Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 711

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 6
Chunk 711
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 accounting for deferred taxes involves the evaluation of several factors concerning the realizability of the Company’s
net deferred tax assets. The Company primarily considered such factors as the Company’s history of operating losses, the nature
of the Company’s deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods
in which those temporary differences and carryforwards become deductible. The Company does not have a valuation allowance as of June
30, 2025 and 2024 as the Company believes that it is more likely than not that the net deferred tax assets will be realized.

The
benefit from income taxes for the years ended June 30, 2025 and 2024 differed from the amounts computed by applying the statutory federal
income tax rate of 21.0% to pretax loss as a result of the following (in thousands):

 SCHEDULE
OF INCOME TAX BENEFIT EXPENSE

    Years Ended June 30, 

    2025  
    2024 
  
    Federal tax benefit at statutory rate 
    $1,550  
    $1,144 
  
    State income taxes 
     (12) 
     47 
  
    Permanent differences 
     (14) 
     240 
  
    Foreign rate differential 
     38 
     (52)
  
    Total tax benefit 
    $1,562  
    $1,379 

    Years Ended June 30, 

    2025  
    2024 

    Federal tax benefit at statutory rate 
     21.0% 
     21.0%
  
    State income taxes 
     (0.2)% 
     0.9%
  
    Permanent differences 
     (0.1)% 
     4.1%
  
    Foreign rate differential 
     0.5% 
     (0.7)%
  
    Total tax benefit 
     21.2% 
     25.3%

    F-22

Tax
positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will
be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine
the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is
greater than 50% likely of being