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Sacks Parente Golf, Inc. Reports Second Quarter 2024 Financial Results and Provides Corporate Update

Camarillo, Calif., Aug. 05, 2024 (GLOBE NEWSWIRE) — Sacks Parente Golf, Inc. (NASDAQ: SPGC), (the “Company” or “Sacks Parente”), a technology-forward golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, reports its financial results for its fiscal second quarter ended June 30, 2024 and provides a business update.

Financial Highlights

Recent Corporate Highlights

“Brand recognition and sales of our Newton Motion replacement shafts surged in the second quarter and has continued into the third quarter. Revenue more than doubled in the second quarter from the first quarter thanks to this product momentum in the Newton segment, and we currently see revenue accelerating sequentially in the third quarter,” commented Greg Campbell, Sacks Parente’s Executive Chairman. “Our advertising efforts continue to pay off handsomely, and we are seeing more momentum for our Newton driver shaft among the players on the PGA TOUR Champions. These are competitive professionals who recognize and appreciate superior products, so it is gratifying to know that our engineering and product development have hit the mark with this very elite group. It is also rewarding to receive similarly positive feedback from ‘weekend golfers’ with regard to how Newton Motion shafts have added distance and control to their game. We look forward to additional revenue growth and brand building in the third quarter.”

About Sacks Parente Golf

Sacks Parente Golf, Inc. serves as the parent entity of technology-forward golf companies 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, China, Japan, and South Korea. For more information, please visit the Company’s website at https://sacksparente.com/. Additional social media: @sacksparentegolf @newtonshafts

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.

Contacts:

Company:
Steve Handy, CFO
Sacks Parente Golf, Inc.
Email: investors@sacksparente.com
www.sacksparente.com

Investor Relations:
CORE IR
Email: investors@sacksparente.com
Phone: (516) 222-2560

SACKS PARENTE GOLF, INC.
CONDENSED BALANCE SHEETS
(Amounts rounded to nearest thousands, except share amounts)

    June 30,
2024
    December 31,
2023
 
      (Unaudited)          
                 
ASSETS                
Current Assets:                
Cash and cash equivalents   $ 2,786,000     $ 5,338,000  
Accounts receivable     157,000       53,000  
Inventory, net of reserve for obsolescence of $51,000 and $98,000, respectively     477,000       248,000  
Prepaid expenses and other current assets     171,000       196,000  
Total Current Assets     3,591,000       5,835,000  
                 
Property and equipment, net     504,000       379,000  
Right-of-use asset, net     50,000       65,000  
Software licensing agreement, net     76,000       110,000  
Deposits     5,000       5,000  
Total Assets   $ 4,226,000     $ 6,394,000  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current Liabilities:                
Accounts payable and accrued expenses   $ 437,000     $ 401,000  
Lease liability, current     32,000       31,000  
Software licensing obligation, current     54,000       41,000  
Customer deposits           2,000  
Total Current Liabilities     523,000       475,000  
                 
Software licensing fee obligation, net of current     59,000       95,000  
Lease liability, net of current     17,000       34,000  
Total Liabilities     599,000       604,000  
                 
Commitments and Contingencies                
                 
Stockholders’ Equity:                
Preferred stock $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding            
Common stock, $.01 par value, 45,000,000 shares authorized, 1,459,587 and 1,459,587, shares issued and outstanding, respectively     15,000       15,000  
Additional paid-in-capital     16,277,000       16,092,000  
Accumulated deficit     (12,665,000 )     (10,317,000 )
Total Stockholders’ Equity     3,627,000       5,790,000  
                 
Total Liabilities and Stockholders’ Equity   $ 4,226,000     $ 6,394,000  

SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited)
 (Amounts rounded to nearest thousands, except share amounts)

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2024     2023     2024     2023  
             
Net Sales   $ 813,000     $ 47,000     $ 1,163,000     $ 137,000  
Cost of goods sold     324,000       32,000       468,000       78,000  
Gross profit     489,000       15,000       695,000       59,000  
                                 
Operating expenses                                
Selling, general and administrative expenses     1,484,000       647,000       2,755,000       1,563,000  
Research and development     207,000       18,000       397,000       43,000  
Total operating expenses     1,691,000       665,000       3,152,000       1,606,000  
                                 
Loss from operations     (1,202,000 )     (650,000 )     (2,457,000 )     (1,547,000 )
                                 
Interest income (expense), net     47,000       (22,000 )     109,000       (42,000 )
                                 
Net loss   $ (1,155,000 )   $ (672,000 )   $ (2,348,000 )   $ (1,589,000 )
                                 
Net loss per share – basic and diluted   $ (0.79 )   $ (0.62 )   $ (1.61 )   $ (1.47 )
                                 
Weighted average common shares outstanding – basic and diluted     1,459,587       1,083,450       1,459,587       1,081,654  

The accompanying notes are an integral part of these financial statements.

SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2024 and 2023
(Unaudited)
(Amounts rounded to nearest thousands)

    Six Months Ended
June 30,
 
    2024     2023  
             
Cash Flows from Operating Activities                
Net Loss   $ (2,348,000 )   $ (1,589,000 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation     63,000       10,000  
Amortization of deferred software licensing agreement     34,000        
Change in reserve for inventory obsolescence     (47,000 )     25,000  
Vesting of options     185,000       227,000  
Shares issued for services           225,000  
Changes in ROU asset     15,000       15,000  
Accrued interest           42,000  
Changes in operating assets and liabilities                
Accounts receivable     (104,000 )     (6,000 )
Inventory     (182,000 )     22,000  
Prepaids and other current assets     25,000       13,000  
Accounts payable and accrued expenses     36,000       67,000  
Accrued payroll to officers           653,000  
Lease liability     (16,000 )     (17,000 )
Customer deposits     (2,000 )      
Net cash used in operating activities     (2,341,000 )     (313,000 )
                 
Cash Flows from Investing Activities                
Purchase of property and equipment     (188,000 )     (3,000 )
Net cash used in investing activities     (188,000 )     (3,000 )
                 
Cash Flows from Financing Activities                
Software licensing obligation     (23,000 )      
Payment of equipment purchase obligation           (15,000 )
Deferred offering costs           (11,000 )
Proceeds from private sale of common stock subject to possible redemption           180,000  
Net cash provided by financing activities     (23,000 )     154,000  
                 
Net decrease in cash     (2,552,000 )     (162,000 )
Cash and restricted cash beginning of period     5,338,000       171,000  
Cash and restricted cash end of period   $ 2,786,000     $ 9,000  
                 
Supplemental disclosures of cash flow information:                
Cash paid for interest   $     $  
Cash paid for income taxes   $     $  
                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                
Accrued deferred offering costs   $     $ 177,000  
New right of use asset and lease liability   $     $ 43,000  


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