Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 115

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 115
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 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 December 31, 2024, the note payable balance outstanding, net of the original issue discount and fees paid, was $3.9 million, of which
$3.5 million is due within 12 months from December 31, 2024 and the remaining balance of $0.4 million is due prior to September 30, 2026.
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 ETP 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 December 31, 2024, USCF Investments held investment positions in four of its 40 Act funds, USG (ticker changed from GLDX in March
2024), ZSB, USE and ZSC of $1.5 million, $0.2 million, $2.4 million, and $2.1 million, respectively. These investment positions along
with other investments, as applicable, are described further in Note 5 to our Financial Statements.

Dividends

We have never declared or paid any cash dividends
on our capital stock. We intend to retain future earnings, if any, to finance the operation and expansion of our businesses and do not
anticipate paying any cash dividends in the foreseeable future. Any future determination related to our dividend policy will be made at
the discretion of our board of directors after considering our financial condition, results of operations, capital requirements, business
prospects and other factors our board of directors deems relevant, and subject to the restrictions contained in any future financing instruments
or