Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 86

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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to require the Company to redeem up to an aggregate of $400,000 with respect to the Initial Note and $200,000 with respect to the Subsequent
Note plus any interest accrued thereunder and an additional amount payable equal to 6% of the principal amount and accrued interest redeemed.
The Company has the right to defer such redemption payments that Holder could otherwise elect to make three times by providing advance
written notice to Holder. If Company exercises its deferral right, the outstanding balance automatically increases by 0.85% for each
instance that the deferral right is exercised by Company, which cannot be exercised more than once every ninety calendar days.

28

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

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

As
of March 31, 2025, the note payable balance outstanding, net of the original issue discount and fees paid, was $3.7 million, all of which
is due within 12 months from March 31, 2025 assuming no deferral rights are exercised. The effective interest rate for this note is 41.3%.

In
July 2024, Brigadier repaid its mortgage loan of $0.3 million in full that was secured with the land and building in Canada.

Investments

USCF
Investments, from time to time, provides initial investments in the creation of ETP funds that USCF Investments manages. USCF
Investments classifies these investments as current assets as these investments are generally sold within one year from the balance
sheet date. As of March 31, 2025, USCF Investments held investment positions in four of its exchange traded funds registered under the Investment Company Act of 1940,
as amended, USG (ticker changed from
GLDX in March 2024), ZSB, USE and ZSC of $1.7 million, $0.2 million, $2.5 million