The following discussion and analysis should be read in conjunction with the
financial statements and the accompanying notes thereto and is qualified in its
entirety by the foregoing and by more detailed financial information appearing
elsewhere in this annual report on Form 10-K. See "Consolidated Financial
Statements."



Introduction



Concierge Technologies, Inc. ("Concierge") or the ("Company") conducts business
through its wholly-owned operating subsidiaries operating in the U.S., New
Zealand and Canada. The operations of the Company's wholly-owned subsidiaries
are more particularly described herein but are summarized as follows:



? Wainwright Holdings, Inc. ("Wainwright"), a U.S. based company, is the sole

member of two investment services limited liability company subsidiaries that

manages, operates or is an investment advisor to exchange traded funds

organized as limited partnerships or investment trusts that issue shares that

trade on the NYSE Arca stock exchange.

? Gourmet Foods, Ltd. ("Gourmet Foods"), a New Zealand based company,

manufactures and distributes New Zealand meat pies on a commercial scale.


  ? Brigadier Security Systems (2000) Ltd. ("Brigadier"), a Canadian based
    company, sells and installs commercial and residential alarm monitoring
    systems.
  ? Kahnalytics, Inc. dba/Original Sprout ("Original Sprout"), a U.S. based
    company, is engaged in the wholesale distribution of hair and skin care
    products under the brand name Original Sprout on a global scale.

? Marygold & Co., ("Marygold") a newly formed U.S. based company, established by

Concierge to explore opportunities in the financial technology ("Fintech")

space, still in development stage as of June 30, 2020 and estimated to launch


    during the coming fiscal year.




Because the Company conducts its businesses through its wholly-owned operating
subsidiaries, the risks related to our wholly-owned subsidiaries are also risks
that impact the Company's financial condition and results of operations.  See,
"Note 2. Summary of Significant Accounting Policies / Major Customers and
Suppliers - Concentration of Credit Risk" in the consolidated financial
statements for more information. The emergence of a novel coronavirus on a
global scale, known as COVID-19, during the current year has had a nominal
impact on our operations which varied from company to company. Overall, the
effects of dealing with COVID-19 realized through social isolation, stay-at-home
orders, shuttering of non-essential businesses and similar initiatives took
effect on our areas of operation at such a late date in the fiscal year that the
consolidated revenues were not significantly impacted. The financial risk to
future operations is largely unknown, (refer to Part I, Item 1A, for further
details.)



Critical Accounting Policies


A summary of our significant accounting policies is described in detail in Note 2 to our Consolidated Financial Statements.


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Plan of Operation for the Next Twelve Months





Our plan of operation for the next twelve months is to apply necessary
resources, which may include experienced personnel, cash, or synergistic
acquisitions made with cash, equity or debt, into growing each of our business
units to their potential. Original Sprout is in the initial stages of
transitioning from a largely boutique offering to a more mainstream product and
as such we anticipate measurable growth in revenues for the coming years.
Additionally, we are expecting moderate growth in Brigadier through focused
management initiatives and consolidation within the security industry coupled
with expanded product offerings. Similarly, we expect Gourmet Foods to be
operating more efficiently under current management and continue to increase
market share through additional product offerings and channels to market,
including operation of its newly acquired subsidiary, Printstock Products Ltd.,
in New Zealand (see Note 16 - Subsequent Events). Wainwright will continue to
develop innovative and new fund products to grow its portfolio. In addition to
our long-term mission that is an acquisition strategy based upon identifying and
acquiring profitable, mature, companies of a diverse nature and with in-place
management that produces increased revenue streams, the Company is also focused
upon building expertise and developing Fintech opportunities in the financial
services sector. In a more general sense, the Company is characterizing its
business in three categories; 1) financial services, 2) other operating units,
and 3) corporate. The corporate category includes the expenses incurred for
maintaining our public reporting status and management as well as the
expenditures towards developing newly formed ventures such as Marygold. The
purpose is to isolate the cyclical nature of the financial services business
from our other industry segments. As revenues from financial services fluctuate
over time due to varying performance of the commodities markets, our other
operations are expected to be stable and sustainable by comparison. By these
initiatives we seek to:


? continue to gain market share for our wholly-owned subsidiaries' areas of

operation,

? increase our gross revenues and realize net operating profits,

? lower our operating costs by unburdening certain selling expenses to third

party distributors,

? have sufficient cash reserves to pay down accrued expenses and losses,

? attract parties who have an interest in selling their privately held companies

to us,

? achieve efficiencies in accounting and reporting through adoption of standards

used by all subsidiaries on a consistent basis,

? strategically pursue additional company acquisitions, and

? explore opportunities as may present themselves in the Fintech space,

including the launch of a mobile app by Marygold during the coming fiscal


    year.




