Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries The Marygold Companies Reports Financial Results for 2024 First Fiscal Quarter By: The Marygold Companies, Inc. via Business Wire November 13, 2023 at 18:04 PM EST The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the 2024 first fiscal quarter ended September 30, 2023. Net revenues for the three months ended September 30, 2023 were $8.2 million, versus $8.9 million last year. The Company registered a net loss of $500 thousand, equal to a loss of $0.1 per share, for the fiscal 2024 first quarter, principally reflecting continued investment in the Marygold & Co. fintech app, compared with net income of $497 thousand, or $0.01 per share, last year. TMC’s balance sheet remained strong at September 30, 2023. Cash and cash equivalents amounted to $7.0 million at the end of the quarter, and the Company has essentially no debt. Total assets at September 30, 2023, were $35.5 million, and total stockholders’ equity at the quarter’s end was $30.0 million. “Good progress was made during the quarter on an operational basis, and the Company remains cash flow positive,” said David Neibert, TMC’s Chief Operations Officer. “Net income at the operating subsidiary levels was slightly lower than the comparative year period, due to several factors, including: a strengthening of the US dollar in our foreign markets, reflecting a lower value in currency translation; marketing expenses in connection with the rollout of a new product line by our Original Sprout subsidiary; and, most impactfully, by higher expenses in connection with the final stages of development and initial marketing of our mobile fintech app by our Marygold & Co. subsidiary. Our USCF Investments subsidiary and our core businesses remain strong, with the revenue downturn for the first quarter well within our range of acceptable volatility. We plan to continue investing in the fintech space, which will continue to impact earnings for the short term, as we set the stage for TMC’s renewed focus on the financial services sector in the coming years.” Nicholas Gerber, TMC’s Chief Executive Officer, said, “While we strive to maintain cash flow neutral operating results as we calculate our investment in Marygold & Co., economic conditions beyond our control impacted our performance for the quarter ended September 30, 2023. Our goal is to successfully put the foundational building blocks together for a sustainable, profitable, long-term future, while remaining debt free and maintaining a high level of cash reserves. From our exciting new mobile fintech app and financial services offerings to the innovative new products and services produced and provided by our other operating units, our objective is to enhance long-term value for all of our stakeholders.” Business Units The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 15 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat’s Pantry and Ponsonby Pies. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods. Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada. Acquired at the end of 2017, San Clemente, Calif.-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef safe” sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas. Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The company continues further development of a fintech mobile banking app., having completed the initial development stage and soft launch in the U.S. in June 2023. https://marygoldandco.com/ Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its subsidiary acquired in 2022, Tiger Financial & Asset Management Limited (“Tiger”), a U.K. based investment adviser. Tiger’s core business is managing clients’ financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/ About The Marygold Companies, Inc. The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in March 2022, was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may” “will,” “could,” “should” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to, tangible benefits expected to be realized in the 2024 calendar year from current investments, involve significant risks and uncertainties that could cause actual results to differ materially from the expected results and, consequently, should not be relied upon as predictions of future events. These forward-looking statements, including the factors disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 25, 2023, and in the Company’s other filings with the Securities and Exchange Commission, are not exclusive. