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 LLP 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 28 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. and subsidiaries (the “Company”) as of June 30, 2026 and 2025, 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, 2026, 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, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the two-year period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America. Basis for 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 15, 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, 2026. 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 15, 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 18, 2026 F- 1 Table of Contents THE MARYGOLD COMPANIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) June 30, 2026 June 30, 2025 ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,880 $ 5,004 Accounts receivable, net (of which $ 2,684 and $ 1,281 , respectively, due from related parties) 2,892 1,778 Inventories 1,051 928 Prepaid income tax and tax receivable 814 833 Investments, at fair value 7,848 7,829 Other current assets 513 1,046 Total current assets 15,998 17,418 Restricted cash - 51 Property and equipment, net 22 609 Operating lease right-of-use asset 429 599 Goodwill - 2,206 Intangible assets, net - 937 Deferred tax assets, net 3,599 3,440 Assets held for sale 2,517 2,821 Other assets 1,414 2,339 Total assets $ 23,979 $ 30,420 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 3,364 $ 3,224 Operating lease liabilities, current portion 314 307 Advance from buyer of Brigadier Security Systems (Note 7) - 720 Purchase consideration payable, current portion - 257 Note payable, current portion - 1,268 Total current liabilities 3,678 5,776 Operating lease liabilities, net of current portion 154 341 Deferred tax liabilities, net - 221 Liabilities associated with assets held for sale 921 1,095 Total long-term liabilities 1,075 1,657 Total liabilities 4,753 7,433 STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value; 50,000 shares authorized; Series B: 13 shares issued and outstanding at both June 30, 2026 and 2025, respectively - - Common stock, $ 0.001 par value; 900,000 shares authorized; 42,712 and 42,818 shares issued and outstanding at June 30, 2026 and 2025, respectively 42 42 Additional paid-in capital 15,270 15,167 Accumulated other comprehensive income (loss) 87 ( 420 ) Retained earnings 3,827 8,198 Total stockholders’ equity 19,226 22,987 Total liabilities and stockholders’ equity $ 23,979 $ 30,420 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) 2026 2025 Year Ended June 30, 2026 2025 Revenue Fund management - related party $ 21,126 $ 17,135 Beauty products 3,367 2,974 Security systems - 2,471 Financial services 820 854 Revenue 25,313 23,434 Cost of revenue 1,864 3,163 Gross profit 23,449 20,271 Operating expense Salaries and compensation 9,202 10,781 Fund operations 7,773 5,222 General and administrative expense 6,347 8,175 Impairment loss 3,605 - Marketing and advertising 2,296 2,460 Depreciation and amortization 238 468 Total operating expenses 29,461 27,106 Loss from continuing operations ( 6,012 ) ( 6,835 ) Other income (expense): Interest and dividend income 365 1,384 Interest expense ( 67 ) ( 1,166 ) Other income (expense), net 909 ( 939 ) Total other income (expense), net 1,207 ( 721 ) Loss from continuing operations before income taxes ( 4,805 ) ( 7,556 ) Benefit from income taxes 277 1,562 Net loss from continuing operations ( 4,528 ) ( 5,994 ) Net income from discontinued operations (see Note 3) 157 174 Net loss $ ( 4,371 ) $ ( 5,820 ) Weighted average shares of common stock Basic and diluted 42,956 41,701 Net loss per common share Basic and diluted $ ( 0.10 ) $ ( 0.14 ) 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) 2026 2025 Year Ended June 30, 2026 2025 Net loss $ ( 4,371 ) $ ( 5,820 ) Foreign currency translation gain (loss) 472 ( 151 ) Reclassification of cumulative translation adjustment to earnings upon sale of Brigadier 35 - Comprehensive loss $ ( 3,864 ) $ ( 5,971 ) 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 June 30, 2024 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 Issuance of restricted stock awards - - 24 - - - - - Gain on currency translation - - - - - 472 - 472 Gain (loss) on currency translation - - - - - 472 - 472 Cancellation of stock awards - - (99) - - - - - Reclassification of cumulative translation adjustment to earnings upon sale of Brigadier - - - - - 35 - 35 Stock-based compensation - - - - 128 - - 128 Shares repurchased to cover employee payroll taxes in connection