Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 411

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 2
Chunk 411
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380,000 (“Initial Note”) payable on or before 24 months from the issuance date (“Maturity
Date”) and, upon the satisfaction of certain conditions in the Purchase Agreement, up to one additional secured promissory note
(“Subsequent Note,” Initial Note and Subsequent Note, “Notes”). The initial principal amount of the Notes includes
an original issue discount of 9% and expenses the Company agreed to pay to the Holder to cover the Holder’s transaction costs.
The original issue discount of the Initial Note was $360,000. Interest on the principal amount of the Notes accrues at a rate of 9% per
annum. The Company may pay all or any portion of the amount owed under the Notes earlier than it is due. All payments made under the
Notes, including any repayments, are subject to an additional amount payable equal to 6% of the portion of the outstanding balance being
repaid. The Subsequent Note would have a principal amount of $2,180,000, which will have terms substantially similar to the terms of
the Initial Note. The original issue discount on the Subsequent Note, if issued, will be $180,000.

The
Purchase Agreement contains certain covenants and agreements, including that we will not pledge or grant any lien or security interest
in our or our subsidiaries’ assets without the Holder’s prior written consent and that we will file reports under the Securities
Exchange Act timely, and that our shares will continue to be listed or quoted on the NYSE American or Nasdaq. Also, without the Holder’s
prior written consent, we may not: issue, incur or guarantee any debt obligations other than trade payables in the ordinary course; issue
any security that has conversion rights in which the number of shares varies with the market price of our shares; issue any securities
convertible into our shares with a conversion price that varies with the market price of our shares; issue any securities that have a
conversion or exercise price subject to a reset due to a change in the market price of our shares or upon the occurrence of certain events
related to our business (but excluding certain standard antidilution protection for any reorganization, recapitalization, noncash dividend,
stock split or similar transaction); issue and securities pursuant to an equity line of credit, standby equity purchase agreement or
similar arrangement. The Purchase Agreement also contains a most favored nations provision that provides we will grant to the Holder
the same terms as we offer any subsequent investor in