EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

The Marygold Companies Reports Financial Results

for the Three and Nine Months Ended March 31, 2025

 

San Clemente, Calif., May 8, 2025—The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm with a focus on financial services, today reported financial results for the three and nine months ended March 31, 2025.

 

Revenue for the third fiscal quarter ended March 31, 2025 was $7.0 million, compared with $7.9 million a year ago. As anticipated, the Company recorded a net loss of $1.0 million, equal to a loss of $0.02 per share, for the fiscal 2025 third quarter, versus a net loss of $0.5 million, or $0.01 per share, for the same period last year.

 

For the nine months ended March 31, 2025, revenue was $22.9 million, versus $24.6 million for the comparable period last year, a decline of 7%. A net loss of $4.3 million, or $0.11 per share, was recorded for the most recent nine-month period, versus a net loss of $2.2 million, or $0.05 per share, for the same period a year ago.

 

At March 31, 2025, cash and cash equivalents amounted to $4.3 million, and investments totaled $11.3 million. Total assets at March 31, 2025, were $33.5 million, and total stockholders’ equity at the quarter’s end was $24.3 million.

 

“Results for the third fiscal quarter were no surprise, as the operating loss reflected continued expenses at TMC’s Marygold & Co. subsidiary. We had also begun to ramp up our focus toward the launch of the fintech app in the U.K., and that increased expenses,” said David Neibert, TMC’s Chief Operations Officer. “The quarter’s performance was also negatively impacted by reduced average assets under management (AUM) at the Company’s largest operating subsidiary, USCF Investments, due largely to market volatility in the commodities sector. Average AUM for the 2025 third quarter decreased to $2.6 billion from $3.0 billion in the prior year third quarter.

 

“During the quarter, TMC raised $1.8 million in net proceeds from an underwritten public offering. Proceeds are being applied to debt reduction, to make further capital contributions to the Marygold & Co. subsidiaries in the U.S. and U.K., and for general working capital and corporate purpose,” Neibert said.

 

Nicholas Gerber, TMC’s Chief Executive Officer, said, “While operating losses are expected to continue over the near term due to our launch of the fintech app in the U.K. and its related marketing expenses, we are building for the future and believe the vast majority of our development expenses are now behind us. At the same time, we are reducing expenses throughout the Company and seeking to monetize our earlier investments in order to return the consolidated company to profitability. The fintech app debuted in the U.K. subsequent to the close of the third quarter, and shortly thereafter it was gratifying to learn that it was named among the top five ‘Best Free Budgeting Apps’ by Forbes Advisor, a newsletter that provides independent coverage of personal finance topics in the U.K.” Gerber added.

 

Business Units

 

The Company’s USCF Investments subsidiary, https://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.printstock.co.nz, is a printer of specialized food wrappers and is located in Napier, New Zealand.

 

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.

 

 

 

 

Acquired in 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, throughout the U.S. and in many regions throughout the world.

 

Marygold & Co., https://marygoldandco.com/, headquartered in Denver, Colo., is a wholly owned TMC subsidiary established in 2019 to explore opportunities in the financial technology sector. Marygold & Co. (UK) Limited, https://marygoldandco.uk/, also a wholly owned TMC subsidiary, was established in the U.K. in 2021 and operates through two U.K.-based investment advisory business units: Marygold & Co Limited (fka/Tiger Financial and Asset Management), acquired in 2022, http://www.tfam.co.uk/, and Step-by-Step Financial Planners, acquired in 2024, https://www.sbsfp.co.uk/, that manage clients’ financial wealth across a diverse product range.

 

About The Marygold Companies, Inc.

 

The Marygold Companies, Inc. 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., Step-By-Step Financial Planners, Marygold & Co. 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 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.

 

Media and investors, for more Information, contact:

Roger S. Pondel

PondelWilkinson Inc.

