Q2 2026 Operational Highlights <\/p>\n
Professional adoption continued to expand, with more than 77 professional golfers putting Newton Motion and Fast Motion shafts in play across PGA TOUR, PGA TOUR Champions, LPGA, and Korn Ferry Tours as of the end of the second quarter of 2026, up from more than 60 as of the end the first quarter of 2026, demonstrating continued professional adoption and supporting broader awareness of the Newton Golf platform. <\/p>\n<\/li>\n
Introduced updated versions of the Fast Motion driver shaft and Motion driver and fairway shafts, referred to as the Company’s “2.0” shafts and differentiated by green product logos. The updated shafts incorporate refinements to manufacturing techniques, equipment utilization, bend profiles, product specifications and production tolerances, and are designed to support more consistent performance characteristics, tighter ball-flight dispersion, improved continuity between driver and fairway shaft specifications and a broader fitting profile across player types. The Company believes these refinements also provide greater manufacturing consistency and tighter production tolerances. The updated products have experienced strong initial professional adoption, including significant conversion from prior-generation shafts to the 2.0 products and recent adoption of the updated Motion fairway wood shaft by multiple players on the PGA TOUR Champions. <\/p>\n<\/li>\n
Expanded the Company’s professional club fitter network to approximately 273 accounts at quarter end, up from approximately 235 accounts at the end of the first quarter of 2026, driven by 38 new club fitter and golf course accounts added following the appointment of an East Coast sales manager, expanding the Company’s channel presence across the premium fitting market. <\/p>\n<\/li>\n
Announced that Newton Golf’s Fast Motion shaft set the GUINNESS WORLD RECORDS\u2122 Title for the fastest golf drive, with Australian professional long-drive golfer Thomas Fliniks achieving a ball speed of 235.1 mph and surpassing the prior record set in 2013. <\/p>\n<\/li>\n
Appointed Gregg Hemphill, a seasoned golf and consumer products executive with extensive experience scaling brands, improving operations, and leading global go-to-market initiatives, to its board of directors. Hemphill brings more than 20 years of senior leadership experience building and transforming consumer and lifestyle businesses, including leadership roles at Callaway Golf, Oakley, OGIO, and Fidra Golf. <\/p>\n<\/li>\n
Hired a new head of manufacturing in April with more than 20 years of production and operational leadership experience to support manufacturing scalability and future operational growth initiatives. <\/p>\n<\/li>\n
Named to the Financial Times’ Americas’ Fastest-Growing Companies 2026 list, ranking No. 22 overall and No. 2 in the Leisure & Entertainment category. <\/p>\n<\/li>\n<\/ul>\n
Subsequent Events <\/p>\n
On July 1, 2026, the Company entered into a $5.0 million senior secured revolving credit facility. As of August 13, 2026, the Company had drawn $0.8 million under the facility. <\/p>\n<\/li>\n
On July 7, 2026, the Company completed the exchange of approximately $2.3 million of outstanding convertible promissory notes, including accrued interest, for Series A Convertible Preferred Stock. The exchange reduced outstanding indebtedness and increased stockholders’ equity. <\/p>\n<\/li>\n
On August 14, 2026, the Company completed a private placement financing for aggregate gross proceeds of approximately $1.0 million through the issuance of common stock at a purchase price of $1.33 per share, representing a premium to the market price of the Company’s common stock at closing. The Company received net proceeds of approximately $0.9 million. <\/p>\n<\/li>\n<\/ul>\n
Management Commentary <\/p>\n
“During the second quarter, our financial results reflected a temporary reduction in production throughput as we implemented manufacturing transition activities in conjunction with the introduction of updated versions of our Fast Motion driver shaft and Motion driver and fairway shafts,” said Akinobu Yorihiro, interim Chief Executive Officer and Chief Technology Officer of Newton Golf. “These activities included updates to certain shaft manufacturing recipes and related production processes, including recalibration of machining operations, modifications to finishing workflows, changes to paint mixtures, and maintenance activities designed to improve product quality, production consistency, and manufacturing scalability. These factors, together with temporary carbon fiber supply constraints, delayed the shipment of certain customer orders and led us to intentionally moderate marketing activity to better align customer demand with available manufacturing capacity, reduce our order backlog, and avoid generating demand beyond our ability to fulfill customer orders on a timely basis. <\/p>\n
