Newton Golf Company Reports 887% Revenue Growth but Faces $11.8 Million Net Loss

Newton Golf Company, Inc., formerly known as Sacks Parente Golf, Inc., reported significant financial developments in its recent 10-K filing for the fiscal year ending December 31, 2024. The company achieved net sales of approximately $3.4 million, a substantial increase of 887% compared to $349,000 in the previous year. This growth was primarily driven by the introduction of the Newton Motion driver and fairway shafts, which accounted for $2.9 million of the total sales. However, the company also reported a net loss of $11.8 million, a 154% increase from the $4.6 million loss recorded in 2023, largely due to increased operating expenses and financing costs.

In terms of operational changes, Newton Golf expanded its product portfolio with the launch of the Newton Motion shafts in late 2023 and early 2024. The company also relocated its primary assembly facility to St. Joseph, Missouri, and plans to enhance its distribution capabilities in Asia, particularly in Japan and South Korea. As of December 31, 2024, the company had 28 full-time employees, reflecting its commitment to maintaining a lean operational structure while pursuing growth opportunities.

The company’s financial health raised concerns, as it reported a stockholders' deficit of $5.2 million and incurred cash used in operations of $4.9 million during the year. Despite having cash and cash equivalents of $7.7 million at year-end, the company’s independent auditors expressed substantial doubt about its ability to continue as a going concern. Management indicated that the cash on hand is expected to last for at least the next 12 months, but future financing will be necessary to sustain operations and support growth initiatives.

Strategically, Newton Golf has engaged in several public offerings to bolster its capital. In August 2023, the company raised approximately $11.6 million through an initial public offering, followed by additional offerings in October and December 2024, which collectively generated around $8 million. The company also underwent two reverse stock splits in 2024 and 2025 to comply with Nasdaq listing requirements, which have been a significant focus for management as they navigate the challenges of maintaining compliance with stock exchange regulations.

Looking ahead, Newton Golf aims to expand its product lines further, including potential entry into the golf apparel market. The company is also focused on enhancing its marketing efforts to increase brand awareness and drive sales. However, management acknowledges the competitive landscape and the need to adapt to changing market conditions, particularly in light of economic uncertainties and fluctuating consumer demand for golf products.