310-279-5965

[email protected]

 

Contact the Company:

David Neibert, Chief Operations Officer

949-429-5370

[email protected]

 

 

 

 

THE MARYGOLD COMPANIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)

 

   March 31, 2025   June 30, 2024 
ASSETS          
CURRENT ASSETS          
Cash and cash equivalents  $4,321   $5,461 
Accounts receivable, net (of which $1,302 and $1,455, respectively, due from related parties)   2,319    2,678 
Inventories   2,145    2,191 
Prepaid income tax and tax receivable   1,131    1,338 
Investments, at fair value   11,303    9,551 
Other current assets   703    3,034 
Total current assets   21,922    24,253 
Restricted cash   62    62 
Property and equipment, net   997    1,166 
Operating lease right-of-use assets   1,108    974 
Goodwill   2,481    2,481 
Intangible assets, net   1,131    1,375 
Deferred tax assets, net   1,969    1,969 
Other assets   3,799    619 
Total assets  $33,469   $32,899 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
CURRENT LIABILITIES          
Accounts payable and accrued expenses  $3,667   $4,021 
Lease liabilities, current portion   614    620 
Purchase consideration payable, current portion   242    277 
Notes payable, current portion   3,663    315 
Total current liabilities   8,186    5,233 
Purchase consideration payable, net of current portion   -    237 
Lease liabilities, net of current portion   647    455 
Deferred tax liabilities, net   360    360 
Total long-term liabilities   1,007    1,052 
Total liabilities   9,193    6,285 
STOCKHOLDERS’ EQUITY          
Preferred stock, par value $0.001; 50,000 shares authorized          
Series B: 13 and 49 shares issued and outstanding at March 31, 2025 and June 30, 2024, respectively   -    - 
Common stock, $0.001 par value; 900,000 shares authorized; 42,837 and 40,096 shares issued and outstanding at March 31, 2025 and June 30, 2024, respectively   43    40 
Additional paid-in capital   15,125    12,825 
Accumulated other comprehensive loss   (565)   (269)
Retained earnings   9,673    14,018 
Total stockholders’ equity   24,276    26,614 
Total liabilities and stockholders’ equity  $33,469   $32,899 

 

 

 

 

THE MARYGOLD COMPANIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

  

Three Months Ended

March 31,

  

Nine Months Ended

March 31,

 
   2025   2024   2025   2024 
                 
Revenue                    
Fund management - related party  $4,093   $4,406   $13,369   $14,453 
Food products   1,505    1,836    5,014    5,485 
Beauty products   641    858    2,071    2,475 
Security systems   568    650    1,842    1,773 
Financial services   220    130    644    385 
Revenue   7,027    7,880    22,940    24,571 
                     
Cost of revenue   1,755    2,323    5,958    6,449 
                     
Gross profit   5,272    5,557    16,982    18,122 
                     
Operating expense                    
Salaries and compensation   2,605    2,690    8,699    8,279 
General and administrative expense   2,191    2,166    7,117    6,730 
Fund operations   1,140    1,295    4,118    3,752 
Marketing and advertising   697    745    2,103    2,426 
Depreciation and amortization   143    132    445    439 
Total operating expenses   6,776    7,028    22,482    21,626 
                     
Loss from operations   (1,504)   (1,471)   (5,500)   (3,504)
                     
Other income (expense):                    
Interest and dividend income   78    259    1,293    580 
Interest expense   (325)   (5)   (718)   (12)
Other income (expense), net   432    333    (692)   (116)
Total other income (expense), net   185    587    (117)   452 
                     
Loss before income taxes   (1,319)   (884)   (5,617)   (3,052)
                     
Benefit from income taxes   307    355    1,273    840 
                     
Net loss  $(1,012)  $(529)  $(4,344)  $(2,212)
                     
Weighted average shares of common stock                    
Basic and diluted   40,816    40,401    40,843    40,401 
                     
Net loss per common share                    
Basic and diluted  $(0.02)  $(0.01)  $(0.11)  $(0.05)