Marygold Companies, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Our financial statements appear as follows: Report of Independent Registered Public Accounting Firm. BPM San Francisco, CA. (Firm ID No. 207 ) F-1 Consolidated Balance Sheets F-2 Consolidated Statements of Operations F-3 Consolidated Statements of Comprehensive Loss F-4 Consolidated Statements of Stockholders’ Equity F-5 Consolidated Statements of Cash Flows F-6 Notes to Consolidated Financial Statements F-7 29 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of The Marygold Companies, Inc. and Subsidiaries Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of The Marygold Companies, Inc. (the “Company”) as of June 30, 2025 and 2024, and the related consolidated statements of operations, comprehensive loss, stockholders’ equity, and cash flows for each of the years in the two-year period ended June 30, 2025, and the related notes (collectively referred to as “the consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended June 30, 2025, in conformity with accounting principles generally accepted in the United States of America. Basis of opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee of the Board of Directors and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. Description of the Matter As described in Note 14, Commitments and Contingencies, of the consolidated financial statements, the Company is party to various legal proceedings and regulatory inquiries. The Company discloses the legal proceedings and that no accrual has been recorded with respect to them as of June 30, 2025. The Company further discloses that it is currently unable to predict the timing or outcome of, or reasonably estimate the possible losses or range of possible losses resulting from these matters, and that it is reasonably possible that this estimate will change in the near term. The Company discloses that an adverse outcome regarding these matters could materially adversely affect the Company’s financial condition, results of operations and cash flows. Auditing the Company’s accounting for, and disclosure of, loss contingencies related to the various legal proceedings was especially challenging due to the significant judgement required to evaluate management’s assessment of the likelihood of a loss, and of the potential amount or range of such loss. How We Addressed the Matter in Our Audit To test the Company’s assessment of the probability of incurrence of a loss, whether the loss was reasonably estimable, and the conclusion and disclosures regarding any range of possible losses, including when the Company believes such a range cannot be reasonably estimated at this time, we read the minutes or a summary of the meetings of the Board of Directors, requested and received internal and external legal counsel confirmations letters, discussed with legal counsel the nature of the various matters and obtained representations from management. We also evaluated the appropriateness of the related disclosures included in Note 14, Commitments and Contingencies, to the consolidated financial statements. /s/ BPM LLP We have served as the Company’s auditor since 2017. San Francisco, California September 19, 2025 F- 1 Table of Contents THE MARYGOLD COMPANIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) June 30, 2025 June 30, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,005 $ 5,461 Accounts receivable, net (of which $ 1,281 and $ 1,455 , respectively, due from related parties) 2,361 2,678 Inventories 2,001 2,191 Prepaid income tax and tax receivable 783 1,338 Investments, at fair value 7,829 9,551 Other current assets 1,067 3,034 Total current assets 19,046 24,253 Restricted cash 63 62 Property and equipment, net 1,038 1,166 Operating lease right-of-use asset 984 974 Goodwill 2,481 2,481 Intangible assets, net 1,029 1,375 Deferred tax assets, net 3,440 1,969 Other assets 2,339 619 Total assets $ 30,420 $ 32,899 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,831 $ 4,021 Lease liabilities, current portion 556 620 Advance from buyer of Brigadier Security Systems (Note 16) 720 - Purchase consideration payable 257 277 Loans payable, current portion 1,268 315 Total current liabilities 6,632 5,233 Purchase consideration payable, net of current portion - 237 Lease liabilities, net of current portion 580 455 Deferred tax liabilities, net 221 360 Total long-term liabilities 801 1,052 Total liabilities 7,433 6,285 STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value; 50,000 shares authorized; Series B: 13 and 49 shares issued and outstanding at June 30, 2025 and 2024, respectively - - Common stock, $ 0.001 par value; 900,000 shares authorized; 42,818 and 40,096 shares issued and outstanding at June 30, 2025 and 2024, respectively 42 40 Additional paid-in capital 15,167 12,825 Accumulated other comprehensive loss ( 420 ) ( 269 ) Retained earnings 8,198 14,018 Total stockholders’ equity 22,987 26,614 Total liabilities and stockholders’ equity $ 30,420 $ 32,899 The accompanying notes are an integral part of these consolidated financial statements. F- 2 Table of Contents THE MARYGOLD COMPANIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) 2025 2024 Year Ended June 30, 2025 2024 Revenue Fund management - related party $ 17,135 $ 18,965 Food products 6,720 7,271 Beauty products 2,974 3,296 Security systems 2,471 2,655 Financial services 854 649 Revenue 30,154 32,836 Cost of revenue 8,282 8,720 Gross profit 21,872 24,116 Operating expense Salaries and compensation 11,366 11,150 General and administrative expense 8,891 8,942 Fund operations 5,222 5,154 Marketing and advertising 2,493 3,152 Impairment loss - 1,389 Depreciation and amortization 590 585 Total operating expenses 28,562 30,372 Loss from operations ( 6,690 ) ( 6,256 ) Other (expense) income: Interest and dividend income 1,399 756 Interest expense ( 1,172 ) ( 16 ) Other (expense) income, net ( 919 ) 68 Total other (expense) income, net ( 692 ) 808 Loss before income taxes ( 7,382 ) ( 5,448 ) Benefit from income taxes 1,562 1,379 Net loss $ ( 5,820 ) $ ( 4,069 ) Weighted average shares of common stock Basic 41,701 40,396 Diluted 41,701 40,396 Net loss per common share Basic $ ( 0.14 ) $ ( 0.10 ) Diluted $ ( 0.14 ) $ ( 0.10 ) The accompanying notes are an integral part of these consolidated financial statements. F- 3 Table of Contents THE MARYGOLD COMPANIES, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) 2025 2024 Year Ended June 30, 2025 2024 Net loss $ ( 5,820 ) $ ( 4,069 ) Foreign currency translation loss ( 151 ) ( 124 ) Comprehensive loss $ ( 5,971 ) $ ( 4,193 ) The accompanying notes are an integral part of these consolidated financial statements. F- 4 Table of Contents THE MARYGOLD COMPANIES, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands, except per share data) Number of Shares Amount Number of Shares Par Value Paid-in Capital Comprehensive Income (Loss) Retained Earnings Stockholders’ Equity Preferred Stock (Series B) Common Stock Additional Accumulated Other Total Number of Shares Amount Number of Shares Par Value Paid-in Capital Comprehensive Income (Loss) Retained Earnings Stockholders’ Equity Balance at July 1, 2023 49 $ - 39,383 $ 39 $ 12,397 $ ( 145 ) $ 18,087 $ 30,378 Issuance of restricted stock awards - - 713 1 - - - 1 Stock-based compensation - - - - 428 - - 428 Loss on currency translation - - - - - ( 124 ) - ( 124 ) Net loss - - - - - - ( 4,069 ) ( 4,069 ) Balance at June 30, 2024 49 - 40,096 40 12,825 ( 269 ) 14,018 26,614 Balance 49 - 40,096 40 12,825 ( 269 ) 14,018 26,614 Sale of common stock less offering costs - - 2,050 2 1,806 - - 1,808 Issuance of restricted stock awards - - 265 - - - - - Loss on currency translation - - - - - ( 151 ) - ( 151 ) Cancellation of stock awards - - ( 85 ) - - - - - Stock-based compensation - - - - 825 - - 825 Conversion of Series B Preferred Stock into Common Stock ( 36 ) - 721 - - - - - Shares repurchased to cover employee payroll taxes in connection with restricted stock awards - - ( 229 ) - ( 289 ) - - ( 289 ) Net loss - - - - - - ( 5,820 ) ( 5,820 ) Balance at June 30, 2025 13 $ - 42,818 $ 42 $ 15,167 $ ( 420 ) $ 8,198 $ 22,987 Balance 13 $ - 42,818 $ 42 $ 15,167 $ ( 420 ) $ 8,198 $ 22,987 The accompanying notes are an integral part of these consolidated financial statements. F- 5 Table of Contents THE MARYGOLD COMPANIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) 2025 2024 Year Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 5,820 ) $ ( 4,069 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment loss - 1,389 Depreciation and amortization 590 585 Stock-based compensation 825 428 Loss (gain) on investments 906 ( 30 ) Non-cash interest expense 642 Non-cash lease expense 682 693 Deferred income taxes ( 1,610 ) ( 1,196 ) Changes in operating