Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 189

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 189
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invested $19.1 million in the development of our Fintech app. However, our Fintech app is not a mature business and has
generated minimal revenue to date. Because of a slower than forecasted adoption rate, and the limited funds we could apply towards
marketing efforts, we were unable to achieve the projected revenues or number of subscribers we deemed necessary to continue
offering the Fintech app service in the U.S. Accordingly, effective March 31, 2025, we paused further development of the U.S.
Fintech app, and as of June 30, 2025, all employees had been terminated and all client accounts on the U.S. Fintech app had been closed. Our Marygold
UK subsidiary introduced a slimmed-down version of the app tailored specifically for the U.K. market during April 2025. It is uncertain
at this time if the U.K. Fintech app will be more widely adopted by users in the U.K., or if significant revenues will be realized as
a result. We continue to invest in Marygold UK, and those funds are used to provide technical support and marketing efforts in the UK
for the UK Fintech app. Although expenses have been curtailed significantly by the closure of the U.S. Fintech app, there may be a need
for continuing expenses in the U.K. beyond our ability to fund from consolidated operating income.

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 $1.8 million in net proceeds from our recent equity financing which closed on January 28, 2025,
and intended to use such net proceeds to retire or repay outstanding indebtedness, make further capital contributions to our Marygold
& Co. subsidiaries in the 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 in the U.K., 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,
and our ability to predict revenue generation from