Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 76

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 76
---
 we have invested $19.1 million in the development of our Fintech app for the U.S. market. Due to its
limited acceptance in the U.S., effective March 31, 2025, we paused further development of the Fintech app, although we are offering
a scaled version of the app in the U.K. In the event we are able to raise additional financing or to license the app to a third party,
we may continue the development of the Fintech app for the U.S. market, although there can be no assurance we will be able to do so.

We
are a holding company, and our only material assets are our cash in hand, equity and other interests in our operating subsidiaries, and
our other investments. As a result, our principal sources of cash flow are distributions from our subsidiaries. Our subsidiaries may
be limited by law and by contract from making distributions to us.

As
a holding company, our assets are cash and cash equivalents, equity interests in our subsidiaries and our other investments.

The
principal sources of our cash flow consist of distributions, loans or other
payments from our subsidiaries. Thus, our ability to finance future acquisitions or develop
new projects is dependent on the ability of our subsidiaries to generate sufficient net income and cash flows to make upstream cash distributions
to us. Our subsidiaries are separate legal entities, and although they may be wholly owned or controlled by us, they have no obligation
to make any funds available to us, whether in the form of loans, dividends, distributions or otherwise. The ability of our subsidiaries
to distribute cash to us are and will remain subject to, among other things, restrictions that are contained in each subsidiaries’
financing agreements, availability of sufficient funds and applicable laws and regulatory restrictions.

Claims
of creditors of our subsidiaries generally will have priority as to the assets of such subsidiaries over our claims and claims of our
creditors and stockholders. To the extent our cash flow is dependent on our subsidiaries ability to make distributions to us could materially
limit our ability to grow, pursue business opportunities or make acquisitions that could be beneficial to our businesses, including in
connection with the development of our Fintech app.

We
are dependent on certain key personnel, the loss of which may adversely affect our financial condition or results of operations.

Major
capital allocation decisions and investment decisions are made by Chief Executive Officer and Chairman of the Board of Directors,
Nicholas Gerber, with consultation from key personnel, our board, from our management