Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 15

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 8
Chunk 15
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 for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurement. ASC 820 establishes
a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources
independent of the Company (observable inputs) and (2) the Company’s own assumptions about market participant assumptions developed
based on the best information available under the circumstances (unobservable inputs). The three levels defined by the ASC 820 hierarchy
are as follows:

Level
1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability
to access at the measurement date.

Level
2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly. Level 2 assets include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the
asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means
(market-corroborated inputs).

Level
3 – Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure
fair value to the extent that observable inputs are not available.

In
some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the
fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level
that is significant to the fair value measurement in its entirety.

    F-10

Revenue
Recognition

Revenue
consists of fees earned through management of investment funds in the United States and in the United Kingdom primarily based on assets
under management (“AUM”), sales of gourmet meat pies and printing of food wrappers in New Zealand, sales of security alarm
system installation and maintenance services in Canada, and sales of hair and skin care products in the United States and internationally.
Revenue is accounted for net of sales taxes, sales returns, and trade discounts. The performance obligation is satisfied when the product
has been shipped and title, risk of loss and rewards of ownership have been transferred. For most of the Company’s product sales
or services, the revenue recognition criteria described below are met at the time the product is shipped, the subscription period commences,
or the management services are