Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 30

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 our printing business was due to the timing of job
completion and invoicing. The decrease of $0.1 million or 9% in our bakery business was due to a temporary cancellation of certain
product categories sold to national grocery chains pending price increase acceptance. The remaining $0.1 million decrease is attributed to negative changes in currency translation for the current quarter
when compared to the prior year comparable quarter.

Despite the decrease in revenue for the quarter ended March 31, 2025, operating income increased by $0.1 million
as compared to the quarter ended March 31, 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.

22

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 decreased by $0.2 million or 25% driven by the discontinuation
of sales to domestic distributors who sold Original Sprout products specifically on Amazon.

Operating
loss decreased by less than $0.1 million or 34% for the quarter ended March 31, 2025 as compared to 2024 as a result of the elimination
of amortization expense associated with the impairment of intangible assets at the end of the prior fiscal year.

Security
Systems - Brigadier

Brigadier earns revenue from two primary sources. The company sells to residential customers alarm monitoring contracts
and installations on behalf of a telecom provider for whom it is a dealer. These contracts result in recurring monthly residuals comprising
approximately 50% of revenues. Remaining revenues are derived from sales and installation of access controls, alarm, video, and fire panel
alarm monitoring hardware to commercial businesses and publicly owned facilities. Revenues from monitoring residual fees remained relatively
static while sales and installations of larger commercial installations increased for the quarter ended March 31, 2025 as compared to
2024. Revenue decreased by less than $0.1 million or 13% and operating income was relatively flat at $0.1 million. The larger commercial
accounts generate more revenue and profits but take longer to complete, thus may produce spikes or declines in revenue and profits for
specific reporting periods. As the residential consumer segment of the industry becomes more complex due to the bundling of services,
including alarm monitoring, offered by larger telecom