Results of Operations



Concierge and Subsidiaries

For the Year Ended June 30, 2020 Compared to the Year Ended June 30, 2019





Financial Summary



The table below summarizes each of Concierges subsidiaries into one of two
categories. The Wainwright business is included in the Financial Services
columns and all other subsidiaries, including Gourmet, Brigadier, and Original
Sprout in the Other Operating Units columns. Corporate expenses are included in
the Concierge Corporate columns, including the losses in the development stage
of Marygold.



($'s in thousands)                                  Financial Services                                Other Operating Units                            

   Concierge Corporate                                     Consolidated
                                         2020         2019             Change               2020         2019              Change               2020         2019              Change               2020         2019              Change
                                                                 $('000)%                                            $('000)%                                            $('000)%                                            $('000)%
Revenue                                $ 15,459     $ 15,021     $     438

3 % $ 11,290 $ 11,928 $ (638 ) (5 )% -


          -              -         -      $ 26,749     $ 26,949     $     (200 )      (1 )%
% of total revenue                           58 %         56 %           -         2 %          42 %         44 %            -        (2 )%          -            -              -         -      $      -     $      -              -         -
Cost of revenue                               -            -             -         -      $  6,483     $  6,936     $     (453 )      (7 )%          -            -              -         -      $  6,483     $  6,936     $     (453 )      (7 )%
Gross profit                           $ 15,459     $ 15,021     $     438

3 % $ 4,807 $ 4,992 $ (185 ) (4 )% -

           -              -         -      $ 20,266     $ 20,013     $      253         1 %
Operating expenses                     $ 12,769     $ 14,095     $  (1,326 

) (9 )% $ 4,024 $ 3,950 $ 74 2 % $ 1,557

$ 1,212 $ 345 28 % $ 18,350 $ 19,257 $ (907 ) (5 )% % of total operating expenses

                69 %         73 %                    (4 )%         22 %         21 %            1 %       1 %           8 %          6 %            2 %       2 %           -            -              -         -
Income (loss) from operations          $  2,690     $    926     $   1,764

190 % $ 783 $ 1,042 $ (259 ) (25 )% $ (1,557 ) $ (1,212 ) $ (345 ) 28 % $ 1,916 $ 756 $ 1,160 153 % Other (expense) / income

$    179     $   (148 )   $     327

221 % $ 233 $ 25 $ 208 832 % $ 8

$ (24 ) $ 32 134 % $ 420 $ (147 ) $ 567 386 % Income (loss) before income taxes $ 2,869 $ 778 $ 2,091

269 % $ 1,016 $ 1,067 $ (51 ) (5 )% $ (1,549 ) $ (1,236 ) $ (313 ) (25 )% $ 2,336 $ 609 $ 1,727 284 %






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Revenue and Operating Income



Consolidated revenue for the year ended June 30, 2020 was $26.7 million
representing a $0.2 million decrease from the prior year revenue of $26.9
million. While net revenues overall remained relatively unchanged, there were
significant differences in the fourth quarter revenues of Wainwright and
Brigadier. While Wainwright's revenues in the fourth quarter exceeded prior year
comparison revenues due to the effects of historical price drops in global oil
prices on AUM, Brigadier had corresponding lower revenues due to the lockdowns
imposed by the COVID-19 response. Concierge produced an operating income for the
year ended June 30, 2020 of $1.9 million as compared to $0.8 million for the
year ended June 30, 2019. This represents an increase in operating income of
$1.2 million for the year ended June 30, 2020 when compared to the year ended
June 30, 2019 or approximately 154%. The increase in operating income was
primarily attributable to higher fund management revenue from Wainwright due to
higher AUM.



