MGLD - The Marygold Companies Reports Financial Results for 2023 Second Fiscal Quarter
-Company Posts Profitable Operating Results, with Strong Balance Sheet-
-Enters Beta Testing Phase for New Fintech App, Expected Soft Launch Later this Calendar Year-
The Marygold Companies, Inc. (“TMC,” or the “Company”) (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the second fiscal quarter and six months ended December 31, 2022.
Net revenue for the second fiscal quarter of 2023 was $8.8 million, versus $9.4 million for the comparable prior year period. Net income for the 2023 second fiscal quarter amounted to $181,794, equal to approximately breakeven per share, compared with $1.0 million, or $0.03 per diluted share, for the same quarter of the prior fiscal year.
For the first half of the current fiscal year, net revenue was $17.7 million, versus $19.2 million a year ago. Net income for the six months ended December 31, 2022 increased to $678,962, equal to $0.02 per diluted share, compared with a net loss of 857,658, or a net loss of $0.02 per share, in the same period a year ago, which included a legal settlement of $2.5 million in last fiscal year’s first quarter.
The Company’s balance sheet remained strong at December 31, 2022, with no debt. Cash and cash equivalents increased to $14.6 from $12.9 million at June 30, 2022. Total stockholders’ equity rose to $29.8 million at December 31, 2022, from $29.0 million at June 30, 2022, Total assets were $35.2 million at the close of the second fiscal quarter of 2023, compared with $35.3 million at June 30, 2022, with the slight decrease principally reflecting currency translation values in the Company’s foreign holdings.
“We are pleased to have achieved profitable operations during a period in which continued investments were made in the late development stages of our mobile fintech app at Marygold & Co., and when assets under management (AUM) at our largest subsidiary, USCF Investments, were lower than in the prior year,” said David Neibert, Chief Operations Officer of The Marygold Companies. Average AUM at USCF Investments was approximately $3.8 billion in the most recent quarter, compared with $4.2 billion for the end of the comparable period last year.
“Our non-financial operations - Original Sprout, Gourmet Foods and Brigadier Security Systems - felt the pressures of the continued inflationary environment in the quarter, although each was cash flow positive and posted operating income. Initiatives are being implemented to enhance the performance of these business units through changes in product mix and establishing new sales channels,” Neibert added.
“All segments of our business are sound and performing on plan, which we view as an outstanding achievement and a testament to our dedicated team in today’s challenging economic climate,” said Nicholas Gerber, TMC’s Chief Executive Officer. “At the same time, we are making great strides completing the development of our mobile fintech app to provide users with a unified platform for spending, saving and investing, while offering detailed transaction reporting coupled with ease of use. We expect to soft launch this exciting product later this calendar year.”
Business Units
The Company’s USCF Investments subsidiary, www.uscfinvestments.com , acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 12 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 August 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 July 2020, Printstock Products Limited https://www.printstocknz.com/ , 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, www.brigadiersecurity.com , acquired in June 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 at the end of 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, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas.
Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The company continues in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/ .
Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its recently acquired subsidiary, Tiger Financial & Asset Management Limited (“Tiger”), a U.K. based investment adviser. Tiger’s core business is managing clients’ financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/
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 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, including, but not limited to, a soft launch of the mobile fintech app later this year, 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 28, 2022, 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. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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| December 31, |
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| June 30, |
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| ASSETS |
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| CURRENT ASSETS |
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| Cash and cash equivalents |
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| $ |
| 14,579,438 |
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| $ |
| 12,915,620 |
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| Accounts receivable, net |
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| 1,104,856 |
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| 959,350 |
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| Accounts receivable - related parties |
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| 1,767,220 |
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| 2,230,874 |
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| Inventories |
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| 2,583,935 |
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| 2,200,742 |
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| Prepaid income tax and tax receivable |
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| 1,046,909 |
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| 1,166,318 |
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| Investments, at fair value |
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| 4,346,998 |
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| 5,065,931 |
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| Other current assets |
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| 735,834 |
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| 699,547 |
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| Total current assets |
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| 26,165,190 |
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| 25,238,382 |
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| Restricted cash |
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| 406,642 |
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| 1,013,279 |
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| Property, plant and equipment, net |
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| 1,306,675 |
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| 1,391,894 |
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| Operating lease right-of-use asset |
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| 1,216,302 |
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| 1,357,686 |
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| Goodwill |
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| 2,307,202 |
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| 2,307,202 |
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| Intangible assets, net |
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| 2,509,098 |
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| 2,708,896 |
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| Deferred tax assets, net - United States |
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| 753,078 |
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| 753,078 |
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| Other assets, long - term |
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| 552,660 |
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| 540,160 |
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| Total assets |
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| $ |
| 35,216,847 |
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| $ |
| 35,310,577 |
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
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| CURRENT LIABILITIES |
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| Accounts payable and accrued expenses |
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| $ |
| 2,720,350 |
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| $ |
| 2,805,790 |
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| Expense waivers – related parties |
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| 163,576 |
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| 70,199 |
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| Operating lease liabilities, current portion |
