Newton Golf Company, Inc. Receives Nasdaq Notice of Non-Compliance with Stockholders’ Equity Requirement

Key Points for Investors:

• Newton Golf Company, Inc. (NASDAQ: NWTG) has received a deficiency letter from The Nasdaq Stock Market LLC, notifying the company that it is not in compliance with Nasdaq Listing Rule 5550(b)(1).
• This rule requires companies listed on the Nasdaq Capital Market to maintain a minimum of \$2,500,000 in stockholders’ equity for continued listing.
• The deficiency was formally communicated to the company on April 6, 2026.
• This notice does not result in immediate delisting of the company’s common stock, but it initiates a compliance process with deadlines and requirements that must be met to avoid further action.

Details and Implications for Shareholders:

• Immediate Impact:
  • The company’s stock will continue to trade on Nasdaq under the symbol NWTG for the time being.
  • The notice itself is not a delisting determination, but it is a material event that may affect shareholder value and market perception.
• Required Actions:
  • Newton Golf Company has 45 calendar days from the date of the notice to submit a plan to Nasdaq outlining how it intends to regain compliance with the stockholders’ equity requirement.
  • If Nasdaq accepts the plan, the company may be given up to 180 calendar days from the date of the notice to evidence compliance.
• Risks and Uncertainties:
  • If the company fails to submit an acceptable plan or does not regain compliance within the permitted timeframe, its common stock may be subject to delisting from The Nasdaq Capital Market.
  • Delisting could have a significant impact on share liquidity, market price, and overall shareholder value.
• Forward-Looking Statements:
  • The company has stated its intent to submit a compliance plan within the required 45-day period and believes it can regain compliance by the Nasdaq-imposed deadline.
  • However, management cautions that there is no guarantee of successful compliance, and actual results may differ due to various risks including general economic conditions, changes in consumer demand, supply chain challenges, competition in the golf equipment market, and potential regulatory or legal challenges.
  • Investors should review the company’s filings, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for additional risk factors and ongoing updates.
• Other Relevant Information:
  • The company is classified as an Emerging Growth Company under SEC rules and has not elected to use the extended transition period for complying with new or revised financial accounting standards.
  • The company’s common stock, par value \$0.01 per share, is registered on Nasdaq under the symbol NWTG.

Why This Matters to Shareholders:

• This notification is a material event that may influence the company’s share price due to potential uncertainty regarding the company’s ongoing compliance with Nasdaq listing rules.
• The outcome of Newton Golf Company’s compliance plan and Nasdaq’s response will be closely watched by investors and could be a catalyst for significant share price movement, either positive (if compliance is regained) or negative (if delisting proceedings advance).
• Shareholders should monitor upcoming company communications for updates on the compliance plan and ongoing status with Nasdaq.

Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information herein is based on a recent company filing and may be subject to change or update as more details become available.

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