Other Income (Expenses)



Other income (expense) for the years ended June 30, 2020 and 2019 were
$0.4 million and ($0.1) million, respectively, resulting in a net income before
income tax of $2.3 million and $0.6 million, respectively. After giving
consideration to currency translation gain of $31 thousand our comprehensive
income for the year ended June 30, 2020 was $1.8 million as compared to the year
ended June 30, 2019 where there was a currency translation loss of $45 thousand
resulted in comprehensive income of $0.2 million. Comprehensive gain and loss
are comprised of fluctuations in foreign currency exchange rates and effects in
the valuation of our holdings in New Zealand and Canada.



Income Tax



Provision for income tax for the years ended June 30, 2020 and 2019 are
$0.6 million and $0.3 million, respectively, primarily attributable to our
United States operations through our Wainwright subsidiary. The Company files
income taxes as a combined group and records most income taxes at the Concierge
level. Income tax expense recorded at the Concierge level totaled $0.4 million
for the year ended June 30, 2020, while a tax benefit of $15 thousand was
recorded for the year ended June 30, 2019.



Net Income



Overall, the net income between the year ended June 30, 2020 as compared to the
year ended June 30, 2019 increased by approximately $1.5 million or
approximately 577% to approximately $1.8 million. The increase in profits for
the year ended June 30, 2020 was primarily attributable to higher fund
management revenue from Wainwright due to a higher amount of AUM.





Wainwright Holdings



Wainwright was founded as a holding company in March 2004 as a Delaware
corporation with one subsidiary, Ameristock Corporation, which was an investment
adviser to Ameristock Mutual Fund, Inc., a registered 1940 Act large cap value
equity fund. In January 2010, Ameristock Corporation was spun off as a
standalone company. In May 2005, USCF was formed as a single member limited
liability company in the state of Delaware. In June 2013, USCF Advisers was
formed as a Delaware limited liability company and in July 2014, was registered
as an investment adviser under the Investment Advisers Act of 1940, as amended.
In November 2013, the Advisers board of managers formed USCF ETF Trust ("ETF
Trust") and in July 2016, the USCF Mutual Funds Trust ("Mutual Funds Trust" and
together with "ETF Trust" the "Trusts") both as open-end management investment
companies registered under the Investment Company Act of 1940, as amended ("the
1940 Act"). The Trusts are authorized to have multiple segregated series or
portfolios. Wainwright owns all of the issued and outstanding limited liability
company membership interests of its subsidiaries, USCF and USCF Advisers, each
a Delaware limited liability company and are affiliated companies.  USCF serves
as the general partner ("General Partner") for various limited partnerships
("LP") and sponsor ("Sponsor") as noted below. USCF and USCF Advisers are
subject to federal, state and local laws and regulations generally applicable to
the investment services industry. USCF is a commodity pool operator ("CPO")
subject to regulation by the Commodity Futures Trading Commission (the "CFTC")
and the National Futures Association (the "NFA") under the Commodities Exchange
Act ("CEA"). USCF Advisers is an investment adviser registered under the
Investment Advisers Act of 1940, as amended and has registered as a CPO under
the CEA. Exchange traded products ("ETPs") issued or sponsored by USCF are
required to be registered with the Securities and Exchange Commission (the
"SEC") in accordance with the Securities Act of 1933. Wainwright is the holding
company for USCF and USCF Advisers, which collectively operate ten exchange
traded products ("ETPs") and exchange traded funds ("ETFs") listed on the NYSE
Arca Inc. ("NYSE Arca") with a total of approximately $6 billion in assets under
management ("AUM") as of June 30, 2020. Wainwright, together with
its subsidiaries USCF and USCF Advisers, are collectively referred to as
"Wainwright" hereafter.