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release. THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2023 June 30, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 6,987,062 $ 8,161,167 Accounts receivable, net 851,570 1,352,210 Accounts receivable - related parties 1,669,886 1,673,895 Inventories 2,194,827 2,254,139 Prepaid income tax and tax receivable 1,350,165 991,797 Investments, at fair value 13,261,783 11,480,981 Other current assets 973,562 904,153 Total current assets 27,288,855 26,818,342 Restricted cash 413,454 425,043 Property, plant and equipment, net 1,209,739 1,255,302 Operating lease right-of-use asset 701,248 821,021 Goodwill 2,307,202 2,307,202 Intangible assets, net 2,220,755 2,329,970 Deferred tax assets, net - United States 771,287 771,287 Other assets 552,660 552,660 Total assets $ 35,465,200 $ 35,280,827 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,491,543 $ 2,711,931 Expense waivers – related parties 107,213 58,685 Operating lease liabilities, current portion 361,013 457,309 Purchase consideration payable 604,990 604,990 Loans - property and equipment, current portion 346,282 358,802 Total current liabilities 4,911,041 4,191,717 LONG-TERM LIABILITIES Loans - property and equipment, net of current portion 82,543 88,516 Operating lease liabilities, net of current portion 352,347 380,535 Deferred tax liabilities, net - foreign 242,289 242,289 Total long-term liabilities 677,179 711,340 Total liabilities 5,588,220 4,903,057 STOCKHOLDERS’ EQUITY Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at September 30, 2023 and at June 30, 2023 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at June 30, 2023 and at June 30, 2023 39,384 39,384 Additional paid-in capital 12,490,352 12,396,722 Accumulated other comprehensive loss (239,079 ) (144,840 ) Retained earnings 17,586,274 18,086,455 Total stockholders’ equity 29,876,980 30,377,770 Total liabilities and stockholders’ equity $ 35,465,200 $ 35,280,827 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Net revenue Fund management – related party $ 5,049,550 $ 5,419,435 Food products 1,730,527 1,937,426 Security systems 553,719 628,892 Beauty products 774,626 804,078 Financial services 127,092 133,457 Net revenue 8,235,514 8,923,288 Cost of revenue 2,037,188 2,023,664 Gross profit 6,198,326 6,899,624 Operating expense Salaries and compensation 2,589,949 2,368,368 General and administrative expense 2,248,540 1,686,658 Fund operations 1,270,128 1,140,588 Marketing and advertising 972,011 777,710 Depreciation and amortization 153,977 149,208 Total operating expenses 7,234,605 6,122,532 (Loss) income from operations (1,036,279 ) 777,092 Other income (expense): Interest and dividend income 193,043 52,569 Interest expense (3,559 ) (7,794 ) Other income (expense), net 43,993 (98,369 ) Total other income (expense), net 233,477 (53,594 ) (Loss) income before income taxes (802,802 ) 723,498 Benefit (Provision) of income taxes 302,621 (226,330 ) Net (loss) income $ (500,181 ) $ 497,168 Weighted average shares of common stock Basic 40,397,375 40,370,659 Diluted 40,397,375 40,399,873 Net (loss) income per common share Basic $ (0.01 ) $ 0.01 Diluted $ (0.01 ) $ 0.01 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Net (loss) income $ (500,181 ) $ 497,168 Other comprehensive (loss) income: Foreign currency translation (loss) (94,239 ) (313,759 ) Comprehensive (loss) income $ (594,420 ) $ 183,409 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Period Ending September 30, 2023 Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid – in Capital Comprehensive (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,396,722 $ (144,840 ) $ 18,086,455 $ 30,377,770 Loss on currency translation - - - - - (94,239 ) - (94,239 ) Stock-based compensation - - - - 93,630 - - 93,630 Net (loss) - - - - - - (500,181 ) (500,181 ) Balance at September 30, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,490,352 $ (239,079 ) $ 17,586,274 $ 29,876,980 Period Ending September 30, 2022 Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid – in Capital Comprehensive (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,313,205 $ (234,790 ) $ 16,921,426 $ 29,039,274 Loss on currency translation - - - - - (313,759 ) - (313,759 ) Stock-based compensation - - - - 6,700 - - 6,700 Net income - - - - - - 497,168 497,168 Balance at September 30, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,319,905 $ (548,549 ) $ 17,418,594 $ 29,229,383 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended September 30, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (500,181 ) 497,168 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 153,977 149,208 Bad debt expense 213 - Stock-based compensation 93,630 6,700 Net realized and unrealized (gains) losses on investments (269,381 ) 111,855 Operating lease right-of-use asset - non-cash lease cost 128,403 231,070 Decrease (increase) in current assets: Accounts receivable 478,096 (179,083 ) Accounts receivable - related party 4,009 565,296 Prepaid income taxes and tax