“At the same time, we continued to advance several strategic initiatives, including expanded professional adoption of Newton Motion and Fast Motion shafts, continued growth in our professional fitter network, and the introduction of new Fast Motion fairway wood and hybrid shafts expected to launch commercially in the fourth quarter of 2026 or first quarter of 2027. We introduced updated ‘2.0’ versions of our Fast Motion driver shaft and Motion driver and fairway shafts, which incorporate refinements to shaft design, manufacturing techniques, bend profiles, product specifications and production tolerances. We believe these refinements support more consistent performance characteristics, tighter ball-flight dispersion, improved continuity between driver and fairway shaft specifications and a broader fitting profile across different player types, while also providing greater manufacturing consistency and tighter production tolerances. The updated products have experienced strong initial professional adoption, including significant conversion from prior-generation shafts and recent adoption of the updated Motion fairway wood shaft by multiple players on the PGA TOUR Champions. <\/p>\n
“Subsequent to quarter end, we secured additional carbon fiber supply from Toray Japan while availability from Toray U.S. improved. As manufacturing capacity and raw material availability improved, we began selectively resuming marketing initiatives in late July 2026 and increasing production of our updated 2.0 shaft products. Initial results from the resumed marketing activity have been encouraging; however, marketing activity remains below historical levels as we transition to a new marketing agency and have not yet fully ramped paid media expenditures. We intend to increase marketing activity in a measured manner as production capacity and material availability support higher demand and timely order fulfillment. <\/p>\n
“We also strengthened our capital structure by entering into a $5.0 million senior secured revolving credit facility and completing the exchange of approximately $2.3 million of convertible notes, including accrued interest, for Series A Convertible Preferred Stock, and completing a private placement financing that generated net proceeds of approximately $0.9 million. These financing actions reduced outstanding indebtedness, increased stockholders’ equity, and provided additional financial flexibility to support our operating and growth initiatives. <\/p>\n
“By the beginning of August, product shipment times had improved to within seven business days, and we had substantially fulfilled the delayed orders represented by the approximately $1.2 million of customer deposits and open wholesale sales orders reported as of March 31, 2026. <\/p>\n
“Looking ahead, our priorities for the balance of 2026 and beyond are clear. We are focused on translating the operational improvements made during the manufacturing transition into higher production volumes, improved order fulfillment, stronger product consistency, tighter manufacturing tolerances, and a more scalable operating platform. We are also focused on scaling our direct-to-consumer and professional fitting channels, expanding international distribution, and preparing for the commercial launch of additional shaft products. <\/p>\n
“We believe Newton Golf is now better positioned to convert customer demand into revenue as manufacturing throughput continues to improve, carbon fiber availability has improved, fulfillment activity has improved, and marketing initiatives have begun to resume in a measured manner. Our expanded professional adoption, broader fitter network, improved supply position and upcoming product launches provide several opportunities to support broader adoption of our physics-driven shaft platform. <\/p>\n
“While we expect to require additional capital to support ongoing operations and growth initiatives, we believe the actions taken during and after the quarter have improved our liquidity and capital structure and better position Newton Golf to support its ongoing operations and growth initiatives.” <\/p>\n
Second Quarter 2026 Financial Summary <\/p>\n