with restricted stock awards - - ( 31 ) - ( 25 ) - - ( 25 ) Net loss - - - - - - ( 4,371 ) ( 4,371 ) Balance at June 30, 2026 13 $ - 42,712 $ 42 $ 15,270 $ 87 $ 3,827 $ 19,226 Balance 13 $ - 42,712 $ 42 $ 15,270 $ 87 $ 3,827 $ 19,226 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) 2026 2025 Year Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 4,371 ) $ ( 5,820 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment loss 3,605 - Depreciation and amortization 308 590 Gain on sale of Brigadier (see Note 7) ( 603 ) - Stock-based compensation 128 825 (Gain) loss on investments ( 317 ) 906 Non-cash interest expense 37 642 Non-cash lease expense 760 682 Deferred income taxes ( 298 ) ( 1,610 ) Changes in operating assets and liabilities: Accounts receivable ( 1,401 ) 317 Prepaid income taxes and tax receivable ( 213 ) 555 Inventories ( 125 ) 190 Other assets 553 247 Accounts payable and accrued expenses 469 ( 190 ) Lease liabilities ( 851 ) ( 653 ) Net cash used in operating activities ( 2,319 ) ( 3,319 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments 3,487 7,857 Purchase of investments ( 3,195 ) ( 7,043 ) Proceeds from the sale of Brigadier, net of cash disposed 1,066 720 Purchase of property and equipment ( 29 ) ( 54 ) Payment of purchase consideration payable ( 257 ) ( 277 ) Net cash provided by investing activities 1,072 1,203 CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from note payable - 3,690 Principal repayment on note payable ( 1,316 ) ( 3,064 ) 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 ( 25 ) ( 289 ) Net cash (used in) provided by financing activities ( 1,341 ) 1,830 Effect of exchange rate change on cash and cash equivalents 413 ( 182 ) NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ( 2,175 ) ( 468 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE 5,055 5,523 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 2,880 $ 5,055 Cash and cash equivalents $ 2,880 $ 5,004 Restricted cash - 51 Total cash, cash equivalents and restricted cash shown in statement of cash flows $ 2,880 $ 5,055 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 95 $ 464 Income taxes (net of refunds received) $ 33 $ 48 NON-CASH INVESTING AND FINANCING ACTIVITIES: Reclassification of advance from buyer included in gain on sale of Brigadier $ 720 $ - Acquisition of operating right-of-use assets through operating lease liability $ 440 $ 690 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. ● 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, whose principal business office is located in Walnut Creek, California; ■ Marygold & Co. Advisory Services, LLC, a wholly owned subsidiary of Marygold & Co., a Delaware limited liability company was dissolved effective February 17, 2026. ○ 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. ● 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 its principal manufacturing facility in Napier, New Zealand. As of March 31, 2026, the Company formally approved a plan to dispose of this segment and thus this segment is being presented as discontinued operations (see Note 3. Discontinued Operations). ● 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 7. Sale of Brigadier). 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, 2026 and 2025, the Company had de minimis 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, 2026 2025 2026 2025 Revenue % of Total Revenue % of Total Accounts Receivable % of Total Accounts Receivable % of Total Fund USO $ 3,451 16 % $ 5,091 30 % $ 699 25 % $ 390 30 % CPER 3,357 16 % 1,119 7 % 417 16 % 102 8 % UNG 3,110 15 % 3,931 23 % 215 8 % 180 14 % UMI 3,094 15 % 2,948 17 % 273 10 % 264 21 % USCI 2,410 11 % 1,607 9 % 233 9 % 158 12 % BNO 2,406 11 % 955 6 % 458 17 % 58 5 % SDCI 2,191 11 % 405 2 % 290 11 % 55 4 % All Others 1,107 5 % 1,079 6 % 99 4 % 74 6 % Total $ 21,126 100 % $ 17,135 100 % $ 2,684 100 % $ 1,281 100 % There are no significant concentrations for the other operating subsidiaries on a consolidated basis. Inventories Inventories consist of hair and skin care finished products and components in the US, and are valued at the lower of cost or net realizable value 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, 2026 and 2025 , the expense for slow moving or obsolete inventory was de minimis. Inventories previously associated with the Food Products segment in New Zealand are included within Assets held for sale on the Consolidated Balance Sheets (see Note 3. Discontinued Operations). Inventories associated with the Security Systems segment in Canada were disposed of in connection with the sale of Brigadier on July 1, 2025 (see Note 7. Sale of Brigadier). 