assets and liabilities: Accounts receivable 317 344 Prepaid income taxes and tax receivable 555 ( 346 ) Inventories 190 56 Other assets 247 ( 329 ) Accounts payable and accrued expenses ( 190 ) 1,260 Lease liabilities ( 653 ) ( 696 ) Net cash used in operating activities ( 3,319 ) ( 1,911 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments 7,857 13,610 Purchase of investments ( 7,043 ) ( 11,650 ) Cash advance received from buyer for sale of Brigadier Security Systems (Note 16) 720 - Cash paid for acquisition of business, net - ( 403 ) Deposit related to investment - ( 1,800 ) Purchase of property and equipment ( 54 ) ( 54 ) Payment of purchase consideration payable ( 277 ) ( 629 ) Net cash provided by (used in) investing activities 1,203 ( 926 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from note payable 3,690 - Principal repayment on note payable ( 3,064 ) ( 30 ) Principal repayment of mortgage loan payable ( 315 ) - Sale of common stock less offering costs 1,808 - Repurchase of shares to satisfy tax withholding for restricted stock ( 289 ) - Net cash provided by (used in) financing activities 1,830 ( 30 ) Effect of exchange rate change on cash and cash equivalents ( 169 ) ( 196 ) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 455 ) ( 3,063 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 5,523 8,586 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 5,068 $ 5,523 Cash and cash equivalents $ 5,005 $ 5,461 Restricted cash 63 62 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 5,068 $ 5,523 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 464 $ 16 Income taxes (net of refunds received) $ 48 $ 155 NON-CASH INVESTING AND FINANCING ACTIVITIES: Original issue discount and loan fee added to note payable balance $ 380 $ - Acquisition of operating right-of-use assets through operating lease liability $ 690 $ 847 Purchase consideration payable $ - $ 511 The accompanying notes are an integral part of these consolidated financial statements. F- 6 Table of Contents NOTE 1 . ORGANIZATION AND DESCRIPTION OF BUSINESS The Marygold Companies, Inc., a Nevada corporation (together with its subsidiaries, “we,” “us,” “our,” “Company,” or “The Marygold Companies”) is a holding company which operates through its wholly owned subsidiaries on a multinational scale that is focused upon financial services, exchange traded funds management and certain other business activities listed below: ● U.S. Fund Management - USCF Investments, Inc., a Delaware corporation (“USCF Investments”), with corporate headquarters in Walnut Creek, California and its wholly owned subsidiaries, which provide fund management services to exchange traded fund and exchange traded products (“ETFs”): ○ United States Commodity Funds, LLC, a Delaware limited liability company (“USCF LLC”), and ○ USCF Advisers, LLC, a Delaware limited liability company (“USCF Advisers”). The principal place of business for each of USCF LLC and USCF Advisers is in Walnut Creek, California. ● Food Products – Gourmet Foods, Ltd., a registered New Zealand company located in Tauranga, New Zealand and its wholly owned subsidiary, Printstock Products Limited, a registered New Zealand company, with is principal manufacturing facility in Napier, New Zealand. ● Security Systems – Brigadier Security Systems (2000) Ltd., a Canadian registered corporation, with locations in Regina and Saskatoon, Saskatchewan, Canada. Brigadier was sold to a related party on July 1, 2025 (see Note 16. Subsequent Events). ● Beauty Products - Kahnalytics, Inc., a California corporation, doing business as “Original Sprout,” located in San Clemente, California. ● U.S. and U.K. Financial Services: ○ Marygold & Co., a Delaware corporation, and its wholly owned subsidiary, Marygold & Co. Advisory Services, LLC, a Delaware limited liability company, whose principal business offices are located in Walnut Creek, California; ○ Marygold & Co., (UK) Limited, a private limited company incorporated and registered in England and Wales, whose registered office is in London, England, and its wholly owned subsidiaries: ■ Marygold & Co. Limited f/k/a Tiger Financial & Asset Management Limited, a company incorporated and registered in England and Wales, whose registered office is in Northampton, England; and ■ Step-By-Step Financial Planners Limited, a company incorporated and registered in England and Wales, whose registered office is in Staffordshire, England. The Company manages its operating businesses on a decentralized basis. There are no centralized or integrated operational functions such as marketing, sales, legal or other professional services and there is little involvement by The Marygold Companies’ management in the day-to-day business affairs of its operating subsidiary businesses apart from oversight. The Company’s corporate management is responsible for capital allocation decisions, investment activities and selection and retention of the Chief Executive to head each of the operating subsidiaries. The Company’s corporate management is also responsible for corporate governance practices, monitoring regulatory affairs, including those of its operating businesses and involvement in governance-related issues of its subsidiaries as needed. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Accounting Principles The Company has prepared the accompanying financial statements on a consolidated basis. In the opinion of management, the accompanying consolidated balance sheets and related consolidated statements of operations, comprehensive loss, stockholders’ equity, and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation, prepared on an accrual basis, in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Principles of Consolidation The accompanying consolidated financial statements, which are referred herein as the “Financial Statements”, include the accounts of The Marygold Companies and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of the Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currencies We record foreign currency translation adjustments and transaction gains and losses in accordance with Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters. Assets and liabilities are translated at the exchange rate on the balance sheet date, and operating results are translated at the average exchange rates throughout the prevailing period. Translation adjustments resulting from this process are recorded to other comprehensive income (loss). F- 7 Table of Contents Cash and Cash Equivalents Cash and cash equivalents includes all cash and highly liquid debt instruments with original maturities of three months or less on the date of purchase. The Company maintains its cash and cash equivalents in financial institutions in the United States, United Kingdom, Canada, and New Zealand. Accounts in the United States are insured by the Federal Deposit Insurance Corporation. Accounts in New Zealand are uninsured. The Company has, at times, held deposits in excess of insured amounts, but the Company does not expect any losses in such accounts. Accounts Receivable Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, customer concentrations, current economic trends, changes in customer payment patterns and reasonable and supportable forecasts about the future to determine whether or not an account should be deemed uncollectible. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2025 and 2024, the Company had immaterial amounts reserved for credit losses. Accounts receivable due from related parties consist of fund asset management fees receivable from the USCF Investments business. Management fees receivable generally consist of one month of management fees which are collected in the month after they are earned. Concentration of Credit Risk Our subsidiary USCF relies on the revenues generated through the funds it manages. The concentration of fund management revenue and related receivables were (dollars in thousands): SCHEDULE OF CONCENTRATION RISK Year Ended June 30, June 30, 2025 2024 2025 2024 Revenue % of Total Revenue % of Total Accounts Receivable % of Total Accounts Receivable % of Total Fund USO $ 5,091 30 % $ 6,553 35 % $ 390 30 % $ 473 33 % UNG 3,931 23 % 5,662 30 % 180 14 % 370 25 % UMI 2,948 17 % 1,967 10 % 264 21 % 185 13 % All Others 5,165 30 % 4,783 25 % 447 35 % 427 29 % Total $ 17,135 100 % $ 18,965 100 % $ 1,281 100 % $ 1,455 100 % There are no significant concentrations for the other operating subsidiaries on a consolidated basis. Inventories Inventories which consist of (i) food products, printing supplies, and packaging in New Zealand; (ii) hair and skin care finished products and components in the US; (iii) security system hardware in Canada and (iv) printed debit cards and wearables in the US and all are valued at the lower of cost or net realizable value. Inventories in Canada and New Zealand are maintained on the first-in, first-out method, while inventory in the U.S is maintained using the average cost method. Inventories include product cost, inbound freight and warehousing costs where applicable. An assessment is made at the end of each fiscal quarter to determine what slow-moving inventory items, if any, should be deemed obsolete and written down to their estimated net realizable value. For the years ended June 30, 2025 and 2024 , the expense for slow moving or obsolete inventory was not material. F- 8 Table of Contents Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and leasehold improvements are capitalized. Office furniture and equipment include office fixtures, computers, printers and other office equipment plus software and applicable packaging designs. Leasehold improvements are depreciated over the shorter of the useful life of the improvement and the length of the lease. