Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries The Marygold Companies Reports Financial Results For the Three and Nine Months Ended March 31, 2022 By: The Marygold Companies, Inc. via Business Wire May 16, 2022 at 16:15 PM EDT --Company Reports Consolidated Profits, as Investment Continues with Development of Marygold Mobile Fintech App-- The Marygold Companies, Inc. (NYSE American: MGLD) (the “Company” or “The Marygold Companies”) (formerly Concierge Technologies, Inc.), a diversified global holding firm, today reported financial results for the third fiscal quarter and nine months ended March 31, 2022. On March 14, 2022, the Company completed an upsized underwritten public offering (which included the exercise, in full, of the over-allotment option) of an aggregate of 1,897,500 shares of common stock at $2.00 per share, receiving gross proceeds of approximately $3.7 million. Maxim Group LLC acted as sole book-running manager for the transaction. “Our third fiscal quarter marked a milestone in the Company’s history and the start of a new era in our corporate development,” said Nicholas Gerber, Chief Executive Officer of The Marygold Companies. “With the up-listing of our shares to the NYSE American LLC, and our new ticker symbol to go with the change in our corporate name, the message is clear that our focus is on achieving solid returns for our shareholders. “Our new corporate name signifies the Company’s evolution since its formation as a global holding firm in 2015, while the NYSE American listing is providing greater liquidity for our shareholders. Through hard work and dedication, our entire team has enabled us to achieve both of these longstanding objectives. To those shareholders who have been with us since 2002, thank you for your patience.” Revenues for the third fiscal quarter totaled $9 million, compared with $10 million a year ago. Net income for the most recent three-month period was $0.9 million, equal to $0.02 per fully diluted per share, compared with $1.6 million, or $0.04 per fully diluted share, last year. Assets under management at our USCF Investments subsidiary continued strong at approximately $5 billion as of March 31, 2022. “While on a consolidated basis we were profitable for the third quarter, the Company’s consumer-based subsidiary performances were impacted by several factors, including global supply chain issues, coupled with markedly higher shipping costs in New Zealand and the U.S., which contributed to lower profit margins. We also continued to invest in our Marygold & Co. subsidiary, which is completing the development of a mobile fintech app. Costs related to that development are expensed at the parent level, and are a major component of the differences in net income for the comparative quarterly periods,” said David Neibert, The Marygold Companies’ Chief Operations Officer. “As the Marygold mobile app is finalized, and the effects of the COVID pandemic begin to ease, we are expecting expenses and cost of goods sold to return to lower levels.” For the nine months ended March 31, 2022, consolidated revenues totaled $28 million, compared with $30 million for the same period last year. Net income for the nine-month period amounted to $12 thousand, equal to breakeven per share, versus net income of $5 million, or $0.13 per fully diluted share, for the comparable period last year. The decrease in net income for the current year-to-date period was primarily due to the $2.5 million settlement in connection with the Company’s indirect subsidiary, United States Commodity Funds, LLC, and United States Oil Fund, LP, which are related business units of USCF Investments. Also contributing to lower earnings were the fintech app development costs, which totaled $1.5 million for the nine months ended March 31, 2022. The Marygold Companies’ balance sheet at March 31, 2022 showed a continuing trend of strengthening. Total assets rose to $34 million, from $32 million as of June 30, 2021. Cash and cash equivalents remained at $16 million while stockholders’ equity increased to $28 million as of March 31, 2022, from $25 million as of June 30, 2021. The Company remains essentially debt free. “We are tremendously excited about the development of the Marygold app, which is nearing completion. We believe the finished mobile app will be embraced as a unique fintech offering, enabling consumers to send, receive, spend, save, invest, and earn money securely through mobile devices. Beta testing is expected to begin within the coming months, and the app is expected to be launched before the end of calendar 2022,” Gerber added, “To monitor its progress or enroll on the user wait list, please visit the website at www.marygoldandco.com." Business Units 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. 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 10 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. 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 in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/. Marygold & Co. (UK) Limited, formed in the U.K. in 2021 and located in London, England for the purpose of acquiring interests in certified financial advisors and asset managers in the U.K. No acquisitions have yet been completed, however certain agreements are in place that remain subject to completion of customary closing conditions prior consummation. About The Marygold Companies, Inc. The Marygold Companies, which changed its corporate 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. 