MGLD Marygold Companies Inc

- Company Reports Profitable Performance, Maintains 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 fiscal year ended June 30, 2023.

Net revenues for the 2023 fiscal year amounted to $34.9 million, compared with $37.8 million for the 2022 fiscal year. Net income for fiscal 2023 rose slightly to $1.2 million, equal to $0.03 per fully diluted share, from $1.1 million, also equal to $0.03 per fully diluted share, in the prior fiscal year.

For the fourth quarter ended June 30, 2023, revenues were $8.9 million, compared with $9.9 million for the same period last year. Net income for the most recent fourth quarter was $326 thousand, equal to $.01 per share, compared with $1.1 million, or $0.3 per fully diluted share, for the prior year period.

The Company’s balance sheet remained strong at the close of the 2023 fiscal year. Total stockholders’ equity rose to $30.4 million at June 30, 2023, from $29.0 million a year ago. Total assets at fiscal year-end remained constant at $35.3 million. Cash and cash equivalents at the close of fiscal 2023 were $8.2 million, versus $12.9 million at June 30, 2022, with the decline principally attributable to a movement of cash to short term equity investments, which increased to $11.5 million versus $5.1 million in the prior year, as well as expenses associated with completing the development of the Company’s mobile fintech app, which recently was soft-launched by TMC’s subsidiary, Marygold & Co. TMC again ended the year essentially debt-free.

Lower assets under management (AUM) at TMC’s principal subsidiary, USCF Investments, along with new fund startup costs, impacted USCF’s revenues for fiscal 2023, which amounted to $20.9 million, versus $23.8 million for the prior year. USCF had average AUM of $3.7 billion for fiscal 2023, compared with $4.4 billion last year.

Results for The Marygold Companies’ other principal operating subsidiaries – Gourmet Foods, Brigadier Security Systems, Marygold & Co (UK), and Original Sprout – were impacted by a number of factors during fiscal 2023, including the inflationary pressures that affected the cost of raw materials, along with higher shipping and labor expenses and unfavorable currency translation at the Company’s New Zealand operation.

“Gourmet Foods, Brigadier Security Systems, and Marygold & Co (UK) were all profitable for the year, however Original Sprout sustained an operating loss, as it shifts its business model to address post-COVID-19 changes in consumer buying habits. While Original Sprout faced an erosion of profit margins and a fragmented sales channel during the past year due to online shopping trends effecting its long-standing domestic distribution model, management is in the final stages of correcting this situation and expects a return to growth in the new fiscal year.

“Additionally, we are anticipating moderate growth at Brigadier through new, focused management initiatives and partnering with local telecoms and contractors, and we expect Gourmet Foods to be operating more efficiently, as low margin products are eliminated and new channels to market are established,” Neibert added.

Nicholas Gerber, TMC’s Chief Executive Officer, said, “Fiscal 2023 marked the completion of the initial development stage and the nationwide soft launch of our new mobile fintech app, an innovative digital platform that enables users to spend, invest and save with FDIC-insured accounts. The launch culminated nearly four years of development and more than $9 million of investments by TMC, entirely funded from internal cash flow, while our Company remained debt-free. We look forward to implementing marketing plans for the app in the new fiscal year.”

“As CEO, I appreciate the talent and hard work it has taken for us to reach this product development milestone,” Gerber said. “As well, I wish to thank our shareholders for their patience and express my gratitude to the entire Marygold team throughout the world for their dedication to making our Company a success and for working collaboratively and diligently to position TMC for future growth and to create long-term value for of all of our stakeholders.”

Business Units

The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 15 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca.

Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat’s Pantry and Ponsonby Pies. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods.

Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada.

Acquired at the end of 2017, San Clemente, Calif.-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef safe” sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas.

Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The company continues further development of a fintech mobile banking app., having completed the initial development stage and soft launch in the U.S. in June 2023. https://marygoldandco.com/

Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its subsidiary acquired in 2022, Tiger Financial & Asset Management Limited (“Tiger”), a U.K. based investment adviser. Tiger’s core business is managing clients’ financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/

About The Marygold Companies, Inc.

The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in March 2022, was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may” “will,” “could,” “should” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to, a return to growth for the Original Sprout subsidiary, growth at Brigadier and implanting marketing plans for the Company’s new 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 25, 2023, and in the Company’s other filings with the Securities and Exchange Commission, are not exclusive. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

 

 

June 30, 2023

 

June 30, 2022

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,161,167

 

 

$

12,915,620

 

Accounts receivable, net

 

 

1,352,210

 

 

 

959,350

 

Accounts receivable - related parties

 

 

1,673,895

 

 

 

2,230,874

 

Inventories

 

 

2,254,139

 

 

 

2,200,742

 

Prepaid income tax and tax receivable

 

 

991,797

 

 

 

1,166,318

 

Investments, at fair value

 

 

11,480,981

 

 

 

5,065,931

 

Other current assets

 

 

904,153

 

 

 

699,547

 

Total current assets

 

 

26,818,342

 

 

 

25,238,382

 

 

 

