Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 171

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 171
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In
the past, we have expanded our business internationally. This expansion subjects us to increased operational, regulatory, financial and
other risks.

We
face increased operational, regulatory, financial, compliance, reputational and foreign exchange rate risks as a result of our international
expansion. The failure of our compliance and internal control systems to properly mitigate such additional risks, or of our operating
infrastructure to support such expansion, could result in operational failures and regulatory fines or sanctions. If our international
products and operations experience any negative consequences or are perceived negatively in non-U.S. markets, it may also harm our reputation
in other markets, including the U.S. market.

Our
risk management policies and procedures, and those of our third-party vendors upon which we rely, may not be fully effective in identifying
or mitigating risk exposure, including employee misconduct. If our policies and procedures do not adequately protect us from exposure
to these risks, we may incur losses that would adversely affect our financial condition, reputation and market share.

We
have developed risk management policies and procedures and we continue to refine them as we conduct our business. Many of our procedures
involve oversight of third-party vendors that provide us with critical services. Our policies and procedures to identify, monitor and
manage risks may not be fully effective in mitigating our risk exposure.

These
risks are difficult to detect in advance and deter, and could harm our business, results of operations or financial condition. If our
policies and procedures do not adequately protect us from exposure and our exposure is not adequately covered by insurance or other risk-shifting
tools, we may incur losses that would adversely affect our financial condition and could cause a reduction in our revenues as investors
in our products shift their investments to the products of our competitors.

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We
rely on trademarks, trade secrets, and other forms of intellectual property protections, which may not be adequate to protect us from
misappropriation or infringement of our intellectual property.

We
rely on a combination of trademark, trade secret and other intellectual property laws in the U.S. and foreign jurisdictions in which
we operate our businesses. We have applied for registration of a limited number of trademarks in the U.S. and in certain other countries,
some of which have been registered or issued. We cannot guarantee that our applications will be approved by the applicable governmental
authorities, or that third parties will not seek to oppose or otherwise challenge our registrations or applications. We also rely on
un