Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 31

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 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

Our
Financial Services segment is comprised of Marygold US and Marygold UK, which are distinct operating entities with differing revenue
streams.

Marygold
US developed and launched a mobile banking fintech app which earned revenue in the form of management fees based on a percentage of
the amount of account holder funds invested in various curated ETF portfolios offered on the app (“Money Pools”), and
from transaction fees when account holders used a debit card. The app was soft-launched in June 2023 as a proof of concept. Since
that time, the app has earned only de minimis revenues. As a result, 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. Operating costs are comprised of development team salaries and expenses,
fees paid to third party vendors, fees paid to our sponsoring bank, marketing costs and staff salaries. For the quarter ended March
31, 2025, Marygold US incurred an operating loss of $1.3 million as compared with an operating loss of $1.4 million for the quarter
ended March 31, 2024. As a result of our decision to pause the offering and operating the
app in the US, the losses and negative cash flows from Marygold US are expected to be significantly reduced for the remainder of this
fiscal year.

Marygold
UK is a U.K. holding company which operates through its two wholly-owned subsidiaries Marygold & Co. Limited f/k/a Tiger Financial
and Asset Management Limited and Step By Step Financial Planners, both of whom are registered investment advisors who earn revenues based
on the amount of AUM and from the sale of financial products, including insurance, to customers in the U.K.

Our
total U.K. Financial Services revenue, derived entirely from Marygold UK, for the quarter ended March 31, 2025, increased by $0.1
million or 70% to $0.2 million as compared to $0.1 million for the quarter ended March 31, 2024. The increase was driven by the
incremental revenue of $0.1 million from Step-By-Step, which was acquired in April 2024. Operating loss increased by $0.2 million
due to increased costs incurred