Net sales totaled $1.3 million for the second quarter of 2026, down 36% from $2.1 million in the prior-year quarter. The decrease was driven primarily by reduced manufacturing capacity at the Company’s shaft production facility as the Company implemented updates to certain existing shaft recipes and related production processes in conjunction with the introduction of updated versions of its Fast Motion driver shaft and Motion driver and fairway shafts. These activities included recalibration of machining operations, modifications to finishing workflows, changes to paint mixtures, and maintenance activities intended to improve product quality, production consistency, and manufacturing scalability. Temporary carbon fiber supply constraints further limited production capacity during the quarter, and collectively, these factors reduced production throughput, delayed the shipment of certain customer orders, and resulted in lower sales. During the quarter, the Company also moderated marketing expenditures to align customer demand with available manufacturing capacity, reduce its order backlog, and avoid generating demand beyond its ability to fulfill customer orders on a timely basis. <\/p>\n
Gross profit totaled $911,000, or 69.2% of net sales, in the second quarter of 2026, compared with $1.4 million, or 67.6% of net sales, in the prior-year quarter. The decrease in gross profit reflected lower sales volumes resulting from reduced production throughput during the Company’s manufacturing transition and temporary carbon fiber supply constraints. Gross margin improved primarily due to a more favorable product and sales channel mix, including a higher proportion of direct-to-consumer sales, partially offset by manufacturing inefficiencies associated with the Company’s ongoing manufacturing transition. <\/p>\n
Total operating expenses decreased to $2.5 million for the second quarter of 2026, compared with $2.9 million in the prior-year quarter. Selling, general and administrative expenses decreased approximately $0.7 million to $2.1 million, primarily due to lower sales and marketing costs, partially offset by higher manufacturing costs classified as operating expenses due to reduced production throughput and resulting idle capacity associated with the manufacturing transition, and higher stock-based compensation expense. Research and development expenses increased to $0.3 million from $0.1 million, primarily due to overtime and travel costs associated with the manufacturing transition and manufacturing labor reclassified to research and development to reflect work performed on product and manufacturing process improvements. <\/p>\n
Net loss for the second quarter of 2026 totaled $2.3 million, or $0.49 per share, compared with a net loss of $1.5 million, or $0.34 per share, in the prior-year quarter. The increase was primarily attributable to a higher operating loss and an increase in the non-cash loss from the change in fair value of warrant liabilities. <\/p>\n
Cash and cash equivalents totaled $0.4 million at June 30, 2026, compared with $1.3 million at December 31, 2025. During the six months ended June 30, 2026, the Company issued an aggregate principal amount of $2.25 million of convertible promissory notes pursuant to its securities purchase agreement, with net proceeds used for working capital and general corporate purposes. Subsequent to quarter end, the Company entered into a $5.0 million senior secured revolving credit facility and completed the exchange of approximately $2.3 million of outstanding convertible promissory notes, including accrued interest, for Series A Convertible Preferred Stock, and completed a private placement financing for aggregate gross proceeds of approximately $1.0 million, resulting in net proceeds of approximately $0.9 million. The revolving credit facility increased available liquidity and financial flexibility, while the note exchange reduced outstanding indebtedness and increased stockholders’ equity. <\/p>\n
First Half 2026 Financial Summary <\/p>\n
Net sales totaled $2.3 million for the first half of 2026, down 30% from $3.3 million in the same year-ago period. The decrease was driven primarily by reduced manufacturing capacity at the Company’s shaft production facility as the Company implemented updates to certain existing shaft recipes and related production processes in conjunction with the introduction of updated versions of its Fast Motion driver shaft and Motion driver and fairway shafts, together with temporary constraints in the availability of carbon fiber. Collectively, these factors reduced production throughput, delayed the shipment of certain customer orders, and resulted in lower sales during the period. During the first half of 2026, the Company also moderated marketing expenditures to align customer demand with available manufacturing capacity. <\/p>\n
