Newton Golf receives non-compliance notice from Nasdaq

Newton Golf (NWTG) Company has received a notification from the listing qualifications department of The Nasdaq Stock Market. The notification was anticipated following the Company’s previously reported year-end financial results and has no immediate effect on the continued listing of the Company’s common stock on Nasdaq. Nasdaq notified the Company that it is not in compliance with the continued listing requirements to maintain a minimum of $2.5M in stockholders’ equity. The Company has until May 21 to submit a plan to regain compliance. However, the Company anticipates it will file the plan ahead of the May deadline. If the Company’s compliance plan is accepted by Nasdaq, then Nasdaq may, in its discretion, grant the Company up to 180 calendar days from the date of the Nasdaq notice, or until October 3 to establish compliance. As part of its efforts to strengthen the balance sheet, the Company has entered into a $2M convertible note financing agreement subsequent to the 2025 year-end. Approximately $1.4M of the financing has been executed to date. The convertible note financing was completed at pricing above the Company’s recent market levels and is expected to provide appropriate operating runway as the Company works to regain compliance. As a result, the Company believes it is positioned to access additional capital, if required, on more favorable terms, including through its previously announced at-the-market offering program. The Company expects to submit its compliance plan in advance of the applicable deadline and believes multiple balance sheet initiatives currently underway support its path toward regaining compliance within the Nasdaq review period.