Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 202

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 202
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 fiscal 2025 but was offset
due to reduced expenses of Marygold US. The overall financial services operating loss decreased by $0.3 million, or 5%, as a result.

Corporate Headquarters

Operating loss for the corporate headquarters increased
by $0.7 million or 21% driven by higher stock-based compensation expenses of $0.4 million and the transition of certain employees from
the financial services segment to the parent company.

Liquidity
and Capital Resources

The
Marygold Companies is a holding company that conducts its individual business operations through its subsidiaries. At the holding-company
level, its liquidity needs relate to operational expenses, the funding of additional business acquisitions and new investment opportunities.
Our operating subsidiaries’ principal liquidity requirements arise from cash used in operating activities, debt service, and capital
expenditures, including purchases of equipment and services, operating costs and expenses, and income taxes. Cash is managed at the holding
company and the subsidiary level. There are no limitations or constraints on the movement of funds between the entities.

As of June 30, 2025, we had $5.0
million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June 30, 2024, a decrease of $0.5
million or 8%. Our cash used in operating activities for fiscal 2025 was $3.3 million. For fiscal 2025, we made additional
expenditures of $3.3 million through Marygold US for the development of the mobile Fintech app in the United States. We have
invested a total of $19.1 million in the Fintech app through Marygold US since inception. Despite these cash investments and
expenses, our working capital position remains strong at $12.4 million as of June 30, 2025.

As
described below, in September 2024 we entered into a financing arrangement under which we borrowed $4.4 million and have the potential
to borrow an additional $2.2 million. The financing arrangement also gives the lender the right but not the obligation to provide an
additional $10.0 million in financing to us on the same terms as the initial loans. Also as described below, on January 28, 2025, we received $1.8 million in net proceeds from the sale of our shares in
a firm commitment underwritten offering. Also, on July 1, 2025, the Company sold