Gross profit totaled $1.5 million, or 66.7% of net sales, in the first half of 2026, compared with $2.3 million, or 68.7% of net sales, in the prior-year period. The decrease in gross profit reflected lower sales volumes resulting from reduced production throughput during the Company’s manufacturing transition and temporary carbon fiber supply constraints. The decrease in gross margin was primarily attributable to manufacturing inefficiencies associated with reduced production throughput and idle manufacturing capacity, partially offset by a more favorable product and sales channel mix, including a higher proportion of direct-to-consumer sales. <\/p>\n
Total operating expenses were relatively unchanged at $5.7 million for the first half of 2026, compared with approximately $5.7 million in the prior-year period. Selling, general and administrative expenses decreased approximately $0.3 million to $5.0 million, primarily due to lower sales and marketing expenses of $1.0 million, partially offset by idle manufacturing costs classified as operating expenses due to reduced production throughput and resulting idle capacity associated with the manufacturing transition of $0.5 million, higher stock-based compensation expense, and increased professional services. Research and development expenses increased to $0.7 million from $0.4 million, primarily due to manufacturing labor reclassified to research and development to reflect work performed on product and manufacturing process improvements. <\/p>\n
Net loss for the first half of 2026 totaled $4.9 million, or $1.07 per share, compared with a net loss of $2.0 million, or $0.74 per share, in the same year-ago period. The increase was primarily attributable to an unfavorable year-over-year change of approximately $2.0 million in the non-cash fair value of warrant liabilities, reflecting a current-period loss compared with a gain in the prior-year period, as well as a higher loss from operations. Manufacturing transition activities and temporary carbon fiber supply constraints reduced production throughput during the period, resulting in lower net sales and approximately $0.7 million of manufacturing transition-related operating costs, including approximately $0.5 million associated with idle manufacturing capacity and approximately $0.2 million related to training, new shaft production activities, and manufacturing process reengineering. <\/p>\n
Conference Call <\/p>\n
Newton Golf will hold a conference call later today to discuss results for the second quarter of 2026 results, including a question-and-answer period. <\/p>\n
Date: Friday, August 14, 2026 Participants may dial in using the numbers above and ask to be joined to the call or click the Call me\u2122 link<\/a> for instant telephone access to the event. Participants may submit questions via the webcast player in advance of the call. <\/p>\n Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting to the call, please contact Encore at 1-949-432-7450. <\/p>\n A replay of the call will be available approximately three hours after the call and will remain available through August 28, 2026. <\/p>\n Toll-free replay number: 1-844-512-2921 About Newton Golf <\/p>\n At Newton Golf, we apply the principles of physics to the design and performance of premium golf equipment. Formerly known as Sacks Parente, our rebranding reflects our commitment to innovation inspired by Sir Isaac Newton, the father of physics. By applying Newtonian principles to every aspect of our design process, we create precision-engineered golf equipment including Newton Motion shafts and Gravity putters that deliver unmatched stability, control, and performance. Our mission is to empower golfers with scientifically advanced tools that maximize consistency and accuracy, ensuring every swing is backed by the laws of physics. For more information, visit newtongolf.com<\/a>. <\/p>\n Forward-Looking Statements <\/p>\n This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or the future financial performance of Newton Golf Company (the “Company”) and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. <\/p>\n In some cases, forward-looking statements can be identified by words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “believes,” “estimates,” “projects,” “potential,” or similar expressions. These forward-looking statements include, but are not limited to, statements regarding