Concierge Technologies Reports Financial Results for the


SAN CLEMENTE, Calif., Feb. 14, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Concierge Technologies, Inc. (OTC Pink: CNCG), a diversified global holding firm, today reported financial results for the second fiscal quarter and six months ended December 31, 2021.

Revenues for the second fiscal quarter totaled $9,445,116, compared with $9,961,822 a year ago. Net income for the most recent three-month period was $1,023,335, equal to $0.03 per fully diluted per share, compared with $1,351,788, or $0.04 per fully diluted share, last year.

“Each of our operating subsidiaries posted income from operations for the second fiscal quarter as they continued to pursue growth opportunities through new products and sales channel expansion,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “At the top level, we continued our investment in our new proprietary mobile banking app platform that seeks to fit each individual’s unique appetite for sending, receiving, spending and saving money securely through mobile devices. It is currently in development stage prior to beta launch.”

For the three-month period ended December 31, 2021, Wainwright Holdings, Inc., which comprises the Company’s largest operating segment – financial services – had revenues of $5,701,384 versus $6,149,415 a year ago. Average assets under management (“AUM”) for the fiscal 2022 second quarter amounted to $4.2 billion, versus $4.9 billion last year, resulting in operating income of $2.0 million for the quarter ended December 31, 2021, versus $2.3 million a year ago.

The Company’s other operating subsidiaries, Gourmet Foods, Printstock Products, Original Sprout and Brigadier Security Systems all experienced relatively flat revenues for the current quarter versus the prior year period, with a revenue decline of 1.8% for the entire group. As with the preceding first quarter of fiscal 2022, net income again was negatively impacted principally by global supply chain and shipping challenges for the Company’s New Zealand operations, and at California-based Original Sprout, which experienced significantly higher in-bound and out-bound freight expenses. As a result, operating income for the fiscal 2022 second quarter declined by approximately 11%, for these subsidiaries as a group, as compared with the three months ended December 31, 2020. Despite those challenges, each of these subsidiaries produced operating income and positive cash flows for the three and six months ended December 31, 2021.

Concierge Technologies’ balance sheet remains strong. Total assets at December 31, 2021 amounted to $30,876,434, compared with $31,507,680 at June 30, 2021. Cash and cash equivalents at the close of the 2022 second fiscal quarter were $13,385,452, versus $16,072,955 at June 30, 2021. Stockholders’ equity was $34,338,396 at the end of the second fiscal quarter, compared with $35,286,664 at the close of the prior fiscal year. The Company remains essentially debt free.

For the first half of fiscal 2022, consolidated revenues totaled $14,105,454, compared with $15,926,296 for the first six months of the prior fiscal year. A net loss of $857,656, equal to a loss of $.02 per share, was recorded for the six-month period ended December 31, 2021 as compared to net income of $3,571,222, or $.09 per fully diluted share, for the six months ended December 31, 2020. The loss for the current year reflects a $2.5 million settlement for the resolution of a legal matter in connection with the Company’s indirect subsidiary, United States Commodity Funds, LLC (“USCF Investments”) and United States Oil Fund, LP, which are related business units of Concierge’s Wainwright subsidiary. This expense was recorded in the quarter ended September 30, 2021 and is also the primary reason for the decline in cash and cash equivalents as December 31, 2021 as compared with June 30, 2021.

“From a corporate perspective, we remain laser-focused on putting strategies in place to achieve our long-term goal of enhancing shareholder value through sustainable, profitable growth,” said Nicholas Gerber, Chief Executive Officer. “Proceeding into the second half of our fiscal year, we look forward to continued progress on our mobile fintech app to be launched by our Marygold & Co. subsidiary. With a solid base of operations and strong cash flow provided by our established core businesses, we are positioned quite nicely to venture into the next phase of corporate growth in the rapidly emerging world of financial technology.”

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, San Clemente, Calif.-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. dur ing 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/

.

Marygold & Co. (UK) Limited, formed in the U.K. in 2021 and located in London, England for the purpose of acquiring interests in certified financial advisors and asset managers in the U.K. No acquisitions have yet been made and the company is continuing its due diligence efforts.

