Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 168

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1A
Chunk 168
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. Our subsidiaries are separate legal entities, and although they may be wholly owned or controlled by us, they have no obligation
to make any funds available to us, whether in the form of loans, dividends, distributions or otherwise. The ability of our subsidiaries
to distribute cash to us are and will remain subject to, among other things, restrictions that are contained in each subsidiaries’
financing agreements, availability of sufficient funds and applicable laws and regulatory restrictions.

Claims
of creditors of our subsidiaries generally will have priority as to the assets of such subsidiaries over our claims and claims of our
creditors and stockholders. To the extent our cash flow is dependent on our subsidiaries ability to make distributions to us could materially
limit our ability to grow, pursue business opportunities or make acquisitions that could be beneficial to our businesses, including in
connection with the development of our Fintech app.

We
are dependent on certain key personnel, the loss of which may adversely affect our financial condition or results of operations.

Major
capital allocation decisions and investment decisions are made by Chief Executive Officer and Chairman of the Board of Directors,
Nicholas Gerber, with consultation from key personnel, our board, from our management team and the executive management teams from our
subsidiaries. The executive management teams that lead the Company and our subsidiaries are also highly experienced and possess
extensive skills in their respective industries. If Mr. Gerber were to become unavailable, there could be a material adverse impact on
our operations. However, the Company’s Board of Directors have the power and authority to fill a vacancy left by Mr. Gerber.
The ability to retain key personnel is important to our success and future growth. Competition for these professionals can be
intense, and we may not be able to retain and motivate our existing officers and senior employees and continue to compensate such
individuals competitively. The unexpected loss of the services of one or more of these individuals could have a detrimental effect
on our operations and negatively impact our financial condition or results of operations of our businesses and could hinder the
ability of our business and our subsidiaries to effectively compete in the various industries in which we operate.

We
need qualified personnel to manage and operate our subsidiaries.

Our
decentralized business model requires that we retain qualified and competent managers to continue day-to-day operations of our subsidiaries
and continue business operations in a changing political, business or regulatory environment. Our subsidiaries require qualified and
competent personnel to execute their business plans and continue servicing their clients, suppliers and other stakeholders