The Marygold Companies Reports Fiscal 2023/Q4 Financial Results
- Net income rose slightly to $1.2 million
- Total stockholders' equity increased to $30.4 million
- The company launched a new mobile fintech app
- Net revenues decreased to $34.9 million
- USCF Investments had lower revenues due to lower assets under management
- Original Sprout sustained an operating loss
- Company Reports Profitable Performance, Maintains Strong Balance Sheet -
Net revenues for the 2023 fiscal year amounted to
For the fourth quarter ended June 30, 2023, revenues were
The Company’s balance sheet remained strong at the close of the 2023 fiscal year. Total stockholders’ equity rose to
Lower assets under management (AUM) at TMC’s principal subsidiary, USCF Investments, along with new fund startup costs, impacted USCF’s revenues for fiscal 2023, which amounted to
Results for The Marygold Companies’ other principal operating subsidiaries – Gourmet Foods, Brigadier Security Systems, Marygold & Co (
“Gourmet Foods, Brigadier Security Systems, and Marygold & Co (
“Additionally, we are anticipating moderate growth at Brigadier through new, focused management initiatives and partnering with local telecoms and contractors, and we expect Gourmet Foods to be operating more efficiently, as low margin products are eliminated and new channels to market are established,” Neibert added.
Nicholas
“As CEO, I appreciate the talent and hard work it has taken for us to reach this product development milestone,”
Business Units
The Company’s USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in
Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout
Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in
Acquired at the end of 2017,
Marygold & Co., formed in the
Marygold & Co. (
About The Marygold Companies, Inc.
The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in March 2022, 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, Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of
THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
June 30, 2023 |
|
June 30, 2022 |
||||
|
|
|
|
|
|
|
||
ASSETS |
||||||||
|
|
|
|
|
|
|
||
CURRENT ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
8,161,167 |
|
|
$ |
12,915,620 |
|
Accounts receivable, net |
|
|
1,352,210 |
|
|
|
959,350 |
|
Accounts receivable - related parties |
|
|
1,673,895 |
|
|
|
2,230,874 |
|
Inventories |
|
|
2,254,139 |
|
|
|
2,200,742 |
|
Prepaid income tax and tax receivable |
|
|
991,797 |
|
|
|
1,166,318 |
|
Investments, at fair value |
|
|
11,480,981 |
|
|
|
5,065,931 |
|
Other current assets |
|
|
904,153 |
|
|
|
699,547 |
|
Total current assets |
|
|
26,818,342 |
|
|
|
25,238,382 |
|
|
|
|
|
|
|
|
||
Restricted cash |
|
|
425,043 |
|
|
|
1,013,279 |
|
Property, plant and equipment, net |
|
|
1,255,302 |
|
|
|
1,391,894 |
|
Operating lease right-of-use asset |
|
|
821,021 |
|
|
|
1,357,686 |
|
Goodwill |
|
|
2,307,202 |
|
|
|
2,307,202 |
|
Intangible assets, net |
|
|
2,329,970 |
|
|
|
2,708,896 |
|
Deferred tax assets, net - |
|
|
771,287 |
|
|
|
753,078 |
|
Other assets |
|
|
552,660 |
|
|
|
540,160 |
|
Total assets |
|
$ |
35,280,827 |
|
|
$ |
35,310,577 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
|
|
|
|
|
|
|
||