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset as described below. SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED USEFUL LIFE Category Estimated Useful Life (in years) Building 39 Manufacturing equipment 5 to 10 Other equipment 3 to 5 Leases The Company’s most significant operating leases are real estate leases of office, warehouse and production facilities. Operating leases are included in operating lease right-of-use assets and operating lease liabilities in the Consolidated Balance Sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options to extend the lease when it is reasonably certain that it will exercise any such options. For the majority of its leases, the Company concluded that it is not reasonably certain that any renewal options would be exercised, and, therefore, the amounts are not recognized as part of operating lease right-of-use assets nor operating lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet and expensed as incurred and included within rent expense under general and administrative expense. Lease expense is recognized on a straight-line basis over the expected lease term. The Company has one finance lease wherein ownership of the underlying asset will be transferred to the Company at the end of the lease term. The underlying asset of the finance lease is a solar energy system at Gourmet Foods that is included with Property and equipment on the Consolidated Balance Sheets. Intangible Assets Intangible assets consist of brand names, recipes, customer relationships and the internally developed software for the Fintech app developed by Marygold. Intangible assets with finite lives are amortized over the estimated useful life. Intangible assets including those with indefinite lives are evaluated for impairment at least on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. When it is determined that an intangible asset is impaired, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. The Company recorded an impairment loss of $ 1.0 million during fiscal 2024 relating to intangible assets in 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 Table of Contents 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 unrealized gains (losses) which is included as part of other income (expense) in the Consolidated Statements of Operations. The Company values its investments in accordance with ASC 820 – Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurement. ASC 820 establishes a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and (2) the Company’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the ASC 820 hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 assets include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Level 3 – Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety. F- 10 Table of Contents Revenue Recognition Revenue consists of fees earned through management of investment funds in the United States and in the United Kingdom primarily based on assets under management (“AUM”), sales of gourmet meat pies and printing of food wrappers in New Zealand, sales of security alarm system installation and maintenance services in Canada, and sales of hair and skin care products in the United States and internationally. Revenue is accounted for net of sales taxes, sales returns, and trade discounts. The performance obligation is satisfied when the product has been shipped and title, risk of loss and rewards of ownership have been transferred. For most of the Company’s product sales or services, the revenue recognition criteria described below are met at the time the product is shipped, the subscription period commences, or the management services are provided. For our Brigadier subsidiary in Canada, the Company operates under contract with an alarm monitoring company that pays a percentage of its recurring monitoring fee to Brigadier in exchange for continued customer service and support functions with respect to each customer maintained under contract by the monitoring company. The Company has no costs of contracts which require capitalization. The Company’s only contract assets are accounts receivable. The Company has no contract liabilities other than deposits received periodically which are insignificant to the consolidated financial statements. The Company generates revenue, in part, through contractual monthly recurring fees received for providing ongoing customer support services to monitoring company clientele. The five-step process governing contract revenue reporting includes: 1. Identifying the contract(s) with customers 2. Identifying the performance obligations in the contract 3. Determining the transaction price 4. Allocating the transaction price to the performance obligations in the contract 5. Recognizing revenue when or as the performance obligation is satisfied For Brigadier, transactions involve security systems that are sold outright to the customer where the Company’s performance obligations include customer support services and the sale and installation of the security systems. For such arrangements, the Company allocates a portion of the transaction price to each performance obligation based on a relative stand-alone selling price. Revenue associated with the sale and installation of security systems is recognized once installation is complete and is reflected as security system revenue in the Consolidated Statements of Operations. Revenue associated with customer support services is recognized as those services are provided, and is included as a component of security system revenue in the Consolidated Statements of Operations. None of the other subsidiaries of the Company generate revenue from long-term contracts. F- 11 Table of Contents Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or if future deductibility is uncertain. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. Advertising Costs The Company expenses the cost of advertising as incurred. Marketing and advertising costs for the years ended June 30 , 2025 and 2024 were $ 2.5 million and $ 3.2 million, respectively. Segment Reporting The Company defines operating segments as components about which separate financial information is available that is evaluated regularly by the chief operating decision maker, which is our Chief Executive Officer, in deciding how to allocate resources and in assessing performances. Stock-Based Compensation We use the fair value method of accounting for our stock options and restricted stock awards (“RSAs”) granted to employees and directors to measure the cost of employee and director services received in exchange for the stock-based awards. The fair value of stock option awards with only service conditions is estimated on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires inputs such as the risk-free interest rate, expected term and expected volatility. These inputs are subjective and generally require significant judgment. The fair value of RSAs is measured on the grant date based on the closing fair market value of our common stock. The resulting cost is recognized over the period during which an employee or director is required to provide service in exchange for the awards, usually the vesting period, which is generally from one to four years for stock options and RSAs. Stock-based compensation expense is recognized on a straight-line basis, net of actual forfeitures in the period. Business Combinations We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customers, acquired trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed. F- 12 Table of Contents Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures (Topic 280). The guidance expands the disclosures required for reportable segments in our annual and interim consolidated financial statements, primarily through enhanced disclosures about significant segment expenses. The standard became effective for us beginning with our annual reporting for fiscal year 2025 and interim periods thereafter. The adoption of the new standard did not have a material impact on our segment reporting disclosures. