Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 38

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 38
---
 Company made additional expenditures of $3.8 million with regard to the
development of our mobile Fintech app. We have invested a total of $19.1 million in the Fintech app since Marygold’s inception.

As
described below, in September 2024, we entered into a financing arrangement under which we borrowed $4.4 million and have the
potential to borrow an additional $2.2 million. The financing arrangement also gives the lender the right but not the obligation to
provide an additional $10.0 million in financing to us on the same terms as the initial loans. We expect that we will require
additional financing to fund our fintech 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 $13.8 million as of March 31, 2025. Also 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.

Recent
Equity Financing

On
January 28, 2025, we closed on the sale of an aggregate of 2,050,000 shares of our common 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”). Maxim did
not exercise its Overallotment Option.

The
net proceeds of the Offering to us, after deducting underwriting discounts and commissions and estimated offering expenses, were $1.8
million. 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. 

On March 7, 2025, we entered into an Equity Distribution