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 the launch of the Company’s fintech mobile banking app, 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 22, 2021, 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. (Financial tables follow) THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2022 June 30, 2021 ASSETS CURRENT ASSETS Cash and cash equivalents $ 16,180,701 $ 16,072,955 Accounts receivable, net 1,007,455 1,070,541 Accounts receivable - related parties 2,346,570 2,038,054 Inventories 2,288,099 1,951,792 Prepaid income tax and tax receivable 705,827 747,343 Investments, at fair value 2,940,930 1,828,926 Other current assets 948,369 399,524 Total current assets 26,417,951 24,109,135 Restricted cash 13,913 13,989 Property, plant and equipment, net 1,559,152 1,573,445 Operating lease right-of-use asset 1,562,908 1,058,199 Goodwill 1,043,473 1,043,473 Intangible assets, net 2,105,053 2,341,803 Deferred tax assets, net - United States 827,476 827,476 Other assets, long - term 540,160 540,160 Total assets $ 34,070,086 $ 31,507,680 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,874,286 $ 3,862,874 Expense waivers – related parties 17,793 69,684 Operating lease liabilities, current portion 680,223 513,071 Notes payable - related parties 603,500 603,500 Loans - property and equipment, current portion 35,896 15,094 Total current liabilities 4,211,698 5,064,223 LONG TERM LIABILITIES Loans - property and equipment, net of current portion 491,420 379,804 Operating lease liabilities, net of current portion 935,355 607,560 Deferred tax liabilities, net - foreign 169,429 169,429 Total long-term liabilities 1,596,204 1,156,793 Total liabilities 5,807,902 6,221,016 STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value; 50,000,000 authorized Series B: 49,360 issued and outstanding at March 31, 2022 and at June 30, 2021 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at March 31, 2022 and 37,485,959 at June 30, 2021 39,383 37,486 Additional paid-in capital 12,313,206 9,330,843 Accumulated other comprehensive income 121,365 142,581 Retained earnings 15,788,181 15,775,705 Total stockholders' equity 28,262,184 25,286,664 Total liabilities and stockholders' equity $ 34,070,086 $ 31,507,680 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) For the Three-Month Periods Ended March 31, For the Nine-Month Periods Ended March 31, 2022 2021 2022 2021 Net revenue Fund management - related party $ 5,868,558 $ 5,997,085 $ 17,226,969 $ 19,182,801 Food products 1,667,345 2,015,529 6,131,791 6,212,698 Security systems 555,006 717,664 1,888,362 2,013,819 Beauty products and other 702,779 813,084 2,716,702 2,846,052 Net revenue 8,793,688 9,543,362 27,963,824 30,255,370 Cost of revenue 2,065,422 2,336,541 7,132,249 7,121,339 Gross profit 6,728,266 7,206,821 20,831,575 23,134,031 Operating expense General and administrative expense 1,651,057 1,512,387 4,973,337 5,071,090 Fund operations 1,171,282 860,027 3,375,135 2,562,525 Marketing and advertising 755,403 689,939 2,160,180 2,227,322 Depreciation and amortization 136,909 178,588 424,727 521,584 Salaries and compensation 1,969,998 1,925,571 6,677,378 6,106,978 Legal settlement - - 2,500,000 - Total operating expenses 5,684,649 5,166,512 20,110,757 16,489,499 Income from operations 1,043,617 2,040,309 720,818 6,644,532 Other income: Other income 251,767 26,748 46,398 203,275 Interest and dividend income 5,546 6,730 19,030 22,193 Interest expense (9,856 ) (9,988 ) (30,142 ) (30,215 ) Total other income, net 247,457 23,490 35,286 195,253 Income before income taxes 1,291,074 2,063,799 756,104 6,839,785 Provision of income taxes (420,940 ) (480,991 ) (743,628 ) (1,685,754 ) Net income $ 870,134 $ 1,582,808 $ 12,476 $ 5,154,031 Weighted average shares of common stock Basic and diluted 38,831,576 38,473,159 38,561,536 38,473,159 Net income per common share Basic and diluted $ 0.02 $ 0.04 $ 0.00 $ 0.13 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Net income $ 870,134 $ 1,582,808 $ 12,476 $ 5,154,031 Other comprehensive income: Foreign currency translation gain (loss) 79,394 (17,317 ) (21,216 ) 352,829 Comprehensive income (loss) $ 949,528 $ 1,565,491 $ (8,740 ) $ 5,506,860 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (UNAUDITED) Period Ending March 31, 2022 Preferred Stock (Series B) Common Stock Number of Shares Amount Number of Shares Par Value Additional Paid - in Capital Accumulated Other Comprehensive (Loss) Income Retained Earnings Total Stockholders' Equity Balance at July 1, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 142,581 $ 15,775,705 $ 25,286,664 Loss on currency translation - - - - - (86,168 ) - (86,168 ) Net loss - - - - - - (1,880,993 ) (1,880,993 ) Balance at September 30, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 56,413 $ 13,894,712 $ 23,319,503 Loss on currency translation - - - - - (14,442 ) - (14,442 ) Net income - - - - - - 1,023,335 1,023,335 Balance at December 31, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 41,971 $ 14,918,047 $ 24,328,396 Gain on currency translation - - - - - 79,394 - 79,394 Issuance of common stock in public offering, net of issuance costs $545,090 - - 1,897,500 1,897 2,982,363 - - 2,984,260 Net income - - - - - - 870,134 870,134 Balance at March 31, 2022 