– Strategic Initiatives to Drive Diversification and Long-Term Shareholder Value –

– Balance Sheet Remains Strong, with Essentially No Debt – 

San Clemente, Calif., February 18, 2020—Concierge Technologies, Inc. (OTCQB: CNCG), a diversified global holding firm, today announced financial results for the second fiscal quarter ended December 31, 2019.

“Results for the quarter were in line with expectations, as we continued to invest in growth initiatives for each of our core business segments,” said Nicholas Gerber, chairman and chief executive officer.

“In financial services, progress was made during the quarter developing a new fintech product that we expect to launch this spring under the name, ‘Marygold’. Our hair and skin care company completed the development of a new, branded line of vegan haircare products, ‘Worry Free,’ and subsequent to the end of the second quarter launched the line at a large national retailer, representing entry into a new channel for us.  We also built a solid backlog for our Brigadier Security business, and in alignment with our strategic growth initiatives, we continued to explore acquisition targets.

“Concierge Technologies has had excellent growth since its formation as a holding company, just five years ago,” added Gerber. “We are staying true to our mission of not being reliant on any one business or sector by building a profitable, diverse organization through organic growth, acquisitions and new ventures, and creating tangible long-term value for all of our stakeholders.”

For the three months ended December 31, 2019, revenues were $5.8 million, compared with $6.7 million for the prior year. Net loss for the most recent three-month period amounted to $74,914, equal to break-even per share, versus income of $88,518, also equal to break-even per share, for the comparable prior year period.

Results for the fiscal 2020 second quarter, as anticipated, were impacted primarily by lower assets under management (AUM) at the company’s USCF Investments fund management subsidiary as compared to the prior year.  USCF Investments manages nine commodity-oriented and two equity exchange-traded funds (ETFs) that are listed on the New York Stock Exchange, currently with approximately $2.2 billion in assets under management.

The company’s Other business segment, which comprised approximately 51 percent of total revenues in the most recent second quarter vs 41 percent of total revenues in last year’s second quarter, achieved a 7% improvement in revenues for the fiscal 2020 period. The Other segment is comprised of Gourmet Foods, Brigadier Security Systems and Original Sprout.

Concierge’s balance sheet further strengthened at the end of the second fiscal quarter. Cash and cash equivalents remained steady at approximately $6.5 million, after the cash investment in our the new fintech venture and payment of annual employee incentive rewards at the subsidiary level. Total stockholders’ equity increased to $17.5 million at December 31, 2019 from $17.2 million at June 30, 2019. The company has essentially no debt.

“Operating results for USCF held fairly steady throughout the second quarter,” said Stuart Crumbaugh, chief financial officer of Concierge Technologies. “We believe the downward trend cycle in assets under management is coming to an end, with the eventual up-swing anticipated as the historical nature of commodities in general would suggest. Regardless, our business model operates well in fluctuating markets, since many of our expenses are variable in nature and move in concert with revenues to sustain profitability at lower levels of AUM.”

“Our ‘Other’ operating units had a productive quarter despite some one-time expenses,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “Original Sprout successfully made the transition to nationwide retail distribution for their new ‘Worry Free’ line of hair care products, and Gourmet Foods had a near-record holiday season of sales. Brigadier Security Systems was seasonally hampered by frigid cold in Saskatoon, which, in turn, helped build a solid backlog for the next quarter.  Our Other operating units were all cash flow positive, and we only posted a small net loss on a consolidated basis, due, in part, to non-cash expenses, including $150,000 in depreciation expense for the quarter,” Neibert said.

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.

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.

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 13 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, Singapore, Hong Kong, Malaysia, New Zealand, Australia and Canada. A second line of products, “Worry Free” was created to target mainstream U.S. nationwide consumers and began distribution in January 2020. 

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, security systems and beauty products. Offices and manufacturing operations are in the U.S., New Zealand 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 and future financial and operating performance. Such forward-looking statements, including, but not limited to, adding new distribution channels and an expectation for the USCF operating subsidiary to benefit when the cyclical trend for commodities shifts upward, should not be read as a guarantee 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 based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.

For a more detailed description of the risk factors and uncertainties affecting Concierge Technologies or its subsidiary companies, and more detailed information about the individual operating entities, please refer to the Company’s Securities and Exchange Commission filings, which are available on the Company’s website, (https://marygoldandco.net), or at www.sec.gov.

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