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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Concierge Technologies Reports First Quarter Financial Results

November 15, 2021 GMT

San Clemente, Calif., Nov. 15, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Concierge Technologies, Inc. (OTC: CNCG), a diversified global holding firm, today reported financial results for the first fiscal quarter ended September 30, 2021.

Revenues for the three-month period totaled $9.7 million, compared with $10.7 million a year ago. Due to the settlement of a legal matter, the Company sustained a net loss of approximately $1.9 million, or a loss of $.05 per share, for the quarter ended September 30, 2021, versus net income of $2.2 million, equal to $.06 per fully diluted share, for the quarter ended September 30, 2020.

Results were impacted primarily by a $2.5 million settlement in connection with the resolution of SEC / CFTC regulatory Wells notices against the Company’s indirect subsidiary, United States Commodity Funds, LLC (“USCF Investments”) and United States Oil Fund, LP, in which USCF Investments is the general partner, which are related business units of Concierge’s subsidiary Wainwright Holdings, Inc. (“Wainwright”), the Company’s primary operation in its financial services segment. Excluding the settlement, net income totaled approximately $600,000 for the current quarter.

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For the three-month period ended September 30, 2021, Wainwright, had revenues of $5.7 million versus $7.0 million a year ago. Average assets under management (“AUM”) had gradually been declining over the course of the past year from $5.6 billion at September 30, 2020 to $4.2 billion at September 30, 2021. The lower AUM resulted in lower fund management revenue on a comparative basis. Excluding the settlement payment, Wainwright’s operating income totaled $2.1 million for the quarter ended September 30, 2021, versus operating income of $3.2 million a year ago. With the settlement payment, Wainwright recorded an operating loss of $368,000 for the quarter ended September 30, 2021.

The Company’s “Other” operating segment – which consists of Gourmet Foods, Printstock, Brigadier Security Systems and Original Sprout – recorded higher total revenues for the quarter, increasing to $4.2 million from $3.7 million a year ago. Revenues increased slightly for each of the operating units in this segment over the prior year’s first quarter.

Income from operations attributed to the “Other” segment increased to $298,000 for the quarter, up slightly from $259,000 from the prior year comparison period. Income was impacted principally by global supply chain challenges at the Company’s Original Sprout business unit, including higher costs of raw materials and freight due, in part, to the impact of COVID-19.

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Concierge Technologies’ balance sheet remains strong and furthered improved at September 30, 2021, with total assets of $32.2 million, compared with $31.5 million, at June 30, 2021. Cash and cash equivalents at September 30, 2021 advanced to $17.3 million from $16.1 million at June 30, 2021. The Company remains essentially debt free.

“Although we posted a net loss, we are pleased with the operational performance of our subsidiaries,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “Original Sprout, Brigadier Security, Printstock and Gourmet Foods are in various stages of expanding their respective sales channels and product offerings. Subsequent to the close of the first quarter, USCF Investments launched its newest fund, and our fintech product at Marygold is nearing the operational stage. All operating companies posted a profit this quarter, and we’re looking forward to improving throughout the coming year.”

Nicholas Gerber, Chief Executive Officer, added, “We were pleased during the first quarter to have completed the formation of Marygold & Co. (UK) Limited, which subsequently signed a definitive agreement to acquire Tiger Financial & Asset Management Limited, an established and certified investment advisor in the U.K., in a transaction that is expected to close before the end of the 2021 calendar year. Our entire team continues working diligently to grow our business profitably and achieve our collective long-term goal of increasing shareholder value.”

Business Units

Gourmet Foods,  https://gourmetfoodsltd.co.nz/, acquired in August 2015, is a commercial-scale bakery that produces and distributes iconic meat pies and pastries throughout New Zealand under the brand names Pat’s Pantry and Ponsonby Pies. Acquired by Gourmet Foods in July 2020, Printstock Products Limited https://www.printstocknz.com/ , is a printer of specialized food wrappers and is located in Napier, New Zealand. Its operations are consolidated with those of Gourmet Foods.

Brigadier Security Systems,  www.brigadiersecurity.com, acquired in June 2016 and headquartered in Saskatoon, Canada, provides comprehensive security solutions to homes and businesses, government offices, schools and other public buildings throughout the province under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina, Canada.

The Company’s USCF Investments operation,  www.uscfinvestments.com, acquired as part of the Wainwright Holdings transaction in December 2016 and based in Walnut Creek, Calif., serves as manager, operator or investment adviser to 10 exchange traded products, structured as limited partnerships or investment trusts that issue shares trading on the NYSE Arca.

Acquired by Concierge at the end of 2017, California-based Original Sprout, www.originalsprout.com, produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef safe” sun screen, in the U.S. and its territories, the U.K., E.U., Turkey, Middle East, Africa, Taiwan, Mexico, South America, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada among other areas.

