Sacks Parente Golf, Inc. Reports First Quarter 2024 Financial Results and Provides Corporate Update
Camarillo, Calif., April 30, 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 first quarter ended March 31, 2024 and provides a business update.
Financial Highlights
- Revenue of $350k in 1Q24 exceeded all of FY2023 revenue
- April 2024 is expected to be record revenue month, and 2Q24 revenue is expected to grow 100% sequentially over 1Q24
Recent Corporate Highlights
- Expanded its Newton Golf Shaft division with the addition of Newton Motion Fairway Wood shaft to complement its initial Newton Motion Driver shaft
- Introduced a unique incentive program for golf professionals, custom club fitters, and golf instructors to help drive revenue growth from the Company’s Sacks Parente line of putters
- Introduced an innovative putter demo program that offers golfers the opportunity to test its premium putters prior to purchase
- Announced that the Company’s premium putters and Newton Motion driver shafts were available in all 126 Club Champion retail stores nationwide. The Company expects to see accelerated quarterly revenue from this relationship begining in 2Q24
- Entered into player agreements for Newton Motion shaft sponsorships with Ken Duke (PGA Tour Champions), Gene Sauers (PGA Tour Champions), and Fernandra Lira (LET/LPGA/Epson Tours)
- Appointed golf-industry veteran Jane Casanta to the Board of Directors
“Our marketing efforts -- especially through paid social advertising -- over the last six months for both our premium line of putters and our advanced Newton Motion replacement shafts are helping to build brand awareness and accelerate our revenue growth,” commented Greg Campbell, Sacks Parente’s Executive Chairman. “The launch of the Newton Motion Driver shaft in November has been met with very positive early adoption, including from some professionals, which gives us confidence that the recent launch of the Newton Motion Fairway Wood shaft will be met with similar success. Much of the revenue growth in the first quarter was tied to traction from the Newton Motion Driver shaft introduction, allowing us to deliver higher revenue than we did in all of 2023. We expect this momentum to continue, as April will be a record revenue month for us and we see second quarter revenue doubling that from the first quarter. We are entering the seasonally stronger golf season throughout the U.S., and along with our continued traction in key international markets, we look forward to continued brand building and revenue growth.”
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, Japan, and South Korea. For more information, please visit the Company’s website at https://sacksparente.com/. @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)
| March 31, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,083,000 | $ | 5,338,000 | ||||
| Accounts receivable | 30,000 | 53,000 | ||||||
| Inventory, net of reserve for obsolescence of $51,000 and $98,000, respectively | 336,000 | 248,000 | ||||||
| Prepaid expenses and other current assets | 234,000 | 196,000 | ||||||
| Total Current Assets | 4,683,000 | 5,835,000 | ||||||
| Property and equipment, net | 441,000 | 379,000 | ||||||
| Right-of-use asset, net | 58,000 | 65,000 | ||||||
| Software licensing agreement, net | 102,000 | 110,000 | ||||||
| Deposits | 5,000 | 5,000 | ||||||
| Total Assets | $ | 5,289,000 | $ | 6,394,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 404,000 | $ | 401,000 | ||||
| Lease liability, current | 31,000 | 31,000 | ||||||
| Software licensing obligation | 54,000 | 41,000 | ||||||
| Customer deposits | - | 2,000 | ||||||
| Total Current Liabilities | 489,000 | 475,000 | ||||||
| Software licensing fee obligation, net of current | 77,000 | 95,000 | ||||||
| Lease liability, net of current | 27,000 | 34,000 | ||||||
| Total Liabilities | 593,000 | 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, 14,595,870 and 14,595,870, shares issued and outstanding, respectively | 146,000 | 146,000 | ||||||
| Additional paid-in-capital | 16,060,000 | 15,961,000 | ||||||
| Accumulated deficit | (11,510,000 | ) | (10,317,000 | ) | ||||
| Total Stockholders’ Equity | 4,696,000 | 5,790,000 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 5,289,000 | $ | 6,394,000 | ||||
SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2024 and 2023
(Unaudited)
(Amounts rounded to nearest thousands, except share and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Net Sales | $ | 350,000 | $ | 90,000 | ||||
| Cost of goods sold | 144,000 | 46,000 | ||||||
| Gross profit | 206,000 | 44,000 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expense | 1,271,000 | 916,000 | ||||||
| Research and development expense | 190,000 | 25,000 | ||||||
| Total operating expenses | 1,461,000 | 941,000 | ||||||
| Loss from operations | (1,255,000 | ) | (897,000 | ) | ||||
| Interest income (expense), net | 62,000 | (20,000 | ) | |||||
| Net Loss | $ | (1,193,000 | ) | $ | (917,000 | ) | ||
| Loss per share – basic and diluted | $ | (0.08 | ) | $ | (0.08 | ) | ||
| Weighted average number of shares outstanding – basic and diluted | 14,595,870 | 10,798,834 | ||||||
SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2024 and 2023
(Unaudited)
(Amounts rounded to nearest thousands)
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net Loss | $ | (1,193,000 | ) | $ | (917,000 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 21,000 | 5,000 | ||||||
| Amortization of deferred software licensing agreement | 29,000 | - | ||||||
| Change in reserve for inventory obsolescence | (47,000 | ) | 24,000 | |||||
| Vesting of options | 99,000 | 63,000 | ||||||
| Shares issued for services | - | 225,000 | ||||||
| Changes in ROU asset | 7,000 | 7,000 | ||||||
| Accrued interest | - | 20,000 | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts receivable | 23,000 | (19,000 | ) | |||||
| Inventory | (41,000 | ) | 23,000 | |||||
| Prepaids and other current assets | (38,000 | ) | 1,000 | |||||
| Accounts payable and accrued expenses | 3,000 | 53,000 | ||||||
| Accrued payroll to officers | - | 358,000 | ||||||
| Lease liability | (7,000 | ) | (8,000 | ) | ||||
| Software licensing obligation | (5,000 | ) | - | |||||
| Customer deposits | (2,000 | ) | (21,000 | ) | ||||
| Net cash used in operating activities | (1,151,000 | ) | (186,000 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Software licensing agreement | (21,000 | ) | ||||||
| Purchase of property and equipment | (83,000 | ) | - | |||||
| Net cash used in investing activities | (104,000 | ) | - | |||||
| Cash Flows from Financing Activities | ||||||||
| Payment of equipment purchase obligation | - | (15,000 | ) | |||||
| Proceeds from private sale of common stock subject to possible redemption | - | 60,000 | ||||||
| Net cash provided by financing activities | - | 45,000 | ||||||
| Net decrease in cash | (1,255,000 | ) | (141,000 | ) | ||||
| Cash and cash equivalents and restricted cash beginning of period | 5,338,000 | 171,000 | ||||||
| Cash and cash equivalents and restricted cash end of period | $ | 4,083,000 | $ | 30,000 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | - | $ | - | ||||
| Cash paid for income taxes | $ | - | $ | - | ||||
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