The Marygold Companies, Inc. (MGLD) Bundle
A Brief History of Marygold Companies, Inc.
Company Overview
Marygold Companies, Inc. operates through various subsidiaries, focusing on financial services, food products, beauty products, and security systems. The company has seen growth through strategic acquisitions and service expansions.
Recent Developments
In April 2024, Marygold UK acquired Step-By-Step Financial Planners for $1.2 million, enhancing its financial services segment. The acquisition added $80.1 million in assets under management as of September 30, 2024.
Financial Performance
For the quarter ended September 30, 2024, Marygold reported total revenue of $7.91 million, a decrease of 4% from $8.24 million in the same quarter of the previous year. The decrease was driven primarily by a 9% decline in revenue from the fund management segment, which brought in $4.59 million.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $7,910,000 | $8,235,000 | -4% |
| Gross Profit | $5,782,000 | $6,198,000 | -7% |
| Operating Expenses | $7,952,000 | $7,234,000 | 10% |
| Net Loss | $(1,586,000) | $(500,000) | 217% |
Assets Under Management
The average assets under management (AUM) for the quarter were $3.1 billion, down from $3.5 billion in Q3 2023. The decline in AUM was attributed to fluctuations in commodity prices and a challenging high-interest rate environment.
Segment Performance
- Fund Management: Revenue decreased by 9% to $4.59 million.
- Food Products: Revenue increased by 5% to $1.82 million.
- Beauty Products: Revenue decreased by 23% to $0.60 million.
- Security Systems: Revenue increased by 25% to $0.69 million.
- Financial Services: Revenue increased by 65% to $0.21 million.
Stockholder Equity
As of September 30, 2024, total stockholders’ equity was $25.53 million, down from $26.61 million as of June 30, 2024. The company had 40,326,035 shares of common stock outstanding.
Debt and Financing Activities
Marygold entered a note purchase agreement in September 2024, issuing a secured promissory note for $4.38 million, with an additional potential borrowing of $2.18 million. The effective interest rate on the notes is 9% per annum.
Cash Flow Analysis
As of September 30, 2024, the company reported cash and cash equivalents of $6.67 million, an increase from $5.46 million at the end of June 2024. The cash used in operating activities for the quarter was $(0.89 million).
| Cash Flow Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash from Operating Activities | $(893,000) | $291,000 |
| Cash and Cash Equivalents | $6,670,000 | $6,987,000 |
A Who Owns The Marygold Companies, Inc. (MGLD)
Ownership Structure
As of September 30, 2024, The Marygold Companies, Inc. (MGLD) had the following ownership structure:
| Type of Stock | Number of Shares Issued | Outstanding Shares | Par Value | Voting Rights |
|---|---|---|---|---|
| Common Stock | 40,326,035 | 40,326,035 | $0.001 | Yes |
| Series B Preferred Stock | 49,360 | 49,360 | $0.001 | Yes, convertible into 20 shares of Common Stock |
Major Shareholders
The major shareholders of The Marygold Companies, Inc. include:
- Institutional Investors: Various institutional investors hold significant positions in MGLD.
- Insider Ownership: Company executives and board members own a portion of the shares, which is typical in publicly traded companies.
Recent Financial Data
The financial performance of The Marygold Companies, Inc. for the quarter ended September 30, 2024, is as follows:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $7,910,000 | $8,235,000 | -4% |
| Gross Profit | $5,782,000 | $6,198,000 | -7% |
| Operating Expenses | $7,952,000 | $7,234,000 | 10% |
| Net Loss | $(1,586,000) | $(500,000) | 217% |
Assets Under Management (AUM)
The average AUM for the fund management business was:
| Period | Average AUM |
|---|---|
| Q3 2024 | $3.1 billion |
| Q3 2023 | $3.5 billion |
Debt Obligations
As of September 30, 2024, the debt obligations of The Marygold Companies, Inc. were:
| Debt Type | Amount Outstanding | Due Within 12 Months | Interest Rate |
|---|---|---|---|
| Notes Payable | $3,700,000 | $2,800,000 | 41.3% |
Recent Developments
On January 31, 2024, Marygold UK acquired Step-By-Step Financial Planners Limited for $1.2 million. This acquisition added $80.1 million in AUM to the company.
