Marygold Companies, Inc. reported its financial results for the quarter ended September 30, 2024, revealing a decline in revenue and increased losses compared to the same period in the previous year. Total revenue for the quarter was $7.91 million, a decrease of 4% from $8.24 million in Q3 2023. The gross profit also fell by 7%, from $6.20 million to $5.78 million. The company experienced a significant increase in operating losses, which rose to $2.17 million from $1.04 million, marking a 109% increase year-over-year.

The loss before income taxes for the quarter was $2.07 million, up 158% from $803,000 in the prior year. The net loss for the quarter was $1.59 million, compared to a net loss of $500,000 in Q3 2023, reflecting a 217% increase. The average assets under management (AUM) decreased from $3.5 billion to $3.1 billion, contributing to the decline in fund management revenue, which fell by 9% to $4.59 million.

Operating expenses increased by 10%, driven by a 14% rise in general and administrative costs and a 22% increase in salaries and compensation. The company reported a decrease in other income, down 57% due to reduced gains on investments. The benefit from income taxes increased by 59%, correlating with the higher loss before income taxes.

In terms of strategic developments, Marygold Companies made a $1.8 million deposit for a potential acquisition of a less than 10% equity interest in a domestic financial institution, with regulatory approval obtained in September 2024. The company also completed the acquisition of Step-By-Step Financial Planners Limited for $1.2 million in April 2024, which had $80.1 million in assets under management as of September 30, 2024.

The company’s cash and cash equivalents increased to $6.67 million, up 22% from $5.46 million as of June 30, 2024. Cash used in operating activities was $893,000, contrasting with net cash provided by operating activities of $291,000 in the same quarter last year. Additionally, Marygold entered into a note purchase agreement with Streeterville Capital, LLC, issuing a secured promissory note of $4.38 million, with an effective interest rate of 41.3%.

As of September 30, 2024, total current assets were $25.00 million, while total liabilities increased to $10.34 million from $6.29 million in the previous quarter. The company’s total stockholders’ equity decreased to $25.53 million from $26.61 million.