Company: MGLD
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001493152-25-005002
Chunk: 111

Company: Marygold Companies, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 2
Chunk 111
---
 a  financing arrangement under which we borrowed $4.4 million and have the potential to borrow an additional $2.2
million. The financing arrangement also gives the lender the right but not the obligation to provide an additional $10.0 million
in financing to us on the same terms as the initial loans. We expect that we will require additional financing to fund our fintech operations
over the coming 12 months. As the funding requirements become known, we will decide upon the source of the additional capital. Despite
these cash investments and expenses, our working capital position remains strong at $14.4 million as of December 31, 2024.

Recent
Equity Financing

On
January 28, 2025, we closed on the sale of an aggregate of 2,050,000 shares of our common stock, $0.001 par value per share
(“Common Stock”) at a price to the public of $1.10 per share (before deduction of underwriting discounts and
commissions) in a firm commitment underwritten public offering (“Offering”) pursuant to an underwriting agreement, dated
January 26, 2025 (“Underwriting Agreement”), between us and the Maxim Group LLC (“Maxim”), as sole
underwriter and book-running manager for the Offering. Pursuant to the Underwriting Agreement, we granted Maxim a 45-day option to
purchase up to an additional 307,500 shares of Common Stock at the public offering price before deduction of underwriting discounts
and commissions (“Overallotment Option”). As of the date of this Report, Maxim has not exercised its Overallotment
Option and there can be no assurance that it will do so.

The
net proceeds of the Offering to us, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately
$1,850,000. We intend to use the net proceeds from the Offering to retire or reduce debt, make additional investments in our financial services operations, and for other general working capital and corporate purposes.

Based
on our current operating plan which we expect may include continued additional investments in our mobile Fintech app, we may need to raise
additional funds through one or more debt and/or equity financing to meet our operating and cash needs. There can be no assurance we
will be able to raise such additional financing or upon terms acceptable to us. In the event we are unable to obtain additional
financing in an amount or upon terms acceptable to us, we expect to reduce