Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 58

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 58
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 certain liabilities under the Securities
Act. The Equity Distribution Agreement also includes customary representations, warranties and covenants including that both parties
agree their entry into the Equity Distribution Agreement represents a waiver of the standstill period.

The
Equity Distribution Agreement will automatically terminate upon the earlier of the sale of all of the shares under the Equity Distribution
Agreement or twelve months from the date of the Equity Distribution Agreement. In addition, the Equity Distribution may be terminated
by us upon ten (10) days prior written notice to Maxim. Maxim may terminate the Equity Distribution Agreement if, in its sole discretion,
it is not satisfied with the results of its and its representatives review of us and our business.

As
of June 30, 2025, we have not sold any shares of our common stock pursuant to the Equity Distribution Agreement.

Sale
of Brigadier

On
June 19, 2025, we entered into a Stock Purchase Agreement (“Purchase Agreement”) with SKCAL LLC, an Arizona limited
liability company (“Buyer”), whose president and sole member, Scott Schoenberger, is also a director of Marygold and the
beneficial owner of 10.9% of our outstanding voting stock. Pursuant to the Agreement, we agreed to sell 100% of the issued and
outstanding shares of our wholly owned Canadian subsidiary, Brigadier Security Systems (2000) Ltd. a Canadian registered corporation
(“Brigadier”), located in Regina and Saskatoon, Saskatchewan, Canada (“Brigadier”), to the Buyer for total
consideration of $2.2 million, subject to certain adjustment either upwards or downwards in accordance with the differences, if any
between the total net working capital (“TNWC”) and the final net working capital (“NWC”), translated to
United States currency as of the closing date and under the terms and conditions set forth in the Purchase Agreement. The closing
(“Closing”) of the sale of Brigadier took place on July 1, 2025 (“Closing Date”). As required under the
Purchase Agreement, an initial payment of $0.2 million was paid three business days following the execution and delivery of the
Purchase Agreement by the parties. An additional $1.0 million was paid on or about the Closing Date. A final payment of $1.1 million
was paid on September 1, 2025 in accordance with the adjustment as provided hereinabove. As a result of the upward adjustment, the
total purchase price consideration was $