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 2023 Third Fiscal Quarter By: The Marygold Companies, Inc. via Business Wire May 15, 2023 at 16:05 PM EDT -Company Continues to Post Profitable Operating Results, with Strong Balance Sheet and Cash Position- The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the third fiscal quarter and nine-months ended March 31, 2023. Net revenue for the three months ended March 31, 2023 was $8.3 million, versus $8.9 million for the comparable prior year period. The Company achieved net income of $153,294 for the current third fiscal quarter, equal to breakeven per diluted share, compared with $870,134 for the quarter ended March 31, 2022, or $0.02 per diluted share. For the first nine months of the current fiscal year, net revenue was $15.7 million, versus $17.2 million in the comparable period last year. Net income for the nine months ended March 31, 2023 increased to $832,256, equal to $0.02 per diluted share, compared with $12,476, or breakeven per diluted share, in the same period a year ago. Net income for last year’s nine-month period was impacted by a $2.5 million legal settlement. The Company maintained its strong balance sheet at March 31, 2023, with no debt. Cash and cash equivalents amounted to $9.9 million at the quarter’s end, compared with $12.9 million at June 30, 2022, with the decrease primarily reflecting continued investments in the development of the Company’s new fintech app by its subsidiary Marygold & Co. Total stockholders’ equity at March 31, 2023 rose to $29.9 million, from $29.0 million at June 30, 2022. Total assets were $34.7 million at the close of the 2023 third fiscal quarter, compared with $35.3 million at June 30, 2022. “The Company again achieved profitable operations for the third fiscal quarter, as we continued to invest in the final stages of development of our Marygold mobile fintech app,” said David Neibert, Chief Operations Officer of The Marygold Companies. “Net income and revenue also were impacted by lower assets under management (AUM) at USCF Investments, which is our largest subsidiary. Average AUM at USCF Investments was approximately $3.7 billion in the 2023 third quarter, compared with $4.4 billion last year, with resulting lower management fees. The lower AUM is attributed to the uncertain, and sometimes volatile, nature of the commodities market in general and not an indication of any USCF operating deficiencies.” “Our non-financial operations – Food Products, Security Systems and Beauty Products – were profitable overall for the third quarter, with slightly increased revenues as a group. Inflationary pressures again had an impact on margins at these business units, and initiatives are progressing that are intended to enhance the performance of these businesses through product mix changes and entrance into new sales channels,” Neibert added. Nicholas Gerber, TMC’s Chief Executive Officer, said, “Notwithstanding the uncertain economic environment and turbulence in the commercial banking and financial sector, TMC is performing well and is on target to meet our objectives. We are optimistic about the prospects for each of our operating units and particularly excited by the early results of beta testing for our Marygold mobile fintech app. Marygold has about 11,000 individuals on a wait list who, during May and June, we intend to invite to download and use the app. We expect a formal marketing campaign and open commercial launch of the app in the near future. The entirety of the Marygold app development has been accomplished by the use of internal funds derived from existing profitable consolidated operations. We are extremely proud of that accomplishment and that TMC remains debt-free and without dilutive equity capital raises.” 