Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 97

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 97
---

loss decreased by less than $0.1 million or 34% for the quarter ended March 31, 2025 as compared to 2024 as a result of the elimination
of amortization expense associated with the impairment of intangible assets at the end of the prior fiscal year.

Security
Systems - Brigadier

Brigadier earns revenue from two primary sources. The company sells to residential customers alarm monitoring contracts
and installations on behalf of a telecom provider for whom it is a dealer. These contracts result in recurring monthly residuals comprising
approximately 50% of revenues. Remaining revenues are derived from sales and installation of access controls, alarm, video, and fire panel
alarm monitoring hardware to commercial businesses and publicly owned facilities. Revenues from monitoring residual fees remained relatively
static while sales and installations of larger commercial installations increased for the quarter ended March 31, 2025 as compared to
2024. Revenue decreased by less than $0.1 million or 13% and operating income was relatively flat at $0.1 million. The larger commercial
accounts generate more revenue and profits but take longer to complete, thus may produce spikes or declines in revenue and profits for
specific reporting periods. As the residential consumer segment of the industry becomes more complex due to the bundling of services,
including alarm monitoring, offered by larger telecom companies, we expect to focus even more heavily on the commercial and public facilities
customers in the coming years.

U.S.
and U.K. Financial Services – Marygold US and Marygold UK

Our
Financial Services segment is comprised of Marygold US and Marygold UK, which are distinct operating entities with differing revenue
streams.

Marygold
US developed and launched a mobile banking fintech app which earned revenue in the form of management fees based on a percentage of
the amount of account holder funds invested in various curated ETF portfolios offered on the app (“Money Pools”), and
from transaction fees when account holders used a debit card. The app was soft-launched in June 2023 as a proof of concept. Since
that time, the app has earned only de minimis revenues. As a result, the Company has decided to pause the offering and operating the app
in the US and focus on launching the app in the UK instead. Operating costs are comprised of development team salaries and expenses,
fees paid to third party vendors, fees paid to our sponsoring bank, marketing costs and staff salaries. For the quarter ended March
31, 2025, Marygold US incurred