Newton Golf Company Announces Fourth Quarter and Full Year 2024 Financial Results
CAMARILLO, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- via IBN – Newton Golf Company (NASDAQ:NWTG) ("Newton Golf" or the "Company"), a leader in premium golf equipment innovation, today announces financial results for the fourth quarter and full year ended Dec. 31, 2024. The Company delivered record revenue growth, strong margin expansion, and continued operational momentum, supported by strategic product launches, international expansion, and a successful corporate rebranding.
HIGHLIGHTS
- Fourth Quarter Revenue of $1,073,000, an 817% increase from $117,000 in Q4 2023.
- Fourth Quarter Gross Margin expanded to 73%, up from 36% in Q4 2023, driven by enhanced manufacturing efficiencies and an improved product mix.
- Full-Year Revenue of $3.445 million, representing an 887% increase from $349,000 in fiscal 2023.
- Full-Year Gross Margin increased to 67%, compared to 35% in fiscal 2023, reflecting higher sales volume and improved production efficiencies.
- Successfully rebranded from Sacks Parente Golf to Newton Golf Company, reinforcing its physics-driven approach to golf equipment innovation.
- Expanded product portfolio, launching Newton Fairway Motion Shafts, five new Newton Gravity putter models, and the new Fast Motion shaft line, a lighter-weight shaft available in a distinct new color.
- Broadened global presence, securing distribution in 50 of Japan's largest golf retail locations.
- Increased tour adoption, with over 30 players putting the Newton Motion Shaft in play on the PGA TOUR Champions during 2024. Newton Golf continues to expand its presence, with growing traction on both the PGA Tour and LPGA Tour.
- Doug Barron captured a major victory at the Regions Tradition on the PGA TOUR Champions using a Newton Motion shaft, validating Newton's performance on the sport's biggest stages.
- As of Dec. 31, 2024, Newton Golf had a cash balance of $7.65 million, which is expected to support operations for approximately 14 months. The Company continues to evaluate additional financing opportunities to support long-term growth.
"2024 was a transformative year for Newton Golf, as we successfully executed our strategic vision and delivered exceptional financial and operational performance," said Greg Campbell, chairman and CEO of Newton Golf Company. "Our tenfold revenue growth, substantial margin expansion, and increasing tour adoption demonstrate the effectiveness of our innovation and market strategy. With expanding tour presence, including players on the PGA Tour and LPGA Tour, and the launch of our new Fast Motion shaft line, we continue to drive industry-leading performance and brand recognition. With a strong foundation in place, we are focused on scaling operations, expanding global distribution, and driving sustained growth in 2025 and beyond."
CONSOLIDATED RESULTS
Three Months Ended December 31, 2024
| Q4 2024 | Q4 2023 | % Change | |||||||||
| Net Sales | $ | 1,073,000 | $ | 117,000 | 817 | % | |||||
| Cost of goods sold | 296,000 | 75,000 | 295 | % | |||||||
| Gross profit | 777,000 | 42,000 | 1,750 | % | |||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative | 2,178,000 | 1,922,000 | 13 | % | |||||||
| Research and development | 25,000 | 35,000 | -29 | % | |||||||
| Total operating expenses | 2,203,000 | 1,957,000 | 13 | % | |||||||
| Loss from operations | -1,426,000 | -1,915,000 | -26 | % | |||||||
| Interest income (expense), net | 20,000 | 76,000 | -74 | % | |||||||
| Financing Costs | (5,631,000 | ) | - | ||||||||
| Change in Fair Value of Warrant Liability | (259,000 | ) | - | ||||||||
| Net loss | $ | (7,295,000 | ) | $ | (1,839,000 | ) | -297 | % | |||
Fourth quarter revenue was $1,073,000, up 817% from $117,000 in Q4 2023. The significant revenue growth was driven by strong demand for the Company's premium golf shafts and putters, expansion into new markets, and increased adoption among professional golfers.
Gross margin for the quarter expanded to 73%, up from 36% in Q4 2023, reflecting operational efficiencies, increased production volume, and an improved product mix.