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 12 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 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. during August 2021, operates through its recently acquired subsidiary, 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, a formal marketing campaign and open commercial launch of the app in the near future, 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 28, 2022, 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) March 31, 2023 June 30, 2022 (1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,858,277 $ 12,915,620 Accounts receivable, net 1,089,286 959,350 Accounts receivable - related parties 1,745,159 2,230,874 Inventories 2,386,259 2,200,742 Prepaid income tax and tax receivable 1,034,746 1,166,318 Investments, at fair value 8,703,490 5,065,931 Other current assets 1,138,291 699,547 Total current assets 25,955,508 25,238,382 Restricted cash 417,467 1,013,279 Property, plant and equipment, net 1,288,421 1,391,894 Operating lease right-of-use asset 1,040,356 1,357,686 Goodwill 2,307,202 2,307,202 Intangible assets, net 2,420,029 2,708,896 Deferred tax assets, net - United States 753,078 753,078 Other assets, long - term 552,660 540,160 Total assets $ 34,734,721 $ 35,310,577 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,414,628 $ 2,805,790 Expense waivers – related parties 28,970 70,199 Operating lease liabilities, current portion 578,030 660,957 Purchase consideration payable 604,990 1,237,207 Loans - property and equipment, current portion 33,307 33,496 Total current liabilities 3,659,925 4,807,649 LONG-TERM LIABILITIES Loans - property and equipment, net of current portion 417,694 459,178 Operating lease liabilities, net of current portion 488,424 743,923 Deferred tax liabilities, net-foreign 260,553 260,553 Total long-term liabilities 1,166,671 1,463,654 Total liabilities 4,826,596 6,271,303 STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at March 31, 2023 and at June 30, 2022 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at March 31, 2023 and at June 30, 2022 39,384 39,384 Additional paid-in capital 12,359,500 12,313,205 Accumulated other comprehensive loss (244,490 ) (234,790 ) Retained earnings 17,753,682 16,921,426 Total stockholders' equity 29,908,125 29,039,274 Total liabilities and stockholders' equity $ 34,734,721 $ 35,310,577 (1) Derived from audited financial statements THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net revenue Fund management - related party $ 5,022,398 $ 5,868,558 $ 15,708,004 17,226,969 Food products 1,824,789 1,667,345 5,701,714 6,131,791 Security systems 576,248 555,006 1,870,986 1,888,362 Beauty products 745,468 702,779 2,334,009 2,716,702 Financial services 129,868 - 387,811 - Net revenue 8,298,771 8,793,688 26,002,524 27,963,824 Cost of revenue 2,194,762 2,065,422 6,449,457 7,132,249 Gross profit 6,104,009 6,728,266 19,553,067 20,831,575 Operating expense Salaries and compensation 2,354,903 1,969,998 7,530,000 6,677,378 General and administrative expense 1,750,148 1,651,057 5,268,952 4,973,337 Fund operations 1,080,834 1,171,282 3,333,666 3,375,135 Marketing and advertising 612,333 755,403 1,936,504 2,160,180 Depreciation and amortization 139,656 136,909 436,685 424,727 Legal settlement - - - 2,500,000 Total operating expenses 5,937,874 5,684,649 18,505,807 20,110,757 Income from operations 166,135 1,043,617 1,047,260 720,818 Other income (expense): Interest and dividend income 58,690 5,546 173,875 19,030 Interest expense (4,887 ) (9,856 ) (16,315 ) (30,142 ) Other income (expense) (96,390 ) 251,767 (67,644 ) 46,398 Total other income (expense), net (42,587 ) 247,457 89,916 35,286 Income before income taxes 123,548 1,291,074 1,137,176 756,104 Benefit (provision) of income taxes 29,746 (420,940 ) (304,920 ) (743,628 ) Net income $ 153,294 $ 870,134 $ 832,256 $ 12,476 Weighted average shares of common stock Basic 40,370,659 38,831,576 40,370,659 38,561,536 Diluted 40,438,348 38,831,576 40,401,952 38,561,536 Net income per common share Basic $ 0.00 $ 0.02 $ 0.02 $ 0.00 Diluted $ 0.00 $ 0.02 $ 0.02 $ 0.00 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net income $ 153,294 $ 870,134 $ 832,256 $ 12,476 Other comprehensive (loss) income: Foreign currency translation (loss) gain (29,890 ) 79,394 (9,700 ) (21,216 ) Comprehensive income (loss) $ 123,404 $ 949,528 $ 822,556 $ (8,740 ) THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2023 AND MARCH 31, 2022 (UNAUDITED) Period Ending March 31, 2023 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, 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 Gain on currency translation - - - - - 333,949 - 333,949 Stock-based compensation - - - - 9,704 - - 9,704 Net income - - - - - - 181,794 181,794 Balance at December 31, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,329,609 $ (214,600 ) $ 17,600,388 $ 29,754,830 Loss on currency translation - - - - - (29,890 ) - (29,890 ) Stock-based compensation - - - - 29,891 - - 29,891 Net income - - - - - - 153,294 153,294 