Newton Golf Company, Inc. Segments Disclosure
NOTE 14. REPORTABLE SEGMENT INFORMATION
The Company is organized and operates as one operating and reportable segment. The Company’s revenue comes from customers in the following geographic regions.
The following table presents our net sales by region for the period presented:
| Years Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Region | Revenue | Revenue | ||||||
| United States | $ | 8,030,000 | $ | 3,252,000 | ||||
| Canada | 56,000 | 31,000 | ||||||
Japan | 43,000 | 26,000 | ||||||
| South Korea | 14,000 | |||||||
| All other regions | 6,000 | 122,000 | ||||||
| Net Sales | $ | 8,135,000 | $ | 3,445,000 | ||||
This determination is based on the management approach which designates internal information regularly available to the CODM for making decisions and assessing performance as the source of determination of the Company’s reportable segments. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance.
The accounting policies of the one reportable segment are the same as those described in the summary of significant accounting policies. The CODM uses net income (loss), as reported in our statements of operations, to measure segment profit or loss, assess performance, and make strategic capital resources allocations. The measure of segment assets is reported on our balance sheets as total assets. The significant expense categories regularly provided to the CODM are the expenses as noted on the face of the statements of operations.
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net sales | $ | 8,135,000 | $ | 3,445,000 | ||||
| Cost of sales | 3,581,000 | 1,171,000 | ||||||
| Gross profit | 4,554,000 | 2,274,000 | ||||||
| Less: | ||||||||
| Employee compensation and benefits | 1,463,000 | 1,423,000 | ||||||
| Stock-based compensation expense | 274,000 | 308,000 | ||||||
| Sales and marketing expense | 6,429,000 | 3,440,000 | ||||||
| Other operating expenses | 3,936,000 | 2,081,000 | ||||||
| Total operating expenses | 12,102,000 | 7,252,000 | ||||||
| Loss from operations | $ | (7,548,000 | ) | $ | (4,978,000 | ) | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Apr 4, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.