CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (CONTINUED) (UNAUDITED)

The accompanying notes are an integral part of these Consolidated Financial Statements.

AND CONSOLIDATION

U.S. Global Investors, Inc. (the “Company” or “U.S. Global”) has prepared the ~~consolidated financial statements pursuant to~~Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”) that permit reduced disclosure for interim periods. The financial information included herein reflects all adjustments (consisting solely of normal recurring adjustments), which are, in management’s opinion, necessary for a fair presentation of results for the interim periods presented. The Company has consistently followed the accounting policies set forth in the notes to the ~~consolidated financial statements~~Consolidated Financial Statements in the Company’s Form ~~10-K~~10-K for the fiscal year ended June 30, ~~2017,~~2023 ("Form 10-K"), except for the adoption of the new accounting ~~pronouncements~~pronouncement discussed below.

The ~~consolidated financial statements~~Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries, ~~U.S. Global Brokerage, Inc.,~~ U.S. Global Investors (Bermuda) Limited, U.S. Global Investors (Canada) Limited (“USCAN”), and U.S. Global Indices, ~~LLC, and its 65 percent interest in Galileo Global Equity Advisors Inc. (“Galileo”). U.S. Global Brokerage, Inc. ceased operations in December 2015.~~

Galileo is consolidated with the operations of the Company. The non-controlling interest in this subsidiary is included in “Non-Controlling Interest in Subsidiary” in the equity section of the Consolidated Balance Sheets. Frank Holmes, CEO, and Susan McGee, President and General Counsel, serve as directors of Galileo.

LLC.

There are two primary consolidation models in U.S. GAAP, the variable interest entity (“VIE”) and voting interest entity models. The Company’s evaluation for consolidation includes whether entities in which it has an interest or from which it receives fees are VIEs and whether the Company is the primary beneficiary of any VIEs identified in its analysis. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has the obligation to absorb a majority of the expected losses or the right to receive the majority of the residual returns and consolidates the VIE on the basis of having a controlling financial interest.

The Company holds variable interests in, but is not deemed to be the primary beneficiary of, certain funds it advises, specifically, certain funds in U.S. Global Investors Funds (“USGIF” or the “Funds”) ~~and one of the offshore funds.~~. The Company’s interests in these VIEs consist of the Company’s direct ownership therein and any fees earned but uncollected. See further information about these funds in Notes 23 and 3.4. In the ordinary course of business, the Company may choose to waive certain fees or assume operating expenses of the funds it advises for competitive, regulatory or contractual reasons (see Note 34 for information regarding fee waivers). The Company has not provided financial support to any of these entities outside the ordinary course of business. The Company’s risk of loss with respect to these VIEs is limited to the carrying value of its investments in, and fees receivable from, the entities. The Company is not deemed to be the primary beneficiary because it does not have the obligation to absorb a majority of the expected losses or the right to receive the majority of the residual returns. The Company does not consolidate these VIEs because it is not the primary beneficiary. The Company’s total exposure to unconsolidated VIEs, consisting of the carrying value of investment securities and receivables for fees, was ~~$8.9~~$10.9 million at ~~December~~March 31, ~~2017,~~2024, and ~~$11.3~~$12.5 million at June 30, ~~2017.~~2023.

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The ~~Company holds a variable interest~~carrying amount of assets and liabilities recognized in ~~a fund advised by Galileo, but this fund does not qualify~~the Consolidated Balance Sheets related to the Company's interests in these non-consolidated VIEs were as ~~a VIE.~~ follows:

	*Carrying Value and Maximum Exposure to Loss*
(dollars in thousands)	*March 31, 2024*		*June 30, 2023*
Investments in securities at fair value, current	$	10,071	$	11,642
Investments in equity securities at fair value, non-current		830		785
Other receivables		29		45
Total VIE assets, maximum exposure to loss	$	10,930	$	12,472

Since the ~~fund~~Company is not ~~a VIE,~~ the primary beneficiary of the above funds it advises, the Company evaluated if it should consolidate ~~the fund~~ under the voting interest entity model. Under the voting interest model, for legal entities other than partnerships, the usual condition for control is ownership, directly or indirectly, of more than 50 percent of the outstanding voting shares over an entity. The Company does not have control of any of the ~~fund and,~~above funds it advises; therefore, ~~does not consolidate the fund. However,~~ the Company ~~owns approximately 30 percent~~does not consolidate any of the fund, and is considered to have the ability to exercise significant influence. Thus, the investment is accounted for under the equity method of accounting. See further information about this investment in Note 2.

these funds.

All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts have been reclassified for comparative purposes. Due to rounding, the year-to-date amount may not be the exact sum of the quarterly amounts. The results of operations for the ~~six months ended December 31, 2017,~~interim periods disclosed herein are not necessarily indicative of the results ~~to be expected~~the Company may expect for the ~~entire year.~~

fiscal year ending June 30, 2024 (“fiscal 2024”).

The unaudited interim financial information in these ~~condensed financial statements~~Consolidated Financial Statements should be read in conjunction with the ~~consolidated financial statements~~Consolidated Financial Statements contained in the Company’s annual ~~report.~~

~~Recent~~report on Form 10-K; interim disclosures generally do not repeat those in the annual statements.

Use of Estimates

Preparation of the Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may materially differ from those estimates.

Adoption of New Accounting ~~Pronouncements~~

~~Accounting Pronouncements Adopted During~~ Standard

In June 2016, the ~~Period~~

~~In March 2016, the FASB issued~~Financial Accounting Standards ~~Update (“ASU”~~Board ("FASB") ~~2016-09,~~ ~~Improvements to Employee Share-Based Payment Accounting~~ (“ASU 2016-09”). ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and disclosed. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted this guidance on July 1, 2017, without a material impact to the consolidated financial statements.

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~~Accounting Pronouncements Not Yet Adopted~~

~~In May 2014, the FASB~~ issued ASU ~~2014-09,~~ ~~Revenue from Contracts with Customers~~ (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted, but the Company currently does not expect to implement the new standard before the required effective date. Additional ASUs have been issued to clarify certain aspects of ASU 2014-09. ASU 2016-08, ~~Principal versus Agent Considerations (Reporting Revenue Gross versus Net)~~ ~~amends ASU 2014-09 to clarify that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. ASU 2016-10,~~ ~~Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, clarifies the guidance related to identifying performance obligations and the licensing guidance in ASU 2014-09. ASU 2016-12,~~ ~~Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20,~~ ~~Technical Corrections and Improvements in Topic 606 Revenue from Contracts with Customers~~, provide additional clarification to a number of topics addressed in ASU No. 2014-09. These ASUs are effective in conjunction with the adoption of ASU 2014-09. The Company expects to adopt the guidance in the first quarter of fiscal year 2019 on a modified retrospective basis. The Company is in the process of evaluating its contracts using the prescribed five-step process to determine the impact of this standard and does not currently expect the adoption to have a material impact on its consolidated financial statements. While the Company continues to evaluate the impact of the revenue recognition guidance and cannot currently quantify the impact of the guidance, the Company has begun a preliminary assessment of the impact. The assessment includes a detailed review of the investment management agreements, establishing which agreements are expected to be in place, and understanding when revenue would be recognized under those agreements. The Company anticipates completing its evaluation in the year ending June 30, 2018.

~~In January~~ 2016 ~~the FASB issued ASU 2016-01,~~ ~~Recognition and Measurement of Financial Assets and Financial Liabilities~~ (“ASU 2016-01”). ASU 2016-01 amends the guidance on the classification and measurement of investments in equity securities. It also amends certain presentation and disclosure requirements. Under the amended guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. ASU 2016-01 is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. As indicated, when this standard is adopted, changes in the fair value of the Company’s equity investments classified as available-for-sale will no longer be reported through other comprehensive income, but rather through earnings, causing investment income (loss) to be more volatile. As a significant amount of the Company’s assets are in available-for-sale equity investments, the effect of adoption is currently expected to be material to the Company’s consolidated financial statements. The Company is currently evaluating other potential impacts of this standard on its consolidated financial statements.

~~In February 2016, the FASB issued ASU 2016-02,~~ ~~Leases~~ (“ASU 2016-02”). ASU 2016-02 introduces a lessee model that brings most leases on the balance sheet by recording a lease asset and a lease liability. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. The Company’s current leases are primarily for equipment and for office space for the Canadian subsidiary. The Company does not expect that adoption will have a material impact on its consolidated statements of operations because its leases are currently classified as operating leases, which under the guidance will continue to be recognized as expense on a straight-line basis. The adoption, however, will result in a gross up in total assets and total liabilities on the Company’s consolidated balance sheets.

~~In June 2016, the FASB issued ASU 2016-13,~~ -13,Financial Instruments – Credit Losses (Topic ~~326),~~326): Measurement of Credit Losses on Financial Instruments, ~~(“ASU 2016-13”~~and has subsequently issued several amendments (collectively, “ASU 2016-13”). ASU ~~2016-13~~2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss ~~model)~~model, or "CECL") that is based on expected losses rather than incurred ~~losses.~~losses for most financial assets and certain other instruments. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. It also modifies the impairment model for available-for-sale debt securities; the concept of "other-than-temporary" impairment was replaced by a determination of whether any impairment is a result of a credit loss or other factors. To adopt the standard, entities are required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. The Company adopted the standard using the modified-retrospective approach for all financial assets measured at amortized cost on July 1, 2023, and recognized an initial allowance for credit losses of $232,000 for one held-to-maturity debt security. The cumulative-effect adjustment to beginning retained earnings, net of the related tax effect, was a decrease of $183,000.

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU ~~2016-13 is effective~~2022-03,Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for ~~public business entities~~equity securities subject to contractual sale restrictions that are ~~SEC filers~~measured at fair value. ASU 2022-03 will be effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Earlier application is permitted only for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the potential impact of this standard on its consolidated financial statements.

~~In August 2016, the FASB issued ASU 2016-15,~~ ~~Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments~~ (“ASU 2016-15”). ASU 2016-15 may change how an entity classifies certain cash receipts and cash payments on its statement of cash flows to reduce existing diversity in practice. The guidance will generally be applied retrospectively and is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years. 2023. Early adoption is permitted for both interim and ~~the Company is in the process of determining whether the standard will be early adopted.~~annual financial statements that have not yet been issued or made available for issuance. The Company ~~is currently evaluating~~has evaluated the ~~potential impact of this standard but~~guidance and does not ~~currently~~ expect the adoption ~~to have a material impact on~~of the ~~consolidated statements of cash flows.~~

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~~In November 2016, the FASB issued ASU 2016-18,~~ ~~Statement of Cash Flows (Topic 230): Restricted Cash~~ (“ASU 2016-18”). Under ASU 2016-18, restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The guidance will be applied retrospectively, and early adoption is permitted. The Company is in the process of determining whether thenew standard ~~will be early adopted but does not currently expect the adoption~~ to have a material impact on its Consolidated Financial Statements.

In November 2023, the FASB issued ASU 2023-07,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which enhances the disclosures required for reportable segments in annual and interim consolidated financial ~~statements.~~statements, including additional, more detailed information about a reportable segment’s expenses. ASU 2023-07 will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2023-07 on its Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will be effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of the pending adoption of ASU 2023-09 on its Consolidated Financial Statements.

Significant Accounting Policies

As a result of the adoption of an accounting pronouncement during the current fiscal year, the following accounting policies have been updated. For a complete listing of the Company's significant accounting policies, please refer to the Annual Report on Form 10-K for the year ended June 30, 2023.

Investments in Debt Securities. The Company classifies debt investments based on the Company’s intent to sell the security or its intent and ability to hold the debt security to maturity. Debt securities classified as trading are acquired with the intent to sell in the near term and are carried at fair value with changes reported in earnings. Held-to-maturity debt securities are purchased with the intent and ability to hold until maturity and are measured at amortized cost. All other debt securities are classified as available-for-sale and are carried at fair value, and changes in unrealized gains and losses are reported net of tax in accumulated other comprehensive income (loss), except for declines in fair value determined to be a result of credit loss, which are reported in earnings. Upon the disposition of an available-for-sale security, the Company reclassifies the gain or loss on the security from accumulated other comprehensive income (loss) to net investment income (loss). Both available-for-sale and held-to-maturity debt securities are subject to an allowance for credit losses.

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Allowance for Credit Losses (Held-to-Maturity Debt Securities). For held-to-maturity debt securities, the Company is required to utilize the CECL methodology to estimate expected credit losses. Securities are evaluated on an individual basis. The individual assessment and determination of expected credit losses is generally based on the discounted cash flow method. Under the discounted cash flow method, the allowance for credit losses reflects the difference between the amortized cost basis and the present value of the expected cash flows. The Company adjusts the discount rate utilized to determine the present value of the expected cash flows quarterly for subsequent fluctuations in market interest rates. Changes in the present value attributable to the passage of time are those solely due to changes in the present value of the expected cash flows as the instrument approaches maturity rather than expectations of cash flow timing or amounts, and are included in interest income within net investment income (loss) on the Consolidated Statements of Operations. Changes in the allowance attributable to expectations of cash flow timing or amounts are recorded as a provision (or release) for credit losses and are included within other income (loss) on the Consolidated Statements of Operations. Held-to-maturity debt securities, or portions thereof, are charged against the allowance when management believes the uncollectible status of a held-to-maturity security is confirmed. Accrued interest receivable is excluded from the allowance for credit losses. For more information about held-to-maturity debt securities, see Note 3, Investments.

Allowance for Credit Losses (Available-for-Sale Debt Securities). The impairment model for available-for-sale debt securities differs from the CECL methodology applied for held-to-maturity debt securities because available-for-sale debt securities are measured at fair value rather than amortized cost. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale debt securities where neither of the criteria is met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Any remaining discount that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as a provision (or release) for credit losses and are included within other income (loss) on the Consolidated Statements of Operations. Losses are charged against the allowance when management believes the uncollectible status of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable is excluded from the allowance for credit losses. See Note 3, Investments, for more information about available-for-sale debt securities.

Credit Quality Indicators. The Company monitors the credit quality of debt securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying organization.

Receivables and Allowance for Credit Losses. Receivables consist primarily of advisory and other fees owed to the Company by clients. The Company records an expense based on a forward-looking current expected credit loss model to maintain an allowance for credit losses. When determining the allowance for receivables, the probability of recoverability of the receivable based on past experience, taking into account current collection trends and general economic factors, including bankruptcy rates, is considered. The Company also considers future economic trends to estimate expected credit losses over the lifetime of the asset. Credit risks are assessed based on historical write-offs, net of recoveries, as well as an analysis of the aged accounts receivable balances with allowances generally increasing as the receivable ages. Accounts receivable may be fully reserved for when specific collection issues are known to exist, such as pending bankruptcies. Due to the short-term nature, the Company had no allowance for credit losses related to receivables as of March 31, 2024, or June 30, 2023.

Dividends and Interest. Dividends are recorded on the ex-dividend date, and interest income is recorded on an accrual basis. Debt investments are placed on a non-accrual status when they are past due 180 days or more as to contractual obligations or when other circumstances indicate that collection is not probable. When a debt investment is placed on a non-accrual status, any interest accrued but not received is reversed against interest income. Any discount between the cost and the principal amount of debt investments is amortized to interest income using the effective interest method. When the discounted cash flow method is utilized to estimate expected credit losses for held-to-maturity debt securities, any changes in the allowance for credit losses that are attributable to the passage of time are recognized in interest income. Both dividends and interest income are included within net investment income (loss) on the Consolidated Statements of Operations.

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NOTE 2.3. INVESTMENTS

As of ~~December~~March 31, ~~2017,~~2024, the Company held investments ~~with a~~carried at fair value on a recurring basis of ~~approximately $29.8~~$16.7 million and a cost basis of ~~approximately $12.6~~$18.9 million. The fair value of these investments is approximately ~~66.1~~31.6 percent of the Company’s total ~~assets.~~assets at March 31, 2024. In addition, the Company held other investments of ~~$2.1~~approximately $1.1 million ~~accounted~~and held-to-maturity debt investments, net of allowance for ~~under~~credit losses, of $843,000.