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The guidance requires disclosure of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The standard will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are currently evaluating the impact of this standard on our income tax disclosures. NOTE 3. NET LOSS PER SHARE Basic net loss per share is based upon the weighted average number of common shares outstanding. This calculation includes the weighted average number of Series B Convertible Preferred shares outstanding also as they are deemed to be substantially similar to the common shares and shareholders are entitled to the same liquidation and dividend rights. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. For the year ended June 30, 2025, the Company excluded 343,667 shares related to outstanding stock options, 193,857 shares related to outstanding restricted stock awards and 82,500 shares related to outstanding warrants, and for the year ended June 30, 2024, the Company excluded 540,881 shares related to outstanding stock options, 681,315 shares related to outstanding restricted stock awards and 82,500 shares related to outstanding warrants, respectively, from the diluted net loss per share calculation as their effect would be anti-dilutive. Since the Company generated a net loss in both fiscal 2025 and 2024, basic and diluted net loss per share were the same. The components of basic and diluted net loss per share were as follows (in thousands, except per share data): SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE Year Ended June 30, 2025 Year Ended June 30, 2024 Net Loss Shares Per Share Net Loss Shares Per Share Basic and diluted net loss per share: Net loss available to common shareholders $ ( 5,719 ) 40,977 $ ( 0.14 ) $ ( 3,970 ) 39,409 $ ( 0.10 ) Net loss available to preferred shareholders ( 101 ) 724 $ ( 0.14 ) ( 99 ) 987 $ ( 0.10 ) Basic and diluted net loss per share $ ( 5,820 ) 41,701 $ ( 0.14 ) $ ( 4,069 ) 40,396 $ ( 0.10 ) F- 13 Table of Contents NOTE 4. CERTAIN BALANCE SHEET DETAILS The components of certain balance sheet line items are as follows (in thousands). SCHEDULE OF COMPONENTS OF CERTAIN BALANCE SHEET June 30, June 30, Restricted cash 2025 2024 Deposit restricted relating to account for Fintech app 51 50 Deposit for securing a lease bond 12 12 Total restricted cash $ 63 $ 62 June 30, June 30, Other current assets 2025 2024 Deposit for potential 9.9 % equity interest in financial institution $ - $ 1,800 Prepaid expenses and other current assets 1,067 1,234 Total other current assets $ 1,067 $ 3,034 Included in the other current assets balance as of June 30, 2024 was a deposit of $ 1.8 million made in connection with the potential acquisition of a less than 10 % equity interest in a US domestic financial institution that was seeking certain regulatory approval. This was accounted for as a deposit in other current assets until regulatory approval was obtained in September 2024. Following approval, and the deposit was converted into an equity interest in the financial institution and has since been presented in other assets, non-current in the consolidated balance sheet as shown in the table “Other assets, non-current” below. SCHEDULE OF INVENTORY June 30, June 30, Inventories 2025 2024 Raw materials and supplies $ 1,211 $ 1,417 Finished goods 790 774 Total inventories $ 2,001 $ 2,191 SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT June 30, June 30, Property and equipment, net 2025 2024 Manufacturing equipment $ 1,935 $ 1,935 Land and building 575 575 Other equipment 854 827 Total property and equipment, gross 3,364 3,337 Accumulated depreciation ( 2,326 ) ( 2,171 ) Total property and equipment, net $ 1,038 $ 1,166 F- 14 Table of Contents For the years ended June 30, 2025 and 2024, depreciation expense for property and equipment totaled $ 0.2 million and $ 0.1 million, respectively. SCHEDULE OF OTHER ASSETS NON-CURRENT June 30, June 30, Other assets, non-current 2025 2024 Equity investment in a financial institution $ 1,800 $ - Equity investment in a registered investment advisor 502 502 Deposits and other assets 37 117 Total other assets, non-current $ 2,339 $ 619 The $ 1.8 million investment represents an equity interest of less than 10 % in a domestic financial institution and the $ 0.5 million investment represents a 10 % equity interest in a registered investment advisor. These equity interests do not have readily determinable fair values and are measured at cost minus impairment. There have been no impairments, downwards adjustments, nor upward adjustments during the periods presented nor cumulatively. SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, June 30, Accounts payable and accrued expenses 2025 2024 Accounts payable $ 2,083 $ 1,955 Accrued operating expenses 1,151 1,185 Accrued payroll, vacation and bonus payable 597 736 Taxes payable - 145 Total $ 3,831 $ 4,021 NOTE 5. INVESTMENTS USCF Investments, from time to time, provides initial seed capital in connection with the creation of ETPs or ETFs that are managed by USCF or USCF Advisers. USCF Investments classifies these investments as current assets as these investments are generally sold within one year of the balance sheet date. Investments in which no controlling financial interest or significant influence exists are recorded at fair value with the change included in earnings on the Consolidated Statements of Operations. As of June 30, 2025 and 2024, the Company has investments totaling $ 3.6 million and $ 7.5 million, respectively, of funds managed by USCF Advisers which are related parties and are included in other equities in the below table. The Company elected the fair value option related to this investment as the shares were purchased and will be sold on the market and this accounting treatment is deemed to be most informative. In addition to the holdings in these funds, the Company also invests in marketable securities. The Company recognized unrealized losses of $ 0.8 million and unrealized gains of $ 0.1 million for the years ended June 30, 2025 and 2024, respectively. All of the Company’s short-term investments are classified as Level 1 assets as of June 30, 2025 and 2024. Investments measured at estimated fair value consist of the following as of June 30, 2025 and 2024 (in thousands): SCHEDULE OF AVAILABLE-FOR-SALE SECURITIES RECONCILIATION June 30, 2025 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds $ 3,877 $ - $ - $ 3,877 Other short-term investments 310 2 - 312 Other equities - related parties 4,374 - ( 734 ) 3,640 Total short-term investments $ 8,561 $ 2 $ ( 734 ) $ 7,829 F- 15 Table of Contents June 30, 2024 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds $ 1,788 $ - $ - $ 1,788 Other short-term investments 295 1 - 296 Other equities - related parties 7,394 73 - 7,467 Total short-term investments $ 9,477 $ 74 $ - $ 9,551 During the years ended June 30, 2025 and 2024, there were no transfers between Level 1 and Level 2. NOTE 6. BUSINESS COMBINATIONS On January 31, 2024, Marygold UK entered into a Share Purchase Agreement (“SPA”) to acquire all the issued and outstanding shares of Step-By-Step Financial Planners Limited (“Step-By-Step”), subject to certain closing conditions and regulatory approval. The transaction closed on April 30, 2024 with an agreed purchase price of $ 1.2 million, subject to adjustment as provided for in the SPA. Marygold UK paid $ 0.7 million upon the closing, $ 0.3 million during fiscal year 2025 and the remaining $ 0.2 million will be paid in the quarter ended December 31, 2025 as provided in the SPA. In connection with the acquisition, the Company recorded goodwill of $ 0.6 million. Step-By-Step is an asset manager and investment advisor based in Staffordshire, England with assets under management of $ 42.4 million and $ 36.6 million as of June 30, 2025 and 2024, respectively. Step-By-Step will be operated as a subsidiary of Marygold UK. In addition to growing the business through increasing assets under management, Marygold UK has expanded the fintech mobile app services developed in the U.S. into the U.K. through the established contacts and certifications held by Step-By-Step. F- 16 Table of Contents NOTE 7. IMPAIRMENT LOSS During fiscal 2024, the Company recorded an impairment loss of $ 1.4 million related to the goodwill and other intangible assets in its beauty products business unit. The business unit has been suffering from increased losses resulting from pandemic-related changes in