Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 37

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 due to increased costs incurred in
connection with the adoption and implementation of the Marygold mobile Fintech app for the U.K. market. The consolidated operating
loss for financial services was $4.8 million for the current nine months as compared to a loss of $4.4 million for the nine months
ended March 31, 2024.

Corporate
Headquarters

The
Marygold Companies as a holding company has no significant revenue, however, it does have operating expenses such as, but not
limited to, salaries, audit and legal fees, NYSE American listing fees and expenses, expenses related to compliance with its SEC
periodic reporting requirements, insurance, interest expense, and investor relations which produce operating losses. Operating loss
for the corporate headquarters increased by $0.6 million, or 22%, for the nine months ended March 31, 2025 as compared to same
period in 2024. The increased loss was driven by higher stock-based compensation expenses from additional outstanding equity grants
during the nine months ended March 31, 2025 as well as higher general and administrative expenses including legal and accounting fees.

26

Liquidity
and Capital Resources

We
are a holding company that conducts our individual diversified business operations through our wholly-owned subsidiaries. At the
holding-company level, our liquidity needs relate to operational expenses, the funding of additional business acquisitions and new
investment opportunities including the investment by our fund management business in the development of new exchange traded fund or products. Our operating subsidiaries’ principal liquidity requirements arise from cash used in operating
activities, debt service, and capital expenditures, including purchases of equipment and services, operating costs and expenses, and
income taxes. Cash is managed at the holding company and the subsidiary level. There are generally no legal limitations or
constraints on the movement of funds between the entities, however there are potential tax consequences for funds moved from foreign
subsidiaries to the parent company. Additionally, our registered investment advisor subsidiaries are required to maintain certain
minimum capital requirements.

As
of March 31, 2025, we had $4.3 million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June
30, 2024, a decrease of $1.1 million or 21%. Our cash used in operating activities for the nine months ended March 31, 2025 was $2.8
million. For the nine months ended March 31, 2025, the