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 Assets held for sale on the Consolidated Balance Sheets. Intangible Assets Intangible assets consist of brand names, 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 $ 0.7 million during fiscal 2026 relating to intangible assets in its financial services segment in the U.K. 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 $ 2.0 million during fiscal 2026 relating to its financial services segment in the U.K. and there was no impairment recorded during fiscal 2025 . 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, 2026 and 2025. 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 (which is now classified within discontinued operations – see Note 3), 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 , 2026 and 2025 were $ 2.3 million and $ 2.5 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 For the year ended June 30, 2026, the Company adopted Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) on a prospective basis. This standard improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The adoption of this new standard did not have a material impact on our consolidated financial statements. For additional information, see Note 14. Income Taxes. NOTE 3. DISCONTINUED OPERATIONS On March 31, 2026, the Company committed to a plan to dispose of its Food Products segment which is a distinct reporting segment and includes all operations conducted in New Zealand. The Food Products segment consists of two legal entities: Gourmet Foods, Ltd. which is a bakery business and Printstock Products Limited which is a printing business for the food industry. The Company expects to dispose of these two entities either collectively or separately through a sale or sales to a third party. The decision to divest the Food Products segment was driven by management’s strategic initiative to focus on its Fund Management and Financial Services related businesses. The disposal represents a strategic shift that will have a significant impact on the Company’s operations and financial results, including the exit from New Zealand and the Food Products segment. The Company is actively marketing the Food Products segment and expects the transaction to be completed within twelve months of the classification date. The Company has engaged a business broker to assist with the sale of the Food Products segment. Upon completion of a transaction, the broker is entitled to a success fee of up to 6 % of the transaction value. There can be no assurance the Company will be successful in divesting this business upon terms acceptable to the Company or as to the timing or terms of the final transaction or series of transactions. The following table presents the major classes of assets and liabilities classified as held for sale for each of the periods presented (in thousands). SCHEDULE OF MAJOR CLASSES OF ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE June 30, 2026 June 30, 2025 ASSETS Accounts receivable $ 563 $ 533 Inventories 862 1,073 Prepaid income tax and tax receivable 182 - Property and equipment 388 429 Operating lease right-of-use assets 202 385 Intangible assets (including goodwill) 287 367 Other assets 33 34 Total assets held for sale $ 2,517 $ 2,821 LIABILITIES Accounts payable and accrued expenses $ 641 $ 606 Lease liabilities 280 489 Total liabilities associated with assets held for sale $ 921 $ 1,095 The following table summarizes the results of the discontinued operations of the Food Products segment for the periods presented (in thousands). 2026 2025 Year Ended June 30, 2026 2025 Revenue $ 6,662 $ 6,720 Cost of revenue 5,163 5,119 Total operating expenses 1,360 1,456 Net income from discontinued operations 157 174 The following table summarizes the net cash provided by (used in) operating activities of the discontinued operations of the Food Products segment for the periods presented (in thousands). There were no material cash flows from investing or financing activities during these respective periods. 2026 2025 Year Ended June 30, 2026 2025 Net cash provided by (used in) operating activities $ 122 $ ( 434 ) F- 13 Table of Contents NOTE 4. 