Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 177

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 177
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 financial condition.

We
have implemented systems and processes intended to secure our information technology systems and prevent unauthorized access to or loss
of sensitive data, and mitigate the impact of unauthorized access, including through the use of encryption and authentication technologies
and we continue to undertake regular reviews of our IT infrastructure and have investigated improved software and hardware cyber threat
protection solutions. These measures cannot provide absolute security, and losses or unauthorized access to or releases of confidential
information may occur and could materially adversely affect our business, reputation, results of operations and financial condition.

Risks
Related to Our Controlled Company Election and Status

We
are a “controlled company” within the meaning of the NYSE American rules and rely on exemptions
from various corporate governance requirements that provide protection to stockholders of other companies.

We
are a “controlled company” as defined in section 801(a) of the NYSE American Company Guide because more than 50% of the combined
voting power of all of our voting stock is beneficially owned or controlled by Messrs. Gerber and Schoenberger. Under the
NYSE American rules, a company of which more than 50% of the voting power is held by another person or group of persons acting together
is a controlled company and may elect not to comply with certain NYSE American corporate governance requirements, including the requirements
that:

    ●
    a
    majority of a listed company’s board of directors consist of independent directors;

    ●
    board
    of directors’ nominations must be selected by either a nominating committee comprised of independent directors or by a majority
    of independent directors and that a listed company adopt a written charter or board resolutions addressing the nomination process;

    ●
    the
    compensation of a listed company’s chief executive officer and other executive officers be determined, or recommended to the
    board for determination, either by a compensation committee that is composed entirely of independent directors or by a majority of
    the independent directors on its board with a written charter addressing the committee’s purpose and responsibilities.

These
independence standards are intended to ensure that directors who meet those standards are free of any conflicting interest that could
influence their actions as directors.

16

The
Company may elect in the future to use certain of these controlled company exemptions and the Company may continue to use all or some
of these exemptions in the future for so long as the Company is a controlled company. Although we may rely on NYSE American’s controlled
company exemptions in the future, we currently