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MGLD
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The Marygold Companies, Inc. Reports Financial Results for 2025 Second Fiscal Quarter

1. MGLD reported Q2 2025 revenue of $8.0 million, down from $8.5 million. 2. Net loss increased to $1.7 million, reflecting costs of fintech app development. 3. USCF's AUM decreased from $3.5 billion to $3.1 billion, impacting management fees. 4. Company entered $4 million note for app development and an equity raise of $2.3 million. 5. Expectations for reduced expenses in the fintech sector suggest potential for future recovery.

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FAQ

Why Neutral?

The increase in losses and revenue decline make MGLD uncertain. However, future projections could stabilize the company.

How important is it?

Despite losses, the focus on fintech could eventually enhance MGLD's growth.

Why Long Term?

Investment in the fintech app is expected to yield results in the long run.

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USCFMGLD
SAN CLEMENTE, Calif.--(BUSINESS WIRE)--The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for its 2025 second fiscal quarter ended December 31, 2024. Revenue for the three months ended December 31, 2024 amounted to $8.0 million, compared with $8.5 million last year. The Company recorded a net loss of $1.7 million, equal to a loss of $0.04 per share, for the second quarter of fiscal year 2025, compared with a net loss of $1.2 million, equal to a loss of $0.03 per share, for the second quarter of fiscal 2024. Revenue for the six months ended December 31, 2024 totaled $15.9 million, with a net loss of $3.3 million, equal to a net loss of $0.08 per share, versus revenue of $16.7 million and a net loss of $1.7 million, or a net loss of $0.04 per share, for the comparable prior year period. The revenue decline over both comparable prior year periods was primarily due to a reduction in average assets under management (“AUM”) at TMC’s largest subsidiary, USCF Investments, to $3.1 billion from $3.5 billion a year ago. AUM level directly impacts the management fees earned and typically fluctuates with global commodity pricing trends. Revenue also was impacted by a slight increase in the strength of the U.S. dollar, which negatively impacted currency translation values in the Company’s foreign subsidiaries. The performance of TMC’s core operating subsidiaries was within expectations, and the net loss principally reflected the Company’s continued expenses in the development and roll-out of its mobile banking fintech app through its Marygold & Co. subsidiaries in the U.S. and the U.K. Cash and cash equivalents of $5.7 million at December 31, 2024 increased slightly from $5.5 million at June 30, 2024, the close of TMC’s prior fiscal year. Total stockholders’ equity decreased to $23.4 million at December 31, 2024 from $26.6 million at fiscal year-end, primarily reflecting the net loss incurred during the six months ended December 31, 2024. “For the quarter just ended, we had budgeted for continued losses, based in large part on cash expenditures incurred by our Marygold fintech subsidiary,” said David Neibert, TMC’s Chief Operations Officer. “To help with cash needs for future development and rollout of our fintech app, we entered into a $4 million note during the first quarter, and in anticipation of an equity raise of $2.3 million in gross proceeds that was completed subsequent to the close of the second quarter, we finalized a prospectus supplement for our Form S-3 shelf registration. These actions produced expenses for the second quarter and contributed to the net loss. “We are pleased that our operating subsidiaries in New Zealand, Canada and in the U.S. continue to do well overall. Moving into the second half of our fiscal year, we expect to significantly reduce expenses in our Marygold & Co. subsidiary, having successfully completed the proof-of-concept phase,” Neibert added. Nicholas Gerber, TMC’s Chief Executive Officer, said, “We have spent nearly $20 million into what we refer to as the ‘Marygold Project,’ which includes Marygold & Co. and its counterpart, Marygold & Co. (UK) Limited. We view these costs as investments in TMC’s long-term future, and believe the Company is poised to move forward with the initial roll-out of the mobile app in the U.K. shortly, while we strategize on marketing direction for the app in the U.S. “As shareholders, we all have gone through a painful period of enduring losses, while we refocused our corporate resources in the fintech sector. I believe we will turn the corner soon and begin to see some tangible results for those efforts,” Gerber said. 