Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 757

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 7
Chunk 757
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 its beauty products segment and there was no
impairment recorded during fiscal 2025.

Goodwill

Goodwill
represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a business combination transaction.
Goodwill is tested for impairment on an annual basis during the fourth quarter of the Company’s fiscal year, or more frequently
if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. The Company first performs a qualitative
test to determine if goodwill is impaired at a reporting unit. In performing this test, the Company evaluates macroeconomic factors,
industry and market considerations, cost factors such as the increase in the cost of materials or labor or other costs, overall financial
performance, changes in key personnel or customers or strategy, and other entity-specific events or trends that could indicate impairment,
among other items. If the results of this test indicate that it is more likely than not that the fair value of the reporting unit is
below its carrying value, a quantitative test is then performed to determine the amount of the impairment. When impaired, the carrying
value of goodwill is written down to fair value. The Company recorded a goodwill impairment loss of $0.4 million during fiscal 2024 relating
to its beauty products segment and there was no impairment recorded during fiscal 2024.

    F-9

Impairment
of Long-Lived Assets

The
Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the
assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds
the fair value. Other than as described in the intangible assets section, there was no impairment recorded for the years ended June 30,
2025 and 2024.

Investments
and Fair Value of Financial Instruments

Equity
securities included in short-term investments have readily determinable fair values and are carried at fair value. Debt securities included
in short-term investments are acquired with the intent to sell in the near term, are accounted for as trading securities, and are carried at fair value. Any changes in the fair
value of trading debt securities and equity securities are reflected as a component of other income (expense) in the consolidated statement
of operations. The Company measures the investments at fair value at period end with any changes in fair value reflected as