# EDGAR Filing Document

**Accession Number:** 0001005101
**File Stem:** 0001437749-23-003399
**Filing Date:** 2023-2
**Character Count:** 28010
**Document Hash:** 59d30f73e8fc714001e28127c31574a0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-003399.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0001437749-23-003399

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230214

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Marygold Companies, Inc.
- **CENTRAL INDEX KEY:** 0001005101
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **IRS NUMBER:** 954442384
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41318
- **FILM NUMBER:** 23632006

**BUSINESS ADDRESS:**
- **STREET 1:** 120 CALLE IGLESIA, UNIT B
- **CITY:** SAN CLEMENTE
- **STATE:** CA
- **ZIP:** 92672
- **BUSINESS PHONE:** 949-429-5370

**MAIL ADDRESS:**
- **STREET 1:** 120 CALLE IGLESIA, UNIT B
- **CITY:** SAN CLEMENTE
- **STATE:** CA
- **ZIP:** 92672

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CONCIERGE TECHNOLOGIES INC
- **DATE OF NAME CHANGE:** 20020329

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STARFEST INC
- **DATE OF NAME CHANGE:** 20000310

mgld20230213_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM **8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): February 14, 2023

**The Marygold Companies, Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **000-29913** | **90-1133909** |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |

---

---

| | |
|:---|:---|
| **120 Calle Iglesia, **Unit B**, **San Clemente**,**CA** | **92672** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(949)-**429-5370**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| Common Stock, $0.001 par value<br> MGLD | NYSE American LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule l2b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition.**

On February 14, 2023, The Marygold Companies, Inc. issued a press release announcing its financial results for the three and six months ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and in this Item 2.02 have been furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing regardless of any general incorporation language.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits**. |

---

---

| | |
|:---|:---|
| (d)<br> 99.1 | Exhibits.<br> [Earnings Press Release Dated February 14, 2023.](ex_475278.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **THE MARYGOLD COMPANIES, INC.** | **THE MARYGOLD COMPANIES, INC.** |
| Date: February 14, 2023 | By: | */s/ Nicholas Gerber* |
|  |  | Nicholas Gerber |
|  |  | Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**The Marygold Companies Reports Financial Results for 2023 Second Fiscal Quarter**

***-Company Posts Profitable Operating Results, with Strong Balance Sheet-***

***-Enters Beta Testing Phase for New Fintech App,***

***Expected Soft Launch Later this Calendar Year-***

**San Clemente, Calif., February 14, 2023**—The Marygold Companies, Inc. ("TMC," or the "Company") (NYSE American: MGLD), a diversified global holding firm, today reported financial results for the second fiscal quarter and six months ended December 31, 2022.

Net revenue for the second fiscal quarter of 2023 was $8.8 million, versus $9.4 million for the comparable prior year period. Net income for the 2023 second fiscal quarter amounted to $181,794, equal to approximately breakeven per share, compared with $1.0 million, or $0.03 per diluted share, for the same quarter of the prior fiscal year.

For the first half of the current fiscal year, net revenue was $17.7 million, versus $19.2 million a year ago. Net income for the six months ended December 31, 2022 increased to $678,962, equal to $0.02 per diluted share, compared with a net loss of $857,658, or a net loss of $0.02 per share, in the same period a year ago, which included a legal settlement of $2.5 million in last fiscal year's first quarter.

The Company's balance sheet remained strong at December 31, 2022, with no debt. Cash and cash equivalents increased to $14.6 from $12.9 million at June 30, 2022. Total stockholders' equity rose to $29.8 million at December 31, 2022, from $29.0 million at June 30, 2022, Total assets were $35.2 million at the close of the second fiscal quarter of 2023, compared with $35.3 million at June 30, 2022, with the slight decrease principally reflecting currency translation values in the Company's foreign holdings.

"We are pleased to have achieved profitable operations during a period in which continued investments were made in the late development stages of our mobile fintech app at Marygold & Co., and when assets under management (AUM) at our largest subsidiary, USCF Investments, were lower than in the prior year," said David Neibert, Chief Operations Officer of The Marygold Companies. Average AUM at USCF Investments was approximately $3.8 billion in the most recent quarter, compared with $4.2 billion for the end of the comparable period last year.

