Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 81

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 our fund management business in the development of new exchange traded fund or products. 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 generally no legal limitations or
constraints on the movement of funds between the entities, however there are potential tax consequences for funds moved from foreign
subsidiaries to the parent company. Additionally, our registered investment advisor subsidiaries are required to maintain certain
minimum capital requirements.

As
of March 31, 2025, we had $4.3 million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June
30, 2024, a decrease of $1.1 million or 21%. Our cash used in operating activities for the nine months ended March 31, 2025 was $2.8
million. For the nine months ended March 31, 2025, the Company made additional expenditures of $3.8 million with regard to the
development of our mobile Fintech app. We have invested a total of $19.1 million in the Fintech app since Marygold’s inception.

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. We expect that we will require
additional financing to fund our fintech operations over the coming 12 months. As the funding requirements become known, we will
decide upon the source of the additional capital. Despite these cash investments and expenses, our working capital position remains
strong at $13.8 million as of March 31, 2025. 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.

Recent
Equity Financing

On
January 28, 2025, we closed on the sale of an aggregate of 2,050,000 shares of our common stock, $0.001 par value per share (“Common
Stock”) at a price to the public of