Skip Navigation

Concierge Technologies Reports Financial Results for the Three and Six Months Ended December 31, 2021

San Clemente, CA - (NewMediaWire) - February 14, 2022 - 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. 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/.


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.