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| 682,484 |
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| 660,957 |
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| Purchase consideration payable |
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|
| 604,990 |
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| 1,237,207 |
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| Loans - property and equipment, current portion |
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| 33,384 |
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| 33,496 |
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| Total current liabilities |
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| 4,204,784 |
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| 4,807,649 |
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| LONG-TERM LIABILITIES |
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| Loans - property and equipment, net of current portion |
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|
| 427,490 |
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|
|
|
|
| 459,178 |
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|
| Operating lease liabilities, net of current portion |
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|
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|
| 569,190 |
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|
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|
| 743,923 |
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| Deferred tax liabilities, net-foreign |
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|
| 260,553 |
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| 260,553 |
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| Total long-term liabilities |
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|
| 1,257,233 |
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| 1,463,654 |
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| Total liabilities |
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|
| 5,462,017 |
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|
|
|
| 6,271,303 |
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| STOCKHOLDERS' EQUITY |
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| Preferred stock, $0.001 par value; 50,000,000 shares authorized |
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| Series B: 49,360 shares issued and outstanding at December 31, 2022 and at June 30, 2022 |
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| 49 |
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|
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| 49 |
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| Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at December 31, 2022 and at June 30, 2022 |
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|
|
|
| 39,384 |
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|
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|
|
| 39,384 |
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| Additional paid-in capital |
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|
|
| 12,329,609 |
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|
|
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| 12,313,205 |
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| Accumulated other comprehensive loss |
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|
|
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| (214,600 |
| ) |
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|
|
|
| (234,790 |
| ) |
| Retained earnings |
|
|
|
|
| 17,600,388 |
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|
|
|
|
| 16,921,426 |
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| Total stockholders' equity |
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|
|
|
| 29,754,830 |
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|
|
|
|
|
| 29,039,274 |
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| Total liabilities and stockholders' equity |
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| $ |
| 35,216,847 |
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|
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| $ |
| 35,310,577 |
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| (1) |
| Derived from audited financial statements |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) |
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| Three Months |
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| Three Months |
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| Six Months |
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| Six Months |
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| Net revenue |
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|
|
|
|
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|
|
|
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| Fund management - related party |
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| $ |
| 5,266,171 |
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|
|
|
| $ |
| 5,701,384 |
