Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 670

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 6
Chunk 670
---

the Company will be able to raise such additional financing or upon terms acceptable to it.

The overall financial services revenue driven by Marygold
UK increased by $0.2 million or 32% driven by having a full year of revenue in fiscal 2025 from Step-By-Step which was acquired in April
2024. Marygold UK released a narrower version of the mobile Fintech app in the UK during the fourth quarter of fiscal 2025. The development,
marketing and support of the UK Fintech app negatively impacted the financial performance of Marygold UK during fiscal 2025 but was offset
due to reduced expenses of Marygold US. The overall financial services operating loss decreased by $0.3 million, or 5%, as a result.

Corporate Headquarters

Operating loss for the corporate headquarters increased
by $0.7 million or 21% driven by higher stock-based compensation expenses of $0.4 million and the transition of certain employees from
the financial services segment to the parent company.

Liquidity
and Capital Resources

The
Marygold Companies is a holding company that conducts its individual business operations through its subsidiaries. At the holding-company
level, its liquidity needs relate to operational expenses, 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. Cash is managed at the holding
company and the subsidiary level. There are no limitations or constraints on the movement of funds between the entities.

As of June 30, 2025, we had $5.0
million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June 30, 2024, a decrease of $0.5
million or 8%. Our cash used in operating activities for fiscal 2025 was $3.3 million. For fiscal 2025, we made additional
expenditures of $3.3 million through Marygold US for the development of the mobile Fintech app in the United States. We have
invested a total of $19.1 million in the Fintech app through Marygold US since inception. Despite these cash investments and
expenses, our working capital position remains strong at $12.4 million as of June 30, 2025.

As
described below, in September 2024 we