Newton Golf Company (NWTG) investor relations material

Executive summary

• Q2 net sales fell 36% to $1.3m from $2.1m, as the 2.0 shaft manufacturing transition and temporary carbon-fiber constraints reduced production and delayed shipments.

• Marketing was moderated to match demand with capacity, then resumed selectively as material availability and production improved.

• Delayed orders tied to ~$1.2m of deposits and open wholesale orders at Q1-end were substantially fulfilled by early August; shipment times improved to within seven business days.

• Updated 2.0 Fast Motion and Motion shafts launched, with expanded professional adoption and a Guinness World Record for fastest golf drive at 235.1 mph.

Financial highlights

• Q2 gross profit was $911,000 versus $1.4m; gross margin rose to 69.2% from 67.6% on favorable sales mix.

• H1 net sales fell 30% to $2.3m; gross profit was $1.5m versus $2.3m, and gross margin was 66.7% versus 68.7%.

• Q2 net loss was $2.28m ($0.49/share) versus $1.52m ($0.34/share); H1 net loss was $4.94m ($1.07/share) versus $2.05m ($0.74/share).

• Q2 operating expenses were $2.45m versus $2.91m; H1 operating expenses were $5.69m versus $5.73m.

• H1 losses reflected higher operating costs and an unfavorable non-cash warrant-liability fair-value change; Q2 included a ~$600,000 non-cash warrant loss.

Outlook and guidance

• Priorities include scaling production, improving fulfillment, expanding DTC and professional fitting channels, growing international distribution, and preparing new products.

• Production exceeded 200 shafts/day, with a plan to scale to 600/day; annual capacity could increase from ~55,000 to 160,000 units.

• Fast Motion fairway wood and hybrid shafts are expected to launch commercially in Q4 2026 or Q1 2027.

• Additional capital is expected to support ongoing operations and growth initiatives.