49,360 $ 49 39,383,459 $ 39,383 $ 12,313,206 $ 121,365 $ 15,788,181 $ 28,262,184 Period Ending March 31, 2021 Preferred Stock (Series B) Common Stock Number of Shares Amount Number of Shares Par Value Additional Paid - in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders' Equity Balance at July 1, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (144,744 ) $ 9,926,262 $ 19,149,896 Gain on currency translation - - - - - 72,714 - 72,714 Net income - - - - - - 2,219,434 2,219,434 Balance at September 30, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (72,030 ) $ 12,145,696 $ 21,442,044 Gain on currency translation - - - - - 297,432 - 297,432 Net income - - - - - - 1,351,788 1,351,788 Balance at December 31, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ 225,402 $ 13,497,484 $ 23,091,264 Loss on currency translation - - - - - (17,317 ) - (17,317 ) Conversion of preferred stock to common stock (3,672 ) (4 ) 73,440 74 (70 ) - - - Net income - - - - - - 1,582,808 1,582,808 Balance at March 31, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 208,085 $ 15,080,292 $ 24,656,755 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Nine-Month Periods Ended March 31, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 12,476 $ 5,154,031 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 424,727 521,584 Bad debt expense 3,175 14,082 Impairment to inventory value 3,478 67,576 Unrealized gain on investments (116,148 ) (5,146 ) Loss (gain) on disposal of equipment 37,189 (2,148 ) Operating lease right-of-use asset - non-cash lease cost 494,375 420,948 Decrease (increase) in current assets: Accounts receivable 57,416 (91,002 ) Accounts receivable - related party (308,514 ) 559,327 Prepaid income taxes and tax receivable 43,440 302,313 Inventories (341,966 ) (254,177 ) Other current assets (551,815 ) 47,336 Increase (decrease) in current liabilities: Accounts payable and accrued expenses (979,332 ) (808,350 ) Operating lease liabilities (500,857 ) (424,071 ) Expense waivers - related party (51,891 ) (183,006 ) Net cash (used in) provided by operating activities (1,774,247 ) 5,319,297 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid for acquisition of business assets - (993,435 ) Purchase of real estate and equipment (5,224 ) (41,074 ) Proceeds from sale of property and equipment - 2,148 Sale of investments 506,492 - Purchase of investments (1,501,980 ) (492 ) Net cash used in investing activities (1,000,712 ) (1,032,853 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock, net of underwriter discounts 3,529,350 - Payment of issuance cost of common stock (545,090 ) - Payment of finance lease liabilities (4,167 ) - Repayment of property and equipment loans (11,159 ) (25,394 ) Net cash provided by (used in) financing activities 2,968,934 (25,394 ) Effect of exchange rate change on cash and cash equivalents (86,305 ) 190,171 NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 107,670 4,451,221 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 16,086,944 9,826,042 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 16,194,614 $ 14,277,263 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 12,264 $ 11,989 Income taxes paid, net of refunds $ 833,901 $ 1,247,005 Non-cash financing and investing activities: Acquisition of operating right-of-use assets through operating lease obligations $ 995,805 $ 730,741 Reclassification of acquisition deposit $ - $ 122,111 Acquisition of equipment through finance lease liability $ 150,625 $ - Fair value of warrants of common stock issued to underwriters $ 132,000 $ - View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005871/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 the Three and Nine Months Ended March 31, 2022 By: The Marygold Companies, Inc. via Business Wire May 16, 2022 at 16:15 PM EDT --Company Reports Consolidated Profits, as Investment Continues with Development of Marygold Mobile Fintech App-- The Marygold Companies, Inc. (NYSE American: MGLD) (the “Company” or “The Marygold Companies”) (formerly Concierge Technologies, Inc.), a diversified global holding firm, today reported financial results for the third fiscal quarter and nine months ended March 31, 2022. On March 14, 2022, the Company completed an upsized underwritten public offering (which included the exercise, in full, of the over-allotment option) of an aggregate of 1,897,500 shares of common stock at $2.00 per share, receiving gross proceeds of approximately $3.7 million. Maxim Group LLC acted as sole book-running manager for the transaction. “Our third fiscal quarter marked a milestone in the Company’s history and the start of a new era in our corporate development,” said Nicholas Gerber, Chief Executive Officer of The Marygold Companies. “With the up-listing of our shares to the NYSE American LLC, and our new ticker symbol to go with the change in our corporate name, the message is clear that our focus is on achieving solid returns for our shareholders. “Our new corporate name signifies the Company’s evolution since its formation as a global holding firm in 2015, while the NYSE American listing is providing greater liquidity for our shareholders. Through hard work and dedication, our entire team has enabled us to achieve both of these longstanding objectives. To those shareholders who have been with us since 2002, thank you for your patience.” Revenues for the third