Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 404

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 2
Chunk 404
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-186%
  
    Loss before income taxes 
     (7,382) 
     (5,448) 
     35%
  
    Benefit from income taxes 
     1,562  
     1,379  
     13%
  
    Net loss 
    $(5,820) 
    $(4,069) 
     43%

Fiscal
Year 2025 Compared with Fiscal Year 2024

Revenue
decreased by $2.7 million or 8% for fiscal 2025 driven by reduced revenue of $1.8 million at our fund management segment, $0.6
million at our food products segment and $0.3 million at our beauty products segment. Average Assets Under Management
(“AUM”) in our fund management business for fiscal 2025 was $2.9 billion compared to $3.3 billion for fiscal 2024. The
reduction in AUM in fiscal 2025 was due to commodity price fluctuations, energy demand as well as geopolitical and economic
uncertainty. The decreased revenue in food products was driven by changing our product mix and refocusing production capacity to
higher profit margin customers. The decreased revenue in beauty products was driven by the efforts to control the discounted price
of products sold online by unauthorized resellers.

Gross
profit decreased by $2.2 million or 9% for the reasons described above for the reduced revenue as the gross profit margin remained consistent from fiscal 2024 to fiscal 2025.

Operating expenses decreased by $1.8 million or 6% as a result of the following. During fiscal 2024, we recorded
a $1.4 million impairment charge 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.
Our marketing expenses decreased by $0.7 million during fiscal 2025 by putting our US fintech app on pause and reducing the marketing
costs at our beauty products segment. Partially offsetting the decreased operating expenses were an increase in stock-based compensation
expenses of $0.4 million.

Other
(expense) income, net went from a $0.8 million of other income in fiscal year 2024 to a $0.7 million other expense in fiscal year 2025.
The $1.5 million or 186% change was driven by