SPGC Sacks Parente Golf Inc

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 second quarter ended June 30, 2024 and provides a business update.

Financial Highlights

• Revenue of $813,000 in 2Q24 increased 132% sequentially from $350,000 in 1Q24
• Gross margin of 60% in 2Q24 and for the six months ended June 30, 2024 was driven by sales of higher-margin Newton shafts that accounted for approximately 80% of the Company’s revenue over the first two quarters of 2024
• Significant increase in orders received from Club Champion during the 2Q24

Recent Corporate Highlights

• Introduced a Weekly Driver Performance Pool program for players on the PGA TOUR Champions that use the Company’s Newton Motion driver shafts in tournaments
• Expanded the Newton Golf Shaft division with the addition of the Newton Motion Fairway Wood shaft to complement the initial Newton Motion Driver shaft

“Brand recognition and sales of our Newton Motion replacement shafts surged in the second quarter and has continued into the third quarter. Revenue more than doubled in the second quarter from the first quarter thanks to this product momentum in the Newton segment, and we currently see revenue accelerating sequentially in the third quarter,” commented Greg Campbell, Sacks Parente’s Executive Chairman. “Our advertising efforts continue to pay off handsomely, and we are seeing more momentum for our Newton driver shaft among the players on the PGA TOUR Champions. These are competitive professionals who recognize and appreciate superior products, so it is gratifying to know that our engineering and product development have hit the mark with this very elite group. It is also rewarding to receive similarly positive feedback from ‘weekend golfers’ with regard to how Newton Motion shafts have added distance and control to their game. We look forward to additional revenue growth and brand building in the third quarter.”

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, China, Japan, and South Korea. For more information, please visit the Company’s website at https://sacksparente.com/. Additional social media: @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, CFOSacks Parente Golf, Inc.Email: investors@sacksparente.comwww.sacksparente.com

Investor Relations:CORE IREmail: investors@sacksparente.comPhone: (516) 222-2560

SACKS PARENTE GOLF, INC.CONDENSED BALANCE SHEETS(Amounts rounded to nearest thousands, except share amounts)

		June 30, 2024				December 31,2023
			(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	2,786,000			$	5,338,000
Accounts receivable			157,000				53,000
Inventory, net of reserve for obsolescence of $51,000 and $98,000, respectively			477,000				248,000
Prepaid expenses and other current assets			171,000				196,000
Total Current Assets			3,591,000				5,835,000
Property and equipment, net			504,000				379,000
Right-of-use asset, net			50,000				65,000
Software licensing agreement, net			76,000				110,000
Deposits			5,000				5,000
Total Assets		$	4,226,000			$	6,394,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses		$	437,000			$	401,000
Lease liability, current			32,000				31,000
Software licensing obligation, current			54,000				41,000
Customer deposits			-				2,000
Total Current Liabilities			523,000				475,000
Software licensing fee obligation, net of current			59,000				95,000
Lease liability, net of current			17,000				34,000
Total Liabilities			599,000				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, 1,459,587 and 1,459,587, shares issued and outstanding, respectively			15,000				15,000
Additional paid-in-capital			16,277,000				16,092,000
Accumulated deficit			(12,665,000	)			(10,317,000	)
Total Stockholders’ Equity			3,627,000				5,790,000
Total Liabilities and Stockholders’ Equity		$	4,226,000			$	6,394,000

SACKS PARENTE GOLF, INC.CONDENSED STATEMENTS OF OPERATIONSFor the Three and Six Months Ended June 30, 2024 and 2023(Unaudited) (Amounts rounded to nearest thousands, except share amounts)

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Net Sales		$	813,000			$	47,000			$	1,163,000			$	137,000
Cost of goods sold			324,000				32,000				468,000				78,000
Gross profit			489,000				15,000				695,000				59,000
Operating expenses
Selling, general and administrative expenses			1,484,000				647,000				2,755,000				1,563,000
Research and development			207,000				18,000				397,000				43,000
Total operating expenses			1,691,000				665,000				3,152,000				1,606,000
Loss from operations			(1,202,000	)			(650,000	)			(2,457,000	)			(1,547,000	)
Interest income (expense), net			47,000				(22,000	)			109,000				(42,000	)
Net loss		$	(1,155,000	)		$	(672,000	)		$	(2,348,000	)		$	(1,589,000	)
Net loss per share – basic and diluted		$	(0.79	)		$	(0.62	)		$	(1.61	)		$	(1.47	)
Weighted average common shares outstanding – basic and diluted			1,459,587				1,083,450				1,459,587				1,081,654

The accompanying notes are an integral part of these financial statements.

SACKS PARENTE GOLF, INC.CONDENSED STATEMENTS OF CASH FLOWSFor the Six Months Ended June 30, 2024 and 2023(Unaudited)(Amounts rounded to nearest thousands)

				Six Months Ended June 30,
				2024						2023
Cash Flows from Operating Activities
Net Loss				$	(2,348,000		)			$	(1,589,000		)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation					63,000						10,000
Amortization of deferred software licensing agreement					34,000						-
Change in reserve for inventory obsolescence					(47,000		)				25,000
Vesting of options					185,000						227,000
Shares issued for services					-						225,000
Changes in ROU asset					15,000						15,000
Accrued interest					-						42,000
Changes in operating assets and liabilities
Accounts receivable					(104,000		)				(6,000		)
Inventory					(182,000		)				22,000
Prepaids and other current assets					25,000						13,000
Accounts payable and accrued expenses					36,000						67,000
Accrued payroll to officers					-						653,000
Lease liability					(16,000		)				(17,000		)
Customer deposits					(2,000		)				-
Net cash used in operating activities					(2,341,000		)				(313,000		)
Cash Flows from Investing Activities
Purchase of property and equipment					(188,000		)				(3,000		)
Net cash used in investing activities					(188,000		)				(3,000		)
Cash Flows from Financing Activities
Software licensing obligation					(23,000		)				-
Payment of equipment purchase obligation					-						(15,000		)
Deferred offering costs					-						(11,000		)
Proceeds from private sale of common stock subject to possible redemption					-						180,000
Net cash provided by financing activities					(23,000		)				154,000
Net decrease in cash					(2,552,000		)				(162,000		)
Cash and restricted cash beginning of period					5,338,000						171,000
Cash and restricted cash end of period				$	2,786,000					$	9,000
Supplemental disclosures of cash flow information:
Cash paid for interest				$	-					$	-
Cash paid for income taxes				$	-					$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued deferred offering costs				$	-					$	177,000
New right of use asset and lease liability				$	-					$	43,000