receivable (359,021 ) 61,872 Inventories 34,198 (194,695 ) Other current assets (70,130 ) (34,814 ) (Decrease) increase in operating liabilities: Accounts payable and accrued expenses 668,487 (149,343 ) Operating lease liabilities (118,480 ) (233,992 ) Expense waivers - related party 48,528 70,448 Purchase consideration payable - (22,493 ) Net cash provided by operating activities 292,348 879,197 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (25,189 ) (9,418 ) Proceeds from sale of investments 7,829,645 - Purchase of investments (9,341,066 ) (257,624 ) Net cash (used in) investing activities (1,536,610 ) (267,042 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment loans (3,656 ) (3,476 ) Net cash (used in) by financing activities (3,656 ) (3,476 ) Effect of exchange rate change on cash and cash equivalents 62,224 (237,331 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (1,185,694 ) 371,348 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 8,586,210 13,928,899 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 7,400,516 14,300,247 Cash and cash equivalents 6,987,062 13,370,714 Restricted cash 413,454 929,533 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 7,400,516 14,300,247 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 4,727 4,018 Income taxes paid, net $ 86,978 70,557 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20231113014886/en/Contacts Media and investors, for more Information, contact: Roger S. Pondel PondelWilkinson Inc. 310-279-5965 rpondel@pondel.com Contact the Company: David Neibert, Chief Operations Officer 949-429-5370 dneibert@themarygoldcompanies.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
The Marygold Companies Reports Financial Results for 2024 First Fiscal Quarter By: The Marygold Companies, Inc. via Business Wire November 13, 2023 at 18:04 PM EST The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the 2024 first fiscal quarter ended September 30, 2023. Net revenues for the three months ended September 30, 2023 were $8.2 million, versus $8.9 million last year. The Company registered a net loss of $500 thousand, equal to a loss of $0.1 per share, for the fiscal 2024 first quarter, principally reflecting continued investment in the Marygold & Co. fintech app, compared with net income of $497 thousand, or $0.01 per share, last year. TMC’s balance sheet remained strong at September 30, 2023. Cash and cash equivalents amounted to $7.0 million at the end of the quarter, and the Company has essentially no debt. Total assets at September 30, 2023, were $35.5 million, and total stockholders’ equity at the quarter’s end was $30.0 million. “Good progress was made during the quarter on an operational basis, and the Company remains cash flow positive,” said David Neibert, TMC’s Chief Operations Officer. “Net income at the operating subsidiary levels was slightly lower than the comparative year period, due to several factors, including: a strengthening of the US dollar in our foreign markets, reflecting a lower value in currency translation; marketing expenses in connection with the rollout of a new product line by our Original Sprout subsidiary; and, most impactfully, by higher expenses in connection with the final stages of development and initial marketing of our mobile fintech app by our Marygold & Co. subsidiary. Our USCF Investments subsidiary and our core businesses remain strong, with the revenue downturn for the first quarter well within our range of acceptable volatility. We plan to continue investing in the fintech space, which will continue to impact earnings for the short term, as we set the stage for TMC’s renewed focus on the financial services sector in the coming years.” Nicholas Gerber, TMC’s Chief Executive Officer, said, “While we strive to maintain cash flow neutral operating results as we calculate our investment in Marygold & Co., economic conditions beyond our control impacted our performance for the quarter ended September 30, 2023. Our goal is to successfully put the foundational building blocks together for a sustainable, profitable, long-term future, while remaining debt free and maintaining a high level of cash reserves. From our exciting new mobile fintech app and financial services offerings to the innovative new products and services produced and provided by our other operating units, our objective is to enhance long-term value for all of our stakeholders.” Business Units The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 15 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat’s Pantry and Ponsonby Pies. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods. Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada. Acquired at the end of 2017, San Clemente, Calif.