Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 39

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 a result of lower average
AUM for the current six months when compared to the six months ended December 31, 2023, revenue decreased by $0.8 million or 8%. The
decrease in average AUM in the six months ended December 31, 2024 was due to commodity price fluctuations and the high-interest rate
environment, along with the impact of geopolitical and economic uncertainty.

Operating
income decreased by $1.2 million or 40% driven by the decrease in average AUM as described above and increased fund operations
expenses of $0.5 million or 21% as a result of increased sub-advisory and license fees, fund accounting and administration costs
connected to new funds.

Food
Products - Gourmet Foods

Total food products revenue decreased
by $0.1 million or 4% for the six months ended December 31, 2024 as compared to 2023, which was the net result of an increase at our
printing business of $0.1 million and a decrease at our bakery business of $0.3 million. The increase of $0.1 million or 9% in our printing
business was due to the timing of job completion and invoicing as opposed to changes in the business climate. The decrease of $0.3 million
or 12% at our bakery business was due to a temporary cancellation of certain product categories sold to national grocery chains that
commenced in the current fiscal year.

Operating
income decreased by $0.2 million or 77% for the six months ended December 31, 2024 compared to the prior year period 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.

26

Beauty
Products – Original Sprout

Revenue decreased by $0.2 million or
12% driven by the efforts to control the discounted price of products sold online by authorized resellers. This trend is expected to
continue for the remainder of the current fiscal year as Original Sprout reduces the number of authorized Internet sales channels and
repositions its products for a larger presence on store shelves.

Operating
loss decreased by $0.2 million or 46% for the six months ended December 31, 2024 as compared to 2023 as a result of reduced marketing
costs and a nominal price increase to domestic distributors.

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