Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 376

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1C
Chunk 376
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 exchange for an aggregate
commission equal to 7% of the gross cash proceeds received from the sale of the Notes.

As
of June 30, 2025, the note payable balance outstanding, net of the original issue discount and fees paid, was $1.3
million, all of which is due within 12 months from June 30, 2025 assuming no deferral rights are exercised. The effective interest
rate for this note is 41.3%. Interest expense for this note payable during fiscal year 2025 was $1.2 million which included $0.6 million of amortization
of debt issuance costs.

As
of June 30, 2024, Brigadier had an outstanding principal balance of $0.3 million due related to the purchase of its Saskatoon office
land and building. The bank loan matured and was paid off in full in July 2024.

NOTE
12. STOCKHOLDERS’ EQUITY

Warrants
to Purchase Common Stock

In
connection with the Company’s underwritten public offering in fiscal 2022, the Company issued the underwriter’s warrants
to purchase up to an aggregate of 82,500
shares of Common Stock as compensation for their services related to this issuance. The warrants may be exercised until March 14,
2027. The exercise price of each warrant is $2.40
per share. As of June 30, 2025, no warrants were exercised.

    F-18

Convertible
Preferred Stock

The
Company has 50,000,000 shares authorized to issue as Preferred Stock. The Preferred Stock is designated into two series: 5,000,000 shares
designated as Series A and 45,000,000 shares designated as Series B. As of June 30, 2025 there are no issued or outstanding shares of
Series A stock.

Each
issued Series B Convertible Preferred Stock is convertible into 20
shares of common stock and carries a vote of 20 shares of common stock in all matters brought before the shareholders for a vote.
During fiscal year 2025, 36,058 shares of Series B Preferred Stock were converted into 721,160 shares of common stock. There are 13,302
and 49,360
shares of Series B Convertible Preferred Stock outstanding as of June 30, 2025 and 2024, respectively.

Stock-based
Compensation

In
2021, the Company adopted the