Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 75

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 75
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- Legal Proceedings” to our consolidated financial statements included in this Form 10-K.

Estimating
an amount or range of possible losses resulting from litigation proceedings is inherently difficult and requires an extensive degree
of judgment, particularly where the matters involve indeterminate claims for monetary damages, are in the early stages of proceedings,
and are subject to appeal. In addition, because most legal proceedings are resolved over extended periods of time, potential losses are
subject to change due to, among other things, new developments, changes in legal strategy, the outcome of intermediate procedural and
substantive rulings and other parties’ settlement posture and their evaluation of the strength or weakness of their case against
us. For these reasons, we are currently unable to predict the ultimate timing or outcome of, or reasonably estimate the possible losses
or a range of possible losses resulting from, the matters described in “Item 3. Legal Proceedings” of this Form 10-K and
“Note 14. Commitments and Contingencies – Legal Proceedings” to our consolidated financial statements included in this
Form 10-K. In light of the inherent uncertainties involved in such matters, an adverse outcome in this litigation could materially adversely
affect our financial condition, results of operations or cash flows in any particular reporting period.

Litigation
could result in substantial costs and divert management’s 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,