Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 42

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 stock, $0.001 par value per share
(“Common Stock”) at a price to the public of $1.10 per share (before deduction of underwriting discounts and
commissions) in a firm commitment underwritten public offering (“Offering”) pursuant to an underwriting agreement, dated
January 26, 2025 (“Underwriting Agreement”), between us and the Maxim Group LLC (“Maxim”), as sole
underwriter and book-running manager for the Offering. Pursuant to the Underwriting Agreement, we granted Maxim a 45-day option to
purchase up to an additional 307,500 shares of Common Stock at the public offering price before deduction of underwriting discounts
and commissions (“Overallotment Option”). As of the date of this Report, Maxim has not exercised its Overallotment
Option and there can be no assurance that it will do so.

The
net proceeds of the Offering to us, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately
$1,850,000. We intend to use the net proceeds from the Offering to retire or reduce debt, make additional investments in our financial services operations, and for other general working capital and corporate purposes.

Based
on our current operating plan which we expect may include continued additional investments in our mobile Fintech app, we may need to raise
additional funds through one or more debt and/or equity financing to meet our operating and cash needs. There can be no assurance we
will be able to raise such additional financing or upon terms acceptable to us. In the event we are unable to obtain additional
financing in an amount or upon terms acceptable to us, we expect to reduce or curtail our investment in the development of our
Fintech app.

28

Lease
Liability

The
Company has various leases for offices, warehouses and manufacturing facilities. The total amount due under these obligations was $1.4
million as of December 31, 2024. During the six months ended December 31, 2024, the Company renewed leases in New Zealand and the US
which increased the right-of-use assets and lease liabilities by $0.7 million. The obligations will reduce over the passage of time through
periodic lease payments. See Note 10 for further analysis of this obligation.

Recent
Note Financing

On
September 19, 2024, we entered into a note purchase agreement (“Purchase Agreement”) with Streeterville Capital, LLC, a
Utah limited liability