Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 53

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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. The standard will be effective for us beginning with our annual reporting for fiscal year
2026, with early adoption permitted. We are currently evaluating the impact of this standard on our income tax disclosures.

NOTE
3. NET LOSS PER SHARE

Basic
net loss per share is based upon the weighted average number of common shares outstanding. This calculation includes the weighted
average number of shares of Series B, Voting, Convertible Preferred Stock (“Series B Preferred Stock”) outstanding as they
are deemed to be substantially similar to the common shares and shareholders are entitled to the same liquidation and dividend rights
and each share of Series B Preferred Stock is convertible at any time into 20 shares of the Company’s common stock. Diluted net
loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised.
Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the
beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at
the average market price during the period. The Company excluded common stock equivalents from the diluted net loss per share calculation
as their effect would be anti-dilutive as follows: 0.8 million, 0.8 million, 1.3 million and 1.3 million for the three months and nine
months ended March 31, 2025 and 2024, respectively. Since the Company generated a net loss in the three and nine months ended March 31, 2025, basic
and diluted net loss per share were the same.

Basic
and diluted net loss per share reflects the effects of shares potentially issuable upon conversion of the convertible Series
B Preferred Stock.

The
components of basic and diluted earnings per share were as follows (in thousands, except per share data):

 SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE 

    Three
                                            Months Ended
                                                                                March
                                            31, 2025  
    Three
                                            Months Ended
                                                                                March
                                            31, 2024 

    Net
    Loss  
    Shares  
    Per
    Share  
    Net
    Loss  
    Shares  
    Per
    Share 
  
    Basic
    and diluted net loss per share: 

    Net
    loss available to common shareholders 
    $(1,