Company: MGLD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001493152-25-021259
Chunk: 22

Company: Marygold Companies, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 2025. We are currently unable to predict the timing or outcome of, or reasonably estimate the possible losses or range of possible
losses resulting from these matters. Although we are vigorously contesting the litigation claims discussed above, in the near term it
is reasonably possible that we may be required to establish a reserve or an accrual in the future depending upon the outcome of any of
the foregoing litigation matters. An adverse outcome in any of these matters could materially adversely affect the Company’s financial
condition, results of operations and cash flows.

Retirement
Plan

The
Company has a 401(k) Profit Sharing Plan (“401K Plan”) covering U.S. employees. Participants may make contributions pursuant
to a salary reduction agreement. In addition, the 401K Plan makes a safe harbor matching contribution. The Company’s matching contributions
were less than $0.1 million for each of the three months ended September 30, 2025 and 2024.

NOTE
11. RELATED PARTY TRANSACTIONS

USCF
Investments – Related Party Transactions

The
funds managed by USCF LLC and USCF Advisers are considered related parties for financial accounting purposes. The Company’s fund
management revenue, totaling $4.3 million and $4.6 million for the three months ended September 30, 2025 and 2024, respectively, were
earned from these related parties. Accounts receivable, totaling $1.5 million and $1.3 million as of September 30, 2025 and June 30,
2025, respectively, were owed from the funds that may be deemed related parties. USCF Investments, from time to time, provides initial
seed capital investments in connection with the organization of ETP and ETF funds that USCF LLC manages. As of September 30, 2025 and
June 30, 2025, the Company held a total of $2.4 million and $3.6 million, respectively, in funds managed by USCF Advisers which are included
in investments on the consolidated balance sheets. The Company owns 32% and 21% of the outstanding shares of or other interest in these
funds as of September 30, 2025 and June 30, 2025, respectively. Included in interest and dividend income on the consolidated statements
of operations are $0.1 million for both the three months ended September 30, 2025 and 2024, respectively, of dividends earned from