Twelve Months Ended December 31, 2024
| FY 2024 | FY 2023 | % Change | |||||||||
| Net Sales | $ | 3,445,000 | $ | 349,000 | 887 | % | |||||
| Cost of goods sold | 1,171,000 | 227,000 | 416 | % | |||||||
| Gross profit | 2,274,000 | 122,000 | 1,764 | % | |||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative | 6,509,000 | 4,497,000 | 45 | % | |||||||
| Research and development | 743,000 | 258,000 | 188 | % | |||||||
| Total operating expenses | 7,252,000 | 4,755,000 | 53 | % | |||||||
| Loss from operations | -4,978,000 | -4,633,000 | 7 | % | |||||||
| Interest income (expense), net | 161,000 | 8,000 | 1,913 | % | |||||||
| Financing Costs | (5,631,000 | ) | - | ||||||||
| Change in Fair Value of Warrant Liability | (259,000 | ) | - | ||||||||
| Net loss | $ | (10,707,000 | ) | $ | (4,625,000 | ) | 132 | % |
Full-year revenue reached $3,445,000, up 887% from $349,000 in 2023, driven by successful product launches, expanded retail distribution, and a growing direct-to-consumer channel.
Gross margin improved to 67%, up from 35% in fiscal 2023, reflecting higher production scale, improved pricing strategies, and greater sales efficiency.
Explanation of Warrant Liabilities Impact
Warrant Issuance and Initial Liability Recognition:
On Dec. 12, 2024, Newton Golf Company issued 7,000,000 shares accompanied by 8,050,000 Series A warrants and 8,050,000 Series B warrants. Under GAAP accounting guidelines, the Company recorded corresponding warrant liabilities at fair value as of Dec. 31, 2024, amounting to $1,546,000 for Series A warrants and $11,410,000 for Series B warrants. These warrant-related liabilities significantly contributed to financing costs of $5,631,000 and change in the fair value of warrant liability of $259,000, representing a substantial portion of the net loss reported in fiscal 2024.
Warrant Exercise and Liability Reversal:
As of March 31, 2025, approximately 90% of the Series B warrants had been exercised, extinguishing most of the Series B warrant liability balance of $11,410,000 while increasing stockholders' equity.
Future Financial Impact:
The reversal of the warrant liability by $10,500,000 will notably improve Newton Golf's profitability and strengthen the balance sheet by significantly lowering total liabilities in 2025. Furthermore, as the remaining outstanding warrants are exercised, additional liability reductions will enhance the Company's financial stability and performance moving forward.
BUSINESS OUTLOOK
Newton Golf anticipates continued revenue growth and improving gross margins in 2025, driven by:
- Revenue Guidance: The Company expects full-year 2025 revenue to range between $6.5 million and $7.0 million, representing continued strong growth from 2024.
The Company's 2025 strategic priorities include:
- Scaling global distribution through expanded retail partnerships and club fitter networks.
- Strengthening direct-to-consumer (DTC) sales with enhanced digital marketing and e-commerce growth.
- Launching new high-performance golf technologies, including next-generation shafts and putters.
- Further international expansion, particularly in high-growth golf markets in Asia and Europe.
Newton Golf remains committed to long-term profitability and shareholder value creation, with a focus on innovation, operational efficiency, and market expansion.
Form10-K Filing
Newton Golf Company expects to file its Annual Report on Form 10-K for the year ended December 31, 2024, with the Securities and Exchange Commission ("SEC") on or before April 4, 2025. Once filed, the Form 10-K will be accessible on the SEC's website at www.sec.gov and through the Investor Relations section of Newton Golf's website.
Investor Alerts
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About Newton Golf
At Newton Golf, we harness the power of physics to revolutionize golf equipment design. Formerly known as Sacks Parente, our rebranding reflects our commitment to innovation inspired by Sir Isaac Newton, the father of physics. By applying Newtonian principles to every aspect of our design process, we create precision-engineered golf clubs that deliver unmatched stability, control, and performance. Our mission is to empower golfers with scientifically advanced equipment that maximizes consistency and accuracy, ensuring every swing is backed by the laws of physics.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or the future financial performance of Newton Golf Company (the "Company") and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.
In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "expects," "plans," "anticipates," "intends," "believes," "estimates," "projects," "potential," "continues," or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding the expected benefits of the reverse stock split, the Company's ability to maintain compliance with Nasdaq listing requirements, the potential for increased institutional investor interest, the Company's future growth strategy, expansion of its product portfolio, anticipated financial performance, and future business prospects.
These forward-looking statements reflect the Company's current expectations and projections based on information available as of the date of this release and are subject to a number of risks and uncertainties, including, but not limited to, general economic, financial, and business conditions; changes in consumer demand and industry trends; the Company's ability to successfully implement its strategic initiatives; competition in the golf equipment market; supply chain disruptions; regulatory compliance and legal proceedings; and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
The Company cautions investors that forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Company Contact:
Newton Golf Company
551 Calle San Pablo
Camarillo, CA 93012
https://newtongolfco.com/
Investor Contact:
Scott McGowan
InvestorBrandNetwork (IBN)
Phone: 310.299.1717
ir@newtongolfco.com
