Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 269

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1B
Chunk 269
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    Total operating loss 
    $(6,690) 
    $(6,256) 
     7%

Reportable
Segments

Fiscal
Year 2025 Compared with Fiscal Year 2024

U.S.
Fund Management - USCF Investments

Revenue
decreased by $1.8 million or 10% driven by reduced average Assets Under Management (“AUM”) in our fund management
business. Average AUM for fiscal 2025 was $2.9 billion compared to $3.3 billion for fiscal 2024, a decrease of $0.4 billion or
12%. The decrease in average AUM in fiscal 2025 was due to commodity price fluctuations, energy demand as well as geopolitical and
economic uncertainty.

Operating
income decreased by $1.5 million or 31% driven by the decrease in average AUM as described above and partially offset by decreased
operating expenses of $0.3 million or 2% as a result of lower license fees, and variable fund accounting and administration costs due
to lower AUM for funds overall. 

Food
Products - Gourmet Foods

Revenue
decreased from $7.3 million in fiscal 2024 to $6.7 million in fiscal 2025 which was a decrease of $0.6 million or 8%. The decrease
in revenue was in our bakery business and was due to a temporary cancellation of certain product categories sold to national
grocery chains during fiscal 2025.

Operating
income decreased by $0.2 million or 55% 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.

Beauty
Products – Original Sprout

Beauty
products revenue decreased by $0.3 million or 10% driven by the efforts to control the discounted price of products sold online by unauthorized
resellers. For the past year Original Sprout has been reducing the number of unauthorized Internet sales channels, recovering control over
its price points, and repositioning its products for a larger presence on store shelves.

Operating loss decreased
by $1.7 million or 82% driven by a $1.4 million impairment charge taken in fiscal 2024 relating to the goodwill and other intangible
assets in our beauty products unit as a result of increased losses resulting from pandemic-related changes in its distribution channels
and increased costs from