Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 166

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 166
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Investing
in our shares involves a high degree of risk and dilution. Our business operations, financial condition, results of operations, and
stock price may be affected by a number of factors. In addition to the other information in this Annual Report on Form 10-K
(“Form 10-K”), the following factors and the information contained under “Special Note Regarding Forward-Looking
Statements” should be considered in evaluating our company and our businesses. The risks and uncertainties described below are
not the only risks we face. Additional risks and uncertainties that are presently unknown or are currently deemed immaterial may
also impair our business operations. If any of the events or circumstances described in the following risks or elsewhere in this
Form 10-K occur, our business, financial condition and results of operations could suffer and the trading price of our shares of
common stock could decline.

Litigation
Risks

The
Company’s business and operation could be negatively affected by any material litigation involving the Company or
its subsidiaries.

USCF
LLC, an indirect wholly owned subsidiary, is currently the subject of class action litigation. See “Note 14. Commitments and Contingencies
- Legal Proceedings” to our consolidated financial statements included in this Form 10-K.

Estimating
an amount or range of possible losses resulting from litigation proceedings is inherently difficult and requires an extensive degree
of judgment, particularly where the matters involve indeterminate claims for monetary damages, are in the early stages of proceedings,
and are subject to appeal. In addition, because most legal proceedings are resolved over extended periods of time, potential losses are
subject to change due to, among other things, new developments, changes in legal strategy, the outcome of intermediate procedural and
substantive rulings and other parties’ settlement posture and their evaluation of the strength or weakness of their case against
us. For these reasons, we are currently unable to predict the ultimate timing or outcome of, or reasonably estimate the possible losses
or a range of possible losses resulting from, the matters described in “Item 3. Legal Proceedings” of this Form 10-K and
“Note 14. Commitments and Contingencies – Legal Proceedings” to our consolidated financial statements included in this
Form 10-K. In light of the inherent uncertainties involved in such matters, an adverse outcome in this litigation could materially adversely
affect our financial condition, results of operations or cash flows in any particular reporting period.

Litigation
could result in substantial costs and divert management’s