Stockholder Equity
The stockholder equity breakdown as of September 30, 2024, is as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $40 |
| Additional Paid-in Capital | $13,285 |
| Retained Earnings | $12,432 |
| Accumulated Other Comprehensive Loss | $(226) |
| Total Stockholders' Equity | $25,531 |
The Marygold Companies, Inc. (MGLD) Mission Statement
The Marygold Companies, Inc. (MGLD) is a global holding company focused on financial services, particularly in the Fintech sector. The mission statement emphasizes the commitment to delivering innovative financial solutions and enhancing customer experiences through technology. The company aims to foster growth and sustainability across its diverse subsidiaries, which include fund management, food products, beauty products, security systems, and financial services.
Financial Overview
As of September 30, 2024, The Marygold Companies reported total revenue of $7.91 million, a decrease of 4% compared to $8.24 million in the same quarter of the previous year. The decline was primarily due to a reduction in average Assets Under Management (AUM) in its fund management business, which averaged $3.1 billion compared to $3.5 billion in the previous year.
| Segment | Q3 2024 Revenue ($000) | Q3 2023 Revenue ($000) | Change (%) |
|---|---|---|---|
| Fund Management - Related Party | 4,591 | 5,049 | -9% |
| Food Products | 1,822 | 1,730 | 5% |
| Beauty Products | 597 | 775 | -23% |
| Security Systems | 690 | 554 | 25% |
| Financial Services | 210 | 127 | 65% |
| Total Revenue | 7,910 | 8,235 | -4% |
Operating Performance
The operating loss for the quarter ended September 30, 2024, was $2.17 million, compared to a loss of $1.04 million in the same quarter of 2023, reflecting a 109% increase in losses. The company faced increased operating expenses totaling $7.95 million, a 10% increase from $7.23 million in the prior year.
| Operating Metrics | Q3 2024 ($000) | Q3 2023 ($000) | Change (%) |
|---|---|---|---|
| Gross Profit | 5,782 | 6,198 | -7% |
| Operating Expenses | 7,952 | 7,234 | 10% |
| Operating Loss | (2,170) | (1,036) | 109% |
Net Income and Earnings Per Share
The net loss for the quarter was $1.59 million, a significant increase of 217% from a net loss of $500,000 in the previous year. The basic and diluted net loss per share was $(0.04) for the quarter ended September 30, 2024, compared to $(0.01) for the same period in 2023.
| Net Income Metrics | Q3 2024 ($000) | Q3 2023 ($000) |
|---|---|---|
| Net Loss | (1,586) | (500) |
| Basic and Diluted Net Loss Per Share | (0.04) | (0.01) |
Current Assets and Liabilities
As of September 30, 2024, total assets were reported at $35.88 million, an increase from $32.90 million as of June 30, 2024. Current liabilities totaled $10.34 million, up from $6.29 million in the prior quarter.
| Balance Sheet Overview | As of Sept 30, 2024 ($000) | As of June 30, 2024 ($000) |
|---|---|---|
| Total Assets | 35,875 | 32,899 |
| Total Liabilities | 10,344 | 6,285 |
| Stockholders' Equity | 25,531 | 26,614 |
Conclusion
The Marygold Companies, Inc. continues its commitment to innovation and customer service in the financial sector while navigating challenges in its operational performance and market conditions. The company's mission remains rooted in providing comprehensive solutions across its diverse portfolio.
How The Marygold Companies, Inc. (MGLD) Works
Overview of Operations
The Marygold Companies, Inc. operates through various subsidiaries engaged in diverse business activities, including fund management, food products, security systems, beauty products, and financial services.
Financial Performance
As of the quarter ended September 30, 2024, the financial performance of The Marygold Companies is summarized as follows:
| Financial Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Revenue | $7,910 | $8,235 | -4% |
| Cost of Revenue | $2,128 | $2,037 | 4% |
| Gross Profit | $5,782 | $6,198 | -7% |
| Operating Expenses | $7,952 | $7,234 | 10% |
| Loss from Operations | $(2,170) | $(1,036) | 109% |
| Net Loss | $(1,586) | $(500) | 217% |
Segment Revenue Analysis
The revenue generated from different segments for the quarter ended September 30, 2024, is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Fund Management - Related Party | $4,591 | $5,049 | -9% |
| Food Products | $1,822 | $1,730 | 5% |
| Beauty Products | $597 | $775 | -23% |
| Security Systems | $690 | $554 | 25% |
| Financial Services | $210 | $127 | 65% |
Assets Under Management (AUM)
The average AUM for the quarter ended September 30, 2024, was $3.1 billion compared to $3.5 billion for the same period in 2023. The decrease was attributed to commodity price fluctuations and a high-interest rate environment.
