Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 219

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 219
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 governance practices, monitoring
regulatory affairs, including those of its operating businesses and involvement in governance-related issues of its subsidiaries as needed.

NOTE
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation and Accounting Principles

The
Company has prepared the accompanying financial statements on a consolidated basis. In the opinion of management, the accompanying consolidated
balance sheets and related consolidated statements of operations, comprehensive loss, stockholders’ equity, and cash flows include
all adjustments, consisting only of normal recurring items, necessary for their fair presentation, prepared on an accrual basis, in conformity
with generally accepted accounting principles in the United States of America (“U.S. GAAP”).

Principles
of Consolidation

The
accompanying consolidated financial statements, which are referred herein as the “Financial Statements”, include the accounts
of The Marygold Companies and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

Use
of Estimates

The
preparation of the Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial Statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Foreign
Currencies

We
record foreign currency translation adjustments and transaction gains and losses in accordance with Accounting Standards Codification
(“ASC”) 830, Foreign Currency Matters. Assets and liabilities are translated at the exchange rate on the balance sheet date,
and operating results are translated at the average exchange rates throughout the prevailing period. Translation adjustments resulting
from this process are recorded to other comprehensive income (loss).

    F-7

Cash
and Cash Equivalents

Cash
and cash equivalents includes all cash and highly liquid debt instruments with original maturities of three months or less on the date
of purchase. The Company maintains its cash and cash equivalents in financial institutions in the United States, United Kingdom, Canada,
and New Zealand. Accounts in the United States are insured by the Federal Deposit Insurance Corporation. Accounts in New Zealand are
uninsured. The Company has, at times, held deposits in excess of insured amounts, but the Company does not expect any losses in such
accounts.

Accounts
Receivable

Management
regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, customer concentrations, current economic
trends, changes in customer payment patterns and reasonable and