Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 96

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 96
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 These sales
or the perception that these sales could occur could also depress the market price of our common stock and impair our ability to raise
capital through the sale of additional equity securities or make it more difficult or impossible for us to sell equity securities in
the future at a time and price that we deem appropriate. We cannot predict the effect that future sales of common stock or other equity-related
securities would have on the market price of our common stock.

On
March 7, 2025, we entered into an Equity Distribution Agreement with Maxim pursuant to which we may offer and sell shares of our common
stock to or through Maxim, as sales agent or principal, and will be sold in “at the market offerings.” Although we have not
sold any shares pursuant to such agreement as of the date of the filing of this Form 10-K, we may do so in the future subject to certain
limitations in the Equity Distribution Agreement and compliance with applicable law. We may sell up to 4.6 million shares from time to
time pursuant to the Equity Distribution Agreement. The issuance from time to time of shares pursuant to this agreement could have the
effect of depressing the market price, increasing the volatility of our shares, and result in dilution to existing stockholders.

Our
board of directors may issue shares of preferred stock without stockholder approval.

Our
articles of incorporation authorize the issuance of up to 50,000,000 shares of preferred stock, of which 13,302 shares of Series
B Preferred Stock are issued and outstanding. Our board of directors may, without shareholder approval, issue one or more new series
of preferred stock with rights which could adversely affect the voting power or other rights of the holders of outstanding shares of
our common stock. In addition, the issuance of shares of preferred stock may have the effect of rendering more difficult or discouraging,
an acquisition or change of control of the company. Although we do not have any current plans to issue any additional shares of preferred
stock, we may do so in the future.

Future
sales of our shares by our existing stockholders may cause our stock price to fall.

The
market price of our shares could decline as a result of sales by our existing stockholders of our shares in the market or the perception
that these sales could occur. These sales might also make it more difficult for us to conduct an equity or equity-based financing at
a time and price that we deem appropriate and thus inhibit our ability to raise additional capital when it is needed