Wed, Sep 18, 9:15 PM (94 days ago)
The Marygold Companies, Inc. reported a net loss of $4,069,000 for the fiscal year ending June 30, 2024, compared to a net income of $1,165,000 in 2023, primarily driven by increased operating expenses and a significant impairment charge of $1,389,000 in its beauty products segment. Revenue decreased by 6% to $32,836,000, largely due to reduced average Assets Under Management (AUM) in its fund management segment, which fell from $3.7 billion to $3.3 billion, impacted by commodity price fluctuations and economic uncertainties. Operating expenses surged by 23% to $30,372,000, reflecting higher costs associated with the development of its Fintech app and increased staffing. The fund management segment's revenue decreased by 9%, while financial services revenue grew by 26%. The company's liquidity remains robust with cash and equivalents of $5.5 million, despite a 33% decline from the previous year. The outlook includes continued investment in the Fintech app, with plans to raise additional capital to support operations. Key risks involve reliance on AUM, competition in the Fintech sector, and ongoing litigation related to its fund management activities.