-Company Remains Profitable, with Strong Balance Sheet-

SAN CLEMENTE, Calif.–(BUSINESS WIRE)–The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD) (formerly Concierge Technologies, Inc.), a diversified global holding firm, today reported financial results for the first fiscal quarter ended September 30, 2022.

Net revenues for the first fiscal quarter of 2023 were $8.9 million, versus $9.7 million for the first three months of fiscal 2022. Net income for the three months ended September 30, 2022 was $497 thousand, equal to 0.01 per share, compared with a net loss of $1.9 million, or a loss of $0.05 per share, for the three months ended September 30, 2021, which included a legal settlement of $2.5 million.

The Company’s balance sheet remained strong at September 30, 2022. Cash and cash equivalents grew to $13.4 million at September 30, 2022, from $12.9 million at June 30, 2022. Total assets amounted to $34.9 million, compared with $35.3 million at June 30, 2022. The decrease in total assets is attributed to currency translation values in the Company’s foreign holdings in New Zealand, Canada and the U.K., where the U.S. dollar strengthened significantly against these currencies, reducing the value of foreign assets on the consolidated balance sheet. Total stockholders’ equity rose to $29.2 million at September 30, 2022, from $29.0 million at June 30, 2022, despite the negative impact of foreign currency translations.

“Our principal operating units were each profitable for the first quarter of fiscal year 2023, although the Company’s consolidated performance was impacted primarily by two factors: lower assets under management (“AUM”) at USCF Investments, our largest subsidiary, and the continuing investment toward development of our mobile fintech app at Marygold & Co.,” said David Neibert, Chief Operations Officer of The Marygold Companies. “While average AUM at USCF Investments dropped by approximately $300 million from June 30 to September 30, 2022, revenues were only down by approximately $238 thousand from those of the quarter ended September 30, 2021.

“Our other operating subsidiaries, Original Sprout, Gourmet Foods and Brigadier Security Systems, had approximately the same revenue performance as in the comparable prior year quarter. However, the gross profit from each of these business units were 2% to 9% higher than the prior year, due in large part to a transition toward a more profitable product mix and sales channels,” Neibert added.

Nicholas Gerber, TMC’s Chief Executive Officer, said, “Our multi-operating unit strategy is working and producing profitable results for our shareholders. With stable, sustainable earnings from our subsidiaries, we are able to continue our investment in new ventures, namely Marygold & Co. We are excited about the progress being made completing the development of a mobile fintech app, which straddles both the consumer and financial services sectors. The mobile banking app, now in final testing phases, has been developed to provide users with a unified platform for spending, saving and investing, while offering detailed transaction reporting coupled with ease of use.”

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 12 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 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. during August 2021, operates through its recently acquired subsidiary, 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, completing the development 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 28, 2022, 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, 2022

 

 

June 30, 2022 (1)

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,370,714

 

 

$

12,915,620

 

Accounts receivable, net

 

 

1,069,275

 

 

 

959,350

 

Accounts receivable – related parties

 

 

1,665,578

 

 

 

2,230,874

 

Inventories

 

 

2,283,538

 

 

 

2,200,742

 

Prepaid income tax and tax receivable

 

 

1,092,544

 

 

 

1,166,318

 

Investments, at fair value

 

 

5,212,326

 

 

 

5,065,931

 

Other current assets

 

 

722,544

 

 

 

699,547

 

Total current assets

 

 

25,416,519

 

 

 

25,238,382

 

 

 

 

 

 

 

 

 

 

Restricted cash

 

 

929,533

 

 

 

1,013,279

 

Property, plant and equipment, net

 

 

1,253,371

 

 

 

1,391,894

 

Operating lease right-of-use asset

 

 

1,129,352

 

 

 

1,357,686

 

Goodwill

 

 

2,307,202

 

 

 

2,307,202

 

Intangible assets, net

 

 

2,608,268

 

 

 

2,708,896

 

Deferred tax assets, net – United States

 

 

753,078

 

 

 

753,078

 

Other assets, long – term

 

 

540,160

 

 

 

540,160

 

Total assets

 

$

34,937,483

 

 

$

35,310,577

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

2,569,846

 

 

$

2,805,790

 

Expense waivers – related parties

 

 

140,647

 

 

 

70,199

 

Operating lease liabilities, current portion

 

 

629,244

 

 

 

660,957

 

Purchase consideration payable

 

 

1,113,860

 

 

 

1,237,207

 

Loans – property and equipment, current portion

 

 

31,132

 

 

 

33,496

 

Total current liabilities

 

 

4,484,729

 

 

 

4,807,649

 

 

 

 

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

Loans – property and equipment, net of current portion

 

 

420,989

 

 

 

459,178

 

Operating lease liabilities, net of current portion

 

 

541,829

 

 

 

743,923

 

Deferred tax liabilities, net-foreign

 

 

260,553

 

 

 

260,553

 

Total long-term liabilities

 

 

1,223,371

 

 

 

1,463,654

 

Total liabilities

 

 

5,708,100

 

 

 

6,271,303

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Series B: 49,360 shares issued and outstanding at September 30, 2022 and at June 30, 2022

 

 

49

 

 

 

49

 

Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at September 30, 2022 and at June 30, 2022

 

 

39,384

 

 

 

39,384

 

Additional paid-in capital

 

 

12,319,905

 

 

 

12,313,205

 

Accumulated other comprehensive income

 

 

(548,549

)

 