CURRENT LIABILITIES |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
2,711,931 |
|
|
$ |
2,805,790 |
|
Expense waivers – related parties |
|
|
58,685 |
|
|
|
70,199 |
|
Operating lease liabilities, current portion |
|
|
457,309 |
|
|
|
660,957 |
|
Purchase consideration payable |
|
|
604,990 |
|
|
|
1,237,207 |
|
Loans - property and equipment, current portion |
|
|
358,802 |
|
|
|
33,496 |
|
Total current liabilities |
|
|
4,191,717 |
|
|
|
4,807,649 |
|
|
|
|
|
|
|
|
||
LONG-TERM LIABILITIES |
|
|
|
|
|
|
||
Loans - property and equipment, net of current portion |
|
|
88,516 |
|
|
|
459,178 |
|
Operating lease liabilities, net of current portion |
|
|
380,535 |
|
|
|
743,923 |
|
Deferred tax liabilities, net - foreign |
|
|
242,289 |
|
|
|
260,553 |
|
Total long-term liabilities |
|
|
711,340 |
|
|
|
1,463,654 |
|
Total liabilities |
|
|
4,903,057 |
|
|
|
6,271,303 |
|
|
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Preferred stock, |
|
|
|
|
|
|
||
Series B: 49,360 shares issued and outstanding at June 30, 2023 and at June 30, 2022 |
|
|
49 |
|
|
|
49 |
|
Common stock, |
|
|
39,384 |
|
|
|
39,384 |
|
Additional paid-in capital |
|
|
12,396,722 |
|
|
|
12,313,205 |
|
Accumulated other comprehensive loss |
|
|
(144,840 |
) |
|
|
(234,790 |
) |
Retained earnings |
|
|
18,086,455 |
|
|
|
16,921,426 |
|
Total stockholders' equity |
|
|
30,377,770 |
|
|
|
29,039,274 |
|
Total liabilities and stockholders' equity |
|
$ |
35,280,827 |
|
|
$ |
35,310,577 |
|
THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||
|
|
Year Ended
|
|
Year Ended
|
||||
|
|
|
|
|
|
|
||
Net revenue |
|
|
|
|
|
|
||
Fund management - related party |
|
$ |
20,862,191 |
|
|
$ |
23,835,348 |
|
Food products |
|
|
7,631,837 |
|
|
|
7,930,888 |
|
Security systems |
|
|
2,832,531 |
|
|
|
2,533,098 |
|
Beauty products |
|
|
3,033,100 |
|
|
|
3,529,789 |
|
Financial services |
|
|
517,075 |
|
|
|
- |
|
Net revenue |
|
|
34,876,734 |
|
|
|
37,829,123 |
|
|
|
|
|
|
|
|
||
Cost of revenue |
|
|
8,750,546 |
|
|
|
9,194,783 |
|
|
|
|
|
|
|
|
||
Gross profit |
|
|
26,126,188 |
|
|
|
28,634,340 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating expense |
|
|
|
|
|
|
||
Salaries and compensation |
|
|
10,042,155 |
|
|
|
8,812,081 |
|
General and administrative expense |
|
|
7,075,639 |
|
|
|
6,794,645 |
|
Fund operations |
|
|
4,387,004 |
|
|
|
4,600,535 |
|
Marketing and advertising |
|
|
2,623,965 |
|
|
|
2,985,659 |
|
Depreciation and amortization |
|
|
577,086 |
|
|
|
561,019 |
|
Legal settlement |
|
|
- |
|
|
|
2,500,000 |
|
Total operating expenses |
|
|
24,705,849 |
|
|
|
26,253,939 |
|
|
|
|
|
|
|
|
||
Income from operations |
|
|
1,420,339 |
|
|
|
2,380,401 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
|
||
Interest and dividend income |
|
|
274,932 |
|
|
|
35,357 |
|
Interest expense |
|
|
(19,940 |
) |
|
|
(31,512 |
) |
Other (expense), net |
|
|
(81,313 |
) |
|
|
(26,125 |
) |
Total other income (expense), net |
|
|
173,679 |
|
|
|
(22,280 |
) |
|
|
|
|
|
|
|
||
Income before income taxes |
|
|
1,594,018 |
|
|
|
2,358,121 |
|
|
|
|
|
|
|
|
||
Provision of income taxes |
|
|
(428,989 |
) |
|
|
(1,212,400 |
) |
|
|
|
|
|
|
|
||
Net income |
|
$ |
1,165,029 |
|
|
$ |
1,145,721 |
|
|
|
|
|
|
|
|
||