Marygold & Co., formed in the U.S. during 2019 and operating from offices in Denver, CO, together with its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, was established to explore opportunities in the financial technology sector. The Company continues in the development stage as it works toward introduction of a fintech mobile banking app. https://marygoldandco.com/.

About Concierge Technologies, Inc.

Concierge Technologies, originally founded in 1996, was repositioned as a global holding firm in 2015, and currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit  www.conciergetechnology.net.

Forward-Looking Statements

This press release may contain “forward-looking statements” that include information relating to Concierge Technologies’ future events. Such forward-looking statements, including, but not limited to, expansion of the sales channels and product offerings of the Company’s business units and completion of Marygold & Co. (UK) Limited’s acquisition of Tiger Financial, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “believe,” “expects,” “may,” “looks to,” “will,” “should,” “plan,” “intend,” “on condition,” “target,” “see,” “potential,” “estimates,” “preliminary,” or “anticipates” or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes due to a number of important factors, including business effects, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release relating to the Company may be found in the Company’s periodic filings with the Securities and Exchange Commission, including the factors described in the sections entitled “Risk Factors”, copies of which may be obtained from the SEC’s website at www.sec.gov or the Company’s website at www.conciergetechnology.net. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise.

Media and investors, for more Information, contact:
Roger S. Pondel
PondelWilkinson Inc.
310-279-5965
rpondel@pondel.com

 

Contact the Company:
David Neibert, Chief Operations Officer
949-429-5370
dneibert@conciergetechnology.net
 

(Financial tables follow)

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

  September 30, 2021  June 30, 2021 (1) 
         
ASSETS 
         
CURRENT ASSETS        
Cash and cash equivalents $17,281,380  $16,072,955 
Accounts receivable, net  1,458,312   1,070,541 
Accounts receivable - related parties  1,761,830   2,038,054 
Inventories  2,109,390   1,951,792 
Prepaid income tax and tax receivable  856,072   747,343 
Investments  1,322,642   1,828,926 
Other current assets  318,218   399,524 
Total current assets  25,107,844   24,109,135 
         
Restricted cash  13,748   13,989 
Property, plant and equipment, net  1,471,602   1,573,445 
Operating lease right-of-use asset  893,562   1,058,199 
Goodwill  1,043,473   1,043,473 
Intangible assets, net  2,259,494   2,341,803 
Deferred tax assets, net-U.S.  827,476   827,476 
Other assets, long - term  540,160   540,160 
Total assets $32,157,359  $31,507,680 
         
LIABILITIES AND STOCKHOLDERS' EQUITY 
         
CURRENT LIABILITIES        
Accounts payable, accrued expenses and legal settlement $6,622,022  $3,862,874 
Expense waivers – related parties  108,012   69,684 
Operating lease liabilities, current portion  457,586   513,071 
Notes payable - related parties  603,500   603,500 
Loans - property and equipment, current portion  14,840   15,094 
Total current liabilities  7,805,960   5,064,223 
         
LONG-TERM LIABILITIES        
Loans - property and equipment, net of current portion  365,838   379,804 
Operating lease liabilities, net of current portion  496,629   607,560 
Deferred tax liabilities, net-foreign  169,429   169,429 
Total long-term liabilities  1,031,896   1,156,793 
Total liabilities  8,837,856   6,221,016 
         
STOCKHOLDERS' EQUITY        
Preferred stock, $0.001 par value; 50,000,000 authorized        
Series B: 49,360 issued and outstanding at September 30, 2021 and at June 30, 2021  49   49 
Common stock, $0.001 par value; 900,000,000 shares authorized; 37,485,959 shares issued and outstanding at September 30, 2021 and at June 30, 2021  37,486   37,486 
Additional paid-in capital  9,330,843   9,330,843 
Accumulated other comprehensive income  56,413   142,581 
Retained earnings  13,894,712   15,775,705 
Total stockholders' equity  23,319,503   25,286,664 
Total liabilities and stockholders' equity $32,157,359  $31,507,680 

(1) Derived from audited financial statements

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

  

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(UNAUDITED)

  Three Months Ended September 30, 2021  Three Months Ended September 30, 2020 
         
Net revenue        
Fund management - related party $5,657,027  $7,036,301 
Food products  2,361,793   2,057,369 
Security systems  690,856   678,643 
Beauty products  1,021,071   972,744 
Net revenue  9,730,747   10,745,057 
         
Cost of revenue  2,652,014   2,399,151 
         
Gross profit  7,078,733   8,345,906 
         
         
Operating expense        
General and administrative expense  2,113,820   1,911,045 
Fund operations  1,101,617   902,841 
Marketing and advertising  723,591   801,092 
Depreciation and amortization  154,765   166,071 
Salaries and compensation  2,131,298   1,696,244 
Legal settlement  2,500,000   - 
Total operating expenses  8,725,091   5,477,293 
         