fiscal quarter totaled $9 million, compared with $10 million a year ago. Net income for the most recent three-month period was $0.9 million, equal to $0.02 per fully diluted per share, compared with $1.6 million, or $0.04 per fully diluted share, last year. Assets under management at our USCF Investments subsidiary continued strong at approximately $5 billion as of March 31, 2022. “While on a consolidated basis we were profitable for the third quarter, the Company’s consumer-based subsidiary performances were impacted by several factors, including global supply chain issues, coupled with markedly higher shipping costs in New Zealand and the U.S., which contributed to lower profit margins. We also continued to invest in our Marygold & Co. subsidiary, which is completing the development of a mobile fintech app. Costs related to that development are expensed at the parent level, and are a major component of the differences in net income for the comparative quarterly periods,” said David Neibert, The Marygold Companies’ Chief Operations Officer. “As the Marygold mobile app is finalized, and the effects of the COVID pandemic begin to ease, we are expecting expenses and cost of goods sold to return to lower levels.” For the nine months ended March 31, 2022, consolidated revenues totaled $28 million, compared with $30 million for the same period last year. Net income for the nine-month period amounted to $12 thousand, equal to breakeven per share, versus net income of $5 million, or $0.13 per fully diluted share, for the comparable period last year. The decrease in net income for the current year-to-date period was primarily due to the $2.5 million settlement in connection with the Company’s indirect subsidiary, United States Commodity Funds, LLC, and United States Oil Fund, LP, which are related business units of USCF Investments. Also contributing to lower earnings were the fintech app development costs, which totaled $1.5 million for the nine months ended March 31, 2022. The Marygold Companies’ balance sheet at March 31, 2022 showed a continuing trend of strengthening. Total assets rose to $34 million, from $32 million as of June 30, 2021. Cash and cash equivalents remained at $16 million while stockholders’ equity increased to $28 million as of March 31, 2022, from $25 million as of June 30, 2021. The Company remains essentially debt free. “We are tremendously excited about the development of the Marygold app, which is nearing completion. We believe the finished mobile app will be embraced as a unique fintech offering, enabling consumers to send, receive, spend, save, invest, and earn money securely through mobile devices. Beta testing is expected to begin within the coming months, and the app is expected to be launched before the end of calendar 2022,” Gerber added, “To monitor its progress or enroll on the user wait list, please visit the website at www.marygoldandco.com." Business Units 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. 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 10 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. 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 in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/. Marygold & Co. (UK) Limited, formed in the U.K. in 2021 and located in London, England for the purpose of acquiring interests in certified financial advisors and asset managers in the U.K. No acquisitions have yet been completed, however certain agreements are in place that remain subject to completion of customary closing conditions prior consummation. About The Marygold Companies, Inc. The Marygold Companies, which changed its corporate 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. 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 the launch of the Company’s fintech mobile banking app, 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 22, 2021, 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. (Financial tables follow) THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2022 June 30, 2021 ASSETS CURRENT ASSETS Cash and cash equivalents $ 16,180,701 $ 16,072,955 Accounts receivable, net 1,007,455 1,070,541 Accounts receivable - related parties 2,346,570 2,038,054 Inventories 2,288,099 1,951,792 Prepaid income tax and tax receivable 705,827 747,343 Investments, at fair value 2,940,930 1,828,926 Other current assets 948,369 399,524 Total current assets 26,417,951 24,109,135 Restricted cash 13,913 13,989 Property, plant and equipment, net 1,559,152 1,573,445 Operating lease right-of-use asset 1,562,908 1,058,199 Goodwill 1,043,473 1,043,473 Intangible assets, net 2,105,053 2,341,803 Deferred tax assets, net - United States 827,476 827,476 Other assets, long - term 540,160 540,160 Total assets $ 34,070,086 $ 31,507,680 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,874,286 $ 3,862,874 Expense waivers – related parties 17,793 69,684 Operating lease liabilities, current portion 680,223 513,071 Notes payable - related parties 603,500 603,500 Loans - property and equipment, current portion 35,896 15,094 Total current liabilities 4,211,698 5,064,223 LONG TERM LIABILITIES Loans - property and equipment, net of current portion 491,420 379,804 Operating lease liabilities, net of current portion 935,355 607,560 Deferred tax liabilities, net - foreign 169,429 169,429 Total long-term liabilities 1,596,204 1,156,793 Total liabilities 5,807,902 