Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 101

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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     182  
     165%
  
    Net loss 
    $(1,747) 
    $(1,183) 
     48%

Three
Months Ended December 31, 2024 Compared with Three Months Ended December 31, 2023

Revenue
decreased by $0.5 million or 5% for the quarter ended December 31, 2024 as a result of lower revenue in our fund management segment
of $0.3 million and in our food products segment of $0.2 million. The decrease in fund management revenue was driven by a decrease
in average Assets Under Management (“AUM”). Average AUM for the quarter ended December 31, 2024 was $3.1 billion
compared to $3.5 billion for the quarter ended December 31, 2023. The decrease in average AUM in the quarter ended December 31, 2024
was due to commodity price fluctuations and the high-interest rate environment, along with geopolitical and economic uncertainty.
The decrease in food products revenue was due to was due to a temporary cancellation of certain product categories sold to national
grocery chains pending price increase acceptance.

Gross
profit decreased by $0.4 million or 7%, driven by the reduced revenue from the lower average AUM as described above.

Operating
expenses increased by $0.4 million or 5% driven by an increase in fund operations due to an increase in sub-advisory and license fees.

Loss
from operations increased by $0.8 million or 83% driven by reduced profits of $0.4 million from the U.S. fund management segment and
$0.1 million from food products as described above and increased losses of $0.2 million from financial services due to the increased
build out of our Fintech app.

Total
other income (expense), net was relatively flat for the quarter ended December 31, 2024 compared to the prior year quarter; however,
the interest and dividend income  increased by $0.9 million and  other expense, net  increased by $0.6 million.
Included in the interest and dividend income for the quarter ended December 31, 2024 was $1.0 million of dividend income from related
party investments and offset by $1.0 million in unrealized losses on related party investments included in other expense, net
as a result of the reduction in the net asset values of the related party investments from the