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 shares of Series B, Voting, Convertible Preferred Stock (“Series B Preferred Stock”) outstanding as they are deemed to be substantially similar to the common shares and shareholders are entitled to the same liquidation and dividend rights and each share of Series B Preferred Stock is convertible at any time into 20 shares of the Company’s common stock. Diluted net loss per share is based on the assumption that all dilutive convertible shares, restricted stock awards and stock options were converted, released 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. Since the Company generated a net loss in both fiscal 2026 and 2025, basic and diluted net loss per share were the same. The Company excluded the following shares from the diluted net loss per share calculation as their effect would be anti-dilutive. SCHEDULE OF ANTI-DILUTIVE SECURITIES Year Ended June 30, 2026 Year Ended June 30, 2025 Warrants outstanding 82,500 82,500 Stock options outstanding 283,032 343,667 Restricted Stock Awards outstanding 14,145 193,857 Total common stock equivalents excluded 379,677 620,024 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, 2026 Year Ended June 30, 2025 Net Loss Shares Per Share Net Loss Shares Per Share Basic and diluted net loss per share: Net loss available to common shareholders $ ( 4,344 ) 42,690 $ ( 0.10 ) $ ( 5,719 ) 40,977 $ ( 0.14 ) Net loss available to preferred shareholders ( 27 ) 266 $ ( 0.10 ) ( 101 ) 724 $ ( 0.14 ) Basic and diluted net loss per share $ ( 4,371 ) 42,956 $ ( 0.10 ) $ ( 5,820 ) 41,701 $ ( 0.14 ) NOTE 5. 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, Inventories 2026 2025 Raw materials and supplies $ 295 $ 328 Finished goods 756 600 Total inventories $ 1,051 $ 928 SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT June 30, June 30, Property and equipment, net 2026 2025 Land and building $ - $ 575 Other equipment 134 631 Total property and equipment, gross 134 1,206 Accumulated depreciation ( 112 ) ( 597 ) Total property and equipment, net $ 22 $ 609 F- 14 Table of Contents Depreciation expense for property and equipment totaled less than $ 0.1 million for the year ended June 30, 2026 and totaled $ 0.2 million for the year ended June 30, 2025. SCHEDULE OF OTHER ASSETS NON-CURRENT June 30, June 30, Other assets, non-current 2026 2025 Equity investment in a financial institution $ 900 $ 1,800 Equity investment in a registered investment advisor 502 502 Deposits and other assets 12 37 Total other assets, non-current $ 1,414 $ 2,339 The $ 1.8 million investment as of June 30, 2025 represents an equity interest of less than 10 % in a domestic private bank 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. During fiscal 2026 the Company recorded an impairment charge of $ 0.9 million, which is included within Impairment loss on the Consolidated Statement of Operations, on its investment in the domestic private bank based on continuing losses at the bank. Other than the $ 0.9 million impairment taken in fiscal 2026, there have been no other impairments, downward adjustments or upward adjustments during the periods presented or cumulatively. SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES June 30, June 30, Accounts payable and accrued expenses 2026 2025 Accounts payable $ 2,078 $ 1,794 Accrued operating expenses 843 1,050 Accrued payroll, vacation and bonus payable 443 380 Total accounts payable and accrued expenses $ 3,364 $ 3,224 NOTE 6. 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 the intention is for these investments to generally be sold within one year of the balance sheet date; however occasionally these investments have been held for over one year. 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, 2026 and 2025, the Company has investments totaling $ 1.3 million and $ 3.6 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 gains of $ 0.6 million and unrealized losses of $ 0.8 million for the years ended June 30, 2026 and 2025, respectively. All of the Company’s short-term investments are classified as Level 1 assets as of June 30, 2026 and 2025. Investments measured at estimated fair value consist of the following as of June 30, 2026 and 2025 (in thousands): SCHEDULE OF AVAILABLE-FOR-SALE SECURITIES RECONCILIATION June 30, 2026 Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Money market funds $ 6,208 $ - $ - $ 6,208 Other short-term investments 323 1 - 324 Other equities - related parties 1,429 1 ( 114 ) 1,316 Total short-term investments $ 7,960 $ 2 $ ( 114 ) $ 7,848 F- 15 Table of Contents 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 During the years ended June 30, 2026 and 2025, there were no transfers between the fair value levels. NOTE 7. SALE OF BRIGADIER On June 17, 2025, the independent members of the Board of Directors of the Company were presented with a proposed transaction for the sale of the Company’s wholly owned subsidiary, Brigadier Security Systems (2000) Ltd., a Canadian registered corporation (“Brigadier”). The independent members of the Board of Directors reviewed 