Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 77

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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-8%
  
    Gross profit 
     16,982  
     18,122  
     -6%
  
    Operating expenses 
     22,482  
     21,626  
     4%
  
    Loss from operations 
     (5,500) 
     (3,504) 
     57%
  
    Other (expense) income,
    net 
     (117) 
     452  
     -126%
  
    Loss before income taxes 
     (5,617) 
     (3,052) 
     84%
  
    Benefit
    from income taxes 
     1,273  
     840  
     52%
  
    Net loss 
    $(4,344) 
    $(2,212) 
     96%

Nine
Months Ended March 31, 2025 Compared with Nine Months Ended March 31, 2024

Revenue
decreased by $1.6 million or 7% for the nine months ended March 31, 2025, driven by a decrease in revenue from our U.S. fund management segment of $1.1 million
(or 8%), a decrease in revenue from our food products segment of $0.5 million (or 9%), and a decrease in revenue from our beauty products
segment of $0.4 million (or 16%). The decrease in revenue from our U.S. fund management business arose from a decrease in average AUM
for the period. Average AUM in our U.S. fund management business for the
nine months ended March 31, 2025, was $3.0 billion compared to $3.3 billion for the nine months ended March 31, 2024, a decrease of
$0.3 billion or 9%. The decrease in AUM in the nine months ended March 31, 2025, was due to commodity price fluctuations, along with geopolitical and economic uncertainty. The decrease in revenue from the food products
segment was driven by a temporary cancellation of certain product categories at our bakery business sold to national grocery chains that
commenced in the current fiscal year. The decrease in revenue from our beauty products segment was driven by the efforts to control the discounted price
of products sold online by authorized resellers.

Gross profit decreased by $1.1 million or 6% driven by the decrease in revenue from our U.S. fund