Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 40

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 40
---

Systems - Brigadier

Revenues from monitoring residual fees
remained relatively static while sales and installations of larger commercial installations increased for the six months ended December
31, 2024 as compared to 2023. Revenue increased by $0.2 million or 13% and operating income increased by less than $0.1 million or 33%
driven by increased sales to commercial customers. The larger commercial accounts generate more revenue and profit but take longer to
complete, thus may produce spikes or declines in revenue and profits for specific reporting periods. As the residential consumer segment
of the industry becomes more complex due to the bundling of services, including alarm monitoring, offered by larger telecom companies,
we expect to focus even more heavily on the commercial and public facilities customers in the coming years.

U.S.
and U.K. Financial Services – Marygold US and Marygold UK

Marygold US incurred an operating loss
of $3.0 million for both the six months ended December 31, 2024 and 2023. These losses and negative cash flows are expected to continue
for the coming fiscal year.

Our
total Financial Services revenue, derived entirely from Marygold UK, for the six months ended December 31, 2024 increased by
$0.2 million or 65% as compared to the six months ended December 31, 2023. The increase was primarily driven by the incremental revenue
from Step-By-Step, which was acquired in April 2024. Operating loss increased by less than $0.3 million 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 $3.3 million for the current six months as compared to a loss of $3.0 million for the six months ended
December 31, 2023.

27

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 30%, for the six months ended December 31, 2024 as compared to same period in 2023. The