Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 104

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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2023 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 recurring alarm monitoring fees charged to residential customers, and from hardware sales and installations of access
controls for commercial customers. Revenues from monitoring residual fees remained relatively static while sales and installations of
larger commercial installations increased for the quarter ended December 31, 2024 as compared to 2023. Revenue increased but was offset by an increase in cost of goods sold, producing
a relatively flat operating income. 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 companies, we expect to focus even more heavily on the
commercial and public facilities customers in the coming years.

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

Our
Financial Services segment is comprised of Marygold US and Marygold UK, which are distinct operating entities with differing revenue
streams.

Marygold
US has developed and launched a mobile banking fintech app which is expected to earn revenue in the form of management fees based
on a percentage of the amount of account holder funds are invested in various curated ETF portfolios offered on the app
(“Money Pools”), and from transaction fees when account holders use our debit card. The app was soft-launched in June
2023 as a proof of concept. Since that time, the app has earned only de minimis revenues. Operating costs are comprised of
development team salaries and expenses, fees paid to third party vendors, fees paid to our sponsoring bank, marketing costs and
staff salaries. For the quarter ended December 31, 2024, Marygold US incurred an operating loss of $1.5 million as compared with an
operating loss of $1.4 million for the quarter ended December 31, 2023. These losses and negative cash flows are expected to
continue for the coming fiscal year.

Marygold
UK is a U.K. holding company  which operates through its two wholly-owned subsidiaries Marygold & Co. Limited f/k/a
Tiger Financial and Asset Management Limited and Step By Step Financial Planners, both of whom are registered investment advisors
who earn revenues based on