Company: MGLD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001493152-25-021259
Chunk: 23

Company: Marygold Companies, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 these
related party investments.

USCF
Advisers is no longer contractually obligated to pay license fees to an affiliated entity related to intellectual property rights for
two of the funds during fiscal 2025 and 2026 as both parties agreed to reduce the license fee. The amount of license fee accrued as an
expense during the three months ended September 30, 2025 and 2024 was zero and $0.2 million, respectively.

Note Payable

Refer
to Note 8. Note Payable for a description of a related party transaction involving the Nicholas and Melinda Gerber Living Trust
(“Gerber Trust”), of which our CEO is a trustee, pursuant to which, in connection with the Company’s recent debt
financing transaction, the Gerber Trust provided to the holder of the note issued in the financing transaction a guaranty of the
Company’s performance under the note and, as security, a pledge of all of the shares of the Company’s common stock owned
by the Gerber Trust. As of September 30, 2025, all collateral and guarantees pledged to the holder of the note have been released. The
note has been repaid in full.

Sale
of Brigadier

On
June 19, 2025, the Company entered into a stock purchase agreement with SKCAL LLC, an Arizona
limited liability company, pursuant to which the Company agreed to sell to SKCAL LLC all of the shares of stock it owns in its wholly
owned subsidiary, Brigadier Security Systems (2000) Ltd., a Canadian registered corporation for $2.2 million. Scott Schoenberger, a director
and 10.9% shareholder of the Company, is the sole member of SKCAL LLC making this transaction between related parties (see Note 6.
Sale of Brigadier for more details).

NOTE
12. INCOME TAXES

The
Company is required to make its best estimate of the annual effective tax rate for the full fiscal year and use that rate to provide
for income taxes on a current year-to-date basis. The effective tax rate could fluctuate in the future due to changes in the taxable
income mix between various jurisdictions.

NOTE
13. SEGMENT REPORTING

In
its operation of the business, our chief operating decision maker (“CODM”), who is our Chief Executive Officer, reviews revenues
and operating income (loss) in assessing segment performance and deciding how to allocate cash and other resources. Asset and expense information by
segment