Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 279

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1B
Chunk 279
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 error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part
of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our
audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audits provide a reasonable basis for our opinion.

Critical
Audit Matter

The
critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that
was communicated or required to be communicated to the audit committee of the Board of Directors and that: (1) relates to accounts or
disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex
judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements,
taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit
matter or on the accounts or disclosures to which it relates.

Description
of the Matter

As
described in Note 14, Commitments and Contingencies, of the consolidated financial statements, the Company is party to various legal
proceedings and regulatory inquiries. The Company discloses the legal proceedings and that no accrual has been recorded with respect
to them as of June 30, 2025. The Company further discloses that it is currently unable to predict the timing or outcome of, or reasonably
estimate the possible losses or range of possible losses resulting from these matters, and that it is reasonably possible that this estimate
will change in the near term. The Company discloses that an adverse outcome regarding these matters could materially adversely affect
the Company’s financial condition, results of operations and cash flows. Auditing the Company’s accounting for, and disclosure
of, loss contingencies related to the various legal proceedings was especially challenging due to the significant judgement required