Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 339

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1C
Chunk 339
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 in fiscal 2024, Original Sprout no
longer has any amortization charges from the intangible assets that were written down. Original Sprout also reduced its marketing expense
by $0.3 million from fiscal 2024 to fiscal 2025.

Security
Systems - Brigadier

Revenue
decreased by $0.2 million or 7% and operating income decreased by $0.1 million or 23% driven by market timing and weather patterns. Revenues
from monitoring residual fees remained relatively static while sales and installations of larger commercial installations decreased for
fiscal 2025 as compared to 2024. The larger commercial accounts generate more revenue and profit but take longer to complete, thus may
produce spikes or declines in revenue and profits for specific reporting periods. Brigadier was sold to a related party on July
1, 2025 (see “Certain Recent Developments – Sale of Brigadier” and Note 16, Subsequent Events to the audited consolidated
financial statements included in this Form 10-K).

26

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

Marygold US incurred an operating loss of $4.7 million
in fiscal 2025 compared to an operating loss of $5.7 million in fiscal 2024. Since the Marygold US app earned only de minimis revenues
since its launch in June 2023, Marygold US decided to pause operations of the app in the U.S. effective March 31, 2025. As such,
the losses and negative cash flows from Marygold US are expected to be reduced going forward as the Company assesses whether it will continue further development of the app for the U.S. market; discontinue development of the app other
than for the U.K market; or license or sell the app to a third party, of which there can be no assurance. In order to further develop
the app for the U.S. market, the Company anticipates it would need to raise additional debt or equity financing. There can be no assurance
the Company will be able to raise such additional financing or upon terms acceptable to it.

The overall financial services revenue driven by Marygold
UK increased by $0.2 million or 32% driven by having a full year of revenue in fiscal 2025 from Step-By-Step which was acquired in April
2024. Marygold UK released a narrower version of the mobile Fintech app in the UK