The cost basis of investments is adjusted for amortization of premium or accretion of discount on debt securities held or the ~~cost method~~recharacterization of ~~accounting and an investment of approximately $3.3 million accounted for under the equity method of accounting.~~

Investments in securities classified as trading are reflected as current assets on the Consolidated Balance Sheets at their fair value. Unrealized holding gains and losses on trading securities are included in earnings in the Consolidated Statements of Operations.

Investments in securities classified as available-for-sale, which may not be readily marketable, are reflected as non-current assets on the Consolidated Balance Sheets at their fair value. Unrealized holding gains and losses on available-for-sale securities are excludeddistributions from ~~earnings and reported in other comprehensive income as a separate component of shareholders’ equity until realized.~~

~~Other investments consist of equity~~ investments in ~~entities over which the Company is unable to exercise~~partnerships.

Concentrations of Credit Risk

A significant ~~influence and which do not have readily determinable fair values. These investments are accounted for under the cost method of accounting and evaluated periodically for impairment.~~

The Company considers many factors in determining impairment, including the severity and duration of the decline in value below cost, the Company’s interest and ability to hold the security for a period of time sufficient for an anticipated recovery in value, and the financial condition and specific events related to the issuer. When an impairment of a security is determined to be other than temporary, the impairment is recognized as a loss in the Company’s earnings.

Investments classified as equity method consist of investments in companies in which the Company is able to exercise significant influence but not control. Under the equity method of accounting, the investment is initially recorded at cost, then the Company’s proportional share of investee’s underlying net income or loss is recorded as a component of “other income” with a corresponding increase or decrease to the carrying value of the investment. Distributions received from the investee reduce the Company’s carrying value of the investment. These investments are evaluated for impairment if events or circumstances arise that indicate that the carrying amount of such assets may not be recoverable.

The Company records security transactions on trade date. Realized gains (losses) from security transactions are calculated on the first-in/first-out cost basis, unless otherwise identifiable, and are recorded in earnings on the date of sale.

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~~The following details the components~~portion of the Company’s investments ~~recorded~~carried at fair value on a recurring basis is investments in USGIF, which were $10.9 million and $12.4 million as of ~~December~~March 31, ~~2017,~~2024, and June 30, ~~2017.~~

December 31, 2017
(dollars in thousands) Cost Gains (Losses) Fair Value
Trading securities¹

Mutual funds - Fixed income $ 7,035 $ 26 $ - $ 7,061
Mutual funds - Domestic equity 535 - (163 ) 372
Other 45 - (45 ) -
Offshore fund - - - -
Total trading securities 7,615 26 (208 ) 7,433
Available-for-sale securities²

Common stock - Domestic - - - -
Common stock - International 2,554 16,704 - 19,258
Corporate debt³
1,071 632 - 1,703
Mutual funds - Fixed income 1,000 - (5 ) 995
Mutual funds - Domestic equity 394 22 - 416
Other - - - -
Total available-for-sale securities⁴
5,019 17,358 (5 ) 22,372
Total securities at fair value $ 12,634 $ 17,384 $ (213 ) $ 29,805

June 30, 2017
(dollars in thousands) Cost Gains (Losses) Fair Value
Trading securities¹

Mutual funds - Fixed income $ 8,884 $ 50 $ (7 ) $ 8,927
Mutual funds - Domestic equity 535 - (157 ) 378
Other 45 - (45 ) -
Offshore fund 1,184 - (769 ) 415
Total trading securities 10,648 50 (978 ) 9,720

Available-for-sale securities²

Common stock - Domestic 109 4 - 113
Common stock - International 191 12 - 203
Corporate debt³
1,042 427 - 1,469
Mutual funds - Fixed income 1,148 1 (5 ) 1,144
Mutual funds - Domestic equity 394 12 - 406
Other 56 10 - 66
Total available-for-sale securities⁴
2,940 466 (5 ) 3,401
Total securities at fair value $ 13,588 $ 516 $ (983 ) $ 13,121

¹ ~~Unrealized and realized gains and losses on trading securities are included in earnings in the statement of operations.~~
² ~~Unrealized gains and losses on available-for-sale securities are excluded from earnings and recorded in other comprehensive income as a separate component of shareholders’ equity until realized.~~
³ ~~Corporate debt matures in 2024.~~
⁴
~~Net unrealized gains (losses) on available-for-sale securities gross and net of tax as of December 31, 2017, are $17,353~~ ~~and $13,847, respectively, and as of June 30, 2017, are $461 and $461, respectively.~~

~~On December~~2023, respectively, and investments in HIVE Digital Technologies Ltd. (“HIVE”), which were convertible debentures valued at $5.2 million at March 31, ~~2017,~~2024, and convertible debentures and common share purchase warrants valued at $7.3 million at June 30, 2023. For these investments, the maximum amount of loss due to credit risk the Company ~~had $8.8 million at fair value invested in USGIF. These investments were included in~~could incur is the ~~Consolidated Balance Sheets and the table above as “trading securities” and “available-for-sale securities.”~~

Investment income can be volatile and varies depending on market fluctuations, the Company’s ability to participate in investment opportunities, and timing of transactions. The Company expects that gains and losses will continue to fluctuate in the future.

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~~Investment income (loss) from the Company’s investments includes:~~

•	~~realized gains and losses on sales of securities;~~

•	~~unrealized gains and losses on trading securities;~~

•	~~realized foreign currency gains and losses;~~

•	~~other-than-temporary impairments on available-for-sale securities;~~

•	~~other-than-temporary impairments on held-at-cost securities; and~~

•	~~dividend and interest income.~~

~~The following summarizes investment income (loss) reflected in earnings for the periods discussed:~~

Six Months Ended Three Months Ended
(dollars in thousands) December 31, December 31,
Investment Income 2017 2016 2017 2016
Realized gains on sales of available-for-sale securities $ 31 $ 31 $ 24 $ 31
Realized losses on sales of trading securities (736 ) - (82 ) -
Unrealized gains (losses) on trading securities 746 (26 ) 60 (125 )
Realized foreign currency gains (losses) (19 ) (5 ) 3 (7 )
Other-than-temporary declines in available-for-sale securities - (16 ) - -
Dividend and interest income 430 518 238 350
Total Investment Income $ 452 $ 502 $ 243 $ 249

Included in investment income were other-than temporary declines in value on available-for-sale securities of approximately $16,000 for the six months ended December 31, 2016. There were no impairment losses for the three and six months ended December 31, 2017, or the three months ended December 31, 2016. During the six months ended December 31, 2016, impairment losses resulted from fair values of securities being lower than book value, and two securities with a combined cost basis of $98,000 were written down to a combined fair value of ~~$82,000. In making these determinations,~~ the ~~Company considered the length of time and extent to which the fair value has been less than cost basis,~~ financial ~~condition and prospects of the issuers and the Company’s ability to hold the investment until recovery.~~

~~Unrealized Losses~~

The following tables show the gross unrealized losses and fair values of available-for-sale investment securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. ~~The Company reviewed the gross unrealized losses shown as of~~ ~~December~~ ~~31, 2017, and determined that the losses were not other-than-temporary based on consideration of the nature of the investment and the cause, severity and duration of the loss.~~

December 31, 2017
Less Than 12 Months 12 Months or Greater Total

Gross
Unrealized

Gross
Unrealized

Gross
Unrealized

(dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses
Available-for-sale securities
Common stock - Domestic $ - $ - $ - $ - $ - $ -
Common stock - International - - - - - -
Corporate debt - - - - - -
Mutual funds - Fixed income 995 (5 ) - - 995 (5 )
Mutual funds - Domestic equity - - - - - -
Other - - - - - -
Total available-for-sale securities $ 995 $ (5 ) $ - $ - $ 995 $ (5 )

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June 30, 2017
Less Than 12 Months 12 Months or Greater Total

Gross
Unrealized

Gross
Unrealized

Gross
Unrealized

(dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses
Available-for-sale securities
Common stock - Domestic $ - $ - $ - $ - $ - $ -
Common stock - International - - - - - -
Corporate debt - - - - - -
Mutual funds - Fixed income - - 95 (5 ) 95 (5 )
Mutual funds - Domestic equity - - - - - -
Other - - - - - -
Total available-for-sale securities $ - $ - $ 95 $ (5 ) $ 95 $ (5 )

instruments.

Fair Value Hierarchy

~~ASC 820,~~

Fair ~~Value Measurement and Disclosures, defines fair~~ value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ~~ASC 820 establishes a hierarchy that prioritizes inputs to~~The valuation techniques described below maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value.

The inputs used ~~to measure fair value and requires companies to disclose the fair value of their~~for measuring financial instruments according to a fair value hierarchy (i.e., Levels 1, 2, and 3 inputs, as defined below). The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

~~Financial instruments measured and reported~~ at fair value are ~~classified and disclosed~~summarized in ~~one of~~ the ~~following categories:~~

three broad levels listed below:

Level 1 – ~~Valuations based on~~Inputs represent unadjusted quoted prices ~~in active markets~~ for identical assets exchanged in active markets.

Level 2 – Inputs include directly or ~~liabilities at the reporting date. Since valuations are based on~~indirectly observable inputs (other than Level 1 inputs) such as quoted prices ~~that are readily and regularly available~~for similar assets exchanged in an active ~~market, value of these products does not entail a significant degree of judgment.~~

~~Level 2 – Valuations based on~~or inactive markets; quoted prices for identical assets exchanged in ~~markets for which not all significant~~inactive markets; other inputs ~~are observable, directly or indirectly. Corporate debt securities valued~~that may be considered in ~~accordance with~~fair value determinations of the ~~evaluated price supplied by an independent service are categorized~~assets, such as ~~Level 2 in the hierarchy. Other securities categorized as Level 2 include securities valued at the mean between the last reported bid~~interest rates and ~~ask quotation~~yield curves; and ~~securities valued with an adjustment to the quoted price due to restrictions.~~

~~Level 3 – Valuations based on~~ inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Inputs include unobservable inputs used in the measurement of assets. The Company is required to use its own assumptions regarding unobservable inputs because there is little, if any, market activity in the assets and ~~significant~~it may be unable to corroborate the ~~fair value measurement.~~

related observable inputs. Unobservable inputs require management to make certain projections and assumptions about the information that would be used by market participants in valuing assets.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with ~~the~~ investing in those securities. Because of the inherent uncertainties of valuation, the values reflected may materially differ from the values received upon actual sale of those investments.

The Company has established a Proprietary Valuation Committee (the “Committee”) to administer and oversee the Company’s valuation policies and procedures, which are approved by the Board of Directors, and to perform a periodic review of valuations provided by independent pricing services.

For actively traded securities, the Company values investments using the closing price of the securities on the exchange or market on which the securities principally trade. If the security is not traded on the last business day of the quarter, it is generally valued at the mean between the last bid and ask quotation. The fair value of a security that has a restriction is based on the quoted price for an otherwise identical unrestricted instrument that trades in a public market, adjusted for the estimated effect of the restriction. Mutual funds, which include open- and closed-end funds ~~exchange-traded funds,~~ and ~~offshore~~exchange-traded funds, are valued at net asset value or closing price, as applicable. ~~Certain corporate debt securities~~

For common share purchase warrants not traded on an exchange, the estimated fair value is determined using the Black-Scholes option-pricing model. This sophisticated model utilizes a number of assumptions in arriving at its results, including the estimated life, the risk-free interest rate, and historical volatility of the underlying common stock. The Company may bechange the assumption of the risk-free interest rate and utilize the yield curve for instruments with similar characteristics, such as credit ratings and jurisdiction, or change the expected volatility. The effects of changing any of the assumptions or factors employed by the Black-Scholes model may result in a significantly different valuation.

Certain convertible debt securities not traded on an exchange are valued by an independent ~~pricing service~~third party using ~~an evaluated quote~~a binomial lattice model based on factors such ~~factors~~ as ~~institutional-size trading in similar groups of securities,~~ yield, quality, maturity, coupon rate, type of issuance, ~~and~~ individual trading characteristics of the underlying common shares and other market data. ~~As part~~The model utilizes a number of assumptions in arriving at its ~~independent price verification process,~~results. The effects of changing any of the ~~Company periodically reviews~~assumptions or factors utilized in the binomial lattice model, including expected volatility, credit adjusted discount rates, and discounts for lack of marketability, may result in a significantly different valuation for the securities.

For other securities included in the fair value ~~provided by~~hierarchy with unobservable inputs, the pricing service using information such as transactions in these investments, broker quotes, market transactions in comparable investments, general market conditions and the issuer’s financial condition. Certain debt securities may be valued based on review of similarly structured issuances in similar jurisdictions, when possible, or based on other traded debt securities issued by the issuer. The Company also takes into consideration numerous other factors that could affect valuation such as overall market conditions, liquidity of the security and bond structure. Securities for which market quotations are not readily available are valued at their fair value as determined by the portfolio management team. The portfolio management team includes representatives from the investment, accounting and legal/compliance departments. The portfolio management team meets periodically to considerCommittee considers a number of factors in determining a security’s fair value, including the security’s trading volume, market values of similar class issuances, investment personnel’s judgment regarding the market experience of the issuer, financial status of the issuer, the issuer’s management, and back testing, as appropriate. The fair values may differ from what may have been used had a broader market for these securities existed. The ~~portfolio management team~~Committee reviews inputs and assumptions and reports material items to the ~~board~~Board of ~~directors.~~

Directors. Securities which do not have readily determinable fair values are also periodically reviewed by the Committee.

Page 10

The following ~~presents fair value measurements, as of December 31, 2017, and June 30, 2017, for~~tables summarize the major categories of ~~U.S. Global’s~~ investments ~~measured~~with fair values adjusted on a recurring basis as of March 31, 2024, and June 30, 2023, and other investments with fair values adjusted on a nonrecurring basis, with fair values shown according to the fair value hierarchy.

	*March 31, 2024*
			*Significant*		*Significant*
	*Quoted*		*Other*		*Unobservable*
	*Prices*		*Inputs*		*Inputs*
(dollars in thousands)	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
Investments carried at fair value on a recurring basis:
Investments in trading securities:
Equity securities:
Equities - International	$	411	$	-	$	-	$	411
Mutual funds - Fixed income		10,071		-		-		10,071
Mutual funds - Global equity		829		-		-		829
Total equity securities		11,311		-		-		11,311
Debt securities:
Corporate debt securities		195		-		-		195
Total investments in trading securities:		11,506		-		-		11,506
Investments in available-for-sale debt securities:
Corporate debt securities - Convertible debentures		-		-		5,190		5,190
Total investments carried at fair value on a recurring basis:	$	11,506	$	-	$	5,190	$	16,696
Investments carried at fair value on a nonrecurring basis:
Other investments ⁽¹⁾	$	-	$	-	$	600	$	600

^1.

Other investments include equity securities without readily determinable fair values that were adjusted as a result of the measurement alternative on dates during the nine months ended March 31, 2024. These securities are classified as level 3 due to the infrequency of the observable price changes and/or restrictions on the shares.

	*June 30, 2023*
			*Significant*		*Significant*
	*Quoted*		*Other*		*Unobservable*
	*Prices*		*Inputs*		*Inputs*
(dollars in thousands)	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
Investments carried at fair value on a recurring basis:
Investments in trading securities:
Equity securities:
Equities - International	$	488	$	-	$	290	$	778
Mutual funds - Fixed income		11,642		-		-		11,642
Mutual funds - Global equity		785		-		-		785
Total equity securities		12,915		-		290		13,205
Debt securities:
Corporate debt securities		-		-		-		-
Total investments in trading securities:		12,915		-		290		13,205
Investments in available-for-sale debt securities:
Corporate debt securities - Convertible debentures		-		-		7,008		7,008
Total investments carried at fair value on a recurring basis:	$	12,915	$	-	$	7,298	$	20,213
Investments carried at fair value on a nonrecurring basis:
Other investments ⁽¹⁾	$	-	$	-	$	1,786	$	1,786

^1.

Other investments include equity securities without readily determinable fair values that were adjusted as a result of the measurement alternative on dates during the fiscal year ended June 30, 2023. These securities are classified as level 3 due to the infrequency of the observable price changes and/or restrictions on the shares.

