CORRECTION: Concierge Technologies Reports Fiscal 2020 Financial Results

UPDATED BALANCE SHEET DATA

-Company Files Annual Report Form 10-K with Profitable Results-

SAN CLEMENTE, CA / ACCESSWIRE / September 29, 2020 / Concierge Technologies, Inc. (OTCQB:CNCG), a diversified global holding firm, today announced financial results for the fiscal year ended June 30, 2020.

For the year ended June 30, 2020, the company reported revenues of $26.7 million, compared with $26.9 million for the prior year. Concierge reported net income of $1.77 million, equal to $0.05 per fully diluted share, for fiscal 2020, versus $0.3 million, or $.01 per fully diluted share, for the prior year.

Concierge's balance sheet remained strong at fiscal year-end, with $17.6 million in current assets, of which $9.8 million are held in cash and cash equivalents, essentially no debt, and total assets of $24.4 million.

The company said that, as expected, results for its operating subsidiaries in the food service, hair and skin care, and security monitoring businesses lagged somewhat in the 4th quarter of fiscal 2020 due to the impact of the COVID-19 pandemic on a global scale. Despite the 4th quarter slow-down, these businesses all reported profits and near normal operating results. Its financial services business, Wainwright Holdings is the holding company for United States Commodity Funds LLC and USCF Advisers, LLC (together USCF). USCF currently manages ten exchange-traded funds and exchange-traded products that are all listed on the New York Stock Exchange. This year has seen significant inflows into commodity funds, including USCF's, raising assets under management ("AUM") from $2.7 billion in 2019 to near $6 billion as of June 30, 2020. Income to USCF is related to AUM through management fees.

Concierge said each of its other business units-Gourmet Foods, Brigadier Security Systems and Original Sprout-were all deemed essential businesses within their jurisdictions of New Zealand, Canada and California, respectively, in regard to COVID-19 lockdown orders. None of these businesses were shut down for any period of time and each of them adapted as required to meet safety standards and to continue supplying their customers. Each had a different approach: Gourmet Foods began producing more frozen product to supply households; Brigadier Security Systems took on more work in public buildings and commercial spaces than residential; Original Sprout added an online sales channel to market and also began producing hand sanitizer. Each of them employed cost cutting measures enabling them to maintain projected profitability on reduced gross revenues.

"I know I've said this before," commented Nicholas Gerber, Chief Executive Officer of Concierge Technologies. "but the ongoing pandemic has further proven to us that our strategy of creating a diverse, global, holding company is working. Despite entering one of the worst, and most confusing, economic times in recent memory, Concierge continues to be strong and profitable. We're going to keep on doing what we do, building a talented management team around a solid, high quality, platform from which to grow organically or by acquisition of other profitable companies."

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 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.

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, growing the business platform and an expectation for its subsidiaries to rebound, or AUM to continue to rise, 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, (http://www.conciergetechnology.net), or at www.sec.gov.

For further information contact:

David Neibert, COO
dneibert@conciergetechnology.net
Tel: 888.805.2229

FINANCIAL TABLES ON FOLLOWING PAGES
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 
June 30, 2020
 
 
June 30, 2019
 

ASSETS
 

CURRENT ASSETS

Cash and cash equivalents

 
$
9,813,188
 
 
$
6,481,815
 

Accounts receivable, net

 
 
717,841
 
 
 
939,649
 

Accounts receivable – related parties

 
 
2,610,917
 
 
 
1,037,146
 

Inventories

 
 
1,174,603
 
 
 
1,008,662
 

Prepaid income tax and tax receivable

 
 
857,793
 
 
 
1,754,369
 

Investments

 
 
1,820,516
 
 
 
3,756,596
 

Other current assets

 
 
603,944
 
 
 
546,105
 

Total current assets

 
 
17,598,802
 
 
 
15,524,342
 

Restricted cash

 
 
12,854
 
 
 
13,436
 

Property, plant and equipment, net

 
 
1,197,192
 
 
 
757,014
 

Operating lease right-of-use assets

 
 
733,917
 
 
 
–
 

Goodwill

 
 
915,790
 
 
 
915,790
 

Intangible assets, net

 
 
2,541,285
 
 
 
2,659,723
 

Deferred tax assets, net

 
 
900,878
 
 
 
859,696
 

Other assets, long – term

 
 
523,607
 
 
 
