Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 6

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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for corporate governance practices, monitoring regulatory affairs, including those of its operating businesses and involvement in governance-related
issues of its subsidiaries as needed.

NOTE
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation and Accounting Principles

The
Company has prepared the accompanying unaudited condensed financial statements on a consolidated basis. In the opinion of management,
the accompanying unaudited condensed consolidated balance sheets, related statements of operations, comprehensive loss, stockholders’
equity and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation, prepared
on an accrual basis, in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”)
but does not include all of the information and footnotes required by U.S. GAAP for complete audited financial statements. Operating
results for the three months and nine months ended March 31, 2025 are not necessarily indicative of the results that may be expected
for the year ending June 30, 2025. The condensed consolidated balance sheet as of June 30, 2024, has been derived from the audited consolidated
financial statements at that date included in our annual report on Form 10-K for the year ended June 30, 2024, but does not include all
of the information and footnotes required by U.S. GAAP for complete audited financial statements. The information included in this Report
should be read in conjunction with information included in the Company’s Annual Report on Form 10-K for year ended June 30, 2024.

Principles
of Consolidation

The
accompanying Condensed Consolidated Financial Statements, which are referred herein as the “Financial Statements”, include
the accounts of The Marygold Companies and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated
in consolidation.

    9

Use
of Estimates

The
preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Concentration
of Credit Risk

Our
subsidiary USCF Investments relies on the revenues generated from the investment management fees from the funds it manages. The concentration
of fund management revenue and related receivables were (doll