Company: MGLD
Filing Date: 2025-01-27
Form Type: 424B5
Source: 0001493152-25-003788
Chunk: 21

Company: Marygold Companies, Inc.
Filing Date: 2025-01-27
Form: 424B5
Chunk 21
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 taxable disposition of the shares. Backup withholding (currently at a rate of 24%) may apply if a U.S. Holder fails to furnish its taxpayer identification number, a U.S. Holder fails to certify under penalties of perjury that such taxpayer identification number is correct and that such U.S. Holder is not subject to backup withholding (generally on a properly completed and duly executed IRS Form W-9), the IRS notifies the applicable withholding agent that the taxpayer identification number provided for such Holder is incorrect, the applicable withholding agent is notified by the IRS that the holder previously failed to properly report payments of interest or dividends, or such U.S. Holder otherwise fails to comply with the applicable requirements of the backup withholding rules.

Certain U.S. Holders generally are not subject to backup withholding and information reporting requirements, provided that their exemptions from backup withholding and information reporting are properly established. Backup withholding is not an additional tax. Any amounts withheld from a payment to a U.S. Holder under the backup withholding rules generally will be allowed as a credit against such U.S. Holder’s U.S. federal income tax liability and may entitle such U.S. Holder to a refund, provided the required information is furnished to the IRS in a timely manner. U.S. Holders should consult their tax advisors regarding the application of backup withholding, the availability of an exemption from backup withholding, and the procedure for obtaining such an exemption, if available.

Tax Considerations Applicable to Non-U.S. Holders

Distributions on Shares

As mentioned above in the discussion of “ Tax Considerations for U.S. Holders,” Marygold does not anticipate declaring or paying any cash dividends to holders of Marygold’s common stock. However, distributions of cash or other property (other than certain distributions of Marygold’s or its subsidiaries’ stock) on the shares will constitute dividends to the extent paid out of Marygold’s current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. For this purpose, the amount by which the value of property that is distributed exceeds Marygold’s adjusted basis in it will be included in Marygold’s current year earnings and profits. Distributions in excess of Marygold’s current and accumulated earnings and profits will constitute a return of capital and first be applied against and reduce a Non-U.S. Holder’s adjusted tax basis in its common stock, but not below zero. To the extent that any distribution is in excess of the sum of (i) the Non-U.S. Holder’s share of Marygold’s current and