Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 227

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 227
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 forfeitures in the period.

Business
Combinations

We
allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired
based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable
assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially
with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future
expected cash flows from acquired customers, acquired trade names from a market participant perspective, useful lives and discount rates.
Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and
unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition
date, we may record adjustments to the assets acquired and liabilities assumed.

    F-12

Recent
Accounting Pronouncements

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). The guidance expands the disclosures required for
reportable segments in our annual and interim consolidated financial statements, primarily through enhanced disclosures about
significant segment expenses. The standard became effective for us beginning with our annual reporting for fiscal year 2025 and
interim periods thereafter. The adoption of the new standard did not have a material impact on our segment reporting disclosures.

In
December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The guidance requires disclosure
of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and
modifies other income tax-related disclosures. The standard will be effective for us beginning with our annual reporting for fiscal year
2026, with early adoption permitted. We are currently evaluating the impact of this standard on our income tax disclosures.

NOTE
3. NET LOSS PER SHARE

Basic
net loss per share is based upon the weighted average number of common shares outstanding. This calculation includes the weighted average
number of Series B Convertible Preferred shares outstanding also as they are deemed to be substantially similar to the common shares
and shareholders are entitled to the same liquidation and dividend rights. Diluted net loss per share is based on