Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 695

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 6
Chunk 695
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icing 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 280). The guidance expands the disclosures required for
reportable segments in our annual and interim consolidated financial statements, primarily through enhanced disclosures about
significant segment expenses. The standard became effective for us beginning with our annual reporting for fiscal year 2025 and
interim periods thereafter. The adoption of the new standard did not have a material impact on our segment reporting disclosures.

In
December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The guidance requires disclosure
of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and
modifies other income tax-related disclosures.