Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 109

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 109
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 sold to national
grocery chains during fiscal 2025.

Operating
income decreased by $0.2 million or 55% which was driven by a non-recurring cost of goods sold adjustment coupled with a depreciation charge taken for its
solar electricity system and partially offset by increased profits from the sale of higher margin products at our bakery business.

Beauty
Products – Original Sprout

Beauty
products revenue decreased by $0.3 million or 10% driven by the efforts to control the discounted price of products sold online by unauthorized
resellers. For the past year Original Sprout has been reducing the number of unauthorized Internet sales channels, recovering control over
its price points, and repositioning its products for a larger presence on store shelves.

Operating loss decreased
by $1.7 million or 82% driven by a $1.4 million impairment charge taken in fiscal 2024 relating to the goodwill and other intangible
assets in our beauty products unit as a result of increased losses resulting from pandemic-related changes in its distribution channels
and increased costs from the introduction of new product lines. After the impairment charge taken in fiscal 2024, Original Sprout no
longer has any amortization charges from the intangible assets that were written down. Original Sprout also reduced its marketing expense
by $0.3 million from fiscal 2024 to fiscal 2025.

Security
Systems - Brigadier

Revenue
decreased by $0.2 million or 7% and operating income decreased by $0.1 million or 23% driven by market timing and weather patterns. Revenues
from monitoring residual fees remained relatively static while sales and installations of larger commercial installations decreased for
fiscal 2025 as compared to 2024. 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. Brigadier was sold to a related party on July
1, 2025 (see “Certain Recent Developments – Sale of Brigadier” and Note 16, Subsequent Events to the audited consolidated
financial statements included in this Form 10-K).

26

U.S.
and U.K. Financial Services – Marygold US and Marygold UK

Marygold US incurred an operating loss of $4.7 million
in fiscal 2025 compared to an operating loss of $5.7 million in fiscal 2024. Since the Marygold US app earned only de minimis