On April 3, 2026, Interactive Strength Inc. (the "Company") filed an 8-K report detailing a Settlement Agreement with Vertical Investors, LLC (the "Lender"). This agreement follows a series of financial transactions between the two parties, including a Credit Agreement initiated on February 1, 2024, which involved a term loan of approximately $7.97 million. As part of the settlement, the Company issued 1,088,255 shares of its Series C Preferred Stock to the Lender, valued at approximately $2.18 million, as payment for the Net Trade Value calculated as of March 31, 2026.

The Settlement Agreement is a culmination of previous agreements, including a Loan Modification Agreement and a Loan Restoration Agreement, which adjusted the terms of the original loan. The Company had previously converted $3 million of the loan into 1.5 million shares of Series A Preferred Stock. The new issuance of Series C Preferred Shares increases the Lender's total holdings to 2,623,176 shares of Series C Preferred Stock.

This settlement is expected to enhance the Company's liquidity position by addressing outstanding obligations to the Lender, thereby allowing for a more stable financial footing moving forward. The Company continues to navigate its financial landscape while ensuring compliance with regulatory requirements and maintaining operational execution. The issuance of new shares may lead to some dilution for existing shareholders, but it is a strategic move to stabilize the Company's financial commitments and improve its capital structure.

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