MGLD Marygold Companies Inc

 -Company continued to invest in the Fintech sector through Marygold & Co.-

The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for its 2025 second fiscal quarter ended December 31, 2024.

Revenue for the three months ended December 31, 2024 amounted to $8.0 million, compared with $8.5 million last year. The Company recorded a net loss of $1.7 million, equal to a loss of $0.04 per share, for the second quarter of fiscal year 2025, compared with a net loss of $1.2 million, equal to a loss of $0.03 per share, for the second quarter of fiscal 2024. Revenue for the six months ended December 31, 2024 totaled $15.9 million, with a net loss of $3.3 million, equal to a net loss of $0.08 per share, versus revenue of $16.7 million and a net loss of $1.7 million, or a net loss of $0.04 per share, for the comparable prior year period.

The revenue decline over both comparable prior year periods was primarily due to a reduction in average assets under management (“AUM”) at TMC’s largest subsidiary, USCF Investments, to $3.1 billion from $3.5 billion a year ago. AUM level directly impacts the management fees earned and typically fluctuates with global commodity pricing trends. Revenue also was impacted by a slight increase in the strength of the U.S. dollar, which negatively impacted currency translation values in the Company’s foreign subsidiaries. The performance of TMC’s core operating subsidiaries was within expectations, and the net loss principally reflected the Company’s continued expenses in the development and roll-out of its mobile banking fintech app through its Marygold & Co. subsidiaries in the U.S. and the U.K.

Cash and cash equivalents of $5.7 million at December 31, 2024 increased slightly from $5.5 million at June 30, 2024, the close of TMC’s prior fiscal year. Total stockholders’ equity decreased to $23.4 million at December 31, 2024 from $26.6 million at fiscal year-end, primarily reflecting the net loss incurred during the six months ended December 31, 2024.

“For the quarter just ended, we had budgeted for continued losses, based in large part on cash expenditures incurred by our Marygold fintech subsidiary,” said David Neibert, TMC’s Chief Operations Officer. “To help with cash needs for future development and rollout of our fintech app, we entered into a $4 million note during the first quarter, and in anticipation of an equity raise of $2.3 million in gross proceeds that was completed subsequent to the close of the second quarter, we finalized a prospectus supplement for our Form S-3 shelf registration. These actions produced expenses for the second quarter and contributed to the net loss.

“We are pleased that our operating subsidiaries in New Zealand, Canada and in the U.S. continue to do well overall. Moving into the second half of our fiscal year, we expect to significantly reduce expenses in our Marygold & Co. subsidiary, having successfully completed the proof-of-concept phase,” Neibert added.

Nicholas Gerber, TMC’s Chief Executive Officer, said, “We have spent nearly $20 million into what we refer to as the ‘Marygold Project,’ which includes Marygold & Co. and its counterpart, Marygold & Co. (UK) Limited. We view these costs as investments in TMC’s long-term future, and believe the Company is poised to move forward with the initial roll-out of the mobile app in the U.K. shortly, while we strategize on marketing direction for the app in the U.S.

“As shareholders, we all have gone through a painful period of enduring losses, while we refocused our corporate resources in the fintech sector. I believe we will turn the corner soon and begin to see some tangible results for those efforts,” Gerber said.

Business Units

The Company’s USCF Investments subsidiary, https://www.uscfinvestments.com/, acquired in 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 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.printstock.co.nz, 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, https://brigadierelite.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 in Saskatoon and Elite Security in Regina, Canada.

Acquired in 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, throughout the U.S. and in many regions throughout the world.

Marygold & Co., https://marygoldandco.com/, headquartered in Denver, Colo., is a wholly owned TMC subsidiary established in 2019 to explore opportunities in the financial technology sector. Marygold & Co. (UK) Limited, https://marygoldandco.uk/, also a wholly owned TMC subsidiary, was established in the U.K. in 2021 and operates through two U.K.-based investment advisory business units: Marygold & Co Limited (fka/Tiger Financial and Asset Management), acquired in 2022, http://www.tfam.co.uk/, and Step-by Step Financial Planners, acquired in 2024, https://www.sbsfp.co.uk/, that manage clients’ financial wealth across a diverse product range.

About The Marygold Companies, Inc.

