Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 134

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 1
Chunk 134
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Refer
to “Note 10. Commitments And Contingencies – Litigation” in our Condensed Consolidated Financial Statements included
in this Report.

Item
1A. Risk Factors

We
are subject to certain risks and uncertainties in our business operations. In addition to the risks described below, you should carefully
consider the factors discussed under “Item 1A -Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended
June 30, 2024 (“2024 Form 10-K”). The risks discussed in our 2024 Form 10-K and the risks discussed below could materially
affect our business, financial condition, results of operations and the market for our shares. The risks described in our 2024 Form 10-K
and below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be
immaterial also may materially and adversely affect our business, financial condition or operating results.

Risks Related to our Recent Note Financing

We
may be unable to generate sufficient cash flows from operations to repay amounts due under our recent debt financing or other obligations
we have incurred which could adversely affect our business, including our ability to further develop and market our Fintech app, as well
as our financial condition, results of operations, and our stock price.

In
September 2024, we entered into a significant debt financing transaction, which has increased our debt obligations. See
“Liquidity and Capital Resources” in our MD&A. This indebtedness could limit our ability to
operate effectively and may expose us to various risks, including:

●An
                                            inability to repay debt when due: Our cash flow may not be sufficient to meet our debt service
                                            obligations, especially if our revenues and/or cash flows from operations decline or if we
                                            encounter unforeseen operational or other challenges. Failure to repay this debt when due
                                            could lead to a default under the terms of our debt agreements.

●Event
                                            of default consequences: The occurrence of an event of default under our debt agreements
                                            could result in the acceleration of our indebtedness, requiring immediate repayment of outstanding
                                            amounts, an increase in the amount due, and a requirement to pay an increased (or default)
                                            rate of interest on the outstanding amount due. Our obligations under the debt agreements
                                            are secured by a pledge of our shares in USCF Investments and a security interest in all
                                            our assets enabling the