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 includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” ”forecast,” “anticipate,” “intend,” “plan,” “may” “will,” “could,” “should” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, including, but not limited to the launch of the Company’s fintech mobile banking app, involve significant risks and uncertainties that could cause actual results to differ materially from the expected results and, consequently, should not be relied upon as predictions of future events. These forward-looking statements, including the factors disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 22, 2021, and in the Company’s other filings with the Securities and Exchange Commission, are not exclusive. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

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)

    December 31, 2021     June 30, 2021 (1)  
                 
ASSETS  
                 
CURRENT ASSETS                
Cash and cash equivalents   $ 13,285,452     $ 16,072,955  
Accounts receivable, net     1,165,881       1,070,541  
Accounts receivable – related parties     1,782,034       2,038,054  
Inventories     2,144,681       1,951,792  
Prepaid income tax and tax receivable     1,068,143       747,343  
Investments     2,853,574       1,828,926  
Other current assets     442,470       399,524  
Total current assets     22,742,235       24,109,135  
                 
Restricted cash     13,664       13,989  
Property, plant and equipment, net     1,560,006       1,573,445  
Operating lease right-of-use asset     1,716,883       1,058,199  
Goodwill     1,043,473       1,043,473  
Intangible assets, net     2,182,817       2,341,803  
Deferred tax assets, net-U.S.     827,476       827,476  
Other assets, long – term     789,880       540,160  
Total assets   $ 30,876,434     $ 31,507,680  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
                 
CURRENT LIABILITIES                
Accounts payable, accrued expenses   $ 3,344,858     $ 3,862,874  
Expense waivers – related parties     128,748       69,684  
Operating lease liabilities, current portion     687,333       513,071  
Notes payable – related parties     603,500       603,500  
Loans – property and equipment, current portion     35,090       15,094  
Total current liabilities     4,799,529       5,064,223  
                 
LONG-TERM LIABILITIES                
Loans – property and equipment, net of current portion     491,390       379,804  
Operating lease liabilities, net of current portion     1,087,690       607,560  
Deferred tax liabilities, net-foreign     169,429       169,429  
Total long-term liabilities     1,748,509       1,156,793  
Total liabilities     6,548,038       6,221,016  
                 
STOCKHOLDERS’ EQUITY                
Preferred stock, $0.001 par value; 50,000,000 authorized                
Series B: 49,360 issued and outstanding at December 31, 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 December 31, 2021 and at June 30, 2021     37,486       37,486  
Additional paid-in capital     9,330,843       9,330,843  
Accumulated other comprehensive income     41,971       142,581  
Retained earnings     14,918,047       15,775,705  
Total stockholders’ equity     24,328,396       25,286,664  
Total liabilities and stockholders’ equity                                                                                        $ 30,876,434     $ 31,507,680  

(1) Derived from audited financial statements.

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

    Three Months Ended December 31, 2021     Three Months Ended December 31, 2020     Six Months Ended December 31, 2021     Six Months Ended December 31, 2020  
                                 
Net revenue                                
Fund management – related party   $ 5,701,384     $ 6,149,415     $ 11,358,411     $ 13,185,716  
Food products     2,108,257       2,134,402       4,468,402       4,191,974  
Security systems     642,623       617,780       1,333,253       1,297,222  
Beauty products     992,852       1,060,225       2,013,924       2,032,968  
Net revenue     9,445,116       9,961,822       19,173,990       20,707,880  
                                 
Cost of revenue     2,417,798       2,378,024       5,068,538       4,781,584  
                                 
Gross profit     7,027,318       7,583,798       14,105,452       15,926,296  
                                 
                                 
Operating expense                                
General and administrative expense     1,198,209       1,641,196       3,317,711       3,555,259  
Fund operations     1,102,237       799,658       2,203,853       1,702,498  
Marketing and advertising     690,831       742,529       1,409,486       1,540,351  
Depreciation and amortization     133,191       177,225       287,849       343,124  
Salaries and compensation     2,576,285       2,485,357       4,707,440       4,181,577  
Legal settlement                 2,500,000          
Total operating expenses     5,700,753       5,845,965       14,426,339       11,322,809  
                                 
(Loss) income from operations     1,326,565       1,737,833       (320,887 )     4,603,487  
                                 
                                 
Other (expense) income:                                
Interest and dividend income     6,088       6,799       13,484       15,442  
Interest expense     (10,085 )     (10,141 )     (20,285 )     (20,225 )
Other (expense) income     (214,981 )     55,695       (206,973 )     176,638  
Total other (expense) income, net     (218,978 )     52,353       (213,774 )     171,855  
                                 