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|
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| $ |
| 10,685,606 |
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|
|
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| $ |
| 11,358,411 |
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| Food products |
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|
|
|
| 1,932,304 |
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|
|
|
|
|
| 2,108,257 |
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|
|
|
|
|
| 3,869,752 |
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|
|
|
|
|
| 4,468,402 |
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| Security systems |
|
|
|
|
| 665,028 |
|
|
|
|
|
|
| 642,623 |
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|
|
|
|
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| 1,294,860 |
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|
|
|
|
|
| 1,333,253 |
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| Beauty products |
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|
|
|
| 784,463 |
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|
|
|
|
|
| 992,852 |
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|
|
|
|
| 1,588,541 |
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|
|
|
|
| 2,013,924 |
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| Financial services |
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| 124,282 |
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|
|
| - |
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|
|
|
|
|
| 257,775 |
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|
|
|
|
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| - |
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| Net revenue |
|
|
|
|
| 8,772,248 |
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|
|
|
|
|
| 9,445,116 |
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|
|
|
|
|
| 17,696,534 |
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|
|
|
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| 19,173,990 |
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|
|
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| Cost of revenue |
|
|
|
|
| 2,230,954 |
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|
|
|
|
|
| 2,417,798 |
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|
|
|
|
|
| 4,255,969 |
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|
|
|
|
| 5,068,538 |
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|
|
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|
|
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| Gross profit |
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|
|
|
| 6,541,294 |
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|
|
|
|
|
| 7,027,318 |
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|
|
|
|
|
| 13,440,565 |
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|
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|
|
| 14,105,452 |
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|
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|
|
|
|
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|
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|
|
|
|
|
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|
|
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| Operating expense |
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and compensation |
|
|
|
|
| 2,804,759 |
|
|
|
|
|
|
| 2,576,285 |
|
|
|
|
|
|
| 5,173,141 |
|
|
|
|
|
|
| 4,707,440 |
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|
| General and administrative expense |
|
|
|
|
| 1,820,469 |
|
|
|
|
|
|
| 1,198,209 |
|
|
|
|
|
|
| 3,511,867 |
|
|
|
|
|
|
| 3,317,711 |
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| Fund operations |
|
|
|
|
| 1,112,244 |
|
|
|
|
|
|
| 1,102,237 |
|
|
|
|
|
|
| 2,252,832 |
|
|
|
|
|
|
| 2,203,853 |
|
|
| Marketing and advertising |
|
|
|
|
| 555,939 |
|
|
|
|
|
|
| 690,831 |
|
|
|
|
|
|
| 1,328,749 |
|
|
|
|
|
|
| 1,409,486 |
|
|
| Depreciation and amortization |
|
|
|
|
| 147,769 |
|
|
|
|
|
|
| 133,191 |
|
|
|
|
|
|
| 296,985 |
|
|
|
|
|
|
| 287,849 |
|
|
| Legal settlement |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 2,500,000 |
|
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| Total operating expenses |
|
|
|
|
| 6,441,180 |
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|
|
|
|
|
| 5,700,753 |
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|
|
|
|
|
| 12,563,574 |
|
|
|
|
|
|
| 14,426,339 |
|
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|
|
|
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|
|
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|
|
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|
|
|
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|
|
|
|
|
|
|
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|
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|
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|
|
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| Income (loss) from operations |
|
|
|
|
