Note 16 - Segment Reporting

9 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 16. SEGMENT REPORTING

With the acquisition of USCF Investments, Gourmet Foods, Brigadier, the Original Sprout business unit of Kahnalytics, and with the acquisition of Tiger Financial and Asset Management by our subsidiary Marygold UK, the Company has identified five segments for its products and services; U.S.A. investment fund management, U.S.A. beauty products, New Zealand food industry, Canada security alarm systems and UK financial services. Our development stage subsidiary, Marygold, has 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. In the U.K., the Company offers investment advice and manages investments for U.K. customers through Marygold UK and its wholly owned subsidiary Tiger Financial and Asset Management. 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 March 31, 2023 and June 30, 2022.

	March 31,		June 30,
	2023		2022
Identifiable assets:
Corporate headquarters - including Marygold	$	4,258,754	$	7,243,332
U.S.A. : investment fund management - related party		19,013,425		18,006,771
U.S.A. : beauty products		3,055,745		3,484,315
New Zealand: food industry		3,980,514		3,983,381
Canada: security systems		2,562,869		2,592,778
U.K.: financial services (1)		1,863,414		-
Consolidated total	$	34,734,721	$	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 December 31:

	Three Months Ended			Three Months Ended
	March 31, 2023			March 31, 2022
Revenues from external customers:
U.S.A. : investment fund management - related party	$	5,022,398		$	5,868,558
U.S.A. : beauty products		745,468			702,779
New Zealand : food industry		1,824,789			1,667,345
Canada : security systems		576,248			555,006
U.K.: financial services		129,868			-
Consolidated total	$	8,298,771		$	8,793,688
Net income (loss):
U.S.A. : investment fund management - related party	$	1,892,103		$	2,322,177
U.S.A. : beauty products		(132,603	)		(146,959	)
New Zealand : food industry		(34,477	)		(72,388	)
Canada : security systems		73,132			39,689
U.K.: financial services		10,256			-
Corporate headquarters - including Marygold		(1,655,117	)		(1,272,385	)
Consolidated total	$	153,294		$	870,134

The following table presents a summary of operating information for the nine months ended December 31:

	Nine Months Ended			Nine Months Ended
	March 31, 2023			March 31, 2022
Revenues from external customers:
U.S.A. : investment fund management - related party	$	15,708,004		$	17,226,969
U.S.A. : beauty products		2,334,009			2,716,702
New Zealand : food industry		5,701,714			6,131,791
Canada : security systems		1,870,986			1,888,362
U.K.: financial services		387,811			-
Consolidated total	$	26,002,524		$	27,963,824
Net (loss) income:
U.S.A. : investment fund management - related party		5,459,141			3,939,412
U.S.A. : beauty products		(193,705	)		(155,155	)
New Zealand : food industry		183,600			217,280
Canada : security systems		253,540			180,641
U.K.: financial services		33,312			-
Corporate headquarters - including Marygold		(4,903,632	)		(4,169,702	)
Consolidated total	$	832,256		$	12,476

The following table presents a summary of capital expenditures for the three month periods ended December 31:

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Capital expenditures:
U.S.A.: investment fund management	$	-	$	-
U.S.A. : beauty products		-		968
New Zealand: food industry		34,559		676
Canada: security systems		4,493		-
U.K.: financial services		-		-
U.S.A. : corporate headquarters - including Marygold		-		-
Consolidated	$	39,052	$	1,644

The following table presents a summary of capital expenditures for the nine month periods ended December 31,:

	Nine Months Ended		Nine Months Ended
	March 31, 2023		March 31, 2022
Capital expenditures, net of disposals:
U.S.A.: investment fund management	$	-	$	-
U.S.A.: beauty products		1,778		1,508
New Zealand: food industry		41,889		3,716
Canada: security systems		8,630		-
U.K.: financial services		1,772		-
U.S.A.: corporate headquarters - including Marygold		19,913		-
Consolidated	$	73,982	$	5,224

The following table represents the property, plant and equipment in use at each of the Company's locations as of March 31, 2023 and June 30, 2022:

	As of March 31, 2023			As of June 30, 2022
Asset Location
U.S.A.: investment fund management	$	-		$	-
U.S.A. : beauty products		62,456			60,678
New Zealand: food industry		2,290,034			2,235,896
Canada: security systems		880,144			916,054
U.K.: financial services		21,722			19,467
U.S.A. : corporate headquarters - including Marygold		40,342			20,429
Total all Locations		3,294,698			3,252,524
Less accumulated depreciation		(2,006,277	)		(1,860,630	)
Net property, plant and equipment	$	1,288,421		$	1,391,894