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USCF is currently the General Partner of the following Securities Act of 1933 commodity based funds and Sponsor ("Sponsor") of the United States Commodity Index Funds Trust ("USCIF Trust"), and each series thereof, and the USCF Funds Trust ("USCF Funds Trust"):

USCF as General Partner for the following funds: United States Oil Fund, LP ("USO") Organized as a Delaware limited partnership


                                    in May 2005

United States Natural Gas Fund, LP Organized as a Delaware limited partnership ("UNG")

                             in November 2006

United States Gasoline Fund, LP Organized as a Delaware limited partnership ("UGA")

                             in April 2007

United States 12 Month Oil Fund, LP Organized as a Delaware limited partnership ("USL")

                             in June 2007

United States 12 Month Natural Gas Organized as a Delaware limited partnership Fund, LP ("UNL")

                    in June 2007

United States Brent Oil Fund, LP Organized as a Delaware limited partnership ("BNO")

                             in September 2009

USCF as fund Sponsor - each a series within the USCIF Trust United States Commodity Index Funds A series trust formed in Delaware December Trust ("USCIF Trust")

               2009

United States Commodity Index Fund A commodity pool formed in April 2010 and ("USCI")

                            made public August 2010

United States Copper Index Fund A commodity pool formed in November 2010 and ("CPER")

                            made public November 2011
USCF as fund Sponsor - each a series within the USCF Funds Trust:
USCF Funds Trust ("USCF Funds       A series trust formed in Delaware March 2016
Trust")
United States 3X Oil Fund ("USOU")  A commodity pool formed in May 2017 and made
                                    public July 2017; Liquidated December 

18,


                                    2019
United States 3X Short Oil Fund     A commodity pool formed in May 2017 and made
("USOD")                            public July 2017; Liquidated December 18,
                                    2019




USCF Advisers serves as the investment adviser to the fund(s) listed below
within the Trusts and has overall responsibility for the general management and
administration for the Trusts. Pursuant to the current Investment Advisory
Agreements, USCF Advisers provides an investment program for the Trusts' fund(s)
and manages the investment of the assets.



Advisers as fund manager for each series within the USCF ETF Trust and the USCF
Mutual Funds Trust:
USCF ETF Trust ("ETF Trust")        Organized as a Delaware statutory trust in
                                    November 2013
USCF SummerHaven SHPEI Index Fund   Fund launched November 30, 2017
("BUY")
USCF SummerHaven SHPEN Index Fund   Fund launched November 30, 2017; Liquidated
("BUYN")                            May 6, 2020

USCF SummerHaven Dynamic Commodity Fund launched May 2018 Strategy No K-1 Fund

All USCF funds and the Trusts' funds are collectively referred to as the "Funds" hereafter.





Wainwright's revenue and expenses are primarily driven by the amount of AUM.
Wainwright earns monthly management and advisory fees based on agreements with
each Fund as determined by the contractual basis point management fee structure
in each agreement multiplied by the average AUM over the given period. Many of
the company's expenses are dependent upon the amount of AUM. These variable
expenses include Fund administration, custody, accounting, transfer agency,
marketing and distribution, and sub-adviser fees and are primarily determined by
multiplying contractual fee rates by AUM. Total Operating Expenses are grouped
into the following financial statement line items: General and Administrative,
Marketing, Operations and Salaries and Compensation.



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For the Year Ended June 30, 2020, Compared to the Year Ended June 30, 2019





Revenue



Average AUM for the year ended June 30, 2020 was at $3.0 billion, as compared to
approximately $2.7 billion from the year ended June 30, 2019 primarily due to an
increase in USO, BNO and USL AUM. As a result, the revenues from management and
advisory fees increased by approximately $0.4 million, or 3%, to $15.4 million
for the year ended June 30, 2020 as compared to the year ended June 30, 2019
where revenues from management and advisory fees totaled $15.0 million.



Expenses



Wainwright's total operating expenses for year ended June 30, 2020 decreased by
$1.3 million to $12.8 million, or approximately 9%, from $14.1 million for the
year ended June 30, 2019. Variable expenses, as described above, decreased by
$1.2 million over the respective twelve-month period due to due to lower AUM for
the first three quarters of the fiscal year which reduced variable marketing and
distribution expenses, sub-advisory fees and other variable costs. General and
Administrative expenses increased $0.3 million to $2.4 million for the year
ended June 30, 2020 from $2.1 million for the year ended June 30, 2019 due to
increases in expense waiver and legal and professional expenses. Total marketing
expenses decreased $0.3 million to $2.1 million for the year ended June 30,
2020 as compared to the prior year period due to a decrease of in advertising
and marketing conferences. Other Operating expenses decreased by $0.3 million
primarily due to lower license fees. Employee Salaries and Compensation expenses
were approximately $4.9 million and $4.8 million, an increase of $0.1
million, for the years ended June 30, 2020 and June 30, 2019, respectively, due
to accrued bonuses and small increases in annual compensation.