Balance at March 31, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,359,500 $ (244,490 ) $ 17,753,682 $ 29,908,125 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 Income (Loss) 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 of $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 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Month Period Ended March 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 832,256 $ 12,476 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 436,685 424,727 Bad debt expense 1,378 3,175 Impairment of inventory value 2,698 3,478 Stock-based compensation 46,295 - Unrealized loss (gain) on investments 76,604 (116,148 ) Loss on disposal of equipment - 37,189 Operating lease right-of-use asset - non-cash lease cost 432,089 494,375 Decrease (increase) in current assets: Accounts receivable, net (143,455 ) 57,416 Accounts receivable - related party 485,715 (308,514 ) Prepaid income taxes and tax receivable 130,860 43,440 Inventories (187,849 ) (341,966 ) Other current assets (437,582 ) (551,815 ) (Decrease) increase in current liabilities: Accounts payable, accrued expenses and legal settlement (382,048 ) (979,332 ) Operating lease liabilities (433,306 ) (500,857 ) Expense waivers - related party (41,229 ) (51,891 ) Net cash provided by (used in) operating activities 819,111 (1,774,247 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (73,982 ) (5,224 ) Purchase consideration payable (616,180 ) - Proceeds from sale of investments 4,276,765 506,492 Purchase of investments (7,983,971 ) (1,501,980 ) Net cash (used in) investing activities (4,397,368 ) (1,000,712 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment loans (10,737 ) (11,159 ) Principal payments of finance lease liability (5,573 ) (4,167 ) Payment of issuance cost of common stock - (545,090 ) Proceeds from issuance of common stock, net of underwriter discounts - 3,529,350 Net cash (used in) provided by financing activities (16,310 ) 2,968,934 Effect of exchange rate change on cash and cash equivalents (58,588 ) (86,305 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (3,653,155 ) 107,670 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 13,928,899 16,086,944 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 10,275,744 $ 16,194,614 Cash and cash equivalents 9,858,277 15,181,335 Restricted cash 417,467 1,013,279 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 10,275,744 $ 16,194,614 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 11,687 $ 12,264 Income taxes paid, net $ 195,439 $ 833,901 NON CASH INVESTING AND FINANCING ACTIVITIES: Fair value of warrants of common stock issued to underwriters $ - $ 132,000 Acquisition of operating right-of-use assets through operating lease liability $ 103,609 $ 995,805 Acquisition of equipment through finance lease liability $ - $ 150,625 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/20230515005798/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 2023 Third Fiscal Quarter By: The Marygold Companies, Inc. via Business Wire May 15, 2023 at 16:05 PM EDT -Company Continues to Post Profitable Operating Results, with Strong Balance Sheet and Cash Position- The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the third fiscal quarter and nine-months ended March 31, 2023. Net revenue for the three months ended March 31, 2023 was $8.3 million, versus $8.9 million for the comparable prior year period. The Company achieved net income of $153,294 for the current third fiscal quarter, equal to breakeven per diluted share, compared with $870,134 for the quarter ended March 31, 2022, or $0.02 per diluted share. For the first nine months of the current fiscal year, net revenue was $15.7 million, versus $17.2 million in the comparable period last year. Net income for the nine months ended March 31, 2023 increased to $832,256, equal to $0.02 per diluted share, compared with $12,476, or breakeven per diluted share, in the same period a year ago. Net income for last year’s nine-month period was impacted by a $2.5 million legal settlement. The Company maintained its strong balance sheet at March 31, 2023, with no debt. Cash and cash equivalents amounted to $9.9 million at the quarter’s end, compared with $12.9 million at June 30, 2022, with the decrease primarily reflecting continued investments in the development of the Company’s new fintech app by its subsidiary Marygold & Co. Total stockholders’ equity at March 31, 2023 rose to $29.9 million, from $29.0 million at June 30, 2022. Total assets were $34.7 million at the close of the 2023 third fiscal quarter, compared with $35.3 million at June 30, 2022. “The Company again achieved profitable operations for the third fiscal quarter, as we continued to invest in the final stages of development of our Marygold mobile fintech app,” said David Neibert, Chief Operations Officer of The Marygold Companies. “Net income and revenue also were impacted by lower assets under management (AUM) at USCF Investments, which is our largest subsidiary. Average AUM at USCF Investments was approximately $3.7 billion in the 2023 third quarter, compared with $4.4 billion last year, with resulting lower management fees. The lower AUM is attributed to the uncertain, and sometimes volatile, nature of the commodities market in general and not an indication of any USCF operating deficiencies.” “Our non-financial operations – Food Products, Security Systems and Beauty Products – were profitable overall for the third quarter, with slightly increased revenues as a group. Inflationary pressures again had an impact on margins at these business units, and initiatives are progressing that are intended to enhance the performance of these businesses through product mix changes and entrance into new sales channels,” Neibert added. Nicholas Gerber, TMC’s Chief Executive Officer, said, “Notwithstanding the uncertain economic environment and turbulence in the commercial banking and financial sector, TMC is performing well and is on target to meet our objectives. We are optimistic about the prospects for each of our operating units and particularly excited by the early results of beta testing for our Marygold mobile fintech app. Marygold has about 11,000 individuals on a wait list who, during May and June, we intend to invite to download and use the app. We expect a formal marketing campaign and open commercial launch of the app in the near future. The entirety of the Marygold app development has been accomplished by the use of internal funds derived from existing profitable consolidated operations. We are extremely proud of that accomplishment and that TMC remains debt-free and without dilutive equity capital raises.” 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 12 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 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. during August 2021, operates through its recently acquired subsidiary, 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, a formal marketing campaign and open commercial launch of the app in the near future, 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 28, 2022, 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) March 31, 2023 June 30, 2022 (1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,858,277 $ 12,915,620 Accounts receivable, net 1,089,286 959,350 Accounts receivable - related parties 1,745,159 2,230,874 Inventories 2,386,259 2,200,742 Prepaid income tax and tax receivable 1,034,746 1,166,318 Investments, at fair value 8,703,490 5,065,931 Other current assets 1,138,291 699,547 Total current assets 25,955,508 25,238,382 Restricted cash 417,467 1,013,279 Property, plant and equipment, net 1,288,421 1,391,894 Operating lease right-of-use asset 1,040,356 1,357,686 Goodwill 2,307,202 2,307,202 Intangible assets, net 2,420,029 2,708,896 Deferred tax assets, net - United States 753,078 753,078 Other assets, long - term 552,660 540,160 Total assets $ 34,734,721 $ 35,310,577 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,414,628 $ 2,805,790 Expense waivers – related parties 28,970 70,199 Operating lease liabilities, current portion 578,030 660,957 Purchase consideration payable 604,990 1,237,207 Loans - property and equipment, current portion 33,307 33,496 Total current liabilities 3,659,925 4,807,649 LONG-TERM LIABILITIES Loans - property and equipment, net of current portion 417,694 459,178 Operating lease liabilities, net of current portion 488,424 743,923 Deferred tax liabilities, net-foreign 260,553 260,553 Total long-term liabilities 1,166,671 1,463,654 Total liabilities 4,826,596 6,271,303 STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at March 31, 2023 and at June 30, 2022 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at March 31, 2023 and at June 30, 2022 39,384 39,384 