Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 56

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 56
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interest redeemed. We have the right to defer such redemption payments that Holder could otherwise elect to make three times by providing
advance written notice to the Holder. If we exercise our deferral right, the outstanding balance automatically increases by 0.85% for
each instance that the deferral right is exercised by us, which cannot be exercised more than once every ninety calendar days.

Pursuant
to the terms of the Purchase Agreement, beginning on the date of the issuance and sale of the Note and ending 24 months thereafter, the
Holder will have the right, but not the obligation, with our prior written consent, to reinvest up to an additional $10,000,000 in us
on the same terms and conditions as the Notes (structured as two tranches of $5,000,000 each).

We
engaged Maxim to serve as placement agent for the transaction between us and the Holder in exchange for an aggregate commission
equal to 7% of the gross cash proceeds received by us from the sale of the Notes.

As
of June 30, 2025, the Initial 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 during the fiscal year 2025 was $1.2 million which included $0.6 million of
amortization of debt issuance costs.

Equity
Distribution Agreement

On
March 7, 2025, we entered into an Equity Distribution Agreement (“Equity Distribution Agreement”) with Maxim, pursuant to which we may offer and sell, from time to time in our sole discretion, shares of our common stock through or to Maxim, as
sales agent or principal. The offer and sale, if any, of shares of common stock under the Equity Distribution Agreement will be made
pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-283898) (“Shelf Registration Statement”)
which was filed with the Securities and Exchange Commission (“SEC”) on December 18, 2024, and became effective on December
27, 2024, the base prospectus included therein (“Base Prospectus”), and a prospectus supplement that we filed by with the
SEC on March 7, 2025 (“ATM Prospectus