Marygold Companies (MGLD) risk factors, 2026 10-K

Other

1. 01The Company’s business and operation could be negatively affected by any material litigation involving the Company or its subsidiaries

Risks Related to our Business, Operations and Structure

1. 02As a holding company, our assets are cash and cash equivalents, equity interests in our subsidiaries and our other investments38% rewritten
2. 03We are dependent on certain key personnel, the loss of which may adversely affect our financial condition or results of operations
3. 04We need qualified personnel to manage and operate our subsidiaries
4. 05Errors or failures in the execution, processing or oversight of investment transactions in our ETP business could adversely affect our overall business, financial condition and results of operations on a consolidated basisnew
5. 06Abnormally wide bid/ask spreads and market disruptions that halt or disrupt trading or create extreme volatility could undermine investor confidence in the ETP investment structure and limit investor acceptance of ETPs
6. 07We derive a substantial portion of our revenues from our USCF Investments subsidiary and, as a result, our operating results are particularly exposed to investor sentiment toward investing in the ETFs sponsored by USCF and advised by USCF Advisers
7. 08We rely on third party suppliers, and our business may be affected by interruption of supplies or increases in product costs
8. 09Product recalls or other product liability claims could materially and adversely affect us
9. 10Adverse attention about these types of concerns, whether or not valid, may damage our reputation, discourage consumers from buying our products, or cause production and delivery disruptions that could negatively impact our net sales and financial condition
10. 11In the past, we have expanded our business internationally. This expansion subjects us to increased operational, regulatory, financial and other risks
11. 12We rely on trademarks, trade secrets, and other forms of intellectual property protections, which may not be adequate to protect us from misappropriation or infringement of our intellectual property
12. 13Our financial condition and results of operations could suffer if there is an impairment of goodwill or intangible assets48% rewritten
13. 14We may face double taxation on certain income earned by our non-U.S. subsidiaries

Legal, Compliance and Regulatory Risks

1. 15Our business is subject to extensive government regulation and oversight. Our failure to comply with extensive, complex, overlapping, and frequently changing rules, regulations, and legal interpretations could materially harm our business
2. 16We are subject to the rules and regulation of the NYSE American stock exchange and are required to comply with certain continued exchange listing standards and requirements or be subject to delisting
3. 17We incur substantial costs to operate as a public reporting company as required by the Securities Exchange Commission
4. 18Our Chief Executive Officer and Chief Accounting Officer (“certifying officers”) are responsible for establishing and maintaining our disclosure controls and procedures (as defined in Securities Exchange Act Rule 13a-15(e) and Rule 15d-15(e))
5. 19Our UK financial advisory business is dependent on a key employee, and the loss of this employee could disrupt our ability to provide regulated investment advisory services in the United Kingdomnew
6. 20Losses or unauthorized access to or releases of confidential information, including personal information, could subject us to significant reputational, financial, legal and operational consequences

Risks Related to Our Controlled Company Election and Status

1. 21We are a “controlled company” within the meaning of the NYSE American rules and rely on exemptions from various corporate governance requirements that provide protection to stockholders of other companies
2. 22These independence standards are intended to ensure that directors who meet those standards are free of any conflicting interest that could influence their actions as directors

General Business Risks

1. 23Our business and financial performance may be adversely affected by information systems interruptions, cybersecurity attacks or other disruptions which could have a material adverse effect on our business and results from operations
2. 24Future acquisitions or business opportunities could involve unknown risks that could harm our business and adversely affect our financial condition and results of operations
3. 25We could consume resources in researching acquisitions and dispositions, business opportunities or financings and capital market transactions that are not consummated, which could materially adversely affect subsequent attempts to locate and acquire or invest in another business
4. 26We may not accurately predict revenue streams while we consume capital resources in acquiring new business opportunities or financings and capital market transactions or maintaining current capital investments which could materially and adversely impact our ability to meet operating expenses and capital requirements82% rewritten
5. 27We may fail to effectively integrate the businesses we acquire
6. 28Our business may be impacted by political events, new tariffs, war, terrorism, public health issues, natural disasters and other circumstances that are not within our control
7. 29Our intellectual property may not be adequately protected

Risks Related to Ownership of Our Shares

1. 30Our stock price may change significantly, and you may not be able to sell your shares of our common stock at or above the price you paid or at all, and you could lose all or part of your investment as a result
2. 31If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our share price and trading volume could decline
3. 32Current stock holdings may be diluted if we make future equity issuances or if outstanding options are exercised for shares of our common stock
4. 33Future sales, or the potential for future sales, of our shares could adversely affect the market price of our common stock27% rewritten
5. 34Our Board of Directors may issue shares of preferred stock without stockholder approval
6. 35Future sales of our shares by our existing stockholders may cause our stock price to fall
7. 36Because we have not and do not intend to pay cash dividends, our stockholders receive no current income from holding our stock

Risks Related to our Equity and Debt Financing

1. 37In addition to the net proceeds we received from our equity and debt financings in the past two years, we may need to raise additional equity or debt financing to fund ongoing operations, invest in acquisitions, and for working capital purposesnew