Sacks Parente Golf, Inc. Reports Financial Results for First Half 2023 and Provides Corporate Update
September 18 2023 - 8:05AM
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 its financial results for the quarter ended
June 30, 2023, and provides a business update.
Recent Corporate Highlights
- Closed Initial Public Offering
(IPO) transaction in mid-August that raised $11.6 million in
proceeds, net of underwriting fees
- Introduced the Innovative Series 91
“The Duke” putter inspired by PGA TOUR Champions player Ken
Duke
- Ken Duke won his first PGA TOUR
Champions title at the Shaw Charity Classic using a Sacks Parente
Series 66 Anser-style putter
Timothy Triplett, Sacks Parente Golf’s Chief
Executive Officer, commented, “Our recent IPO represents a new
beginning for Sacks Parente, as the capital raised will help us to
expand our product offerings beyond cutting-edge putters and into
cutting-edge shafts, and further penetrate the rapidly growing
Asian golf markets. The IPO proceeds also allowed us to repay
nearly $1 million in debt to become a debt-free company.
“The revenue generated in the first half of 2023
was before our recent IPO. We continue to develop as a company as
we carefully hone what we believe to be a superior line of golf
technology for professional and weekend golfers alike. We look
forward to communicating with our stockholders and future customers
about our entire line of products and to demonstrating significant
shareholder value.”
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, CFOSacks Parente Golf, Inc.Email:
investors@sacksparente.comwww.sacksparente.com
Investor Relations:CORE IREmail:
investors@sacksparente.comPhone: (516)222-2560www.coreir.com
SACKS PARENTE GOLF,
INC.CONDENSED BALANCE
SHEETS(Unaudited -
Amounts rounded to nearest thousands, except share
amounts)
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
9,000 |
|
|
$ |
147,000 |
|
Restricted cash |
|
|
- |
|
|
|
24,000 |
|
Accounts receivable |
|
|
8,000 |
|
|
|
2,000 |
|
Inventory, net of reserve for
obsolescence of $98,000 and $73,000, respectively |
|
|
95,000 |
|
|
|
142,000 |
|
Prepaid expenses and other
current assets |
|
|
3,000 |
|
|
|
16,000 |
|
Total Current Assets |
|
|
115,000 |
|
|
|
331,000 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
115,000 |
|
|
|
122,000 |
|
Right-of-use asset, net |
|
|
50,000 |
|
|
|
22,000 |
|
Deferred offering costs |
|
|
418,000 |
|
|
|
230,000 |
|
Deposits |
|
|
5,000 |
|
|
|
5,000 |
|
Total
Assets |
|
$ |
703,000 |
|
|
$ |
710,000 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ DEFICIENCY |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
341,000 |
|
|
$ |
97,000 |
|
Accrued payroll to
executives |
|
|
1,748,000 |
|
|
|
1,095,000 |
|
Lease liability, current |
|
|
32,000 |
|
|
|
17,000 |
|
Equipment purchase
obligation |
|
|
- |
|
|
|
15,000 |
|
Loans payable – related
parties ($244,000 is past due) |
|
|
559,000 |
|
|
|
537,000 |
|
Notes payable (past due) |
|
|
404,000 |
|
|
|
384,000 |
|
Customer deposits |
|
|
21,000 |
|
|
|
21,000 |
|
Total Current Liabilities |
|
|
3,105,000 |
|
|
|
2,166,000 |
|
|
|
|
|
|
|
|
|
|
Lease liability, net of
current |
|
|
17,000 |
|
|
|
6,000 |
|
Total
Liabilities |
|
|
3,122,000 |
|
|
|
2,172,000 |
|
|
|
|
|
|
|
|
|
|
Common stock subject to
possible redemption (561,375 shares at redemption price of
$1.07) |
|
|
600,000 |
|
|
|
420,000 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
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, 10,834,495 and 10,784,495, shares
issued and outstanding, respectively, excluding 561,375 shares
subject to possible redemption at June 30, 2023 and December 31,
2022 |
|
|
108,000 |
|
|
|
108,000 |
|
Additional
paid-in-capital |
|
|
4,154,000 |
|
|
|
3,702,000 |
|
Accumulated deficit |
|
|
(7,281,000 |
) |
|
|
(5,692,000 |
) |
Total Stockholders’
Deficiency |
|
|
(3,019,000 |
) |
|
|
(1,882,000 |
) |
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Deficiency |
|
$ |
703,000 |
|
|
$ |
710,000 |
|
SACKS PARENTE GOLF,
INC.CONDENSED STATEMENTS OF
OPERATIONSFor the Three and Six Months Ended June
30, 2023 and 2022(Unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Net