The securities classified as Level 3 and carried at fair value on a recurring ~~basis:~~

As of December 31, 2017, approximately 30 percent of the Company’s financial assets measured at fair value were classified as Level 1 and 70 percent of the Company’s financial assets measured at fair value were classified as Level 2. As of June 30, 2017, 100 percent of the Company’s financial assets were classifiedbasis in the ~~fair value hierarchy as Level 1. The Company recognizes transfers between levels at the end~~preceding tables are investments in convertible securities of ~~each quarter.~~

~~During the quarter ended September 30, 2017, the Company invested in 10 million common shares of~~ HIVE, ~~Blockchain Technologies Ltd. (“HIVE”),~~ a company that is headquartered ~~and traded~~ in Canada with cryptocurrency mining facilities in Iceland, Sweden, and ~~Sweden,~~Canada. The Company purchased convertible securities for $15.0 million in January 2021. The convertible securities were comprised of 8.0% interest-bearing unsecured convertible debentures, payable in quarterly installments with a final maturity in January 2026, and 5 million common share purchase warrants in the capital of HIVE. Under the original terms, the principal amount of each debenture was convertible into common shares in the capital of HIVE at a ~~cost~~conversion rate of ~~$2.4 million. The shares held by~~$2.34, and each whole warrant, which expired in January 2024, entitled the Company ~~are restricted for resale until mid-March 2018 and are also subject~~ to ~~Canadian insider regulations. The original restriction on~~acquire one common share at a price of $3.00 (Canadian). Under the shares until January 2018 was extended to mid-March 2018 to facilitate additional share offerings by HIVE. The investment, classified as available-for-sale, was valued at approximately $19.1 million at December 31, 2017, based oncurrent terms, which reflect a reverse stock split, the ~~quoted market price adjusted for the restriction on resale and~~principal amount of each debenture is ~~classified as Level 2~~convertible into common shares in the ~~fair value hierarchy.~~capital of HIVE at a conversion rate of $11.70, and each five whole warrants entitled the Company to acquire one common share at a price of $15.00 (Canadian). The remaining principal amount was $5.3 million as of March 31, 2024. Cryptocurrency markets and related ~~stocks~~securities have been, and are expected to continue to be, volatile. ~~Cryptocurrency mining is considered an early stage high-risk industry, and the nature of mining is expected to evolve.~~ There ~~is potential for~~has been significant volatility in the market price of HIVE, which ~~could~~has materially ~~impact~~impacted the ~~investment’s~~ value of the investments included on the ~~balance sheet~~Consolidated Balance Sheets, unrealized gain (loss) recognized in net investment income (loss), and unrealized gain (loss) recognized in other comprehensive ~~income. A unit trust investment fund managed by Galileo, described below under~~ ~~Investment Classified as Equity Method,~~ ~~also holds common shares of HIVE.~~income (loss). The ~~Company had a direct~~investments did not represent ownership ofin HIVE ~~of approximately 3.3 percent~~ as of ~~December~~March 31, ~~2017, and a combined direct and indirect ownership of HIVE of approximately 4.0 percent as of December 31, 2017.~~2024, or June 30, 2023. The securities are subject to Canadian securities regulations. Frank Holmes isserves on the ~~non-executive~~board as executive chairman of HIVE and held shares and options at ~~December~~March 31, ~~2017.~~2024. From August 2018 through January 2023, Mr. Holmes was Interim CEO of HIVE.

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The Company ~~has available-for-sale investments in corporate debt securities maturing in 2024 which were valued~~recorded the debentures at ~~$1.7~~the estimated fair value of $16.0 million ~~as of December 31, 2017, based~~ on ~~the mean between the last reported bid/ask quotation and were classified as Level 2. As of June 30, 2017, these securities were valued at $1.5 million based on a quoted price on the reporting~~purchase date, and ~~were classified as Level 1.~~

~~The Company had~~ an unrealized gain of $6.9 million was recognized in other comprehensive income (loss), which will be realized in net investment ~~in an affiliated offshore fund, classified as trading, which invested in companies in~~income (loss) ratably using the ~~energy and natural resources sectors.~~effective interest method until maturity, conversion, or other disposition. The fair value of ~~this investment~~the debentures was $5.2 million and $7.0 million at March 31, 2024, and June 30, 2023, respectively. The warrants were recorded at the estimated ~~based~~fair value of $5.9 million on the purchase date, and upon expiration in January 2024, a realized loss of $5.9 million was recognized in net ~~asset~~investment income (loss). The fair value ~~per share~~of the warrants was $290,000 at ~~$415,000~~June 30, 2023.

The Company utilizes an independent third-party to estimate the fair values of the HIVE convertible securities and currently considers the fair value measurements to contain Level 3 inputs. The following table is a reconciliation of investments recorded at fair value for which unobservable inputs (Level 3) were used in determining fair value during the nine months ended March 31, 2024.

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

	*Nine Months Ended March 31, 2024*
	*Investments in*			*Investments in*
(dollars in thousands)	*equity securities*			*debt securities*
Beginning Balance	$	290		$	7,008
Principal repayments		-			(2,250	)
Amortization of day one premium		-			(137	)
Accretion of bifurcation discount		-			403
Total gains or losses included in:
Net Investment Income (Loss)		(290	)		821
Other Comprehensive Income (Loss)		-			(655	)
Ending Balance	$	-		$	5,190

The following is quantitative information as of March 31, 2024, with respect to the securities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3).

	*March 31, 2024*
(dollars in thousands)	*Fair Value*		*Principal Valuation Techniques*	*Unobservable Inputs*
Investments in available-for-sale debt securities:
Corporate debt securities - Convertible debentures	$	5,190	Binomial lattice model	Volatility	110.0	%
				Credit Spread	7.00	%
				Risk-Free Rate	4.28	%

Investments in Trading Securities at Fair Value

Investments in trading securities with readily determinable fair values are carried at fair value, and changes in unrealized gains or losses are reported in the current period's earnings. The following details the components of the Company’s trading securities carried at fair value as of March 31, 2024, and June 30, ~~2017. This offshore fund liquidated during~~2023.

	*March 31, 2024*
(dollars in thousands)	*Cost*		*Unrealized Gains (Losses)*			*Fair Value*
Trading securities at fair value
Equity securities:
Equities - International	$	746	$	(335	)	$	411
Equities - Domestic		45		(45	)		-
Mutual funds - Fixed income		10,280		(209	)		10,071
Mutual funds - Global equity		929		(100	)		829
Total equity securities		12,000		(689	)		11,311
Debt securities:
Corporate debt securities		215		(20	)		195
Total trading securities at fair value	$	12,215	$	(709	)	$	11,506

	*June 30, 2023*
(dollars in thousands)	*Cost*		*Unrealized Gains (Losses)*			*Fair Value*
Trading securities at fair value
Equity securities:
Equities - International	$	6,679	$	(5,901	)	$	778
Equities - Domestic		45		(45	)		-
Mutual funds - Fixed income		11,947		(305	)		11,642
Mutual funds - Global equity		930		(145	)		785
Total equity securities		19,601		(6,396	)		13,205
Debt securities:
Corporate debt securities		-		-			-
Total trading securities at fair value	$	19,601	$	(6,396	)	$	13,205

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Debt Investments

Investments in debt securities are classified on the ~~current fiscal year,~~acquisition dates and at each balance sheet date. Securities classified as held-to-maturity are carried at amortized cost, net of allowance for credit losses, reflecting the ability and intent to hold the securities to maturity. Debt securities classified as trading are acquired with ~~partial liquidation proceeds received~~the intent to sell in the ~~quarter ended September 30, 2017,~~near term and ~~final proceeds received during~~are carried at fair value with changes reported in earnings. All other debt securities are classified as available-for-sale and are carried at fair value.

Investment gains and losses on available-for-sale debt securities are recorded when the ~~quarter ended December 31, 2017.~~

~~Investment Classified~~securities are sold, as ~~Equity Method~~

~~During~~determined on a specific identification basis, and recognized in current period earnings. Changes in unrealized gains on available-for-sale debt securities are reported net of tax in accumulated other comprehensive income (loss). For debt securities in an unrealized loss position, a loss in earnings is recognized for the ~~quarter ended September 30, 2017,~~excess of amortized cost over fair value if the Company intends to sell before the price recovers. Otherwise, the Company evaluates as of the balance sheet date whether the unrealized losses are attributable to credit losses or other factors. The severity of the decline in value, creditworthiness of the issuer and other relevant factors are considered. The portion of unrealized loss the Company believes is related to a credit loss is recognized in earnings, and the portion of unrealized loss the Company believes is not related to a credit loss is recognized in other comprehensive income (loss).

Certain derivatives embedded in other financial instruments, such as the conversion option in a convertible bond, are reported at fair value, and changes in fair value are recorded through ~~USCAN, invested approximately $500,000~~earnings within net investment income (loss). The host contract continues to be accounted for in accordance with the appropriate accounting standard. The embedded derivative and the related host contract represent one legal contract and are combined on the Consolidated Balance Sheets and the tables below. The Company held one financial instrument classified as available-for-sale containing an embedded derivative, which represents an investment in HIVE, at March 31, 2024, and June 30, 2023. As of March 31, 2024, the unrealized loss position in the ~~Galileo Partners Fund, a Canadian unit trust investment fund managed~~available-for-sale security was related to changes in the fair value of the embedded derivatives and not the result of credit losses; therefore, an allowance for credit losses was not recorded.

The following details the components of the Company’s available-for-sale debt investments as of March 31, 2024, and June 30, 2023.

	*March 31, 2024*
(dollars in thousands)	*Amortized Cost*		*Gross Unrealized Gains in Other Comprehensive Income (Loss)*		*Gross Unrealized Losses in Other Comprehensive Income (Loss)*		Gross Unrealized Losses in Net Investment Income (Loss) ⁽¹⁾			*Fair Value*		*Allowance for Credit Losses*
Available-for-sale debt securities:
Corporate debt securities - Convertible debentures	$	6,651	$	1,052	$	-	$	(2,513	)	$	5,190	$	-

	*June 30, 2023*
(dollars in thousands)	*Amortized Cost*		*Gross Unrealized Gains in Other Comprehensive Income (Loss)*		*Gross Unrealized Losses in Other Comprehensive Income (Loss)*		Gross Unrealized Losses in Net Investment Income (Loss)⁽¹⁾			*Fair Value*		*Allowance for Credit Losses*
Available-for-sale debt securities:
Corporate debt securities - Convertible debentures	$	7,729	$	1,707	$	-	$	(2,428	)	$	7,008	$	-

1.	Represents changes in unrealized gains and losses related to embedded derivatives included within net investment income (loss) on the Consolidated Statements of Operations.

The following table summarizes the fair values of embedded derivatives on the Consolidated Balance Sheets, categorized by ~~Galileo. This fund’s primary investment is in HIVE,~~risk exposure, at March 31, 2024, and June 30, 2023.

	*March 31, 2024*		*June 30, 2023*
	*Other Assets*		*Other Assets*
	*Investments in*		*Investments in*
	*available-for-sale*		*available-for-sale*
(dollars in thousands)	*debt securities*		*debt securities*
Embedded Derivatives:
Equity price risk exposure	$	29	$	114

The following table presents the ~~same company described above that~~effect of embedded derivatives on the Consolidated Statements of Operations, categorized by risk exposure, for the three and nine months ended March 31, 2024, and 2023.

Nine Months Ended

Three Months Ended

March 31,

2024

2023

2024

2023

Other Income (Loss)

(dollars in thousands)

Net Investment Income (Loss)

Embedded Derivatives:

Equity price risk exposure

(85

)

(22

)

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At March 31, 2024, and June 30, 2023, the Company held one debt security classified as held-to-maturity. The security had an estimated fair value that was lower than the carrying value by $157,000 at March 31, 2024, and $232,000 at June 30, 2023. The security has ~~also invested~~been in ~~directly;~~a continuous unrealized loss position for over twelve months. We have evaluated the ~~fund held 6.5 million common shares~~unrealized loss on the security at March 31, 2024, and determined it to be of ~~HIVE~~a temporary nature and caused by fluctuations in market interest rates, not by concerns regarding the ability of the issuer to meet their obligations.

The following details the components of the Company’s held-to-maturity debt investments as of ~~December~~March 31, ~~2017. This concentration may result in volatility~~2024, and June 30, 2023.

	*March 31, 2024*
(dollars in thousands)	*Amortized Cost*		*Gross Unrecognized Holding Gains*		*Gross Unrecognized Holding Losses*			*Fair Value*		*Allowance for Credit Losses*
Held-to-maturity debt securities⁽¹⁾:
Corporate debt securities	$	1,000	$	-	$	(157	)	$	843	$	157

	*June 30, 2023*
(dollars in thousands)	*Amortized Cost*		*Gross Unrecognized Holding Gains*		*Gross Unrecognized Holding Losses*			*Fair Value*		*Allowance for Credit Losses*
Held-to-maturity debt securities⁽¹⁾:
Corporate debt securities	$	1,000	$	-	$	(232	)	$	768	$	-

1.	Held-to-maturity debt investments are carried at amortized cost, net of allowance for credit losses, and the fair value is classified as Level 2 according to the fair value hierarchy.

On July 1, 2023, the Company adopted ASU 2016-13, which replaced the incurred loss methodology for determining our allowance for credit losses and related provision for credit losses with an expected loss methodology that is referred to as the Current Expected Credit Losses ("CECL") model. CECL is a significant accounting estimate used in the ~~valuation~~preparation of the ~~Galileo Partners Fund.~~ Company's Consolidated Financial Statements. Upon adoption of ASU 2016-13, the Company replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. CECL is a valuation account that is deducted from the amortized cost basis of held-to-maturity debt securities to present the net amount expected to be collected on the securities. Held-to-maturity debt securities, or portions thereof, are charged against the allowance when they are deemed uncollectible. Arriving at an appropriate level of credit losses involves a high degree of judgment. While management uses available information to recognize losses, changing economic conditions and the economic prospects of the issuers may necessitate future additions or reductions to the allowance.

The Company ~~owns approximately 30 percent~~monitors the credit quality of ~~Galileo Partners Fund~~debt securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and isare utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the ~~ability~~Company utilizes other financial information indicating the financial health of the underlying organization. As of March 31, 2024, and June 30, 2023, the held-to-maturity debt investment held by the Company did not have a credit rating.

Since the held-to-maturity debt security does not have a credit rating, management has determined that the discounted cash flow method provides the best basis for its assessment and determination of expected credit losses. The Company has elected to reflect the change in the allowance solely attributable to the passage of time in interest income. Changes attributable to the passage of time are those solely due to changes in the present value of the expected cash flows as the instrument approaches maturity rather than expectations of cash flow timing or amounts. Since the adoption of ASU 2016-13 on July 1, 2023, and through March 31, 2024, the allowance for credit losses decreased $75,000 which was attributable to the passage of time. For the three and nine months ended March 31, 2024, $20,000 and $75,000, respectively, was included as an increase in interest income within net investment income (loss) on the Consolidated Statements of Operations.

The following table presents the activity in the allowance for credit losses for the held-to-maturity debt investment. There was no allowance at June 30, 2023.

(dollars in thousands)	*March 31, 2024*
Beginning Balance, prior to adoption of ASU 2016-13	$	-
Impact of ASU 2016-13 adoption		232
Provision for credit losses - reversal ⁽¹⁾		(75	)
Ending Balance	$	157

1.	Represents the change in present value attributable to the passage of time included in interest income.

The following summarizes the net carrying amount and estimated fair value of debt securities at March 31, 2024, by contractual maturity dates. Actual maturities may differ from final contractual maturities due to principal repayment installments or prepayment rights held by issuers.

	*March 31, 2024*
	*Available-for-sale*		*Held-to-maturity*
	*debt securities*		*debt securities*
	*Convertible*		*Due after one year*
(dollars in thousands)	debentures ⁽¹⁾		*through five years*
Amortized Cost	$	6,651	$	1,000
Fair Value	$	5,190	$	843

1.	Principal payments of $750,000 are due quarterly with a final maturity date in January 2026.

As of March 31, 2024, none of the Company's investments in debt securities were delinquent or in a non-accrual status.

