Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 132

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 132
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In
some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the
fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level
that is significant to the fair value measurement in its entirety.

    F-10

Revenue
Recognition

Revenue
consists of fees earned through management of investment funds in the United States and in the United Kingdom primarily based on assets
under management (“AUM”), sales of gourmet meat pies and printing of food wrappers in New Zealand, sales of security alarm
system installation and maintenance services in Canada, and sales of hair and skin care products in the United States and internationally.
Revenue is accounted for net of sales taxes, sales returns, and trade discounts. The performance obligation is satisfied when the product
has been shipped and title, risk of loss and rewards of ownership have been transferred. For most of the Company’s product sales
or services, the revenue recognition criteria described below are met at the time the product is shipped, the subscription period commences,
or the management services are provided. For our Brigadier subsidiary in Canada, the Company operates under contract with an alarm monitoring
company that pays a percentage of its recurring monitoring fee to Brigadier in exchange for continued customer service and support functions
with respect to each customer maintained under contract by the monitoring company. The Company has no costs of contracts which require
capitalization. The Company’s only contract assets are accounts receivable. The Company has no contract liabilities other than
deposits received periodically which are insignificant to the consolidated financial statements. The Company generates revenue, in part,
through contractual monthly recurring fees received for providing ongoing customer support services to monitoring company clientele.

The
five-step process governing contract revenue reporting includes:

1.
Identifying the contract(s) with customers

2.
Identifying the performance obligations in the contract

3.
Determining the transaction price

4.
Allocating the transaction price to the performance obligations in the contract

5.
Recognizing revenue when or as the performance obligation is satisfied

For
Brigadier, transactions involve security systems that are sold outright to the customer where the Company’s performance obligations
include customer support services and the sale and installation of the security systems. For such arrangements, the Company allocates
a portion of the transaction price to each performance obligation based on a relative stand-alone selling price. Revenue associated with
the sale and installation of security systems is recognized once installation is complete