The Marygold Companies was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in fund management, financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Marygold & Co., Marygold & Co. Limited, Step By Step Financial Planners, 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. Such forward-looking statements involve significant risks and uncertainties that could cause the 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 and factors that may cause such differences include, without limitation, significantly reducing expenses in the Marygold & Co. subsidiary, along with the risks disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission and in the Company’s other filings with the Securities and Exchange Commission. The foregoing list of factors is not inclusive. 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)

 

 

December 31, 2024

 

June 30, 2024

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,677

 

 

$

5,461

 

Accounts receivable, net (of which $1,520 and $1,455, respectively, due from related parties)

 

 

2,292

 

 

 

2,678

 

Inventories

 

 

2,189

 

 

 

2,191

 

Prepaid income tax and tax receivable

 

 

2,246

 

 

 

1,338

 

Investments, at fair value

 

 

9,232

 

 

 

9,551

 

Other current assets

 

 

961

 

 

 

3,034

 

Total current assets

 

 

22,597

 

 

 

24,253

 

 

 

 

 

 

 

 

Restricted cash

 

 

61

 

 

 

62

 

Property and equipment, net

 

 

1,021

 

 

 

1,166

 

Operating lease right-of-use assets

 

 

1,262

 

 

 

974

 

Goodwill

 

 

2,481

 

 

 

2,481

 

Intangible assets, net

 

 

1,218

 

 

 

1,375

 

Deferred tax assets, net

 

 

1,969

 

 

 

1,969

 

Other assets

 

 

2,389

 

 

 

619

 

Total assets

 

$

32,998

 

 

$

32,899

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

3,782

 

 

$

4,021

 

Lease liabilities, current portion

 

 

627

 

 

 

620

 

Purchase consideration payable, current portion

 

 

235

 

 

 

277

 

Notes payable, current portion

 

 

3,517

 

 

 

315

 

Total current liabilities

 

 

8,161

 

 

 

5,233

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

376

 

 

 

-

 

Purchase consideration payable, net of current portion

 

 

-

 

 

 

237

 

Lease liabilities, net of current portion

 

 

748

 

 

 

455

 

Deferred tax liabilities, net

 

 

360

 

 

 

360

 

Total long-term liabilities

 

 

1,484

 

 

 

1,052

 

Total liabilities

 

 

9,645

 

 

 

6,285

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

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

 

 

 

 

 

 

Series B: 49 issued and outstanding at December 31, 2024 and June 30, 2024

 

 

-

 

 

 

-

 

Common stock, $0.001 par value; 900,000 shares authorized; 40,188 and 40,096 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively

 

 

40

 

 

 

40

 

Additional paid-in capital

 

 

13,196

 

 

 

12,825

 

Accumulated other comprehensive loss

 

 

(568

)

 

 

(269

)

Retained earnings

 

 

10,685

 

 

 

14,018

 

Total stockholders’ equity

 

 

23,353

 

 

 

26,614

 

Total liabilities and stockholders’ equity

 

$

32,998

 

 

$

32,899

 

THE MARYGOLD COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended December 31,

 

Six Months Ended December 31,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Fund management - related party

 

$

4,685

 

 

$

4,997

 

 

$

9,276

 

 

$

10,047

 

Food products

 

 

1,688

 

 

 

1,920

 

 

 

3,510

 

 

 

3,649

 

Beauty products

 

 

832

 

 

 

842

 

 

 

1,430

 

 

 

1,617

 

Security systems

 

 

585

 

 

 

570

 

 

 

1,274

 

 

 

1,123

 

Financial services

 

 

214

 

 

 

128

 

 

 

423

 

 

 

256

 

Revenue

 

 

8,004

 

 

 

8,457

 

 

 

15,913

 

 

 

16,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,076

 

 

 

2,091

 

 

 

4,203

 

 

 

4,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

5,928

 

 

 

6,366

 

 

 

11,710

 

 

 

12,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and compensation

 

 

2,947

 

 

 

2,999

 

 

 

6,094

 

 

 

5,589

 

General and administrative expense

 

 

2,361

 

 

 

2,306

 

 

 

4,926

 

 

 

4,556

 

Fund operations

 

 

1,566

 

 

 

1,187

 

 

 

2,978

 

 

 

2,461

 

Marketing and advertising

 

 

738

 

 

 

718

 

 

 

1,407

 

 

 

1,685

 

Depreciation and amortization

 

 

142

 

 

 

153

 

 

 

301

 

 

 

307

 

Total operating expenses

 

 

7,754

 

 

 

7,363

 

 

 

15,706

 

 

 

14,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(1,826

)

 

 

(997

)

 

 

(3,996

)

 

 

(2,034

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

1,064

 

 

 

138

 

 

 

1,215

 

 

 

331

 

Interest expense

 

 

(362

)

 

 

(3

)

 

 

(393

)

 

 

(7

)

Other expense, net

 

 

(1,105

)

 

 

(503

)

 

 

(1,124

)

 

 

(458

)

Total other expense, net

 

 

(403

)

 

 

(368

)

 

 

(302

)

 

 

(134

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(2,229

)

 

 

(1,365

)

 

 

(4,298

)

 

 

(2,168

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

482

 

 

 

182

 

 

 

966

 

 

 

484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,747

)

 

$

(1,183

)

 

$

(3,332

)

 

$

(1,684

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

40,863

 

 

 

40,397

 

 

 

40,855

 

 

 

40,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.04

)

 

$

(0.03

)

 

$

(0.08

)

 

$

(0.04

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205192866/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