Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 28

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 in average AUM in the quarter ended March 31, 2025 was
due to commodity price fluctuations, along with geopolitical and economic uncertainty. The decrease in food products revenue was due
to a temporary cancellation of certain product categories sold to national grocery chains pending price increase
acceptance as well as the timing of job completions. The decrease in beauty products revenue was driven by the discontinuation of
sales to domestic distributors who sold our products specifically on Amazon.

Gross
profit decreased by $0.3 million or 5%, driven by the reduced revenue from the lower average AUM as described above.

Operating
expenses decreased by $0.3 million or 4% driven by variable operating expenses tied to AUM were lower for the quarter as well as
lower license fees and general and administrative expenses.

Loss
from operations was relatively flat at $1.5 million compared to the prior year quarter as a result of the decrease in gross profit
that was offset by the decrease in operating expenses as described above.

Total
other income, net decreased by $0.4 million or 68% for the quarter ended March 31, 2025 compared to the prior year quarter driven by increased interest expense as a result of the borrowing under our recent note financing.

Net
loss increased by $0.5 million or 91% and was driven by increased interest expense as a result of the borrowing under our recent
note financing.

21

Reportable Segments

Quarter Ended March 31, 2025, Compared with
Quarter Ended March 31, 2024

SEGMENT
RESULTS OF OPERATIONS

    Three
    Months Ended March 31,  
    Percentage 
  
    (in thousands, except percentages) 
    2025  
    2024  
    Change 
  
    Revenue 

    Fund management - related party 
    $4,093  
    $4,406  
     -7%
  
    Food products 
     1,505  
     1,836  
     -18%
  
    Beauty products 
     641  
     858  
     -25%
  
    Security systems 
     568  
     650  
     -13%
  
    Financial services 
     220  
     130  
     69%
  
    Total
    revenue 
    $7,027  
    $7,880  
     -11%

    Operating