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. On June 19, 2025, the Company entered into a stock purchase agreement (“Agreement”) with SKCAL LLC, an Arizona limited liability company (“SKCAL”), pursuant to which the Company agreed to sell to SKCAL all of the shares of stock (“Shares”) that it owns in its wholly owned subsidiary, Brigadier. Scott Schoenberger, a director and a 10.9 % shareholder of the Company, is the sole member of SKCAL. The closing (“Closing”) of the sale of Shares took place on July 1, 2025 (“Closing Date”) . Pursuant to the Agreement, the purchase price for the Shares acquired by SKCAL at Closing was $ 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 near 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. 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. The Company received total proceeds of $ 2.3 million for the sale and had a cost basis in Brigadier of $ 1.7 million and thus recorded a gain on the sale of Brigadier of $ 0.6 million. F- 16 Table of Contents NOTE 8. IMPAIRMENT LOSS During fiscal 2026, the Company recorded an impairment loss of $ 2.7 million related to goodwill and other intangible assets in its U.K. financial services business unit. The business unit had been suffering from increased losses resulting from loss of client accounts, which was accelerated by the departure of a former executive of the acquired businesses. The impairment loss included intangible assets of $ 0.2 million relating to brand name and $ 0.5 million relating to customer relationships. The Company determined the fair value of the reporting unit using multiple methods, including discounted cash flows and pricing of comparable companies. In addition to the $ 2.7 million impairment charge related to the U.K. financial services business unit, the Company also recorded a $ 0.9 million impairment charge related to an equity investment, as further described in Note 5. Certain Balance Sheet Details. NOTE 9. GOODWILL Changes in the carrying amount of goodwill were as follows (in thousands): SCHEDULE OF GOODWILL Goodwill June 30, 2024 June 30, 2025 Currency Translation Adjustments Dispositions / Impairments June 30, 2026 Security systems – Brigadier $ 351 $ 351 $ - $ ( 351 ) $ - Financial services - Marygold & Co. (UK) 1,855 1,855 129 ( 1,984 ) - Total $ 2,206 $ 2,206 $ 129 $ ( 2,335 ) $ - The Company tests for goodwill impairment at each reporting unit annually on June 30. Refer to Note 8, Impairment Loss, regarding the goodwill impairment recorded during fiscal 2026. The Company sold Brigadier during fiscal 2026 (see Note 7. Sale of Brigadier for additional information on the sale). NOTE 10. INTANGIBLE ASSETS During fiscal 2026, the Company’s intangible assets were either impaired as it relates to the Financial Services - Marygold & Co. (UK) assets (see Note 8. Impairment Loss), moved to Assets held for sale as it relates to the Food Products in New Zealand assets (see Note 3. Discontinued Operations) or became fully amortized. The Company’s intangible assets consisted of the following at June 30, 2025. SCHEDULE OF INTANGIBLE ASSETS Intangible Assets Weighted Average Remaining Life (in years) Intangible assets (gross) Accumulated amortization Intangible asset (net) 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 $ 1,396 $ ( 712 ) $ 684 Brand name 0.9 378 ( 346 ) 32 Brand name – indefinite lived N/A 148 - 148 Internally developed software 1.0 218 ( 145 ) 73 Total $ 2,140 $ ( 1,203 ) $ 937 Total amortization expense for intangible assets was $ 0.2 million and $ 0.3 million for the years ended June 30, 2026 and 2025, respectively. F- 17 Table of Contents NOTE 11. RELATED PARTY TRANSACTIONS USCF Investments - Related Party Transactions The funds managed by USCF LLC and USCF Advisers are considered related parties for financial accounting purposes. The Company’s fund management revenue, totaling $ 21.1 million and $ 17.1 million for fiscal years 2026 and 2025, respectively, were earned from these related parties. Accounts receivable, totaling $ 2.7 million and $ 1.3 million as of June 30, 2026 and 2025, respectively, were owed from these related parties. USCF Investments, from time to time, provides initial seed capital investments in connection with the organization of ETP and ETF funds that USCF LLC manages. As of June 30, 2026 and June 30, 2025, the Company held a total of $ 1.3 million and $ 3.6 million, respectively, in funds managed by USCF Advisers which are included in investments on the consolidated balance sheets. The Company owns 16 % and 21 % of the outstanding shares of or other interest in these funds as of June 30, 2026 and 2025, respectively. Included