Thu, Nov 14, 2:02 PM (19 days ago)
Sacks Parente Golf, Inc. (SPGC) reported significant growth for the third quarter of 2024, with net sales soaring 1,175% to $1,211,000 compared to $95,000 in Q3 2023. This surge was primarily driven by the successful launch of the Newton Motion driver and fairway shafts. Gross profit increased dramatically to $805,000, yielding a gross margin of 66%. However, total operating expenses rose to $1.9 million, reflecting heightened research and development costs and public company expenses, leading to a net loss of $1.06 million, slightly less than the $1.2 million loss in the prior year. For the nine-month period ending September 30, 2024, net sales reached $2.37 million, up 923% from $232,000, with a net loss of $3.41 million. Cash and equivalents decreased to $1.31 million, raising concerns about liquidity as the company is classified as a smaller reporting company and is actively seeking additional financing to sustain operations. The company also underwent a reverse stock split in July 2024 to comply with NASDAQ listing requirements, successfully regaining compliance by August 2024. Overall, while growth is evident, uncertainties regarding future financing and ongoing operating losses pose risks to SPGC's financial stability.