Operating Losses and Expenses
Operating losses increased significantly due to various factors:
- General and administrative expenses rose by 14% to $2.4 million.
- Salaries and compensation increased by 22% to $3.3 million.
- Marketing and advertising expenses decreased by 31% to $0.7 million.
Cash Flow and Financing Activities
The Marygold Companies had cash and cash equivalents of $6.7 million as of September 30, 2024. The cash flow activities for the quarter were as follows:
| Cash Flow Activities | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $(893) | $291 |
| Net Cash from Investing Activities | $(1,325) | $(1,536) |
| Net Cash from Financing Activities | $3,375 | $(2) |
Debt Obligations
As of September 30, 2024, the note payable balance was $3.7 million, with an effective interest rate of 41.3%. The breakdown of the debt obligations is as follows:
| Debt Type | Amount (in thousands) | Due Within 12 Months (in thousands) | Due After 12 Months (in thousands) |
|---|---|---|---|
| Note Payable | $3,700 | $2,800 | $900 |
Stockholder Equity
The stockholder equity details as of September 30, 2024, are as follows:
| Equity Type | Number of Shares | Amount (in thousands) |
|---|---|---|
| Common Stock | 40,326 | $40 |
| Preferred Stock (Series B) | 49 | $0 |
Future Outlook
Marygold Companies is investing significantly in its mobile fintech application, with total investments to date of $16.5 million. The company anticipates additional financing needs to support ongoing operations and development.
How The Marygold Companies, Inc. (MGLD) Makes Money
Revenue Sources
The Marygold Companies, Inc. (MGLD) generates revenue through various segments, including fund management, food products, beauty products, security systems, and financial services. The following table summarizes the revenue by segment for the quarter ended September 30, 2024, compared to the same quarter in 2023:
| Segment | Revenue Q3 2024 (in thousands) | Revenue Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Fund management - related party | $4,591 | $5,049 | -9% |
| Food products | $1,822 | $1,730 | 5% |
| Beauty products | $597 | $775 | -23% |
| Security systems | $690 | $554 | 25% |
| Financial services | $210 | $127 | 65% |
| Total Revenue | $7,910 | $8,235 | -4% |
Fund Management
The fund management segment, primarily through USCF Investments, earns revenue via management and advisory fees based on a percentage of assets under management (AUM). The average AUM for the quarter ended September 30, 2024, was $3.1 billion, down from $3.5 billion in the previous year, contributing to a 9% decrease in revenue from this segment.
Food Products
The food products division, which operates a commercial-scale bakery and a digital printing establishment, experienced a 5% increase in revenue, primarily due to increased sales at the printing business. This segment's operating income was nearly break-even.
Beauty Products
Revenue from beauty products decreased by 23% as the company focused on controlling discounted prices sold online. Operating loss decreased by 46% due to reduced marketing costs.
Security Systems
Revenue in the security systems segment increased by 25%, driven by higher sales to commercial customers, which also boosted operating income by 87%.
Financial Services
Marygold's financial services segment includes a mobile banking fintech app launched in June 2023, which has generated minimal revenue thus far. This segment's revenue increased by 65% due to incremental revenue from an acquisition.
Operating Performance
The company's total operating loss for the quarter ending September 30, 2024, was $2,170,000, compared to a loss of $1,036,000 in the prior year, reflecting challenges across several segments.
Expenses Overview
Operating expenses rose by 10% to $7,952,000, driven by increases in salaries and general administrative expenses. The breakdown of operating expenses is as follows:
| Expense Type | Amount Q3 2024 (in thousands) | Amount Q3 2023 (in thousands) |
|---|---|---|
| Salaries and compensation | $3,147 | $2,590 |
| General and administrative | $2,565 | $2,248 |
| Fund operations | $1,412 | $1,270 |
| Marketing and advertising | $669 | $972 |
| Depreciation and amortization | $159 | $154 |
| Total Operating Expenses | $7,952 | $7,234 |
Net Loss
The net loss for the quarter ended September 30, 2024, was $1,586,000, a significant increase from the $500,000 loss reported in the same quarter of 2023.
Cash Flow and Financial Position
The company reported cash, cash equivalents, and restricted cash totaling $6,729,000 as of September 30, 2024. The liabilities included notes payable of $3,710,000, with $2,800,000 due within the next twelve months.
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Resources:
- The Marygold Companies, Inc. (MGLD) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of The Marygold Companies, Inc. (MGLD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Marygold Companies, Inc. (MGLD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.