Income



Income before income taxes for the year ended June 30, 2020 increased $2.1
million to $2.9 million from $0.8 million for year ended June 30, 2019 due to
$0.4 million increase in revenue as a result of higher AUM, in addition to
a $1.4 million  reduction in operating expenses along with a decrease of $0.3
million in other expenses.



Gourmet Foods, Ltd.



Gourmet Foods Limited ("Gourmet Foods"), was organized in its current form in
2005 (previously known as Pats Pantry Ltd). Pats Pantry was founded in 1966 to
produce and sell wholesale bakery products, meat pies and patisserie cakes and
slices, in New Zealand. Gourmet Foods, located in Tauranga, New Zealand, sells
substantially all of its goods to supermarkets and service station chains with
stores located throughout New Zealand. Gourmet Foods also has a large number of
smaller independent lunch bars, cafes and corner dairies among the customer
list, however they comprise a relatively insignificant dollar volume in
comparison to the primary accounts of large distributors and retailers.



Gourmet Foods operates exclusively in New Zealand and thus the New Zealand
dollar is its functional currency. In order to consolidate Concierge's reporting
currency, the US dollar, with that of Gourmet Foods, Concierge records foreign
currency translation adjustments and transaction gains and losses in accordance
with ASC 830-30. The translation of New Zealand currency into U.S. dollars is
performed for balance sheet accounts using the exchange rates in effect at the
balance sheet date and for revenue and expense accounts using a weighted average
exchange rate during the period. Gains and losses resulting from foreign
currency translations are included in foreign currency translation (loss)
gain on the Consolidated Statements of Comprehensive Income as well as
accumulated other comprehensive (loss) income found on the Consolidated Balance
Sheets.


For the Year Ended June 30, 2020, Compared to the Year Ended June 30, 2019





Revenue



Net revenues for the year ended June 30, 2020 were $4.7 million with cost of
goods sold of $3.2 million resulting in a gross profit of $1.5 million as
compared to the year ended June 30, 2019 where net revenues were $4.7 million;
cost of goods sold were $3.3 million; and gross profit was $1.4 million.



Expenses



General, administrative and selling expenses, including wages and marketing, for
the years ended June 30, 2020 and 2019 were $1.1 million and $1 million
producing operating income of $0.4 million and $0.4 million, respectively, or
approximately 8% net operating profit for 2020, 9% for 2019. The depreciation
expense and other income (expense) totaled approximately $38 thousand for the
year ended June 30, 2020 as compared to $0.4 million for the year ended June 30,
2019.



Income



Income for the year ended June 30, 2020, after depreciation expense of $0.2
million and other income of $0.2 million, resulted in approximately $0.4 million
before income tax provision of approximately $28 thousand resulted in a net
income of approximately $0.3 million as compared to a net loss of $13 thousand
for the year ended June 30, 2019. Contributing to the net income was a tax-free
government wage subsidy of approximately NZ$0.2 million (US$0.1 million) in
support of the COVID-19 lockdowns imposed on employees. Overall, net profit
margins for the comparative periods are consistent and differences are
attributed to depreciation expense, varying income tax provisions and the
fluctuation of currency exchange rates with the New Zealand dollar.



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Brigadier Security Systems (2000) Ltd.

Brigadier Security Systems (2000) Ltd. ("Brigadier") was founded in 1985 and
through internal growth and acquisitions the core business of Brigadier began in
1998. Today Brigadier is the largest SecurTek Monitoring Solutions Inc dealer in
Saskatchewan. With offices in both major urban areas of Regina (dba Elite
Security Systems (2005) Ltd.) and Saskatoon. SecurTek is owned by SaskTel which
is Saskatchewan's leading Information and Communications Technology (ICT)
provider with approximately 1.35 million customer connections across Canada.
Brigadier is also a certified integrator for Avigilon Access Control and Video,
Bosch Intrusion, Gallagher Access Control, Honeywell Access Control and
Intrusion, Kantech Corporate Access Control and the largest independent security
contractor in the province. Brigadier provides comprehensive security solutions
including access control, IP video systems, ULC certified fire alarms, and
intrusion alarms to home and business owners as well as government offices,
schools and public buildings. Brigadier typically sells hardware to customers
and brokers a 24/7 monitoring of their premises. The contract for monitoring the
premises is typically supported by SecurTek, who pays Brigadier a monthly
maintenance and support fee for each contract remaining in effect.