Weighted average shares of common stock |
|
|
|
|
|
|
||
Basic |
|
|
40,370,659 |
|
|
|
39,034,611 |
|
Diluted |
|
|
40,403,999 |
|
|
|
39,034,611 |
|
|
|
|
|
|
|
|
||
Net income per common share |
|
|
|
|
|
|
||
Basic |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
Diluted |
|
$ |
0.03 |
|
|
$ |
0.03 |
|
THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
||||||||
|
|
Year Ended
|
|
Year Ended
|
||||
|
|
|
|
|
|
|
||
Net income |
|
$ |
1,165,029 |
|
$ |
1,145,721 |
|
|
|
|
|
|
|
|
|
||
Other comprehensive income: |
|
|
|
|
|
|
||
Foreign currency translation gain (loss) |
|
|
89,950 |
|
|
|
(377,371 |
) |
Comprehensive income |
|
$ |
1,254,979 |
|
|
$ |
768,350 |
|
THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |
||||||||||||||||||||||||||||||||
FOR THE YEARS ENDED JUNE 30, 2023 AND 2022 |
||||||||||||||||||||||||||||||||
Period Ending June 30, 2023 |
|
Preferred Stock
|
|
|
Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Number
|
|
|
Amount |
|
|
Number of
|
|
|
Par
|
|
|
Additional
|
|
|
Accumulated
|
|
Retained
|
|
|
Total
|
||||||||||
Balance at July 1, 2021 |
|
|
49,360 |
|
|
$ |
49 |
|
|
|
37,485,959 |
|
|
$ |
37,486 |
|
|
$ |
9,330,843 |
|
|
$ |
142,581 |
|
|
$ |
15,775,705 |
|
|
$ |
25,286,664 |
|
Loss on currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(377,371 |
) |
|
|
- |
|
|
|
(377,371 |
) |
Issuance of common stock in public offering, net of issuance costs |
|
|
- |
|
|
|
- |
|
|
|
1,897,500 |
|
|
|
1,898 |
|
|
|
2,982,362 |
|
|
|
- |
|
|
|
- |
|
|
|
2,984,260 |
|
Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,145,721 |
|
|
|
1,145,721 |
|
Balance at June 30, 2022 |
|
|
49,360 |
|
|
$ |
49 |
|
|
|
39,383,459 |
|
|
$ |
39,384 |
|
|
$ |
12,313,205 |
|
|
$ |
(234,790 |
) |
|
$ |
16,921,426 |
|
|
$ |
29,039,274 |
|
Gain on currency translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
89,950 |
|
|
|
- |
|
|
|
89,950 |
|
Stock-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
83,517 |
|
|
|
- |
|
|
|
- |
|
|
|
83,517 |
|
Net income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,165,029 |
|
|
|
1,165,029 |
|
Balance at June 30, 2023 |
|
|
49,360 |
|
|
$ |
49 |
|
|
|
39,383,459 |
|
|
$ |
39,384 |
|
|
$ |
12,396,722 |
|
|
$ |
(144,840 |
) |
|
$ |
18,086,455 |
|
|
$ |
30,377,770 |
|
THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
|
For the Year Ended |
||||||
|
|
June 30, |
||||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income |
|
$ |
1,165,029 |
|
|
$ |
1,145,721 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
577,086 |
|
|
|
561,019 |
|
Bad debt expense |
|
|
1,427 |
|
|
|
4,350 |
|
Impairment of inventory value and provision |
|
|
2,698 |
|
|
|
10,509 |
|
Deferred taxes |
|
|
(36,474 |
) |
|
|
51,689 |
|
Stock-based compensation |
|
|
83,517 |
|
|
|
- |
|
Unrealized loss (gain) on investments |
|
|
125,570 |
|
|
|
(28,474 |
) |
Gain on disposal of equipment |
|
|
- |
|
|
|
(17,455 |
) |
Operating lease right-of-use asset - non-cash lease cost |
|
|
656,600 |
|
|
|
764,311 |
|
|
|
|
|
|
|
|
||
Decrease (increase) in current assets: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(411,175 |
) |
|
|
44,356 |
|
Accounts receivable - related party |
|
|
556,979 |
|
|
|
(192,820 |
) |
Prepaid income taxes and tax receivable |
