Note 16 - Segment Reporting

3 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 16. SEGMENT REPORTING

With the acquisition of USCF Investments, Gourmet Foods, Brigadier, and the launch of the Original Sprout business unit of Kahnalytics, the Company has identified four segments for its products and services; U.S.A. investment fund management, U.S.A. beauty products, New Zealand food industry and Canada security alarm systems. Our recently incorporated subsidiaries, Marygold and Marygold UK, have not begun operations, so their accounts have been consolidated with those of the parent, The Marygold Companies, and are not identified as a separate segment. The Company's reportable segments are business units located in different global regions. The Company’s operations in the U.S.A. include the manufacture and wholesale distribution of hair and skin care products by Original Sprout and the income derived from management of various investment funds by our subsidiary USCF Investments. In New Zealand operations include the production, packaging and distribution on a commercial scale of gourmet meat pies and related bakery confections, and the printing of specialized food wrappers through our wholly owned subsidiary Gourmet Foods and its subsidiary, Printstock. In Canada, the Company provides security alarm system installation and maintenance services to residential and commercial customers sold through its wholly owned subsidiary, Brigadier. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation. Amounts are adjusted for currency translation as of the balance sheet date and presented in US dollars. The Company files income taxes as a combined group and records most income taxes at the parent level.

The following table presents a summary of identifiable assets as of September 30, 2022 and June 30, 2022.

	September 30,		June 30,
	2022		2022
Identifiable assets:
Corporate headquarters - including Marygold	$	4,657,546	$	7,243,332
U.S.A. : investment fund management - related party		18,311,180		18,006,771
U.S.A. : beauty products		3,442,304		3,484,315
New Zealand: food industry		3,639,868		3,983,381
Canada: security systems		2,486,755		2,592,778
U.K.: Financial services (1)		2,399,830		-
Consolidated total	$	34,937,483	$	35,310,577

(1) The assets of Marygold & Co. (UK) were included with corporate headquarters at June 30, 2022 and totaled US$2,490,712 translated as of June 30, 2022.

The following table presents a summary of operating information for the three months ended September 30:

	Three Months Ended			Three Months Ended
	September 30, 2022			September 30, 2021
Revenues from external customers:
U.S.A. : investment fund management - related party	$	5,419,435		$	5,657,027
U.S.A. : beauty products		804,078			1,021,071
New Zealand : food industry		1,937,426			2,361,793
Canada : security systems		628,892			690,856
U.K.: Financial services		133,457			-
Consolidated total	$	8,923,288		$	9,730,747
Net income (loss):
U.S.A. : investment fund management - related party	$	1,785,259		$	(367,906	)
U.S.A. : beauty products		(19,757	)		4,522
New Zealand : food industry		200,554			153,204
Canada : security systems		107,124			78,406
U.K.: Financial services		10,155			-
Corporate headquarters - including Marygold		(1,586,167	)		(1,749,219	)
Consolidated total	$	497,168		$	(1,880,993	)

The following table presents a summary of capital expenditures for the three month periods ended September 30:

	Three Months Ended		Three Months Ended
	September 30, 2022		September 30, 2021
Capital expenditures:
U.S.A.: investment fund management	$	-	$	-
U.S.A. : beauty products		1,128		520
New Zealand: food industry		5,854		3,040
Canada: security systems		698		-
U.K.: Financial services		1,738		-
U.S.A. : corporate headquarters - including Marygold		-		-
Consolidated	$	9,418	$	3,560

The following table represents the property, plant and equipment in use at each of the Company's locations as of September 30, 2022 and June 30, 2022:

	As of September 30, 2022			As of June 30, 2022
Asset Location
U.S.A.: investment fund management	$	-		$	-
U.S.A. : beauty products		61,806			60,678
New Zealand: food industry		2,045,088			2,235,896
Canada: security systems		862,285			916,054
U.K.: Financial services		19,509			19,467
U.S.A. : corporate headquarters - including Marygold		20,429			20,429
Total All Locations		3,009,117			3,252,524
Less accumulated depreciation		(1,755,746	)		(1,860,630	)
Net property, plant and equipment	$	1,253,371		$	1,391,894