is based on the company’s statement in the SEC filing.
In other recent news, Interactive Strength Inc. has been active with several notable developments. The company announced the issuance of dividends for its Series A and Series C Preferred Stock, distributing 47,332 shares of Series A and 21,584 shares of Series C as dividends in kind. Additionally, Interactive Strength is in the process of acquiring Sportstech and Wattbike, with Sportstech reporting a 36% year-over-year revenue growth for April 2025, amounting to approximately $54 million in revenue over the last twelve months. The acquisition aims to expand Interactive Strength’s product range and market presence, with the transaction expected to close by the second quarter of 2025, pending approvals.
Moreover, Interactive Strength secured a significant order of 480 Wattbikes from U.S. distributor Woodway, potentially generating over $1 million in revenue. This order is part of a strategy to grow Wattbike’s presence in the U.S. market, where it is currently less established than in the U.K. In another development, the company updated its investor FAQ section to address shareholder inquiries about the Sportstech acquisition, emphasizing the anticipated benefits of the deal. Finally, the issuance of new preferred shares as a dividend in April highlights the company’s financial maneuvers, with 81,464 Series A and 46,727 Series C shares issued, exempt from registration under the Securities Act of 1933.
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