Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 79

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 79
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 adulteration. We could in the future be required to recall products due to suspected or confirmed
product contamination, adulteration, product mislabeling or misbranding, tampering, undeclared allergens, or other deficiencies.
Product recalls or market withdrawals could result in significant losses due to their costs, the destruction of product inventory,
and lost sales due to the unavailability of the product for a period of time.

Adverse
attention about these types of concerns, whether or not valid, may damage our reputation, discourage consumers from buying our products,
or cause production and delivery disruptions that could negatively impact our net sales and financial condition.

We
may also suffer losses if our products or operations violate applicable laws or regulations, or if our products cause injury, illness,
or death. In addition, our marketing could face claims of false or deceptive advertising or other criticism. A significant product liability
or other legal judgment or a related regulatory enforcement action against us, or a significant product recall, may materially and adversely
affect our reputation and profitability. Moreover, even if a product liability or fraud claim is unsuccessful, has no merit, or is not
pursued to conclusion, the negative publicity surrounding assertions against our products or processes could materially and adversely
affect our product sales, financial condition, and operating results.

In
the past, we have expanded our business internationally. This expansion subjects us to increased operational, regulatory, financial and
other risks.

We
face increased operational, regulatory, financial, compliance, reputational and foreign exchange rate risks as a result of our international
expansion. The failure of our compliance and internal control systems to properly mitigate such additional risks, or of our operating
infrastructure to support such expansion, could result in operational failures and regulatory fines or sanctions. If our international
products and operations experience any negative consequences or are perceived negatively in non-U.S. markets, it may also harm our reputation
in other markets, including the U.S. market.

Our
risk management policies and procedures, and those of our third-party vendors upon which we rely, may not be fully effective in identifying
or mitigating risk exposure, including employee misconduct. If our policies and procedures do not adequately protect us from exposure
to these risks, we may incur losses that would adversely affect our financial condition, reputation and market share.

We
have developed risk management policies and procedures and we continue to refine them as we conduct our business. Many of our procedures
involve oversight of third-party vendors that provide us with