MGLD Marygold Companies Inc

The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm with a focus on financial services, today reported financial results for the three and nine months ended March 31, 2024.

Revenue for the three months ended March 31, 2024 was $7.9 million, compared with $8.3 million, last year. The Company recorded a net loss of $0.5 million, equal to a loss of $0.01 per share, for the fiscal 2024 third quarter, reflecting continued investment in the Marygold & Co. fintech app. The total amount expensed in the three months ended March 31, 2024 for Marygold & Co. was $1.3 million, bringing the total amount invested in the fintech app by TMC to $13.5 million since Marygold & Co.’s inception. TMC reported net income of $0.2 million, or approximately breakeven per share, for the same quarter a year ago.

For the nine-month period ended March 31, 2024, revenue was $24.6 million, versus $26 million for the comparable period last year. A net loss of $2.2 million, or $0.05 per share, was recorded for the nine months ended March 31, 2024, versus net income of $0.8 million, equal to $0.02 per fully diluted share, for the same period a year ago.

TMC’s balance sheet remained strong at March 31, 2024. Cash and cash equivalents amounted to $4.5 million, and investments totaled $11.6 million at the end of the quarter, and the Company has essentially no debt. Total assets at March 31, 2024, were $33.7 million, and total stockholders’ equity at quarter’s end was $28.4 million.

“Operations overall remained on budget, with increased revenues this quarter over the prior year for our non-financial services subsidiaries,” said David Neibert, TMC’s Chief Operations Officer. “Revenues were up slightly for our foreign subsidiaries as well, despite an unfavorable trend in currency translation rates this quarter as compared with the same period last year. However, our largest subsidiary, USCF Investments, closed out the quarter with an average of $3.0 billion in assets under management, and thus lower revenues, as compared with the quarter ended March 31, 2023, when assets under management averaged $3.7 billion.

“We anticipate a continued steady flow of revenues from our core business units in the coming quarter and using those cash flows to continue the development and marketing of our newest offering, Marygold & Co.’s mobile fintech banking app. Use of capital from segment operations toward the furtherance of Marygold & Co.’s business plan is expected to produce modest consolidated net losses for the balance of this fiscal year,” Neibert added.

Nicholas Gerber, TMC’s Chief Executive Officer, said, “Even though TMC has recorded losses on a consolidated basis due to our continued investment in the fintech space, we are still basically debt-free and building long-term value in our Company. I am also pleased to report we are making good progress toward launching our proprietary mobile banking app in the U.K.

“Subsequent to the close of the quarter, we finalized the acquisition of yet another investment advisory firm in the U.K., Step-by-Step Financial Planners Limited (“SBS”). This new addition joins Tiger Financial and Asset Management as a business unit of our wholly owned subsidiary, Marygold & Co. (UK) Limited, and brings our total assets under management in the U.K. to approximately $75 million. With the client base of these two advisory firms as a starting point, we hope to launch our Marygold mobile banking app with an in-place potential user base in the UK within the coming months,” Gerber said.

Business Units

The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 16 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 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 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand.

Brigadier Security Systems, www.brigadiersecurity.com, acquired in 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 and Elite Security.

Original Sprout, acquired in 2017, with warehouse and office facilities located in San Clemente, California www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, distributed in the U.S. and many regions throughout the world.

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 its mobile banking app, having completed the soft launch in the U.S. in 2023. https://marygoldandco.com/

Marygold & Co. (UK) Limited, formed in the U.K. during 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 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, Marygold & Co., Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may” “will,” “could,” “should” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to, tangible benefits expected to be realized in the 2024 calendar year from current investments, involve significant risks and uncertainties that could cause actual results to differ materially from the expected results and, consequently, should not be relied upon as predictions of future events. These forward-looking statements, including the factors disclosed in the Company’s most recent Annual Report on Form 10-K, 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)

 

 

 

March 31, 2024

 

 

June 30, 2023

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,490

 

 

$

8,161

 

Accounts receivable, net (of which $1,490 and $1,674, respectively, due from related parties)

 

 

2,489

 

 

 

3,026

 

Inventories

 

 

2,113

 

 

 

2,254

 

Prepaid income tax and tax receivable

 

 

1,955

 

 

 

992

 

Investments, at fair value

 

 

11,630

 

 

 

11,481

 

Other current assets

 

 

3,094

 

 

 

904

 

Total current assets

 

 

25,771

 

 

 

26,818

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

 

14

 

 

 

425

 

Property and equipment, net

 

 

1,195

 

 

 

1,255

 

Operating lease right-of-use assets

 

 

1,095

 

 

 

821

 

Goodwill

 

