Company: MGLD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001493152-25-021259
Chunk: 63

Company: Marygold Companies, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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 relations which produce operating losses. Operating loss for the corporate headquarters
was flat at $1.5 million for the quarter ended September 30, 2025 as compared to the same period in 2024.

22

Liquidity
and Capital Resources

We
are a holding company that conducts our individual diversified business operations through our wholly-owned subsidiaries. At the holding-company
level, our liquidity needs relate to operational expenses, the funding of additional business acquisitions and new investment opportunities
including the investment by our fund management business in the development of new exchange traded fund or products. 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 generally no legal limitations or constraints on the movement of funds between the entities, however there are potential
tax consequences for funds moved from foreign subsidiaries to the parent company. Additionally, our registered investment advisor subsidiaries
are required to maintain certain minimum capital requirements.

As of September 30, 2025, we had
$4.9 million of cash and cash equivalents on a consolidated basis as compared to $5.0 million as of June 30, 2025, a decrease of
$0.1 million or 3%. Our cash used in operating activities for the quarter ended September 30, 2025 was $0.5 million. For the quarter
ended September 30, 2025, the Company made nominal capital contributions to Marygold UK, which in turn were expensed towards the
development and marketing of the mobile Fintech app. We have invested a total of $19.3 million overall in the Fintech app since
the project was implemented in 2019. As described below, on January 28, 2025, we received $1.8 million in net proceeds from the sale
of our shares in a firm commitment underwritten offering. There is a possibility that we will require additional financing if we
elect to further fund fintech -based subsidiary operations over the coming 12 months. As the funding requirements become known, we
will decide upon the source of the additional capital. Despite these cash investments and expenses, our working capital position
remains strong at $13.4 million as of September 30, 2025.

Recent
Equity Financing

On
January 28, 2025, we