in interest and dividend income on the consolidated statements of operations are $ 0.1 million and $ 1.0 million for fiscal 2026 and 2025, respectively, of dividends earned from these related party investments. During the year ended June 30, 2026, USCF reimbursed one of its funds that it manages $ 2.5 million due to a trading error which occurred in the execution of an oil futures trade. The reimbursement is reflected as a reduction in revenue on the Consolidated Statement of Operations. USCF Advisers is no longer contractually obligated to pay license fees to an affiliated entity related to intellectual property rights for two of the funds during fiscal 2026 and 2025 as both parties agreed to terminate the license fee. The amount of license fee accrued as an expense during fiscal 2026 and 2025 was zero and $ 0.3 million, 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 7. Sale of Brigadier for more details) . NOTE 12. NOTE 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 Purchase Agreement contained 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 contained 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 were 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. 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. During the first quarter of fiscal 2026 the Company paid all principal and interest due under the Note in the aggregate of $ 1.4 million and all collateral and guarantees pledged to the lender in connection with the Note have been released. The Company has no other indebtedness. The effective interest rate for the Note was 41.3 %. Interest expense for this note payable during fiscal year 2026 and 2025 was $ 0.1 million and $ 1.2 million, respectively. NOTE 13. 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, 2026, 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 shares of Series B Convertible Preferred Stock outstanding as of June 30, 2026 and 2025, 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 3,907,813 are available for future grants as of June 30, 2026. 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. There were no stock option grants during the year ended June 30, 2026. The fair value of the options granted for the year ended June 30, 2025 were estimated using the following assumptions: expected volatility 137 %, expected term 6.1 years, risk free interest rate 4.5 % and expected dividend yield 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 2026 and 2025, 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, 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 Granted - $ - 24,270 $ 1.03 Released - $ - ( 105,019 ) $ 1.29 Expired ( 29,248 ) $ 1.30 - $ - Forfeited ( 31,387 ) $ 1.27 ( 98,963 ) $ 1.35 Outstanding at June 30, 2026 283,032 $ 1.32 14,145 $ 1.03 Exercisable at June 30, 2026 195,214 $ 1.32 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 zero and $ 0.1 million for fiscal 2026 and 2025, respectively. The weighted average remaining contractual term of the stock options outstanding as of June 30, 2026 was 6.2 years. The aggregate intrinsic value of stock options outstanding as of June 30, 2026 was zero . Stock-based compensation relating to RSAs totaled less than $ 0.1 million and $ 0.7 million for the years ended June 30, 2026 and 2025, 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 $ 0.1 million and $ 0.8 million for the years ending June 30, 2026 and 2025, respectively, and are included in the Consolidated Statements of Operations. As of June 30, 2026, there was $ 0.1 million of unrecognized compensation expense related to outstanding stock options and RSAs that will be recognized over a remaining period of 2.1 years. The aggregate expected stock-based compensation expense remaining to be recognized reflects only awards as of June 30, 2026 and assumes no forfeiture activity. There were no shares issued for vendor services during the years ending June 30, 2026 and 2025 . NOTE 14. INCOME TAXES The following table summarizes the loss from continuing operations before income taxes (in thousands): SUMMARY OF (LOSS) INCOME BEFORE INCOME TAXES 2026 2025 Year Ended June 30, 2026 2025 United States $ ( 773 ) $ ( 6,512 ) Foreign ( 4,032 ) ( 1,044 ) Loss from continuing operations before income taxes $ ( 4,805 ) $ ( 7,556 ) 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 2026 2025 Year Ended June 30, 2026 2025 United States $ 291 $ 1,302 Foreign ( 14 ) 260 Total benefit from income taxes $ 277 $ 1,562 F- 20 Table of Contents 2026 2025 Year Ended June 30, 2026 2025 Current: Federal $ 17 $ ( 39 ) States ( 22 ) ( 16 ) Foreign ( 16 ) 7 Total current ( 21 ) ( 48 ) Deferred: