The Marygold panies(US:MGLD)2025-11-07 21:06Revenue Performance - Revenue for the quarter ended September 30, 2025, decreased by $0.9 million or 12% to $6.963 million compared to $7.910 million in the same quarter of 2024[102]. - Gross profit decreased by $0.4 million or 7% to $5.364 million, primarily due to reduced revenue from lower average AUM and the elimination of gross profit from the sold security systems segment[105]. - The beauty products segment saw a revenue increase of $0.1 million or 12%, driven by improved performance across distribution channels[117]. Assets and Management - Average Assets Under Management (AUM) decreased to $2.9 billion for the quarter ended September 30, 2025, down from $3.1 billion in the prior year, contributing to a revenue decline in the U.S. fund management segment[104]. - As of September 30, 2025, the company held investments in three exchange-traded funds valued at $0.3 million, $0.9 million, and $1.3 million respectively[132]. Operating Expenses and Loss - Operating expenses decreased by $1.3 million or 17% to $6.628 million, driven by cost reductions in the Marygold & Co subsidiary and the sale of Brigadier[106]. - Net loss for the quarter decreased by $1.2 million or 78% to $0.356 million, reflecting the net effects of the changes in revenue and expenses[109]. - Marygold US paused the development of its fintech app, resulting in no revenue for the quarter ended September 30, 2025, compared to an operating loss of $1.4 million in the same quarter of 2024[121]. Cash and Financing - As of September 30, 2025, the company had $4.9 million in cash and cash equivalents, a decrease of $0.1 million or 3% from $5.0 million as of June 30, 2025[126]. - The company has invested a total of $19.3 million in the fintech app since its inception in 2019, with potential additional financing needed for future operations[126]. - The company closed the sale of 2,050,000 shares of common stock at a price of $1.10 per share, raising approximately $1.8 million in net proceeds after deductions[127][128]. - The company entered into an Equity Distribution Agreement allowing for the sale of shares with an aggregate offering price of up to $4.65 million, with a minimum price of $1.50 per share until May 25, 2025[129]. - The company believes its cash and cash equivalents, along with cash generated from operations, will be sufficient to fund cash requirements over the next 12 months, but may need additional financing for investments in its mobile Fintech app[130]. Liabilities and Dividends - Total lease liabilities amounted to $0.9 million as of September 30, 2025, which will decrease over time through periodic payments[131]. - The company has never declared or paid cash dividends and intends to retain future earnings to finance operations and expansion[133].