Sacks Parente Golf, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024, reflecting a substantial increase in revenue and ongoing challenges in profitability. For the three months ended September 30, 2024, the company generated revenues of $1,211,000, a remarkable increase of 1,175% compared to $95,000 in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $2,374,000, up 923% from $232,000 in the prior year. This growth was primarily driven by the successful sales of the Newton Motion shafts, which accounted for $1,182,000 in the third quarter and $2,120,000 year-to-date.

Despite the surge in revenue, Sacks Parente Golf reported a net loss of $(1,060,000) for the third quarter, a slight improvement from a net loss of $(1,197,000) in the same quarter of 2023. For the nine-month period, the net loss increased to $(3,408,000) from $(2,786,000) year-over-year. The increase in operating expenses, which rose to $1,895,000 for the third quarter and $5,047,000 for the nine months, contributed to the ongoing losses. Notably, research and development expenses surged to $598,000 for the nine months, reflecting investments in new product development.

The company's total assets decreased to $3,364,000 as of September 30, 2024, down from $6,394,000 at the end of 2023. Cash and cash equivalents also saw a significant decline, falling to $1,313,000 from $5,338,000. The increase in total current liabilities to $672,000 from $475,000 indicates rising financial pressures.

Strategically, Sacks Parente Golf transitioned from a private to a public company in August 2023, which has led to increased public company costs. The company faced compliance challenges with NASDAQ, receiving a deficiency letter in December 2023 regarding its stock price. Following a reverse stock split executed on July 30, 2024, the company regained compliance with NASDAQ's minimum bid price requirement by August 13, 2024.

Additionally, the company has entered into a distribution agreement with Greater Asia Golf Promotions Limited, with initial payments made and purchases totaling $96,000 as of September 30, 2024. The company continues to navigate the cyclical nature of the golf industry, with a focus on expanding its product offerings and market presence.