Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 95

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 95
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 additional dilution.

The
holders of outstanding options, warrants and convertible securities or derivatives, if any, have the opportunity to profit from a rise
in the market price of our shares, if any, without assuming the risk of ownership, with a resulting dilution in the interests of other
stockholders. We may find it more difficult to raise additional equity capital if it should be needed for our business while the options,
warrants and convertible securities are outstanding.

Future
sales, or the potential for future sales, of our shares, including pursuant to our Equity Distribution Agreement with Maxim, could adversely
affect the market price of our common stock.

We
reserve the right to make future offers and sales, either public or private, of our securities including shares of common stock or preferred
stock, or securities convertible into, or exercisable for, our common stock. There can be no assurance that we will be able to successfully complete any such future offerings; however,
in the event that any such future sales of securities are effected, your pro rata ownership interest may be reduced to the extent of
any such issuances and, to the extent any such sales are effected at consideration which is less than that paid by you, you may experience
dilution. Moreover, to the extent we issue shares of restricted stock, stock appreciation rights, options or warrants to purchase our
common stock in the future and those shares of restricted stock, options or warrants are exercised or as the shares of restricted stock
vest, our stockholders may experience further dilution. Holders of shares of our common stock have no preemptive rights that entitle
such holders to purchase their pro rata share of any offering of shares of any class or series and, therefore, such sales or offerings
could result in increased dilution to our stockholders.

Shares
to be issued in future equity offerings could cause the market price of our common stock to decline and could have an adverse effect
on our earnings per share. In addition, future sales of our common stock or other securities in the public markets, or the perception
that these sales may occur, could cause the market price of our common stock to decline, and could materially impair our ability to raise
capital through the sale of additional securities.

The
market price of our common stock could decline due to sales, or the announcements of proposed sales, of a large number of common stock
in the market, including sales of common stock by our large stockholders, or the perception that these sales could occur.