Dear Shareholders and Stakeholders:
TUT Fitness Group would like to thank you, our shareholders and our various stakeholders, for your confidence and support as the world continues to recalibrate and adapt to a new set of global challenges.
Before I begin my update I would like to share our latest TUT video prepared to support our current sales and distribution efforts.
In this letter, I will cover highlights of our financial and operational performance over the past year, and the many milestones that we have achieved together. Our mission is clear and focused: to manufacture and sell high performance and affordable fitness products that leverage our patented resistance band technology to replace bulky, expensive home gym equipment.
In the three months since the Company commenced trading on the TSX on October 6th, 2021, TUT’s average monthly gross sales increased over 300% thanks to larger brand awareness and our marketing strategy. All of these sales have been Direct to Consumer (“DTC”) sales that have transacted on TUT’s US and Canadian ecommerce websites.
TUT Fitness is now broadening our sales footprint beyond DTC by leveraging an multi-channel sales strategy, part of which includes onboarding premium brand distributors in strategic markets around the world and targeting classic fitness channels, hospitality, corporate wellness and all the consumer channels in North and South America, Australasia and Europe. We are now receiving and shipping our first test orders from these distributors, while opening up new markets weekly. This has allowed us to lay down the foundation for global expansion.
Additionally, TUT has successfully launched its affiliate sales marketplace (with 50 affiliate sales partners signed to-date), and launched a presence on BestBuy.ca (which attracts 250 million visits annually to its stores and ecommerce website), to further diversify and increase sales growth.
The Company expects to file its interim financial statements and management’s discussion and analysis for the three months ended December 31, 2021 within the next two weeks.
On October 6, 2021, TUT Fitness Group successfully listed as TUT Fitness Group on the TSX Venture Exchange under the stock symbol GYM.V to raise capital and to position TUT as one of the only publicly traded home gym companies. The new capital allowed TUT to execute against our strategic plan, and to deliver on the following board mandate consisting of: a significant corporate rebrand, talent acquisition, further product development, IP expansion and an aggressive to go to market (“GTM”) distribution and sales plan.
The flagship TUT Trainer™ product has received several re-engineering updates to upgrade its capacity from 150 lbs to 200 lbs and improve the robust feel of the device. These upgrades have paved the way for the expected product launch of TUT Trainer 2.0 and TUT Rower 2.0, currently being tested locally in Vancouver, and slated for release in Q2 of 2022. TUT 2.0 will offer many of the same unique features as TUT 1.0 while sporting a new, exciting look and feel that includes a matte graphite finish.
While TUT remains committed to our current Chinese production partner, we are in the process of diversifying our manufacturing by dual-sourcing vendors for every component of our products to ensure uninterrupted supply and to improve our negotiating stance with respect to manufacturing costs.
We were granted eleven (11) new patents in 2021 for our core resistance band technology in the United States, Europe, China, Japan, United Kingdom, Germany, France and Spain. We believe the broadening of our patent portfolio is a barrier to entry for competitors, and will be a significant growth driver for the Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) future aspects of our business.
We launched a TUT mobile app in partnership with Trainerize, a leader in online fitness training software. The app features 250+ exercise videos and sequenced fitness programs for customers, plus technology tools for independent fitness trainers to create diet and exercise programs for their clients, using our TUT app.
In terms of sales and distribution, TUT secured several significant deals: a signed a Vendor Master agreement with Best Buy Canada Ltd.; a signed a global partnership agreement with CENTRED Wellness to promote TUT Fitness to a community of 57 million consumers of wellness products and services; and we opened up TUT Fitness products to two Affiliate Marketplaces.
The Company hired a VP of International Sales & Distribution who has represented other well-known fitness brands to help us establish a global footprint of resellers and distributors.
The marketplace continues to be receptive to our core message, “A New Way of Working Out,” which is based on our innovative resistance band technology. Positive media reviews of our TUT Trainer™ product so far have been published in:
The TUT Trainer™ was also featured on TV’s longest running game show The Price is Right, as part of their 50th Year Anniversary show.
As our operations grow, we continue to attract top executive talent to lead us forward. Last year we filled four key executive positions:
In addition, we continue to build out our bench of fitness trainers and advisors which currently includes:
The Connected Future
To meet demand for ‘connected fitness’ features, we are currently developing and have successfully tested our first software prototype (MVP). We believe that adding software capabilities to our TUT machines will increase sales and open new recurring revenue streams.
Home Gym Fitness Equipment Market Outlook
The fitness market is seeing consolidation, product saturation, and price discounting by the large fitness brands to stay competitive and to attract new customers. TUT Fitness Group is maintaining its position that providing a high performance, (versatile) home gym at an affordable price point will break open a very large mass-market consumer audience. The Company remains confident about its market positioning and product differentiation in the USD $10.73B Global Home Gym Equipment market, despite volatile capital markets.
Please see our Investor Information including our TUT Investor Presentation (February 1) and TUT News Releases
ABOUT TUT FITNESS GROUP:
TUT is a Vancouver-based Canadian manufacturer of high-performance and affordable fitness products. The company has designed, patented, and manufactured one of the world’s smallest (11.6 lbs), and most affordable high-performance home gyms. Incorporated in 2018, TUT is an emerging player in the connected Home Gym and Fit Tech hardware space, targeting the US$10.73B Global Home Exercise Equipment Market and Online Fitness Market, expected to be US$30B by 2026.
TUT’s flagship TUT Trainer™ micro gym uses patented, stackable resistance band technology (TUT Plates™) to replace heavy metal weights, improving form and targeting every muscle group without adding pressure to joints or tendons. With more than 250+ exercises, the multi-functional and portable gym also includes an optional TUT Rower™, and offers breakthrough functional strength and cardio training that raises the bar for personal home gyms.
TUT Fitness Group Inc.
Certain statements in this release are forward-looking statements or information, which include the preferred affiliate sales program, TUT Fitness Group licensing its technology, expectations and outcomes from the TUT Fitness Group’s patented technology, development of technologies, customer demand for TUT Fitness Group’s products, increase in distribution and sales, global expansion, the updates to TUT products, filing of the interim financial statements for the three months ended December 31, 2021, future plans, regulatory approvals and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions, the ability to manage operating expenses, security threats, and dependence on key personnel and including those other risks filed under the Company’s profile on SEDAR at www.sedar.com. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment and technology failures, litigation, increase in operating costs, lack of demand for the Company’s products and services, the impact of COVID-19 or other viruses and diseases on the Company’s ability to operate, competition, failure of counterparties to perform their contractual obligations, exchange rate fluctuations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
 Source: Fortune Business Insights
 Source: Global Market Insights, Inc.