Note 16 - Segment Reporting

12 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 16. SEGMENT REPORTING

With the acquisition of USCF Investments, Gourmet Foods, Brigadier, Tiger, and the launch of the Original Sprout business unit of Kahnalytics, 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 and Canada security alarm systems. Our recently incorporated subsidiary, Marygold, has not begun operations, so its accounts have been consolidated with those of the parent, The Marygold Companies, and is not yet identified as a separate segment. Our recently acquired indirect subsidiary, Tiger, had only 9 days of operations during the year ended June 30, 2022 and operating results were nil for the year ended June 30, 2022. 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, Ltd. and their 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. Our subsidiary in the U.K., Marygold UK, earns management fees through its wholly-owned subsidiary, Tiger, as an investment advisor and asset manager. 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 following table presents a summary of identifiable assets as of June 30, 2023 and June 30, 2022:

	June 30,		June 30,
	2023		2022
Identifiable assets:
U.S.A.:Corporate headquarters - including Marygold	$	4,133,619	$	7,243,332
U.S.A. : investment fund management - related party		19,601,960		18,006,771
U.S.A. : beauty products		2,888,721		3,484,315
New Zealand: food industry		3,933,463		3,983,381
Canada: security systems		2,820,798		2,592,778
U.K.: financial services (1)		1,902,266		-
Consolidated total	$	35,280,827	$	35,310,577

(1) The assets of Marygold UK, identified as located in the U.K.: financial services segment as of June 30, 2023, were combined with those of the parent company as of June 30, 2022 due to its recent acquisition and limited operations.

The following table presents a summary of operating information for the years ended June 30, 2023 and June 30, 2022:

	Year Ended			Year Ended
	June 30, 2023			June 30, 2022
Revenues from external customers:
U.S.A. : investment fund management - related party	$	20,862,191		$	23,835,348
U.S.A. : beauty products		3,033,100			3,529,789
New Zealand : food industry		7,631,837			7,930,888
Canada : security systems		2,832,531			2,533,098
U.K.: financial services		517,075			-
Consolidated total	$	34,876,734		$	37,829,123
Net income (loss):
U.S.A. : investment fund management - related party		7,579,329			7,053,050
U.S.A. : beauty products		(288,562	)		(187,968	)
New Zealand : food industry		255,802			323,621
Canada : security systems		358,312			246,086
U.K.: financial services		52,760			-
Corporate headquarters - including Marygold		(6,792,612	)		(6,289,068	)
Consolidated total	$	1,165,029		$	1,145,721

The following table presents a summary of capital expenditures for the year ended June 30,:

	Year Ended		Year Ended
	June 30, 2023		June 30, 2022
Capital expenditures, net of disposals:
U.S.A.: investment fund management	$	-	$	-
U.S.A.: beauty products		1,778		1,717
New Zealand: food industry		54,362		3,153
Canada: security systems		8,630		-
U.K.: financial services		3,309		-
U.S.A.: corporate headquarters - including Marygold		26,651		2,685
Consolidated	$	94,730	$	7,555

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

	As of June 30, 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		2,240,357			2,235,896
Canada: security systems		900,123			916,054
U.K.: financial services		23,695			19,467
U.S.A. : corporate headquarters - including Marygold		47,080			20,429
Total all locations		3,273,711			3,252,524
Less accumulated depreciation		(2,018,409	)		(1,860,630	)
Net property, plant and equipment	$	1,255,302		$	1,391,894