Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 36

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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Revenue
decreased by $0.4 million or 16% driven by the efforts to control the discounted price of products sold online by authorized resellers.
This trend is expected to continue for the remainder of the current fiscal year as Original Sprout reduces the number of authorized Internet
sales channels, recovers control over its price points, and repositions its products for a larger presence on store shelves.

Operating
loss decreased by $0.3 million or 42% for the nine months ended March 31, 2025 as compared to 2024 as a result of reduced marketing costs
and the elimination of amortization charges from intangible assets from the
impairment charge taken in June 2024.

Security
Systems - Brigadier

Revenues
from monitoring residual fees remained relatively static while sales and installations of larger commercial installations increased
for the nine months ended March 31, 2025 as compared to 2024. Revenue increased by $0.1 million or 4% and operating income was
relatively flat at $0.3 million. 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. 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

Marygold
US incurred an operating loss of $4.2 million for both the nine months ended March 31, 2025 and 2024. As the app has earned only de minimis revenues since its launch in June 2023, 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. As such, the losses and negative cash flows from Marygold US are expected to be significantly reduced for the remainder
of this fiscal year.

Our
total Financial Services revenue, derived entirely from Marygold UK, for the nine months ended March 31, 2025 increased by $0.3
million or 67% as compared to the nine months ended March 31, 2024. The increase was driven by the incremental revenue from
Step-By-Step, which was acquired in April 2024. Operating loss increased by $0.4 million