MGLD Marygold Companies Inc

The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the 2024 first fiscal quarter ended September 30, 2023.

Net revenues for the three months ended September 30, 2023 were $8.2 million, versus $8.9 million last year. The Company registered a net loss of $500 thousand, equal to a loss of $0.1 per share, for the fiscal 2024 first quarter, principally reflecting continued investment in the Marygold & Co. fintech app, compared with net income of $497 thousand, or $0.01 per share, last year.

TMC’s balance sheet remained strong at September 30, 2023. Cash and cash equivalents amounted to $7.0 million at the end of the quarter, and the Company has essentially no debt. Total assets at September 30, 2023, were $35.5 million, and total stockholders’ equity at the quarter’s end was $30.0 million.

“Good progress was made during the quarter on an operational basis, and the Company remains cash flow positive,” said David Neibert, TMC’s Chief Operations Officer. “Net income at the operating subsidiary levels was slightly lower than the comparative year period, due to several factors, including: a strengthening of the US dollar in our foreign markets, reflecting a lower value in currency translation; marketing expenses in connection with the rollout of a new product line by our Original Sprout subsidiary; and, most impactfully, by higher expenses in connection with the final stages of development and initial marketing of our mobile fintech app by our Marygold & Co. subsidiary. Our USCF Investments subsidiary and our core businesses remain strong, with the revenue downturn for the first quarter well within our range of acceptable volatility. We plan to continue investing in the fintech space, which will continue to impact earnings for the short term, as we set the stage for TMC’s renewed focus on the financial services sector in the coming years.”

Nicholas Gerber, TMC’s Chief Executive Officer, said, “While we strive to maintain cash flow neutral operating results as we calculate our investment in Marygold & Co., economic conditions beyond our control impacted our performance for the quarter ended September 30, 2023. Our goal is to successfully put the foundational building blocks together for a sustainable, profitable, long-term future, while remaining debt free and maintaining a high level of cash reserves. From our exciting new mobile fintech app and financial services offerings to the innovative new products and services produced and provided by our other operating units, our objective is to enhance long-term value for 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, 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 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

September 30, 2023

 

 

June 30, 2023

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,987,062

 

 

$

8,161,167

 

Accounts receivable, net

 

 

851,570

 

 

 

1,352,210

 

Accounts receivable - related parties

 

 

1,669,886

 

 

 

1,673,895

 

Inventories

 

 

2,194,827

 

 

 

2,254,139

 

Prepaid income tax and tax receivable

 

 

1,350,165

 

 

 

991,797

 

Investments, at fair value

 

 

13,261,783

 

 

 

11,480,981

 

Other current assets

 

 

973,562

 

 

 

904,153

 

Total current assets

 

 

27,288,855

 

 

 

26,818,342

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

 

413,454

 

 

 

425,043

 

Property, plant and equipment, net

 

 

1,209,739

 

 

 

1,255,302

 

Operating lease right-of-use asset

 

 

701,248

 

 

 

821,021

 

Goodwill

 

 

2,307,202

 

 

 

2,307,202

 

Intangible assets, net

 

 

2,220,755

 

 

 

2,329,970

 

Deferred tax assets, net - United States

 

 

771,287

 

 

 

771,287

 

Other assets

 

 

552,660

 

 

 

552,660

 

Total assets

 

$

35,465,200

 

 

$

35,280,827

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

3,491,543

 

 

$

2,711,931

 

Expense waivers – related parties

 

 

107,213

 

 

 

58,685

 

Operating lease liabilities, current portion

 

 

361,013

 

 

 

457,309

 

Purchase consideration payable

 

 

604,990

 

 

 

604,990

 

Loans - property and equipment, current portion

 

 

346,282

 

 

 

358,802

 

Total current liabilities

 

 

4,911,041

 

 

 

4,191,717

 

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

Loans - property and equipment, net of current portion

 

 

82,543

 

 

 

88,516

 

Operating lease liabilities, net of current portion

 

 

352,347

 

 

 

380,535

 

Deferred tax liabilities, net - foreign

 

 

242,289

 

 

 

242,289

 

Total long-term liabilities

 

 

677,179

 

 

 

711,340

 

Total liabilities

 

 

5,588,220

 

 

 

4,903,057

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 50,000,000 shares authorized Series B: 49,360 shares issued and outstanding at September 30, 2023 and at June 30, 2023

 

 

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, 2023

 

 

39,384

 

 

 

39,384

 

Additional paid-in capital

 

 

12,490,352

 

 

 

12,396,722

 

Accumulated other comprehensive loss

 

 

(239,079

)

 

 

(144,840

)

Retained earnings

 

 

17,586,274

 

 

 

18,086,455

 

Total stockholders’ equity

 

 

29,876,980

 

 

 

30,377,770

 

Total liabilities and stockholders’ equity

 

$

35,465,200

 

 

$

35,280,827

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME

(UNAUDITED)

 

 

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

Net revenue

 

 

 

 

 

 

 

 

Fund management – related party

 

$

5,049,550

 

 

$

5,419,435

 

Food products

 

 

1,730,527

 

 

 

1,937,426

 

Security systems

 

 

553,719

 

 

 

628,892

 

Beauty products

 

 

774,626

 

 

 

804,078

 

Financial services

 

 

127,092

 

 

 

133,457

 

Net revenue

 

 

8,235,514

 

 

 

8,923,288

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,037,188

 

 

 

2,023,664

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

6,198,326

 

 

 

