Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 74

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 decreased
by $0.3 million or 7%. The decrease in average AUM in the quarter ended March 31, 2025 was due to commodity price fluctuations, along with the impact of geopolitical and economic uncertainty.

Operating
income remained flat at $0.8 million for the quarters ended March 31, 2025 and 2024 driven by variable operating expenses that are
tied to lower average AUM for the quarter as well as lower license fees and general and administrative expenses.

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 decreased
by $0.3 million or 18% for the quarter ended March 31, 2025 as compared to 2024, the result of decreases at both our printing
business and our bakery business. The decrease of $0.1 million or 16% in 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