Marygold Companies, Inc. (NYSE American: MGLD) has announced its financial results for the fiscal year and fourth quarter ending June 30, 2024. For the fiscal year 2024, the Company reported revenue of $32.8 million, down from $34.9 million in 2023. The Company recorded a net loss of $4.1 million, or $0.10 per share, compared to a net income of $1.2 million, or $0.03 per share, in the previous year.
In the fourth quarter of fiscal 2024, revenue was $8.3 million, a decrease from $8.9 million in the same quarter last year. The net loss for this period was $1.9 million, or $0.05 per share, compared to a net income of $0.3 million, or $0.03 per share, in the prior year. The main driver of the fourth-quarter losses was a $1.4 million impairment charge related to the Original Sprout subsidiary.
As of June 30, 2024, total stockholders’ equity stood at $26.6 million, down from $30.4 million at the end of the previous fiscal year. Total assets were $32.9 million, compared to $35.3 million a year earlier. Cash and cash equivalents decreased to $5.5 million from $8.2 million, primarily due to ongoing expenses for developing the Company’s mobile fintech app, a deposit for a potential equity investment in a financial institution, and the acquisition of a UK financial services company.
David Neibert, Chief Operations Officer, commented, “The Company’s results reflect our ongoing investments in future growth, including significant expenditures in our Marygold & Co. subsidiary, a decrease in assets under management at USCF Investments, and a non-cash impairment charge at Original Sprout. We invested $5.7 million in Marygold & Co. for the fintech app’s development and $1.0 million in Marygold & Co. (UK) for acquiring Step By Step Financial Planners and finalizing the Tiger Financial & Asset Management Limited acquisition.”
Neibert added, “Despite a decline in average assets under management at USCF Investments from $3.7 billion to $3.3 billion, the company remains profitable and plans to continue launching new Exchange Traded Funds (ETFs). Our foreign subsidiaries performed well in New Zealand and Canada, while Original Sprout faced losses due to product development and sales restructuring post-COVID. We are optimistic about the acquisition of two investment advisory firms in the U.K., which will support our fintech app’s launch.”
Nicholas Gerber, Chief Executive Officer, said, “We made significant strides toward focusing on financial services, though it involved substantial costs. Our investments in the Marygold project, including Marygold & Co., Marygold Advisory Services LLC, and Marygold & Co. (UK), are intended for long-term growth. Over the past five years, we have invested over $15 million from internal funds into this innovative digital platform, which is now poised for a broader U.S. rollout and introduction in the U.K. market.”
Gerber continued, “Our goal is to create long-term shareholder value, even if it requires tough short-term decisions. We appreciate our shareholders’ patience and ongoing support, and we are grateful to our global team for their dedication, which we believe will yield positive results.”
Business Units Overview
- USCF Investments: Acquired in 2016, based in Walnut Creek, CA, manages 16 exchange-traded products listed on NYSE Arca.
- Gourmet Foods: Acquired in 2015, a New Zealand bakery producing meat pies and pastries. It includes Printstock Products Limited, a specialist food wrapper printer acquired in 2020.
- Brigadier Security Systems: Acquired in 2016, headquartered in Saskatoon, Canada, provides security solutions for various sectors.
- Original Sprout: Acquired in 2017, based in San Clemente, CA, offers vegan, non-toxic hair and skin care products globally.
- Marygold & Co.: Established in 2019, based in Denver, CO, focuses on financial technology and the development of its mobile banking app.
- Marygold & Co. (UK): Formed in 2021, operates through two investment advisory subsidiaries: Tiger Financial & Asset Management Limited (acquired in 2022) and Step-by-Step Financial Planners (acquired in 2024).
