Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 134

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 134
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 and $3.2 million, respectively.

Segment
Reporting

The
Company defines operating segments as components about which separate financial information is available that is evaluated regularly
by the chief operating decision maker, which is our Chief Executive Officer, in deciding how to allocate resources and in assessing performances.

Stock-Based Compensation

We
use the fair value method of accounting for our stock options and restricted stock awards (“RSAs”) granted to employees and
directors to measure the cost of employee and director services received in exchange for the stock-based awards. The fair value of stock
option awards with only service conditions is estimated on the grant date using the Black-Scholes option-pricing model. The Black-Scholes
option-pricing model requires inputs such as the risk-free interest rate, expected term and expected volatility. These inputs are subjective
and generally require significant judgment. The fair value of RSAs is measured on the grant date based on the closing fair market value
of our common stock. The resulting cost is recognized over the period during which an employee or director is required to provide service
in exchange for the awards, usually the vesting period, which is generally from one to four years for stock options and RSAs. Stock-based
compensation expense is recognized on a straight-line basis, net of actual forfeitures in the period.

Business
Combinations

We
allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired
based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable
assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially
with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future
expected cash flows from acquired customers, acquired trade names from a market participant perspective, useful lives and discount rates.
Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and
unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition
date, we may record adjustments to the assets acquired and liabilities assumed.

    F-12

Recent
Accounting Pronouncements

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
No. 2023-07, Improvements to Reportable Segment Disclosures (Topic