Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 599

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 5
Chunk 599
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 may vary from those estimates.

We
believe the following accounting policies are the most critical in the preparation of our financial statements because they involve the
most difficult, subjective or complex judgments about the effect of matters that are inherently uncertain.

Business
Combinations - Valuation of Intangible Assets

We
are a  holding company whose activities involve the acquisition of operating companies through stock purchase or asset purchase
transactions. We account for business combinations using the acquisition method of accounting. All the assets acquired, liabilities assumed
and amounts attributable to intangible assets, including goodwill, are recorded at their respective fair values at the date of acquisition.
Determination of fair value involves estimates and assumptions which can be complex, most notably with respect to intangible assets.
Critical estimates used in the valuation of intangible assets include, but are not limited to, the amount and timing of projected cash
flows, useful lives, and discount rates. While management’s estimates of fair value are based on assumptions that are believed
to be reasonable, these assumptions are inherently uncertain as they pertain to forward-looking views of our business and market conditions.
The judgments made in this valuation process could materially impact our consolidated financial statements.

Revenue
Recognition

Our
operating subsidiaries derive revenues from a number of sources including sales of hardware, services, food items, printing, financial
services, and consumer products. The company recognizes the revenue when the product or service is delivered, or the ownership of the
product is deemed to have been transferred to the buyer. We carefully monitor the outgoings of product shipments and service completions
to ensure revenues are properly recorded. In the case of continued support services, such as warranty or extended contracts, the company
makes an assessment at each reporting period as to the significance of the cost of such support or warranty. This estimate is based on
historical experience and careful monitoring of costs throughout the reporting period to determine if any reserve should be recorded
for estimated expenses. We believe we have made careful and reasonable estimates, however adjustments may be required in the future if
actual results vary from our estimates.

Impairments

Goodwill
and other intangible assets are tested for impairment at the reporting unit level on an annual basis and between annual tests if an event
occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These
events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators,
competition, or sale or disposition of a significant portion