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 three and six months ended December 31, 2023.

Revenue for the three months ended December 31, 2023 was $8.5 million, compared with $8.8 million, last year. The Company registered a net loss of $1.2 million, equal to a loss of $0.03 per share, for the fiscal 2024 second quarter, principally reflecting continued investment in the Marygold & Co. fintech app. TMC reported net income of $0.2 million, or approximately breakeven per share, for the same quarter a year ago.

For the six-month period ended December 31, 2023, revenue was $16.7 million, versus $17.7 million for the comparable period last year. A net loss of $1.7 million, or $0.04 per share, was recorded for the six months ended December 31, 2023, versus net income of $0.7 million, equal to $0.02 per fully diluted share, for the same period a year ago.

TMC’s balance sheet remained strong at December 31, 2023. Cash and cash equivalents amounted to $6.2 million and investments totaled $12.4 million at the end of the quarter, and the Company has essentially no debt. Total assets at December 31, 2023, were $35 million, and total stockholders’ equity at quarter’s end was $29 million.

“Operating results are within the range of expectations,” said David Neibert, TMC’s Chief Operations Officer. “Our core businesses are all operating efficiently and producing cash, which is being used to build our fintech business under the Marygold & Co. brand. The more we earn at our other divisions, the more we can invest in growing the fintech app. As we are seeing, those investments will continue to negatively impact TMC’s income statement over the near term until our mobile banking app gains traction. While we are not showing profits at the consolidated level, the fundamentals of our Company remain on solid footing, and we are building what we believe to be a highly valued business and doing so without any dilutive effects of equity or debt funding from outside sources.”

Nicholas Gerber, TMC’s Chief Executive Officer, added, “We have started the marketing of our innovative fintech app, a unique mobile app with a debit card feature that enables account holders to invest in Money Pools, send money to anyone in the U.S., monitor spending habits and budgets, and to transact business at retailers throughout the world. In the background, we are readying even more features to be incorporated into the app, as daily onboarding of new accountholders increases. Following our successful soft launch in the second half of 2023, we are excited as ever that Marygold & Co. is gaining attention. I strongly believe that the strategy of using of our capital reserves to develop this app, versus borrowing or diluting our shareholders, will prove to be a sound investment as the true value is realized in the coming years.”

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 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.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 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.

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 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 its 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 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)

 

 

 

December 31, 2023

 

 

June 30, 2023

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,214

 

 

$

8,161

 

Accounts receivable, net (of which $1,624 and $1,674, respectively, due from related parties)

 

 

2,596

 

 

 

3,026

 

Inventories

 

 

2,389

 

 

 

2,254

 

Prepaid income tax and tax receivable

 

 

1,618

 

 

 

992

 

Investments, at fair value

 

 

12,379

 

 

 

11,481

 

Other current assets

 

 

1,057

 

 

 

904

 

Total current assets

 

 

26,253

 

 

 

26,818

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

 

434

 

 

 

425

 

Property and equipment, net

 

 

1,215

 

 

 

1,255

 

Operating lease right-of-use assets

 

 

1,287

 

 

 

821

 

Goodwill

 

 

2,307

 

 

 

2,307

 

Intangible assets, net

 

 

2,112

 

 

 

2,330

 

Deferred tax assets, net

 

 

771

 

 

 

771

 

Other assets

 

 

553

 

 

 

554

 

Total assets

 

$

34,932

 

 

$

35,281

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

3,287

 

 

$

2,771

 

Operating lease liabilities, current portion

 

 

715

 

 

 

457

 

Purchase consideration payable

 

 

637

 

 

 

605

 

Loans - property and equipment, current portion

 

 

352

 

 

 

359

 

Total current liabilities

 

 

4,991

 

 

 

4,192

 

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

Loans - property and equipment, net of current portion

 

 

82

 

 

 

88

 

Operating lease liabilities, net of current portion

 

 

582

 

 

 

381

 

Deferred tax liabilities, net

 

 

242

 

 

 

242

 

Total long-term liabilities

 

 

906

 

 

 

711

 

Total liabilities

 

 

5,897

 

 

 

4,903

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 50,000 shares authorized Series B: 49 shares issued and outstanding at December 31, 2023 and June 30, 2023

 

 

-

 

 

 

-

 

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

 

 

39

 

 

 

39

 

Additional paid-in capital

 

 

12,605

 

 

 

12,397

 

Accumulated other comprehensive loss

 

 

(12

)

 

 

(144

)

Retained earnings

 

 

16,403

 

 

 

18,086

 

Total stockholders’ equity

 

 

29,035

 

 

 

30,378

 

Total liabilities and stockholders’ equity

 

$

34,932

 

 

$

35,281

 

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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund management - related party

 

$

4,997

 

 

$

5,266

 

 

$

10,047

 

 

$

10,686

 

Food products

 

 

1,920

 

 

 

1,932

 

 

 

3,649

 

 

 

3,870

 

Beauty products

 

 

842

 

 

 

785

 

 

 

1,617

 

 

 

1,588

 

Security systems

 

 

570

 

 

 

665

 

 

 

1,123

 

 

 

1,295

 

Financial services

 

 

128

 

 

 

124

 

 

 

256

 

 

 

258

 

Revenue

 

 

8,457

 

 

 

8,772

 

 

 

16,692

 

 

 

17,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,091

 

 

 

2,231

 

 

 

4,128

 

 

 

4,256

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

6,366

 

 

 

6,541

 

 

 

12,564

 

 

 

13,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and compensation

 

 

2,999

 

 

 

2,805

 

 

 

5,589

 

 

 

5,173

 

General and administrative expense

 

 

2,306

 

 

 

1,820

 

 

 

4,556

 

 

 

3,512

 

Fund operations

 

 

1,187

 

 

 

1,112

 

 

 

2,461

 

 

 

2,253

 

Marketing and advertising

 

 

718

 

 

 

556

 

 

 

1,685

 

 

 

1,329

 

Depreciation and amortization

 

 

153

 

 

 

148

 

 

 

307

 

 

 

297

 

Total operating expenses

 

 

7,363

 

 

 

6,441

 

 

 

14,598

 

 

 

12,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(997

)

 

 

100

 

 

 

(2,034

)

 

 

877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

138

 

 

 

63

 

 

 

331

 

 

 

115

 

Interest expense

 

 

(3

)

 

 

(4

)

 

 

(7

)

 

 

(11

)

Other (expense) income, net

 

 

(503

)

 

 

130

 

 

 

(458

)

 

 

32

 

Total other (expense) income, net

 

 

(368

)

 

 

189

 

 

 

(134

)

 

 

136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(1,365

)

 

 

289

 

 

 

(2,168

)

 

 

1,013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit (provision) for income taxes

 

 

182

 

 

 

(107

)

 

 

484

 

 

 

(334

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(1,183

)

 

$

182

 

 

$

(1,684

)

 

$

679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,397

 

 

 

40,371

 

 

 

40,397

 

 

 

40,371

 

Diluted

 

 

40,397

 

 

 

40,371

 

 

 

40,397

 

 

 

40,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

-

 

 

$

(0.04

)

 

$

0.02

 

Diluted

 

$

(0.03

)

 

$

-

 

 

$

(0.04

)

 

$

0.02

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214787407/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