Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 170

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 170
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 foodservice products and supplies Gourmet Foods needs in the quantities and at the time and prices requested. Gourmet Foods does
not control the actual production of most of the products it sells. This means Gourmet Foods is also subject to delays caused by interruption
in production and increases in product costs based on conditions outside its control. These conditions include work slowdowns, work interruptions,
strikes or other job actions by employees of suppliers; severe weather; crop conditions; product recalls; transportation interruptions;
unavailability of fuel or increases in fuel costs; competitive demands; and natural disasters, terrorist attacks or other catastrophic
events (including, but not limited to, the outbreak of food-borne illnesses in the United States). Gourmet Foods’ inability to
obtain adequate supplies of foodservice and related products because of any of these or other factors could mean that Gourmet Foods could
not fulfill its obligations to its customers and, as a result, customers may turn to other distributors.

Product
recalls or other product liability claims could materially and adversely affect us.

Selling
products for human consumption or use involves inherent legal and other risks, including product contamination, spoilage, product
tampering, allergens, or other adulteration. We could in the future be required to recall products due to suspected or confirmed
product contamination, adulteration, product mislabeling or misbranding, tampering, undeclared allergens, or other deficiencies.
Product recalls or market withdrawals could result in significant losses due to their costs, the destruction of product inventory,
and lost sales due to the unavailability of the product for a period of time.

Adverse
attention about these types of concerns, whether or not valid, may damage our reputation, discourage consumers from buying our products,
or cause production and delivery disruptions that could negatively impact our net sales and financial condition.

We
may also suffer losses if our products or operations violate applicable laws or regulations, or if our products cause injury, illness,
or death. In addition, our marketing could face claims of false or deceptive advertising or other criticism. A significant product liability
or other legal judgment or a related regulatory enforcement action against us, or a significant product recall, may materially and adversely
affect our reputation and profitability. Moreover, even if a product liability or fraud claim is unsuccessful, has no merit, or is not
pursued to conclusion, the negative publicity surrounding assertions against our products or processes could materially and adversely
affect our product sales, financial condition, and operating results.