Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 67

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 67
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 competition as disruptive technologies enter the market. However, with
respect to the market share it currently enjoys, Brigadier expects to maintain its current market position in Saskatchewan and believes
that opportunities exist to capitalize on the deployment of new technologies within this market. Brigadier’s management will continue
efforts to capture additional customers through organic growth and a focus on quality.

Seasonality

Due
to its location in Canada, winter weather may negatively affect its ability to complete some installations, particularly those involving
new construction. For this reason, during the period from November through March Brigadier’s revenue is typically lower than during
other months of the year.

Employees

Brigadier
had 18 full-time employees in Canada as of June 30, 2025.

Brigadier was sold to a related
party on July 1, 2025 (see “Certain Recent Developments – Sale of Brigadier” and Note 16. Subsequent Events to the
audited consolidated financial statements in this Form 10-K).

Beauty
Products - Original Sprout

In
2017, our wholly-owned subsidiary, Kahnalytics, Inc., acquired all of the assets of Original Sprout LLC and subsequently adopted the fictitious business name “Original Sprout”. Original Sprout LLC was
founded in 2003. Original Sprout is engaged in the retail sales and wholesale distribution of hair and skin care products under the
brand name Original Sprout on a global scale. Original Sprout formulates and packages various hair and skin care products that are
100% vegan, tested safe and non-toxic, and marketed globally through distribution networks to salons, resorts, grocery stores,
health food stores, e-tail sites and on Original Sprout’s website. Original Sprout operates from warehouse and sales offices
located in San Clemente, California.

Products
and Customers

As
a result of the COVID-19 pandemic, Original Sprout has adjusted its primary distribution and marketing channels. Prior to the pandemic
Original Sprout relied heavily upon its wholesale distribution network to place products at retail locations and generally to make products
available to consumers, whereas during COVID-19 that resulted in social distancing and closures of retail businesses, consumers avoided
traditional sales outlets. In response to this trend, many of Original Sprout’s domestic distributors became retailers by selling
direct to consumers on e-tail platforms. Original Sprout, in defense of its brand and price points, transitioned from its wholesale distribution model to making direct
sales to retail outlets and