-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef safe” sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas. Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The company continues further development of a fintech mobile banking app., having completed the initial development stage and soft launch in the U.S. in June 2023. https://marygoldandco.com/ Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its subsidiary acquired in 2022, Tiger Financial & Asset Management Limited (“Tiger”), a U.K. based investment adviser. Tiger’s core business is managing clients’ financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/ About The Marygold Companies, Inc. The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in March 2022, was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may” “will,” “could,” “should” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to, tangible benefits expected to be realized in the 2024 calendar year from current investments, involve significant risks and uncertainties that could cause actual results to differ materially from the expected results and, consequently, should not be relied upon as predictions of future events. These forward-looking statements, including the factors disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 25, 2023, and in the Company’s other filings with the Securities and Exchange Commission, are not exclusive. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release. THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2023 June 30, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 6,987,062 $ 8,161,167 Accounts receivable, net 851,570 1,352,210 Accounts receivable - related parties 1,669,886 1,673,895 Inventories 2,194,827 2,254,139 Prepaid income tax and tax receivable 1,350,165 991,797 Investments, at fair value 13,261,783 11,480,981 Other current assets 973,562 904,153 Total current assets 27,288,855 26,818,342 Restricted cash 413,454 425,043 Property, plant and equipment, net 1,209,739 1,255,302 Operating lease right-of-use asset 701,248 821,021 Goodwill 2,307,202 2,307,202 Intangible assets, net 2,220,755 2,329,970 Deferred tax assets, net - United States 771,287 771,287 Other assets 552,660 552,660 Total assets $ 35,465,200 $ 35,280,827 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,491,543 $ 2,711,931 Expense waivers – related parties 107,213 58,685 Operating lease liabilities, current portion 361,013 457,309 Purchase consideration payable 604,990 604,990 Loans - property and equipment, current portion 346,282 358,802 Total current liabilities 4,911,041 4,191,717 LONG-TERM LIABILITIES Loans - property and equipment, net of current portion 82,543 88,516 Operating lease liabilities, net of current portion 352,347 380,535 Deferred tax liabilities, net - foreign 242,289 242,289 Total long-term liabilities 677,179 711,340 Total liabilities 5,588,220 4,903,057 STOCKHOLDERS’ EQUITY Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at September 30, 2023 and at June 30, 2023 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at June 30, 2023 and at June 30, 2023 39,384 39,384 Additional paid-in capital 12,490,352 12,396,722 Accumulated other comprehensive loss (239,079 ) (144,840 ) Retained earnings 17,586,274 18,086,455 Total stockholders’ equity 29,876,980 30,377,770 Total liabilities and stockholders’ equity $ 35,465,200 $ 35,280,827 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Net revenue Fund management – related party $ 5,049,550 $ 5,419,435 Food products 1,730,527 1,937,426 Security systems 553,719 628,892 Beauty products 774,626 804,078 Financial services 127,092 133,457 Net revenue 8,235,514 8,923,288 Cost of revenue 2,037,188 2,023,664 Gross profit 6,198,326 6,899,624 Operating expense Salaries and compensation 2,589,949 2,368,368 General and administrative expense 2,248,540 1,686,658 Fund operations 1,270,128 1,140,588 Marketing and advertising 972,011 777,710 Depreciation and amortization 153,977 149,208 Total operating expenses 7,234,605 6,122,532 (Loss) income from operations (1,036,279 ) 777,092 Other income (expense): Interest and dividend income 193,043 52,569 Interest expense (3,559 ) (7,794 ) Other income (expense), net 43,993 (98,369 ) Total other income (expense), net 233,477 (53,594 ) (Loss) income before income taxes (802,802 ) 723,498 Benefit (Provision) of income taxes 302,621 (226,330 ) Net (loss) income $ (500,181 ) $ 497,168 Weighted average shares of common stock Basic 40,397,375 40,370,659 Diluted 40,397,375 40,399,873 Net (loss) income per common share Basic $ (0.01 ) $ 0.01 Diluted $ (0.01 ) $ 0.01 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Net (loss) income $ (500,181 ) $ 497,168 Other comprehensive (loss) income: Foreign currency translation (loss) (94,239 ) (313,759 ) Comprehensive (loss) income $ (594,420 ) $ 183,409 