Brigadier operates exclusively in Canada and thus the Canadian dollar is its
functional currency. In order to consolidate Concierge's reporting currency, the
U.S. dollar, with that of Brigadier, Concierge records foreign currency
translation adjustments and transaction gains and losses in accordance with ASC
830-30. The translation of Canadian currency into U.S. dollars is performed for
balance sheet accounts using the exchange rates in effect at the balance sheet
date and for revenue and expense accounts using a weighted average exchange rate
during the period.



Gains and losses resulting from foreign currency translations are included in
foreign currency translation (loss) gain on the Consolidated Statements of
Comprehensive Income as well as accumulated other comprehensive (loss) income
found on the Consolidated Balance Sheets.



For the Year Ended June 30, 2020, Compared to the Year Ended June 30, 2019





Revenue



Net revenues for the year ended June 30, 2020 were $2.7 million with cost of
goods sold recorded as approximately $1.2 million, resulting in a gross profit
of approximately $1.5 million with a gross margin of approximately 56% as
compared to the year ended June 30, 2019 where net revenues were approximately
$3.6 million with cost of goods sold of $1.6 million and a gross profit of $1.9
million, or approximately 54%.



Expenses



General, administrative and selling expenses for the year ended June 30,
2020 were $1.2 million producing an operating profit of $0.3 million or
approximately 12% as compared to the year ended June 30, 2019 where operating
profits were $0.6 million, or approximately 15%, with general, administrative
and selling expenses of $1.4 million.



Income



Other expense comprised of depreciation, income tax, interest income, other
income, and gain on sale of assets totaled approximately $12 thousand for the
year ended June 30, 2020 resulting in income after income taxes of approximately
$0.3 million as compared to income after income taxes of approximately $0.4
million for the year ended June 30, 2019 where other expense totaled $145
thousand. Contributing to the net income were wage subsidies in the amount of
approximately $0.1 million received by Brigadier from the Canada government.



Original Sprout



Kahnalytics was founded in 2015 and adopted the dba/Original Sprout in December
2017. Original Sprout formulates and packages various hair and skin care
products that are 100% vegan, tested safe and non-toxic, and marketed globally
through distribution networks to salons, resorts, grocery stores, health food
stores, e-tail sites and on the company's website. The company operates from
warehouse and sales offices located in San Clemente, CA, USA.



For the Year Ended June 30, 2020, Compared to the Year Ended June 30, 2019





Revenue



Net revenues for the year ended June 30, 2020 were $3.9 million with cost of
goods sold recorded as approximately $2.1 million resulting in a gross profit of
approximately $1.8 million and a gross margin of approximately 46% compared to
the year ended June 30, 2019 were net revenues totaled $3.6 million with cost of
goods sold recorded as approximately $2 million resulting in a gross profit of
approximately $1.6 million and a gross margin of approximately 46%.



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Expenses



General, administrative and selling expenses for the years ended June 30,
2020 and 2019 were approximately $1.2 million and $0.9 million, respectively,
resulting in an operating income of approximately $0.5 million and $0.7 million
or approximately 13% and 20%, respectively.



Income


After consideration given to income tax provision, other income, and depreciation expense, the net income for the years ended June 30, 2020 and 2019 were approximately $0.2 million and $0.4 million, respectively.

Liquidity and Capital Resources





Concierge is a holding company that conducts its operations through its
subsidiaries. At its holding-company level, its liquidity needs relate to
operational expense, the funding of additional business acquisitions and new
investment opportunities. Our operating subsidiaries' principal liquidity
requirements arise from cash used in operating activities, debt service, and
capital expenditures, including purchases of equipment and services, operating
costs and expenses, and income taxes.



As of June 30, 2020, we had $9.8 million of cash and cash equivalents on a consolidated basis as compared to $6.5 million as of June 30, 2019. The increase in cash was due to an increase in net income.





