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Sacks Parente Golf, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $1,211,000 from $95,000 in the same quarter the previous year, primarily due to the introduction of Newton Motion driver and fairway shafts.
Cost of goods sold for the quarter was $406,000, representing 34% of sales, compared to 59% in the same quarter of the previous year. This decrease in cost ratio is attributed to a change in product mix.
The company reported a gross profit of $805,000 for the quarter, compared to $39,000 in the previous year, with the increase attributed to higher sales.
Selling, general, and administrative expenses increased to $1,694,000 from $1,195,000, primarily due to increased employee-related expenses and public company costs.
Net loss for the quarter was $1,060,000, down from $1,197,000 in the previous year. The decrease in net loss was due to increased sales and gross profit.
Cash used in operating activities was $3,431,000, while cash used in investing and financing activities was $463,000 and $131,000, respectively.
Sacks Parente had cash and cash equivalents of $1,313,000 as of September 30, 2024. The company acknowledges its need for additional financing to continue operations.
The filing also details a reverse stock split of 1-for-10 shares, effective July 30, 2024, to regain compliance with Nasdaq's (NDAQ+0.48%) minimum bid price requirement.
Sacks Parente does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a need for additional financing to continue operations and address its going concern status.
Sacks Parente continues to focus on expanding its product portfolio, including the Newton Motion shaft line, and highlights its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sacks Parente Golf Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.