Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 80

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 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 due to increased costs incurred in
connection with the adoption and implementation of the Marygold mobile Fintech app for the U.K. market. The consolidated operating
loss for financial services was $4.8 million for the current nine months as compared to a loss of $4.4 million for the nine months
ended March 31, 2024.

Corporate
Headquarters

The
Marygold Companies as a holding company has no significant revenue, however, it does have operating expenses such as, but not
limited to, salaries, audit and legal fees, NYSE American listing fees and expenses, expenses related to compliance with its SEC
periodic reporting requirements, insurance, interest expense, and investor relations which produce operating losses. Operating loss
for the corporate headquarters increased by $0.6 million, or 22%, for the nine months ended March 31, 2025 as compared to same
period in 2024. The increased loss was driven by higher stock-based compensation expenses from additional outstanding equity grants
during the nine months ended March 31, 2025 as well as higher general and administrative expenses including legal and accounting fees.

26

Liquidity
and Capital Resources

We
are a holding company that conducts our individual diversified business operations through our wholly-owned subsidiaries. At the
holding-company level, our liquidity needs relate to operational expenses, the funding of additional business acquisitions and new
investment opportunities including the investment by