523,607
 

Total assets

 
$
24,424,325
 
 
$
21,253,608
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 

CURRENT LIABILITIES

Accounts payable and accrued expenses

 
$
2,843,616
 
 
$
2,867,081
 

Expense waivers – related parties

 
 
421,892
 
 
 
325,821
 

Current portion of operating lease liabilities

 
 
323,395
 
 
 
–
 

Notes payable – related parties

 
 
3,500
 
 
 
3,500
 

Loans-property and equipment, current portion

 
 
13,196
 
 
 
26,241
 

Total current liabilities

 
 
3,605,599
 
 
 
3,222,643
 

LONG TERM LIABILITIES

Notes payable – related parties

 
 
600,000
 
 
 
600,000
 

Loans-property and equipment, net of current portion

 
 
359,845
 
 
 
61,057
 

Long term lease liabilities, net of current portion

 
 
447,062
 
 
 
–
 

Deferred tax liabilities

 
 
261,923
 
 
 
176,578
 

Total liabilities

 
 
5,274,429
 
 
 
4,060,278
 

STOCKHOLDERS' EQUITY

Preferred stock, $0.001 par value; 50,000,000 authorized

Series B: 53,032 issued and outstanding at June 30, 2020 and at June 30, 2019

 
 
53
 
 
 
53
 

Common stock, $0.001 par value; 900,000,000 shares authorized; 37,412,519 shares issued and outstanding at June 30, 2020 and 37,237,519 at June 30, 2019

 
 
37,412
 
 
 
37,237
 

Additional paid-in capital

 
 
9,330,913
 
 
 
9,178,838
 

Accumulated other comprehensive (loss) income

 
 
(144,744
)
 
 
(175,659
)

Retained earnings

 
 
9,926,262
 
 
 
8,152,861
 

Total stockholders' equity

 
 
19,149,896
 
 
 
17,193,330
 

Total liabilities and stockholders' equity

 
$
24,424,325
 
 
$
21,253,608
 

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

 
Year Ended
 
 
Year Ended
 

 
June 30, 2020
 
 
June 30, 2019
 

Net revenue

Fund management – related party

 
$
15,459,061
 
 
$
15,021,439
 

Food products

 
 
4,745,821
 
 
 
4,747,358
 

Security systems

 
 
2,660,153
 
 
 
3,558,580
 

Beauty products and other

 
 
3,883,953
 
 
 
3,621,246
 

Net revenue

 
 
26,748,988
 
 
 
26,948,623
 

Cost of revenue

 
 
6,483,171
 
 
 
6,936,421
 

Gross profit

 
 
20,265,817
 
 
 
20,012,202
 

Operating expense

General and administrative expense

 
 
4,447,563
 
 
 
4,205,389
 

Fund operations

 
 
3,176,214
 
 
 
4,494,001
 

Marketing and advertising

 
 
2,601,104
 
 
 
2,910,447
 

Depreciation and amortization

 
 
601,826
 
 
 
702,320
 

Salaries and compensation

 
 
7,523,083
 
 
 
6,944,457
 

Total operating expenses

 
 
18,349,790
 
 
 
19,256,614
 

Income from operations

 
 
1,916,027
 
 
 
755,588
 

Other income (expense):

Other income (expense)

 
 
365,250
 
 
 
(484,028
)

Interest and dividend income

 
 
96,186
 
 
 
366,796
 

Interest expense

 
 
(41,100
)
 
 
(29,493
)

Total other income (expense), net

 
 
420,336
 
 
 
(146,725
)

Income before income taxes

 
 
2,336,363
 
 
 
608,863
 

Provision of income taxes

 
 
(562,962
)
 
 
(347,014
)

Net income

 
$
1,773,401
 
 
$
261,849
 

Weighted average shares of common stock

Basic

 
 
37,390,524
 
 
 
32,588,418
 

Diluted

 
 
38,451,164
 
 
 
38,298,159
 

Net income per common share

Basic

 
$
0.05
 
 
$
0.01
 

Diluted

 
$
0.05
 
 
$
0.01
 

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 
Year Ended
 
 
Year Ended
 

 
June 30, 2020
 
 
June 30, 2019
 

Net income

 
$ 
1,773,401
 
 
$ 
261,849
 

Other comprehensive income (loss):

Foreign currency translation gain (loss)

 
 
30,915
 
 
 
(44,516
)

Comprehensive income

 
$ 
1,804,316
 
 
$ 
217,333
 

SOURCE: Concierge Technologies, Inc.

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