Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 181

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 181
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 the future, acquire businesses that involve unknown risks, some of which may be particular to the industry
in which the investment or acquisition targets operate, including risks in industries with which we are not familiar or experienced. There
can be no assurance our due diligence investigations will identify every matter that could have a material adverse effect on us or the
entities that we may acquire. We may be unable to adequately address the financial, legal and operational risks raised by such investments
or acquisitions, especially if we are unfamiliar with the relevant industry, which can lead to significant losses on material investments.
The realization of any unknown risks could expose us to unanticipated costs and liabilities and prevent or limit us from realizing the
projected benefits of the investments or acquisitions, which could adversely affect our financial condition and liquidity. In addition,
our financial condition, results of operations and the ability to service our debt may be adversely impacted depending on the specific
risks applicable to any business we invest in or acquire and our ability to address those risks.

17

We
could consume resources in researching acquisitions and dispositions, business opportunities or financings and capital market transactions that are
not consummated, which could materially adversely affect subsequent attempts to locate and acquire or invest in another
business.

We
are a holding company in the business of owning and operating profitable businesses. Our business model also encompasses researching
and investigating new acquisitions and business opportunities which may include disposal of subsidiaries to support the growth of
our Company. With each new contemplated acquisition or business opportunity, there are resources that must be allocated towards
acquisition or engaging in a new business opportunity such as, the negotiation, drafting and execution of relevant agreements,
disclosure documents and other instruments with respect to such transaction and may require substantial management time and
attention and substantial costs for financial advisors, accountants, attorneys and other advisors. If a decision is made not to
consummate a specific acquisition, business opportunity or financing and capital market transaction, the costs incurred up to that
point for the proposed transaction likely would not be recoverable. Furthermore, even if an agreement is reached relating to a
specific acquisition, investment target or financing, we may fail to consummate the investment or acquisition for any number of
reasons, including those beyond our control. Any such event could consume significant management time and result in a loss to us of
the related costs incurred, which could adversely affect our financial position and our ability to consummate other acquisitions and
investments.

We
may not accurately predict revenue streams while we consume