Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 112

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 112
---
 or curtail our investment in the development of our
Fintech app.

28

Lease
Liability

The
Company has various leases for offices, warehouses and manufacturing facilities. The total amount due under these obligations was $1.4
million as of December 31, 2024. During the six months ended December 31, 2024, 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.

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 of the Initial Note was $360,000. Interest on the principal
amount of the Notes accrues at a rate of 9% per annum. The Company may pay all or any portion of the amount owed under the Notes
earlier than it is due. All payments made under the Notes, including any repayments, are subject to an additional amount payable
equal to 6% of the portion of the outstanding balance being repaid. The Subsequent Note would have a principal amount of
$2,180,000, which will have terms substantially similar to the terms of the Initial Note. The original issue discount on the
Subsequent Note, if issued, will be $180,000.

The
Purchase Agreement contains certain covenants and agreements, including that we will not pledge or grant any lien or security interest
in our or our subsidiaries’ assets without the Holder’s prior written consent and that we will file reports under the Securities
Exchange Act timely, and that our shares will continue to be listed or quoted on