Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 32

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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31, 2023. The decrease in average AUM in the quarter ended December 31, 2024
was due to commodity price fluctuations and the high-interest rate environment, along with geopolitical and economic uncertainty.
The decrease in food products revenue was due to was due to a temporary cancellation of certain product categories sold to national
grocery chains pending price increase acceptance.

Gross
profit decreased by $0.4 million or 7%, driven by the reduced revenue from the lower average AUM as described above.

Operating
expenses increased by $0.4 million or 5% driven by an increase in fund operations due to an increase in sub-advisory and license fees.

Loss
from operations increased by $0.8 million or 83% driven by reduced profits of $0.4 million from the U.S. fund management segment and
$0.1 million from food products as described above and increased losses of $0.2 million from financial services due to the increased
build out of our Fintech app.

Total
other income (expense), net was relatively flat for the quarter ended December 31, 2024 compared to the prior year quarter; however,
the interest and dividend income  increased by $0.9 million and  other expense, net  increased by $0.6 million.
Included in the interest and dividend income for the quarter ended December 31, 2024 was $1.0 million of dividend income from related
party investments and offset by $1.0 million in unrealized losses on related party investments included in other expense, net
as a result of the reduction in the net asset values of the related party investments from the payment of the dividends.

Benefit
from income taxes increased by $0.3 million or 165% driven by the increase in the loss before income taxes for the reasons explained above.

Net
loss increased by $0.6 million or 48% and was driven by decreased profits from our fund management business due to lower average AUM
and increased losses from our financial services business as we continue to develop our Fintech app.

22

SEGMENT
RESULTS OF OPERATIONS

    Three Months Ended December 31,  
    Percentage 
  
    (in thousands, except percentages) 
    2024  
    2023  
    Change 
  
    Revenue 

    Fund management - related party 
    $4,685  
    $4,997  
     -6%