– Company continues to invest in long-term growth initiatives, with strong balance sheet, and essentially no debt –

San Clemente, Calif., May 15, 2020—Concierge Technologies, Inc. (OTCQB: CNCG), a diversified global holding firm, today announced financial results for the third fiscal quarter ended March 31, 2020.

“Results for our third quarter improved over the preceding second quarter, although were slightly below the corresponding third quarter a year ago,” said Nicholas Gerber, chairman and chief executive officer.

“As compared with last year, the company’s financial performance was principally impacted by lower average assets under management (AUM) in our USCF Investments subsidiary for most of the quarter, although AUM finished the quarter significantly higher. It was a busy period, as we continued to execute strategies to expand our business. During the third quarter, we further advanced the development of our new consumer fintech app, which we expect to launch through our recently formed Marygold & Co. subsidiary this summer. We also completed the development and launched a new Original Sprout product line, ‘Worry Free,’ which is now available at select Target stores nationwide. These growth initiatives took some up-front capital, but they are expected to produce handsome returns. We had the cash reserves in the bank to make them happen, with no borrowings or equity raises.

“We also signed a definitive agreement to acquire Printstock Products, one of the product packaging suppliers to our Gourmet Foods subsidiary in New Zealand. Unfortunately, the onset of COVID-19 has now delayed the expected closing of this proposed transaction until later this year, when travel restrictions are eased,” said Gerber. “Lastly, subsequent to the close of the third quarter, we were pleased to announce that Original Sprout entered a major new retail sales channel with introduction of select products on the e-commerce site of Costco.

“While the long-term impact of the COVID-19 pandemic on the company is still unknown, we have taken stringent cautionary steps to assure the protection of all employees, as we continue to plan for the future,” Gerber added.

For the three months ended March 31, 2020, net revenues amounted to $5.9 million, compared with $6.3 million for the prior year. Net loss for the most recent three-month period amounted to $17,236, equal to break-even per share, versus income of $75,884, also equal to break-even per share, for the comparable prior year period.

The company’s largest operating unit, USCF Investments, posted revenues of $3.0 million for the 2020 third quarter, versus $3.6 million a year ago, principally reflecting average AUM of $2.3 billion for the 2020 third quarter, versus average AUM of $2.6 billion in the same period last year. By the close of the 2020 third quarter, however, AUM had increased to $3.0 billion. USCF Investments manages nine commodity-oriented exchange traded funds (“ETFs”) and one equity traded ETF that are listed on the New York Stock Exchange.

The company’s ‘Other’ business segment, which comprised approximately 50% of total revenues in the most recent third quarter vs 42% at the same time last year, achieved a 5% 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 remained strong at quarter’s end, with cash and cash equivalents of approximately $6.0 million, total stockholders’ equity of $17.2 million, and essentially no debt.

“During the third quarter, Original Sprout paced the growth rate within our ‘Other’ business segment, with a 57% increase in revenues over the prior year, followed by an 18% revenue increase at Gourmet Foods,” said David Neibert, Concierge Technologies’ Chief Operations Officer. “Revenues were negatively impacted at our Brigadier Security Systems business by the usual Canadian winter weather disruptions, but also by adopted COVID-19 preventative measures, hampering our ability to complete installations, and resulting in a slump of approximately 20%. Overall, our diversification strategy is working quite well.”

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, sold throughout the U.S. and distributed globally through a network of international distributors.