6,899,624

 

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

 

 

Salaries and compensation

 

 

2,589,949

 

 

 

2,368,368

 

General and administrative expense

 

 

2,248,540

 

 

 

1,686,658

 

Fund operations

 

 

1,270,128

 

 

 

1,140,588

 

Marketing and advertising

 

 

972,011

 

 

 

777,710

 

Depreciation and amortization

 

 

153,977

 

 

 

149,208

 

Total operating expenses

 

 

7,234,605

 

 

 

6,122,532

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(1,036,279

)

 

 

777,092

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

193,043

 

 

 

52,569

 

Interest expense

 

 

(3,559

)

 

 

(7,794

)

Other income (expense), net

 

 

43,993

 

 

 

(98,369

)

Total other income (expense), net

 

 

233,477

 

 

 

(53,594

)

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(802,802

)

 

 

723,498

 

 

 

 

 

 

 

 

 

 

Benefit (Provision) of income taxes

 

 

302,621

 

 

 

(226,330

)

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(500,181

)

 

$

497,168

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock

 

 

 

 

 

 

 

 

Basic

 

 

40,397,375

 

 

 

40,370,659

 

Diluted

 

 

40,397,375

 

 

 

40,399,873

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

 

$

0.01

 

Diluted

 

$

(0.01

)

 

$

0.01

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(UNAUDITED)

 

 

 

Three Months Ended September 30, 2023

 

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(500,181

)

 

$

497,168

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

Foreign currency translation (loss)

 

 

(94,239

)

 

 

(313,759

)

Comprehensive (loss) income

 

$

(594,420

)

 

$

183,409

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND SEPTEMBER 30, 2022

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period Ending September 30, 2023

 

Preferred Stock (Series B)

 

 

Common Stock

 

 

Additional

 

 

Accumulated Other

 

 

 

 

 

Total

 

 

 

Number of Shares

 

 

Amount

 

 

Number of Shares

 

 

Par Value

 

 

Paid – in Capital

 

 

Comprehensive (Loss)

 

 

Retained Earnings

 

 

Stockholders’ Equity

 

Balance at July 1, 2023

 

 

49,360

 

 

$

49

 

 

 

39,383,459

 

 

$

39,384

 

 

$

12,396,722

 

 

$

(144,840

)

 

$

18,086,455

 

 

$

30,377,770

 

Loss on currency translation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(94,239

)

 

 

-

 

 

 

(94,239

)

Stock-based compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

93,630

 

 

 

-

 

 

 

-

 

 

 

93,630

 

Net (loss)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(500,181

)

 

 

(500,181

)

Balance at September 30, 2023

 

 

49,360

 

 

$

49

 

 

 

39,383,459

 

 

$

39,384

 

 

$

12,490,352

 

 

$

(239,079

)

 

$

17,586,274

 

 

$

29,876,980

 

Period Ending September 30, 2022

 

Preferred Stock (Series B)

 

 

Common Stock

 

 

Additional

 

 

Accumulated Other

 

 

 

 

 

Total

 

 

 

Number of Shares

 

 

Amount

 

 

Number of Shares

 

 

Par Value

 

 

Paid – in Capital

 

 

Comprehensive (Loss)

 

 

Retained Earnings

 

 

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

 

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(500,181

)

 

 

497,168

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

153,977

 

 

 

149,208

 

Bad debt expense

 

 

213

 

 

 

-

 

Stock-based compensation

 

 

93,630

 

 

 

6,700

 

Net realized and unrealized (gains) losses on investments

 

 

(269,381

)

 

 

111,855

 

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

 

 

128,403

 

 

 

231,070

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in current assets:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

478,096

 

 

 

(179,083

)

Accounts receivable - related party

 

 

4,009

 

 

 

565,296

 

Prepaid income taxes and tax receivable

 

 

(359,021

)

 

 

61,872

 

Inventories

 

 

34,198

 

 

(194,695

)

Other current assets

 

 

(70,130

)

 

 

(34,814

)

(Decrease) increase in operating liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

668,487

 

 

 

(149,343

)

Operating lease liabilities

 

 

(118,480

)

 

 

(233,992

)

Expense waivers - related party

 

 

48,528

 

 

 

70,448

 

Purchase consideration payable

 

 

-

 

 

 

(22,493

)

Net cash provided by operating activities

 

 

292,348

 

 

 

879,197

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(25,189

)

 

 

(9,418

)

Proceeds from sale of investments

 

 

7,829,645

 

 

 

-

 

Purchase of investments

 

 

(9,341,066

)

 

 

(257,624

)

Net cash (used in) investing activities

 

 

(1,536,610

)

 

 

(267,042

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of property and equipment loans

 

 

(3,656

)

 

 

(3,476

)

Net cash (used in) by financing activities

 

 

(3,656

)

 

 

(3,476

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate change on cash and cash equivalents

 

 

62,224

 

 

 

(237,331

)

 

 

 

 

 

 

 

 

 

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

(1,185,694

)

 

 

371,348

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE

 

 

8,586,210

 

 

 

13,928,899

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE

 

$

7,400,516

 

 

 

14,300,247

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

6,987,062

 

 

 

13,370,714

 

Restricted cash

 

 

413,454

 

 

 

929,533

 

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

 

$

7,400,516

 

 

 

14,300,247

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest paid

 

$

4,727

 

 

 

4,018

 

Income taxes paid, net

 

$

86,978

 

 

 

70,557

 

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/20231113014886/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