Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 110

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 110
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 U.K. market. The consolidated operating
loss for financial services was $3.3 million for the current six months as compared to a loss of $3.0 million for the six months ended
December 31, 2023.

27

Corporate
Headquarters

The Marygold Companies as a holding
company has no significant revenue, however, it does have operating expenses such as, but not limited to, salaries, audit and legal
fees, NYSE American listing fees and expenses, expenses related to compliance with its SEC periodic reporting requirements,
insurance, interest expense, and investor relations which produce operating losses. Operating loss for the corporate headquarters
increased by $0.6 million, or 30%, for the six months ended December 31, 2024 as compared to same period in 2023. The increased loss
was driven by higher stock-based compensation expenses from additional outstanding equity grants during the six months
ended December 31, 2024.

Liquidity
and Capital Resources

The
Marygold Companies is a diversified holding company that conducts its individual business operations through its subsidiaries. At
the holding-company level, its liquidity needs relate to operational expenses, the funding of additional business acquisitions and
new investment opportunities. Our operating subsidiaries’ principal liquidity requirements arise from cash used in operating
activities, debt service, and capital expenditures, including purchases of equipment and services, operating costs and expenses, and
income taxes. Cash is managed at the holding company and the subsidiary level. There are generally no legal limitations or
constraints on the movement of funds between the entities, however there are potential tax consequences for funds moved from foreign
subsidiaries to the parent company. Additionally, our registered investment advisor subsidiaries are required to maintain certain
minimum capital requirements.

As
of December 31, 2024, we had $5.7 million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June
30, 2024, a increase of $0.2 million or 4%. Our cash used in operating activities for the six months ended December 31, 2024 was $1.7
million. For the six months ended December 31, 2024, the Company made additional expenditures of $2.7 million with regard to the development
of our mobile Fintech app. We have invested a total of $18 million in the Fintech app since Marygold’s inception. In September 2024,
we entered into