Note 16 - Segment Reporting

9 Months Ended

Mar. 31, 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 March 31, 2022 and June 30, 2021.

	March 31,		June 30,
	2022		2021
Identifiable assets:
U.S.A. : investment fund management - related party	$	17,660,600	$	17,467,044
U.S.A. : beauty products		3,772,178		4,024,803
New Zealand: food industry		4,475,419		3,831,539
Canada: security systems		2,588,908		2,671,286
Corporate headquarters - including Marygold		5,572,981		3,513,008
Consolidated total	$	34,070,086	$	31,507,680

The following table presents a summary of operating information for the three months ended March 31:

	Three Months Ended			Three Months Ended
	March 31, 2022			March 31, 2021
Revenues from external customers:
U.S.A. : investment fund management - related party	$	5,868,558		$	5,997,085
U.S.A. : beauty products		702,779			813,084
New Zealand : food industry		1,667,345			2,015,529
Canada : security systems		555,006			717,664
Consolidated total	$	8,793,688		$	9,543,362
Net income (loss):
U.S.A. : investment fund management - related party	$	2,322,177		$	2,588,841
U.S.A. : beauty products		(146,959	)		(120,060	)
New Zealand : food industry		(72,388	)		153,847
Canada : security systems		39,689			51,828
Corporate headquarters - including Marygold		(1,272,385	)		(1,091,648	)
Consolidated total	$	870,134		$	1,582,808

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

	Nine Months Ended			Nine Months Ended
	March 31, 2022			March 31, 2021
Revenues from external customers:
U.S.A. : investment fund management - related party		17,226,969			19,182,801
U.S.A. : beauty products	$	2,716,702		$	2,846,052
New Zealand : food industry		6,131,791			6,212,698
Canada : security systems		1,888,362			2,013,819
Consolidated total	$	27,963,824		$	30,255,370
Net income (loss):
U.S.A. : investment fund management - related party	$	3,939,412		$	8,087,112
U.S.A. : beauty products		(155,155	)		(116,021	)
New Zealand : food industry		217,280			485,974
Canada : security systems		180,641			250,522
Corporate headquarters - including Marygold		(4,169,702	)		(3,553,556	)
Consolidated total	$	12,476		$	5,154,031

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

	Three Months Ended		Three Months Ended
	March 31, 2022		March 31, 2021
Capital expenditures, net of disposals:
U.S.A.: corporate headquarters - including Marygold	$	-	$	-
U.S.A.: beauty products		988		4,967
U.S.A.: fund management		-		-
New Zealand: food industry		676		1,182
Canada: security systems		-		743
Consolidated	$	1,664	$	6,892

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

	Nine Months Ended		Nine Months Ended
	March 31, 2022		March 31, 2021(1)
Capital expenditures, net of disposals:
U.S.A.: corporate headquarters - including Marygold	$	-	$	653
U.S.A.: beauty products		1,508		33,724
U.S.A.: fund management		-		-
New Zealand: food industry		3,716		417,979
Canada: security systems		-		(11,748	)
Consolidated	$	5,224	$	440,608

(1) Includes $401,682 related to the acquisition of Printstock in July 2020. See Note 13, Business Combinations

The following table represents the property, plant and equipment in use at each of the Company's locations as of March 31, 2022 and June 30, 2021:

	As of March 31, 2022 (1)			As of June 30, 2021
Asset Location
U.S.A. : investment fund management	$	-		$	-
U.S.A. : beauty products		60,469			58,961
New Zealand : food industry		2,491,427			2,345,569
Canada : security systems		990,202			998,612
Corporate headquarters - including Marygold		17,744			17,744
Total		3,559,842			3,420,886
Less accumulated depreciation		(2,000,690	)		(1,847,441	)
Net property and equipment	$	1,559,152		$	1,573,445

(1) Includes the underlying assets of the solar energy system finance lease totaling $149,593 at Gourmet Foods.