NEWTON GOLF Company Reports Third Quarter 2024 Financial Results
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 2Q24
- Gross 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 manufacturing
- Closed a $732,000 underwritten public offering of shares of common stock
Recent Corporate Highlights
- Announced a complete rebranding of the Company to NEWTON GOLF Company
- Launched the new Gravity Premium putter line with the introduction of five models
- Expanded the Company's global presence with the launch of the Newton Motion shafts in Japan in 50 of its largest golf retail locations
- Increased the number of professionals using the Newton Motion Shafts on the PGA TOUR Champions to 34, generating greater exposure
- Introduced 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: [email protected]
Investor Contact for NEWTON GOLF
CORE IR
516-222-2560
[email protected]
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 | ||||||||
| Accounts receivable | (118,000 | ) | (16,000 | ) | ||||
| Inventory | (330,000 | ) | (69,000 | ) | ||||
| Prepaid expenses and other assets | (129,000 | ) | (750,000 | ) | ||||
| Accounts payable and accrued expenses | 184,000 | 278,000 | ||||||
| Accrued payroll to officers | - | (1,095,000 | ) | |||||
| Lease liability | (23,000 | ) | (24,000 | ) | ||||
| Deferred revenue | - | (19,000 | ) | |||||
| Customer deposits | (2,000 | ) | - | |||||
| Net cash used in operating activities | (3,431,000 | ) | (3,805,000 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Purchases of property and equipment | (463,000 | ) | (101,000 | ) | ||||
| Net cash used in investing activities | (463,000 | ) | (101,000 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Software licensing obligation | (37,000 | ) | - | |||||
| Payment of equipment purchase obligation | - | (15,000 | ) | |||||
| Deferred offering costs | (94,000 | ) | 230,000 | |||||
| Proceeds from private sale of common stock subject to possible redemption | - | 180,000 | ||||||
| Proceeds from public sale of common stock, net | - | 11,029,000 | ||||||
| Proceeds from notes payable | - | 61,000 | ||||||
| Repayment of notes payable | - | (445,000 | ) | |||||
| Proceeds from loans payable – related party | - | 20,000 | ||||||
| Repayment of loans payable – related party | - | (557,000 | ) | |||||
| Proceeds from convertible debt obligations | - | |||||||
| Net cash provided by (used in) financing activities | (131,000 | ) | 10,503,000 | |||||
| Net increase (decrease) in cash | (4,025,000 | ) | 6,597,000 | |||||
| Cash and cash equivalents at the beginning of period | 5,338,000 | 171,000 | ||||||
| Cash and cash equivalents at the end of period | $ | 1,313,000 | $ | 6,768,000 | ||||
| Supplemental cash flows disclosures: | ||||||||
| Interest paid | $ | - | $ | - | ||||
| Taxes paid | $ | - | $ | - | ||||
| Supplemental non-cash financing disclosures: | ||||||||
| New right of use asset and lease liability | $ | - | $ | 43,000 | ||||
| Reclass of common stock subject to redemption to equity | $ | - | $ | 420,000 | ||||
