Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 48

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 shares or upon the occurrence of certain trigger events, and other strategic
                                            initiatives. Our non-compliance with these covenants could lead to an event of default and
                                            further exacerbate our financial position.

31

Failure
to manage these risks effectively or repay our debt when due could result in severe financial and operational consequences, including
a potential reduction in the market price of our securities and a negative impact on our shareholders.

In
addition to the net proceeds we received from our recent equity and debt financings, we may need to raise additional equity or debt financing
to continue the development and marketing of our Fintech app, to fund ongoing operations, invest in acquisitions, and for working capital
purposes. Our inability to raise such additional financing may limit our ability to continue the development of our Fintech app.

In
2019, through our wholly owned subsidiary, Marygold & Co., we began development of our peer-to-peer Fintech digital money app. As
of December 31, 2024, we have invested approximately $18 million in the development of our Fintech app and we have continued to invest
in its development. However, our Fintech app is not a mature business and has generated minimal revenue to date. The financial technology
industry is occupied by certain well-financed competitors with capital resources to fund marketing campaigns and the continued development
and enhancement of such services. We received approximately $1.9 million in net proceeds from our recent equity financing which closed
on January 28, 2024, and intend to use such net proceeds to retire or repay outstanding indebtedness, make further capital contributions
to our Marygold & Co. subsidiaries in the U.S. and U.K., and for general working capital and corporate purposes. In addition to the
net proceeds we received from our recent equity financing and in view of our commitment to pay down indebtedness, we may need to raise
additional equity or debt financing to continue supporting the continued development and marketing of our financial technology business,
our ongoing operations, and in order to make any future acquisitions. If a decision is made to continue to make capital investments in
our financial technology division there can be no assurance our Fintech business will be successful or generate sufficient or any significant
revenues, although our ability to predict revenue generation from our subsidiaries may not be accurate from time to time. Continued investment
in our Fintech app could have a material adverse effect on our operations, our financial condition, and results of