"Our non-financial operations - Original Sprout, Gourmet Foods and Brigadier Security Systems - felt the pressures of the continued inflationary environment in the quarter, although each was cash flow positive and posted operating income. Initiatives are being implemented to enhance the performance of these business units through changes in product mix and establishing new sales channels," Neibert added.

"All segments of our business are sound and performing on plan, which we view as an outstanding achievement and a testament to our dedicated team in today's challenging economic climate," said Nicholas Gerber, TMC's Chief Executive Officer. "At the same time, we are making great strides completing the development of our mobile fintech app to provide users with a unified platform for spending, saving and investing, while offering detailed transaction reporting coupled with ease of use. We expect to soft launch this exciting product later this calendar year."

**Business Units**

The Company's USCF Investments subsidiary, www.uscfinvestments.com, acquired in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 12 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca.

Gourmet Foods, https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat's Pantry and Ponsonby Pies. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/, is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods.

Brigadier Security Systems, www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada.

Acquired at the end of 2017, San Clemente, Calif.-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a "reef safe" sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas.

Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The company continues in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/.

Marygold & Co. (UK) Limited, formed in the U.K. during August 2021, operates through its recently acquired subsidiary, Tiger Financial & Asset Management Limited ("Tiger"), a U.K. based investment adviser. Tiger's core business is managing clients' financial wealth across a diverse product range, including cash, national savings, individual savings accounts, unit trusts, insurance company products such as investment bonds and other investment vehicles. http://www.tfam.co.uk/

**About The Marygold Companies, Inc.**

The Marygold Companies, Inc., which changed its name from Concierge Technologies, Inc. in March 2022, was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Tiger Financial & Asset Management Limited, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com.

**Forward-Looking Statements**

This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may" "will," "could," "should" "believes," "predicts," "potential," "continue" and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to, a soft launch of the mobile fintech app later this year, involve significant risks and uncertainties that could cause actual results to differ materially from the expected results and, consequently, should not be relied upon as predictions of future events. These forward-looking statements, including the factors disclosed in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 28, 2022, and in the Company's other filings with the Securities and Exchange Commission, are not exclusive. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release*.*

---

| |
|:---|
| **Media and investors, for more Information, contact:** |
| Roger S. Pondel<br> PondelWilkinson Inc.<br> 310-279-5965<br> rpondel@pondel.com<br>**Contact the Company:**<br> David Neibert, Chief Operations Officer<br> 949-429-5370<br> dneibert@themarygoldcompanies.com |

---

------

**THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **June 30, 2022 (1)** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| **CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $14579438 | $12915620 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 1104856 | 959350 |
| &nbsp;&nbsp;&nbsp; Accounts receivable - related parties | 1767220 | 2230874 |
| &nbsp;&nbsp;&nbsp; Inventories | 2583935 | 2200742 |
| &nbsp;&nbsp;&nbsp; Prepaid income tax and tax receivable | 1046909 | 1166318 |
| &nbsp;&nbsp;&nbsp; Investments, at fair value | 4346998 | 5065931 |
| &nbsp;&nbsp;&nbsp; Other current assets | 735834 | 699547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 26165190 | 25238382 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 406642 | 1013279 |
| &nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 1306675 | 1391894 |
| &nbsp;&nbsp;&nbsp; Operating lease right-of-use asset | 1216302 | 1357686 |
| &nbsp;&nbsp;&nbsp; Goodwill | 2307202 | 2307202 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 2509098 | 2708896 |
| &nbsp;&nbsp;&nbsp; Deferred tax assets, net - United States | 753078 | 753078 |
| &nbsp;&nbsp;&nbsp; Other assets, long - term | 552660 | 540160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $35216847 | $35310577 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | $2720350 | $2805790 |
| &nbsp;&nbsp;&nbsp; Expense waivers – related parties | 163576 | 70199 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, current portion | 682484 | 660957 |
| &nbsp;&nbsp;&nbsp; Purchase consideration payable | 604990 | 1237207 |
| &nbsp;&nbsp;&nbsp; Loans - property and equipment, current portion | 33384 | 33496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 4204784 | 4807649 |
| **LONG-TERM LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp; Loans - property and equipment, net of current portion | 427490 | 459178 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities, net of current portion | 569190 | 743923 |
| &nbsp;&nbsp;&nbsp; Deferred tax liabilities, net-foreign | 260553 | 260553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term liabilities | 1257233 | 1463654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 5462017 | 6271303 |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, $0.001 par value; 50,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp; Series B: 49,360 shares issued and outstanding at December 31, 2022 and at June 30, 2022 | 49 | 49 |
| &nbsp;&nbsp;&nbsp; Common stock, $0.001 par value; 900,000,000 shares authorized; 39,383,459 shares issued and outstanding at December 31, 2022 and at June 30, 2022 | 39384 | 39384 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 12329609 | 12313205 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (214600) | (234790) |
| &nbsp;&nbsp;&nbsp; Retained earnings | 17600388 | 16921426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 29754830 | 29039274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $35216847 | $35310577 |

