Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 79

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 the decrease in average AUM as described above and increased fund operations
expenses of $0.4 million as a result of increased sub-advisory and license fees, fund accounting and administration costs connected
to new funds.

Food
Products - Gourmet Foods

Total
food products revenue decreased by $0.5 million or 9% for the nine months ended March 31, 2025 as compared to 2024, which was the net result of a decrease at our bakery business of $0.5 million. The decrease was due to a temporary cancellation
of certain product categories sold to national grocery chains that commenced in the current fiscal year.

Operating
income decreased by $0.1 million or 44% for the nine months ended March 31, 2025 compared to the prior year period which was driven by
a non-recurring cost of goods sold adjustment coupled with a depreciation charge taken for its solar electricity system and partially
offset by increased profits from the sale of higher margin products at our bakery business.

25

Beauty
Products – Original Sprout

Revenue
decreased by $0.4 million or 16% driven by the efforts to control the discounted price of products sold online by authorized resellers.
This trend is expected to continue for the remainder of the current fiscal year as Original Sprout reduces the number of authorized Internet
sales channels, recovers control over its price points, and repositions its products for a larger presence on store shelves.

Operating
loss decreased by $0.3 million or 42% for the nine months ended March 31, 2025 as compared to 2024 as a result of reduced marketing costs
and the elimination of amortization charges from intangible assets from the
impairment charge taken in June 2024.

Security
Systems - Brigadier

Revenues
from monitoring residual fees remained relatively static while sales and installations of larger commercial installations increased
for the nine months ended March 31, 2025 as compared to 2024. Revenue increased by $0.1 million or 4% and operating income was
relatively flat at $0.3 million. The larger commercial accounts generate more revenue and profit 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