its distribution channels and increased costs. The impairment loss of $ 1.4 million included goodwill of $ 0.4 million and indefinite and finite lived intangible assets totaling $ 1.0 million relating to brand name, formulas and customer relations. The Company determined the fair value of the reporting unit using multiple methods including discounted cash flows and pricing of comparable companies. NOTE 8. GOODWILL Changes in the carrying amount of goodwill were as follows (in thousands): SCHEDULE OF GOODWILL Goodwill June 30, 2023 Acquisitions Impairments June 30, 2024 June 30, 2025 Beauty products - Original Sprout $ 417 $ - $ ( 417 ) $ - $ - Food products - Gourmet Foods 275 - - 275 275 Security systems - Brigadier 351 - - 351 351 Financial services - Marygold & Co. (UK) (1) 1,264 591 - 1,855 1,855 Total $ 2,307 $ 591 $ ( 417 ) $ 2,481 $ 2,481 (1) Refer to Note 6, Business Combinations, regarding increase in goodwill during the years ended June 30, 2024. The Company tests for goodwill impairment at each reporting unit annually on June 30. Refer to Note 7, Impairment Loss, regarding the goodwill impairment recorded during 2024. NOTE 9. INTANGIBLE ASSETS The Company’s intangible assets consisted of the following. SCHEDULE OF INTANGIBLE ASSETS June 30, 2025 Intangible Assets Weighted Average Remaining Life (in years) Intangible Assets (Gross) Accumulated Amortization Intangible Asset (Net) (dollars in thousands) Customer relationships 4.6 $ 1,540 $ ( 821 ) $ 719 Brand name 0.9 439 ( 408 ) 31 Brand name – indefinite lived N/A 206 - 206 Internally developed software 1.0 218 ( 145 ) 73 Total $ $ 2,403 $ ( 1,374 ) $ $ 1,029 Intangible Assets Weighted Average Remaining Life (in years) Intangible Assets (Gross) Accumulated Amortization Intangible Asset (Net) June 30, 2024 Intangible Assets Weighted Average Remaining Life (in years) Intangible Assets (Gross) Accumulated Amortization Intangible Asset (Net) (dollars in thousands) Customer relationships 5.4 $ 1,540 $ ( 624 ) $ 916 Brand name 1.7 414 ( 332 ) 82 Brand name – indefinite lived N/A 231 - 231 Internally developed software 2.0 218 ( 72 ) 146 Total $ 2,403 $ ( 1,028 ) $ 1,375 Total amortization expense for intangible assets was $ 0.3 million and $ 0.4 million for the years ended June 30, 2025 and 2024, respectively. Refer to Note 7, Impairment Loss, regarding the intangible asset impairment recorded during fiscal 2025. Estimated remaining amortization expenses of intangible assets for the next five fiscal years and thereafter are as follows (in thousands): SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE Years Ending June 30, Expense 2026 $ 290 2027 146 2028 146 2029 144 2030 54 Thereafter 249 Total $ 1,029 F- 17 Table of Contents NOTE 10. RELATED PARTY TRANSACTIONS USCF Investments - Related Party Transactions The Funds managed by USCF and USCF Advisers are considered to be related parties. The Company’s fund management revenue, totaling $ 17.1 million and $ 19.0 million for the years ended June 30, 2025 and 2024, respectively, were earned from these related parties. Accounts receivable, totaling $ 1.3 million and $ 1.5 million as of June 30, 2025 and 2024, respectively, were owed from the Funds that are related parties. USCF Investments, from time to time, provides initial investments in the creation of ETP and ETF funds that USCF manages. As of June 30, 2025 and 2024, the Company has investments totaling $ 3.6 million and $ 7.5 million, respectively, of funds managed by USCF Advisers. The Company owns approximately 21 % and 45 % of the outstanding shares of these investments as of June 30, 2025 and 2024, respectively. USCF Advisers was contractually obligated to pay license fees to an affiliated entity for fiscal years 2025 and 2024. In February 2025, the license fee agreement was amended to reduce all remaining 2025 and future license fees to zero. As of June 30, 2025, all obligations had been paid. Total fees paid were $ 0.3 million and $ 0.1 million for the years ending June 30, 2025 and 2024, respectively. Brigadier Security Systems - Related Party Transactions On June 19, 2025, the Company entered into a stock purchase agreement with SKCAL LLC, an Arizona limited liability company, pursuant to which the Company has agreed to sell to SKCAL LLC all of the shares of stock it owns in its wholly owned subsidiary, Brigadier Security Systems (2000) Ltd., a Canadian registered corporation for $ 2.2 million. Scott Schoenberger, a director and 10.9 % shareholder of the Company, is the sole member of SKCAL LLC making this transaction between related parties (see Note 16. Subsequent Events for more details) . NOTE 11. NOTES PAYABLE On September 19, 2024, we entered into a note purchase agreement the (“Purchase Agreement”) with Streeterville Capital, LLC (“Holder”), pursuant to which we agreed to issue and sell to Holder a secured promissory note in an initial principal amount of $ 4,380,000 (“Initial Note”) payable on or before 24 months from the issuance date (“Maturity Date”) and, upon the satisfaction of certain conditions in the Purchase Agreement, up to one additional secured promissory note (“Subsequent Note,” Initial Note and Subsequent Note collectively referred to as “Notes”). The initial principal amount of the Notes includes an original issue discount of 9 % and expenses that the Company agreed to pay to the Holder to cover the Holder’s transaction costs. The original issue discount of the Initial Note was $ 360,000 . Interest on the principal amount of the Notes accrues at a rate of 9 % per annum. The Company may pay all or any portion of the amount owed under the Notes earlier than it is due. All payments made under the Notes, including any repayments, are subject to an additional payment amount equal to 6% of the portion of the outstanding balance being repaid. The Subsequent Note would have a principal amount of $ 2,180,000 , which will have terms substantially similar to the terms of the Initial Note. The original issue discount of the Subsequent Note, if issued, would be $ 180,000 . The Purchase Agreement contains certain covenants and agreements, including that we will not pledge or grant any lien or security interest in our or our subsidiaries’ assets without the Holder’s prior written consent and that we will file reports under the Securities Exchange Act timely, and that our shares will continue to be listed or quoted on the NYSE American or Nasdaq. Also, without the Holder’s prior written consent, we may not: issue, incur or guarantee any debt obligations other than trade payables in the ordinary course; issue any security that has conversion rights in which the number of shares varies with the market price of our shares; issue any securities convertible into our shares with a conversion price that varies with the market price of our shares; issue any securities that have a conversion or exercise price subject to a reset due to a change in the market price of our shares or upon the occurrence of certain events related to our business (but excluding certain standard antidilution protection for any reorganization, recapitalization, noncash dividend, stock split or similar transaction); issue any securities pursuant to an equity line of credit, standby equity purchase agreement or similar arrangement. The Purchase Agreement also contains a most favored nations provision that provides we will grant to the Holder the same terms as we offer any subsequent investor in our debt securities and certain arbitration provisions in the event of a claim arising under the Purchase Agreement and other transaction documents. The Company’s obligations under the Note are secured by: (i) a pledge of all the common stock the Company owns in USCF Investments, Inc. and (ii) a security interest in all of the assets of the Company. Further, the Company’s Chief Executive Officer’s trust, the Nicholas and Melinda Gerber Living Trust (“Gerber Trust”), provided: (i) a guaranty of the Company’s obligations to the Holder under the Note and (ii) a pledge of all of the common stock of the Company owned by the Gerber Trust. Beginning on the date that is six months from the issuance date until the applicable Note is paid in full, each month the Holder has the right to require the Company to redeem up to an aggregate of $ 400,000 with respect to the Initial Note and $ 200,000 with respect to the Subsequent Note plus any interest accrued thereunder and an additional payment amount equal to 6% of the principal amount. The Company has the right to defer such redemption payments that Holder could otherwise elect to make three times by providing advance written notice to Holder. If the Company exercises its deferral right, the outstanding balance is automatically increased by 0.85% for each instance that the deferral right