Federal 330 1,356 States ( 34 ) 1 Foreign 2 253 Total deferred 298 1,610 Total benefit from income taxes $ 277 $ 1,562 Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets for the years ended June 30, 2026 and 2025 are presented below (in thousands): SCHEDULE OF DEFERRED TAX ASSETS 2026 2025 June 30, 2026 2025 Deferred tax assets: Intangible assets - U.S. $ 740 $ 685 Net operating loss 2,662 2,222 Capital loss carryover 144 45 Accruals, reserves and other - U.S. and foreign 485 488 Gross deferred tax assets 4,031 3,440 Less: valuation allowance ( 432 ) - Total deferred tax assets $ 3,599 $ 3,440 Deferred tax liabilities: Intangible assets - foreign $ - $ ( 195 ) Accruals, reserves and other - foreign - ( 26 ) Total deferred tax liabilities - foreign $ - $ ( 221 ) Total net deferred tax assets $ 3,599 $ 3,219 F- 21 Table of Contents The Company’s accounting for deferred income taxes requires evaluating the realizability of its net deferred tax assets. In assessing recoverability, the Company considers all available positive and negative evidence, including historical operating performance, the nature of the deferred tax assets, and the timing, likelihood, and amount of future taxable income during the periods when temporary differences and carryforwards become deductible. Based on this evaluation, the Company established a partial valuation allowance against certain net deferred tax assets as of June 30, 2026. The valuation allowance increased by $ 0.4 million during the fiscal year ended June 30, 2026. No valuation allowance was recorded as of June 30, 2025, because the Company determined at that time that it was more likely than not that its net deferred tax assets would be realized. For the year ended June 30, 2026, the Company adopted ASU 2023-09 prospectively. See Note 2. Summary of Significant Accounting Policies - Recent Accounting Pronouncements for additional details on the adoption of ASU 2023-09. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended June 30, 2026 was as follows: SCHEDULE OF INCOME TAX BENEFIT EXPENSE Amount Percentage Year Ended June 30, 2026 Amount Percentage U.S. federal statutory tax rate $ 976 21.0 % State and local income taxes (net of federal benefit) ( 51 ) ( 1.1 )% Permanent differences - - Foreign tax effects: United Kingdom Statutory tax rate differential between U.K. and U.S. 88 1.9 % Goodwill impairment ( 424 ) ( 9.1 )% Change in valuation allowance ( 432 ) ( 9.3 )% Canada Gain from sale of business ( 82 ) ( 1.8 )% Other ( 16 ) ( 0.3 )% Nontaxable or nondeductible items: Gain from sale of business 201 4.3 % Other 17 0.4 % Total tax benefit $ 277 6.0 % The benefit from income taxes for the year ended June 30, 2025, prior to the adoption of ASU 2023-09, 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): Amount Percentage Year Ended June 30, 2025 Amount Percentage Federal tax benefit at statutory tax rate $ 1,550 21.0 % State income taxes ( 12 ) ( 0.2 )% Permanent differences ( 14 ) ( 0.1 )% Foreign rate differential 38 0.5 % Total tax benefit $ 1,562 21.2 % 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. As of June 30, 2025, the balance of gross unrecognized tax benefits was zero , and it remained zero throughout the year ended June 30, 2026. As of June 30, 2026 and 2025, the Company has federal net operating loss carryforwards of $ 10.4 million and $ 9.4 million, respectively, and state net operating loss carryforwards of $ 4.3 million and $ 6.9 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 2021 through 2025 as of year ended June 30, 2026 . 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, 2026 . The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2026 and 2025, the Company accrued and recognized as a liability zero , 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. F- 23 Table of Contents NOTE 15. COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases various facilities and offices in the US and UK with varying lease terms. For the years ended June 30, 2026 and 2025, the combined operating lease costs of the Company totaled $ 0.4 million and $ 0.6 million, respectively, 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 2027 $ 330 2028 139 Total minimum lease payments 469 Less: present value discount ( 1 ) Total lease liabilities $ 468 The weighted average remaining lease term for the Company’s operating leases was 1.3 years as of June 30, 2026 and a weighted-average discount rate of 6.0 % was used to determine the total operating lease liabilities. Other Agreements and Commitments Effective as of March 31, 2025, the Company determined to pause further development of its Fintech app for the U.S. market. 