Company: MGLD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001493152-25-021259
Chunk: 73

Company: Marygold Companies, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 73
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 ETP that it manages. The management
fees are determined on the basis of a contractual basis point management fee multiplied by the average AUM over the given period. Average
AUM for the quarter ended September 30, 2025 was $2.9 billion compared to $3.1 billion for the quarter ended September 30, 2024. As a
result of lower average AUM for the current quarter when compared to the quarter ended September 30, 2024, revenue decreased by $0.3
million or 6%. The decrease in average AUM in the quarter ended September 30, 2025 was due to commodity price fluctuations, along with
the impact of geopolitical and economic uncertainty.

Operating
income decreased to $0.4 million from $1.0 million for the quarter ended September 30, 2025 compared to the same quarter in 2024 driven
by lower revenue and increases in sub-advisor fees (related to growth in newer funds) and new fund development costs, partially offset
by variable operating expenses that are tied to lower average AUM from other funds.

Food
Products - Gourmet Foods

Gourmet
Foods has two distinct operating divisions: 1) a commercial-scale bakery producing iconic Kiwi pies and sausage rolls and 2) a
digital printing business (Printstock Products Limited) which prints specialty food wrappers. Total food products revenue was
basically flat at $1.8 million for the quarter ended September 30, 2025 as compared to 2024. 

Operating income increased by $0.1 million as compared to the quarter
ended September 30, 2024. The increase in operating income is due to a focus on the sale of higher margin products coupled with a decrease
in selling expenses at Gourmet Foods bakery unit coupled with an increase in production at their Printstock Products printing subsidiary.

21

Beauty
Products – Original Sprout

Original
Sprout derives its revenues from the sale of proprietary hair and skin care products marketed to domestic and international
distributors, grocery stores, hair salons and direct-to-consumers via online platforms. Revenue increased by $0.1 million or 12%
driven by improved performance by its distribution channels.

Operating
income increased to $0.1 million for the quarter ended September 30, 2025, as compared to an operating loss $0.2 million for the
quarter ended September 30, 2024, as a result