Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 167

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 167
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 attention and resources from our business. Additionally, litigation
could give rise to perceived uncertainties as to our future, adversely affect our relationships with investors in our funds,
customers and vendors and make it more difficult to attract and retain qualified personnel. Also, a company subject to litigation
may be required to incur significant legal fees and other expenses related to any litigation. Our financial services
subsidiaries carry general corporate liability, errors and omissions, and cybersecurity risk insurance in the event of litigation
actions.

Risks
Related to our Business and Structure

We
have incurred net losses during fiscal 2025 and 2024. We have paused further development of our Fintech app for the U.S. market.

We
have incurred a net loss of $5.8 million in fiscal 2025 and a net loss of $4.1 million in fiscal 2024. We have working capital of approximately
$12.4 million as of June 30, 2025, compared to working capital of $19.0 million as of June 30, 2024, a decrease of 35%. Since 2019 and
through June 30, 2025, we have invested $19.1 million in the development of our Fintech app for the U.S. market. Due to its
limited acceptance in the U.S., effective March 31, 2025, we paused further development of the Fintech app, although we are offering
a scaled version of the app in the U.K. In the event we are able to raise additional financing or to license the app to a third party,
we may continue the development of the Fintech app for the U.S. market, although there can be no assurance we will be able to do so.

We
are a holding company, and our only material assets are our cash in hand, equity and other interests in our operating subsidiaries, and
our other investments. As a result, our principal sources of cash flow are distributions from our subsidiaries. Our subsidiaries may
be limited by law and by contract from making distributions to us.

As
a holding company, our assets are cash and cash equivalents, equity interests in our subsidiaries and our other investments.

The
principal sources of our cash flow consist of distributions, loans or other
payments from our subsidiaries. Thus, our ability to finance future acquisitions or develop
new projects is dependent on the ability of our subsidiaries to generate sufficient net income and cash flows to make upstream cash distributions
to us