-Company Remains Profitable, with Strong
Balance Sheet-
The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE
American: MGLD) (formerly Concierge Technologies, Inc.), a
diversified global holding firm, today reported financial results
for the first fiscal quarter ended September 30, 2022.
Net revenues for the first fiscal quarter of 2023 were $8.9
million, versus $9.7 million for the first three months of fiscal
2022. Net income for the three months ended September 30, 2022 was
$497 thousand, equal to 0.01 per share, compared with a net loss of
$1.9 million, or a loss of $0.05 per share, for the three months
ended September 30, 2021, which included a legal settlement of $2.5
million.
The Company’s balance sheet remained strong at September 30,
2022. Cash and cash equivalents grew to $13.4 million at September
30, 2022, from $12.9 million at June 30, 2022. Total assets
amounted to $34.9 million, compared with $35.3 million at June 30,
2022. The decrease in total assets is attributed to currency
translation values in the Company’s foreign holdings in New
Zealand, Canada and the U.K., where the U.S. dollar strengthened
significantly against these currencies, reducing the value of
foreign assets on the consolidated balance sheet. Total
stockholders’ equity rose to $29.2 million at September 30, 2022,
from $29.0 million at June 30, 2022, despite the negative impact of
foreign currency translations.
“Our principal operating units were each profitable for the
first quarter of fiscal year 2023, although the Company’s
consolidated performance was impacted primarily by two factors:
lower assets under management (“AUM”) at USCF Investments, our
largest subsidiary, and the continuing investment toward
development of our mobile fintech app at Marygold & Co.,” said
David Neibert, Chief Operations Officer of The Marygold Companies.
“While average AUM at USCF Investments dropped by approximately
$300 million from June 30 to September 30, 2022, revenues were only
down by approximately $238 thousand from those of the quarter ended
September 30, 2021.
“Our other operating subsidiaries, Original Sprout, Gourmet
Foods and Brigadier Security Systems, had approximately the same
revenue performance as in the comparable prior year quarter.
However, the gross profit from each of these business units were 2%
to 9% higher than the prior year, due in large part to a transition
toward a more profitable product mix and sales channels,” Neibert
added.
Nicholas Gerber, TMC’s Chief Executive Officer, said, “Our
multi-operating unit strategy is working and producing profitable
results for our shareholders. With stable, sustainable earnings
from our subsidiaries, we are able to continue our investment in
new ventures, namely Marygold & Co. We are excited about the
progress being made completing the development of a mobile fintech
app, which straddles both the consumer and financial services
sectors. The mobile banking app, now in final testing phases, has
been developed to provide users with a unified platform for
spending, saving and investing, while offering detailed transaction
reporting coupled with ease of use.”
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, completing the development 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 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)
September 30, 2022
June 30, 2022 (1)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
13,370,714
$
12,915,620
Accounts receivable, net
1,069,275
959,350
Accounts receivable - related parties
1,665,578
2,230,874
Inventories
2,283,538
2,200,742
Prepaid income tax and tax receivable
1,092,544
1,166,318
Investments, at fair value
5,212,326
5,065,931
Other current assets
722,544
699,547
Total current assets
25,416,519
25,238,382
Restricted cash
929,533
1,013,279
Property, plant and equipment, net
1,253,371
1,391,894
Operating lease right-of-use asset
1,129,352
1,357,686
Goodwill
2,307,202
2,307,202
Intangible assets, net
2,608,268
2,708,896
Deferred tax assets, net - United
States
753,078
753,078
Other assets, long - term
540,160
540,160
Total assets
$
34,937,483
$
35,310,577
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses
$
2,569,846
$
2,805,790
Expense waivers – related parties
140,647
70,199
Operating lease liabilities, current
portion
629,244
660,957
Purchase consideration payable
1,113,860
1,237,207
Loans - property and equipment, current
portion
31,132
33,496
Total current liabilities
4,484,729
4,807,649
LONG-TERM LIABILITIES
Loans - property and equipment, net of
current portion
420,989
459,178
Operating lease liabilities, net of
current portion
541,829
743,923
Deferred tax liabilities, net-foreign
260,553
260,553
Total long-term liabilities
1,223,371
1,463,654
Total liabilities
5,708,100
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 September 30, 2022 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 September 30, 2022 and at June 30, 2022
