Newton Golf Company, Inc. has received a notification from the listing qualifications department of The Nasdaq Stock Market. The company said 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 $2.5 million in stockholders’ equity (Stockholders’ Equity Requirement). Newton Golf has until May 21, 2026, to submit a plan to regain compliance. The company said it anticipates filing the plan before 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, 2026, to establish compliance.
As part of its efforts to strengthen the balance sheet, Newton Golf entered into a $2.0 million convertible note financing agreement after the 2025 year-end. Approximately $1.4 million of the financing has been executed to date. The convertible note financing was completed at a price above the company’s recent market levels and is expected to provide sufficient operating runway as the company works to regain compliance. As a result, Newton Golf 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.
“We appreciate the additional time Nasdaq has allowed us to regain compliance,” said Akinobu Yorihiro, Interim CEO and Chief Technology Officer, Newton Golf. “The reduced stockholder’s equity is primarily attributable to increased investments in marketing, personnel, and public company infrastructure supporting the company’s rapid revenue growth and business development initiatives, together with temporary gross margin impacts related to incremental full-time staffing, temporary labor, and overtime required to meet increased product demand. We believe these investments reflect the accelerating adoption of our physics-driven shaft technology and the continued strengthening of the Newton Golf brand.”
Newton Golf highlighted that it was ranked No. 1 in sales of shafts for both drivers and fairway woods at Club Champion, “one of the world’s largest and most respected professional club-fitting retailers.”
The company also recently announced record 2025 net sales growth of 136 percent (granted it was off a very low base of business), added a valuable new member to our board of directors, completed an exclusive distribution agreement with Voice Caddie in South Korea, and began structured product testing and evaluation programs with leading global golf equipment manufacturers.
The company said it also introduced additional shaft configurations at the 2026 PGA Show, extending the Newton Motion platform across fairway wood and hybrid categories, supporting a broader system-based fitting approach.
Newton Golf management said it believes recent product platform expansion, international distribution growth and ongoing OEM evaluation programs, together with continued revenue growth and strengthening brand equity, support the company’s path toward restoring stockholders’ equity and regaining compliance within the Nasdaq review period while positioning Newton Golf to expand beyond a high-growth niche innovator toward a broader premium platform within the global golf equipment market.
Image courtesy Newton Golf Company
