Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 39

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 Agreement (“EDA”)
with Maxim pursuant to which we may sell from time-to-time shares of our common stock having an aggregate offering price of up to $4.65
million through or to Maxim, as sales agent or principal. We have agreed to pay Maxim a commission equal to three percent (3%) of the
aggregate gross proceeds from the sale of any shares through Maxim under the EDA, reimburse Maxim for certain legal fees and disbursements,
and have agreed to indemnify Maxim against certain liabilities under the Securities Act. The EDA requires that, until May 28, 2025,
the date of the expiration of the standstill period in our Underwriting Agreement with Maxim for the Offering described above, sales of
our shares of common stock be made at a minimum price per share of $1.50 unless, at any time, Maxim and the Company mutually agree upon
a lower minimum price per share. During the quarter ended March 31, 2025, we did not sell any shares pursuant to the EDA.  The offer
and sale, if any, of our shares of common stock under the EDA will be made pursuant to our shelf registration statement on Form S-3 which
was filed with the SEC on December 18, 2024, and became effective on December 27, 2024, the base prospectus included therein, and a prospectus
supplement that was filed by the Company with the SEC on March 7, 2025.

The
Company believes that its cash and cash equivalents along with the cash generated from ongoing operations will be sufficient to fund
its cash requirements over the next 12 months. However, based on our current operating plan which we expect may include continued
additional investments in our mobile Fintech app for the U.K. market, we may need to raise additional funds through one or more
debt, equity or equity linked financings to meet our operating and cash needs. There can be no assurance we will be able to raise
such additional financing upon terms acceptable to us or at all. In the event we are unable to obtain additional financing in an
amount or upon terms acceptable to us, we expect to further reduce or curtail our investment in the development of our Fintech
app.

Lease
Liability

The
Company has various leases for offices, warehouses and manufacturing facilities. The total amount due under these obligations was
$1.3 million as of March 31, 2025.