Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 172

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 172
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registered proprietary rights, including common law trademark protection. Third parties may use trademarks identical or confusingly
similar to ours, or independently develop trade secrets or know-how similar or equivalent to ours. If our proprietary information is
divulged to third parties, including our competitors, or our intellectual property rights are otherwise misappropriated or infringed,
our business could be harmed or adversely affected.

Our
financial condition and results of operations could suffer if there is an impairment of goodwill or intangible assets.

We
are required to test intangible assets with indefinite lives, including goodwill, annually or, in certain instances, more frequently,
and may be required to record impairment charges, which would reduce any earnings or increase any loss for the period in which the impairment
was determined to have occurred. Our goodwill impairment analysis is sensitive to changes in key assumptions used in our analysis. If
the assumptions used in our analysis are not realized, it is possible that an impairment charge may need to be recorded in the future.
We cannot accurately predict the amount and timing of any impairment of goodwill or other intangible assets. However, any such impairment
would have an adverse effect on our results of operations.

As
of June 30, 2025, the total recorded value of our goodwill and intangible assets was $3.5 million. During fiscal year 2024, we recorded
an impairment loss of $1.4 million related to goodwill and other intangible assets in our beauty products business segment which had
been suffering from increased losses resulting from pandemic-related changes in its distribution channels and increased costs. The impairment
loss of $1.4 million included goodwill of $0.4 million and indefinite and finite lived intangible assets totaling $1.0 million relating
to brand name, formulas and customer relations. We determined the fair value of the reporting unit using multiple methods including discounted
cash flows and pricing of comparable companies.

We may face double taxation on certain income earned by our non-U.S.
subsidiaries.

Under the Internal Revenue
Code of 1986, as amended (“Code”),  provisions governing the taxation of income earned by “controlled foreign corporations,”
most or all of the income earned by our non-U.S. subsidiaries will be subject to U.S. federal income tax in the year earned, even if
not distributed to Marygold and even if fully taxed in the foreign countries in which those subsidiaries are organized or operate.
Although the Code provides for foreign tax credit relief with respect to the foreign income taxes imposed on such income