Company: MGLD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001493152-25-021259
Chunk: 12

Company: Marygold Companies, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 equities - related parties 
     4,374  
     -  
     (734) 
     3,640 
  
    Total short-term investments 
    $8,561  
    $2  
    $(734) 
    $7,829 

During
the quarter ended September 30, 2025 and year ended June 30, 2025, respectively, there were no transfers between the fair value
levels.

NOTE
6. SALE OF BRIGADIER

On
June 17, 2025, the independent members of the board of directors of the Company were presented with a proposed transaction for the sale
of the Company’s wholly owned subsidiary, Brigadier Security Systems (2000) Ltd., a Canadian registered corporation (“Brigadier”).
The independent members of the board of directors reviewed an independent valuation of the fair market value of Brigadier and based upon
such valuation and their review of the terms of the proposed transaction, approved the transaction.

On June 19, 2025, the Company entered
into a stock purchase agreement (“Agreement”) with SKCAL LLC, an Arizona limited liability company (“SKCAL”),
pursuant to which the Company agreed to sell to SKCAL all of the shares of stock (“Shares”) that it owns in its
wholly owned subsidiary, Brigadier. Scott Schoenberger, a director and a 10.9% shareholder of the Company, is the sole member of SKCAL.
The closing (“Closing”) of the sale of Shares took place on July 1, 2025, (“Closing Date”).

Pursuant
to the Agreement, the purchase price for the Shares acquired by SKCAL at Closing was $2.2
million subject to certain adjustments thereto. An initial
payment of $0.2
million was paid within a few days of the execution and delivery
of the Agreement by the parties. An additional $1.0
million was paid near the Closing Date, of which $0.5
million was received as of June 30, 2025. A final payment of
$1.0
million was payable on September 1, 2025, subject to adjustment
upward or downward thereto in the event of a difference between the Closing Date schedule of Brigadier’s current assets and liabilities
as of June 30, 2025, (“Target Balance Sheet”), and the schedule of Brigadier’s audited current
assets