Additional paid-in capital 12,359,500 12,313,205 Accumulated other comprehensive loss (244,490 ) (234,790 ) Retained earnings 17,753,682 16,921,426 Total stockholders' equity 29,908,125 29,039,274 Total liabilities and stockholders' equity $ 34,734,721 $ 35,310,577 (1) Derived from audited financial statements THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net revenue Fund management - related party $ 5,022,398 $ 5,868,558 $ 15,708,004 17,226,969 Food products 1,824,789 1,667,345 5,701,714 6,131,791 Security systems 576,248 555,006 1,870,986 1,888,362 Beauty products 745,468 702,779 2,334,009 2,716,702 Financial services 129,868 - 387,811 - Net revenue 8,298,771 8,793,688 26,002,524 27,963,824 Cost of revenue 2,194,762 2,065,422 6,449,457 7,132,249 Gross profit 6,104,009 6,728,266 19,553,067 20,831,575 Operating expense Salaries and compensation 2,354,903 1,969,998 7,530,000 6,677,378 General and administrative expense 1,750,148 1,651,057 5,268,952 4,973,337 Fund operations 1,080,834 1,171,282 3,333,666 3,375,135 Marketing and advertising 612,333 755,403 1,936,504 2,160,180 Depreciation and amortization 139,656 136,909 436,685 424,727 Legal settlement - - - 2,500,000 Total operating expenses 5,937,874 5,684,649 18,505,807 20,110,757 Income from operations 166,135 1,043,617 1,047,260 720,818 Other income (expense): Interest and dividend income 58,690 5,546 173,875 19,030 Interest expense (4,887 ) (9,856 ) (16,315 ) (30,142 ) Other income (expense) (96,390 ) 251,767 (67,644 ) 46,398 Total other income (expense), net (42,587 ) 247,457 89,916 35,286 Income before income taxes 123,548 1,291,074 1,137,176 756,104 Benefit (provision) of income taxes 29,746 (420,940 ) (304,920 ) (743,628 ) Net income $ 153,294 $ 870,134 $ 832,256 $ 12,476 Weighted average shares of common stock Basic 40,370,659 38,831,576 40,370,659 38,561,536 Diluted 40,438,348 38,831,576 40,401,952 38,561,536 Net income per common share Basic $ 0.00 $ 0.02 $ 0.02 $ 0.00 Diluted $ 0.00 $ 0.02 $ 0.02 $ 0.00 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net income $ 153,294 $ 870,134 $ 832,256 $ 12,476 Other comprehensive (loss) income: Foreign currency translation (loss) gain (29,890 ) 79,394 (9,700 ) (21,216 ) Comprehensive income (loss) $ 123,404 $ 949,528 $ 822,556 $ (8,740 ) THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2023 AND MARCH 31, 2022 (UNAUDITED) Period Ending March 31, 2023 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, 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 Gain on currency translation - - - - - 333,949 - 333,949 Stock-based compensation - - - - 9,704 - - 9,704 Net income - - - - - - 181,794 181,794 Balance at December 31, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,329,609 $ (214,600 ) $ 17,600,388 $ 29,754,830 Loss on currency translation - - - - - (29,890 ) - (29,890 ) Stock-based compensation - - - - 29,891 - - 29,891 Net income - - - - - - 153,294 153,294 Balance at March 31, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,359,500 $ (244,490 ) $ 17,753,682 $ 29,908,125 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 Income (Loss) 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 of $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 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Month Period Ended March 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 832,256 $ 12,476 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 436,685 424,727 Bad debt expense 1,378 3,175 Impairment of inventory value 2,698 3,478 Stock-based compensation 46,295 - Unrealized loss (gain) on investments 76,604 (116,148 ) Loss on disposal of equipment - 37,189 Operating lease right-of-use asset - non-cash lease cost 432,089 494,375 Decrease (increase) in current assets: Accounts receivable, net (143,455 ) 57,416 Accounts receivable - related party 485,715 (308,514 ) Prepaid income taxes and tax receivable 130,860 43,440 Inventories (187,849 ) (341,966 ) Other current assets (437,582 ) (551,815 ) (Decrease) increase in current liabilities: Accounts payable, accrued expenses and legal settlement (382,048 ) (979,332 ) Operating lease liabilities (433,306 ) (500,857 ) Expense waivers - related party (41,229 ) (51,891 ) Net cash provided by (used in) operating activities 819,111 (1,774,247 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (73,982 ) (5,224 ) Purchase consideration payable (616,180 ) - Proceeds from