6,221,016 STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value; 50,000,000 authorized Series B: 49,360 issued and outstanding at March 31, 2022 and at June 30, 2021 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at March 31, 2022 and 37,485,959 at June 30, 2021 39,383 37,486 Additional paid-in capital 12,313,206 9,330,843 Accumulated other comprehensive income 121,365 142,581 Retained earnings 15,788,181 15,775,705 Total stockholders' equity 28,262,184 25,286,664 Total liabilities and stockholders' equity $ 34,070,086 $ 31,507,680 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) For the Three-Month Periods Ended March 31, For the Nine-Month Periods Ended March 31, 2022 2021 2022 2021 Net revenue Fund management - related party $ 5,868,558 $ 5,997,085 $ 17,226,969 $ 19,182,801 Food products 1,667,345 2,015,529 6,131,791 6,212,698 Security systems 555,006 717,664 1,888,362 2,013,819 Beauty products and other 702,779 813,084 2,716,702 2,846,052 Net revenue 8,793,688 9,543,362 27,963,824 30,255,370 Cost of revenue 2,065,422 2,336,541 7,132,249 7,121,339 Gross profit 6,728,266 7,206,821 20,831,575 23,134,031 Operating expense General and administrative expense 1,651,057 1,512,387 4,973,337 5,071,090 Fund operations 1,171,282 860,027 3,375,135 2,562,525 Marketing and advertising 755,403 689,939 2,160,180 2,227,322 Depreciation and amortization 136,909 178,588 424,727 521,584 Salaries and compensation 1,969,998 1,925,571 6,677,378 6,106,978 Legal settlement - - 2,500,000 - Total operating expenses 5,684,649 5,166,512 20,110,757 16,489,499 Income from operations 1,043,617 2,040,309 720,818 6,644,532 Other income: Other income 251,767 26,748 46,398 203,275 Interest and dividend income 5,546 6,730 19,030 22,193 Interest expense (9,856 ) (9,988 ) (30,142 ) (30,215 ) Total other income, net 247,457 23,490 35,286 195,253 Income before income taxes 1,291,074 2,063,799 756,104 6,839,785 Provision of income taxes (420,940 ) (480,991 ) (743,628 ) (1,685,754 ) Net income $ 870,134 $ 1,582,808 $ 12,476 $ 5,154,031 Weighted average shares of common stock Basic and diluted 38,831,576 38,473,159 38,561,536 38,473,159 Net income per common share Basic and diluted $ 0.02 $ 0.04 $ 0.00 $ 0.13 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Net income $ 870,134 $ 1,582,808 $ 12,476 $ 5,154,031 Other comprehensive income: Foreign currency translation gain (loss) 79,394 (17,317 ) (21,216 ) 352,829 Comprehensive income (loss) $ 949,528 $ 1,565,491 $ (8,740 ) $ 5,506,860 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (UNAUDITED) Period Ending March 31, 2022 Preferred Stock (Series B) Common Stock Number of Shares Amount Number of Shares Par Value Additional Paid - in Capital Accumulated Other Comprehensive (Loss) Income Retained Earnings Total Stockholders' Equity Balance at July 1, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 142,581 $ 15,775,705 $ 25,286,664 Loss on currency translation - - - - - (86,168 ) - (86,168 ) Net loss - - - - - - (1,880,993 ) (1,880,993 ) Balance at September 30, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 56,413 $ 13,894,712 $ 23,319,503 Loss on currency translation - - - - - (14,442 ) - (14,442 ) Net income - - - - - - 1,023,335 1,023,335 Balance at December 31, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 41,971 $ 14,918,047 $ 24,328,396 Gain on currency translation - - - - - 79,394 - 79,394 Issuance of common stock in public offering, net of issuance costs $545,090 - - 1,897,500 1,897 2,982,363 - - 2,984,260 Net income - - - - - - 870,134 870,134 Balance at March 31, 2022 49,360 $ 49 39,383,459 $ 39,383 $ 12,313,206 $ 121,365 $ 15,788,181 $ 28,262,184 Period Ending March 31, 2021 Preferred Stock (Series B) Common Stock Number of Shares Amount Number of Shares Par Value Additional Paid - in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders' Equity Balance at July 1, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (144,744 ) $ 9,926,262 $ 19,149,896 Gain on currency translation - - - - - 72,714 - 72,714 Net income - - - - - - 2,219,434 2,219,434 Balance at September 30, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (72,030 ) $ 12,145,696 $ 21,442,044 Gain on currency translation - - - - - 297,432 - 297,432 Net income - - - - - - 1,351,788 1,351,788 Balance at December 31, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ 225,402 $ 13,497,484 $ 23,091,264 Loss on currency translation - - - - - (17,317 ) - (17,317 ) Conversion of preferred stock to common stock (3,672 ) (4 ) 73,440 74 (70 ) - - - Net income - - - - - - 1,582,808 1,582,808 Balance at March 31, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 208,085 $ 15,080,292 $ 24,656,755 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Nine-Month Periods Ended March 31, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 12,476 $ 5,154,031 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 424,727 521,584 Bad debt expense 3,175 14,082 Impairment to inventory value 3,478 67,576 Unrealized gain on investments (116,148 ) (5,146 ) Loss (gain) on disposal of equipment 37,189 (2,148 ) Operating lease right-of-use asset - non-cash lease cost 494,375 420,948 Decrease (increase) in current assets: Accounts receivable 57,416 (91,002 ) Accounts receivable - related party (308,514 ) 559,327 Prepaid income taxes and tax receivable 43,440 302,313 Inventories (341,966 ) (254,177 ) Other