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Period Ending September 30, 2023 Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid – in Capital Comprehensive (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,396,722 $ (144,840 ) $ 18,086,455 $ 30,377,770 Loss on currency translation - - - - - (94,239 ) - (94,239 ) Stock-based compensation - - - - 93,630 - - 93,630 Net (loss) - - - - - - (500,181 ) (500,181 ) Balance at September 30, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,490,352 $ (239,079 ) $ 17,586,274 $ 29,876,980 Period Ending September 30, 2022 Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid – in Capital Comprehensive (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,313,205 $ (234,790 ) $ 16,921,426 $ 29,039,274 Loss on currency translation - - - - - (313,759 ) - (313,759 ) Stock-based compensation - - - - 6,700 - - 6,700 Net income - - - - - - 497,168 497,168 Balance at September 30, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,319,905 $ (548,549 ) $ 17,418,594 $ 29,229,383 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended September 30, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (500,181 ) 497,168 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 153,977 149,208 Bad debt expense 213 - Stock-based compensation 93,630 6,700 Net realized and unrealized (gains) losses on investments (269,381 ) 111,855 Operating lease right-of-use asset - non-cash lease cost 128,403 231,070 Decrease (increase) in current assets: Accounts receivable 478,096 (179,083 ) Accounts receivable - related party 4,009 565,296 Prepaid income taxes and tax receivable (359,021 ) 61,872 Inventories 34,198 (194,695 ) Other current assets (70,130 ) (34,814 ) (Decrease) increase in operating liabilities: Accounts payable and accrued expenses 668,487 (149,343 ) Operating lease liabilities (118,480 ) (233,992 ) Expense waivers - related party 48,528 70,448 Purchase consideration payable - (22,493 ) Net cash provided by operating activities 292,348 879,197 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (25,189 ) (9,418 ) Proceeds from sale of investments 7,829,645 - Purchase of investments (9,341,066 ) (257,624 ) Net cash (used in) investing activities (1,536,610 ) (267,042 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment loans (3,656 ) (3,476 ) Net cash (used in) by financing activities (3,656 ) (3,476 ) Effect of exchange rate change on cash and cash equivalents 62,224 (237,331 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (1,185,694 ) 371,348 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 8,586,210 13,928,899 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 7,400,516 14,300,247 Cash and cash equivalents 6,987,062 13,370,714 Restricted cash 413,454 929,533 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 7,400,516 14,300,247 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 4,727 4,018 Income taxes paid, net $ 86,978 70,557 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20231113014886/en/Contacts Media and investors, for more Information, contact: Roger S. Pondel PondelWilkinson Inc. 310-279-5965 rpondel@pondel.com Contact the Company: David Neibert, Chief Operations Officer 949-429-5370 dneibert@themarygoldcompanies.com
The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the 2024 first fiscal quarter ended September 30, 2023. Net revenues for the three months ended September 30, 2023 were $8.2 million, versus $8.9 million last year. The Company registered a net loss of $500 thousand, equal to a loss of $0.1 per share, for the fiscal 2024 first quarter, principally reflecting continued investment in the Marygold & Co. fintech app, compared with net income of $497 thousand, or $0.01 per share, last year. TMC’s balance sheet remained strong at September 30, 2023. Cash and cash equivalents amounted to $7.0 million at the end of the quarter, and the Company has essentially no debt. Total assets at September 30, 2023, were $35.5 million, and total stockholders’ equity at the quarter’s end was $30.0 million. “Good progress was made during the quarter on an operational basis, and the Company remains cash flow positive,” said David Neibert, TMC’s Chief Operations Officer. “Net income at the operating subsidiary levels was slightly lower than the comparative year period, due to several factors, including: a strengthening of the US dollar in our foreign markets, reflecting a lower value in currency translation; marketing expenses in connection with the rollout of a new product line by our Original Sprout subsidiary; and, most impactfully, by higher expenses in connection with the final stages of development and initial marketing of our mobile fintech app by our Marygold & Co. subsidiary. Our USCF Investments subsidiary and our core businesses