-Company Remains Profitable, with Strong Balance Sheet-
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 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(UNAUDITED) |
||||||||
|
|
September 30, 2022 |
|
|
June 30, 2022 (1) |
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||
|
|
|
|
|
|
|
|
|
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 |
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|||||||
|
|
|
|
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|
|
|
|
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 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(UNAUDITED) |
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|
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221114006032/en/
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