During the past five fiscal years combined, Concierge has invested approximately
$7 million in cash towards purchasing and assimilating Gourmet Foods, Brigadier
Security Systems and the Original Sprout assets into the Concierge Technologies
group of companies as well as the acquisition through a stock-for-stock exchange
of Wainwright, which provides a significant revenue stream and value. We have
also invested approximately $0.5 million in the development of Fintech
applications through our newly organized subsidiary, Marygold. Despite these
cash investments, our working capital position remains strong at $14 million and
our position has strengthened year-to-year. Management forecasts Wainwright,
Gourmet Foods, Brigadier and Original Sprout to all produce a profit during the
coming fiscal year and the realization of those profits by Concierge is not
expected to be significantly impacted by foreign currency fluctuations against
the U.S. dollar during the period. While Concierge intends to maintain and
improve its revenue stream from wholly owned subsidiaries, Concierge continues
to pursue acquisitions of other profitable companies which meet its target
profile, including recently acquired Printstock Products Ltd. in New Zealand.
Provided Concierge's subsidiaries continue to operate as they are presently, and
are projected to operate, Concierge has sufficient capital to pay its general
and administrative expenses for the coming fiscal year and to adequately pursue
its long term business objectives.



In relation to the adoption of ASC 842 (see Note 2), the Company recognized
$1,150,916 of operating lease liabilities on July 1, 2019. The total amount due
under these obligations was $770,457 and $0 as of June 30, 2020 and June 30,
2019, respectively. The obligations will amortize over the passage of time
through the recognition of periodic rent expense. See Note 14 for further
analysis of this obligation.



As of June 30, 2020, we had $1 million of related-party and
third-party indebtedness on a consolidated basis as compared to $0.7 million as
of June 30, 2019. Concierge, without inclusion of its subsidiary companies, as
of June 30, 2020 and June 30, 2019, had $0.6 million of indebtedness. We are not
required to make interest payments on our notes until the maturity date.



Current related party notes payable consist of the following:

June 30, 2020

June 30, 2019 Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 (past due)

                3,500               3,500

Notes payable to shareholder, interest rate of 4%, unsecured and payable on May 25, 2022

                              250,000             250,000

Notes payable to shareholder, interest rate of 4%, unsecured and payable on April 8, 2022

                             350,000             350,000
                                                           $       603,500     $       603,500




As of June 30, 2020, Brigadier had an outstanding principal balance of
CD$507,732 (approx. US$373,041 translated as of June 30, 2020) related to the
purchase of its Saskatoon office land and building. The Consolidated Balance
Sheet as of June 30, 2020 reflect the amount of the principal balance which is
due within twelve months as a current liability of US$13,196 and a long term
liability of US$359,845. As of June 30, 2019, the loan liability consisted of
principal balances outstanding for vehicle purchases. The principal amounts
under the loans which were due within twelve months were recorded in short term
liabilities as US$26,241, and after twelve months as US$61,057. These loans were
paid in full as of June 30, 2020, whereas there was no liability for the loan
related to the property purchase as of June 30, 2019. For further details,
see Note 11 to our Financial Statements.



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Investments



Wainwright, from time to time, provides initial investments in the creation of
ETP funds that Wainwright manages. Wainwright classifies these investments as
current assets as these investments are generally sold within one year from the
balance sheet date. As of June 30, 2020 Wainwright did not hold any initial
investment positions. These investments, as applicable, are described further in
Note 7 to our Financial Statements.



Dividends



Our strategy on dividends is to declare and pay dividends only from retained
earnings and only when our Board of Directors deems it prudent and in the best
interests of the company to declare and pay dividends. We have paid no dividends
and we do not expect to pay any dividends over the next fiscal year.



Off-Balance Sheet Arrangements

At June 30, 2020, and as of September 27, 2020, we have not entered into any transaction, agreement or other contractual arrangement with an entity unconsolidated with us under which we have:





  ? An obligation under a guarantee contract,

? A retained or contingent interest in assets transferred to the unconsolidated

entity or similar arrangement that serves as credit, liquidity or market risk

support to such entity for such assets,

? An obligation, including a contingent obligation, arising out of a variable

interest in an unconsolidated entity that is held by, and material to, us

where such entity provides financing, liquidity, market risk or credit risk

support to, or engages in leasing, hedging, or research and development

services with us.

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