is exercised by Company, which cannot be exercised more than once every ninety calendar days. Pursuant to the terms of the Purchase Agreement, beginning on the date of the issuance and sale of the Note and ending 24 months later, Holder will have the right, but not the obligation, with Company’s prior written consent, to reinvest up to an additional $ 10,000,000 in the Company on the same terms and conditions as the Notes (structured as two tranches of $ 5,000,000 each). The Company engaged Maxim Group LLC to serve as placement agent for the transaction between the Company and Holder in exchange for an aggregate commission equal to 7% of the gross cash proceeds received from the sale of the Notes. As of June 30, 2025, the note payable balance outstanding, net of the original issue discount and fees paid, was $ 1.3 million, all of which is due within 12 months from June 30, 2025 assuming no deferral rights are exercised. The effective interest rate for this note is 41.3 %. Interest expense for this note payable during fiscal year 2025 was $ 1.2 million which included $ 0.6 million of amortization of debt issuance costs. As of June 30, 2024, Brigadier had an outstanding principal balance of $ 0.3 million due related to the purchase of its Saskatoon office land and building. The bank loan matured and was paid off in full in July 2024. NOTE 12. STOCKHOLDERS’ EQUITY Warrants to Purchase Common Stock In connection with the Company’s underwritten public offering in fiscal 2022, the Company issued the underwriter’s warrants to purchase up to an aggregate of 82,500 shares of Common Stock as compensation for their services related to this issuance. The warrants may be exercised until March 14, 2027. The exercise price of each warrant is $ 2.40 per share. As of June 30, 2025, no warrants were exercised. F- 18 Table of Contents Convertible Preferred Stock The Company has 50,000,000 shares authorized to issue as Preferred Stock. The Preferred Stock is designated into two series: 5,000,000 shares designated as Series A and 45,000,000 shares designated as Series B. As of June 30, 2025 there are no issued or outstanding shares of Series A stock. Each issued Series B Convertible Preferred Stock is convertible into 20 shares of common stock and carries a vote of 20 shares of common stock in all matters brought before the shareholders for a vote. During fiscal year 2025, 36,058 shares of Series B Preferred Stock were converted into 721,160 shares of common stock. There are 13,302 and 49,360 shares of Series B Convertible Preferred Stock outstanding as of June 30, 2025 and 2024, respectively. Stock-based Compensation In 2021, the Company adopted the 2021 Omnibus Equity Incentive Plan (“Equity Plan”) which provides for the grant of stock-based awards, including stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), to employees and non-employees. A total of 5,000,000 shares of common stock are authorized for issuance under the Plan, of which 3,772,485 are available for future grants as of June 30, 2025. The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model and recognized as compensation on a straight-line basis between the date of grant and the date the options become fully vested. Stock options issued have a term of ten years. The fair value of the options granted were estimated using the following assumptions: SCHEDULE OF SHARE BASED COMPENSATION Year Ended June 30, 2025 2024 Expected volatility 137 % 165 % Expected term 6.1 years 6.1 years Risk-free interest rate 4.5 % 4.2 % Expected dividend yield 0 % 0 % The fair value of RSAs is estimated on the grant date based on the closing quoted market price of the Company’s stock and the RSAs generally vest over a four-year period following issuance date, subject to continued service. The fair value of RSAs is recognized as compensation on a straight-line basis between the date of grant and the date the RSAs become fully vested. During fiscal 2025 and 2024, the following activity occurred under the Company’s Equity Plan. SCHEDULE OF SHARE BASED COMPENSATION STOCK OPTIONS Stock Options Restricted Stock Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Grant Date Fair Value Balance at June 30, 2023 270,000 $ 1.61 288,733 $ 1.36 Granted 315,881 $ 1.15 447,543 $ 1.03 Released - $ - ( 31,678 ) $ 1.39 Expired ( 6,250 ) $ 1.64 - $ - Forfeited ( 38,750 ) $ 1.64 ( 23,585 ) $ 1.06 Outstanding at June 30, 2024 540,881 $ 1.34 681,013 $ 1.15 Granted 100,000 $ 1.45 264,890 $ 1.45 Released - $ - ( 667,414 ) $ 1.22 Expired ( 123,993 ) $ 1.43 - $ - Forfeited ( 173,221 ) $ 1.37 ( 84,632 ) $ 1.14 Outstanding at June 30, 2025 343,667 $ 1.32 193,857 $ 1.33 Exercisable at June 30, 2025 120,422 $ 1.30 The total fair value of the stock option grants, calculated using the Black-Scholes option-pricing model using the assumptions noted above, was determined to be $ 0.1 million and $ 0.3 million for fiscal 2025 and 2024, respectively. The weighted average remaining contractual term of the stock options outstanding as of June 30, 2025 was 8.3 years. The aggregate intrinsic value of stock options outstanding as of June 30, 2025 was zero . Stock-based compensation relating to RSAs totaled $ 0.7 million and $ 0.3 million for the years ended June 30, 2025 and 2024, respectively, and are included in salaries and compensation in the Consolidated Statements of Operations. Holders of RSAs generally have the rights and privileges of a stockholder with respect to the shares of common stock granted to the holder, including the right to vote such shares and the right to receive dividends with respect to such shares. However, all cash and stock dividends and distributions shall be held back by the Company for the holder’s account until such time as the related portion of the restricted stock award vests (at which time such dividends or distributions, as applicable, shall be released and paid). F- 19 Table of Contents Stock-based compensation expense relating to stock options and RSAs totaled $ 0.8 million and $ 0.4 million for the years ending June 30, 2025 and 2024, respectively, and are included in the Consolidated Statements of Operations. As of June 30, 2025, there was $ 0.2 million of unrecognized compensation expense related to outstanding stock options that will be recognized over a remaining weighted average period of 2.4 years and there was $ 0.2 million of unrecognized compensation expense related to outstanding RSAs that will be recognized over a remaining weighted average period of 1.0 year. The aggregate expected stock-based compensation expense remaining to be recognized reflects only awards as of June 30, 2025 and assumes no forfeiture activity. There were no shares issued for vendor services during the years ending June 30, 2025 and 2024 . NOTE 13. INCOME TAXES The following table summarizes loss before income taxes (in thousands): SUMMARY OF (LOSS) INCOME BEFORE INCOME TAXES Years Ended June 30, 2025 2024 United States $ ( 6,327 ) $ ( 5,420 ) Foreign ( 1,055 ) ( 28 ) Loss before income taxes $ ( 7,382 ) $ ( 5,448 ) Income Tax Provision The composition of the benefit from income taxes consisted of the following (in thousands): SCHEDULE OF BENEFIT FROM (PROVISION FOR) INCOME TAXES Years Ended June 30, 2025 2024 United States $ 1,302 $ 1,408 Foreign 260 ( 29 ) Total benefit from income taxes $ 1,562 $ 1,379 F- 20 Table of Contents Years Ended June 30, 2025 2024 Current: Federal $ ( 39 ) $ 299 States ( 16 ) ( 43 ) Foreign 7 ( 74 ) Total current ( 48 ) 182 Deferred: Federal 1,356 1,071 States 1 81 Foreign 253 45 Total deferred 1,610 1,197 Total benefit from income taxes $ 1,562 $ 1,379 Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets for the years ended June 30, 2025 and 2024 are presented below (in thousands): SCHEDULE OF DEFERRED TAX ASSETS Years Ended June 30, 2025 2024 Deferred tax assets: Intangible assets - U.S. $ 685 $ 756 Net operating loss 2,222 801 Capital loss carryover 45 43 Accruals, reserves and other - U.S. 488 369 Total deferred tax assets - U.S. $ 3,440 $ 1,969 Deferred tax liabilities: Intangible assets - foreign $ ( 195 ) $ ( 313 ) Accruals, reserves and other - foreign ( 26 ) ( 47 ) Total deferred tax liabilities - foreign $ ( 221 ) $ ( 360 ) Total net deferred tax assets $ 3,219 $ 1,609 F- 21 Table of Contents The Company’s accounting for deferred taxes involves the evaluation of several factors concerning the realizability of the Company’s net deferred tax assets. The Company primarily considered such factors as the Company’s history of operating losses, the nature of the Company’s deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible. The Company does not have a valuation allowance as of June 30, 2025 and 2024 as the Company believes that it is more likely than not that the net deferred tax assets will be