 

(234,790

)

Retained earnings

 

 

17,418,594

 

 

 

16,921,426

 

Total stockholders’ equity

 

 

29,229,383

 

 

 

29,039,274

 

Total liabilities and stockholders’ equity

 

$

34,937,483

 

 

$

35,310,577

 

 

(1) Derived from audited financial statements

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

 

Three Months Ended September 30, 2022

 

 

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

Net revenue

 

 

 

 

 

 

 

 

Fund management – related party

 

$

5,419,435

 

 

$

5,657,027

 

Food products

 

 

1,937,426

 

 

 

2,361,793

 

Security systems

 

 

628,892

 

 

 

690,856

 

Beauty products

 

 

804,078

 

 

 

1,021,071

 

Financial services

 

 

133,457

 

 

 

 

Net revenue

 

 

8,923,288

 

 

 

9,730,747

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

2,023,664

 

 

 

2,652,014

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

6,899,624

 

 

 

7,078,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

 

 

 

 

 

 

 

Salaries and compensation

 

 

2,368,368

 

 

 

2,131,298

 

General and administrative expense

 

 

1,686,658

 

 

 

2,113,820

 

Fund operations

 

 

1,140,588

 

 

 

1,101,617

 

Marketing and advertising

 

 

777,710

 

 

 

723,591

 

Depreciation and amortization

 

 

149,208

 

 

 

154,765

 

Legal settlement

 

 

 

 

 

2,500,000

 

Total operating expenses

 

 

6,122,532

 

 

 

8,725,091

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

777,092

 

 

 

(1,646,358

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

Interest and dividend income

 

 

52,569

 

 

 

7,396

 

Interest expense

 

 

(7,794

)

 

 

(10,200

)

Other (expense) income

 

 

(98,369

)

 

 

6,993

 

Total other (expense) income, net

 

 

(53,594

)

 

 

4,189

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

723,498

 

 

 

(1,642,169

)

 

 

 

 

 

 

 

 

 

Provision of income taxes

 

 

(226,330

)

 

 

(238,824

)

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

497,168

 

 

$

(1,880,993

)

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock

 

 

 

 

 

 

 

 

Basic

 

 

40,370,659

 

 

 

38,473,159

 

Diluted

 

 

40,399,873

 

 

 

38,473,159

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.01

 

 

$

(0.05

)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

 

Three Months Ended September 30, 2022

 

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

Net income (loss)

$

497,168

 

$

(1,880,993

)

 

 

 

 

 

 

 

Other comprehensive (loss):

 

 

 

 

 

 

Foreign currency translation loss

 

(313,759

)

 

(86,168

)

Comprehensive income (loss)

$

183,409

 

$

(1,967,161

)

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND SEPTEMBER 30, 2021

(UNAUDITED)

 

Period Ending September 30, 2022

 

Preferred Stock (Series B)

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Shares

 

 

Amount

 

 

Number of Shares

 

 

Par Value

 

 

Additional Paid – in Capital

 

 

Accumulated Other Comprehensive (Loss)

 

 

Retained Earnings

 

 

Total 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

 

Period Ending September 30, 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, 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

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

For the Three Month Period Ended

 

 

 

September 30,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

497,168

 

 

$

(1,880,993

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

149,208

 

 

 

154,765

 

Stock-based compensation

 

 

6,700

 

 

 

 

Unrealized loss on investments

 

 

111,855

 

 

 

1,059

 

Loss on disposal of equipment

 

 

 

 

 

23,407

 

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

 

 

231,070

 

 

 

164,637

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in current assets:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(179,083

)

 

 

(397,282

)

Accounts receivable – related party

 

 

565,296

 

 

 

276,224

 

Prepaid income taxes and tax receivable

 

 

61,872

 

 

 

(111,698

)

Inventories

 

 

(194,695

)

 

 

(154,924

)

Other current assets

 

 

(34,814

)

 

 

129,731

 

Decrease (increase) in current liabilities:

 

 

 

 

 

 

 

 

Accounts payable, accrued expenses and legal settlement

 

 

(149,343

)

 

 

2,786,828

 

Operating lease liabilities

 

 

(233,992

)

 

 

(166,417

)

Expense waivers – related party

 

 

70,448

 

 

 

38,328

 

Purchase consideration payable

 

 

(22,493

)

 

 

 

Net cash provided by operating activities

 

 

879,197

 

 

 

863,665

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(9,418

)

 

 

(3,560

)

Proceeds from sale of investments

 

 

 

 

 

506,462

 

Purchase of investments

 

 

(257,624

)

 

 

(423

)

Net cash (used in) provided by investing activities

 

 

(267,042

)

 

 

502,479

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of property and equipment loans

 

 

(3,476

)

 

 

(3,584

)

Net cash used in financing activities

 

 

(3,476

)

 

 

(3,584

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate change on cash and cash equivalents

 

 

(237,331

)

 

 

(154,376

)

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

 

 

371,348

 

 

 

1,208,184

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE

 

 

13,928,899

 

 

 

16,086,944

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE

 

$

14,300,247

 

 

$

17,295,128

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

13,370,714

 

 

 

17,282,128

 

Restricted cash

 

 

929,533

 

 

 

13,000

 

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

 

$

14,300,247

 

 

$

17,295,128

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest paid

 

$

4,018

 

 

$

4,080

 

Income taxes paid, net

 

$

70,557

 

 

$

286,768

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Contacts

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