Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 105

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 105
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 registration statement on Form S-3 which
was filed with the SEC on December 18, 2024, and became effective on December 27, 2024, the base prospectus included therein, and a prospectus
supplement that was filed by the Company with the SEC on March 7, 2025.

The
Company believes that its cash and cash equivalents along with the cash generated from ongoing operations will be sufficient to fund
its cash requirements over the next 12 months. However, based on our current operating plan which we expect may include continued
additional investments in our mobile Fintech app for the U.K. market, we may need to raise additional funds through one or more
debt, equity or equity linked financings to meet our operating and cash needs. There can be no assurance we will be able to raise
such additional financing upon terms acceptable to us or at all. In the event we are unable to obtain additional financing in an
amount or upon terms acceptable to us, we expect to further reduce or curtail our investment in the development of our Fintech
app.

Lease
Liability

The
Company has various leases for offices, warehouses and manufacturing facilities. The total amount due under these obligations was
$1.3 million as of March 31, 2025. During the nine months ended March 31, 2025, the Company renewed leases in New Zealand and the US
which increased the right-of-use assets and lease liabilities by $0.7 million. The obligations will reduce over the passage of time
through periodic lease payments. See Note 10 for further analysis of this obligation.

27

Recent
Note Financing

On
September 19, 2024, we entered into a note purchase agreement (“Purchase Agreement”) with Streeterville Capital, LLC, a Utah
limited liability company (“Holder”), pursuant to which we agreed to issue and sell to Holder a secured promissory note in
an initial principal amount of $4,380,000 (“Initial Note”) payable on or before 24 months from the issuance date (“Maturity
Date”) and, upon the satisfaction of certain conditions in the Purchase Agreement, up to one additional secured promissory note
(“Subsequent Note,” Initial Note and Subsequent Note, “Notes”). The initial principal amount of the Notes includes
an original issue discount of 9% and expenses the Company agreed to pay to the Holder to cover the Holder’s transaction costs.
The original issue discount