Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 100

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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 in revenue from our beauty products segment was driven by the efforts to control the discounted price
of products sold online by authorized resellers.

Gross profit decreased by $1.1 million or 6% driven by the decrease in revenue from our U.S. fund management business as described above.

Operating expenses increased by $0.9 million or 4% as a result of the following.
General and administrative expenses increased by $0.4 million or 6% driven by increased costs associated with our Fintech app development
including additional software and security infrastructure in the UK. Salaries and compensation increased by $0.4 million or 5% compared
to the nine months ended March 31, 2024 driven by increased stock-based compensation expenses. Fund operations increased by $0.4 million
or 10% driven by increased costs associated with managing more funds. Partially offsetting these increased operating expenses was a decrease
in marketing and advertising of $0.3 million or 13% as a result of prior year increased spending for new products at Original Sprout as
well as from the Fintech app and new fund launches.

Total other income, net decreased by $0.6 million
or 126% for the nine months ended March 31, 2025 compared to the same period in the prior year; however, the interest and dividend income
line item increased by $0.7 million and other income (expense), net decreased by $0.6 million. Included in the interest and dividend income
for the nine months ended March 31, 2025 was $1.1 million of dividend income from related party investments offset by $0.5
million in unrealized losses on related party investments included in other expense, net as a result of the reduction in the net asset
values of the related party investments from the payment of the dividends. Interest expense increased by $0.7 million as a result of our recent note financing.

Benefit
from income taxes increased by $0.4 million or 52% driven by the increase in the loss before income taxes for the reasons explained
above.

Net
loss increased by $2.1 million or 96% and was driven by decreased profits from our fund management business due to lower average AUM
and increased interest expense as a result of the borrowing under our recent note financing. 

24

Reportable Segments

Nine Months Ended March 31, 2025 Compared with Nine Months Ended
March 31,