sale of investments 4,276,765 506,492 Purchase of investments (7,983,971 ) (1,501,980 ) Net cash (used in) investing activities (4,397,368 ) (1,000,712 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment loans (10,737 ) (11,159 ) Principal payments of finance lease liability (5,573 ) (4,167 ) Payment of issuance cost of common stock - (545,090 ) Proceeds from issuance of common stock, net of underwriter discounts - 3,529,350 Net cash (used in) provided by financing activities (16,310 ) 2,968,934 Effect of exchange rate change on cash and cash equivalents (58,588 ) (86,305 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (3,653,155 ) 107,670 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 13,928,899 16,086,944 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 10,275,744 $ 16,194,614 Cash and cash equivalents 9,858,277 15,181,335 Restricted cash 417,467 1,013,279 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 10,275,744 $ 16,194,614 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 11,687 $ 12,264 Income taxes paid, net $ 195,439 $ 833,901 NON CASH INVESTING AND FINANCING ACTIVITIES: Fair value of warrants of common stock issued to underwriters $ - $ 132,000 Acquisition of operating right-of-use assets through operating lease liability $ 103,609 $ 995,805 Acquisition of equipment through finance lease liability $ - $ 150,625 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/20230515005798/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 Continues to Post Profitable Operating Results, with Strong Balance Sheet and Cash Position-
The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the third fiscal quarter and nine-months ended March 31, 2023. Net revenue for the three months ended March 31, 2023 was $8.3 million, versus $8.9 million for the comparable prior year period. The Company achieved net income of $153,294 for the current third fiscal quarter, equal to breakeven per diluted share, compared with $870,134 for the quarter ended March 31, 2022, or $0.02 per diluted share. For the first nine months of the current fiscal year, net revenue was $15.7 million, versus $17.2 million in the comparable period last year. Net income for the nine months ended March 31, 2023 increased to $832,256, equal to $0.02 per diluted share, compared with $12,476, or breakeven per diluted share, in the same period a year ago. Net income for last year’s nine-month period was impacted by a $2.5 million legal settlement. The Company maintained its strong balance sheet at March 31, 2023, with no debt. Cash and cash equivalents amounted to $9.9 million at the quarter’s end, compared with $12.9 million at June 30, 2022, with the decrease primarily reflecting continued investments in the development of the Company’s new fintech app by its subsidiary Marygold & Co. Total stockholders’ equity at March 31, 2023 rose to $29.9 million, from $29.0 million at June 30, 2022. Total assets were $34.7 million at the close of the 2023 third fiscal quarter, compared with $35.3 million at June 30, 2022. “The Company again achieved profitable operations for the third fiscal quarter, as we continued to invest in the final stages of development of our Marygold mobile fintech app,” said David Neibert, Chief Operations Officer of The Marygold Companies. “Net income and revenue also were impacted by lower assets under management (AUM) at USCF Investments, which is our largest subsidiary. Average AUM at USCF Investments was approximately $3.7 billion in the 2023 third quarter, compared with $4.4 billion last year, with resulting lower management fees. The lower AUM is attributed to the uncertain, and sometimes volatile, nature of the commodities market in general and not an indication of any USCF operating deficiencies.” “Our non-financial operations – Food Products, Security Systems and Beauty Products – were profitable overall for the third quarter, with slightly increased revenues as a group. Inflationary pressures again had an impact on margins at these business units, and initiatives are progressing that are intended to enhance the performance of these businesses through product mix changes and entrance into new sales channels,” Neibert added. Nicholas Gerber, TMC’s Chief Executive Officer, said, “Notwithstanding the uncertain economic environment and turbulence in the commercial banking and financial sector, TMC is performing well and is on