GlobeNewswire Inc | Nov 15, 2021 04:05PM EST

November 15, 2021

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 Companys 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 Concierges subsidiary Wainwright Holdings, Inc. (Wainwright), the Companys primary operation in its financial services segment. Excluding the settlement, net income totaled approximately $600,000 for the current quarter.

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, Wainwrights 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 Companys 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 years 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 Companys Original Sprout business unit, including higher costs of raw materials and freight due, in part, to the impact of COVID-19.

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 were 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 Pats 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 Companys 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, visitwww.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 Companys business units and completion of Marygold & Co. (UK) Limiteds 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 Companys 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. PondelPondelWilkinson Inc.310-279-5965rpondel@pondel.com

Contact the Company:David Neibert, Chief Operations Officer949-429-5370dneibert@conciergetechnology.net

(Financial tables follow)

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

September June 30, 30, 2021 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 $ 6,622,022 $ 3,862,874 settlementExpense 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 14,840 15,094 portionTotal current liabilities 7,805,960 5,064,223 LONG-TERM LIABILITIES Loans - property and equipment, net of 365,838 379,804 current portionOperating lease liabilities, net of current 496,629 607,560 portionDeferred 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 authorizedSeries B: 49,360 issued and outstanding at 49 49 September 30, 2021 and at June 30, 2021Common stock, $0.001 par value; 900,000,000shares authorized; 37,485,959 shares issued 37,486 37,486 and outstanding at September 30, 2021 and atJune 30, 2021Additional 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 SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME(UNAUDITED)

Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Net revenue Fund management - $ 5,657,027 $ 7,036,301 related partyFood 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 andadministrative 2,113,820 1,911,045 expenseFund operations 1,101,617 902,841 Marketing and 723,591 801,092 advertisingDepreciation and 154,765 166,071 amortizationSalaries and 2,131,298 1,696,244 compensationLegal settlement 2,500,000 - Total operating 8,725,091 5,477,293 expenses (Loss) income from (1,646,358 ) 2,868,613 operations Other income: Interest and dividend 7,396 8,604 incomeInterest expense (10,200 ) (10,083 )Other income 6,993 118,625 Total other income, 4,189 117,146 net (Loss) income before (1,642,169 ) 2,985,759 income taxes Provision of income (238,824 ) (766,325 )taxes Net (loss) income $ (1,880,993 ) $ 2,219,434 Weighted averageshares of common stockBasic and diluted 38,473,159 38,473,159 Net (loss) income per common shareBasic and diluted $ (0.05 ) $ 0.06

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



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

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

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



CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYFOR THE THREE MONTH PERIODS ENDING SEPTEMBER 30, 2021 AND SEPTEMBER 30, 2020(UNAUDITED)

PeriodEnding Preferred Stock Common Stock September (Series B)30, 2021 Additional Accumulated Total Number of Amount Number of Par Value Paid - in Other Retained Stockholders' Shares Shares Capital Comprehensive Earnings Equity Income (Loss)Balance atJuly 1, 49,360 $ 49 37,485,959 $ 37,486 $ 9,330,843 $ 142,581 $ 15,775,705 $ 25,286,664 2021Loss oncurrency - - - - - (86,168 ) - (86,168 )translationNet loss - - - - - - (1,880,993 ) (1,880,993 )Balance atSeptember 49,360 $ 49 $ 37,485,959 $ 37,486 $ 9,330,843 $ 56,413 $ 13,894,712 $ 23,319,503 30, 2021

PeriodEnding Preferred Stock Common Stock September (Series B)30, 2020 Additional Accumulated Total Number of Amount Number of Par Value Paid - in Other Retained Stockholders' Shares Shares Capital Comprehensive Earnings Equity Income (Loss)Balance atJuly 1, 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (144,744 ) $ 9,926,262 $ 19,149,896 2020Gain oncurrency - - - - - 72,714 - 72,714 translationNet income - - - - - - 2,219,434 2,219,434 Balance atSeptember 53,032 $ 53 37,412,519 $ 37,412 $ 9,330,913 $ (72,030 ) $ 12,145,696 $ 21,442,044 30, 2020

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



CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIESCONDENSED 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 activitiesDepreciation 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 - 164,637 128,320 non-cash lease cost 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 2,786,828 (179,660 )legal settlementOperating lease liabilities (166,417 ) (129,324 )Expense waivers - related party 38,328 306,653 Net cash provided by operating 863,665 3,605,329 activities 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) 502,479 (731,501 )investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of property and equipment (3,584 ) (3,282 )loansNet cash (used in) financing activities (3,584 ) (3,282 ) Effect of exchange rate change on cash (154,376 ) 210,997 and cash equivalents NET INCREASE IN CASH, CASH EQUIVALENTS 1,208,184 3,081,543 AND RESTRICTED CASH CASH, CASH EQUIVALENTS AND RESTRICTED 16,086,944 9,826,042 CASH, BEGINNING BALANCE CASH, CASH EQUIVALENTS AND RESTRICTED $ 17,295,128 $ 12,907,585 CASH, ENDING BALANCE 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.