Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 97

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 97
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Because
we have not and do not intend to pay cash dividends, our stockholders receive no current income from holding our stock.

We
have paid no cash dividends on our capital stock to date and we currently intend to retain our future earnings, if any, to fund the development
and growth of our business. We currently expect to retain earnings for use in the operation and expansion of our business, and therefore
do not anticipate paying any cash dividends in the foreseeable future. As a result, capital appreciation, if any, of our Common Stock
could be the sole source of gain for our stockholders for the foreseeable future.

Risks Related to our Recent Note Financing

In addition to the net proceeds we received
from our recent equity and debt financings, we may need to raise additional equity or debt financing to continue the development and marketing
of our Fintech app, to fund ongoing operations, invest in acquisitions, and for working capital purposes. Our inability to raise such
additional financing may limit our ability to continue the development of our Fintech app.

In 2019, through our wholly owned
subsidiary, Marygold & Co., we began development of our peer-to-peer Fintech digital money app. As of June 30, 2025, we have
invested $19.1 million in the development of our Fintech app. However, our Fintech app is not a mature business and has
generated minimal revenue to date. Because of a slower than forecasted adoption rate, and the limited funds we could apply towards
marketing efforts, we were unable to achieve the projected revenues or number of subscribers we deemed necessary to continue
offering the Fintech app service in the U.S. Accordingly, effective March 31, 2025, we paused further development of the U.S.
Fintech app, and as of June 30, 2025, all employees had been terminated and all client accounts on the U.S. Fintech app had been closed. Our Marygold
UK subsidiary introduced a slimmed-down version of the app tailored specifically for the U.K. market during April 2025. It is uncertain
at this time if the U.K. Fintech app will be more widely adopted by users in the U.K., or if significant revenues will be realized as
a result. We continue to invest in Marygold UK, and those funds are used to provide technical support and marketing efforts in the UK
for the UK Fintech