--Company Reports Consolidated Profits, as
Investment Continues with Development of Marygold Mobile Fintech
App--
The Marygold Companies, Inc. (NYSE American: MGLD) (the
“Company” or “The Marygold Companies”) (formerly Concierge
Technologies, Inc.), a diversified global holding firm, today
reported financial results for the third fiscal quarter and nine
months ended March 31, 2022.
On March 14, 2022, the Company completed an upsized underwritten
public offering (which included the exercise, in full, of the
over-allotment option) of an aggregate of 1,897,500 shares of
common stock at $2.00 per share, receiving gross proceeds of
approximately $3.7 million. Maxim Group LLC acted as sole
book-running manager for the transaction.
“Our third fiscal quarter marked a milestone in the Company’s
history and the start of a new era in our corporate development,”
said Nicholas Gerber, Chief Executive Officer of The Marygold
Companies. “With the up-listing of our shares to the NYSE American
LLC, and our new ticker symbol to go with the change in our
corporate name, the message is clear that our focus is on achieving
solid returns for our shareholders.
“Our new corporate name signifies the Company’s evolution since
its formation as a global holding firm in 2015, while the NYSE
American listing is providing greater liquidity for our
shareholders. Through hard work and dedication, our entire team has
enabled us to achieve both of these longstanding objectives. To
those shareholders who have been with us since 2002, thank you for
your patience.”
Revenues for the third fiscal quarter totaled $9 million,
compared with $10 million a year ago. Net income for the most
recent three-month period was $0.9 million, equal to $0.02 per
fully diluted per share, compared with $1.6 million, or $0.04 per
fully diluted share, last year. Assets under management at our USCF
Investments subsidiary continued strong at approximately $5 billion
as of March 31, 2022.
“While on a consolidated basis we were profitable for the third
quarter, the Company’s consumer-based subsidiary performances were
impacted by several factors, including global supply chain issues,
coupled with markedly higher shipping costs in New Zealand and the
U.S., which contributed to lower profit margins. We also continued
to invest in our Marygold & Co. subsidiary, which is completing
the development of a mobile fintech app. Costs related to that
development are expensed at the parent level, and are a major
component of the differences in net income for the comparative
quarterly periods,” said David Neibert, The Marygold Companies’
Chief Operations Officer. “As the Marygold mobile app is finalized,
and the effects of the COVID pandemic begin to ease, we are
expecting expenses and cost of goods sold to return to lower
levels.”
For the nine months ended March 31, 2022, consolidated revenues
totaled $28 million, compared with $30 million for the same period
last year. Net income for the nine-month period amounted to $12
thousand, equal to breakeven per share, versus net income of $5
million, or $0.13 per fully diluted share, for the comparable
period last year. The decrease in net income for the current
year-to-date period was primarily due to the $2.5 million
settlement in connection with the Company’s indirect subsidiary,
United States Commodity Funds, LLC, and United States Oil Fund, LP,
which are related business units of USCF Investments. Also
contributing to lower earnings were the fintech app development
costs, which totaled $1.5 million for the nine months ended March
31, 2022.
The Marygold Companies’ balance sheet at March 31, 2022 showed a
continuing trend of strengthening. Total assets rose to $34
million, from $32 million as of June 30, 2021. Cash and cash
equivalents remained at $16 million while stockholders’ equity
increased to $28 million as of March 31, 2022, from $25 million as
of June 30, 2021. The Company remains essentially debt free.
“We are tremendously excited about the development of the
Marygold app, which is nearing completion. We believe the finished
mobile app will be embraced as a unique fintech offering, enabling
consumers to send, receive, spend, save, invest, and earn money
securely through mobile devices. Beta testing is expected to begin
within the coming months, and the app is expected to be launched
before the end of calendar 2022,” Gerber added, “To monitor its
progress or enroll on the user wait list, please visit the website
at www.marygoldandco.com."
Business Units
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.
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 10 exchange traded products, structured as limited
partnerships or investment trusts that issue shares trading on the
NYSE Arca.
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. in 2021 and
located in London, England for the purpose of acquiring interests
in certified financial advisors and asset managers in the U.K. No
acquisitions have yet been completed, however certain agreements
are in place that remain subject to completion of customary closing
conditions prior consummation.
About The Marygold Companies, Inc.
The Marygold Companies, which changed its corporate 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.
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 the launch 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 22, 2021, 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.
