Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 176

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 176
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 revenue recognition, is necessary
for us to produce reliable financial reports and is important in helping to prevent financial fraud. Any of these possible outcomes could
result in an adverse reaction in the financial marketplace due to a loss in investor confidence in the reliability of our financial statements,
which ultimately could harm our business and could negatively impact on the market price of our common stock. Investor confidence and
the price of our common stock may be adversely affected if we are unable to comply with Section 404 of the Sarbanes-Oxley Act.

We
are a “smaller reporting company” within the meaning of the Securities Act and Securities Exchange Act and we intend to take
advantage of certain exemptions from disclosure requirements available to smaller reporting companies which could make our securities
less attractive to investors and may make it more difficult to compare our performance with that of other public companies.

We
are a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage
of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We
will remain a smaller reporting company until the last day of the fiscal year in which (i) the market value of the shares of common stock
held by non-affiliates exceeds $250 million as of the prior December 31, and (ii) our annual revenue exceeded $100 million during such
completed fiscal year or the market value of the shares of common stock held by non-affiliates exceeds $700 million as of the prior December
31. To the extent we take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with
other public companies difficult or impossible.

Losses
or unauthorized access to or releases of confidential information, including personal information, could subject us to significant reputational,
financial, legal and operational consequences.

Our
businesses require us to use and store confidential information, including personal information, with respect to our customers and employees
and also requires us to share confidential information with suppliers and other third parties. We rely on suppliers that are also exposed
to ransomware and other malicious attacks that can disrupt business operations. Although we take steps to secure confidential information
that is provided to or accessible by third parties working on our behalf, such measures may not always be effective and losses or unauthorized
access to or releases of confidential information may occur. Such incidents and other malicious attacks could materially adversely affect
our business, reputation, results of operations and