39,384
39,384
Additional paid-in capital
12,319,905
12,313,205
Accumulated other comprehensive income
(548,549
)
(234,790
)
Retained earnings
17,418,594
16,921,426
Total stockholders' equity
29,229,383
29,039,274
Total liabilities and stockholders'
equity
$
34,937,483
$
35,310,577
(1) Derived from audited financial
statements
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended September
30, 2022
Three Months Ended September
30, 2021
Net revenue
Fund management - related party
$
5,419,435
$
5,657,027
Food products
1,937,426
2,361,793
Security systems
628,892
690,856
Beauty products
804,078
1,021,071
Financial services
133,457
-
Net revenue
8,923,288
9,730,747
Cost of revenue
2,023,664
2,652,014
Gross profit
6,899,624
7,078,733
Operating expense
Salaries and compensation
2,368,368
2,131,298
General and administrative expense
1,686,658
2,113,820
Fund operations
1,140,588
1,101,617
Marketing and advertising
777,710
723,591
Depreciation and amortization
149,208
154,765
Legal settlement
-
2,500,000
Total operating expenses
6,122,532
8,725,091
Income (loss) from operations
777,092
(1,646,358
)
Other (expense) income:
Interest and dividend income
52,569
7,396
Interest expense
(7,794
)
(10,200
)
Other (expense) income
(98,369
)
6,993
Total other (expense) income, net
(53,594
)
4,189
Income (loss) before income taxes
723,498
(1,642,169
)
Provision of income taxes
(226,330
)
(238,824
)
Net income (loss)
$
497,168
$
(1,880,993
)
Weighted average shares of common
stock
Basic
40,370,659
38,473,159
Diluted
40,399,873
38,473,159
Net income (loss) per common share
Basic and diluted
$
0.01
$
(0.05
)
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three Months Ended September
30, 2022
Three Months Ended September
30, 2021
Net income (loss)
$
497,168
$
(1,880,993
)
Other comprehensive (loss):
Foreign currency translation loss
(313,759
)
(86,168
)
Comprehensive income (loss)
$
183,409
$
(1,967,161
)
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTH PERIODS
ENDED SEPTEMBER 30, 2022 AND SEPTEMBER 30, 2021
(UNAUDITED)
Period Ending September 30,
2022
Preferred Stock (Series
B)
Common Stock
Number of Shares
Amount
Number of Shares
Par Value
Additional Paid - in
Capital
Accumulated Other
Comprehensive (Loss)
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
Period Ending September 30,
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, 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
The accompanying notes are an integral part of
these unaudited condensed consolidated financial statements.
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
For the Three Month Period
Ended
September 30,
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss)
$
497,168
$
(1,880,993
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
149,208
154,765
Stock-based compensation
6,700
-
Unrealized loss on investments
111,855
1,059
Loss on disposal of equipment
-
23,407
Operating lease right-of-use asset -
non-cash lease cost
231,070
164,637
Decrease (increase) in current assets:
Accounts receivable, net
(179,083
)
(397,282
)
Accounts receivable - related party
565,296
276,224
Prepaid income taxes and tax
receivable
61,872
(111,698
)
Inventories
(194,695
)
(154,924
)
Other current assets
(34,814
)
129,731
Decrease (increase) in current
liabilities:
Accounts payable, accrued expenses and
legal settlement
(149,343
)
2,786,828
Operating lease liabilities
(233,992
)
(166,417
)
Expense waivers - related party
70,448
38,328
Purchase consideration payable
(22,493
)
-
Net cash provided by operating
activities
879,197
863,665
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property, plant and
equipment
(9,418
)
(3,560
)
Proceeds from sale of investments
-
506,462
Purchase of investments
(257,624
)
(423
)
Net cash (used in) provided by investing
activities
(267,042
)
502,479
CASH FLOWS FROM FINANCING
ACTIVITIES:
Repayment of property and equipment
loans
(3,476
)
(3,584
)
Net cash used in financing activities
(3,476
)
(3,584
)
Effect of exchange rate change on cash and
cash equivalents
(237,331
)
(154,376
)
NET INCREASE IN CASH, CASH EQUIVALENTS
AND RESTRICTED CASH
371,348
1,208,184
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING BALANCE
13,928,899
16,086,944
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, ENDING BALANCE
$
14,300,247
$
17,295,128
Cash and cash equivalents
13,370,714
17,282,128
Restricted cash
929,533
13,000
Total cash, cash equivalents and
restricted cash shown in statement of cash flows
$
14,300,247
$
17,295,128
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest paid
$
4,018
$
4,080
Income taxes paid, net
$
70,557
$
286,768
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/20221114006032/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
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