Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 124

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 3
Chunk 124
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 or restructure our obligations, all of which may adversely affect our liquidity, financial
                                            condition, results of operations, and stock price. There can be no assurance we will be able
                                            to liquidate our assets, restructure our indebtedness, or obtain additional financing upon
                                            terms acceptable to us, or at all.

●Restrictive
                                            covenants: Our debt agreements contain certain covenants that restrict our operational flexibility,
                                            including limitations on mergers and acquisitions, sales of assets, and our ability to engage
                                            in certain equity linked financing transactions in which the conversion or exercise price
                                            of any debt or other equity linked securities we issue in the transaction varies with the
                                            market price of our 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