realized . The benefit from income taxes for the years ended June 30, 2025 and 2024 differed from the amounts computed by applying the statutory federal income tax rate of 21.0 % to pretax loss as a result of the following (in thousands): SCHEDULE OF INCOME TAX BENEFIT EXPENSE Years Ended June 30, 2025 2024 Federal tax benefit at statutory rate $ 1,550 $ 1,144 State income taxes ( 12 ) 47 Permanent differences ( 14 ) 240 Foreign rate differential 38 ( 52 ) Total tax benefit $ 1,562 $ 1,379 Years Ended June 30, 2025 2024 Federal tax benefit at statutory rate 21.0 % 21.0 % State income taxes ( 0.2 )% 0.9 % Permanent differences ( 0.1 )% 4.1 % Foreign rate differential 0.5 % ( 0.7 )% Total tax benefit 21.2 % 25.3 % F- 22 Table of Contents Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. During the year ended June 30, 2024, the Company reduced the balance of gross unrecognized tax benefits, which included interest and penalties, by $ 0.3 million to zero and the balance remained zero during the year ended June 30, 2025. As of June 30, 2025 and 2024, the Company has federal net operating loss carryforwards of $ 9.4 million and $ 3.3 million, respectively, and state net operating loss carryforwards of $ 6.9 million and $ 3.4 million, respectively. These state operating loss carryforwards begin to expire in 2045. The federal net operating loss carryforward will carryforward indefinitely, but is subject to the 80% taxable income limitation. The Company files income tax returns in the United States, and various state and foreign jurisdictions. The federal, state and foreign income tax returns are subject to tax examinations for the tax years 2020 through 2024 as of year ended June 30, 2025 . To the extent the Company has tax attribute carry forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period. There were no ongoing examinations by taxing authorities as of June 30, 2025 . The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2025 and 2024, the Company accrued and recognized as a liability zero and $ 0.1 million, respectively, of interest and related penalties to uncertain tax positions. Congress enacted the One Big Beautiful Bill Act (“OBBBA”), which was signed into law on July 4, 2025. This law changes or makes permanent certain tax laws for corporations, including provisions relating to domestic research and development costs, bonus depreciation and foreign derived intangible income. Management is currently evaluating the potential impact of these provisions on deferred taxes and future tax obligations. NOTE 14. COMMITMENTS AND CONTINGENCIES Lease Commitments F- 23 Table of Contents The Company leases various facilities and offices in the US, UK, Canada and New Zealand with varying lease terms. For each of the years ended June 30, 2025 and 2024, the combined operating lease costs of the Company totaled $ 0.9 million and are recorded in general and administrative expense in the Consolidated Statements of Operations. Future minimum consolidated lease payments for the Company are as follows (in thousands): SCHEDULE OF FUTURE MINIMUM CONSOLIDATED LEASE PAYMENTS Year Ended June 30, Lease Amount Finance Lease 2026 $ 587 $ 19 2027 333 19 2028 155 19 2029 - 19 2030 - 19 Thereafter - 29 Total minimum lease payments 1,075 124 Less: present value discount ( 41 ) ( 22 ) Total lease liabilities $ 1,034 $ 102 The weighted average remaining lease term for the Company’s operating leases was 2.0 years as of June 30, 2025 and a weighted-average discount rate of 5.8 % was used to determine the total operating lease liabilities. The remaining lease term for the Company’s finance lease was 6.3 years as of June 30, 2025 with an annual interest rate of 7.0 %. Other Agreements and Commitments As Marygold US built out its Fintech app, it entered into agreements with various service providers, some of which required long-term contracts. As of June 30, 2025, Marygold US has future payment commitments with some former primary service vendors totaling $ 0.7 million including $ 0.2 million due in fiscal 2026. It is uncertain what amount of this contractual commitment may be reduced by the vendors as services are no longer required. F- 24 Table of Contents Litigation From time to time, the Company may be involved in legal proceedings arising primarily from the ordinary course of their respective businesses. Except as described below, there are no pending legal proceedings against the Company. The Company’s policy is to expense legal costs relating to litigation as the costs are incurred. USCF is an indirect wholly owned subsidiary of the Company. USCF LLC, as the general partner of the United States Oil Fund, LP (“USO”) and the general partner and sponsor of the related public funds may, from time to time, be involved in litigation arising out of its operations in the ordinary course of business. Except as described herein, USO and USCF are not currently party to any material legal proceedings. In re: United States Oil Fund, LP Securities Litigation On June 19, 2020, USCF LLC, USO, John P. Love, and Stuart P. Crumbaugh were named as defendants in a putative class action filed by purported shareholder Robert Lucas (the “Lucas Class Action”). The Court thereafter consolidated the Lucas Class Action with two related putative class actions filed on July 31, 2020 and August 13, 2020, and appointed a lead plaintiff. The consolidated class action is pending in the U.S. District Court for the Southern District of New York under the caption In re: United States Oil Fund, LP Securities Litigation, Civil Action No. 1:20-cv-04740. On November 30, 2020, the lead plaintiff filed an amended complaint (the “Amended Lucas Class Complaint”). The Amended Lucas Class Complaint asserts claims under the 1933 Act, the Exchange Act, and Rule 10b-5 . The Amended Lucas Class Complaint challenges statements in registration statements that became effective on February 25, 2020 and March 23, 2020 as well as subsequent public statements through April 2020 concerning certain extraordinary market conditions and the attendant risks that caused the demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war. The Amended Lucas Class Complaint purports to have been brought by an investor in USO on behalf of a class of similarly-situated shareholders who purchased USO securities between February 25, 2020 and April 28, 2020 and pursuant to the challenged registration statements. The Amended Lucas Class Complaint seeks to certify a class and to award the class compensatory damages at an amount to be determined at trial as well as costs and attorney’s fees. The Amended Lucas Class Complaint named as defendants USCF, USO, John P. Love, Stuart P. Crumbaugh, Nicholas D. Gerber, Andrew F Ngim, Robert L. Nguyen, Peter M. Robinson, Gordon L. Ellis, and Malcolm R. Fobes III, as well as the marketing agent, ALPS Distributors, Inc., and the Authorized Participants: ABN Amro, BNP Paribas Securities Corporation, Citadel Securities LLC, Citigroup Global Markets, Inc., Credit Suisse Securities USA LLC, Deutsche Bank Securities Inc., Goldman Sachs & Company, J.P. Morgan Securities Inc., Merrill Lynch Professional Clearing Corporation, Morgan Stanley & Company Inc., Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, and Virtu Financial BD LLC. F- 25 Table of Contents The lead plaintiff has filed a notice of voluntary dismissal of its claims against BNP Paribas Securities Corporation, Citadel Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities USA LLC, Deutsche Bank Securities Inc., Morgan Stanley & Company, Inc., Nomura Securities International, Inc., RBC Capital Markets, LLC, SG Americas Securities LLC, and UBS Securities LLC. USCF, USO, and the individual defendants in In re: United States Oil Fund, LP Securities Litigation intend to vigorously contest such claims and have moved for their dismissal. Mehan Action On August 10, 2020, purported shareholder Darshan Mehan filed a derivative action on behalf of nominal defendant USO, against defendants USCF, John P. Love, Stuart P. Crumbaugh, Nicholas D. Gerber, Andrew F Ngim, Robert L. Nguyen, Peter M. Robinson, Gordon L. Ellis, and Malcolm R. Fobes, III (the “Mehan Action”). The action is pending in the Superior Court of the State of California for the County of Alameda as Case No. RG20070732. The Mehan Action alleges that the defendants breached their fiduciary duties to USO and failed to act in good faith in connection with a March 19, 2020 registration statement and offering and disclosures regarding certain extraordinary market conditions that caused demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war. The complaint seeks, on behalf of USO, compensatory damages, restitution, equitable relief, attorney’s fees, and costs. All proceedings in the Mehan Action are stayed