the Company’s ability to support working capital needs, operational scaling initiatives, and future growth opportunities, growth strategy, product innovation and development, expansion of distribution channels, brand adoption among professional fitters and golfers, anticipated market opportunities, and future business prospects. <\/p>\n These forward-looking statements reflect the Company’s current expectations and projections based on information available as of the date of this release and are subject to a number of risks and uncertainties, including, but not limited to, general economic and business conditions; changes in consumer demand and industry trends; competition in the golf equipment market; the Company’s ability to execute its strategic initiatives; supply chain disruptions; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. <\/p>\n The Company cautions investors that forward-looking statements are not guarantees of future performance, and actual results may differ materially from those projected. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law. <\/p>\n NEWTON GOLF COMPANY, INC. <\/p>\n CONDENSED STATEMENTS OF OPERATIONS <\/p>\n For the Three and Six Months Ended June 30, 2026 and 2025 <\/p>\n (Unaudited) <\/p>\n (Amounts rounded to nearest thousand, except share and per share amounts) <\/p>\n<\/td>\n<\/tr>\n Three Months Ended <\/p>\n June 30, <\/p>\n<\/td>\n Six Months Ended <\/p>\n June 30, <\/p>\n<\/td>\n<\/tr>\n 2026 <\/p>\n<\/td>\n 2025 <\/p>\n<\/td>\n 2026 <\/p>\n<\/td>\n 2025 <\/p>\n<\/td>\n<\/tr>\n Net Sales <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 1,316,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 2,068,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 2,307,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 3,278,000 <\/p>\n<\/td>\n Cost of goods sold <\/p>\n<\/td>\n 405,000 <\/p>\n<\/td>\n 669,000 <\/p>\n<\/td>\n 768,000 <\/p>\n<\/td>\n 1,027,000 <\/p>\n<\/td>\n Gross profit <\/p>\n<\/td>\n 911,000 <\/p>\n<\/td>\n 1,399,000 <\/p>\n<\/td>\n 1,539,000 <\/p>\n<\/td>\n 2,251,000 <\/p>\n<\/td>\n Operating expenses <\/p>\n<\/td>\n Selling, general and administrative expenses <\/p>\n<\/td>\n 2,103,000 <\/p>\n<\/td>\n 2,763,000 <\/p>\n<\/td>\n 4,998,000 <\/p>\n<\/td>\n 5,304,000 <\/p>\n<\/td>\n Research and development <\/p>\n<\/td>\n 348,000 <\/p>\n<\/td>\n 143,000 <\/p>\n<\/td>\n 696,000 <\/p>\n<\/td>\n 425,000 <\/p>\n<\/td>\n Total operating expenses <\/p>\n<\/td>\n 2,451,000 <\/p>\n<\/td>\n 2,906,000 <\/p>\n<\/td>\n 5,694,000 <\/p>\n<\/td>\n 5,729,000 <\/p>\n<\/td>\n Loss from operations <\/p>\n<\/td>\n (1,540,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n (1,507,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n (4,155,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n (3,478,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n<\/tr>\n Interest (expense) income, net <\/p>\n<\/td>\n (43,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n 29,000 <\/p>\n<\/td>\n (45,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n 74,000 <\/p>\n<\/td>\n Amortization of debt discount <\/p>\n<\/td>\n (35,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n – <\/p>\n<\/td>\n (37,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n – <\/p>\n<\/td>\n Loss on disposal of asset <\/p>\n<\/td>\n (16,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n – <\/p>\n<\/td>\n (16,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n – <\/p>\n<\/td>\n Change in fair value of warrant liabilities <\/p>\n<\/td>\n (644,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n (42,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n (684,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n 1,359,000 <\/p>\n<\/td>\n Net loss <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (2,278,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (1,520,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (4,937,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (2,045,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n<\/tr>\n Loss per share \u2013 basic and diluted <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (0.49 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (0.34 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (1.07 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n (0.74 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n<\/tr>\n Weighted average number of shares outstanding \u2013 basic and diluted <\/p>\n<\/td>\n 4,606,137 <\/p>\n<\/td>\n 4,509,619 <\/p>\n<\/td>\n 4,599,535 <\/p>\n<\/td>\n 2,778,595 <\/p>\n<\/td>\n NEWTON GOLF COMPANY, INC. <\/p>\n