Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 119

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 119
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 we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit
matter or on the accounts or disclosures to which it relates.

Description
of the Matter

As
described in Note 14, Commitments and Contingencies, of the consolidated financial statements, the Company is party to various legal
proceedings and regulatory inquiries. The Company discloses the legal proceedings and that no accrual has been recorded with respect
to them as of June 30, 2025. The Company further discloses that it is currently unable to predict the timing or outcome of, or reasonably
estimate the possible losses or range of possible losses resulting from these matters, and that it is reasonably possible that this estimate
will change in the near term. The Company discloses that an adverse outcome regarding these matters could materially adversely affect
the Company’s financial condition, results of operations and cash flows. Auditing the Company’s accounting for, and disclosure
of, loss contingencies related to the various legal proceedings was especially challenging due to the significant judgement required
to evaluate management’s assessment of the likelihood of a loss, and of the potential amount or range of such loss.

How
We Addressed the Matter in Our Audit

To
test the Company’s assessment of the probability of incurrence of a loss, whether the loss was reasonably estimable, and the conclusion
and disclosures regarding any range of possible losses, including when the Company believes such a range cannot be reasonably estimated
at this time, we read the minutes or a summary of the meetings of the Board of Directors, requested and received internal and external
legal counsel confirmations letters, discussed with legal counsel the nature of the various matters and obtained representations from
management. We also evaluated the appropriateness of the related disclosures included in Note 14, Commitments and Contingencies, to the
consolidated financial statements.

/s/ BPM LLP 

We have served as the Company’s auditor since 2017. 

San
Francisco, California

September 19, 2025

F-1

THE
MARYGOLD COMPANIES, INC.

CONSOLIDATED
BALANCE SHEETS

(in
thousands, except per share data)

    June 30, 2025  
    June 30, 2024 

    ASSETS 

    CURRENT ASSETS 

    Cash and cash equivalents 
    $5,005  
    $5,461 
  
    Accounts receivable, net (