Interactive Strength Inc. announced that it has entered into an exclusive worldwide distribution agreement with WOODWAY USA Inc. ("WOODWAY"), which grants the right for WOODWAY to sell and distribute the Company's CLMBR product anywhere in the world in the commercial market. As part of the agreement, WOODWAY is placing an initial purchase order for 2,150 units, which is expected to generate more than $7 million in net revenue for TRNR and anchors the Company's guidance that it expects to generate net revenue of between $15 million and $20 million in 2024. The Company acquired more than 2,200 units of CLMBR inventory already in the United States as part of the acquisition of CLMBR's assets earlier this month, and most of these will be purchased by WOODWAY, with a portion of the existing inventory allocated to consumer sales through .

The current expectation is that production of new CLMBR inventory will restart in the second half of 2024. The majority of CLMBR revenue is expected to be generated in the United States in 2024, but the international demand for CLMBR is expected to be significant and WOODWAY has an impressive global reach, having sold its own products in over 100 countries during its nearly five decades of operations. It is expected that CLMBR will be sold in more than 10 countries during 2024 and the brand will further penetrate WOODWAY's international network in 2025.

As an indication of the future potential for CLMBR, WOODWAY currently has more than 50 international distribution partners, with many of them covering multiple countries and territories. The agreement has an initial term of five years, but there are extensions included as this relationship is expected to be long-term. In order for WOODWAY to share more in the value creation of this agreement and as a way to create additional alignment between the parties, the Company has issued 800,000 warrants to WOODWAY with an exercise price of $1.25 per share.

WOODWAY is exhibiting multiple CLMBR units in its booth at IHRSA from March 6-8 in Los Angeles. IHRSA is the largest fitness equipment show in the world and many customers use the show to discover innovative fitness equipment and to confirm orders. In early April, WOODWAY will also be exhibiting CLMBR at FIBO in Cologne, Germany, which is the largest equipment show in Europe.