|
|
172,592 |
|
|
|
(431,005 |
) |
Inventories |
|
|
(81,868 |
) |
|
|
(379,905 |
) |
Other current assets |
|
|
(204,417 |
) |
|
|
(287,750 |
) |
(Decrease) increase in operating liabilities: |
|
|
|
|
|
|
||
Accounts payable, accrued expenses and legal settlement |
|
|
(74,022 |
) |
|
|
(1,048,279 |
) |
Operating lease liabilities |
|
|
(670,639 |
) |
|
|
(777,082 |
) |
Expense waivers - related party |
|
|
(11,514 |
) |
|
|
515 |
|
Net cash provided by (used in) operating activities |
|
|
1,851,389 |
|
|
|
(580,300 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Cash paid for acquisition of business, net |
|
|
- |
|
|
|
(508,851 |
) |
Proceeds from sale of property, plant and equipment |
|
|
- |
|
|
|
31,612 |
|
Purchase of property, plant and equipment |
|
|
(94,730 |
) |
|
|
(44,041 |
) |
Payment of purchase consideration payable |
|
|
(623,592 |
) |
|
|
- |
|
Proceeds from sale of investments |
|
|
9,281,197 |
|
|
|
508,122 |
|
Purchase of investments |
|
|
(15,855,058 |
) |
|
|
(3,712,250 |
) |
Net cash used in investing activities |
|
|
(7,292,183 |
) |
|
|
(3,725,408 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Repayment of related party loans |
|
|
- |
|
|
|
(603,500 |
) |
Repayment of property and equipment loans |
|
|
(14,732 |
) |
|
|
(41,884 |
) |
Principal payments of finance lease liability |
|
|
(5,573 |
) |
|
|
- |
|
Proceeds from issuance of common stock, net of issuance costs |
|
|
- |
|
|
|
2,984,260 |
|
Net cash (used in) provided by financing activities |
|
|
(20,305 |
) |
|
|
2,338,876 |
|
|
|
|
|
|
|
|
||
Effect of exchange rate change on cash and cash equivalents |
|
|
118,410 |
|
|
|
(191,213 |
) |
|
|
|
|
|
|
|
||
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
(5,342,689 |
) |
|
|
(2,158,045 |
) |
|
|
|
|
|
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE |
|
|
13,928,899 |
|
|
|
16,086,944 |
|
|
|
|
|
|
|
|
||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE |
|
$ |
8,586,210 |
|
|
$ |
13,928,899 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
8,161,167 |
|
|
|
12,915,620 |
|
Restricted cash |
|
|
425,043 |
|
|
|
1,013,279 |
|
Total cash, cash equivalents and restricted cash shown in statement of cash flows |
|
$ |
8,586,210 |
|
|
$ |
13,928,899 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid during the period for: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
15,493 |
|
|
$ |
16,401 |
|
Income taxes paid, net |
|
$ |
231,693 |
|
|
$ |
1,704,970 |
|
NON CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Purchase consideration payable |
|
$ |
- |
|
|
$ |
1,237,207 |
|
Acquisition of operating right-of-use assets through operating lease liability |
|
$ |
103,603 |
|
|
$ |
1,057,965 |
|
Fair value of warrants of common stock issued to underwriters |
|
$ |
- |
|
|
$ |
132,000 |
|
Acquisition of equipment through finance lease liability |
|
$ |
- |
|
|
$ |
150,625 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230925004802/en/
Media and investors, for more Information, contact:
Roger S. Pondel
PondelWilkinson Inc.
310-279-5965
rpondel@pondel.com
Contact the Company:
David Neibert, Chief Operations Officer
949-429-5370
dneibert@themarygoldcompanies.com
Source: The Marygold Companies, Inc.