target to meet our objectives. We are optimistic about the prospects for each of our operating units and particularly excited by the early results of beta testing for our Marygold mobile fintech app. Marygold has about 11,000 individuals on a wait list who, during May and June, we intend to invite to download and use the app. We expect a formal marketing campaign and open commercial launch of the app in the near future. The entirety of the Marygold app development has been accomplished by the use of internal funds derived from existing profitable consolidated operations. We are extremely proud of that accomplishment and that TMC remains debt-free and without dilutive equity capital raises.” 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 12 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 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. during August 2021, operates through its recently acquired subsidiary, 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, a formal marketing campaign and open commercial launch of the app in the near future, 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 28, 2022, 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) March 31, 2023 June 30, 2022 (1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 9,858,277 $ 12,915,620 Accounts receivable, net 1,089,286 959,350 Accounts receivable - related parties 1,745,159 2,230,874 Inventories 2,386,259 2,200,742 Prepaid income tax and tax receivable 1,034,746 1,166,318 Investments, at fair value 8,703,490 5,065,931 Other current assets 1,138,291 699,547 Total current assets 25,955,508 25,238,382 Restricted cash 417,467 1,013,279 Property, plant and equipment, net 1,288,421 1,391,894 Operating lease right-of-use asset 1,040,356 1,357,686 Goodwill 2,307,202 2,307,202 Intangible assets, net 2,420,029 2,708,896 Deferred tax assets, net - United States 753,078 753,078 Other assets, long - term 552,660 540,160 Total assets $ 34,734,721 $ 35,310,577 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,414,628 $ 2,805,790 Expense waivers – related parties 28,970 70,199 Operating lease liabilities, current portion 578,030 660,957 Purchase consideration payable 604,990 1,237,207 Loans - property and equipment, current portion 33,307 33,496 Total current liabilities 3,659,925 4,807,649 LONG-TERM LIABILITIES Loans - property and equipment, net of current portion 417,694 459,178 Operating lease liabilities, net of current portion 488,424 743,923 Deferred tax liabilities, net-foreign 260,553 260,553 Total long-term liabilities 1,166,671 1,463,654 Total liabilities 4,826,596 6,271,303 STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at March 31, 2023 and at June 30, 2022 49 49 Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at March 31, 2023 and at June 30, 2022 39,384 39,384 Additional paid-in capital 12,359,500 12,313,205 Accumulated other comprehensive loss (244,490 ) (234,790 ) Retained earnings 17,753,682 16,921,426 Total stockholders' equity 29,908,125 29,039,274 Total liabilities and stockholders' equity $ 34,734,721 $ 35,310,577 (1) Derived from audited financial statements THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net revenue Fund management - related party $ 5,022,398 $ 5,868,558 $ 15,708,004 17,226,969 Food products 1,824,789 1,667,345 5,701,714 6,131,791 Security systems 576,248 555,006 1,870,986 1,888,362 Beauty products 745,468 702,779 2,334,009 2,716,702 Financial services 129,868 - 387,811 - Net revenue 8,298,771 8,793,688 26,002,524 27,963,824 Cost of revenue 2,194,762 2,065,422 6,449,457 7,132,249 Gross profit 6,104,009 6,728,266 19,553,067 20,831,575 Operating expense Salaries and compensation 2,354,903 1,969,998 7,530,000 6,677,378 General and administrative expense 1,750,148 1,651,057 5,268,952 4,973,337 Fund operations 1,080,834 1,171,282 3,333,666 3,375,135 Marketing and advertising 612,333 755,403 1,936,504 2,160,180 Depreciation and amortization 139,656 136,909 436,685 424,727 Legal settlement - - - 2,500,000 Total operating expenses 5,937,874 5,684,649 18,505,807 20,110,757 Income from operations 166,135 1,043,617 1,047,260 720,818 Other income (expense): Interest and dividend income 58,690 5,546 173,875 19,030 Interest expense (4,887 ) (9,856 ) (16,315 ) (30,142 ) Other income (expense) (96,390 ) 251,767 (67,644 ) 46,398 Total other income (expense), net (42,587 ) 247,457 89,916 35,286 Income before income