Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 495

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 3
Chunk 495
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ourmet Foods that is included with Property and equipment on the
Consolidated Balance Sheets.

Intangible
Assets

Intangible
assets consist of brand names, recipes, customer relationships and the internally developed software for the Fintech app developed
by Marygold. Intangible assets with finite lives are amortized over the estimated useful life. Intangible assets including those
with indefinite lives are evaluated for impairment at least on an annual basis and whenever events or changes in circumstances
indicate that the carrying value may not be recoverable. When it is determined that an intangible asset is impaired, the Company
recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company recorded an
impairment loss of $1.0 million
during fiscal 2024 relating to intangible assets in its beauty products segment and there was no
impairment recorded during fiscal 2025.

Goodwill

Goodwill
represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a business combination transaction.
Goodwill is tested for impairment on an annual basis during the fourth quarter of the Company’s fiscal year, or more frequently
if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. The Company first performs a qualitative
test to determine if goodwill is impaired at a reporting unit. In performing this test, the Company evaluates macroeconomic factors,
industry and market considerations, cost factors such as the increase in the cost of materials or labor or other costs, overall financial
performance, changes in key personnel or customers or strategy, and other entity-specific events or trends that could indicate impairment,
among other items. If the results of this test indicate that it is more likely than not that the fair value of the reporting unit is
below its carrying value, a quantitative test is then performed to determine the amount of the impairment. When impaired, the carrying
value of goodwill is written down to fair value. The Company recorded a goodwill impairment loss of $0.4 million during fiscal 2024 relating
to its beauty products segment and there was no impairment recorded during fiscal 2024.

    F-9

Impairment
of Long-Lived Assets

The
Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the
assets. Whenever any such impairment exists,