Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 640

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 5
Chunk 640
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 without the Holder’s prior written consent and that we will file reports under the Securities
Exchange Act timely, and that our shares will continue to be listed or quoted on the NYSE American or Nasdaq. Also, without the Holder’s
prior written consent, we may not: issue, incur or guarantee any debt obligations other than trade payables in the ordinary course; issue
any security that has conversion rights in which the number of shares varies with the market price of our shares; issue any securities
convertible into our shares with a conversion price that varies with the market price of our shares; issue any securities that have a
conversion or exercise price subject to a reset due to a change in the market price of our shares or upon the occurrence of certain events
related to our business (but excluding certain standard antidilution protection for any reorganization, recapitalization, noncash dividend,
stock split or similar transaction); issue any securities pursuant to an equity line of credit, standby equity purchase agreement or
similar arrangement. The Purchase Agreement also contains a most favored nations provision that provides we will grant to the Holder
the same terms as we offer any subsequent investor in our debt securities and certain arbitration provisions in the event of a claim
arising under the Purchase Agreement and other transaction documents.

The
Company’s obligations under the Note are secured by: (i) a pledge of all the common stock the Company owns in USCF Investments,
Inc. and (ii) a security interest in all of the assets of the Company. Further, the Company’s Chief Executive Officer’s trust,
the Nicholas and Melinda Gerber Living Trust (“Gerber Trust”), provided: (i) a guaranty of the Company’s obligations
to the Holder under the Note and (ii) a pledge of all of the common stock of the Company owned by the Gerber Trust.

Beginning
on the date that is six months from the issuance date until the applicable Note is paid in full, each month the Holder has the right
to require the Company to redeem up to an aggregate of $400,000 with respect to the Initial Note and $200,000 with respect to the Subsequent
Note plus any interest accrued thereunder and an additional payment amount equal to 6% of the principal amount. The Company has the right
to defer such redemption payments that Holder could otherwise elect to make three times by providing advance written notice to Holder.
If the Company exercises its deferral right, the outstanding balance is automatically increased by 0.85% for each