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Other Investments

Other investments consist of equity investments in entities over which the Company is unable to exercise significant ~~influence. Thus,~~influence and which do not have readily determinable fair values. For these securities, the Company generally elects to value using the measurement alternative, under which such securities are measured at cost, less impairment, if any. If the Company identifies observable price changes for identical or similar securities of the same issuer, the equity security is measured at fair value as of the date the observable transaction occurred, with such changes recorded in net investment ~~is accounted for~~income (loss).

The carrying value of equity securities without readily determinable fair values was approximately $2.4 million as of June 30, 2023. The following table presents the carrying value of equity securities without readily determinable fair values held as of March 31, 2024, and 2023, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes or impairments. These securities are included in the nonrecurring fair value hierarchy tables when applicable price changes are observable, or when impairments occur.

	*Nine Months Ended*						*Three Months Ended*
	*March 31,*						*March 31,*
(dollars in thousands)	*2024*			*2023*			*2024*			*2023*
Other Investments
Carrying value	$	1,114		$	2,827		$	1,114		$	2,827
Upward carrying value changes	$	-		$	14		$	-		$	9
Downward carrying value changes/impairment	$	(1,274	)	$	(1,841	)	$	(499	)	$	-

The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes. The cumulative amount of upward adjustments to all equity ~~method~~securities without readily determinable fair values total $2.5 million since their respective acquisitions through March 31, 2024. The cumulative amount of ~~accounting. Under~~impairments and other downward adjustments, which include return of capital distributions and observable price changes, to all equity securities without readily determinable fair values total $5.0 million since their respective acquisitions through March 31, 2024.

The Company has an investment in The Sonar Company (“Sonar”), a company headquartered in the ~~equity method,~~United States, at a cost of $175,000. The investment had a carrying value of approximately $362,000 at March 31, 2024, and at June 30, 2023. Roy D. Terracina, Director and Vice Chairman of the Board of Directors for U.S. Global, has served as the CEO of Sonar since July 2021, and the Company’s ~~proportional share~~ownership of Sonar was approximately 2.8 percent as of March 31, 2024.

Net Investment Income (Loss)

Net investment income (loss) from the ~~fund’s~~Company’s investments includes:

	●	realized gains and losses on sales of securities;
	●	realized gains and losses on principal payment proceeds;
	●	unrealized gains and losses on securities at fair value;
	●	impairments and observable price changes on equity investments without readily determinable fair values;
	●	dividend and interest income; and
	●	realized foreign currency gains and losses.

The following summarizes net investment income ~~or loss, which primarily consists~~(loss) reflected in earnings for the periods presented.

	*Nine Months Ended*						*Three Months Ended*
(dollars in thousands)	*March 31,*						*March 31,*
Net Investment Income (Loss)	*2024*			*2023*			*2024*			*2023*
Realized gains (losses) on equity securities	$	(6,834	)	$	(13	)	$	(6,094	)	$	(13	)
Realized gains (losses) on debt securities		906			1,299			267			394
Unrealized gains (losses) on equity securities		5,699			(2,586	)		5,863			283
Unrealized gains (losses) on debt securities		(20	)		-			(65	)		-
Unrealized gains (losses) on embedded derivatives		(85	)		82			(22	)		55
Unrealized gains (losses) on cash equivalents		(2	)		-			-			-
Dividend and interest income		1,781			1,321			595			421
Realized foreign currency gains (losses)		(82	)		(292	)		(84	)		15
Total Net Investment Income (Loss)	$	1,363		$	(189	)	$	460		$	1,155

Realized gains on debt securities reclassified from other comprehensive income (loss) related to the Company's investment in HIVE debentures were $267,000 and $906,000 for the three and nine months ended March 31, 2024, respectively, and $394,000 and $1.3 million for the three and nine months ended March 31, 2023, respectively.

Page 15

Table of ~~realized and~~Contents

The following table presents unrealized gains and losses recognized during the three and nine months ended March 31, 2024, and 2023, on ~~investments offset by fund expenses, is recognized~~equity securities and debt securities classified as trading still held at each respective date.

	*Nine Months Ended*						*Three Months Ended*
	*March 31,*						*March 31,*
(dollars in thousands)	*2024*			*2023*			*2024*			*2023*
Unrealized gains and losses for securities held at the reporting date:
Equity securities:
Net gains and losses recognized during the period	$	(1,135	)		(2,599	)	$	(231	)	$	270
Less: Net gains and losses recognized during the period on securities sold during the period		(256	)		(13	)		(3	)		(13	)
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date⁽¹⁾	$	(879	)	$	(2,586	)	$	(228	)	$	283
Debt securities classified as trading:
Net gains and losses recognized during the period	$	(20	)		-		$	(65	)	$	-
Less: Net gains and losses recognized during the period on securities sold during the period		-			-			-			-
Unrealized gains and losses recognized during the reporting period on securities still held at the reporting date	$	(20	)	$	-		$	(65	)	$	-

^1.

Includes net unrealized and realized losses as a result of the measurement alternative of $240,000 and $1.0 million for the three and nine months ended March 31, 2024, respectively, and $0 and $1.8 million, for the three and nine months ended March 31, 2023, respectively.

Net investment income (loss) can be volatile and vary depending on market fluctuations, the Company’s ability to participate in investment opportunities, and the timing of transactions. The Company expects that gains and losses will continue to fluctuate in the Company’s earnings. Included in other income for the three and six months ending December 31, 2017, is $1.2 million and $2.7 million, respectively, of equity method income of Galileo Partners Fund. The Company’s investment in the fund was valued at approximately $3.3 million at December 31, 2017. Frank Holmes also directly held an investment in the fund as of December 31, 2017.future.

~~Summarized income statement information on the Galileo Partners Fund since the Company’s investment is as follows:~~

Galileo Partners Fund
Summary Financial Information
For the Period from August 31, 2017 (investment) to December 31, 2017
(dollars in thousands)
Realized gains on sales of investments $ 1,921
Unrealized gains on investments 9,612
Fund fees and expenses, including performance fees (2,810 )
Net income of fund $ 8,723

Company's share of income from equity method investment $ 2,731

~~Subsequent to December 31, 2017, the Company redeemed a portion of its investment in the Galileo Partners Fund. See Note 12, Subsequent Event, for further information.~~

NOTE 3.4. INVESTMENT MANAGEMENT AND OTHER FEES

The following table presents operating revenues disaggregated by performance obligation.

	*Nine Months Ended*						*Three Months Ended*
	*March 31,*						*March 31,*
(dollars in thousands)	*2024*			*2023*			*2024*			*2023*
ETF advisory fees	$	7,394		$	10,360		$	2,224		$	3,142
USGIF advisory fees		1,408			1,693			443			558
USGIF performance fees received (paid)		(344	)		(390	)		(101	)		(109	)
Total Advisory Fees		8,458			11,663			2,566			3,591
USGIF administrative services fees		86			101			27			33
Total Operating Revenue	$	8,544		$	11,764		$	2,593		$	3,624

The Company serves as investment advisor to three U.S.-based exchange-traded funds (ETFs): U.S. Global Jets ETF (ticker JETS), U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), and U.S. Global Sea to Sky Cargo ETF (ticker SEA). The Company receives a unitary management fee of 0.60 percent of average net assets of the ETFs, and has agreed to bear all expenses of the ETFs, except the U.S. Global Sea to Sky Cargo ETF ("SEA"). The Company has agreed to contractually limit the expenses of SEA through April 2025. The aggregate fees waived, and expenses borne by the Company for SEA were $37,000 and $115,000 for the three and nine months ended March 31, 2024, respectively, and $28,000 and $77,000 and for the three and nine months ended March 31, 2023, respectively. The Company also serves as investment advisor to one European-based ETF, the U.S. Global Jets UCITS ETF. The Company receives a unitary management fee of 0.65 percent of average net assets and has agreed to bear all expenses of the ETF.

The Company serves as investment adviser to USGIF and receives a fee based on a specified percentage of ~~net~~average assets under management. The Company recorded base advisory fees from USGIF totaling $1.2 million and $2.3 million, respectively, for the three and six months ended December 31, 2017, compared with $1.2 million and $2.6 million, respectively, for the corresponding periods in the prior fiscal year.

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~~Table of Contents~~

The advisory agreement for the equity funds within USGIF provides for a base advisory fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months. For the three and six months ended December 31, 2017, the Company realized a decrease in its base advisory fees from USGIF of $192,000 and $308,000, respectively. For the three and six months ended December 31, 2016, the Company realized a (decrease) increase in its base advisory fees from USGIF of ($9,000) and $30,000, respectively.

The Company has agreed to contractually limit the expenses of the Near-Term Tax Free Fund and the Global Luxury Goods Fund through April ~~2018.~~ 2025. The Company has voluntarily waived or reduced its fees and/or agreed to pay expenses on the remaining USGIF funds. These caps will continue on a voluntary basis at the Company’s discretion. The aggregate fees waived and expenses borne by the Company for USGIF were $193,000 and $638,000 for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017, were $102,000~~2024, respectively, and ~~$334,000, respectively, compared with $313,000~~$299,000 and ~~$546,000, respectively,~~$822,000 for the ~~corresponding periods in the prior fiscal year.~~three and nine months ended March 31, 2023, respectively. Management cannot predict the impact of future waivers due to the number of variables and the range of potential outcomes.

The Company receives administrative service fees from USGIF based on an annual rate of 0.05 percent on the average daily net assets ~~at an annual rate 0.05 percent per investor class and 0.04 percent per institutional class~~ of each fund.

The Company also serves as investment advisor to two exchange-traded funds (ETFs). The U.S. Global Jets ETF commenced operations in April 2015, and U.S. Global GO GOLD and Precious Metal Miners ETF commenced operations in June 2017. The Company receives a unitary management fee of 0.60 percent of average net assets and has agreed to bear all expenses of the ETFs. The Company recorded ETF advisory fees totaling $184,000 and $369,000, respectively, for the three and six months ended December 31, 2017, compared with $76,000 and $142,000, respectively, for the corresponding periods in the prior fiscal year.

The Company provided advisory services for offshore clients and receives advisory fees based on the net asset values of the clients and performance fees, if any, based on the overall increase in net asset values. The Company recorded advisory fees from these clients of $2,000 and $3,000, respectively, for the three and six months ended December 31, 2017, compared with $32,000 and $68,000, respectively, for the corresponding periods in the prior fiscal year. ~~The Company recorded no performance fees from these clients for the three and six months ended December 31, 2017, and 2016.~~ ~~Frank Holmes, CEO, served as a director of the offshore clients. The offshore clients completed their respective liquidations in the second quarter of fiscal year 2018.~~

Galileo provides advisory services for clients in Canada and receives advisory fees based on the net asset values of the clients. Galileo recorded advisory fees from these clients totaling $287,000 and $505,000, respectively, for the three and six months ended December 31, 2017, compared with $303,000 and $603,000, respectively, for the corresponding periods in the prior fiscal year. Galileo may also receive performance fees from certain clients when market appreciation or realized net gains exceeds established benchmarks. Galileo recorded performance fees of $464,000 from these clients for three and six months ended December 31, 2017. The majority of the performance fees recorded in the current period are annual performance fees calculated at calendar year-end. Galileo recorded no performance fees for the three and six months ended December 31, 2016. Galileo may, at its discretion, waive and absorb some of its clients’ operating expenses. The amount of expenses waived and absorbed was $9,000 and $33,000 for the three and months ended December 31, 2017, and $9,000 and $21,000 for the three and months ended December 31, 2016, respectively. On September 29, 2017, Galileo launched its first ETF, U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOGO), on the Toronto Stock Exchange.

As of ~~December~~March 31, ~~2017,~~2024, the Company had ~~just over $1.0~~receivables from fund clients of $858,000, of which $738,000 was from the ETFs and $120,000 was from USGIF. As of June 30, 2023, the Company had $1.1 million in receivables from fund clients, of which ~~$381,000~~$1.0 million was from ~~USGIF, $605,000~~ETFs and $126,000 was from ~~Galileo clients and $63,000 from ETFs.~~

~~NOTE 4. NOTES RECEIVABLE~~

~~The Company has invested in notes receivable consisting of two promissory notes. One note with a principal amount of $2 million~~USGIF. There was entered into with an unrelated third party in June 2016 with a one-year maturity. As allowed by the agreement, in June 2017, the initial maturity was extended one-year to June 2018, and the Company received a $50,000 extension fee and all interest to date. The fee, which is included in Notes Receivable on the balance sheet, is amortized to interest income using the interest method over the remaining term of the note. The note bears interest at 12 percent, with 10 percent payable monthly and 2 percent payable at maturity. In case of prepayment, there would be a penalty for the amount of lost interest. The balance of this note was approximately $2.0 million at December 31, 2017, and June 30, 2017.

The other note of $234,000 is with an unrelated third party, has an annual interest rate of 15 percent and matures in 2021. Interest is paid monthly. Principal repayments are scheduled to start in February 2019. The balance of this note was $234,000 at December 31, 2017, and June 30, 2017.

~~The Company considered the credit quality of the other parties and determined that~~ no allowance for credit losses ~~is necessary.~~

related to receivables as of March 31, 2024, or June 30, 2023.

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As RESTRICTED AND UNRESTRICTED CASH

The Company maintains its cash deposits with established commercial banks. At times, balances may exceed federally insured limits. We have not experienced any losses in such accounts and do not believe that we are exposed to any significant credit risk associated with our cash deposits. Restricted cash represents cash invested in a money market account as collateral for credit facilities that is not available for general corporate use.

A reconciliation of ~~December~~cash, cash equivalents, and restricted cash reported from the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows is shown below.

(dollars in thousands)	*March 31, 2024*		*June 30, 2023*
Cash and cash equivalents	$	27,460	$	25,401
Restricted cash		1,000		1,000
Total cash, cash equivalents, and restricted cash	$	28,460	$	26,401

NOTE 6. LEASES

The Company has lease agreements for office equipment that expire in the fiscal year 2026. Lease expenses included in general and administrative expense on the Consolidated Statements of Operations totaled $33,000 and $99,000 for the three and nine months ended March 31, ~~2017,~~2024, respectively, and $32,000 and $86,000 for the three and nine months ended March 31, 2023, respectively.

The following table presents the components of lease cost.

	*Nine Months Ended*				*Three Months Ended*
	*March 31,*				*March 31,*
(dollars in thousands)	*2024*		*2023*		*2024*		*2023*
Finance lease cost:
Amortization of right-of-use assets	$	23	$	22	$	7	$	7
Interest on lease liabilities		2		3		1		1
Total finance lease cost		25		25		8		8
Short-term lease cost		76		64		26		25
Total lease cost	$	101	$	89	$	34	$	33

Supplemental information related to the Company's leases follows.

	*Nine Months Ended*				*Three Months Ended*
	*March 31,*				*March 31,*
(dollars in thousands)	*2024*		*2023*		*2024*		*2023*
Operating cash flows from financing leases included in lease liabilities	$	2	$	3	$	1	$	1
Financing cash flows from financing leases included in lease liabilities	$	22	$	20	$	7	$	7

Additional qualitative information concerning the Company’s leases follows.

	*March 31, 2024*			*June 30, 2023*
Weighted-average remaining lease term - financing leases (years)		1.50			2.25
Weighted-average discount rate - financing leases		4.75	%		4.75	%

The following table presents the maturities of lease liabilities as of March 31, 2024.

(dollars in thousands)
Fiscal Year	*Finance Leases*
2024 (excluding the nine months ended March 31, 2024)	$	8
2025		33
2026		8
Total lease payments		49
Less imputed interest		(2	)
Total	$	47

The Company is the lessor of certain areas of its owned office building under operating leases expiring in various months through fiscal year 2025. At the commencement of an operating lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Lease income included in other income on the Consolidated Statements of Operations was $23,000 and $78,000 for the three and nine months ended March 31, 2024, respectively, and $31,000 and $96,000 for the three and nine months ended March 31, 2023, respectively. The cost of obtaining lessor contracts, which is included in other assets on the Consolidated Balance Sheets, was $3,000 at March 31, 2024, and $4,000 at June 30, 2023.