---

(1) Derived from audited financial statements

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2021** | **Six Months Ended December 31, 2022** | **Six Months Ended December 31, 2021** |
| Net revenue |  |  |  |  |
| Fund management - related party | $5266171 | $5701384 | $10685606 | $11358411 |
| Food products | 1932304 | 2108257 | 3869752 | 4468402 |
| Security systems | 665028 | 642623 | 1294860 | 1333253 |
| Beauty products | 784463 | 992852 | 1588541 | 2013924 |
| Financial services | 124282 | - | 257775 | - |
| Net revenue | 8772248 | 9445116 | 17696534 | 19173990 |
| Cost of revenue | 2230954 | 2417798 | 4255969 | 5068538 |
| Gross profit | 6541294 | 7027318 | 13440565 | 14105452 |
| Operating expense |  |  |  |  |
| Salaries and compensation | 2804759 | 2576285 | 5173141 | 4707440 |
| General and administrative expense | 1820469 | 1198209 | 3511867 | 3317711 |
| Fund operations | 1112244 | 1102237 | 2252832 | 2203853 |
| Marketing and advertising | 555939 | 690831 | 1328749 | 1409486 |
| Depreciation and amortization | 147769 | 133191 | 296985 | 287849 |
| Legal settlement | - | - | - | 2500000 |
| Total operating expenses | 6441180 | 5700753 | 12563574 | 14426339 |
| Income (loss) from operations | 100114 | 1326565 | 876991 | (320887) |
| Other income (expense): |  |  |  |  |
| Interest and dividend income | 62630 | 6088 | 115193 | 13484 |
| Interest expense | (3596) | (10085) | (11403) | (20285) |
| Other income (expense) | 129975 | (214981) | 31761 | (206973) |
| Total other income (expense), net | 189009 | (218978) | 135551 | (213774) |
| Income (loss) before income taxes | 289123 | 1107587 | 1012542 | (534661) |
| Provision for income taxes | (107329) | (84252) | (333580) | (322997) |
| Net income (loss) | $181794 | $1023335 | $678962 | $(857658) |
| Weighted average shares of common stock |  |  |  |  |
| Basic | 40370659 | 38473159 | 40370659 | 38473159 |
| Diluted | 40370659 | 38473159 | 40383722 | 38473159 |
| Net income (loss) per common share |  |  |  |  |
| Basic and diluted | $0.00 | $0.03 | $0.02 | $(0.02) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

**(UNAUDITED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2021** | **Six Months Ended December 31, 2022** | **Six Months Ended December 31, 2021** |
| Net income (loss) | $181794 | $1023335 | $678962 | $(857658) |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation gain (loss) | 333949 | (14442) | 20190 | (100610) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income (loss) | $515743 | $1008893 | $699152 | $(958268) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

------

**THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**FOR THE THREE AND SIX MONTH PERIODS ENDED DECEMBER 31, 2022 AND DECEMBER 31, 2021**