Sales |
|
$ |
47,000 |
|
|
$ |
44,000 |
|
|
$ |
137,000 |
|
|
$ |
109,000 |
|
Cost of goods
sold |
|
|
32,000 |
|
|
|
23,000 |
|
|
|
78,000 |
|
|
|
43,000 |
|
Gross
profit |
|
|
15,000 |
|
|
|
21,000 |
|
|
|
59,000 |
|
|
|
66,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
647,000 |
|
|
|
1,724,000 |
|
|
|
1,563,000 |
|
|
|
1,909,000 |
|
Research and development |
|
|
18,000 |
|
|
|
8,000 |
|
|
|
43,000 |
|
|
|
10,000 |
|
Total operating expenses |
|
|
665,000 |
|
|
|
1,732,000 |
|
|
|
1,606,000 |
|
|
|
1,919,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(650,000 |
) |
|
|
(1,711,000 |
) |
|
|
(1,547,000 |
) |
|
|
(1,853,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
(22,000 |
) |
|
|
(5,000 |
) |
|
|
(42,000 |
) |
|
|
(7,000 |
) |
Loss on extinguishment of debt |
|
|
- |
|
|
|
(574,000 |
) |
|
|
- |
|
|
|
(574,000 |
) |
Total other expenses |
|
|
(22,000 |
) |
|
|
(579,000 |
) |
|
|
(42,000 |
) |
|
|
(581,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(672,000 |
) |
|
$ |
(2,290,000 |
) |
|
$ |
(1,589,000 |
) |
|
$ |
(2,434,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share –
basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding – basic and diluted |
|
|
10,834,495 |
|
|
|
10,757,104 |
|
|
|
10,816,539 |
|
|
|
10,104,649 |
|
SACKS PARENTE GOLF,
INC.CONDENSED STATEMENTS OF CASH
FLOWSFor the Six Months Ended June 30, 2023 and
2022(Unaudited)(Amounts rounded
to nearest thousands)
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Cash Flows from Operating
Activities |
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(1,589,000 |
) |
|
$ |
(2,434,000 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
10,000 |
|
|
|
3,000 |
|
Change in reserve for inventory obsolescence |
|
|
25,000 |
|
|
|
(18,000 |
) |
Vesting of options |
|
|
227,000 |
|
|
|
1,300,000 |
|
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 |
|
|
15,000 |
|
|
|
4,000 |
|
Accrued interest |
|
|
42,000 |
|
|
|
6,000 |
|
Changes in operating assets
and liabilities |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(6,000 |
) |
|
|
- |
|
Inventory |
|
|
22,000 |
|
|
|
(8,000 |
) |
Prepaids and other current assets |
|
|
13,000 |
|
|
|
(25,000 |
) |
Deposits |
|
|
- |
|
|
|
(1,000 |
) |
Accounts payable and accrued expenses |
|
|
67,000 |
|
|
|
57,000 |
|
Accrued payroll to officers |
|
|
653,000 |
|
|
|
213,000 |
|
Lease liability |
|
|
(17,000 |
) |
|
|
(4,000 |
) |
Deferred revenue |
|
|
- |
|
|
|
7,000 |
|
License obligation |
|
|
- |
|
|
|
(2,000 |
) |
Net cash used in
operating activities |
|
|
(313,000 |
) |
|
|
(275,000 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Investing
Activities |
|
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(3,000 |
) |
|
|
(35,000 |
) |
Net cash used in
investing activities |
|
|
(3,000 |
) |
|
|
(35,000 |
) |
|
|
|
|
|
|
|
|
|
Cash Flows from Financing
Activities |
|
|
|
|
|
|
|
|
Changes in loans from related parties |
|
|
- |
|
|
|
200,000 |
|
Payment of equipment purchase obligation |
|
|
(15,000 |
) |
|
|
(14,000 |
) |
Deferred offering costs |
|
|
(11,000 |
) |
|
|
(230,000 |
) |
Proceeds from private sale of common stock subject to possible
redemption |
|
|
180,000 |
|
|
|
- |
|
Proceeds from sale of commons stock |
|
|
- |
|
|
|
420,000 |
|
Proceeds from convertible debt obligations |
|
|
- |
|
|
|
150,000 |
|
Net cash provided by
financing activities |
|
|
154,000 |
|
|
|
526,000 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash |
|
|
(162,000 |
) |
|
|
216,000 |
|
Cash and restricted cash
beginning of period |
|
|
171,000 |
|
|
|
184,000 |
|
Cash and restricted cash end
of period |
|
$ |
9,000 |
|
|
$ |
400,000 |
|
|
|
|
|
|
|
|
|
|
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 |
|
Accrued deferred offering
costs |
|
$ |
177,000 |
|
|
$ |
- |
|
New right of use asset and
lease liability |
|
$ |
43,000 |
|
|
$ |
34,000 |
|
Property and equipment
purchased with debt |
|
$ |
- |
|
|
$ |
58,000 |
|
Sacks Parente Golf (NASDAQ:SPGC)
Historical Stock Chart
From Apr 2024 to May 2024
Sacks Parente Golf (NASDAQ:SPGC)
Historical Stock Chart
From May 2023 to May 2024