CONDENSED BALANCE SHEETS <\/p>\n \u00a0 <\/p>\n (Amounts rounded to nearest thousand, except share and per share amounts) <\/p>\n<\/td>\n<\/tr>\n June 30, 2026 <\/p>\n<\/td>\n December 31, 2025 <\/p>\n<\/td>\n<\/tr>\n (Unaudited) <\/p>\n<\/td>\n ASSETS <\/p>\n<\/td>\n Current Assets: <\/p>\n<\/td>\n Cash and cash equivalents <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 442,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 1,298,000 <\/p>\n<\/td>\n Accounts receivable, net of allowance for doubtful accounts of $69,000 and $69,000, respectively <\/p>\n<\/td>\n 312,000 <\/p>\n<\/td>\n 102,000 <\/p>\n<\/td>\n Inventory, net of reserve for obsolescence of $121,000 and $135,000, respectively <\/p>\n<\/td>\n 406,000 <\/p>\n<\/td>\n 374,000 <\/p>\n<\/td>\n Prepaid expenses and other current assets <\/p>\n<\/td>\n 226,000 <\/p>\n<\/td>\n 413,000 <\/p>\n<\/td>\n Total Current Assets <\/p>\n<\/td>\n 1,386,000 <\/p>\n<\/td>\n 2,187,000 <\/p>\n<\/td>\n Property and equipment, net <\/p>\n<\/td>\n 862,000 <\/p>\n<\/td>\n 880,000 <\/p>\n<\/td>\n Right-of-use asset, net <\/p>\n<\/td>\n 65,000 <\/p>\n<\/td>\n 84,000 <\/p>\n<\/td>\n Software licensing agreement, net <\/p>\n<\/td>\n 8,000 <\/p>\n<\/td>\n 25,000 <\/p>\n<\/td>\n Deferred offering costs <\/p>\n<\/td>\n 168,000 <\/p>\n<\/td>\n 123,000 <\/p>\n<\/td>\n Total Assets <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 2,489,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 3,299,000 <\/p>\n<\/td>\n LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY) <\/p>\n<\/td>\n Current Liabilities: <\/p>\n<\/td>\n Accounts payable and accrued expenses <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 2,227,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 1,428,000 <\/p>\n<\/td>\n Customer deposits <\/p>\n<\/td>\n 250,000 <\/p>\n<\/td>\n 75,000 <\/p>\n<\/td>\n Lease liability, current <\/p>\n<\/td>\n 42,000 <\/p>\n<\/td>\n 40,000 <\/p>\n<\/td>\n Software licensing obligation, current <\/p>\n<\/td>\n 14,000 <\/p>\n<\/td>\n 41,000 <\/p>\n<\/td>\n Warrant liability <\/p>\n<\/td>\n 1,429,000 <\/p>\n<\/td>\n 745,000 <\/p>\n<\/td>\n Total Current Liabilities <\/p>\n<\/td>\n 3,962,000 <\/p>\n<\/td>\n 2,329,000 <\/p>\n<\/td>\n Lease obligations \u2013 noncurrent <\/p>\n<\/td>\n 23,000 <\/p>\n<\/td>\n 44,000 <\/p>\n<\/td>\n Convertible debt, net of debt discount of $188,000 <\/p>\n<\/td>\n 1,562,000 <\/p>\n<\/td>\n – <\/p>\n<\/td>\n Convertible debt related party, net of debt discount of $59,000 <\/p>\n<\/td>\n 441,000 <\/p>\n<\/td>\n – <\/p>\n<\/td>\n Total Liabilities <\/p>\n<\/td>\n 5,988,000 <\/p>\n<\/td>\n 2,373,000 <\/p>\n<\/td>\n Commitments and Contingencies <\/p>\n<\/td>\n Stockholders’ Equity (Deficiency): <\/p>\n<\/td>\n Preferred stock $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding, respectively <\/p>\n<\/td>\n – <\/p>\n<\/td>\n – <\/p>\n<\/td>\n Common stock, $.01 par value, 45,000,000 shares authorized, 4,670,396 and 4,592,063 shares issued and outstanding, respectively <\/p>\n<\/td>\n 47,000 <\/p>\n<\/td>\n 45,000 <\/p>\n<\/td>\n Additional paid-in-capital <\/p>\n<\/td>\n 29,480,000 <\/p>\n<\/td>\n 28,970,000 <\/p>\n<\/td>\n Accumulated deficit <\/p>\n<\/td>\n (33,026,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n (28,089,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n<\/tr>\n Total Stockholders’ (Deficiency) Equity <\/p>\n<\/td>\n (3,499,000 <\/p>\n<\/td>\n ) <\/p>\n<\/td>\n 926,000 <\/p>\n<\/td>\n Total Liabilities and Stockholders’ (Deficiency) Equity <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 2,489,000 <\/p>\n<\/td>\n $ <\/p>\n<\/td>\n 3,299,000 <\/p>\n<\/td>\n View source version on businesswire.com: https:\/\/www.businesswire.com\/news\/home\/20260814282163\/en\/<\/a> <\/p>\n Contacts <\/p>\n Company Contact:
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-877-407-0752
International dial-in number: 1-201-389-0912
Webcast (live and replay): here <\/a>
Conference ID: 13761730 <\/p>\n
International replay number: 1-412-317-6671
Replay ID: 13761730 <\/p>\n\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n \n <\/td>\n \n <\/td>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n \n <\/td>\n \n \n \n <\/td>\n \n \n \n <\/td>\n \n \n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n \n <\/td>\n \n \n \n <\/td>\n \n \n \n <\/td>\n \n \n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n <\/td>\n \n <\/td>\n<\/tr>\n \n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n \n <\/td>\n \n \n <\/td>\n <\/td>\n \n \n <\/td>\n<\/tr>\n
Jeff Clayborne
CFO and COO
Tel (855) 563-9866
Email Contact<\/a> <\/p>\n