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The following is a summary analysis of annual undiscounted cash flows to be received on leases as of March 31, 2024.

(dollars in thousands)
Fiscal Year	*Operating Leases*
2024 (excluding the nine months ended March 31, 2024)	$	10
2025		36
Total lease payments	$	46

The Company may terminate the building leases with one hundred eighty days written notice if it sells the property. If the Company ~~has no borrowings~~terminates the lease, the Company will pay the tenant a termination fee of the lesser of six months of the base monthly rent or ~~long-term liabilities except for deferred taxes.~~the base monthly rent times the number of months remaining in the initial term.

NOTE 7. OTHER ACCRUED EXPENSES

Other accrued expenses consist of the following:

(dollars in thousands)	March 31, 2024		June 30, 2023
Professional fees	$	538	$	697
Vendors payable		359		157
ETF operating and distribution expenses		548		344
Other taxes payable		73		76
Other		111		-
Other accrued expenses	$	1,629	$	1,274

The Company had $127,000 and $43,000 of receivables from HIVE included in the Consolidated Balance Sheets within receivables as of March 31, 2024, and June 30, 2023, respectively, related to the reimbursement of certain amounts reflected in the table above.

NOTE 8. DEBT

The Company has access to a $1 million credit facility for working capital purposes. The credit agreement requires the Company to maintain certain covenants; the Company has been in compliance with these covenants during the current fiscal year. The credit agreement ~~will expire~~expires on May 31, ~~2018,~~2024, and the Company intends to renew annually. The credit facility is collateralized by approximately $1 million at ~~December~~March 31, ~~2017, shown as~~2024, included in restricted cash on the ~~balance sheet,~~Consolidated Balance Sheets, held in deposit in a money market account at the financial institution that provided the credit facility. As of ~~December~~March 31, ~~2017,~~2024, the credit facility remains unutilized by the Company.

NOTE ~~6. STOCKHOLDERS’~~9. STOCKHOLDERS’ EQUITY

Payment of cash dividends is within the discretion of the Company’s ~~board~~Board of ~~directors~~Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company, and general business conditions. AThe dividend rate per share was $0.0075 per month for fiscal year 2023 and through March 2024.

In March 2024, the Board authorized the continuance of the monthly dividend of ~~$0.0025~~$0.0075 per share ~~was paid for July~~from April through ~~December 2017 and is authorized through March 2018,~~June 2024, at which time it will be considered for continuation by the Board.

The ~~Board of Directors approved~~Company has a share repurchase program, ~~on December 7, 2012,~~approved by the Board of Directors, authorizing the Company to annually purchase up to ~~$2.75~~$5.0 million of its outstanding common shares, as market and business conditions warrant, on the open market in compliance with Rule ~~10b-18~~10b-18 and Rule 10b5-1 of the Securities Exchange Act of ~~1934 through~~ 1934. The repurchase program has been in place since December ~~31, 2013. In December 2013, December 2014, December 2015, December 2016,~~ 2012, and ~~December 2017,~~ the Board of Directors has annually renewed the repurchase program ~~for~~each calendar ~~years 2014, 2015, 2016, 2017, and 2018, respectively.~~year. The ~~total amount~~Company announced on February 25, 2022, that the Board of ~~shares that may be repurchased in calendar year 2018 under~~Directors of the ~~renewed~~Company approved an increase to the limit of its annual share buyback program isfrom $2.75 million to $5.0 million. The acquired shares may be used for corporate purposes, including shares issued to employees in the Company’s stock-based compensation programs. For the three and ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, the Company repurchased ~~36,748~~211,282 and ~~45,947~~605,790 class A shares using cash of ~~$117,000~~$577,000 and ~~$131,000,~~$1.7 million, respectively. For the three and ~~six~~nine months ended ~~December~~March 31, ~~2016,~~2023, the Company repurchased ~~32,605~~193,040 and ~~47,552~~320,412 class A shares using cash of ~~$50,000~~$556,000 and ~~$80,000,~~$938,000, respectively.

~~Stock compensation plans~~

In August 2022, the Inflation Reduction Act (IRA) was signed into law, which made a number of changes to the Internal Revenue Code, including adding a 1% excise tax on stock buybacks by publicly traded corporations, effective on January 1, 2023. Any excise tax incurred is recognized as part of the cost basis of the shares acquired in the Consolidated Statements of Shareholders' Equity. The impact of these provisions was $5,000 and $17,000 for the three and nine months ended March 31, 2024, respectively.

The Company’s stock option plans provide for the granting of class A shares as either incentive or nonqualified stock options to employees and non-employee directors. Options are subject to terms and conditions determined by the Compensation Committee of the Board of Directors. ~~There~~At March 31, 2024, and 2023, there were ~~2,000~~229,000 options outstanding and exercisable ~~at December 31, 2017,~~under the 1989 Plan at a weighted average exercise price of ~~$12.31.~~$6.05, and 2,000 options outstanding and exercisable under the 1997 Plan at a weighted average exercise price of $2.74. There were no options granted ~~exercised~~ or ~~forfeited~~exercised for the ~~six~~three and nine months ended ~~December~~March 31, ~~2017.~~

~~The Company accounts for stock-based compensation in accordance with ASC 718~~ ~~Compensation – Stock Compensation~~2024, or 2023. There were no options forfeited during the three and nine months ended March 31, 2024, no options forfeited during the three months ended March 31, 2023, and 2,000 options forfeited during the nine months ended March 31, 2023.

Stock-based compensation expense is ~~recorded for~~measured at the grant date based on the fair value of the award, and the cost ~~of stock options.~~is recognized as expense ratably over the award’s vesting period. There was no stock-based compensation expense for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017, and 2016.~~2024, or 2023. As of ~~December~~March 31, ~~2017,~~ 2024, and ~~2016,~~2023, there was no unrecognized share-based compensation cost related to share-based ~~compensation~~awards granted under the ~~plans to be recognized over the remainder~~plans.

Page 18

Table of ~~their respective vesting periods.~~Contents

ASU 2016-09, which was issued in March 2016 and became effective for interim and annual reporting periods beginning after December 15, 2016, simplifies several aspects of accounting for employee share-based payment transactions. The Company adopted ASU 2016-09 on July 1, 2017, without a material impact to the consolidated financial statements.

NOTE 7.10. EARNINGS PER SHARE

The basic earnings per share (“EPS”) calculation excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution of EPS that could occur if options to issue common stock were exercised.

~~Page 14~~

~~Table of Contents~~

The following table sets forth the computation for basic and diluted ~~EPS:~~

Six Months Ended December 31, Three Months Ended December 31,
(dollars in thousands, except per share data) 2017 2016 2017 2016
Net Income $ 2,120 $ 289 $ 884 $ 25
Less: Net Income Attributable to Non-Controlling Interest 101 18 135 17
Net Income Attributable to U.S. Global Investors, Inc. $ 2,019 $ 271 $ 749 $ 8

Weighted average number of outstanding shares
Basic 15,171,620 15,229,845 15,160,589 15,218,734
Effect of dilutive securities
Employee stock options - - - -
Diluted 15,171,620 15,229,845 15,160,589 15,218,734

Earnings Per Share Attributable to U.S. Global Investors, Inc.
Basic $ 0.13 $ 0.02 $ 0.05 $ -
Diluted $ 0.13 $ 0.02 $ 0.05 $ -

EPS.

	*Nine Months Ended*				*Three Months Ended*
	*March 31,*				*March 31,*
(dollars in thousands, except per share data)	*2024*		*2023*		*2024*			*2023*
Net Income (Loss)	$	1,018	$	2,520	$	(35	)	$	1,620

Weighted average number of outstanding shares
Basic		14,278,691		14,862,893		14,077,042			14,747,537
Effect of dilutive securities
Stock options		86		295		-			100
Diluted		14,278,777		14,863,188		14,077,042			14,747,637

Earnings (Loss) Per Share
Basic Net Income (Loss) per share	$	0.07	$	0.17	$	(0.00	)	$	0.11
Diluted Net Income (Loss) per share	$	0.07	$	0.17	$	(0.00	)	$	0.11

The diluted EPS calculation excludes the effect of stock options when their exercise prices exceed the average market price for the ~~period.~~period, as their inclusion would be anti-dilutive. For the three and ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, employee stock options of 231,000 and ~~2016, 2,000 options~~229,000, respectively, were excluded from diluted EPS.

For the three and nine months ended March 31, 2023, employee stock options of 229,000 were excluded from diluted EPS.

During the three andnine months ended ~~December~~March 31, ~~2017,~~2024, and ~~2016,~~2023, the Company repurchased class A shares on the open market. Upon repurchase, these shares are classified as treasury shares and are deducted from outstanding shares in the earnings per share calculation.

NOTE 8.11. INCOME TAXES

The Company and its non-Canadian subsidiaries file a consolidated U.S. federal income tax return. USCAN ~~and Galileo file~~files a separate tax ~~returns~~return in Canada. Provisions for income taxes include deferred taxes for temporary differences in the bases of assets and liabilities for financial and tax purposes resulting from the use of the liability method of accounting for income taxes.

~~The Tax Cuts and Jobs Act (“~~

Income tax expense for the ~~Act”) was enacted on December 22, 2017. The Act reduces~~quarter is based upon the U.S. federal corporate tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. In the second quarter,estimated annual ordinary income in each jurisdiction in which the Company ~~revised its estimated annual effective rate to reflect a change in its U.S. federal statutory rate from 34 percent to 21 percent.~~operates. The ~~rate change is effective on January 1, 2018; therefore, the Company’s blended U.S. statutory tax rate for the fiscal year ended June 30, 2018, is approximately 28 percent.~~

~~At December 31, 2017, the Company has not completed its accounting for the~~ tax effects of ~~enactment of~~discrete items are recognized in the ~~Act; however,~~tax provision in ~~certain cases,~~the period they occur in accordance with U.S. GAAP. Due to various factors, such as ~~described below,~~ the ~~Company has made a reasonable estimate of the effects on existing deferred tax balances~~item’s significance in relation to total ordinary income and the ~~one-time transition tax. In other cases,~~rate of tax, discrete items in any quarter can materially impact the ~~Company has not been able to make a reasonable estimate and continues to account for those items based on existing accounting under ASC 740, Income Taxes, and the provisions of the~~reported effective tax ~~laws that were in effect immediately prior to enactment.~~rate. The Securities and Exchange Commission has issued guidance that allows for a measurement period of up to one year after the enactment date of the Act to finalize the recording of the related tax impacts. The final transitional impacts of the Act may differ from the initial estimates.

~~Provisional amounts~~

Deferred tax assets and liabilities: Certain domestic-related deferred tax assets and liabilities were remeasured based on the rates at which they are expected to reverse in the future, which is generally 21 percent. The remeasurement at the lowereffective tax rate ~~on domestic-related deferred tax assets~~was 187.5 percent and liabilities resulted in a deferred tax benefit of approximately $1.4 million. However, the Company is still analyzing certain aspects of the Act and refining the calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As a valuation allowance is recorded30.5 percent for the ~~full amount of these deferred tax assets~~three and ~~liabilities, the remeasurement of the deferred tax assets~~nine months ended March 31, 2024, respectively; and ~~liabilities was offset by a corresponding remeasurement of the valuation allowance.~~

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~~Foreign tax effects: The one-time transition tax is based on total post-1986 earnings~~16.8 percent and ~~profits (“E&P”) that were previously deferred from U.S. income taxes. The Company recorded a provisional amount~~21.7 percent for the one-time transition tax liability for foreign subsidiaries, resulting in an estimated increase in income tax expense of $17,000. The Company has not yet completed its calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cashthree and other specified assets. This amount may change when the calculations are finalized. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations.

~~For federal income tax purposes at December~~nine months ended March 31, 2017, the Company has charitable contribution carryovers totaling approximately $155,000, with $68,000 expiring in fiscal year 2018, $34,000 expiring in fiscal year 2019, $19,000 expiring in fiscal year 2020, $5,000 expiring in fiscal year 2021, $21,000 expiring in fiscal year 2022, and $8,000 expiring in fiscal year 2023. The Company has federal net operating loss carryovers of $4.9 million with $2.0 million expiring in fiscal year 2035, $2.7 million expiring in fiscal year 2036, and $161,000 expiring in fiscal year 2038. For Canadian income tax purposes, Galileo has net operating loss carryovers of $68,000 expiring in fiscal 2036. If certain changes in the Company’s ownership should occur, there could be an annual limitation on the amount of net operating loss carryovers that could be utilized.

2023, respectively.

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax amount will not be realized. ~~At December 31, 2017, and June 30, 2017, a~~A valuation allowance of ~~$1.2 million~~$26,000 and ~~$3.3 million, respectively,~~$24,000 was included to fully reserve for Canadian net operating loss carryovers ~~other carryovers~~at March 31, 2024, and ~~certain book/~~June 30, 2023, respectively.

The Company maintains a reserve for uncertain tax ~~differences in~~positions for income tax matters. The Company believes the ~~balance sheet. Deferred taxes~~reserve for uncertain tax positions, including interest and penalties, and net of ~~$417,000 were recorded in~~federal benefits, of $549,000 adequately covers open tax years and uncertain tax positions up to and including March 31, 2024, for major taxing jurisdictions. As of March 31, 2024, the ~~Statement~~entire $549,000 of ~~Operations in~~unrecognized tax benefits, if recognized, would impact the ~~current period for USCAN book/~~Company's effective income tax ~~differences in the balance sheet.~~rate.

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NOTE 9.12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the change in accumulated other comprehensive income (loss) (“AOCI”) by ~~component:~~component.

(dollars in thousands)	*Unrealized gains (losses) on available-for-sale investments*
Nine Months Ended March 31, 2024
Balance at June 30, 2023	$	1,348
Other comprehensive income (loss) before reclassifications		251
Tax effect		(52	)
Amount reclassified from AOCI		(906	)
Tax effect		190
Net other comprehensive income (loss)		(517	)
Balance at March 31, 2024	$	831

Nine Months Ended March 31, 2023
Balance at June 30, 2022	$	3,624
Other comprehensive income (loss) before reclassifications		(1,189	)
Tax effect		250
Amount reclassified from AOCI		(1,299	)
Tax effect		273
Net other comprehensive income (loss)		(1,965	)
Balance at March 31, 2023	$	1,659

(dollars in thousands)
Unrealized gains (losses) on available-for-sale investments ¹
Foreign currency adjustment Total
Six months ended December 31, 2017
Balance at June 30, 2017 $ 461 $ (197 ) $ 264
Other comprehensive income before reclassifications 16,923 53 16,976
Tax effect (3,506 ) - (3,506 )
Amount reclassified from AOCI (31 ) - (31 )
Tax effect - - -
Net other comprehensive income for six months ended December 31, 2017 13,386 53 13,439
Balance at December 31, 2017 $ 13,847 $ (144 ) $ 13,703

Three Months Ended December 31, 2017
Balance at September 30, 2017 $ 9,594 $ (161 ) $ 9,433
Other comprehensive income before reclassifications 7,783 17 7,800
Tax effect (3,506 ) - (3,506 )
Amount reclassified from AOCI (24 ) - (24 )
Tax effect - - -
Net other comprehensive income for quarter 4,253 17 4,270
Balance at December 31, 2017 $ 13,847 $ (144 ) $ 13,703

(dollars in thousands)
Unrealized gains (losses) on available-for-sale investments ¹
Foreign currency adjustment Total
Six months ended December 31, 2016
Balance at June 30, 2016 $ 45 $ (194 ) $ (149 )
Other comprehensive income (loss) before reclassifications 369 (35 ) 334
Tax effect - - -
Amount reclassified from AOCI (15 ) - (15 )
Tax effect - - -
Net other comprehensive income (loss) for six months ended December 31, 2016 354 (35 ) 319
Balance at December 31, 2016 $ 399 $ (229 ) $ 170

Three Months Ended December 31, 2016
Balance at September 30, 2016 $ 738 $ (204 ) $ 534
Other comprehensive income (loss) before reclassifications (308 ) (25 ) (333 )
Tax effect - - -
Amount reclassified from AOCI (31 ) - (31 )
Tax effect - - -
Net other comprehensive income (loss) for quarter (339 ) (25 ) (364 )
Balance at December 31, 2016 $ 399 $ (229 ) $ 170

^1.	~~Amounts reclassified from unrealized gains (losses) on available-for-sale investments, net of tax, were recorded in investment income (loss) on the Consolidated Statements of Operations.~~

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NOTE ~~10.~~13. FINANCIAL INFORMATION BY BUSINESS SEGMENT

The Company operates principally in ~~three~~two business segments: providing investment management services to USGIF ~~offshore clients~~ and ETF clients; ~~investment management services in Canada;~~ and investing for its own account in an effort to add growth and value to its cash position. The following schedule details gross identifiable assets, total revenues, and income by business ~~segment:~~segment.

