Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 601

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 5
Chunk 601
---
    Percentage Change 
  
    Revenue 
    $30,154  
    $32,836  
     -8%
  
    Cost of revenue 
     8,282  
     8,720  
     -5%
  
    Gross profit 
     21,872  
     24,116  
     -9%
  
    Operating expenses 
     28,562  
     30,372  
     -6%
  
    Loss from operations 
     (6,690) 
     (6,256) 
     7%
  
    Other (expense) income, net 
     (692) 
     808  
     -186%
  
    Loss before income taxes 
     (7,382) 
     (5,448) 
     35%
  
    Benefit from income taxes 
     1,562  
     1,379  
     13%
  
    Net loss 
    $(5,820) 
    $(4,069) 
     43%

Fiscal
Year 2025 Compared with Fiscal Year 2024

Revenue
decreased by $2.7 million or 8% for fiscal 2025 driven by reduced revenue of $1.8 million at our fund management segment, $0.6
million at our food products segment and $0.3 million at our beauty products segment. Average Assets Under Management
(“AUM”) in our fund management business for fiscal 2025 was $2.9 billion compared to $3.3 billion for fiscal 2024. The
reduction in AUM in fiscal 2025 was due to commodity price fluctuations, energy demand as well as geopolitical and economic
uncertainty. The decreased revenue in food products was driven by changing our product mix and refocusing production capacity to
higher profit margin customers. The decreased revenue in beauty products was driven by the efforts to control the discounted price
of products sold online by unauthorized resellers.

Gross
profit decreased by $2.2 million or 9% for the reasons described above for the reduced revenue as the gross profit margin remained consistent from fiscal 2024 to fiscal 2025.

Operating expenses decreased by $1.8 million or 6% as a result of the following. During fiscal 2024, we recorded
a $1.4 million impairment charge relating to the goodwill and other intangible assets