Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 81

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 81
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 the total recorded value of our goodwill and intangible assets was $3.5 million. During fiscal year 2024, we recorded
an impairment loss of $1.4 million related to goodwill and other intangible assets in our beauty products business segment which had
been suffering from increased losses resulting from pandemic-related changes in its distribution channels and increased costs. The impairment
loss of $1.4 million included goodwill of $0.4 million and indefinite and finite lived intangible assets totaling $1.0 million relating
to brand name, formulas and customer relations. We determined the fair value of the reporting unit using multiple methods including discounted
cash flows and pricing of comparable companies.

We may face double taxation on certain income earned by our non-U.S.
subsidiaries.

Under the Internal Revenue
Code of 1986, as amended (“Code”),  provisions governing the taxation of income earned by “controlled foreign corporations,”
most or all of the income earned by our non-U.S. subsidiaries will be subject to U.S. federal income tax in the year earned, even if
not distributed to Marygold and even if fully taxed in the foreign countries in which those subsidiaries are organized or operate.
Although the Code provides for foreign tax credit relief with respect to the foreign income taxes imposed on such income, that
relief is limited in several respects that could have the effect of subjecting the same income to both U.S. and foreign income
taxation.

Legal,
Compliance and Regulatory Risks

Our
business is subject to extensive government regulation and oversight. Our failure to comply with extensive, complex, overlapping, and
frequently changing rules, regulations, and legal interpretations could materially harm our business.

Our
business is subject to complex and changing laws, rules, regulations, policies, and legal interpretations in the markets in which we
operate, including, but not limited to, those governing and enforcing: banking, credit, deposit taking, cross-border and domestic money
transmission, prepaid access, foreign currency exchange, privacy and data protection, data governance, cybersecurity, banking secrecy,
digital payments and cryptocurrency, payment services (including payment processing and settlement services), fraud detection, consumer
protection, antitrust and competition, economic and trade sanctions, anti-money laundering, and counter-terrorist financing. As we, through
our subsidiaries, introduce new products and services and expand into new markets, including through acquisitions, we may become subject
to additional regulations, restrictions, and licensing requirements.

Any
failure or perceived failure to