The Marygold panies(MGLD) - 2025 Q3 - Quarterly Results

Financial Results Overview Third Quarter Fiscal 2025 Performance The company reported decreased revenue and a wider net loss for the third fiscal quarter of 2025 Q3 FY2025 vs Q3 FY2024 Financial Results | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Revenue | $7.0 million | $7.9 million | | Net Loss | $1.0 million | $0.5 million | | Net Loss Per Share | $0.02 | $0.01 | Nine Months Fiscal 2025 Performance For the first nine months of fiscal 2025, revenue declined and the net loss increased significantly Nine Months FY2025 vs FY2024 Financial Results | Metric | Nine Months FY2025 | Nine Months FY2024 | | :--- | :--- | :--- | | Revenue | $22.9 million | $24.6 million | | Revenue Change | -7% | N/A | | Net Loss | $4.3 million | $2.2 million | | Net Loss Per Share | $0.11 | $0.05 | Balance Sheet Position The company's balance sheet shows total assets of $33.5 million and stockholders' equity of $24.3 million Key Balance Sheet Items (as of March 31, 2025) | Account | Amount | | :--- | :--- | | Cash and cash equivalents | $4.3 million | | Investments | $11.3 million | | Total assets | $33.5 million | | Total stockholders' equity | $24.3 million | Management Commentary and Corporate Developments Factors Impacting Performance Operating losses were driven by strategic expenses and a decline in assets under management - The operating loss was expected and primarily driven by continued expenses at the Marygold & Co. subsidiary and costs associated with the U.K. fintech app launch[6] - Average Assets Under Management (AUM) at the USCF Investments subsidiary declined to $2.6 billion from $3.0 billion in the prior year's third quarter, negatively affecting results[6] Strategic Initiatives and Outlook The company is focused on its new fintech app and expense reduction despite expecting near-term losses - The company raised $1.8 million in net proceeds from a public offering to be used for debt reduction, capital contributions to Marygold & Co, and general working capital[7] - The new fintech app debuted in the U.K. after the quarter's close and was named among the top five 'Best Free Budgeting Apps' by Forbes Advisor[8] - Management expects operating losses to continue in the near term due to marketing expenses but is reducing overall company expenses to work towards a return to profitability[8] Business Unit Overview USCF Investments This subsidiary manages and operates 15 exchange-traded products on the NYSE Arca - Manages, operates, or advises 15 exchange-traded products (ETPs) structured as limited partnerships or investment trusts[9] Gourmet Foods and Printstock Products This New Zealand-based segment includes a commercial bakery and a specialized food wrapper printer - Gourmet Foods is a commercial bakery in New Zealand producing iconic meat pies and pastries[10] - Printstock Products, acquired by Gourmet Foods in 2020, is a printer of specialized food wrappers[10] Brigadier Security Systems This Canadian subsidiary provides comprehensive security solutions in Saskatchewan - Provides security solutions to homes, businesses, and government buildings in Saskatchewan, Canada[11] Original Sprout This segment produces and globally distributes a full line of vegan hair and skin care products - Produces and distributes a full line of vegan, non-toxic hair and skin care products worldwide[12] Marygold & Co. The company's financial technology subsidiary operates in the U.S. and U.K - A wholly owned subsidiary focused on the financial technology sector, with operations in the U.S. and U.K[13] - The U.K. operations include two acquired investment advisory firms: Marygold & Co Limited (acquired 2022) and Step-by-Step Financial Planners (acquired 2024)[13] Consolidated Financial Statements Condensed Consolidated Balance Sheets The balance sheet shows a slight increase in total assets and a decrease in stockholders' equity Balance Sheet Summary (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total current assets | $21,922 | $24,253 | | Total assets | $33,469 | $32,899 | | Total current liabilities | $8,186 | $5,233 | | Total liabilities | $9,193 | $6,285 | | Total stockholders' equity | $24,276 | $26,614 | Condensed Consolidated Statements of Operations The company experienced a year-over-year revenue decline and increased net loss for both Q3 and the nine-month period Statement of Operations Summary (in thousands) | Metric | Q3 2025 | Q3 2024 | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $7,027 | $7,880 | $22,940 | $24,571 | | Gross Profit | $5,272 | $5,557 | $16,982 | $18,122 | | Loss from Operations | $(1,504) | $(1,471) | $(5,500) | $(3,504) | | Net Loss | $(1,012) | $(529) | $(4,344) | $(2,212) | Revenue by Segment - Q3 (in thousands) | Segment | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Fund management | $4,093 | $4,406 | | Food products | $1,505 | $1,836 | | Beauty products | $641 | $858 | | Security systems | $568 | $650 | | Financial services | $220 | $130 |