Revenue Performance - Net sales increased by $1,255,000, or 154%, to $2,068,000 for the three months ended June 30, 2025, compared to $813,000 for the same period in 2024[110] - For the six months ended June 30, 2025, net sales increased by $2,115,000, or 182%, to $3,278,000 compared to $1,163,000 for the same period in 2024[121] - The introduction of the Newton Motion driver shaft product line contributed significantly, generating $2,026,000 in net sales, with approximately 92% of sales through the company's websites[111] Cost and Expenses - Cost of goods sold rose by $345,000, or 106%, to $669,000 for the three months ended June 30, 2025, leading to a gross margin increase to 68% from 60% in the prior year[112] - Cost of goods sold for the six months ended June 30, 2025, increased by $559,000, or 119%, to $1,027,000, resulting in a gross margin of 69%[122] - Selling, general and administrative expenses increased by $1,279,000, or 86%, to $2,763,000 for the three months ended June 30, 2025, primarily due to increased sales and marketing costs[114] - Selling, general and administrative expenses increased by $2,549,000, or 93%, to $5,304,000 for the six months ending June 30, 2025, compared to $2,755,000 for the same period in 2024[124] - Research and development expenses rose by $28,000 to $425,000, or 7%, during the six months ending June 30, 2025, compared to $397,000 during the same period in 2024[125] - Total operating expenses for the six months ended June 30, 2025, rose by $2,577,000 to $5,729,000, driven by higher selling, general and administrative expenses[120] Loss and Financial Position - Net loss for the three months ended June 30, 2025, increased by $365,000, or 32%, to $1,520,000 compared to $1,155,000 for the same period in 2024[119] - Loss from operations increased by $1,021,000, or 42%, to $3,478,000 for the six months ending June 30, 2025, compared to $2,457,000 for the same period in 2024[126] - Net loss decreased by $303,000 to $2,045,000, or 13%, for the six months ending June 30, 2025, compared to a net loss of $2,348,000 for the same period in 2024[129] - The company incurred a net loss of $2,045,000 and used cash in operations of $2,777,000 for the six months ending June 30, 2025, raising substantial doubt about its ability to continue as a going concern[134] Cash Flow - Net cash used in operating activities totaled $2,777,000 for the six months ending June 30, 2025, compared to $2,341,000 for the same period in 2024[131] - Net cash used in investing activities was $291,000 for the six months ending June 30, 2025, compared to $188,000 for the same period in 2024[132] - Net cash used in financing activities totaled $577,000 for the six months ending June 30, 2025, driven by a stock repurchase of $500,000[133] - As of June 30, 2025, the company had cash and cash equivalents of $4,005,000, expected to last for at least the next nine months[135] Fair Value Changes - The company experienced a change in fair value of warrant liabilities, resulting in a total increase of $1,359,000 for the six months ended June 30, 2025[120] - The change in fair value of warrant liability resulted in a total decrease of $1,359,000, primarily due to a reduction in the fair value of the Series A Warrants[128] Future Plans - The company plans to expand its product offerings and may consider mergers or acquisitions to enhance growth opportunities[100]
Sacks Parente Golf(SPGC) - 2025 Q2 - Quarterly Report