Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 625

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 5
Chunk 625
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 computed using the straight-line method over the estimated useful life of the asset as described below.

 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIFE

    Category 
    Estimated Useful Life (in years) 
  
    Building 
     39 
  
    Manufacturing equipment 
     5 to 10 
  
    Other equipment 
     3 to 5 

Leases

The
Company’s most significant operating leases are real estate leases of office, warehouse and production facilities. Operating leases
are included in operating lease right-of-use assets and operating lease liabilities in the Consolidated Balance Sheets. Right-of-use
assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease
commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments,
the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease
right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received.
The Company’s lease terms may include options to extend the lease when it is reasonably certain that it will exercise
any such options. For the majority of its leases, the Company concluded that it is not reasonably certain that any renewal options would
be exercised, and, therefore, the amounts are not recognized as part of operating lease right-of-use assets nor operating lease liabilities.
Leases with an initial term of 12 months or less are not recorded on the balance sheet and expensed as incurred and included within rent
expense under general and administrative expense. Lease expense is recognized on a straight-line basis over the expected lease term.

The
Company has one finance lease wherein ownership of the underlying asset will be transferred to the Company at the end of the lease term.
The underlying asset of the finance lease is a solar energy system at Gourmet Foods that is included with Property and equipment on the
Consolidated Balance Sheets.

Intangible
Assets

Intangible
assets consist of brand names, recipes, customer relationships and the internally developed software for the Fintech app developed
by Marygold. Intangible assets with finite lives are amortized over the estimated useful life. Intangible assets including those
with indefinite lives are evaluated for impairment at least on an annual basis and whenever events or changes in circumstances
ind