Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 116

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 116
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erral 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%.

In
July 2024, Brigadier repaid its mortgage loan of $0.3 million in full that was secured with the land and building in Canada.

Investments

USCF
Investments, from time to time, provides initial investments in the creation of ETF funds that USCF Investments manages. USCF
Investments classifies these investments as current assets as these investments are generally sold within one year from the balance
sheet date. As of June 30, 2025, USCF Investments held investment positions in four of its exchange traded funds registered under
the Investment Company Act of 1940, as amended, USG (ticker changed from GLDX in March 2024), ZSB, USE and ZSC of $0.5 million, $0.2
million, $0.8 million, and $2.1 million, respectively. These investment positions along with other investments, as applicable, are
described further in Note 5 to our Consolidated Financial Statements.

Dividends

Our
strategy on dividends is to declare and pay dividends only from retained earnings and only when our Board of Directors deems it prudent
and in the best interests of the Company to declare and pay dividends. We paid no dividends during fiscal 2025 and 2024.

Off-Balance
Sheet Arrangements

At
June 30, 2025, and