| 100,114 |
|
|
|
|
|
|
| 1,326,565 |
|
|
|
|
|
|
| 876,991 |
|
|
|
|
|
|
| (320,887 |
| ) |
|
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|
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|
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|
|
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|
|
|
|
|
|
|
|
|
| Other income (expense): |
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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| Interest and dividend income |
|
|
|
|
| 62,630 |
|
|
|
|
|
|
| 6,088 |
|
|
|
|
|
|
| 115,193 |
|
|
|
|
|
|
| 13,484 |
|
|
| Interest expense |
|
|
|
|
| (3,596 |
| ) |
|
|
|
|
| (10,085 |
| ) |
|
|
|
|
| (11,403 |
| ) |
|
|
|
|
| (20,285 |
| ) |
| Other income (expense) |
|
|
|
|
| 129,975 |
|
|
|
|
|
|
| (214,981 |
| ) |
|
|
|
|
| 31,761 |
|
|
|
|
|
|
| (206,973 |
| ) |
| Total other income (expense), net |
|
|
|
|
| 189,009 |
|
|
|
|
|
|
| (218,978 |
| ) |
|
|
|
|
| 135,551 |
|
|
|
|
|
|
| (213,774 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
|
|
| 289,123 |
|
|
|
|
|
|
| 1,107,587 |
|
|
|
|
|
|
| 1,012,542 |
|
|
|
|
|
|
| (534,661 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
|
|
| (107,329 |
| ) |
|
|
|
|
| (84,252 |
| ) |
|
|
|
|
| (333,580 |
| ) |
|
|
|
|
| (322,997 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| $ |
| 181,794 |
|
|
|
|
| $ |
| 1,023,335 |
|
|
|
|
| $ |
| 678,962 |
|
|
|
|
| $ |
| (857,658 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
|
|
| 40,370,659 |
|
|
|
|
|
|
| 38,473,159 |
|
|
|
|
|
|
| 40,370,659 |
|
|
|
|
|
|
| 38,473,159 |
|
|
| Diluted |
|
|
|
|
| 40,370,659 |
|
|
|
|
|
|
| 38,473,159 |
|
|
|
|
|
|
| 40,383,722 |
|
|
|
|
|
|
| 38,473,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
|
| $ |
| 0.00 |
|
|
|
|
| $ |
| 0.03 |
|
|
|
|
| $ |
| 0.02 |
|
|
|
|
| $ |
| (0.02 |
| ) |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) |
|
|
|
|
| Three Months |
|
|
|
|
| Three Months |
|
|
|
|
| Six Months |
|
|
|
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| $ |
| 181,794 |
|
|
|
|
| $ |
| 1,023,335 |
|
|
|
|
| $ |
| 678,962 |
|
|
|
|
| $ |
| (857,658 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign currency translation gain (loss) |
|
|
|
|
| 333,949 |
|
|
|
|
|
|
| (14,442 |
| ) |
|
|
|
|
| 20,190 |
|
|
|
|
|
|
| (100,610 |
| ) |
| Comprehensive income (loss) |
|
|
| $ |
| 515,743 |
|
|
|
|
| $ |
| 1,008,893 |
|
|
|
|
| $ |
| 699,152 |
|
|
|
|
| $ |
| (958,268 |
| ) |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE AND SIX MONTH PERIODS ENDED DECEMBER 31, 2022 AND DECEMBER 31, 2021 (UNAUDITED) |
| Period Ending December 31, 2022 |
|
|
| Preferred Stock (Series B) |
|
|
|
|
| Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of Shares |
|
|
|
|
| Amount |
|
|
|
|
| Number of Shares |
|
|
|
|
| Par Value |
|
|
|
|
| Additional Paid - in Capital |
|
|
|
|
| Accumulated Other Comprehensive Income (Loss) |
|
|
|
|
| Retained Earnings |
|
|
|
|
| Total Stockholders' Equity |
|
|
| Balance at July 1, 2022 |
|
|
|
|
| 49,360 |
|
|
|
|
| $ |
| 49 |
|
|
|
|
|
|
| 39,383,459 |
|
|
|
|
| $ |
| 39,384 |
|
|
|
|
| $ |
| 12,313,205 |
|
|
|
|
| $ |
| (234,790 |
| ) |
|
|
| $ |
| 16,921,426 |
|
|
|
|
| $ |
| 29,039,274 |
|
|
| Loss on currency translation |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (313,759 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (313,759 |
| ) |
| Stock-based compensation |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 6,700 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 6,700 |
|
|
| Net income |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 497,168 |
|
|
|
|
|
|
| 497,168 |
|
|
| Balance at September 30, 2022 |
|
|
|
|
| 49,360 |
|
|
|
|
| $ |
| 49 |
|
|
|
|
|
|
| 39,383,459 |
|
|
|
|
| $ |
| 39,384 |
|
|
|
|
| $ |
| 12,319,905 |
|
|
|
|
| $ |
| (548,549 |
| ) |
|
|
| $ |
| 17,418,594 |
|
|
|
|
| $ |
| 29,229,383 |
|
|
| Gain on currency translation |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 333,949 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 333,949 |
|
|
| Stock-based compensation |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 9,704 |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 9,704 |
|
|
| Net income |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 181,794 |
|
|
|
|
|
|
| 181,794 |
|
|
| Balance at December 31, 2022 |
|
|
|
|
| 49,360 |
|
|
|
|
| $ |
| 49 |
|
|
|
|
|
|
| 39,383,459 |
|
|
|
|
| $ |
| 39,384 |
|
|
|
|
| $ |
| 12,329,609 |
|
|
|
|
| $ |
| (214,600 |
| ) |
|
|
| $ |
| 17,600,388 |
|
|
|
|
| $ |
| 29,754,830 |
|
|
| Period Ending December 31, 2021 |
|
|
| Preferred Stock (Series B) |
|
|
|
|
| Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of Shares |
|
|
|
|
| Amount |
|
|
|
|
| Number of Shares |
|
|
|
|
| Par Value |
|
|
|
|
| Additional Paid - in Capital |
|
|
|
|
| Accumulated Other Comprehensive Income (Loss) |
|
|
|
|
| Retained Earnings |
|
|
|
|
| Total Stockholders' Equity |
|
|
| 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 |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (86,168 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (86,168 |