remain strong, with the revenue downturn for the first quarter well within our range of acceptable volatility. We plan to continue investing in the fintech space, which will continue to impact earnings for the short term, as we set the stage for TMC’s renewed focus on the financial services sector in the coming years.” Nicholas Gerber, TMC’s Chief Executive Officer, said, “While we strive to maintain cash flow neutral operating results as we calculate our investment in Marygold & Co., economic conditions beyond our control impacted our performance for the quarter ended September 30, 2023. Our goal is to successfully put the foundational building blocks together for a sustainable, profitable, long-term future, while remaining debt free and maintaining a high level of cash reserves. From our exciting new mobile fintech app and financial services offerings to the innovative new products and services produced and provided by our other operating units, our objective is to enhance long-term value for all of our stakeholders.” Business Units The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 15 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat’s Pantry and Ponsonby Pies. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods. Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada. Acquired at the end of 2017, San Clemente, Calif.-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef safe” sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas. Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The company continues further development of a fintech mobile banking app., having completed the initial development stage and soft launch in the U.S. in June 2023. https://marygoldandco.com/ Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its subsidiary acquired in 2022, Tiger Financial & Asset Management Limited (“Tiger”), a U.K. based investment adviser. Tiger’s core business is managing clients’ financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/ About The Marygold Companies, Inc. The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in March 2022, was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may” “will,” “could,” “should” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to, tangible benefits expected to be realized in the 2024 calendar year from current investments, involve significant risks and uncertainties that could cause actual results to differ materially from the expected results and, consequently, should not be relied upon as predictions of future events. These forward-looking statements, including the factors disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 25, 2023, and in the Company’s other filings with the Securities and Exchange Commission, are not exclusive. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release. THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2023 June 30, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 6,987,062 $ 8,161,167 Accounts receivable, net 851,570 1,352,210 Accounts receivable - related parties 1,669,886 1,673,895 Inventories 2,194,827 2,254,139 Prepaid income tax and tax receivable 1,350,165 991,797 Investments, at fair value 13,261,783 11,480,981 Other current assets 973,562 904,153 Total current assets 27,288,855 26,818,342 Restricted cash 413,454 425,043 Property, plant and equipment, net 1,209,739 1,255,302 Operating lease right-of-use asset 701,248 821,021 Goodwill 2,307,202 2,307,202 Intangible assets, net 2,220,755 2,329,970 Deferred tax assets, net - United States 771,287 771,287 Other assets 552,660 552,660 Total assets $ 35,465,200 $ 35,280,827 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,491,543 $ 2,711,931 Expense waivers – related parties 107,213 58,685 Operating lease liabilities, current portion 361,013 457,309 Purchase consideration payable 604,990 604,990 Loans - property and equipment, current portion 346,282 358,802 Total current liabilities 4,911,041 4,191,717 LONG-TERM LIABILITIES Loans - property and equipment, net of current portion 82,543 88,516 Operating lease liabilities, net of current portion 352,347 380,535 Deferred tax liabilities, net - foreign 242,289 242,289 Total long-term liabilities 677,179 711,340 Total liabilities 5,588,220 4,903,057 STOCKHOLDERS’ EQUITY Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at September 30, 2023 and at June 30, 2023 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at June 30, 2023 and at June 30, 2023 39,384 39,384 Additional paid-in capital 12,490,352 12,396,722 Accumulated other comprehensive loss (239,079 ) (144,840 ) Retained earnings 17,586,274 18,086,455 Total stockholders’ equity 29,876,980 30,377,770 Total liabilities and stockholders’ equity $ 35,465,200 $ 35,280,827 