(dollars in thousands)	*Investment Management Services*			*Corporate Investments*			*Consolidated*
Nine Months Ended March 31, 2024
Net operating revenues	$	8,544		$	-		$	8,544
Net investment income (loss)	$	-		$	1,363		$	1,363
Other income (loss)	$	183		$	-		$	183
Income (loss) before income taxes	$	164		$	1,300		$	1,464
Depreciation	$	163		$	-		$	163
Gross identifiable assets at March 31, 2024	$	27,542		$	23,390		$	50,932
Deferred tax asset							$	1,840
Consolidated total assets at March 31, 2024							$	52,772
Nine Months Ended March 31, 2023
Net operating revenues	$	11,764		$	-		$	11,764
Net investment income (loss)	$	-		$	(189	)	$	(189	)
Other income (loss)	$	184		$	-		$	184
Income (loss) before income taxes	$	3,461		$	(243	)	$	3,218
Depreciation	$	183		$	-		$	183
Gross identifiable assets at March 31, 2023	$	25,056		$	29,030		$	54,086
Deferred tax asset							$	1,659
Consolidated total assets at March 31, 2023							$	55,745
Three Months Ended March 31, 2024
Net operating revenues	$	2,593		$	-		$	2,593
Net investment income (loss)	$	-		$	460		$	460
Other income (loss)	$	68		$	-		$	68
Income (loss) before income taxes	$	(389	)	$	429		$	40
Depreciation	$	41		$	-		$	41
Three Months Ended March 31, 2023
Net operating revenues	$	3,624		$	-		$	3,624
Net investment income (loss)	$	-		$	1,155		$	1,155
Other income (loss)	$	61		$	-		$	61
Income (loss) before income taxes	$	815		$	1,131		$	1,946
Depreciation	$	61		$	-		$	61

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(dollars in thousands) Investment Management Services
Investment Management
Services - Canada
Corporate Investments Consolidated
Six months ended December 31, 2017
Net operating revenues $ 2,514 $ 969 $ - $ 3,483
Net other income $ 7 $ 10 $ 3,183 $ 3,200
Income (loss) before income taxes $ (915 ) $ 305 $ 3,182 $ 2,572
Depreciation and amortization $ 116 $ 6 $ - $ 122
Capital expenditures $ - $ - $ - $ -
Gross identifiable assets at December 31, 2017 $ 8,702 $ 2,137 $ 34,236 $ 45,075
Deferred tax asset $ -
Consolidated total assets at December 31, 2017 $ 45,075
Six months ended December 31, 2016
Net operating revenues $ 3,020 $ 603 $ - $ 3,623
Net other income $ - $ - $ 502 $ 502
Income (loss) before income taxes $ (223 ) $ 30 $ 492 $ 299
Depreciation and amortization $ 119 $ 8 $ - $ 127
Capital expenditures $ - $ - $ - $ -
Three months ended December 31, 2017
Net operating revenues $ 1,242 $ 751 $ - $ 1,993
Net other income $ 5 $ 10 $ 1,460 $ 1,475
Income (loss) before income taxes $ (515 ) $ 381 $ 1,460 $ 1,326
Depreciation and amortization $ 58 $ 3 $ - $ 61
Capital expenditures $ - $ - $ - $ -
Three months ended December 31, 2016
Net operating revenues $ 1,339 $ 303 $ - $ 1,642
Net other income $ - $ - $ 249 $ 249
Income (loss) before income taxes $ (275 ) $ 33 $ 257 $ 15
Depreciation and amortization $ 59 $ 4 $ - $ 63
Capital expenditures $ - $ - $ - $ -

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Net operating revenues from investment management services includes operating revenues from ~~USGIF~~ETF clients of ~~$1.0~~$2.2 million and ~~$2.1~~$7.4 million ~~respectively,~~ for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, respectively, and ~~$1.2~~$3.1 million and ~~$2.8~~$10.4 million ~~respectively,~~ for the three and ~~six~~nine months ended ~~December~~March 31, ~~2016.~~2023, respectively. Net operating revenues from investment management services also include operating revenues from ~~ETF clients~~USGIF of ~~$184,000~~$369,000 and ~~$369,000, respectively,~~$1.2 million for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, respectively, and ~~$76,000~~$482,000 and ~~$142,000, respectively,~~$1.4 million for the three and ~~six~~nine months ended ~~December~~March 31, ~~2016.~~2023, respectively.

Net operating revenues from investment management services in Canada includes revenues from Galileo funds of $747,000 and $961,000, respectively, for the three and six months ended December 31, 2017, and $223,000 and $448,000, respectively, for the three and six months ended December 31, 2016, and from other significant advisory clients of $78,000 and $148,000, respectively, for the three and six months ended December 31, 2016.

NOTE ~~11.~~14. CONTINGENCIES AND COMMITMENTS

The Company continuously reviews ~~all~~ investor, employee and vendor complaints, and pending or threatened litigation. The likelihood that a loss contingency exists is evaluated through consultation with legal counsel, and a loss contingency is recorded if probable and reasonably estimable.

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During the normal course of business, the Company may be subject to various claims, legal proceedings, and other contingencies. These matters are subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably. The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated. Management believes that any liability in excess of these accruals upon the ultimate resolution of these matters will not have a material adverse effect on the ~~consolidated financial statements~~Consolidated Financial Statements of the Company.

Excluding reserves for uncertain tax positions, the Company recorded no accruals for contingencies as of March 31, 2024, or June 30, 2023.

The Board has authorized a monthly dividend of ~~$0.0025~~$0.0075 per share through ~~March 2018,~~June 2024, at which time it will be considered for continuation by the Board. Payment of cash dividends is within the discretion of the Company’s Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company, and general business conditions. The total amount of cash dividends expected to be paid to class A and class C shareholders from ~~January~~April to ~~March 2018~~June 2024 is approximately ~~$114,000.~~$317,000.

The COVID-19 pandemic and the resulting actions to control or slow the spread have affected global and domestic economies and financial markets, and in the future it or other epidemics, pandemics or outbreaks may adversely affect the Company's results of operations, cash flows and financial position. The Company cannot reasonably estimate the future impact of these events, given the uncertainty over the duration and severity of the economic impact.

NOTE ~~12.~~15. SUBSEQUENT EVENT

~~As discussed in Note 2,~~

USGIF advisory fees are comprised of two components: a base management fee and a performance fee. The performance fee is a fulcrum fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the ~~Company owned approximately 30 percent~~prior rolling 12 months.

For three of ~~Galileo Partners Fund at December 31, 2017. This investment is accounted for under the~~four USGIF equity method of accounting. Effective January 31, 2018, a portion of the investment in the fund was redeemed (sold) for proceeds of approximately $1.5 million. As the Company had recorded its proportional shares of the fund’s net income under the equity method of accounting, the proceeds will reduce the carrying value of the investment. Afterfunds, this ~~transaction, the Company owns approximately 24 percent of the fund. As the Company will continue to have the ability to exercise significant influence, the investment will continue~~performance adjustment began to be ~~accounted for under~~phased out on April 1, 2024, and will cease on April 1, 2025. In the ~~equity method of accounting. The results of this transaction will~~phase-out period, performance can only be ~~reflected in the financial statements for the quarter ended March 31, 2018.~~

adjusted downward.

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ITEM 2. ~~MANAGEMENT’S~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

U.S. Global Investors, Inc. (the ~~“Company”~~“Company” or ~~“U.S. Global”~~“U.S. Global”) has made forward-looking statements concerning the ~~Company’s~~Company’s performance, financial condition, and operations in this report. The Company from time to time may also make forward-looking statements in its public filings and press releases. Such forward-looking statements are subject to various known and unknown risks and uncertainties and do not guarantee future performance. Actual results could differ materially from those anticipated in such forward-looking statements due to a number of factors, some of which are beyond the ~~Company’s~~Company’s control, including: (i) the volatile and competitive nature of the investment management industry, (ii) changes in domestic and foreign economic conditions, including significant economic disruptions from COVID-19 or other epidemics, pandemics or outbreaks and the actions taken in connection therewith, (iii) the effect of government regulation on the ~~Company’s~~Company’s business, and (iv) market, credit, and liquidity risks associated with the ~~Company’s~~Company’s investment management activities. Due to such risks, uncertainties, and other factors, the Company cautions each person receiving such forward-looking information not to place undue reliance on such statements. All such forward-looking statements are current only as of the date on which such statements were made.

FACTORS AFFECTING OUR BUSINESS

The rapid spread of COVID-19 and actions taken in response had a significant detrimental effect on the global and domestic economies and financial markets. Market declines affect the Company’s assets under management, and thus its revenues and also the valuation of the Company’s corporate investments. If this macro-economic risk persists, it could have an adverse material financial impact on the Company’s business and investments, including a material reduction in its results of operations.

COVID-19-related circumstances (e.g., remote work arrangements) did not adversely affect the Company’s ability to maintain operations, including financial reporting systems, internal controls over financial reporting, and disclosure controls and procedures.

Market volatility in the prices of digital assets has been elevated due to a variety of factors, including, but not limited to, the macroeconomic environment (high inflation and rising interest rates) as well as the ‘crypto credit crisis of 2022’ brought on by the collapse and bankruptcy of a number of key players in the sector (cryptocurrency Luna collapse, hedge fund Three Arrows Capital default on loans and filing for bankruptcy, crypto-lending platform Celsius freezing all withdraws, cryptocurrency lender Voyager Digital filing for bankruptcy, crypto platform FTX filing for bankruptcy, crypto platform BlockFi filing for bankruptcy among others). The Company did not have direct exposure to any of the foregoing firms affected by the crypto credit crisis of 2022. Although the Company has no current intention of directly investing in cryptocurrencies, the Company has indirect exposure to cryptocurrencies by investing in securities of issuers with exposure to the cryptocurrency industry. There has been significant volatility in the market price of the securities, which has had a material impact, and may continue to have a material impact, on the investment values included on the Consolidated Balance Sheets and unrealized gain (loss) recognized in net investment income.

BUSINESS SEGMENTS

The Company, with principal operations located in San Antonio, Texas, manages ~~three~~two business segments: (1) the Company offers a broad range of investment management products and services to meet the needs of individual and institutional ~~investors;~~investors, and (2) the Company, through its Canadian subsidiary, owns a 65 percent controlling interest in Galileo Global Equity Advisors Inc. (“Galileo”), which offers investment management products and services in Canada; and (3) the Company invests for its own account in an effort to add growth and value to its cash position. ~~Although the Company usually generates the majority of its revenues from its investment advisory segments, the Company holds a significant amount of its total assets in investments.~~

The following is a brief discussion of the Company’s ~~three~~ business segments.

Investment Management Services

The Company provides advisory services for three U.S.-based exchange-traded fund (“ETF”) clients and receives monthly advisory fees based on the net asset values of the funds. Information on the U.S.-based ETFs can be found at www.usglobaletfs.com, including the prospectus, performance and holdings. The Company also serves as investment advisor to one European-based ETF and receives a monthly advisory fee based on the net asset value of the fund. The European-based ETF is not available to U.S. investors. The ETFs’ authorized participants are not required to give advance notice prior to redemption of shares in the ETFs, and the ETFs do not charge a redemption fee.

The Company also generates operating revenues from managing and servicing U.S. Global Investors Funds (“USGIF” or the “Funds”) ~~and other advisory clients.~~. These revenues are largely dependent on the total value and composition of assets under its management. Fluctuations in the markets and investor sentiment directly impact the asset levels of the Funds, ~~and other advisory clients,~~ thereby affecting income and results of operations. Detailed information regarding the Funds managed by the Company within USGIF can be found on the Company’s website, www.usfunds.com, including the prospectus and performance information for each Fund. The mutual fund shareholders in USGIF are not required to give advance notice prior to redemption of shares in the Funds.

The Company provides advisory services for two exchange-traded fund (“ETF”) clients and receives monthly advisory fees based on the net asset values of the funds. Information on the ETFs can be found at www.usglobaletfs.com, including the prospectus, performance and holdings. The ETFs’ authorized participants are not required to give advance notice prior to redemption of shares in the ETFs, and the ETFs do not charge a redemption fee.

The Company provided advisory services for offshore clients and received advisory fees based on the net asset values of the clients and performance fees, if any, based on the overall increase in net asset values. Frank Holmes, CEO, served as a director of the offshore clients. The offshore clients completed their respective liquidations in the second quarter of fiscal year 2018.

At ~~December~~March 31, ~~2017,~~2024, total assets under management, including ~~USGIF~~ETF and ~~ETF~~USGIF clients, were ~~$681.2 million~~approximately $1.7 billion versus ~~$683.1 million~~$2.3 billion at ~~December~~March 31, ~~2016,~~2023, a decrease of ~~0.3 percent.~~$0.5 billion. During the ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, average assets under management, including ETF and USGIF clients, were ~~$702.4 million~~$1.9 billion, versus ~~$773.9 million~~$2.6 billion during the ~~six~~nine months ended ~~December~~March 31, ~~2016. Total assets under management as of period-end at December 31, 2017, including USGIF and ETF clients, were $681.2 million versus $711.9 million at~~2023. At June 30, ~~2017,~~2023, the Company’s prior fiscal year ~~end.~~

end, total assets under management, including ETF and USGIF clients, were approximately $2.4 billion, and decreased $0.6 billion during the nine months ended March 31, 2024.

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The following tables summarize the changes in assets under management for USGIF for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, and ~~2016:~~

Changes in Assets Under Management
Six Months Ended December 31,
2017 2016
(dollars in thousands) Equity Fixed Income Total Equity Fixed Income Total
Beginning Balance $ 442,916 $ 136,500 $ 579,416 $ 525,778 $ 177,242 $ 703,020
Market appreciation (depreciation) 36,345 22 36,367 (45,536 ) (1,947 ) (47,483 )
Dividends and distributions (34,479 ) (660 ) (35,139 ) (7,723 ) (898 ) (8,621 )
Net shareholder purchases (redemptions) 2,660 (17,315 ) (14,655 ) (22,508 ) (22,302 ) (44,810 )
Ending Balance $ 447,442 $ 118,547 $ 565,989 $ 450,011 $ 152,095 $ 602,106

Average investment management fee 1.00 % 0.08 % 0.80 % 0.96 % 0.00 % 0.73 %
Average net assets $ 450,124 $ 129,908 $ 580,032 $ 536,384 $ 174,116 $ 710,500

Changes in Assets Under Management
Three Months Ended December 31,
2017 2016
(dollars in thousands) Equity Fixed Income Total Equity Fixed Income Total
Beginning Balance $ 460,960 $ 129,571 $ 590,531 $ 578,588 $ 181,217 $ 759,805
Market appreciation (depreciation) 8,284 1,582 9,866 (96,256 ) (1,773 ) (98,029 )
Dividends and distributions (34,480 ) (357 ) (34,837 ) (7,722 ) (459 ) (8,181 )
Net shareholder purchases (redemptions) 12,678 (12,249 ) 429 (24,599 ) (26,890 ) (51,489 )
Ending Balance $ 447,442 $ 118,547 $ 565,989 $ 450,011 $ 152,095 $ 602,106

Average investment management fee 1.00 % 0.17 % 0.82 % 0.94 % 0.00 % 0.70 %
Average net assets $ 445,890 $ 125,819 $ 571,709 $ 492,403 $ 167,635 $ 660,038

2023.

