Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 94

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 94
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 the operating performance
of those companies. These broad market and industry fluctuations, as well as general economic, political, and market conditions such
as recessions, interest rate changes, or international currency fluctuations, may negatively impact the market price of shares of our
common stock. In addition, such fluctuations could subject us to securities class action litigation, which could result in substantial
costs and divert our management’s attention from other business concerns, which could potentially harm our business. Also, because
we are a controlled company, there is a limited market for our common stock, and we cannot assure our stockholders that a trading market
will develop or persist.

Additionally,
selling short is a technique used by a stockholder to take advantage of an anticipated decline in the price of a security. A significant
number of short sales or a large volume of other sales within a relatively short period of time can create downward pressure on the market
price of a security. Holders of our securities could, therefore, experience a decline in the value of their investment as a result of
short sales of our common stock.

If
securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our share price
and trading volume could decline. 

The trading market for our shares depends, in part, on the research and
reports that securities or industry analysts publish about us or our business. There can be no assurance that analysts will cover us or
provide favorable coverage. If one or more analysts downgrade our shares or change their opinion of our share price our share price may
decline. In addition, if one or more analysts cease coverage of us or fails to regularly publish reports on us, we could lose visibility
in the financial markets, which could cause our share price or trading volume to decline.

19

Current
stock holdings may be diluted if we make future equity issuances or if outstanding options are exercised for shares of our common stock.

“Dilution”
refers to the reduction in the voting effect and proportionate ownership interest of a given number of shares of common stock as the
total number of shares increases. Our issuance of additional stock, convertible preferred stock, or convertible debt may result in dilution
to the interests of shareholders and may also result in the reduction of your stock price. The sale of a substantial number of shares
into the market, or even the perception that sales could occur, could depress the price of our common stock. Also, the exercise of options
or other rights may result in