| ) |
| Net loss |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (1,880,993 |
| ) |
|
|
|
|
| (1,880,993 |
| ) |
| Balance at September 30, 2021 |
|
|
|
|
| 49,360 |
|
|
|
|
| $ |
| 49 |
|
|
|
|
|
|
| 37,485,959 |
|
|
|
|
| $ |
| 37,486 |
|
|
|
|
| $ |
| 9,330,843 |
|
|
|
|
| $ |
| 56,413 |
|
|
|
|
| $ |
| 13,894,712 |
|
|
|
|
| $ |
| 23,319,503 |
|
|
| Loss on currency translation |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| (14,442 |
| ) |
|
|
|
|
| - |
|
|
|
|
|
|
| (14,442 |
| ) |
| Net income |
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| - |
|
|
|
|
|
|
| 1,023,335 |
|
|
|
|
|
|
| 1,023,335 |
|
|
| Balance at December 31, 2021 |
|
|
|
|
| 49,360 |
|
|
|
|
| $ |
| 49 |
|
|
|
|
|
|
| 37,485,959 |
|
|
|
|
| $ |
| 37,486 |
|
|
|
|
| $ |
| 9,330,843 |
|
|
|
|
| $ |
| 41,971 |
|
|
|
|
| $ |
| 14,918,047 |
|
|
|
|
| $ |
| 24,328,396 |
|
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
| For the Six Month Period Ended |
|
|
|
|
|
|
| December 31, |
|
|
|
|
|
|
| 2022 |
|
|
|
|
| 2021 |
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
| $ |
| 678,962 |
|
|
|
|
| $ |
| (857,658 |
| ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
|
| 296,985 |
|
|
|
|
|
|
| 287,849 |
|
|
| Bad debt expense |
|
|
|
|
| 582 |
|
|
|
|
|
|
| - |
|
|
| Impairment to inventory value |
|
|
|
|
| 288 |
|
|
|
|
|
|
| 3,478 |
|
|
| Stock-based compensation |
|
|
|
|
| 16,404 |
|
|
|
|
|
|
| - |
|
|
| Unrealized gain on investments |
|
|
|
|
| (11,020 |
| ) |
|
|
|
|
| (29,251 |
| ) |
| Loss on disposal of equipment |
|
|
|
|
| - |
|
|
|
|
|
|
| 37,189 |
|
|
| Operating lease right-of-use asset - non-cash lease cost |
|
|
|
|
| 147,363 |
|
|
|
|
|
|
| 337,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Decrease (increase) in current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivable, net |
|
|
|
|
| (199,029 |
| ) |
|
|
|
|
| (118,395 |
| ) |
| Accounts receivable - related party |
|
|
|
|
| 463,654 |
|
|
|
|
|
|
| 256,020 |
|
|
| Prepaid income taxes and tax receivable |
|
|
|
|
| 121,124 |
|
|
|
|
|
|
| (324,699 |
| ) |
| Inventories |
|
|
|
|
| (360,765 |
| ) |
|
|
|
|
| (196,514 |
| ) |
| Other current assets |
|
|
|
|
| (33,427 |
| ) |
|
|
|
|
| (74,549 |
| ) |
| (Decrease) increase in current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable and accrued expenses |
|
|
|
|
| (43,698 |
| ) |
|
|
|
|
| (486,835 |
| ) |
| Operating lease liabilities |
|
|
|
|
| (153,206 |
| ) |
|
|
|
|
| (341,411 |
| ) |
| Expense waivers - related party |
|
|
|
|
| 93,378 |
|
|
|
|
|
|
| 59,064 |
|
|
| Net cash provided by (used in) operating activities |
|
|
|
|
| 1,017,595 |
|
|
|
|
|
|
| (1,447,862 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchase of property, plant and equipment |
|
|
|
|
| (34,777 |
| ) |
|
|
|
|
| (3,988 |
| ) |
| Purchase consideration payable |
|
|
|
|
| (633,893 |
| ) |
|
|
|
|
| - |
|
|
| Proceeds from sale of investments |
|
|
|
|
| 1,000,000 |
|
|
|
|
|
|
| 506,492 |
|
|
| Purchase of investments |
|
|
|
|
| (266,680 |
| ) |
|
|
|
|
| (1,533,385 |
| ) |
| Net cash provided by (used in) investing activities |
|
|
|
|
| 64,650 |
|
|
|
|
|
|
| (1,030,881 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Repayment of property and equipment loans |
|
|
|
|
| (7,099 |
| ) |
|
|
|
|
| (7,208 |
| ) |
| Principal payments of finance lease liability |
|
|
|
|
| (5,573 |
| ) |
|
|
|
|
| (1,753 |
| ) |
| Issuance costs pursuant to planned stock issuance |
|
|
|
|
| - |
|
|
|
|
|
|
| (249,720 |
| ) |
| Net cash used in financing activities |
|
|
|
|
| (12,672 |
| ) |
|
|
|
|
| (258,681 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate change on cash and cash equivalents |
|
|
|
|
| (12,392 |
| ) |
|
|
|
|
| (50,404 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
|
|
| 1,057,181 |
|
|
|
|
|
|
| (2,787,828 |
| ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE |
|
|
|
|
| 13,928,899 |
|
|
|
|
|
|
| 16,086,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE |
|
|
| $ |
| 14,986,080 |
|
|
|
|
| $ |
| 13,299,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
|
| 14,579,438 |
|
|
|
|
|
|
| 13,285,452 |
|
|
| Restricted cash |
|
|
|
|
| 406,642 |
|
|
|
|
|
|
| 13,664 |
|
|
| Total cash, cash equivalents and restricted cash shown in statement of cash flows |
|
|
| $ |
| 14,986,080 |
|
|
|
|
| $ |
| 13,299,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash paid during the period for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest paid |
|
|
| $ |
| 7,855 |
|
|
|
|
| $ |
| 8,046 |
|
|
| Income taxes paid, net |
|
|
| $ |
| 164,396 |
|
|
|
|
| $ |
| 632,961 |
|
|
| NON CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition of operating right-of-use assets through operating lease liability |
|
|
| $ |
| 103,609 |
|
|
|
|
|
|
| 995,805 |
|
|
| Acquisition of equipment through finance lease liability |
|
|
| $ |
| - |
|
|
|
|
| $ |
| 150,625 |
|
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
View source version on businesswire.com: https://www.businesswire.com/news/home/20230214005844/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