current assets (551,815 ) 47,336 Increase (decrease) in current liabilities: Accounts payable and accrued expenses (979,332 ) (808,350 ) Operating lease liabilities (500,857 ) (424,071 ) Expense waivers - related party (51,891 ) (183,006 ) Net cash (used in) provided by operating activities (1,774,247 ) 5,319,297 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid for acquisition of business assets - (993,435 ) Purchase of real estate and equipment (5,224 ) (41,074 ) Proceeds from sale of property and equipment - 2,148 Sale of investments 506,492 - Purchase of investments (1,501,980 ) (492 ) Net cash used in investing activities (1,000,712 ) (1,032,853 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock, net of underwriter discounts 3,529,350 - Payment of issuance cost of common stock (545,090 ) - Payment of finance lease liabilities (4,167 ) - Repayment of property and equipment loans (11,159 ) (25,394 ) Net cash provided by (used in) financing activities 2,968,934 (25,394 ) Effect of exchange rate change on cash and cash equivalents (86,305 ) 190,171 NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 107,670 4,451,221 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 16,086,944 9,826,042 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 16,194,614 $ 14,277,263 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 12,264 $ 11,989 Income taxes paid, net of refunds $ 833,901 $ 1,247,005 Non-cash financing and investing activities: Acquisition of operating right-of-use assets through operating lease obligations $ 995,805 $ 730,741 Reclassification of acquisition deposit $ - $ 122,111 Acquisition of equipment through finance lease liability $ 150,625 $ - Fair value of warrants of common stock issued to underwriters $ 132,000 $ - View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005871/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
--Company Reports Consolidated Profits, as Investment Continues with Development of Marygold Mobile Fintech App--
The Marygold Companies, Inc. (NYSE American: MGLD) (the “Company” or “The Marygold Companies”) (formerly Concierge Technologies, Inc.), a diversified global holding firm, today reported financial results for the third fiscal quarter and nine months ended March 31, 2022. On March 14, 2022, the Company completed an upsized underwritten public offering (which included the exercise, in full, of the over-allotment option) of an aggregate of 1,897,500 shares of common stock at $2.00 per share, receiving gross proceeds of approximately $3.7 million. Maxim Group LLC acted as sole book-running manager for the transaction. “Our third fiscal quarter marked a milestone in the Company’s history and the start of a new era in our corporate development,” said Nicholas Gerber, Chief Executive Officer of The Marygold Companies. “With the up-listing of our shares to the NYSE American LLC, and our new ticker symbol to go with the change in our corporate name, the message is clear that our focus is on achieving solid returns for our shareholders. “Our new corporate name signifies the Company’s evolution since its formation as a global holding firm in 2015, while the NYSE American listing is providing greater liquidity for our shareholders. Through hard work and dedication, our entire team has enabled us to achieve both of these longstanding objectives. To those shareholders who have been with us since 2002, thank you for your patience.” Revenues for the third fiscal quarter totaled $9 million, compared with $10 million a year ago. Net income for the most recent three-month period was $0.9 million, equal to $0.02 per fully diluted per share, compared with $1.6 million, or $0.04 per fully diluted share, last year. Assets under management at our USCF Investments subsidiary continued strong at approximately $5 billion as of March 31, 2022. “While on a consolidated basis we were profitable for the third quarter, the Company’s consumer-based subsidiary performances were impacted by several factors, including global supply chain issues, coupled with markedly higher shipping costs in New Zealand and the U.S., which contributed to lower profit margins. We also continued to invest in our Marygold & Co. subsidiary, which is completing the development of a mobile fintech app. Costs related to that development are expensed at the parent level, and are a major component of the differences in net income for the comparative quarterly periods,” said David Neibert, The Marygold Companies’ Chief Operations Officer. “As the Marygold mobile app is finalized, and the effects of the COVID pandemic begin to ease, we are expecting expenses and cost of goods sold to return to lower levels.” For the nine months ended March 31, 2022, consolidated revenues totaled $28 million, compared with $30 million for the same period last year. Net income for the nine-month period amounted to $12 thousand, equal to breakeven per share, versus net income of $5 million, or $0.13 per fully diluted share, for the comparable period last year. The decrease in net income for the current year-to-date period was primarily due to the $2.5 million settlement in connection with the Company’s indirect subsidiary, United States Commodity Funds, LLC, and United States Oil Fund, LP, which are related business units of USCF Investments. Also contributing to lower earnings were the fintech app development costs, which totaled $1.5 million for the nine months ended March 31, 2022. The Marygold Companies’ balance sheet at March 31, 2022 showed a continuing trend of strengthening. Total assets rose to $34 million, from $32 million as of June 30, 2021. Cash and cash equivalents remained at $16 million while stockholders’ equity increased to $28 million as of March 31, 2022, from $25 million as of June 30, 2021. The Company remains essentially debt free. “We are tremendously excited about the development of the Marygold app, which is nearing completion. We believe the finished mobile app will be embraced as a unique fintech offering, enabling consumers to send, receive, spend, save, invest, and earn money securely through mobile devices. Beta testing is expected to begin within the coming months, and the app is expected to be launched before the end of calendar 2022,” Gerber added, “To monitor its progress or enroll on the user wait list, please visit the website at www.marygoldandco.com." Business Units 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. 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 10 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca. 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 in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/. Marygold & Co. (UK) Limited, formed in the U.K. in 2021 and located in London, England for the purpose of acquiring interests in certified financial advisors and asset managers in the U.K. No acquisitions have yet been completed, however certain agreements are in place that remain subject to completion of customary closing conditions prior consummation. About The Marygold Companies, Inc. The Marygold Companies, which changed its corporate 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. 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 the launch of the Company’s fintech mobile banking app, 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 22, 2021, 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. (Financial tables follow) THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2022 June 30, 2021 ASSETS CURRENT ASSETS Cash and cash equivalents $ 16,180,701 $ 16,072,955 Accounts receivable, net 1,007,455 1,070,541 Accounts receivable - related parties 2,346,570 2,038,054 Inventories 2,288,099 1,951,792 Prepaid income tax and tax receivable 705,827 747,343 Investments, at fair value 2,940,930 1,828,926 Other current assets 948,369 399,524 Total current assets 26,417,951 24,109,135 Restricted cash 13,913 13,989 Property, plant and equipment, net 1,559,152 1,573,445 Operating lease right-of-use asset 1,562,908 1,058,199 Goodwill 1,043,473 1,043,473 Intangible assets, net 2,105,053 2,341,803 Deferred tax assets, net - United States 827,476 827,476 Other assets, long - term 540,160 540,160 Total assets $ 34,070,086 $ 31,507,680 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,874,286 $ 3,862,874 Expense waivers – related parties 17,793 69,684 Operating lease liabilities, current portion 680,223 513,071 Notes payable - related parties 603,500 603,500 Loans - property and equipment, current portion 35,896 15,094 Total current liabilities 4,211,698 5,064,223 LONG TERM LIABILITIES Loans - property and equipment, net of current portion 491,420 379,804 Operating lease liabilities, net of current portion 935,355 607,560 Deferred tax liabilities, net - foreign 169,429 169,429 Total long-term liabilities 1,596,204 1,156,793 Total liabilities 5,807,902 6,221,016 STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value; 50,000,000 authorized Series B: 49,360 issued and outstanding at March 31, 2022 and at June 30, 2021 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at March 31, 2022 and 37,485,959 at June 30, 2021 39,383 37,486 Additional paid-in capital 12,313,206 9,330,843 Accumulated other comprehensive income 121,365 142,581 Retained earnings 15,788,181 15,775,705 Total stockholders' equity 28,262,184 25,286,664 Total liabilities and stockholders' equity $ 34,070,086 $ 31,507,680 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) For the Three-Month Periods Ended March 31, For the Nine-Month Periods Ended March 31, 2022 2021 2022 2021 Net revenue Fund management - related party $ 5,868,558 $ 5,997,085 $ 17,226,969 $ 19,182,801 Food products 1,667,345 2,015,529 6,131,791 6,212,698 Security systems 555,006 717,664 1,888,362 2,013,819 Beauty products and other 702,779 813,084 2,716,702 2,846,052 Net revenue 8,793,688 9,543,362 27,963,824 30,255,370 Cost of revenue 2,065,422 2,336,541 7,132,249 7,121,339 Gross profit 6,728,266 7,206,821 20,831,575 23,134,031 Operating expense General and administrative expense 1,651,057 1,512,387 4,973,337 5,071,090 Fund operations 1,171,282 860,027 3,375,135 2,562,525 Marketing and advertising 755,403 689,939 2,160,180 2,227,322 Depreciation and amortization 136,909 178,588 424,727 521,584 Salaries and compensation 1,969,998 1,925,571 6,677,378 6,106,978 Legal settlement - - 2,500,000 - Total operating expenses 5,684,649 5,166,512 20,110,757 16,489,499 Income from operations 1,043,617 2,040,309 720,818 6,644,532 Other income: Other income 251,767 26,748 46,398 203,275 Interest and dividend income 5,546 6,730 19,030 22,193 Interest expense (9,856 ) (9,988 ) (30,142 ) (30,215 ) Total other income, net 247,457 23,490 35,286 195,253 Income before income taxes 1,291,074 2,063,799 756,104 6,839,785 Provision of income