Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 37

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 business. Average AUM for the six months ended December 31, 2024 was $3.1 billion
compared to $3.5 billion for the six months ended December 31, 2023, a decrease of $0.4 billion or 11%. The decrease in AUM in the
six months ended December 31, 2024 was due to commodity price fluctuations and the high-interest rate environment, along with
geopolitical and economic uncertainty.

Gross
profit decreased by $0.9 million or 7% for the reasons described above for the reduced revenue plus cost of revenue increased by $0.1
million compared to the six months ended December 31, 2023.

Operating
expenses increased by $1.1 million or 8% as a result of the following. General and administrative expenses increased by $0.4 million
or 8% driven by increased costs associated with our Fintech app development including additional software and security infrastructure
in the UK. Salaries and compensation increased by $0.5 million or 9% compared to the six months ended December 31, 2023 driven by increased
stock-based compensation expenses plus increased compensation at USCF. Fund operations increased by $0.5 million or 21% driven by increased
costs associated with managing more funds. Partially offsetting these increased operating expenses was a decrease in marketing and advertising
of $0.3 million or 17% as a result of prior year increased spending for new products at Original Sprout as well as from the Fintech app
and new fund launches.

Total
other income (expense), net decreased by $0.2 million or 125% for the six months ended December 31, 2024 compared to the same period in
the prior year; however, the interest and dividend income line item increased by $0.9 million and  other expense, net  increased
by $0.7 million. Included in the interest and dividend income for the six months ended December 31, 2024 was $1.1 million of dividend
income from related party investments and offsetting that was $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 $0.5 million or 100% driven by the increase in the loss before