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (UNAUDITED) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Net revenue Fund management – related party $ 5,049,550 $ 5,419,435 Food products 1,730,527 1,937,426 Security systems 553,719 628,892 Beauty products 774,626 804,078 Financial services 127,092 133,457 Net revenue 8,235,514 8,923,288 Cost of revenue 2,037,188 2,023,664 Gross profit 6,198,326 6,899,624 Operating expense Salaries and compensation 2,589,949 2,368,368 General and administrative expense 2,248,540 1,686,658 Fund operations 1,270,128 1,140,588 Marketing and advertising 972,011 777,710 Depreciation and amortization 153,977 149,208 Total operating expenses 7,234,605 6,122,532 (Loss) income from operations (1,036,279 ) 777,092 Other income (expense): Interest and dividend income 193,043 52,569 Interest expense (3,559 ) (7,794 ) Other income (expense), net 43,993 (98,369 ) Total other income (expense), net 233,477 (53,594 ) (Loss) income before income taxes (802,802 ) 723,498 Benefit (Provision) of income taxes 302,621 (226,330 ) Net (loss) income $ (500,181 ) $ 497,168 Weighted average shares of common stock Basic 40,397,375 40,370,659 Diluted 40,397,375 40,399,873 Net (loss) income per common share Basic $ (0.01 ) $ 0.01 Diluted $ (0.01 ) $ 0.01 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Net (loss) income $ (500,181 ) $ 497,168 Other comprehensive (loss) income: Foreign currency translation (loss) (94,239 ) (313,759 ) Comprehensive (loss) income $ (594,420 ) $ 183,409 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE THREE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022 (UNAUDITED) Period Ending September 30, 2023 Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid – in Capital Comprehensive (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,396,722 $ (144,840 ) $ 18,086,455 $ 30,377,770 Loss on currency translation - - - - - (94,239 ) - (94,239 ) Stock-based compensation - - - - 93,630 - - 93,630 Net (loss) - - - - - - (500,181 ) (500,181 ) Balance at September 30, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,490,352 $ (239,079 ) $ 17,586,274 $ 29,876,980 Period Ending September 30, 2022 Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid – in Capital Comprehensive (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,313,205 $ (234,790 ) $ 16,921,426 $ 29,039,274 Loss on currency translation - - - - - (313,759 ) - (313,759 ) Stock-based compensation - - - - 6,700 - - 6,700 Net income - - - - - - 497,168 497,168 Balance at September 30, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,319,905 $ (548,549 ) $ 17,418,594 $ 29,229,383 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended September 30, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (500,181 ) 497,168 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 153,977 149,208 Bad debt expense 213 - Stock-based compensation 93,630 6,700 Net realized and unrealized (gains) losses on investments (269,381 ) 111,855 Operating lease right-of-use asset - non-cash lease cost 128,403 231,070 Decrease (increase) in current assets: Accounts receivable 478,096 (179,083 ) Accounts receivable - related party 4,009 565,296 Prepaid income taxes and tax receivable (359,021 ) 61,872 Inventories 34,198 (194,695 ) Other current assets (70,130 ) (34,814 ) (Decrease) increase in operating liabilities: Accounts payable and accrued expenses 668,487 (149,343 ) Operating lease liabilities (118,480 ) (233,992 ) Expense waivers - related party 48,528 70,448 Purchase consideration payable - (22,493 ) Net cash provided by operating activities 292,348 879,197 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (25,189 ) (9,418 ) Proceeds from sale of investments 7,829,645 - Purchase of investments (9,341,066 ) (257,624 ) Net cash (used in) investing activities (1,536,610 ) (267,042 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment loans (3,656 ) (3,476 ) Net cash (used in) by financing activities (3,656 ) (3,476 ) Effect of exchange rate change on cash and cash equivalents 62,224 (237,331 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (1,185,694 ) 371,348 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 8,586,210 13,928,899 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 7,400,516 14,300,247 Cash and cash equivalents 6,987,062 13,370,714 Restricted cash 413,454 929,533 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 7,400,516 14,300,247 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 4,727 4,018 Income taxes paid, net $ 86,978 70,557 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20231113014886/en/
Media and investors, for more Information, contact: Roger S. Pondel PondelWilkinson Inc. 310-279-5965 rpondel@pondel.com Contact the Company: David Neibert, Chief Operations Officer 949-429-5370 dneibert@themarygoldcompanies.com