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, 2026, Marygold US has recorded payment commitments in accounts payable and accrued expenses totaling $ 0.7 million with some former primary service vendors not including an additional $ 0.2 million in unused service commitments. Similarly, effective June 30, 2026, the Company determined to pause further development of its Fintech app for the U.K. market. As of June 30, 2026, Marygold UK has recorded payment commitments totaling $ 0.1 million with some former primary service vendors not including an additional $ 0.1 million in unused service commitments. It is uncertain what amount of this contractual commitment may be reduced by the vendors as such services are no longer required. F- 24 Table of Contents Litigation From time to time, the Company and its subsidiaries may be involved in legal proceedings arising in the ordinary course of their respective businesses. Except as described below, there are no material pending legal proceedings against the Company or its subsidiaries. USCF LLC 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 LLC 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 Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended (“Securities Exchange Act”), and Rule 10b-5 under the Securities Exchange Act. 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 LLC, 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. The lead plaintiff 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. On September 29, 2025, the Court granted the defendants’ motion to dismiss the complaint without prejudice and granted plaintiff leave to file a motion to amend its complaint. On November 26, 2025, the plaintiff filed a motion for leave to file a proposed second consolidated amended complaint, which defendants have opposed. The motion remains pending before the Court. USCF LLC, 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. F- 25 Table of Contents 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 final disposition of the motion(s) to dismiss in In re: United States Oil Fund, LP Securities Litigation. USCF LLC, 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, Nicholas D. Gerber, Robert L. Nguyen, Gordon L. Ellis, Malcolm R. Fobes, III, 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 Securities 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. 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 LLC, USO, and the other defendants intend to vigorously contest the claims in In re United States Oil Fund, LP Derivative Litigation . F- 26 Table of Contents No accrual or reserve has been made with respect to the above legal matters for fiscal 2026 or 2025. 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. Although we are vigorously contesting the litigation claims discussed above, in the near term it is reasonably possible that we may be required to establish a reserve or an accrual in the future depending upon the outcome of any of the foregoing litigation matters. An adverse outcome in any of 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 $ 0.2 million and $ 0.3 million for the years ended June 30, 2026 and 2025 , respectively. NOTE 16. 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. 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 2026 2025 Year Ended June 30, 2026 2025 Revenue from external customers: Fund management - related party $ 21,126 $ 17,135 Beauty products 3,367 2,974 Security systems - 2,471 Financial services 820 854 Total revenue $ 25,313 $ 23,434 SCHEDULE OF OPERATING (LOSS) INCOME FROM EXTERNAL CUSTOMERS 2026 2025 Year Ended June 30, 2026 2025 Income (loss) from continuing operations: Fund management - related party $ 2,912 $ 3,274 Beauty products 293 ( 395 ) Security systems - 250 Financial services ( 4,079 ) ( 5,621 ) Corporate headquarters ( 5,138 ) ( 4,343 ) Total loss from continuing operations $ ( 6,012 ) $ ( 6,835 ) The following table presents a summary of identifiable assets by geographical location (in thousands): SCHEDULE OF IDENTIFIABLE ASSETS BY GEOGRAPHICAL LOCATION 2026 2025 June 30, 2026 2025 Identifiable assets: United States $ 20,477 $ 22,025 United Kingdom 350 3,210 Canada - 1,728 Total $ 20,827 $ 26,963 The identifiable assets relating to the Food products segment are included in Note 3. Discontinued Operations. NOTE 17. SUBSEQUENT EVENTS The Company has evaluated subsequent events through September 18, 2026, the date the financial statements were issued, and determined that there were no subsequent events that require recognition or disclosure. F- 28 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.