Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 23

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 compensatory damages, restitution,
equitable relief, attorney’s fees, and costs. The plaintiffs in the Cantrell and AML Actions have marked their actions as related
to the Lucas Class Action.

The
Court consolidated the Cantrell and AML Actions under the caption In re United States Oil Fund, LP Derivative Litigation, Civil
Action No. 1:20-cv-06974 and appointed co-lead counsel. All proceedings in In re United States Oil Fund, LP Derivative Litigation
are stayed pending disposition of the motion(s) to dismiss in In re: United States Oil Fund, LP Securities Litigation.

USCF
LLC, USO, and the other defendants intend to vigorously contest the claims in In re United States Oil Fund, LP Derivative Litigation.

    18

No
accrual or reserve has been made with respect to the above legal matters for the nine months ended March 31, 2025, or the year ended
June 30, 2024. We are currently unable to predict the timing or outcome of, or reasonably estimate the possible losses or range of possible
losses resulting from these matters. Although we are vigorously contesting the litigation claims discussed above, in the near term it
is reasonably possible that we may be required to establish a reserve or an accrual in the future depending upon the outcome of any of
the foregoing litigation matters. An adverse outcome in any of these matters could materially adversely affect the Company’s financial
condition, results of operations and cash flows.

Retirement
Plan

The
Company has a 401(k) Profit Sharing Plan (“401K Plan”) covering U.S. employees. Participants may make contributions pursuant
to a salary reduction agreement. In addition, the 401K Plan makes a safe harbor matching contribution. The Company’s matching contributions
were less than $0.1 million for each of the three months ended March 31, 2025 and 2024 and less than $0.2 million for each of the nine
months ended March 31, 2025 and 2024.

NOTE
11. RELATED PARTY TRANSACTIONS

USCF
Investments – Related Party Transactions

The
funds managed by USCF LLC and USCF Advisers are considered related parties for financial accounting purposes. The Company’s
fund management revenue, totaling $4.1
million and $4.4
million for the three months ended March 31, 2025 and 2024,