 

 

 

 

 

Restricted cash

 

 

425,043

 

 

 

1,013,279

 

Property, plant and equipment, net

 

 

1,255,302

 

 

 

1,391,894

 

Operating lease right-of-use asset

 

 

821,021

 

 

 

1,357,686

 

Goodwill

 

 

2,307,202

 

 

 

2,307,202

 

Intangible assets, net

 

 

2,329,970

 

 

 

2,708,896

 

Deferred tax assets, net - United States

 

 

771,287

 

 

 

753,078

 

Other assets

 

 

552,660

 

 

 

540,160

 

Total assets

 

$

35,280,827

 

 

$

35,310,577

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

2,711,931

 

 

$

2,805,790

 

Expense waivers – related parties

 

 

58,685

 

 

 

70,199

 

Operating lease liabilities, current portion

 

 

457,309

 

 

 

660,957

 

Purchase consideration payable

 

 

604,990

 

 

 

1,237,207

 

Loans - property and equipment, current portion

 

 

358,802

 

 

 

33,496

 

Total current liabilities

 

 

4,191,717

 

 

 

4,807,649

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

Loans - property and equipment, net of current portion

 

 

88,516

 

 

 

459,178

 

Operating lease liabilities, net of current portion

 

 

380,535

 

 

 

743,923

 

Deferred tax liabilities, net - foreign

 

 

242,289

 

 

 

260,553

 

Total long-term liabilities

 

 

711,340

 

 

 

1,463,654

 

Total liabilities

 

 

4,903,057

 

 

 

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 June 30, 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 June 30, 2023 and at June 30, 2022

 

 

39,384

 

 

 

39,384

 

Additional paid-in capital

 

 

12,396,722

 

 

 

12,313,205

 

Accumulated other comprehensive loss

 

 

(144,840

)

 

 

(234,790

)

Retained earnings

 

 

18,086,455

 

 

 

16,921,426

 

Total stockholders' equity

 

 

30,377,770

 

 

 

29,039,274

 

Total liabilities and stockholders' equity

 

$

35,280,827

 

 

$

35,310,577

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

 

 

 

Year Ended June 30, 2023

 

Year Ended June 30, 2022

 

 

 

 

 

 

 

Net revenue

 

 

 

 

 

 

Fund management - related party

 

$

20,862,191

 

 

$

23,835,348

 

Food products

 

 

7,631,837

 

 

 

7,930,888

 

Security systems

 

 

2,832,531

 

 

 

2,533,098

 

Beauty products

 

 

3,033,100

 

 

 

3,529,789

 

Financial services

 

 

517,075

 

 

 

-

 

Net revenue

 

 

34,876,734

 

 

 

37,829,123

 

 

 

 

 

 

 

 

Cost of revenue

 

 

8,750,546

 

 

 

9,194,783

 

 

 

 

 

 

 

 

Gross profit

 

 

26,126,188

 

 

 

28,634,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

Salaries and compensation

 

 

10,042,155

 

 

 

8,812,081

 

General and administrative expense

 

 

7,075,639

 

 

 

6,794,645

 

Fund operations

 

 

4,387,004

 

 

 

4,600,535

 

Marketing and advertising

 

 

2,623,965

 

 

 

2,985,659

 

Depreciation and amortization

 

 

577,086

 

 

 

561,019

 

Legal settlement

 

 

-

 

 

 

2,500,000

 

Total operating expenses

 

 

24,705,849

 

 

 

26,253,939

 

 

 

 

 

 

 

 

Income from operations

 

 

1,420,339

 

 

 

2,380,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

Interest and dividend income

 

 

274,932

 

 

 

35,357

 

Interest expense

 

 

(19,940

)

 

 

(31,512

)

Other (expense), net

 

 

(81,313

)

 

 

(26,125

)

Total other income (expense), net

 

 

173,679

 

 

 

(22,280

)

 

 

 

 

 

 

 

Income before income taxes

 

 

1,594,018

 

 

 

2,358,121

 

 

 

 

 

 

 

 

Provision of income taxes

 

 

(428,989

)

 

 

(1,212,400

)

 

 

 

 

 

 

 

Net income

 

$

1,165,029

 

 

$

1,145,721

 

 

 

 

 

 

 

 

Weighted average shares of common stock

 

 

 

 

 

 

Basic

 

 

40,370,659

 

 

 

39,034,611

 

Diluted

 

 

40,403,999

 

 

 

39,034,611

 

 

 

 

 

 

 

 

Net income per common share

 

 

 

 

 

 

Basic

 

$

0.03

 

 

$

0.03

 

Diluted

 

$

0.03

 

 

$

0.03

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

Year Ended June 30, 2023

 

Year Ended June 30, 2022

 

 

 

 

 

 

 

Net income

 

$

1,165,029

 

$

1,145,721

 

 

 

 

 

 

 

 

Other comprehensive income:

 

 

 

 

 

 

Foreign currency translation gain (loss)

 

 

89,950

 

 

 

(377,371

)

Comprehensive income

 

$

1,254,979

 

 