	Changes in Assets Under Management
	Three Months Ended March 31,
	2024									2023
(dollars in thousands)	Equity			Fixed Income			Total			Equity			Fixed Income			Total
Beginning Balance	$	233,187		$	56,722		$	289,909		$	278,037		$	64,995		$	343,032
Market appreciation (depreciation)		6,985			242			7,227			18,763			542			19,305
Dividends and distributions		-			(480	)		(480	)		-			(394	)		(394	)
Net shareholder purchases (redemptions)		(10,728	)		334			(10,394	)		(5,889	)		(3,042	)		(8,931	)
Ending Balance	$	229,444		$	56,818		$	286,262		$	290,911		$	62,101		$	353,012

Average investment management fee		0.81	%		0.00	%		0.64	%		0.79	%		0.00	%		0.65	%
Average net assets	$	219,813		$	57,103		$	276,916		$	289,682		$	63,337		$	353,019

	Changes in Assets Under Management
	Nine Months Ended March 31,
	2024									2023
(dollars in thousands)	Equity			Fixed Income			Total			Equity			Fixed Income			Total
Beginning Balance	$	265,329		$	63,110		$	328,439		$	286,367		$	71,161		$	357,528
Market appreciation (depreciation)		3,781			1,618			5,399			22,292			323			22,615
Dividends and distributions		(2,235	)		(1,517	)		(3,752	)		(11,329	)		(931	)		(12,260	)
Net shareholder purchases (redemptions)		(37,431	)		(6,393	)		(43,824	)		(6,419	)		(8,452	)		(14,871	)
Ending Balance	$	229,444		$	56,818		$	286,262		$	290,911		$	62,101		$	353,012

Average investment management fee		0.81	%		0.00	%		0.64	%		0.81	%		0.00	%		0.65	%
Average net assets	$	231,059		$	58,926		$	289,985		$	281,745		$	65,978		$	347,723

As shown above, USGIF period-end assets under management were lower at ~~December~~March 31, ~~2017,~~2024, compared to ~~December~~March 31, ~~2016. Also, average~~2023. Average net assets for the ~~three-~~three and ~~six-month periods~~nine months in the current fiscal year were lower than the same periods in the previous fiscal year. ~~Both~~

USGIF period-end assets under management decreased during the nine months ended March 31, 2024, and 2023, decreased during the three ~~and six~~ months ended ~~December~~March 31, ~~2017, had net market appreciation, primarily in the equity funds, compared to net market depreciation for~~2024, and increased during the three ~~and six~~ months ended ~~December~~March 31, ~~2016, also~~2023. During the nine months ended March 31, 2024, the decrease was primarily indue to redemptions, primarily driven by equity fund liquidations. The increase during the equity funds. A significant portion of the dividends and distributions shown above are reinvested and included in net shareholder purchases (redemptions). The combined amounts for these two lines for all periods shown were negative, thus contributingthree months ended March 31, 2023, was primarily due to ~~the decline in net assets.~~

market appreciation.

The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was ~~82 and 80~~64 basis points for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017, respectively,~~2024, and ~~70 and 73~~65 basis points for the ~~same periods in the prior year.~~three and nine months ended March 31, 2023. The average investment management fee for the equity funds was ~~100~~81 basis points for the three and ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, and 9479 basis points and 9681 basis points for the ~~same periods in the prior year.~~three and nine months ended March 31, 2023, respectively. The Company has agreed to contractually or voluntarily limit the expenses of the Funds. Therefore, the Company waived or reduced its fees and/or agreed to pay expenses of the Funds. Due to fee waivers, the average investment management fee for the fixed income funds was ~~17 and 8 basis points~~minimal. Additionally, due to fee waivers, the equity fund liquidations did not have a significant impact of decreasing the average investment management fee rate for the ~~three and six months ended December 31, 2017, respectively, compared to nil for the three and six months ended December 31, 2016.~~

~~Investment Management Services - Canada~~

The Company owns a 65 percent controlling interest in the Canadian asset management firm Galileo. These revenues are largely dependent on the total value and composition of assets under its management. Fluctuations in the markets and investor sentiment directly impact the funds’ asset levels, thereby affecting income and results of operations.

At December 31, 2017, total Galileo assets under management were $64.8 million versus $128.4 million at December 31, 2016, a decrease of 49.5 percent. During the six months ended December 31, 2017, average assets under management were $57.6 million versus $124.3 million during the six months ended December 31, 2016. Total assets under management at December 31, 2017, were $64.8 million versus $47.8 million at June 30, 2017, the Company’s prior fiscal year end.

~~On September 29, 2017, Galileo launched its first ETF, U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOGO), on the Toronto Stock Exchange.~~

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equity funds.

Investment Activities

Management believes it can more effectively manage the Company’s cash position by broadening the types of investments used in cash management and continues to believe that such activities are in the best interest of the Company. The Company’s investment activities are reviewed and monitored by Company compliance personnel, and various reports are provided to certain investment advisory clients. Written procedures are in place to manage compliance with the code of ethics and other policies affecting the Company’s investment practices. This source of revenue does not remain consistent and is dependent on market fluctuations, the Company’s ability to participate in investment opportunities, and timing of transactions.

As of ~~December~~March 31, ~~2017,~~2024, the Company held investments ~~with a~~carried at fair value of ~~approximately $29.8~~$16.7 million and a cost basis of ~~approximately $12.6~~$18.9 million. The fair value of these investments is approximately ~~66.1~~31.6 percent of the Company’s total ~~assets. See Note 2 (Investments) for additional detail regarding investment activities.~~assets at March 31, 2024. In addition, the Company held other investments of ~~$2.1~~approximately $1.1 million ~~accounted~~and held-to-maturity debt investments, net of allowance for ~~under the cost method~~credit losses, of ~~accounting, $3.3 million in investments accounted for under the equity method of accounting, and $2.2 million in notes receivable.~~

$843,000.

Investments recorded at fair value on a recurring basis were approximately ~~$29.8~~$16.7 million at ~~December~~March 31, ~~2017,~~2024, compared to approximately ~~$13.1~~$20.2 million at June 30, ~~2017,~~2023, the Company’s prior fiscal year end, which is ~~an increase~~a decrease of approximately ~~$16.7~~$3.5 million. ~~This increase is primarily due to unrealized gain on an available-for-sale security acquired during the current period.~~ See Note ~~2 (Investments)~~3, Investments, in the Notes to Consolidated Financial Statements of this Quarterly Report on Form 10-Q, for further ~~information. In addition, an~~information regarding investment ~~was made in the current period in a Galileo fund that is accounted for under the equity method~~activities.

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Table of ~~accounting and was valued at approximately $3.3 million at December 31, 2017.~~Contents

RESULTS OF OPERATIONS – Three months ended ~~December~~March 31, ~~2017,~~2024, and ~~2016~~

2023

The Company ~~posted~~recorded a net ~~income attributable to U.S. Global Investors, Inc.~~loss of ~~$749,000~~$35,000 ($~~0.05~~(0) per share) for the three months ended ~~December~~March 31, ~~2017,~~2024, compared ~~with~~to net income ~~attributable to U.S. Global Investors, Inc.~~ of ~~$8,000~~$1.6 million ($~~0.00~~0.11 per share) for the three months ended ~~December~~March 31, ~~2016, an increase in net income~~2023, a change of approximately ~~$741,000.~~$1.7 million. The ~~increase~~change is primarily due to a decrease in operating revenues and net investment income ~~from an equity method investment.~~

compared to the same period in the prior year, as discussed further below.

Operating Revenues

Total consolidated operating revenues for the three months ended ~~December~~March 31, ~~2017, increased $351,000,~~2024, decreased $1.0 million, or ~~21.4~~28.4 percent, compared with the three months ended ~~December~~March 31, ~~2016.~~2023. This ~~increase~~decrease was primarily attributable to the following:

•	Advisory fees ~~increased~~decreased by ~~$360,000,~~$1.0 million, or ~~22.9~~28.5 percent, ~~primarily as a result of performance fees from Galileo clients. Advisory fees are comprised of two components: a base management fee and a performance fee.~~

•

Base management fees increased $79,000, primarily due to an increase in ETF unitary management fees resulting from an increase in ETF average assets under management, partially offset by a decrease in base fees for USGIF and Galileo clients primarily as a result of lower average assets under management ~~largely due to shareholder redemptions. The effect of the decline in net assets on base fees for USGIF was offset~~ in the ~~current period by~~ETFs and a ~~decline~~decrease in base management ~~fee waivers.~~ fees received. Advisory fees are comprised of two components: base management fees and performance fees.

•

Base management fees decreased $1.0 million. The majority of this decrease was from ETF unitary management fees, which decreased $918,000 as the result of a decrease in ETF average assets under management, primarily for the ~~offshore funds decreased due to these funds liquidating in the current year.~~Jets ETF.

•

Performance fees for USGIF paid ~~out~~ in the current period were ~~$192,000~~$101,000 compared to ~~$9,000 in fees paid out~~$109,000 in the corresponding period in the prior ~~year, reducing revenue by $183,000.~~year. The performance fee, which applies to the USGIF equity funds only, is a fulcrum fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months.

•

Performance fees for Galileo clients received in the current period were $464,000 compared to none in the corresponding period in the prior year, increasing revenue by $464,000. Galileo may receive performance fees from certain clients when market appreciation or realized net gains exceeds established benchmarks. The majority of the performance fees recorded in the quarter are annual performance fees calculated at calendar year-end.

•	~~Administrative services fee revenue decreased by $9,000, or 12.3 percent, due to lower average net assets under management upon which these fees are based in the current period.~~

Operating Expenses

Total consolidated operating expenses for the three months ended ~~December~~March 31, ~~2017,~~2024, increased ~~$266,000,~~$187,000, or ~~14.2~~6.5 percent, compared with the three months ended ~~December~~March 31, ~~2016.~~2023. The ~~change~~increase in operating expenses was primarily attributable to an increase in general and administrative expenses of $256,000, or 17.3 percent, somewhat offset by a decrease in employee compensation ~~and benefits expenses~~ of ~~$241,000,~~$55,000, or ~~26.8 percent, primarily due to increased bonuses and an~~4.4 percent. The increase in general and administrative expenses ~~of $51,000, or 5.9 percent,~~are primarily due to ~~increased ETF costs and increased costs by Galileo~~increases in USGIF expenses related to ~~new fund startup costs. This increase was somewhat offset by~~ a ~~decrease~~performance fee elimination proxy; and increases in ~~advertising~~ETF expenses ~~of $24,000, or 47.1 percent, primarily due~~related to ~~decreased~~merging the European-based ETF, ~~marketing.~~

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~~Table of Contents~~

the U.S. Global Jets UCITS ETF, into the Travel UCITS ETF (TRIP).

Other Income

(Loss)

Total consolidated other income for the three months ended ~~December~~March 31, ~~2017, increased~~2024, was $528,000, compared to $1.2 million ~~or 492.4 percent, compared with~~for the three months ended ~~December~~March 31, ~~2016. The increase~~2023, a decrease of approximately $688,000. This decrease was primarily due to ~~an investment made in~~ the quarter ended September 30, 2017, in a Galileo fund that is accounted for under the equity method of accounting. Under the equity method of accounting, the Company’s share of the fund’s net income, which primarily consists of realized and unrealized gains and losses on investments offset by fund expenses, is recognized in the Company’s earnings. The Galileo fund’s investments are concentrated in a cryptocurrency mining stock. Cryptocurrency markets and related stocks have been, and are expected to continue to be, volatile. Cryptocurrency mining is considered an early stage high-risk industry, and the nature of mining is expected to evolve. There is potential for significant volatility in the valuation of the fund’s investments, and thus the fund’s net income that is included in the Company’s earnings. See further discussion in Note 2, Investments, to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q. In addition, the Company redeemed a portion of its investment in the fund after December 31, 2017. See further discussion in Note 12, Subsequent Event, to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

following factors:

•

Net investment income was $460,000 for the three months ended March 31, 2024, compared to $1.2 million for the prior period, a decrease of $695,000. This decrease in net investment income is comprised of net realized and unrealized losses on equity securities of $231,000 in the current period compared to net realized and unrealized gains on equity securities of $270,000 in the same quarter in the prior year, an unfavorable change of $501,000; and a decrease in realized gains on debt securities of $127,000 compared to the prior period.

Provision for Income Taxes

~~The Tax Cuts and Jobs Act~~

A tax expense of $75,000 was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. In the second quarter, the Company revised its estimated annual effective rate to reflect a change in its federal statutory rate from 34 percent to 21 percent. The rate change is effective on January 1, 2018; therefore, the Company’s blended statutory tax raterecorded for the ~~fiscal year~~three months ended ~~June 30, 2018, is 28 percent. At December~~March 31, ~~2017,~~2024, compared to $326,000 for the ~~Company has not completed its accounting for all~~three months ended March 31, 2023, a decrease of $251,000. The decrease was primarily the ~~tax effects~~result of enactment of the Act; however, a reasonable estimate has been made of the one-time transition tax of $17,000, which is included as a component of tax expense in the current quarter. The final transitional impacts of the Act may differ from the initial estimates. Note that the Company currently has netan operating loss ~~carryovers in most jurisdictions, including the U.S. A valuation allowance has been recorded~~ ~~to fully reserve for~~ ~~net operating loss carryovers, other carryovers and certain book/tax differences in the balance sheet. Deferred taxes of $417,000 were recorded in the Statement of Operations~~ in the current period ~~for USCAN book/tax differences~~compared to operating income in the ~~balance sheet.~~

same period in the prior year, and lower net investment income (loss) in the current period compared to the same period in the prior year.

RESULTS OF OPERATIONS – ~~Six~~ Nine months ended ~~December~~March 31, ~~2017,~~2024, and ~~2016~~

2023

The Company ~~posted~~recorded net income ~~attributable to U.S. Global Investors, Inc.~~ of ~~$2.0~~$1.0 million ($~~0.13~~0.07 per share) for the ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, compared ~~with~~to net income ~~attributable to U.S. Global Investors, Inc.~~ of ~~$271,000~~$2.5 million ($~~0.02~~0.17 per share) for the ~~six~~nine months ended ~~December~~March 31, ~~2016, an increase in net income~~2023, a decrease of approximately ~~$1.7~~$1.5 million. The ~~increase~~decrease is primarily due to ~~income from equity method investment,~~a decrease in operating revenues compared to the same period in the prior year, somewhat offset by ~~a decrease~~net investment income in ~~revenues, which was~~ the ~~result of a decrease~~current period compared to net investment losses in ~~assets under management, and an increase~~same period in ~~operating expenses~~the prior year, as discussed further below.

Operating Revenues

Total consolidated operating revenues for the ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, decreased ~~$140,000,~~$3.2 million, or ~~3.9~~27.4 percent, compared with the ~~three~~nine months ended ~~December~~March 31, ~~2016.~~2023. This decrease was primarily attributable to the following:

•	Advisory fees decreased by ~~$98,000,~~$3.2 million, or ~~2.8~~27.5 percent, ~~primarily as a result of lower assets under management. Advisory fees are comprised of two components: a base management fee and a performance fee.~~

•

~~Base management fees decreased $224,000. Base fees for USGIF and Galileo clients decreased~~ primarily as a result of lower average assets under management ~~primarily due to shareholder redemptions.~~ in the ETFs and a decrease in base management fees received. Advisory fees are comprised of two components: base management fees and performance fees.

•

Base management fees ~~for the offshore funds~~ decreased ~~due to these funds liquidating in the current year. These decreases were somewhat offset by an increase in~~$3.3 million. The majority of this decrease was from ETF unitary management fees, ~~due to an increase~~which decreased $3.0 million as the result of a decrease in ETF average assets under ~~management.~~management, primarily for the Jets ETF.