Income (loss) before income taxes     1,107,587       1,790,186       (534,661 )     4,775,342  
                                 
Provision of income taxes     (84,252 )     (438,398 )     (322,997 )     (1,204,120 )
                                 
Net income (loss)   $ 1,023,335     $ 1,351,788     $ (857,658 )   $ 3,571,222  
                                 
Weighted average shares of common stock                                
Basic and diluted     38,473,159       38,473,159       38,473,159       38,473,159  
                                 
Net income (loss) per common share                                
Basic and diluted   $  0.03      $ 0.04     $  (0.02)     $ 0.09  

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

    Three Months Ended December 31, 2021     Three Months Ended December 31, 2020     Six Months Ended December 31, 2021     Six Months Ended December 31, 2020  
                                 
Net income (loss)   $ 1,023,335     $ 1,351,788     $ (857,658 )   $ 3,571,222  
                                 
Other comprehensive income:                                
Foreign currency translation (loss) gain     (14,442 )     297,432       (100,610 )     370,146  
Comprehensive income (loss)   $ 1,008,893     $ 1,649,220     $ (958,268 )   $ 3,941,368  

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 
FOR THE THREE AND SIX MONTH PERIODS ENDED DECEMBER 31, 2021 AND DECEMBER 31, 2020
(UNAUDITED)

Period Ending December 31, 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  
Loss on currency translation                                   (14,442 )           (14,442 )
Net income                                         1,023,335       1,023,335  
Balance at December 31, 2021     49,360     $ 49       37,485,959     $ 37,486     $ 9,330,843     $ 41,971     $ 14,918,047     $ 24,328,396  
Period Ending December 31, 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  
Gain on currency translation                                   297,432             297,432  
Net income                                         1,351,788       1,351,788  
Balance at December 31, 2020     53,032     $ 53       37,412,519     $ 37,412     $ 9,330,913     $ 225,402     $ 13,497,484     $ 23,091,264  

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

    For the Six Month Period Ended  
    December 31,  
    2021     2020  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net (loss) income   $ (857,658 )   $ 3,571,222  
Adjustments to reconcile net (loss) income to net cash provided by operating activities                
Depreciation and amortization     287,849       343,124  
Bad debt expense           14,075  
Impairment to inventory value     3,478       32,688  
Unrealized gain on investments     (29,251 )     (1,128 )
Loss (gain) on disposal of equipment     37,189       (2,122 )
Operating lease right-of-use asset – non-cash lease cost     337,850       231,879  
                 
Decrease (increase) in current assets:                
Accounts receivable     (118,395 )     (373,656 )
Accounts receivable – related party     256,020       518,364  
Prepaid income taxes and tax receivable     (324,699 )     292,905  
Inventories     (196,514 )     (149,153 )
Other current assets     (74,549 )     82,433  
(Decrease) increase in current liabilities:                
Accounts payable, accrued expenses     (486,835 )     (466,096 )
Operating lease liabilities     (341,411 )     (233,222 )
Expense waivers – related party     59,064       553,336  
Net cash (used in) provided by operating activities     (1,447,862 )     4,414,649  
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Cash paid for acquisition of business           (993,435 )
Purchase of real estate and equipment     (3,988 )     (30,213 )
Sale of investments     506,492        
Purchase of investments     (1,533,385 )     (411 )
Net cash used in investing activities     (1,030,881 )     (1,024,059 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Repayment of property and equipment loans     (7,208 )     (3,445 )
Principle payment of finance lease liability     (1,753 )      
Issuance costs pursuant to planned stock issuance     (249,720 )      
Net cash used in financing activities     (258,681 )     (3,445 )
                 
Effect of exchange rate change on cash and cash equivalents     (50,404 )     123,331  
                 
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH     (2,787,828 )     3,510,476  
                 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE     16,086,944       9,826,042  
                 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE                                                 $ 13,299,116     $ 13,336,518  
                    
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                
Cash paid during the period for:                
Interest paid   $ 8,046     $ 7,985  
Income taxes paid, net of refunds   $ 632,961     $ 859,320  
Non-cash financing and investing activities:                
Reclassification of acquisition deposit   $     $ 122,111  
Acquisition of operating right-of-use assets through operating lease liability   $ 995,805     $ 730,741  
Acquisition of equipment through finance lease liability   $ 150,625     $  

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

Concierge Technologies Inc



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