CAMARILLO, CA, Nov. 14, 2024 (GLOBE NEWSWIRE) -- NEWTON GOLF Company (Nasdaq: SPGC) ("NEWTON GOLF” or the "Company”), a technology-forward golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, reports financial results for its fiscal third quarter ended September 30, 2024.
Financial Highlights for Third Quarter 2024
Revenue was $1,211,000 in 3Q24, an increase of 1,175% over $95,000 in 3Q23 and a sequential increase of 49% over $813,000 in 2Q24Gross margin as a percent of revenue increased from 41% in 3Q23 to 66.5% in 3Q24, and this increase was driven primarily by increased volume in manufacturingClosed a $732,000 underwritten public offering of shares of common stock
Recent Corporate Highlights
Announced a complete rebranding of the Company to NEWTON GOLF CompanyLaunched the new Gravity Premium putter line with the introduction of five modelsExpanded the Company's global presence with the launch of the Newton Motion shafts in Japan in 50 of its largest golf retail locationsIncreased the number of professionals using the Newton Motion Shafts on the PGA TOUR Champions to 34, generating greater exposureIntroduced the new advanced performance shafts for higher swing speeds
NEWTON GOLF Executive Chairman Greg Campbell commented, "We are encouraged by the very strong sales growth in the third quarter that was driven by the continued adoption of our Newton Motion replacement driver shafts and the first full quarter of revenue from our fairway woods replacement shafts. These revolutionary products have been a hit with professionals and amateurs alike and speak to the quality engineering and craftsmanship that go into every shaft we make. Our recent rebranding as NEWTON GOLF speaks to these very design principles that are at the foundation of our products, including the recently introduced NEWTON Golf Gravity line of putters. As an emerging golf brand, the ability of our products to connect with golfers across the world is important. We believe the early traction our products are getting here in the U.S., as well as overseas in the Japanese and Korean markets, portends well for the future growth of our entire product line.”
About NEWTON GOLF: A Sacks Parente Company
NEWTON GOLF: A Sacks Parente Company, is a technology-forward golf company that help golfers elevate their game. With a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, the Company's innovative accomplishments include: the First Vernier Acuity putter, patented Ultra-Low Balance Point (ULBP) putter technology, weight-forward Center-of-Gravity (CG) design, and pioneering ultra-light carbon fiber putter shafts.
In consideration of its growth opportunities in golf shaft technologies, the Company expanded its manufacturing business in April of 2022 to develop the advanced Newton brand of premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. It is the Company's intent to manufacture and assemble substantially all products in the United States, while also expanding into golf apparel and other golf-related product lines to enhance its growth.
The Company's future expansions may include broadening its offerings through mergers, acquisitions or internal developments of product lines that are complementary to its premium brand. The Company currently sells its products through resellers, the Company's websites, Club Champion retail stores, and distributors in the United States, Japan, and South Korea.
For more information, please visit the Company's website at www.newtongolfco.com or on social media at @newtongolfco.com, @newtonshafts, or @gravityputters.
Forward Looking Statements
This press release contains statements that constitute "forward-looking statements,” including with respect to the proposed initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the Company's offering filed with the SEC. Copies of these documents are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Company:
Doug Samuelson, CFO
NEWTON GOLF Company
Email: investors@sacksparente.com
Investor Contact for NEWTON GOLF
CORE IR
516-222-2560
investors@sacksparente.com
SACKS PARENTE GOLF, INC.
Condensed Balance Sheets
(Amounts rounded to nearest thousands, except share amounts)
September 30, December 31, 2024 2023 (Unaudited) ASSETS Current Assets Cash and cash equivalents $1,313,000 $5,338,000 Accounts receivable 171,000 53,000 Inventory, net of reserve for obsolescence of $51,000 and $98,000, respectively 625,000 248,000 Prepaid expenses and other current assets 325,000 196,000 Total Current Assets 2,434,000 5,835,000 Property and equipment, net 721,000 379,000 Right of use asset 42,000 65,000 Software licensing agreement, net 68,000 110,000 Deferred offering costs 94,000 - Deposits 5,000 5,000 Total Other Assets 930,000 559,000 TOTAL ASSETS $3,364,000 $6,394,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses $585,000 $401,000 Lease liability, current 33,000 31,000 Software licensing obligation, current 54,000 41,000 Customer deposits - 2,000 Total Current Liabilities 672,000 475,000 Software licensing fee obligation, net of current 45,000 95,000 Lease liabilities, net of current 9,000 34,000 Total Liabilities 726,000 604,000 Shareholders' Equity Preferred stock, par value $0.01, 5,000,000 shares authorized; no shares issued and outstanding, respectively - - Common stock, par value $0.01, 45,000,000 shares authorized; 1,459,587 shares issued and outstanding, respectively 15,000 15,000 Additional paid-in capital 16,348,000 16,092,000 Accumulated deficit (13,725,000) (10,317,000)Total Shareholders' Equity 2,638,000 5,790,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,364,000 $6,394,000
SACKS PARENTE GOLF, INC.
Condensed Statements of Operations
(Amounts rounded to nearest thousands, except share amounts)
Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) Revenues $1,211,000 $95,000 $2,374,000 $232,000 Cost of goods sold 406,000 56,000 874,000 $134,000 Gross profit 805,000 39,000 1,500,000 98,000 Operating expenses: Research and development 201,000 15,000 598,000 58,000 Selling, general and administrative 1,694,000 1,195,000 4,449,000 2,758,000 Total operating expenses 1,895,000 1,210,000 5,047,000 2,816,000 Loss from operations (1,090,000) (1,171,000) (3,547,000) (2,718,000) Other income (expenses): Interest expense - (26,000) - (68,000)Interest income 30,000 - 139,000 - Total other income (expenses) 30,000 (26,000) 139,000 (68,000) NET LOSS $(1,060,000) $(1,197,000) $(3,408,000) $(2,786,000) LOSS PER COMMON SHARE - BASIC AND DILUTED $(0.73) $(0.94) $(2.33) $(2.43) WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING -BASIC AND DILUTED 1,459,587 1,267,430 1,459,587 1,144,260
SACKS PARENTE GOLF, INC.
Condensed Statements of Cash Flows
(Amounts rounded to nearest thousands)
Nine Months Ended September 30, 2024 2023 (Unaudited) Cash Flows from Operating Activities Net loss $(3,408,000) $(2,786,000) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 121,000 15,000 Amortization of deferred software licensing agreement 42,000 - Change in reserve for inventory obsolescence (47,000) 46,000 Vesting of options 256,000 367,000 Shares issued for services - 225,000 Right-of-use asset 23,000 23,000 Changes in Assets and Liabilities
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