Sacks Parente Golf, Inc. Reports Third Quarter 2023 Financial Results and Provides Corporate Update

Rhea-AI Summary

Sacks Parente Golf, Inc. (NASDAQ:SPGC) reports a 98% year-over-year revenue growth in their fiscal third quarter, following their successful $11.6 million IPO in mid-August 2023. The company also appointed Scott White as Chief Operating Officer and is expanding their manufacturing facility for increased production of putters and their new line of Newton carbon fiber shafts, with a focus on international sales.

Positive

• Successful $11.6 million IPO raised in mid-August 2023
• 98% year-over-year revenue growth in the third quarter
• Appointment of Scott White as Chief Operating Officer
• Expansion of manufacturing facility for increased production of putters and new line of Newton carbon fiber shafts
• Focus on international sales to grow meaningful levels

Negative

• None.

Camarillo, CA., Nov. 09, 2023 (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 putting instruments, golf shafts, golf grips, and other golf-related accessories, reports financial results for its fiscal third quarter ended September 30, 2023 and provides a business update.

Recent Corporate Highlights

• Completed Initial Public Offering (IPO) transaction in mid-August 2023 that raised $11.6 million in proceeds, net of underwriting fees
• Third quarter revenue growth increased 98% year-over-year
• Appointed golf industry veteran Scott White as Chief Operating Officer
  

Timothy Triplett, Sacks Parente Golf’s Chief Executive Officer, commented, “With the proceeds from our recent IPO, we have continued to build out our Missouri manufacturing facility in preparation for increased production of both our Sacks Parente putters and our soon-to-be-launched new line of Newton carbon fiber shafts. Just as our line of putters have been shown in independent testing to lead to more made putts, early test data on our Newton shafts confirm our expectations that golfers will enjoy more accurate control from their drives. From the first tee shot to the final putt, we are convinced golfers of all ages and skill levels should be able to benefit from our advanced product lines.

“Revenue in the third quarter increased 98% year-over-year and was positively impacted by increased shipments of our Sacks Parente line of putters to our distributor in Korea. Korea is the world’s third largest golf market, and also the fastest growing golf market, and a key strategic goal of the Company over the next few years is growing international sales to meaningful levels,” concluded Mr. Triplett.

About Sacks Parente Golf

Sacks Parente Golf, Inc. is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. 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 while pioneering ultra-light carbon fiber putter shafts. In consideration of its growth opportunities in shaft technologies, in April of 2022 the Company expanded its manufacturing business to include advanced 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. The Company anticipates expansion 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, and distributors in the United States, Japan, and South Korea.

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)

		September 30, 2023				December 31, 2022
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	6,768,000			$	147,000
Restricted cash			-				24,000
Accounts receivable			18,000				2,000
Inventory, net of reserve for obsolescence of $119,000 and $73,000, respectively			165,000				142,000
Prepaid expenses and other current assets			766,000				16,000
Total Current Assets			7,717,000				331,000
Property and equipment, net			208,000				122,000
Right-of-use asset, net			42,000				22,000
Deferred offering costs			-				230,000
Deposits			5,000				5,000
Total Assets		$	7,972,000			$	710,000
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)
Current Liabilities:
Accounts payable and accrued expenses		$	375,000			$	97,000
Accrued payroll to executives			-				1,095,000
Lease liability, current			33,000				17,000
Equipment purchase obligation			-				15,000
Loans payable – related parties			-				537,000
Notes payable (past due)			-				384,000
Customer deposits			2,000				21,000
Total Current Liabilities			410,000				2,166,000
Lease liability, net of current			9,000				6,000
Total Liabilities			419,000				2,172,000
Common stock subject to possible redemption (561,375 shares at redemption price of $1.07)			-				420,000
Commitments and Contingencies
Stockholders’ Equity (Deficiency):
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 10,784,495, shares issued and outstanding, respectively, excluding 561,375 shares subject to possible redemption at December 31, 2022			146,000				108,000
Additional paid-in-capital			15,885,000				3,702,000
Accumulated deficit			(8,478,000	)			(5,692,000	)
Total Stockholders’ Equity (Deficiency)			7,553,000				(1,882,000	)
Total Liabilities and Stockholders’ Equity (Deficiency)		$	7,972,000			$	710,000

SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2023 and 2022
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net Sales		$	95,000			$	48,000			$	232,000			$	157,000
Cost of goods sold			56,000				27,000				134,000				70,000
Gross profit			39,000				21,000				98,000				87,000
Operating expenses
Selling, general and administrative expenses	(a)		1,195,000				520,000				2,758,000				2,429,000
Research and development			15,000				33,000				58,000				43,000
Total operating expenses			1,210,000				553,000				2,816,000				2,472,000
Loss from operations			(1,171,000	)			(532,000	)			(2,718,000	)			(2,385,000	)
Other expenses
Interest, net			(26,000	)			(16,000	)			(68,000	)			(23,000	)
Loss on extinguishment of debt			-				-				-				(574,000	)
Total other expenses			(26,000	)			(16,000	)			(68,000	)			(597,000	)
Net loss		$	(1,197,000	)		$	(548,000	)		$	(2,786,000	)		$	(2,982,000	)
Net loss per share – basic and diluted		$	(0.09	)		$	(0.05	)		$	(0.24	)		$	(0.29	)
Weighted average common shares outstanding – basic and diluted			12,674,298				10,784,495				11,442,597				10,311,465

(a) The increase in selling, general and administrative expenses for the three months ended September 30, 2023, was from increased legal and professional fees of $224,000, increased public company related costs of $135,000, increased employee related expenses of $121,000, increased stock based compensation costs of $95,000, increased sales and marketing related expense of $55,000, and increased other general operating expenses of $45,000 over the prior year period.

SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2023 and 2022
(Unaudited)
(Amounts rounded to nearest thousands)

		Nine Months Ended September 30,
		2023				2022
Cash Flows from Operating Activities
Net Loss		$	(2,786,000	)		$	(2,982,000	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			15,000				6,000
Change in reserve for inventory obsolescence			46,000				(25,000	)
Vesting of options			367,000				1,344,000
Vesting of restricted stock			-				25,000
Modification of equity awards			-				28,000
Loss on extinguishment of debt			-				574,000
Shares issued for services			225,000				-
Changes in ROU asset			23,000				8,000
Accrued interest			-				21,000
Changes in operating assets and liabilities
Accounts receivable			(16,000	)			3,000
Inventory			(69,000	)			(11,000	)
Prepaids and other current assets			(750,000	)			(25,000	)
Deposits			-				(1,000	)
Accounts payable and accrued expenses			278,000				64,000
Accrued payroll to officers			(1,095,000	)			408,000
Lease liability			(24,000	)			(8,000	)
Deferred revenue			(19,000	)			(3,000	)
License obligation			-				(1,000	)
Net cash used in operating activities			(3,805,000	)			(575,000	)
Cash Flows from Investing Activities
Purchase of property and equipment			(101,000	)			(75,000	)
Net cash used in investing activities			(101,000	)			(75,000	)
Cash Flows from Financing Activities
Payment of equipment purchase obligation			(15,000	)			(29,000	)
Deferred offering costs			230,000				(230,000	)
Proceeds from private sale of common stock subject to possible redemption			180,000				420,000
Proceeds from public sale of common stock, net			11,029,000				-
Proceeds from notes payable			61,000				100,000
Repayment of notes payable			(445,000	)			-
Proceeds from loans payable – related party			20,000				200,000
Repayment of loans payable – related party			(557,000	)			-
Proceeds from convertible debt obligations			-				150,000
Net cash provided by financing activities			10,503,000				611,000
Net increase (decrease) in cash			6,597,000				(39,000	)
Cash and cash equivalents and restricted cash beginning of period			171,000				184,000
Cash and cash equivalents and restricted cash end of period		$	6,768,000			$	145,000
Supplemental disclosures of cash flow information:
Cash paid for interest		$	-			$	-
Cash paid for income taxes		$	-			$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common shares issued on conversion of convertible debt obligations		$	-			$	1,050,000
New right of use asset and lease liability		$	43,000			$	34,000
Property and equipment purchased with debt		$	-			$	58,000
Reclass of common stock subject to redemption to equity		$	420,000			$	-

FAQ

What is the ticker symbol for Sacks Parente Golf, Inc.?

The ticker symbol for Sacks Parente Golf, Inc. is NASDAQ:SPGC.

What were the recent corporate highlights for Sacks Parente Golf, Inc.?

The recent corporate highlights include a successful $11.6 million IPO, 98% year-over-year revenue growth in the third quarter, and the appointment of Scott White as Chief Operating Officer.

What is the strategic goal of Sacks Parente Golf, Inc. over the next few years?

The strategic goal is to grow international sales to meaningful levels, with a focus on the Korean golf market.

Who is the Chief Executive Officer of Sacks Parente Golf, Inc.?

Timothy Triplett is the Chief Executive Officer of Sacks Parente Golf, Inc.