(Financial tables follow)
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
March 31, 2022
June 30, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
16,180,701
$
16,072,955
Accounts receivable, net
1,007,455
1,070,541
Accounts receivable - related parties
2,346,570
2,038,054
Inventories
2,288,099
1,951,792
Prepaid income tax and tax receivable
705,827
747,343
Investments, at fair value
2,940,930
1,828,926
Other current assets
948,369
399,524
Total current assets
26,417,951
24,109,135
Restricted cash
13,913
13,989
Property, plant and equipment, net
1,559,152
1,573,445
Operating lease right-of-use asset
1,562,908
1,058,199
Goodwill
1,043,473
1,043,473
Intangible assets, net
2,105,053
2,341,803
Deferred tax assets, net - United
States
827,476
827,476
Other assets, long - term
540,160
540,160
Total assets
$
34,070,086
$
31,507,680
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses
$
2,874,286
$
3,862,874
Expense waivers – related parties
17,793
69,684
Operating lease liabilities, current
portion
680,223
513,071
Notes payable - related parties
603,500
603,500
Loans - property and equipment, current
portion
35,896
15,094
Total current liabilities
4,211,698
5,064,223
LONG TERM LIABILITIES
Loans - property and equipment, net of
current portion
491,420
379,804
Operating lease liabilities, net of
current portion
935,355
607,560
Deferred tax liabilities, net -
foreign
169,429
169,429
Total long-term liabilities
1,596,204
1,156,793
Total liabilities
5,807,902
6,221,016
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value;
50,000,000 authorized
Series B: 49,360 issued and outstanding at
March 31, 2022 and at June 30, 2021
49
49
Common stock, $0.001 par value;
900,000,000 shares authorized; 39,383,459 shares issued and
outstanding at March 31, 2022 and 37,485,959 at June 30, 2021
39,383
37,486
Additional paid-in capital
12,313,206
9,330,843
Accumulated other comprehensive income
121,365
142,581
Retained earnings
15,788,181
15,775,705
Total stockholders' equity
28,262,184
25,286,664
Total liabilities and stockholders'
equity
$
34,070,086
$
31,507,680
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
For the Three-Month Periods
Ended March 31,
For the Nine-Month Periods
Ended March 31,
2022
2021
2022
2021
Net revenue
Fund management - related party
$
5,868,558
$
5,997,085
$
17,226,969
$
19,182,801
Food products
1,667,345
2,015,529
6,131,791
6,212,698
Security systems
555,006
717,664
1,888,362
2,013,819
Beauty products and other
702,779
813,084
2,716,702
2,846,052
Net revenue
8,793,688
9,543,362
27,963,824
30,255,370
Cost of revenue
2,065,422
2,336,541
7,132,249
7,121,339
Gross profit
6,728,266
7,206,821
20,831,575
23,134,031
Operating expense
General and administrative expense
1,651,057
1,512,387
4,973,337
5,071,090
Fund operations
1,171,282
860,027
3,375,135
2,562,525
Marketing and advertising
755,403
689,939
2,160,180
2,227,322
Depreciation and amortization
136,909
178,588
424,727
521,584
Salaries and compensation
1,969,998
1,925,571
6,677,378
6,106,978
Legal settlement
-
-
2,500,000
-
Total operating expenses
5,684,649
5,166,512
20,110,757
16,489,499
Income from operations
1,043,617
2,040,309
720,818
6,644,532
Other income:
Other income
251,767
26,748
46,398
203,275
Interest and dividend income
5,546
6,730
19,030
22,193
Interest expense
(9,856
)
(9,988
)
(30,142
)
(30,215
)
Total other income, net
247,457
23,490
35,286
195,253
Income before income taxes
1,291,074
2,063,799
756,104
6,839,785
Provision of income taxes
(420,940
)
(480,991
)
(743,628
)
(1,685,754
)
Net income
$
870,134
$
1,582,808
$
12,476
$
5,154,031
Weighted average shares of common
stock
Basic and diluted
38,831,576
38,473,159
38,561,536
38,473,159
Net income per common share
Basic and diluted
$
0.02
$
0.04
$
0.00
$
0.13
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three Months Ended March
31,
Nine Months Ended March
31,
2022
2021
2022
2021
Net income
$
870,134
$
1,582,808
$
12,476
$
5,154,031
Other comprehensive income:
Foreign currency translation gain
(loss)
79,394
(17,317
)
(21,216
)
352,829
Comprehensive income (loss)
$
949,528
$
1,565,491
$
(8,740
)
$
5,506,860
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE AND NINE MONTH
PERIODS ENDED MARCH 31, 2022 AND MARCH 31, 2021
(UNAUDITED)
Period Ending March 31, 2022
Preferred Stock (Series
B)
Common Stock
Number of Shares
Amount
