Newton Golf Company Reports $2.58 Million in Q3 Sales, Faces $1.58 Million Net Loss

Newton Golf Company, Inc. reported significant financial developments in its latest 10-Q filing for the third quarter of 2025, revealing a net sales increase to $2.58 million for the three months ending September 30, 2025, compared to $1.21 million during the same period in 2024. For the nine months ending September 30, 2025, net sales reached $5.86 million, up from $2.37 million in the prior year. The company's gross profit also improved, totaling $1.73 million for the third quarter and $3.99 million for the nine-month period, compared to $805,000 and $1.5 million, respectively, in 2024. However, the company reported a net loss of $1.58 million for the third quarter, widening from a loss of $1.06 million in the same quarter last year.

The financial performance reflects a strategic shift in the company's operations, including a name change from Sacks Parente Golf, Inc. to Newton Golf Company, Inc. in March 2025, aimed at aligning the brand with its commitment to innovation in golf technology. The company has also expanded its product offerings, particularly in golf shafts, and plans to enter the golf apparel market. The increase in sales is attributed to a rise in online sales, which accounted for $2.37 million in the third quarter, compared to $1.15 million in the same period last year.

Operationally, Newton Golf has seen a notable increase in its customer base and product adoption rates. The company reported a significant rise in the number of shares outstanding, with 4.65 million shares as of September 30, 2025, compared to 297,184 shares at the end of 2024. This increase is partly due to the exercise of warrants and stock options, which contributed to a higher additional paid-in capital of $29.2 million, up from $16.9 million at the end of the previous fiscal year. The company’s total liabilities decreased significantly from $14.95 million at the end of 2024 to $2.2 million as of September 30, 2025, primarily due to a reduction in warrant liabilities.

Despite the positive sales trajectory, the company faces challenges, including a net loss of $3.63 million for the nine months ending September 30, 2025, compared to a loss of $3.41 million in the same period of 2024. The company has indicated that its cash reserves, which stood at $2.55 million at the end of the reporting period, are expected to last for at least five months. To bolster liquidity, Newton Golf entered into an At-The-Market Sales Offering Agreement with Kingswood Capital Partners, allowing it to sell up to $10 million in common stock, contingent on market conditions.

Looking ahead, Newton Golf Company remains focused on expanding its product lines and enhancing its market presence. The company is exploring opportunities for mergers and acquisitions to complement its premium brand and is committed to manufacturing its products primarily in the United States. However, the company acknowledges the need for additional financing to sustain operations and achieve positive cash flow, emphasizing the uncertainty surrounding its ability to continue as a going concern without securing necessary capital.