FY 2023 Highlights
- Raised
$11.6 million in net proceeds from completed IPO inAugust 2023 - Recognized sequentially higher revenue over last three quarters of 2023
- Made significant investment in equipment and facility improvements for manufacturing and distribution facility in
St. Joseph, Mo. - Launched
Newton Motion product line of ready-to-play replacement driver shafts inNovember 2023 , which is expected to generate in excess of 60% of Company revenue in 2024 - Invested in sales and marketing to grow brand awareness of Sacks Parente premium putter family and newly launched
Newton Motion product line - Hired
Scott White , former CEO ofBen Hogan Golf Equipment Company , as Chief Operating Officer
Recent Corporate Highlights
- Anticipating continued sequentially higher revenue throughout 2024 with improved gross margins. The Company is benefitting from accelerating
Newton Motion shaft shipments, including to multiple international customers, efficient marketing ad spend on shafts, and the start of the seasonally strong period of the year with warmer months ahead - 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 withKen Duke (PGA Tour Champions), and Fernandra Lira (LET/LPGA/Epson Tours) - Appointed golf-industry veteran
Jane Casanta to the Board of Directors
“We built a strong foundation in 2023 and are positioned well to execute our strategic plan and grow our revenue in 2024 and beyond,” commented
“The Sacks Parente foundation is in place, we have the resources to execute, and we look forward to sharing our milestones and successes as they unfold,” concluded Campbell.
About Sacks Parente Golf
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
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
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
Contacts:
Company:
Email: investors@sacksparente.com
www.sacksparente.com
Investor Relations:
CORE IR
Email: investors@sacksparente.com
Phone: (516) 222-2560
BALANCE SHEETS
(Amounts rounded to nearest thousands, except share amounts)
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 5,338,000 | $ | 147,000 | ||||
Restricted cash | - | 24,000 | ||||||
Accounts receivable | 53,000 | 2,000 | ||||||
Inventory, net of reserve for obsolescence of | 248,000 | 142,000 | ||||||
Prepaid expenses and other current assets | 196,000 | 16,000 | ||||||
Total Current Assets | 5,835,000 | 331,000 | ||||||
Property and equipment, net | 379,000 | 122,000 | ||||||
Right-of-use asset, net | 65,000 | 22,000 | ||||||
Deferred software licensing agreement | 110,000 | - | ||||||
Deferred offering costs | - | 230,000 | ||||||
Deposits | 5,000 | 5,000 | ||||||
Total Assets | $ | 6,394,000 | $ | 710,000 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY) | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 401,000 | $ | 97,000 | ||||
Accrued payroll to executives | - | 1,095,000 | ||||||
Lease liability, current | 31,000 | 17,000 | ||||||
Deferred software licensing obligation | 41,000 | - | ||||||
Equipment purchase obligation | - | 15,000 | ||||||
Loans payable – related parties | - | 537,000 | ||||||
Notes payable | - | 384,000 | ||||||
Customer deposits | 2,000 | 21,000 | ||||||
Total Current Liabilities | 475,000 | 2,166,000 | ||||||
Software licensing fee obligation, net of current | 95,000 | - | ||||||
Lease liability, net of current | 34,000 | 6,000 | ||||||
Total Liabilities | 604,000 | 2,172,000 | ||||||
Common stock subject to possible redemption (561,375 shares at redemption price of | - | 420,000 | ||||||
Commitments and Contingencies | ||||||||
Stockholders’ Equity (Deficiency): | ||||||||
Preferred stock | - | - | ||||||
Common stock, | 146,000 | 108,000 | ||||||
Additional paid-in-capital | 15,961,000 | 3,702,000 | ||||||
Accumulated deficit | (10,317,000 | ) | (5,692,000 | ) | ||||
Total Stockholders’ Equity (Deficiency) | 5,790,000 | (1,882,000 | ) | |||||
Total Liabilities and Stockholders’ Equity (Deficiency) | $ | 6,394,000 | $ | 710,000 |
STATEMENTS OF OPERATIONS
For the Years Ended
(Amounts rounded to nearest thousands, except share and per share amounts)
Years Ended | ||||||||
2023 | 2022 | |||||||
$ | 349,000 | $ | 190,000 | |||||
Cost of goods sold | 227,000 | 110,000 | ||||||
Gross profit | 122,000 | 80,000 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expense | 4,497,000 | 2,874,000 | ||||||
Research and development expense | 258,000 | 73,000 | ||||||
Total operating expenses | 4,755,000 | 2,947,000 | ||||||
Loss from operations | (4,633,000 | ) | (2,867,000 | ) | ||||
Loss on extinguishment of debt | - | (574,000 | ) | |||||
Interest income (expense), net | 8,000 | (64,000 | ) | |||||
Net Loss | $ | (4,625,000 | ) | $ | (3,505,000 | ) | ||
Loss per share – basic and diluted | $ | (0.38 | ) | $ | (0.34 | ) | ||
Weighted average number of shares outstanding – basic and diluted | 12,237,395 | 10,433,820 |
STATEMENTS OF CASH FLOWS
For the Years Ended
(Amounts rounded to nearest thousands)
Years Ended | ||||||||
2023 | 2022 | |||||||
Cash Flows from Operating Activities | ||||||||
Net Loss | $ | (4,625,000 | ) | $ | (3,505,000 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 32,000 | 11,000 | ||||||
Amortization | 26,000 | - | ||||||
Change in reserve for inventory obsolescence | 25,000 | (36,000 | ) | |||||
Vesting of options | 443,000 | 1,383,000 | ||||||
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 | 30,000 | 12,000 | ||||||
Accrued interest | - | 63,000 | ||||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable | (51,000 | ) | 9,000 | |||||
Inventory | (131,000 | ) | (62,000 | ) | ||||
Prepaids and other current assets | (180,000 | ) | 4,000 | |||||
Deposits | - | (1,000 | ) | |||||
Accounts payable and accrued expenses | 304,000 | 88,000 | ||||||
Accrued payroll to officers | (1,095,000 | ) | 615,000 | |||||
Lease liability | (31,000 | ) | (11,000 | ) | ||||
Customer deposits | (19,000 | ) | 18,000 | |||||
Net cash used in operating activities | (5,047,000 | ) | (785,000 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Purchase of property and equipment | (289,000 | ) | (75,000 | ) | ||||
Net cash used in investing activities | (289,000 | ) | (75,000 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Payment of equipment purchase obligation | (15,000 | ) | (43,000 | ) | ||||
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 | 350,000 | ||||||
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 | 847,000 | ||||||
Net increase (decrease) in cash | 5,167,000 | (13,000 | ) | |||||
Cash and cash equivalents and restricted cash beginning of period | 171,000 | 184,000 | ||||||
Cash and cash equivalents and restricted cash end of period | $ | 5,338,000 | $ | 171,000 | ||||
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 | $ | - | $ | 1,624,000 | ||||
New right of use asset and lease liability | $ | 73,000 | $ | 34,000 | ||||
Recording of deferred software licensing agreement | $ | 136,000 | $ | - | ||||
Property and equipment purchased with debt | $ | - | $ | 58,000 | ||||
Reclass of common stock subject to redemption to equity | $ | 420,000 | $ | - |
Source:
2024 GlobeNewswire, Inc., source