Newton Golf — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales were $1.4 million for the third quarter of 2026, a 47% decrease from $2.6 million in the prior-year quarter.
• Gross profit was $820,000 (59.9% of net sales), down from $1.7 million (67.2% of net sales) in the prior-year quarter.
• Total operating expenses decreased to $2.2 million from $3.2 million in the prior-year quarter, driven by $0.8 million lower sales and marketing costs, $0.2 million lower labor costs, and $0.1 million lower public company costs.
• Loss from operations improved to $1.3 million from $1.5 million in the prior-year quarter.
• Net loss was $1.2 million ($0.23 per share), compared to $1.6 million ($0.34 per share) in the prior-year quarter.
• Cash and cash equivalents were $513,000 at September 30, 2026.
• Stockholders' equity was $1.1 million at September 30, 2026.
• For the nine months ended September 30, 2026, net sales were $3.7 million, a 37% decrease from $5.9 million in the prior-year period.
• For the nine months ended September 30, 2026, net loss was $6.2 million ($1.27 per share), compared to $3.6 million ($1.07 per share) in the prior-year period.

Guidance and Future Outlook:

• A dedicated marketing campaign for the 2.0 platform is expected to launch in November 2026.
• Fast Motion fairway wood and hybrid shafts are expected to launch commercially in the first quarter of 2027.
• Management expects additional financing will be required to fund operations and meet obligations during the year following the issuance of the financial statements.
• Management's plans to obtain additional financing do not alleviate substantial doubt about the Company's ability to continue as a going concern.

Business Segments and Product Lines:

• The Company continued selling its 2.0 Fast Motion driver shaft, Motion driver, and fairway shafts, which incorporate refinements to manufacturing techniques and production tolerances.
• More than 80 professional golfers used Newton Motion and Fast Motion shafts across the PGA TOUR, PGA TOUR Champions, LPGA, and Korn Ferry Tours at quarter end, up from more than 77 at the end of the second quarter.
• The professional club fitter network grew to approximately 301 accounts at quarter end, up from approximately 273 at the end of the second quarter.
• The Company increased prices for its Motion driver and fairway shafts to align with related product lines.
• In July 2026, the Company entered into a $5.0 million senior secured revolving credit facility.
• On October 29, the Company announced an expansion in Japan, including the relaunch of its enhanced Japanese e-commerce platform, the local introduction of 2.0 shafts, and a partnership with professional golfer Hiroyuki Fujita.

Market and Competitive Landscape:

• The Company is negotiating potential commercial arrangements with key prospective retail partners to expand access to Motion and Fast Motion shafts through in-store fitting and e-commerce channels.
• The Company is shifting away from frequent sitewide discounts toward selective promotions and purchase incentives designed to increase order size and support wholesale opportunities.
• Carbon fiber availability has improved, allowing the Company to resume marketing initiatives.

Risks and Challenges:

• The Company received a letter from Nasdaq on October 6, 2026, notifying it of non-compliance with the $2.5 million minimum stockholders' equity requirement.
• A hearing before a Nasdaq Hearings Panel is scheduled for November 12, 2026.
• Additional financing may not be available on acceptable terms, or at all, and could dilute existing stockholders.
• The Company faces risks related to supply chain disruptions, changes in consumer demand, and competition in the golf equipment market.

Management Commentary and Tone:

• Akinobu Yorihiro, interim CEO and CTO, stated that the company began building inventory ahead of customer orders for the first time, targeting shipment within two days of receiving an order.
• Management noted that reliable supply, shorter lead times, and consistent product quality are important to developing wholesale and OEM relationships.
• Management observed improved returns on advertising spend since marketing initiatives resumed in August.
• Management believes the focus on brand building and selective promotions has helped open discussions with prospective retail partners.

Other Key Points:

• Subsequent to September 30, 2026, the Company raised approximately $3.0 million in net proceeds from equity financings, including $1.4 million from ATM sales, $1.2 million from private placement sales, and $500,000 from Series A Preferred Stock issuance.
• On November 6, 2026, the Company converted $1.0 million of revolving credit facility principal, plus a 5% premium, into common stock and Series A Preferred Stock, resulting in an approximately $288,000 gain on extinguishment of debt.
• Based on transactions completed through the date of the release, management estimates pro forma stockholders' equity of approximately $5.2 million.
• In July 2026, the Company exchanged approximately $2.3 million of convertible notes for Series A Convertible Preferred Stock.
• On September 23, 2026, the Company acquired an exclusive option to acquire a 100% interest in the Pole Canyon Project (16 mining claims totaling approximately 330 acres in Nevada) for 1,135,891 shares of common stock valued at $1.3 million and assumed $165,000 in cash option payments.
• The Pole Canyon Project is a strategic, non-operating asset; current operating forecasts do not include project production, revenue, or cash flows.
• Private placements completed during the nine months ended September 30, 2026, generated approximately $1.2 million of net proceeds.