Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 33

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 nine months ended March 31, 2025, driven by a decrease in revenue from our U.S. fund management segment of $1.1 million
(or 8%), a decrease in revenue from our food products segment of $0.5 million (or 9%), and a decrease in revenue from our beauty products
segment of $0.4 million (or 16%). The decrease in revenue from our U.S. fund management business arose from a decrease in average AUM
for the period. Average AUM in our U.S. fund management business for the
nine months ended March 31, 2025, was $3.0 billion compared to $3.3 billion for the nine months ended March 31, 2024, a decrease of
$0.3 billion or 9%. The decrease in AUM in the nine months ended March 31, 2025, was due to commodity price fluctuations, along with geopolitical and economic uncertainty. The decrease in revenue from the food products
segment was driven by a temporary cancellation of certain product categories at our bakery business sold to national grocery chains that
commenced in the current fiscal year. The decrease in revenue from our beauty products segment was driven by the efforts to control the discounted price
of products sold online by authorized resellers.

Gross profit decreased by $1.1 million or 6% driven by the decrease in revenue from our U.S. fund management business as described above.

Operating expenses increased by $0.9 million or 4% as a result of the following.
General and administrative expenses increased by $0.4 million or 6% driven by increased costs associated with our Fintech app development
including additional software and security infrastructure in the UK. Salaries and compensation increased by $0.4 million or 5% compared
to the nine months ended March 31, 2024 driven by increased stock-based compensation expenses. Fund operations increased by $0.4 million
or 10% 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 13% 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, net decreased by $0.6 million
or 126% for the nine months ended March 31, 2025 compared to the same period in the prior year