Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 78

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 78
---
 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; however, the interest and dividend income
line item increased by $0.7 million and other income (expense), net decreased by $0.6 million. Included in the interest and dividend income
for the nine months ended March 31, 2025 was $1.1 million of dividend income from related party investments offset by $0.5
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. Interest expense increased by $0.7 million as a result of our recent note financing.

Benefit
from income taxes increased by $0.4 million or 52% driven by the increase in the loss before income taxes for the reasons explained
above.

Net
loss increased by $2.1 million or 96% and was driven by decreased profits from our fund management business due to lower average AUM
and increased interest expense as a result of the borrowing under our recent note financing. 

24

Reportable Segments

Nine Months Ended March 31, 2025 Compared with Nine Months Ended
March 31, 2024

SEGMENT
RESULTS OF OPERATIONS

    Nine
    Months Ended March 31,

    Percentage

    (in
    thousands, except percentages)
     
    2025

    2024

    Change

    Revenue