Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 641

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 5
Chunk 641
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 instance that the deferral
right is exercised by Company, which cannot be exercised more than once every ninety calendar days.

Pursuant
to the terms of the Purchase Agreement, beginning on the date of the issuance and sale of the Note and ending 24 months later, Holder
will have the right, but not the obligation, with Company’s prior written consent, to reinvest up to an additional $10,000,000
in the Company on the same terms and conditions as the Notes (structured as two tranches of $5,000,000 each).

The
Company engaged Maxim Group LLC to serve as placement agent for the transaction between the Company and Holder in exchange for an aggregate
commission equal to 7% of the gross cash proceeds received from the sale of the Notes.

As
of June 30, 2025, the note payable balance outstanding, net of the original issue discount and fees paid, was $1.3
million, all of which is due within 12 months from June 30, 2025 assuming no deferral rights are exercised. The effective interest
rate for this note is 41.3%. Interest expense for this note payable during fiscal year 2025 was $1.2 million which included $0.6 million of amortization
of debt issuance costs.

As
of June 30, 2024, Brigadier had an outstanding principal balance of $0.3 million due related to the purchase of its Saskatoon office
land and building. The bank loan matured and was paid off in full in July 2024.

NOTE
12. STOCKHOLDERS’ EQUITY

Warrants
to Purchase Common Stock

In
connection with the Company’s underwritten public offering in fiscal 2022, the Company issued the underwriter’s warrants
to purchase up to an aggregate of 82,500
shares of Common Stock as compensation for their services related to this issuance. The warrants may be exercised until March 14,
2027. The exercise price of each warrant is $2.40
per share. As of June 30, 2025, no warrants were exercised.

    F-18

Convertible
Preferred Stock

The
Company has 50,000,000 shares authorized to issue as Preferred Stock. The Preferred Stock is designated into two series: 5,000,000 shares
designated as Series A and 45,000,000 shares designated as Series B. As of June 30, 2025