**(UNAUDITED)**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Preferred Stock (Series B)** | **Preferred Stock (Series B)** | **Common Stock** | **Common Stock** | | | | |
| **Period Ending December 31, 2022**<br>| **Number of Shares** | **Amount** | **Number of Shares** | **Par Value** | <br>**Additional Paid - in Capital** | <br>**Accumulated Other Comprehensive Income (Loss)** | <br>**Retained Earnings** | <br>**Total Stockholders' Equity** |
| Balance at July 1, 2022 | 49360 | $49 | 39383459 | $39384 | $12313205 | $(234790) | $16921426 | $29039274 |
| Loss on currency translation | - | - | - | - | - | (313759) | - | (313759) |
| Stock-based compensation | - | - | - | - | 6700 | - | - | 6700 |
| Net income | - | - | - | - | - | - | 497168 | 497168 |
| Balance at September 30, 2022 | 49360 | $49 | 39383459 | $39384 | $12319905 | $(548549) | $17418594 | $29229383 |
| Gain on currency translation | - | - | - | - | - | 333949 | - | 333949 |
| Stock-based compensation | - | - | - | - | 9704 | - | - | 9704 |
| Net income | - | - | - | - | - | - | 181794 | 181794 |
| Balance at December 31, 2022 | 49360 | $49 | 39383459 | $39384 | $12329609 | $(214600) | $17600388 | $29754830 |

---

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Preferred Stock (Series B)** | **Preferred Stock (Series B)** | **Common Stock** | **Common Stock** | | | | |
| **Period Ending December 31, 2021**<br>| **Number of Shares** | **Amount** | **Number of Shares** | **Par Value** | <br>**Additional Paid - in Capital** | <br>**Accumulated Other Comprehensive Income (Loss)** | <br>**Retained Earnings** | <br>**Total Stockholders' Equity** |
| Balance at July 1, 2021 | 49360 | $49 | 37485959 | $37486 | $9330843 | $142581 | $15775705 | $25286664 |
| Loss on currency translation | - | - | - | - | - | (86168) | - | (86168) |
| Net loss | - | - | - | - | - | - | (1880993) | (1880993) |
| Balance at September 30, 2021 | 49360 | $49 | 37485959 | $37486 | $9330843 | $56413 | $13894712 | $23319503 |
| Loss on currency translation | - | - | - | - | - | (14442) | - | (14442) |
| Net income | - | - | - | - | - | - | 1023335 | 1023335 |
| Balance at December 31, 2021 | 49360 | $49 | 37485959 | $37486 | $9330843 | $41971 | $14918047 | $24328396 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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**THE MARYGOLD COMPANIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

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| | | |
|:---|:---|:---|
|  | **For the Six Month Period Ended** | **For the Six Month Period Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $678962 | $(857658) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 296985 | 287849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bad debt expense | 582 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment to inventory value | 288 | 3478 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 16404 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain on investments | (11020) | (29251) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of equipment | - | 37189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use asset - non-cash lease cost | 147363 | 337850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | (199029) | (118395) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - related party | 463654 | 256020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid income taxes and tax receivable | 121124 | (324699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (360765) | (196514) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | (33427) | (74549) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | (43698) | (486835) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | (153206) | (341411) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense waivers - related party | 93378 | 59064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 1017595 | (1447862) |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property, plant and equipment | (34777) | (3988) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase consideration payable | (633893) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of investments | 1000000 | 506492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of investments | (266680) | (1533385) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities | 64650 | (1030881) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of property and equipment loans | (7099) | (7208) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal payments of finance lease liability | (5573) | (1753) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance costs pursuant to planned stock issuance | - | (249720) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (12672) | (258681) |
| Effect of exchange rate change on cash and cash equivalents | (12392) | (50404) |
| **NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH** | 1057181 | (2787828) |
| **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE** | 13928899 | 16086944 |
| **CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE** | $14986080 | $13299116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 14579438 | 13285452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 406642 | 13664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash, cash equivalents and restricted cash shown in statement of cash flows | $14986080 | $13299116 |
| **SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid | $7855 | $8046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid, net | $164396 | $632961 |
| **NON CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of operating right-of-use assets through operating lease liability | $103609 | 995805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of equipment through finance lease liability | $- | $150625 |

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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements