Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 78

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 78
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 of revenue.

We
derive a substantial portion of our revenues from our USCF Investments subsidiary and, as a result, our operating results are particularly
exposed to investor sentiment toward investing in the ETFs sponsored by USCF and advised by USCF Advisers.

For
the years ended June 30, 2025 and 2024, 57% and 58% of our revenues, respectively, were derived from USCF Investments operations, which
consists of the management of  ETFs by USCF and USCF Advisers. As a result, our operating results are particularly exposed to
the performance of these funds and our ability to maintain the assets under management of these funds, as well as investor sentiment
toward investing in the funds’ strategies. If the assets under management in these funds were to decline, either because of declining
market values or net outflows from these funds, our revenues would be adversely affected.

We
rely on third party suppliers, and our business may be affected by interruption of supplies or increases in product costs.

Gourmet
Foods obtains most food related products and services from third party suppliers. Gourmet Foods typically does not have long-term contracts
with suppliers. Although Gourmet Foods’ purchasing volume can provide leverage when dealing with suppliers, suppliers may not provide
the foodservice products and supplies Gourmet Foods needs in the quantities and at the time and prices requested. Gourmet Foods does
not control the actual production of most of the products it sells. This means Gourmet Foods is also subject to delays caused by interruption
in production and increases in product costs based on conditions outside its control. These conditions include work slowdowns, work interruptions,
strikes or other job actions by employees of suppliers; severe weather; crop conditions; product recalls; transportation interruptions;
unavailability of fuel or increases in fuel costs; competitive demands; and natural disasters, terrorist attacks or other catastrophic
events (including, but not limited to, the outbreak of food-borne illnesses in the United States). Gourmet Foods’ inability to
obtain adequate supplies of foodservice and related products because of any of these or other factors could mean that Gourmet Foods could
not fulfill its obligations to its customers and, as a result, customers may turn to other distributors.

Product
recalls or other product liability claims could materially and adversely affect us.

Selling
products for human consumption or use involves inherent legal and other risks, including product contamination, spoilage, product
tampering, allergens, or other