 

2,307

 

 

 

2,307

 

Intangible assets, net

 

 

2,003

 

 

 

2,330

 

Deferred tax assets, net

 

 

771

 

 

 

771

 

Other assets

 

 

553

 

 

 

554

 

Total assets

 

$

33,709

 

 

$

35,281

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

3,566

 

 

$

2,771

 

Operating lease liabilities, current portion

 

 

635

 

 

 

457

 

Purchase consideration payable

 

 

-

 

 

 

605

 

Loans - property and equipment, current portion

 

 

340

 

 

 

359

 

Total current liabilities

 

 

4,541

 

 

 

4,192

 

 

 

 

 

 

 

 

 

 

Loans - property and equipment, net of current portion

 

 

74

 

 

 

88

 

Operating lease liabilities, net of current portion

 

 

471

 

 

 

381

 

Deferred tax liabilities, net

 

 

242

 

 

 

242

 

Total long-term liabilities

 

 

787

 

 

 

711

 

Total liabilities

 

 

5,328

 

 

 

4,903

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001; 50,000 shares authorized

 

 

 

 

 

 

 

 

Series B: 49,360 issued and outstanding at March 31, 2024 and June 30, 2023

 

 

-

 

 

 

-

 

Common stock, $0.001 par value; 900,000 shares authorized; 39,383 shares issued and outstanding at March 31, 2024 and at June 30, 2023

 

 

39

 

 

 

39

 

Additional paid-in capital

 

 

12,714

 

 

 

12,397

 

Accumulated other comprehensive loss

 

 

(246

)

 

 

(145

)

Retained earnings

 

 

15,874

 

 

 

18,087

 

Total stockholders’ equity

 

 

28,381

 

 

 

30,378

 

Total liabilities and stockholders’ equity

 

$

33,709

 

 

$

35,281

 

 

THE MARYGOLD COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

Three Months Ended March 31,

 

 

Nine Months Ended March 31,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund management - related party

 

$

4,406

 

 

$

5,022

 

 

$

14,453

 

 

$

15,708

 

Food products

 

 

1,836

 

 

 

1,825

 

 

 

5,485

 

 

 

5,702

 

Beauty products

 

 

858

 

 

 

746

 

 

 

2,475

 

 

 

2,334

 

Security systems

 

 

650

 

 

 

576

 

 

 

1,773

 

 

 

1,871

 

Financial services

 

 

130

 

 

 

130

 

 

 

385

 

 

 

388

 

Revenue

 

 

7,880

 

 

 

8,299

 

 

 

24,571

 

 

 

26,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,323

 

 

 

2,195

 

 

 

6,449

 

 

 

6,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

5,557

 

 

 

6,104

 

 

 

18,122

 

 

 

19,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and compensation

 

 

2,690

 

 

 

2,355

 

 

 

8,279

 

 

 

7,530

 

General and administrative expense

 

 

2,166

 

 

 

1,750

 

 

 

6,730

 

 

 

5,269

 

Fund operations

 

 

1,295

 

 

 

1,081

 

 

 

3,752

 

 

 

3,334

 

Marketing and advertising

 

 

745

 

 

 

612

 

 

 

2,426

 

 

 

1,936

 

Depreciation and amortization

 

 

132

 

 

 

140

 

 

 

439

 

 

 

437

 

Total operating expenses

 

 

7,028

 

 

 

5,938

 

 

 

21,626

 

 

 

18,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(1,471

)

 

 

166

 

 

 

(3,504

)

 

 

1,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

259

 

 

 

59

 

 

 

580

 

 

 

174

 

Interest expense

 

 

(5

)

 

 

(5

)

 

 

(12

)

 

 

(16

)

Other income (expense), net

 

 

333

 

 

 

(97

)

 

 

(116

)

 

 

(68

)

Total other income (expense), net

 

 

587

 

 

 

(43

)

 

 

452

 

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(884

)

 

 

123

 

 

 

(3,052

)

 

 

1,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit (provision) of income taxes

 

 

355

 

 

30

 

 

 

840

 

 

 

(305

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(529

)

 

$

153

 

 

$

(2,212

)

 

$

832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,401

 

 

 

40,371

 

 

 

40,401

 

 

 

40,371

 

Diluted

 

 

40,401

 

 

 

40,438

 

 

 

40,401

 

 

 

40,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.00

 

 

$

(0.05

)

 

$

0.02

 

Diluted

 

$

(0.01

)

 

$

0.00

 

 

$

(0.05

)

 

$

0.02

 

The accompanying notes on Form 10-Q are an integral part of these condensed consolidated financial statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513059996/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