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

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