Interactive Strength, Inc.

The Company purchased substantially all of the assets of CLMBR, Inc. (“CLMBR, Inc.”) in February 2024. 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 and was resolved prior to the Company’s purchase of CLMBR, Inc. 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 is required to make certain payments to DK City, CLMBR, Inc. and the Company will be released from liability, and the Petition will be voluntarily dismissed without prejudice. Total remaining payments as of December 31, 2024 of $2.1 million are all due within one year from December 31, 2024 and are included in Accrued Expenses and other current liabilities in theconsolidated balance sheet. The Company is in default per the agreement as a result of not following the payment plan.

From time to time, we may become involved in additional regulatory investigations or legal proceedings arising in the ordinary course of our business. While in the current opinion of management, the ultimate disposition of the currently pending matter will not have a material adverse effect on our business, financial condition or results of operations, no assurance can be given as to its outcome, and an adverse disposition could have a material adverse effect on us because of defense and settlement costs, diversion of management resources, and other factors.