Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 69

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 69
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 products which it believes differentiates
it significantly from competitors that do not employ such standards. The use of organic and natural extracts is a growing trend in the
U.S. and abroad, and other established brands are beginning to make products that directly compete with Original Sprout. As more entrants
in the high-end, vegan, hair care segment come into existence, some may be better financed and have more brand recognition and resources
than Original Sprout. Original Sprout is focused on promoting its own brand name as a recognized pioneer in 100% vegan, safe, effective,
hair care products through the recruitment of additional distributors, nationwide retail stores, a continued emphasis on online sales
either directly or through retail stores and an increased social media presence. Original Sprout believes that these steps will allow
for the growth of annual revenues and market share protection, though there can be no assurance that such efforts will be sufficient
to offset the effects of competition in the future.

Seasonality

There
is no significant seasonality for sales of products by Original Sprout, although sales may fluctuate around traditional
holidays, and sales of certain products, such as sunscreen, are lower in winter months than in summer months.

Regulation

Original
Sprout is not required to have permits or inspections by regulatory agencies for the products it formulates and distributes in the U.S.;
however, it has chosen to gain recognition from certain testing laboratories and other quasi-regulatory agencies for compliance with
accepted standards for hair and skin care ingredients and lack of toxic chemicals in their formulas and processes. For export, Original
Sprout is often required to submit its products to foreign government agencies or certified laboratories for ingredient testing prior
to being accepted for import as a “safe” product. We believe that Original Sprout products comply with all applicable regulations,
both domestic and foreign, in areas where they are sold or distributed.

Intellectual
Property

The
formulations and ingredient percentages of the many products of Original Sprout are considered its intellectual property, although many
cannot be patented, they are maintained as confidential. The names “Original Sprout” and “D’Organiques Original
Sprout” are registered trademarks of Original Sprout and will expire or renew on August 16, 2031 and September 9, 2028, respectively.

Employees

Original
Sprout had eight full-time employees, not including temporary workers or “temp-to-hire” status workers, in California as
of June 30, 2025.

U.S.