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


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  $- 




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