Newton Golf Company (NWTG) investor relations material

Executive summary

• Net sales for Q2 2026 were $1.3 million, down 36% year-over-year, primarily due to manufacturing transition activities and carbon fiber supply constraints, which delayed shipments and reduced production throughput.

• Operational improvements included updates to manufacturing processes, hiring a new head of manufacturing, and launching updated 2.0 shaft products, with commercial release of new fairway wood and hybrid shafts expected in late 2026 or early 2027.

• Professional adoption increased, with over 77 professionals using the shafts by quarter end, and the fitter network expanded to 273 accounts.

• The company raised $2.25 million through convertible notes, entered a $5 million revolving credit facility, exchanged $2.3 million of notes for Series A Preferred Stock, and completed a $1 million private placement to improve liquidity and reduce debt.

• Marketing activities resumed as supply constraints eased, with a new agency engaged and demand generation moderated to match production capacity.

Financial highlights

• Q2 2026 net sales: $1.3 million (down from $2.1 million in Q2 2025); H1 2026 net sales: $2.3 million (down from $3.3 million), mainly due to reduced manufacturing capacity and supply constraints.

• Gross profit for Q2 2026 was $911,000 (69.2% margin), up from 67.6% in Q2 2025; H1 2026 gross profit was $1.5 million (66.7% margin).

• Operating expenses for Q2 2026 were $2.5 million (down from $2.9 million); H1 2026 operating expenses were $5.7 million, flat year-over-year.

• Net loss for Q2 2026 was $2.3 million ($0.49/share), compared to $1.5 million ($0.34/share) in Q2 2025; H1 2026 net loss was $4.9 million ($1.07/share), up from $2.0 million ($0.74/share) in H1 2025.

• Cash and cash equivalents were $0.44 million at June 30, 2026, down from $1.3 million at year-end 2025; stockholders' deficiency was $3.5 million.

Outlook and guidance

• Focus remains on scaling production, improving fulfillment, expanding direct-to-consumer and professional channels, and launching new shaft products.

• Manufacturing throughput and carbon fiber supply have improved, supporting resumed marketing and higher production volumes.

• Additional capital will be required for ongoing operations and growth, and while recent financing improved liquidity, substantial doubt remains about the ability to continue as a going concern without further funding.