Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 88

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 88
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 adverse effect on our business and results from operations. 

We
depend upon information technology, infrastructure, including network, hardware and software systems to conduct our businesses. Despite
our implementation of security measures, there are numerous and evolving risks to cybersecurity and privacy, including risks originating
from intentional acts of criminal hackers, nation states and competitors, intentional and unintentional acts or omissions of customers,
vendors, contractors, employees and other third parties that may result in damage, breakdown, or interruption from computer viruses,
ransomware, malware, phishing, social engineering, fraudulent inducement, electronic fraud, wire fraud, human error or malfeasance, unauthorized
access, natural disasters, and telecommunications and electrical failures. Each of our businesses directly or indirectly store, collect
and transmit sensitive data, including intellectual property, confidential information, proprietary business information, customer or
personal data. The secure processing of such data, maintenance, and transmission of such data is important to our operations. We face
increased cybersecurity risks due to our reliance on internet technology. We may not be able to anticipate all types of security threats
or be able to implement security measures effective against all such threats or implement preventive measures effective against all such
threats. The techniques used by cybercriminals change frequently and may not be recognized until launched and can originate from a wide
variety of sources, as discussed above. Even if identified, we may not be able to adequately investigate or remediate incidents or breaches
due to attacks increasingly using tools and techniques that are designed to circumvent controls, to avoid detection, and to remove or
obfuscate forensic evidence. Accordingly, our data protection efforts and related security measures may not be adequate to protect against
highly targeted sophisticated cyber-attacks, or other improper disclosures of confidential and/or sensitive information. Additionally,
we may have access to confidential or other sensitive information of our customers. suppliers, or services providers which despite our
efforts to protect, may be vulnerable to security breaches, theft, or improper disclosure any of which could have a material adverse
effect on our competitive position, results of operations, cash flows or financial condition. The increase in personnel working remotely
during and after the recent pandemic has increased the risk for our and our vendors and suppliers’ security breaches and incidents.
If a security breach or other incident results in the unauthorized access to or use, disclosure, release, or other processing of confidential
or proprietary information, we could incur liability and it may be necessary to notify persons, governmental authorities, supervisory