(Loss) income from operations  (1,646,358)  2,868,613 
         
         
Other income:        
Interest and dividend income  7,396   8,604 
Interest expense  (10,200)  (10,083)
Other income  6,993   118,625 
Total other income, net  4,189   117,146 
         
(Loss) income before income taxes  (1,642,169)  2,985,759 
         
Provision of income taxes  (238,824)  (766,325)
         
Net (loss) income $(1,880,993) $2,219,434 
         
Weighted average shares of common stock        
Basic and diluted  38,473,159   38,473,159 
         
Net (loss) income per common share        
Basic and diluted $(0.05) $0.06 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

  

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
(UNAUDITED)

  Three Months Ended September 30, 2021  Three Months Ended September 30, 2020 
         
Net (loss) income $(1,880,993) $2,219,434 
         
Other comprehensive income:        
Foreign currency translation (loss) gain  (86,168)  72,714 
Comprehensive (loss) income $(1,967,161) $2,292,148 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

  

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 
FOR THE THREE MONTH PERIODS ENDING SEPTEMBER 30, 2021 AND SEPTEMBER 30, 2020
(UNAUDITED)

Period Ending September 30, 2021 Preferred Stock (Series B)  Common Stock                 
  Number of Shares  Amount  Number of Shares  Par Value  Additional Paid - in Capital  Accumulated Other Comprehensive Income (Loss)  Retained Earnings  Total Stockholders' Equity 
Balance at July 1, 2021  49,360  $49   37,485,959  $37,486  $9,330,843  $142,581  $15,775,705  $25,286,664 
Loss on currency translation  -   -   -   -   -   (86,168)  -   (86,168)
Net loss  -   -   -   -   -   -   (1,880,993)  (1,880,993)
Balance at September 30, 2021  49,360  $49  $37,485,959  $37,486  $9,330,843  $56,413  $13,894,712  $23,319,503 
Period Ending September 30, 2020 Preferred Stock (Series B)  Common Stock                 
  Number of Shares  Amount  Number of Shares  Par Value  Additional Paid - in Capital  Accumulated Other Comprehensive Income (Loss)  Retained Earnings  Total Stockholders' Equity 
Balance at July 1, 2020  53,032  $53   37,412,519  $37,412  $9,330,913  $(144,744) $9,926,262  $19,149,896 
Gain on currency translation  -   -   -   -   -   72,714   -   72,714 
Net income  -   -   -   -   -   -   2,219,434   2,219,434 
Balance at September 30, 2020  53,032  $53   37,412,519  $37,412  $9,330,913  $(72,030) $12,145,696  $21,442,044 

The accompanying notes are an integral part of these condensed consolidated financial statements.

  

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) 

  For the Three Month Period Ended 
  September 30, 
  2021  2020 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net (loss) income $(1,880,993) $2,219,434 
Adjustments to reconcile net (loss) income to net cash provided by operating activities        
Depreciation and amortization  154,765   166,071 
Bad debt expense  -   13,749.00 
Unrealized loss (gain) on investments  1,059   (1,067)
Loss (gain) on disposal of equipment  23,407   (2,100)
Operating lease right-of-use asset - non-cash lease cost  164,637   128,320 
         
Decrease (increase) in current assets:        
Accounts receivable  (397,282)  (205,324)
Accounts receivable - related party  276,224   433,110 
Prepaid income taxes and tax receivable  (111,698)  859,118 
Inventories  (154,924)  (137,859)
Other current assets  129,731   134,208 
Decrease (increase) in current liabilities:        
Accounts payable, accrued expenses and legal settlement  2,786,828   (179,660)
Operating lease liabilities  (166,417)  (129,324)
Expense waivers - related party  38,328   306,653 
Net cash provided by operating activities  863,665   3,605,329 
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Cash paid for acquisition of assets  -   (723,150)
Purchase of real estate and equipment  (3,560)  (5,657)
Sale of investments  506,462   - 
Purchase of investments  (423)  (2,694)
Net cash provided by (used in) investing activities  502,479   (731,501)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Repayment of property and equipment loans  (3,584)  (3,282)
Net cash (used in) financing activities  (3,584)  (3,282)
         
Effect of exchange rate change on cash and cash equivalents  (154,376)  210,997 
         
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH  1,208,184   3,081,543 
         
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE  16,086,944   9,826,042 
         
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $17,295,128  $12,907,585 
         
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:        
Cash paid during the period for:        
Interest paid $4,080  $3,963 
Income taxes paid (refunded) $296,768  $(238,458)
Non-cash financing and investing activities:        
Reclassification of acquisition deposit $-  $122,111 
Purchase price payable $-  $277,577 

The accompanying notes are an integral part of these condensed consolidated financial statements.