Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 56

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 year
2026, with early adoption permitted. We are currently evaluating the impact of this standard on our income tax disclosures. 

NOTE
3. NET INCOME (LOSS) PER SHARE

Basic
net (loss) income per share is based upon the weighted average number of common shares outstanding. This calculation includes the
weighted average number of shares of Series B, Voting, Convertible Preferred Stock (“Series B Preferred Stock”)
outstanding as they are deemed to be substantially similar to the common shares and shareholders are entitled to the same
liquidation and dividend rights and each share of Series B Preferred Stock is convertible at any time into 20 shares of the Company’s common
stock. Diluted net (loss) income per share is based on the assumption that all dilutive convertible
shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method,
options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if
funds obtained thereby were used to purchase common stock at the average market price during the period. The Company excluded common
stock equivalents from the diluted net loss per share calculation as their effect would be anti-dilutive as follows: 1.1
million, 1.4
million, 1.1
million and 1.4
million for the three months and six months ended December 31, 2024 and 2023, respectively. Since the Company generated a net loss
in the quarter ended December 31, 2024, basic and diluted net (loss) income per share were the same.

Basic
and diluted net income (loss) per share reflects the effects of shares potentially issuable upon conversion of the convertible
Series B Preferred Stock.

The
components of basic and diluted earnings per share were as follows (in thousands, except per share data):

 SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE 

    Three
Months Ended December 31, 2024   
    Three
Months Ended December 31, 2023  

    Net Loss  
    Shares  
    Per Share  
    Net Loss  
    Shares  
    Per Share 
  
    Basic and diluted net loss per share: 

    Net loss available to common shareholders 
    $(1,705) 
     39,876  
    $(0.04) 
    $(