taxes (420,940 ) (480,991 ) (743,628 ) (1,685,754 ) Net income $ 870,134 $ 1,582,808 $ 12,476 $ 5,154,031 Weighted average shares of common stock Basic and diluted 38,831,576 38,473,159 38,561,536 38,473,159 Net income per common share Basic and diluted $ 0.02 $ 0.04 $ 0.00 $ 0.13 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Net income $ 870,134 $ 1,582,808 $ 12,476 $ 5,154,031 Other comprehensive income: Foreign currency translation gain (loss) 79,394 (17,317 ) (21,216 ) 352,829 Comprehensive income (loss) $ 949,528 $ 1,565,491 $ (8,740 ) $ 5,506,860 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2022 AND MARCH 31, 2021 (UNAUDITED) Period Ending March 31, 2022 Preferred Stock (Series B) Common Stock Number of Shares Amount Number of Shares Par Value Additional Paid - in Capital Accumulated Other Comprehensive (Loss) Income Retained Earnings Total Stockholders' Equity Balance at July 1, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 142,581 $ 15,775,705 $ 25,286,664 Loss on currency translation - - - - - (86,168 ) - (86,168 ) Net loss - - - - - - (1,880,993 ) (1,880,993 ) Balance at September 30, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 56,413 $ 13,894,712 $ 23,319,503 Loss on currency translation - - - - - (14,442 ) - (14,442 ) Net income - - - - - - 1,023,335 1,023,335 Balance at December 31, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 41,971 $ 14,918,047 $ 24,328,396 Gain on currency translation - - - - - 79,394 - 79,394 Issuance of common stock in public offering, net of issuance costs $545,090 - - 1,897,500 1,897 2,982,363 - - 2,984,260 Net income - - - - - - 870,134 870,134 Balance at March 31, 2022 49,360 $ 49 39,383,459 $ 39,383 $ 12,313,206 $ 121,365 $ 15,788,181 $ 28,262,184 Period Ending March 31, 2021 Preferred Stock (Series B) Common Stock Number of Shares Amount Number of Shares Par Value Additional Paid - in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Total Stockholders' Equity Balance at July 1, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (144,744 ) $ 9,926,262 $ 19,149,896 Gain on currency translation - - - - - 72,714 - 72,714 Net income - - - - - - 2,219,434 2,219,434 Balance at September 30, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (72,030 ) $ 12,145,696 $ 21,442,044 Gain on currency translation - - - - - 297,432 - 297,432 Net income - - - - - - 1,351,788 1,351,788 Balance at December 31, 2020 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ 225,402 $ 13,497,484 $ 23,091,264 Loss on currency translation - - - - - (17,317 ) - (17,317 ) Conversion of preferred stock to common stock (3,672 ) (4 ) 73,440 74 (70 ) - - - Net income - - - - - - 1,582,808 1,582,808 Balance at March 31, 2021 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 208,085 $ 15,080,292 $ 24,656,755 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Nine-Month Periods Ended March 31, 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 12,476 $ 5,154,031 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 424,727 521,584 Bad debt expense 3,175 14,082 Impairment to inventory value 3,478 67,576 Unrealized gain on investments (116,148 ) (5,146 ) Loss (gain) on disposal of equipment 37,189 (2,148 ) Operating lease right-of-use asset - non-cash lease cost 494,375 420,948 Decrease (increase) in current assets: Accounts receivable 57,416 (91,002 ) Accounts receivable - related party (308,514 ) 559,327 Prepaid income taxes and tax receivable 43,440 302,313 Inventories (341,966 ) (254,177 ) Other current assets (551,815 ) 47,336 Increase (decrease) in current liabilities: Accounts payable and accrued expenses (979,332 ) (808,350 ) Operating lease liabilities (500,857 ) (424,071 ) Expense waivers - related party (51,891 ) (183,006 ) Net cash (used in) provided by operating activities (1,774,247 ) 5,319,297 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid for acquisition of business assets - (993,435 ) Purchase of real estate and equipment (5,224 ) (41,074 ) Proceeds from sale of property and equipment - 2,148 Sale of investments 506,492 - Purchase of investments (1,501,980 ) (492 ) Net cash used in investing activities (1,000,712 ) (1,032,853 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock, net of underwriter discounts 3,529,350 - Payment of issuance cost of common stock (545,090 ) - Payment of finance lease liabilities (4,167 ) - Repayment of property and equipment loans (11,159 ) (25,394 ) Net cash provided by (used in) financing activities 2,968,934 (25,394 ) Effect of exchange rate change on cash and cash equivalents (86,305 ) 190,171 NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 107,670 4,451,221 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 16,086,944 9,826,042 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 16,194,614 $ 14,277,263 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 12,264 $ 11,989 Income taxes paid, net of refunds $ 833,901 $ 1,247,005 Non-cash financing and investing activities: Acquisition of operating right-of-use assets through operating lease obligations $ 995,805 $ 730,741 Reclassification of acquisition deposit $ - $ 122,111 Acquisition of equipment through finance lease liability $ 150,625 $ - Fair value of warrants of common stock issued to underwriters $ 132,000 $ - View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005871/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