$

768,350

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED JUNE 30, 2023 AND 2022

 

Period Ending June 30, 2023

 

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

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(377,371

)

 

 

-

 

 

 

(377,371

)

Issuance of common stock in public offering, net of issuance costs $549,090

 

 

-

 

 

 

-

 

 

 

1,897,500

 

 

 

1,898

 

 

 

2,982,362

 

 

 

-

 

 

 

-

 

 

 

2,984,260

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,145,721

 

 

 

1,145,721

 

Balance at June 30, 2022

 

 

49,360

 

 

$

49

 

 

 

39,383,459

 

 

$

39,384

 

 

$

12,313,205

 

 

$

(234,790

)

 

$

16,921,426

 

 

$

29,039,274

 

Gain on currency translation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

89,950

 

 

 

-

 

 

 

89,950

 

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

83,517

 

 

 

-

 

 

 

-

 

 

 

83,517

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,165,029

 

 

 

1,165,029

 

Balance at June 30, 2023

 

 

49,360

 

 

$

49

 

 

 

39,383,459

 

 

$

39,384

 

 

$

12,396,722

 

 

$

(144,840

)

 

$

18,086,455

 

 

$

30,377,770

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

For the Year Ended

 

 

June 30,

 

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

1,165,029

 

 

$

1,145,721

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

577,086

 

 

 

561,019

 

Bad debt expense

 

 

1,427

 

 

 

4,350

 

Impairment of inventory value and provision

 

 

2,698

 

 

 

10,509

 

Deferred taxes

 

 

(36,474

)

 

 

51,689

 

Stock-based compensation

 

 

83,517

 

 

 

-

 

Unrealized loss (gain) on investments

 

 

125,570

 

 

 

(28,474

)

Gain on disposal of equipment

 

 

-

 

 

 

(17,455

)

Operating lease right-of-use asset - non-cash lease cost

 

 

656,600

 

 

 

764,311

 

 

 

 

 

 

 

 

Decrease (increase) in current assets:

 

 

 

 

 

 

Accounts receivable

 

 

(411,175

)

 

 

44,356

 

Accounts receivable - related party

 

 

556,979

 

 

 

(192,820

)

Prepaid income taxes and tax receivable

 

 

172,592

 

 

 

(431,005

)

Inventories

 

 

(81,868

)

 

 

(379,905

)

Other current assets

 

 

(204,417

)

 

 

(287,750

)

(Decrease) increase in operating liabilities:

 

 

 

 

 

 

Accounts payable, accrued expenses and legal settlement

 

 

(74,022

)

 

 

(1,048,279

)

Operating lease liabilities

 

 

(670,639

)

 

 

(777,082

)

Expense waivers - related party

 

 

(11,514

)

 

 

515

 

Net cash provided by (used in) operating activities

 

 

1,851,389

 

 

 

(580,300

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Cash paid for acquisition of business, net

 

 

-

 

 

 

(508,851

)

Proceeds from sale of property, plant and equipment

 

 

-

 

 

 

31,612

 

Purchase of property, plant and equipment

 

 

(94,730

)

 

 

(44,041

)

Payment of purchase consideration payable

 

 

(623,592

)

 

 

-

 

Proceeds from sale of investments

 

 

9,281,197

 

 

 

508,122

 

Purchase of investments

 

 

(15,855,058

)

 

 

(3,712,250

)

Net cash used in investing activities

 

 

(7,292,183

)

 

 

(3,725,408

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Repayment of related party loans

 

 

-

 

 

 

(603,500

)

Repayment of property and equipment loans

 

 

(14,732

)

 

 

(41,884

)

Principal payments of finance lease liability

 

 

(5,573

)

 

 

-

 

Proceeds from issuance of common stock, net of issuance costs

 

 

-

 

 

 

2,984,260

 

Net cash (used in) provided by financing activities

 

 

(20,305

)

 

 

2,338,876

 

 

 

 

 

 

 

 

Effect of exchange rate change on cash and cash equivalents

 

 

118,410

 

 

 

(191,213

)

 

 

 

 

 

 

 

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(5,342,689

)

 

 

(2,158,045

)

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE

 

 

13,928,899

 

 

 

16,086,944

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE

 

$

8,586,210

 

 

$

13,928,899

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

8,161,167

 

 

 

12,915,620

 

Restricted cash

 

 

425,043

 

 

 

1,013,279

 

Total cash, cash equivalents and restricted cash shown in statement of cash flows

 

$

8,586,210

 

 

$

13,928,899

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Interest paid

 

$

15,493

 

 

$

16,401

 

Income taxes paid, net

 

$

231,693

 

 

$

1,704,970

 

NON CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

Purchase consideration payable

 

$

-

 

 

$

1,237,207

 

Acquisition of operating right-of-use assets through operating lease liability

 

$

103,603

 

 

$

1,057,965

 

Fair value of warrants of common stock issued to underwriters

 

$

-

 

 

$

132,000

 

Acquisition of equipment through finance lease liability

 

$

-

 

 

$

150,625

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230925004802/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