taxes 123,548 1,291,074 1,137,176 756,104 Benefit (provision) of income taxes 29,746 (420,940 ) (304,920 ) (743,628 ) Net income $ 153,294 $ 870,134 $ 832,256 $ 12,476 Weighted average shares of common stock Basic 40,370,659 38,831,576 40,370,659 38,561,536 Diluted 40,438,348 38,831,576 40,401,952 38,561,536 Net income per common share Basic $ 0.00 $ 0.02 $ 0.02 $ 0.00 Diluted $ 0.00 $ 0.02 $ 0.02 $ 0.00 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Nine Months Ended March 31, 2023 Nine Months Ended March 31, 2022 Net income $ 153,294 $ 870,134 $ 832,256 $ 12,476 Other comprehensive (loss) income: Foreign currency translation (loss) gain (29,890 ) 79,394 (9,700 ) (21,216 ) Comprehensive income (loss) $ 123,404 $ 949,528 $ 822,556 $ (8,740 ) THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2023 AND MARCH 31, 2022 (UNAUDITED) Period Ending March 31, 2023 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, 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 Gain on currency translation - - - - - 333,949 - 333,949 Stock-based compensation - - - - 9,704 - - 9,704 Net income - - - - - - 181,794 181,794 Balance at December 31, 2022 49,360 $ 49 39,383,459 $ 39,384 $ 12,329,609 $ (214,600 ) $ 17,600,388 $ 29,754,830 Loss on currency translation - - - - - (29,890 ) - (29,890 ) Stock-based compensation - - - - 29,891 - - 29,891 Net income - - - - - - 153,294 153,294 Balance at March 31, 2023 49,360 $ 49 39,383,459 $ 39,384 $ 12,359,500 $ (244,490 ) $ 17,753,682 $ 29,908,125 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 Income (Loss) 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 of $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 THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Month Period Ended March 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 832,256 $ 12,476 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 436,685 424,727 Bad debt expense 1,378 3,175 Impairment of inventory value 2,698 3,478 Stock-based compensation 46,295 - Unrealized loss (gain) on investments 76,604 (116,148 ) Loss on disposal of equipment - 37,189 Operating lease right-of-use asset - non-cash lease cost 432,089 494,375 Decrease (increase) in current assets: Accounts receivable, net (143,455 ) 57,416 Accounts receivable - related party 485,715 (308,514 ) Prepaid income taxes and tax receivable 130,860 43,440 Inventories (187,849 ) (341,966 ) Other current assets (437,582 ) (551,815 ) (Decrease) increase in current liabilities: Accounts payable, accrued expenses and legal settlement (382,048 ) (979,332 ) Operating lease liabilities (433,306 ) (500,857 ) Expense waivers - related party (41,229 ) (51,891 ) Net cash provided by (used in) operating activities 819,111 (1,774,247 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (73,982 ) (5,224 ) Purchase consideration payable (616,180 ) - Proceeds from sale of investments 4,276,765 506,492 Purchase of investments (7,983,971 ) (1,501,980 ) Net cash (used in) investing activities (4,397,368 ) (1,000,712 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment loans (10,737 ) (11,159 ) Principal payments of finance lease liability (5,573 ) (4,167 ) Payment of issuance cost of common stock - (545,090 ) Proceeds from issuance of common stock, net of underwriter discounts - 3,529,350 Net cash (used in) provided by financing activities (16,310 ) 2,968,934 Effect of exchange rate change on cash and cash equivalents (58,588 ) (86,305 ) NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (3,653,155 ) 107,670 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 13,928,899 16,086,944 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 10,275,744 $ 16,194,614 Cash and cash equivalents 9,858,277 15,181,335 Restricted cash 417,467 1,013,279 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 10,275,744 $ 16,194,614 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest paid $ 11,687 $ 12,264 Income taxes paid, net $ 195,439 $ 833,901 NON CASH INVESTING AND FINANCING ACTIVITIES: Fair value of warrants of common stock issued to underwriters $ - $ 132,000 Acquisition of operating right-of-use assets through operating lease liability $ 103,609 $ 995,805 Acquisition of equipment through finance lease liability $ - $ 150,625 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 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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