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. Its operations are consolidated with those of Gourmet Foods. Brigadier Security Systems, https://brigadierelite.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 was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in fund management, financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Marygold & Co., Marygold & Co. Limited, Step By Step Financial Planners, 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. Such forward-looking statements involve significant risks and uncertainties that could cause the 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 and factors that may cause such differences include, without limitation, significantly reducing expenses in the Marygold & Co. subsidiary, along with the risks disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission and in the Company’s other filings with the Securities and Exchange Commission. The foregoing list of factors is not inclusive. 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) December 31, 2024 June 30, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,677 $ 5,461 Accounts receivable, net (of which $1,520 and $1,455, respectively, due from related parties) 2,292 2,678 Inventories 2,189 2,191 Prepaid income tax and tax receivable 2,246 1,338 Investments, at fair value 9,232 9,551 Other current assets 961 3,034 Total current assets 22,597 24,253 Restricted cash 61 62 Property and equipment, net 1,021 1,166 Operating lease right-of-use assets 1,262 974 Goodwill 2,481 2,481 Intangible assets, net 1,218 1,375 Deferred tax assets, net 1,969 1,969 Other assets 2,389 619 Total assets $ 32,998 $ 32,899 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,782 $ 4,021 Lease liabilities, current portion 627 620 Purchase consideration payable, current portion 235 277 Notes payable, current portion 3,517 315 Total current liabilities 8,161 5,233 Notes payable, net of current portion 376 - Purchase consideration payable, net of current portion - 237 Lease liabilities, net of current portion 748 455 Deferred tax liabilities, net 360 360 Total long-term liabilities 1,484 1,052 Total liabilities 9,645 6,285 STOCKHOLDERS’ EQUITY Preferred stock, par value $0.001; 50,000 shares authorized Series B: 49 issued and outstanding at December 31, 2024 and June 30, 2024 - - Common stock, $0.001 par value; 900,000 shares authorized; 40,188 and 40,096 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively 40 40 Additional paid-in capital 13,196 12,825 Accumulated other comprehensive loss (568 ) (269 ) Retained earnings 10,685 14,018 Total stockholders’ equity 23,353 26,614 Total liabilities and stockholders’ equity $ 32,998 $ 32,899 THE MARYGOLD COMPANIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Revenue Fund management - related party $ 4,685 $ 4,997 $ 9,276 $ 10,047 Food products 1,688 1,920 3,510 3,649 Beauty products 832 842 1,430 1,617 Security systems 585 570 1,274 1,123 Financial services 214 128 423 256 Revenue 8,004 8,457 15,913 16,692 Cost of revenue 2,076 2,091 4,203 4,128 Gross profit 5,928 6,366 11,710 12,564 Operating expense Salaries and compensation 2,947 2,999 6,094 5,589 General and administrative expense 2,361 2,306 4,926 4,556 Fund operations 1,566 1,187 2,978 2,461 Marketing and advertising 738 718 1,407 1,685 Depreciation and amortization 142 153 301 307 Total operating expenses 7,754 7,363 15,706 14,598 Loss from operations (1,826 ) (997 ) (3,996 ) (2,034 ) Other income (expense): Interest and dividend income 1,064 138 1,215 331 Interest expense (362 ) (3 ) (393 ) (7 ) Other expense, net (1,105 ) (503 ) (1,124 ) (458 ) Total other expense, net (403 ) (368 ) (302 ) (134 ) Loss before income taxes (2,229 ) (1,365 ) (4,298 ) (2,168 ) Benefit from income taxes 482 182 966 484 Net loss $ (1,747 ) $ (1,183 ) $ (3,332 ) $ (1,684 ) Weighted average shares of common stock Basic and diluted 40,863 40,397 40,855 40,397 Net loss per common share Basic and diluted $ (0.04 ) $ (0.03 ) $ (0.08 ) $ (0.04 )

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