Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 85

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 85
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) the market value of the shares of common stock
held by non-affiliates exceeds $250 million as of the prior December 31, and (ii) our annual revenue exceeded $100 million during such
completed fiscal year or the market value of the shares of common stock held by non-affiliates exceeds $700 million as of the prior December
31. To the extent we take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with
other public companies difficult or impossible.

Losses
or unauthorized access to or releases of confidential information, including personal information, could subject us to significant reputational,
financial, legal and operational consequences.

Our
businesses require us to use and store confidential information, including personal information, with respect to our customers and employees
and also requires us to share confidential information with suppliers and other third parties. We rely on suppliers that are also exposed
to ransomware and other malicious attacks that can disrupt business operations. Although we take steps to secure confidential information
that is provided to or accessible by third parties working on our behalf, such measures may not always be effective and losses or unauthorized
access to or releases of confidential information may occur. Such incidents and other malicious attacks could materially adversely affect
our business, reputation, results of operations and financial condition.

We
have implemented systems and processes intended to secure our information technology systems and prevent unauthorized access to or loss
of sensitive data, and mitigate the impact of unauthorized access, including through the use of encryption and authentication technologies
and we continue to undertake regular reviews of our IT infrastructure and have investigated improved software and hardware cyber threat
protection solutions. These measures cannot provide absolute security, and losses or unauthorized access to or releases of confidential
information may occur and could materially adversely affect our business, reputation, results of operations and financial condition.

Risks
Related to Our Controlled Company Election and Status

We
are a “controlled company” within the meaning of the NYSE American rules and rely on exemptions
from various corporate governance requirements that provide protection to stockholders of other companies.

We
are a “controlled company” as defined in section 801(a) of the NYSE American Company Guide because more than 50% of the combined
voting power of all of our voting stock is beneficially owned or controlled by Messrs. Gerber and Schoenberger. Under the
NYSE American rules, a company of which more than 50% of the voting power is held by another person or group of persons acting together