pending disposition of the motion(s) to dismiss in In re: United States Oil Fund, LP Securities Litigation. USCF, USO, and the other defendants intend to vigorously contest such claims. In re United States Oil Fund, LP Derivative Litigation On August 27, 2020, purported shareholders Michael Cantrell and AML Pharm. Inc. DBA Golden International filed two separate derivative actions on behalf of nominal defendant USO, against defendants USCF, John P. Love, Stuart P. Crumbaugh, Andrew F Ngim, Gordon L. Ellis, Malcolm R. Fobes, III, Nicholas D. Gerber, Robert L. Nguyen, and Peter M. Robinson in the U.S. District Court for the Southern District of New York at Civil Action No. 1:20-cv-06974 (the “Cantrell Action”) and Civil Action No. 1:20-cv-06981 (the “AML Action”), respectively. The complaints in the Cantrell and AML Actions are nearly identical. They each allege violations of Sections 10(b), 20(a) and 21D of the Exchange Act, Rule 10b-5 thereunder, and common law claims of breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. These allegations stem from USO’s disclosures and defendants’ alleged actions in light of the extraordinary market conditions in 2020 that caused demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war. The complaints seek, on behalf of USO, compensatory damages, restitution, equitable relief, attorney’s fees, and costs. The plaintiffs in the Cantrell and AML Actions have marked their actions as related to the Lucas Class Action. F- 26 Table of Contents The Court consolidated the Cantrell and AML Actions under the caption In re United States Oil Fund, LP Derivative Litigation, Civil Action No. 1:20-cv-06974 and appointed co-lead counsel. All proceedings in In re United States Oil Fund, LP Derivative Litigation are stayed pending disposition of the motion(s) to dismiss in In re: United States Oil Fund, LP Securities Litigation. USCF, USO, and the other defendants intend to vigorously contest the claims in In re United States Oil Fund, LP Derivative Litigation. No accrual has been recorded with respect to the above legal matters as of June 30, 2025 and 2024. We are currently unable to predict the timing or outcome of, or reasonably estimate the possible losses or range of, possible losses resulting from these matters. It is reasonably possible that this estimate will change in the near term. An adverse outcome regarding these matters could materially adversely affect the Company’s financial condition, results of operations and cash flows. Retirement Plan The Company has a 401(k) Profit Sharing Plan (“401K Plan”) covering U.S. employees who are over 21 years of age and who have completed a minimum of 1,000 hours of service and have worked for the Company for at least three months. Participants may contribute a portion of their salary into the 401K Plan subject to certain limitations. In addition, the Company makes a safe harbor matching contribution. Company paid matching contributions of $ 0.3 million and $ 0.2 million for the years ended June 30, 2025 and 2024 , respectively. NOTE 15. SEGMENT REPORTING In its operation of the business, our chief operating decision maker (“CODM”), who is our Chief Executive Officer, reviews revenues and profits in assessing segment performance and deciding how to allocate resources. Our CODM does not evaluate operating expenses by segment. During the periods presented, the Company reported its financial performance based on the following segments. Segment Entities Location Description Fund Management USCF Investments, Inc. United States Manages, operates and is a commodity pool operator or an investment advisor to exchange traded funds organized as limited partnerships or investment trusts that issue shares which trade on the NYSE Arca stock exchange. Food Products Gourmet Foods, Ltd. and Printstock Products Limited New Zealand Manufactures and distributes meat pies on a commercial scale in and prints specialty wrappers for the food industry in New Zealand and Australia. Security Systems Brigadier Security Systems (2000) Ltd. Canada Sells and installs commercial and residential alarm monitoring systems. Beauty Products Kahnalytics, Inc. doing business as Original Sprout United States Engaged in the wholesale distribution of hair and skin care products on a global scale. Financial Services Marygold & Co.; Marygold & Co. Advisory Services, LLC; Marygold & Co. (UK) Limited, Marygold & Co. Limited and Step-By-Step Financial Planners Limited United States and United Kingdom Marygold & Co. developed a Fintech app that was launched in June 2023 in the US and in March 2025 in the UK; and Marygold UK through its subsidiaries is an asset manager and registered investment advisor in the UK. Corporate Headquarters The Marygold Companies, Inc. United States Holding company responsible for organizational accountability, capital raising and allocation, corporate governance, regulatory compliance, etc. F- 27 Table of Contents The following table presents a summary of operating information (in thousands): SCHEDULE OF REVENUES FROM EXTERNAL CUSTOMERS Year Ended June 30, 2025 2024 Revenue from external customers: Fund management - related party $ 17,135 $ 18,965 Food products 6,720 7,271 Beauty products 2,974 3,296 Security systems 2,471 2,655 Financial services 854 649 Total revenue $ 30,154 $ 32,836 SCHEDULE OF OPERATING (LOSS) INCOME FROM EXTERNAL CUSTOMERS Year Ended June 30, 2025 2024 Operating income (loss): Fund management - related party $ 3,274 $ 4,773 Food products 145 321 Beauty products ( 395 ) ( 2,138 ) Security systems 250 325 Financial services ( 5,621 ) ( 5,943 ) Corporate headquarters ( 4,343 ) ( 3,594 ) Total operating loss $ ( 6,690 ) $ ( 6,256 ) The following table presents a summary of identifiable assets by geographical location (in thousands): SCHEDULE OF IDENTIFIABLE ASSETS BY GEOGRAPHICAL LOCATION June 30, 2025 2024 Identifiable assets: United States $ 22,025 $ 22,319 New Zealand 3,457 3,898 United Kingdom 3,210 3,586 Canada 1,728 3,096 Consolidated total $ 30,420 $ 32,899 NOTE 16. SUBSEQUENT EVENTS On June 19, 2025, TMC entered into a stock purchase agreement (“Agreement”) with SKCAL LLC, an Arizona limited liability company (“SKCAL”) , pursuant to which The Marygold Companies has agreed to sell to SKCAL all of the shares stock that it owns in its wholly owned subsidiary, Brigadier Security Systems (2000) Ltd., a Canadian registered corporation (“Brigadier”) . Scott Schoenberger, a director and a 10.9 % shareholder of The Marygold Companies, is the sole member of SKCAL. The closing (“Closing”) of the sale of the Shares took place on July 1, 2025, (“ Closing Date ”) . Pursuant to the Agreement, the purchase price for the Shares to be acquired by SKCAL at Closing will be $ 2.2 million subject to certain adjustments thereto. An initial payment of $ 0.2 million was paid within a few days of the execution and delivery of the Agreement by the parties. An additional $ 1.0 million was paid on or about the Closing Date, of which $ 0.5 million was received as of June 30, 2025. A final payment of $ 1.0 million was payable on September 1, 2025, subject to adjustment upward or downward thereto in the event of a difference between the Closing Date schedule of Brigadier’s current assets and liabilities as of June 30, 2025, ( “ Target Balance Sheet ” ) and the schedule of Brigadier’s audited current assets and liabilities as of June 30, 2025, (“ Final Balance Sheet ”) including adjustments in the event accounts receivable become uncollectable, cash balances increase or decrease, and/or any liabilities arise prior to Closing but which were not set forth on such Target Balance Sheet. After a comparison of the Final Balance Sheet and the Target Balance Sheet, it was determined and agreed that an upwards adjustment of $ 0.1 million be added to the purchase price resulting in the final payment amount being $ 1.1 million. On June 17, 2025, the independent members of the board of directors of the Company completed their review of an independent valuation of the fair market value of Brigadier and based upon such valuation and their review of the terms of the proposed transaction, approved the transaction. The audit committee of the Company continued to have oversight of the transaction through the Closing Date of July 1, 2025, and the final payment adjustment procedures concluding on September 1, 2025. While the Chief Operating Decision Maker evaluated the security systems segment for operational purposes through June 30, 2025, this was not considered a significant operation to the Company during the years ended June 30, 2025 and 2024, respectively. As of June 30, 2025, Brigadier had total assets of $ 1.7 million and total liabilities of $ 0.3 million. F- 28 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.