Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 523

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 3
Chunk 523
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 $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 on or about 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 and liabilities as of June 30, 2025,
(“Final Balance Sheet”) including adjustments in the event accounts receivable become uncollectable, cash
balances increase or decrease, and/or any liabilities arise prior to Closing but which were not set forth on such Target Balance
Sheet. After a comparison of the Final Balance Sheet and the Target Balance Sheet, it was determined and agreed that an upwards
adjustment of $0.1
million be added to the purchase price resulting in the final payment amount being $1.1
million.

On June
17, 2025, the independent members of the board of directors of the Company completed their review of 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. The audit committee of the Company continued to have oversight of the transaction through the Closing Date of July 1,
2025, and the final payment adjustment procedures concluding on September 1, 2025. While the Chief Operating Decision Maker
evaluated the security systems segment for operational purposes through June 30, 2025, this was not considered a significant
operation to the Company during the years ended June 30, 2025 and 2024, respectively. As of June 30, 2025, Brigadier had total assets of $1.7 million and total liabilities of $0.3 million.

F-28

ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM
9A. CONTROLS AND PROCEDURES

Evaluation
of Disclosure Controls and Procedures

The
Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the
Company’s Chief