Number of Shares
Par Value
Additional Paid - in
Capital
Accumulated Other
Comprehensive (Loss) Income
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
Loss on currency translation
-
-
-
-
-
(14,442
)
-
(14,442
)
Net income
-
-
-
-
-
-
1,023,335
1,023,335
Balance at December 31, 2021
49,360
$
49
37,485,959
$
37,486
$
9,330,843
$
41,971
$
14,918,047
$
24,328,396
Gain on currency translation
-
-
-
-
-
79,394
-
79,394
Issuance of common stock in public
offering, net of issuance costs $545,090
-
-
1,897,500
1,897
2,982,363
-
-
2,984,260
Net income
-
-
-
-
-
-
870,134
870,134
Balance at March 31, 2022
49,360
$
49
39,383,459
$
39,383
$
12,313,206
$
121,365
$
15,788,181
$
28,262,184
Period Ending March 31, 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, 2020
53,032
$
53
37,412,519
$
37,412
$
9,330,913
$
(144,744
)
$
9,926,262
$
19,149,896
Gain on currency translation
-
-
-
-
-
72,714
-
72,714
Net income
-
-
-
-
-
-
2,219,434
2,219,434
Balance at September 30, 2020
53,032
$
53
37,412,519
$
37,412
$
9,330,913
$
(72,030
)
$
12,145,696
$
21,442,044
Gain on currency translation
-
-
-
-
-
297,432
-
297,432
Net income
-
-
-
-
-
-
1,351,788
1,351,788
Balance at December 31, 2020
53,032
$
53
37,412,519
$
37,412
$
9,330,913
$
225,402
$
13,497,484
$
23,091,264
Loss on currency translation
-
-
-
-
-
(17,317
)
-
(17,317
)
Conversion of preferred stock to common
stock
(3,672
)
(4
)
73,440
74
(70
)
-
-
-
Net income
-
-
-
-
-
-
1,582,808
1,582,808
Balance at March 31, 2021
49,360
$
49
37,485,959
$
37,486
$
9,330,843
$
208,085
$
15,080,292
$
24,656,755
THE MARYGOLD COMPANIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine-Month Periods
Ended
March 31,
2022
2021
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income
$
12,476
$
5,154,031
Adjustments to reconcile net income to net
cash provided by (used in) operating activities
Depreciation and amortization
424,727
521,584
Bad debt expense
3,175
14,082
Impairment to inventory value
3,478
67,576
Unrealized gain on investments
(116,148
)
(5,146
)
Loss (gain) on disposal of equipment
37,189
(2,148
)
Operating lease right-of-use asset -
non-cash lease cost
494,375
420,948
Decrease (increase) in current assets:
Accounts receivable
57,416
(91,002
)
Accounts receivable - related party
(308,514
)
559,327
Prepaid income taxes and tax
receivable
43,440
302,313
Inventories
(341,966
)
(254,177
)
Other current assets
(551,815
)
47,336
Increase (decrease) in current
liabilities:
Accounts payable and accrued expenses
(979,332
)
(808,350
)
Operating lease liabilities
(500,857
)
(424,071
)
Expense waivers - related party
(51,891
)
(183,006
)
Net cash (used in) provided by operating
activities
(1,774,247
)
5,319,297
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash paid for acquisition of business
assets
-
(993,435
)
Purchase of real estate and equipment
(5,224
)
(41,074
)
Proceeds from sale of property and
equipment
-
2,148
Sale of investments
506,492
-
Purchase of investments
(1,501,980
)
(492
)
Net cash used in investing activities
(1,000,712
)
(1,032,853
)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock,
net of underwriter discounts
3,529,350
-
Payment of issuance cost of common
stock
(545,090
)
-
Payment of finance lease liabilities
(4,167
)
-
Repayment of property and equipment
loans
(11,159
)
(25,394
)
Net cash provided by (used in) financing
activities
2,968,934
(25,394
)
Effect of exchange rate change on cash and
cash equivalents
(86,305
)
190,171
NET INCREASE IN CASH, CASH EQUIVALENTS
AND RESTRICTED CASH
107,670
4,451,221
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING BALANCE
16,086,944
9,826,042
CASH, CASH EQUIVALENTS AND RESTRICTED
CASH, ENDING BALANCE
$
16,194,614
$
14,277,263
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest paid
$
12,264
$
11,989
Income taxes paid, net of refunds
$
833,901
$
1,247,005
Non-cash financing and investing
activities:
Acquisition of operating right-of-use
assets through operating lease obligations
$
995,805
$
730,741
Reclassification of acquisition
deposit
$
-
$
122,111
Acquisition of equipment through finance
lease liability
$
150,625
$
-
Fair value of warrants of common stock
issued to underwriters
$
132,000
$
-
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220516005871/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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