Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 94

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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1,504) 
     (1,471) 
     2%
  
    Other income, net 
     185  
     587  
     -68%
  
    Loss before income taxes 
     (1,319) 
     (884) 
     49%
  
    Benefit
    from income taxes 
     307  
     355  
     -14%
  
    Net loss 
    $(1,012) 
    $(529) 
     91%

Revenue
decreased by $0.9 million or 11% for the quarter ended March 31, 2025 as a result of a decrease in revenue from our U.S. fund
management segment of $0.3 million (or 7%), a decrease in revenue from our food products segment of $0.3 million (or 18%), and a
decrease in our beauty products segment of $0.2 million (or 25%). The decrease in U.S. fund management revenue was driven by a
decrease in average Assets Under Management (“AUM”). Average AUM for the quarter ended March 31, 2025 was $2.6 billion
compared to $3.0 billion for the quarter ended March 31, 2024. The decrease in average AUM in the quarter ended March 31, 2025 was
due to commodity price fluctuations, along with geopolitical and economic uncertainty. The decrease in food products revenue was due
to a temporary cancellation of certain product categories sold to national grocery chains pending price increase
acceptance as well as the timing of job completions. The decrease in beauty products revenue was driven by the discontinuation of
sales to domestic distributors who sold our products specifically on Amazon.

Gross
profit decreased by $0.3 million or 5%, driven by the reduced revenue from the lower average AUM as described above.

Operating
expenses decreased by $0.3 million or 4% driven by variable operating expenses tied to AUM were lower for the quarter as well as
lower license fees and general and administrative expenses.

Loss
from operations was relatively flat at $1.5 million compared to the prior year quarter as a result of the decrease in gross profit
that was offset by the decrease in operating expenses as described above.

Total
other income, net decreased by $0.4 million or 68% for the quarter ended March 31, 2025 compared to the prior year