Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 169

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 169
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. Our inability
to attract and retain qualified personnel to operate our business subsidiaries could negatively impact our operating results and our
overall financial condition that is important to our success and future growth.

14

Table of Contents

Abnormally
wide bid/ask spreads and market disruptions that halt or disrupt trading or create extreme volatility could undermine investor confidence
in the ETP investment structure and limit investor acceptance of ETPs.

ETFs
trade on exchanges in market transactions that generally approximate the value of the referenced assets or underlying portfolio of
securities held by the particular ETF. Trading involves risks including the potential lack of an active market for fund shares,
abnormally wide bid/ask spreads (the difference between the prices at which shares of an ETF can be bought and sold) that can exist
for a variety of reasons and losses from trading. These risks can be exacerbated during periods when there is low demand for an ETF,
when the markets in the underlying investments are closed, when markets conditions are extremely volatile or when trading is
disrupted. This could result in limited growth or a reduction in the overall ETF market and result in our revenue not growing as
rapidly as it has in the recent past or even in a reduction of revenue.

We
derive a substantial portion of our revenues from our USCF Investments subsidiary and, as a result, our operating results are particularly
exposed to investor sentiment toward investing in the ETFs sponsored by USCF and advised by USCF Advisers.

For
the years ended June 30, 2025 and 2024, 57% and 58% of our revenues, respectively, were derived from USCF Investments operations, which
consists of the management of  ETFs by USCF and USCF Advisers. As a result, our operating results are particularly exposed to
the performance of these funds and our ability to maintain the assets under management of these funds, as well as investor sentiment
toward investing in the funds’ strategies. If the assets under management in these funds were to decline, either because of declining
market values or net outflows from these funds, our revenues would be adversely affected.

We
rely on third party suppliers, and our business may be affected by interruption of supplies or increases in product costs.

Gourmet
Foods obtains most food related products and services from third party suppliers. Gourmet Foods typically does not have long-term contracts
with suppliers. Although Gourmet Foods’ purchasing volume can provide leverage when dealing with suppliers, suppliers may not provide
the