Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 35

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 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

Our
Financial Services segment is comprised of Marygold US and Marygold UK, which are distinct operating entities with differing revenue
streams.

Marygold
US has developed and launched a mobile banking fintech app which is expected to earn revenue in the form of management fees based
on a percentage of the amount of account holder funds are invested in various curated ETF portfolios offered on the app
(“Money Pools”), and from transaction fees when account holders use our debit card. The app was soft-launched in June
2023 as a proof of concept. Since that time, the app has earned only de minimis revenues. Operating costs are comprised of
development team salaries and expenses, fees paid to third party vendors, fees paid to our sponsoring bank, marketing costs and
staff salaries. For the quarter ended December 31, 2024, Marygold US incurred an operating loss of $1.5 million as compared with an
operating loss of $1.4 million for the quarter ended December 31, 2023. These losses and negative cash flows are expected to
continue for the coming fiscal year.

Marygold
UK is a U.K. holding company  which operates through its two wholly-owned subsidiaries Marygold & Co. Limited f/k/a
Tiger Financial and Asset Management Limited and Step By Step Financial Planners, both of whom are registered investment advisors
who earn revenues based on the amount of AUM and from the sale of financial products, including insurance, to customers in the
U.K.

Our
total U.K. Financial Services revenue, derived entirely from Marygold UK, for the quarter ended December 31, 2024,
increased by $0.1 million or 67% to $0.2 million as compared to $0.1 million for the quarter ended December 31, 2023. The increase
was driven by the incremental revenue of $0.1 million from Step-By-Step, which was acquired in April 2024. Operating loss
increased by $0.2 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