The Marygold Companies Reports Financial Results for the Three and Nine Months Ended March 31, 2025

SAN CLEMENTE, Calif.--(BUSINESS WIRE)--May 08, 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.

 
                      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 

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