•

Performance fees for USGIF paid ~~out~~ in the current period were ~~$308,000~~$344,000 compared to ~~$30,000 in fees received~~$390,000 in the corresponding period in the prior ~~year, reducing revenue by $338,000.~~year. The performance fee, which applies to the USGIF equity funds only, is a fulcrum fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months.

•

Performance fees for Galileo clients received in the current period were $464,000 compared to none in the corresponding period in the prior year, increasing revenue by $464,000. Galileo may receive performance fees from certain clients when market appreciation or realized net gains exceeds established benchmarks. The majority of the performance fees recorded in the period are annual performance fees calculated at calendar year-end.

•	~~Administrative services fee revenue decreased by $42,000, or 25.8 percent, due to lower average net assets under management upon which these fees are based in the current period.~~

Operating Expenses

Total consolidated operating expenses for the ~~six~~nine months ended ~~December~~March 31, ~~2017,~~2024, increased ~~$285,000,~~$85,000, or ~~7.4~~1.0 percent, compared with the ~~six~~nine months ended ~~December~~March 31, ~~2016.~~2023. The ~~change~~increase in operating expenses was primarily attributable to an increase in general and administrative expenses of $236,000, or 5.3 percent, partially offset by a decrease in employee compensation ~~and benefits expenses~~ of ~~$155,000,~~$124,000, or ~~8.2 percent, primarily due to increased bonuses, and an~~3.5 percent. The increase in general and administrative expenses ~~of $129,000, or 7.4 percent,~~are primarily due to ~~increased ETF costs and increased costs by Galileo~~increases in USGIF expenses related to ~~new fund startup costs.~~

a performance fee elimination proxy; and increases in ETF expenses related to merging the European-based ETF, the U.S. Global Jets UCITS ETF, into the Travel UCITS ETF (TRIP).

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Other Income

(Loss)

Total consolidated other income for the ~~six~~nine months ended ~~December~~March 31, ~~2017, increased $2.7~~2024, was $1.5 million, ~~or 537.5 percent,~~ compared ~~with~~to a loss of $5,000 for the ~~six~~nine months ended ~~December~~March 31, ~~2016. The increase~~2023, a change of approximately $1.6 million. This change was primarily due to ~~an investment made in~~ the quarter ended September 30, 2017, in a Galileo fund that is accounted for under the equity method of accounting. Under the equity method of accounting, the Company’s share of the fund’s net income, which primarily consists of realized and unrealized gains and losses on investments offset by fund expenses, is recognized in the Company’s earnings. The Galileo fund’s investments are concentrated in a cryptocurrency mining stock. Cryptocurrency markets and related stocks have been, and are expected to continue to be, volatile. Cryptocurrency mining is considered an early stage high-risk industry, and the nature of mining is expected to evolve. There is potential for significant volatility in the valuation of the fund’s investments, and thus the fund’s net income that is included in the Company’s earnings. See further discussion in Note 2, Investments, to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q. In addition, the Company redeemed a portion of its investment in the fund after December 31, 2017. See further discussion in Note 12, Subsequent Event, to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

following factors:

•

Net investment income was $1.4 million for the nine months ended March 31, 2024, compared to a loss of $189,000 for the prior period, a change of $1.6 million. This change in net investment income is primarily attributable to net realized and unrealized losses on equity securities of $1.1 million in the current period, compared to $2.6 million in the comparable period, a favorable change of $1.5 million.

Provision for Income Taxes

~~The Tax Cuts and Jobs Act~~

A tax expense of $446,000 was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. In the second quarter, the Company revised its estimated annual effective rate to reflect a change in its federal statutory rate from 34 percent to 21 percent. The rate change is effective on January 1, 2018; therefore, the Company’s blended statutory tax raterecorded for the ~~fiscal year~~nine months ended ~~June 30, 2018, is 28 percent. At December~~March 31, ~~2017,~~2024, compared to $698,000 for the ~~Company has not completed its accounting for all~~nine months ended March 31, 2023, a decrease of $252,000. The decrease was primarily the ~~tax effects~~result of enactment of the Act; however, a reasonable estimate has been made of the one-time transition tax of $17,000, which is included as a component of tax expense in the current quarter. The final transitional impacts of the Act may differ from the initial estimates. Note that the Company currently has netan operating loss ~~carryovers in most jurisdictions, including the U.S. A valuation allowance has been recorded~~ ~~to fully reserve for~~ ~~net operating loss carryovers, other carryovers and certain book/tax differences in the balance sheet. Deferred taxes of $417,000 were recorded in the Statement of Operations~~ in the current period ~~for USCAN book/tax differences~~compared to operating income in the ~~balance sheet.~~

same period in the prior year, partially offset by higher net investment income (loss) in the current period compared to the same period in the prior year.

LIQUIDITY AND CAPITAL RESOURCES

At ~~December~~March 31, ~~2017,~~2024, the Company had net working capital (current assets minus current liabilities) of approximately ~~$13.4~~$38.6 million, an increase of $1.2 million, or 3.1 percent, since June 30, 2023, and a current ratio (current assets divided by current liabilities) of ~~9.6~~17.5 to 1. With approximately ~~$3.0~~$27.5 million in cash and cash equivalents, an increase of $2.1 million, or 8.1 percent since June 30, 2023, and ~~approximately $10.7~~$11.5 million in ~~unrestricted marketable~~ securities carried at fair value on a recurring basis, excluding convertible securities, which together comprise approximately 73.8 percent of total assets, the Company has adequate liquidity to meet its current obligations. ~~Total U.S. Global Investors, Inc.~~

The increase in cash, and accordingly, net working capital, was primarily due to net cash provided by operating activities of $853,000, proceeds from principal paydowns of $2.3 million, and proceeds from sales of corporate investments of $1.8 million; offset by repurchases of the Company's common stock of $1.7 million, and dividends paid of $965,000. Consolidated shareholders’ equity ~~is approximately $39.0~~at March 31, 2024, was $49.8 million, ~~with cash, cash~~ ~~equivalents, and unrestricted marketable securities comprising 30.4~~a decrease of $2.4 million, or 4.5 percent ~~of total assets. Approximately $1.4 million in cash in Galileo is included in the amounts above. USGI would be required~~since June 30, 2023. The decrease was primarily due to ~~accrue and pay taxes to repatriate (i.e., bring back into the U.S.) these funds, and there is no current intention to repatriate. However, the Company is still evaluating the provisions~~repurchases of the ~~Tax Cuts and Jobs Act that was enacted in December 2017 and may change its intent to repatriate in~~Company's common stock of $1.8 million, dividends declared of $954,000, the ~~future.~~

Asimpact of ~~December~~ASU 2016-13 adoption of $183,000, other comprehensive loss of $517,000, offset by net income of $1.0 million, for the nine months ended March 31, ~~2017, the Company has no borrowings or long-term liabilities except for deferred taxes. The Company’s primary commitment going forward is for operating expenses.~~ 2024.

The Company also has access to a $1 million credit facility, which can be utilized for working capital purposes. The credit agreement requires the Company to maintain certain covenants; the Company has been in compliance with these covenants during the current fiscal year. The credit agreement ~~will expire~~expires on May ~~3, 2018,~~31, 2024, and the Company intends to renew annually. The credit facility is collateralized by approximately $1 million, ~~at December 31, 2017,~~included in restricted cash on the Consolidated Balance Sheets, held in deposit in a money market account at the financial institution that provided the credit facility. As of ~~December~~March 31, ~~2017, the~~2024, this credit facility ~~remains~~remained unutilized by the Company.

Investment advisory contracts pursuant to the Investment Company Act of 1940 and related affiliated contracts in the U.S., by law, may not exceed one year in length and, therefore, must be renewed at least annually after an initial two-year term. The investment advisory and ~~administrative services~~related contracts between the Company and USGIF have been renewed through September ~~2018, and management anticipates that~~2024. The advisory agreement for the contracts will be renewed. The investment advisory contract between the Company and U.S. Global Jets ETF expires in April 2018, and management anticipates that the contract will be renewed. The investment advisory contract between the Company and U.S. Global GO GOLD and Precious Metal Miners ETF is in its initial two-year term and will not expire until June 2019. Galileo’s investment management agreement with Canadian registered mutual funds may be terminated each September 30 with a 180-day prior notice of unitholders’ resolution. Galileo’s advisory agreements with other advisory clients can be terminated upon 30-day written notice. The Company’s two offshore clients have completed their respective liquidations, and no fees will be received in the future.

U.S.-based ETFs has been renewed through July 2024.

The primary cash requirements are for operating activities. The Company also uses cash to purchase investments, pay dividends and repurchase Company stock. The cash outlays for investments and dividend payments are discretionary and management or the Board may discontinue as deemed necessary. The stock repurchase plan is approved through December 31, ~~2018,~~2024, but may be suspended or discontinued at any time. Cash and ~~unrestricted marketable~~securities recorded at fair value on a recurring basis, excluding convertible securities, of approximately ~~$13.7~~$39.0 million are available to fund current activities.

Management believes current cash reserves, investments, and financing available will be sufficient to meet foreseeable cash needs for operating activities.

CRITICAL ACCOUNTING ESTIMATES

For a discussion of other critical accounting policies that the Company follows, please refer to the notes to the ~~consolidated financial statements~~Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended June 30, ~~2017.~~

2023. There have been no material changes to our critical accounting policies, except for the Company's adoption of a new accounting standard as discussed in Item 1, Financial Statements at Note 2, Basis of Presentation and Consolidation, of this Quarterly Report on Form 10-Q.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

COVID-19 had an adverse effect on global and domestic financial markets, which may reoccur and continue for an undetermined period. This may adversely affect assets under management and thus the Company’s revenues and operating results. Market declines also affect the valuation of the Company’s corporate investments, which also adversely affects the Company’s balance sheet and results of operations.

Macroeconomic declines, including inflation; negative political developments, including volatile market conditions due to investor concerns regarding inflation, and the Russia-Ukraine and Israel-Palestine conflicts; adverse market conditions, including cryptocurrency market disruptions; and catastrophic events may cause a decline in the Company’s revenue, an increase in the Company’s costs, negatively affect the Company’s operating results, adversely affect the Company’s cash flow, and could result in a decline in the Company’s stock price.

Investment Management and Administrative Services Fees

Revenues are generally based upon a percentage ~~of the market value~~ of assets under management in accordance with contractual agreements. Accordingly, fluctuations in the financial markets have a direct effect on the Company’s operating results. A significant portion of assets under management in equity funds have exposure to international markets and/or natural resource sectors, which may experience volatility. In addition, fluctuations in interest rates may affect the value of assets under management in fixed income funds.

Performance Fees

USGIF advisory fees are comprised of two components: a base management fee and a performance fee. The performance fee is a fulcrum fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months.

As a result, the Company’s revenues are subject to volatility beyond market-based fluctuations discussed in the investment management and administrative services fees section above. ~~For the three and six months ended December 31, 2017,~~Due to these performance adjustments, the Company realized a decrease in its USGIF base advisory fee of ~~$192,000~~$101,000 and $308,000, respectively, due to these performance adjustments. For the three and six months ended December 31, 2016, the Company realized a (decrease) increase in its USGIF base advisory fee of ($9,000) and $30,000, respectively, due to these performance adjustments.

Galileo may receive performance fees from certain clients when market appreciation or realized net gains exceeds established benchmarks. Galileo recorded performance fees of $464,000 from these clients for three and six months ended December 31, 2017. The majority of the performance fees recorded in the current period are annual performance fees calculated at calendar year-end. Galileo recorded no performance fees from these clients$344,000 for the three and ~~six~~nine months ended ~~December~~March 31, ~~2016.~~

2024, respectively, and $109,000 and $390,000 for the three and nine months ended March 31, 2023, respectively.

Corporate Investments

The Company’s Consolidated Balance Sheets ~~includes~~include substantial amounts of assets whose fair ~~value is~~values are subject to market ~~risks.~~ risk. The market risks are primarily associated with equity prices and foreign currency exchange rates. The fair values of corporate investments with exposure to the cryptocurrency industry are subject to considerable volatility.

The Company’s investment activities are reviewed and monitored by Company compliance personnel, and various reports are provided to certain investment advisory clients. Written procedures are in place to manage compliance with the code of ethics and other policies affecting the Company’s investment practices.

Equity price risk

Due to the Company’s investments in securities ~~recorded~~carried at fair value, equity price fluctuations represent a market risk factor affecting the Company’s consolidated financial position. The carrying values of investments subject to equity price risks are based on quoted market prices or, if not actively traded, management’s estimate of fair value as of the balance sheet date. Market prices fluctuate, and the amount realized in the subsequent sale of an investment may differ significantly from the reported ~~market~~fair value.

The Company’s investment activities are reviewed and monitored by Company compliance personnel, and various reports are provided to certain investment advisory clients. Written procedures are in place to manage compliance with the code of ethics and other policies affectingfollowing table summarizes the Company’s ~~investment practices.~~

~~The table below summarizes the Company’s~~equity price risks in securities recorded at fair value on a recurring basis as of ~~December~~March 31, ~~2017,~~2024, and shows the effects of a hypothetical 25 percent increase and a 25 percent decrease in market prices.

(dollars in thousands)
Fair Value at
December 31, 2017
Hypothetical Percentage Change Estimated Fair Value After Hypothetical Price Change Increase (Decrease) in Shareholders’ Equity, Net of Tax
Trading securities ¹ $ 7,433 25% increase $ 9,291 $ 1,858
25% decrease $ 5,575 $ (1,858 )
Available-for-sale securities ² $ 22,372 25% increase $ 27,965 $ 4,584
25% decrease $ 16,779 $ (4,584 )

				Estimated Fair Value		Estimated Increase
	Fair Value at		Hypothetical	After Hypothetical		(Decrease) in
(dollars in thousands)	March 31, 2024		Percentage Change	Price Change		Net Income (Loss)(1)
Trading securities at fair value	$	11,506	25% increase	$	14,383	$	2,272
			25% decrease	$	8,630	$	(2,272	)
Embedded derivatives at fair value ⁽²⁾	$	29	25% increase	$	36	$	6
			25% decrease	$	22	$	(6	)

^11.

~~Unrealized and realized~~

Changes in unrealized gains and losses on embedded derivatives and trading securities at fair value are included in earnings in the ~~statement~~Consolidated Statements of ~~operations.~~Operations. The estimated increase (decrease) is after income taxes at the statutory rate in effect as of the balance sheet date.

^22.

~~Unrealized gains~~

An embedded derivative and ~~losses~~its related host contract represent one legal contract and are combined within the investments in available-for-sale debt securities on ~~available-for-sale securities are excluded from earnings and recorded in other comprehensive income as a component of shareholders’ equity until realized.~~the Consolidated Balance Sheets.

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The selected hypothetical changes do not reflect what could be considered best- or worst-case scenarios. Results could be significantly different due to both the nature of markets and the concentration of the Company’s investment portfolio.

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~~A substantial portion~~

COVID-19 had an effect on volatility in global and domestic financial markets, which may reoccur and continue for an undetermined period. This may not only adversely affect the Company’s assets under management but also the valuation of the ~~available-for-sale securities recorded at fair value~~Company’s corporate investments.

The embedded derivatives subject to equity price risk shown in the above table ~~is an investment~~are related to investments in convertible debentures of HIVE ~~Blockchain~~Digital Technologies Ltd. (“HIVE”)~~, which was valued at $19.1 million at December 31, 2017.~~. HIVE is discussed in more detail in Note 2,3, Investments, in the notes to ~~the~~ Consolidated Financial Statements of this Quarterly Report on Form 10-Q. HIVE is a company that is headquartered ~~and traded~~ in Canada with cryptocurrency mining facilities in Iceland, Sweden and ~~Sweden,~~Canada. Cryptocurrency markets and related stocks have been, and are expected to continue to be, volatile. ~~Cryptocurrency mining is considered an early stage high-risk industry, and the nature of mining is expected to evolve.~~ There is potential for significant volatility in the market price of HIVE, which could materially impact the investment’s value included on the ~~balance sheet~~Consolidated Balance Sheets and unrealized gain (loss) recognized in ~~comprehensive income.~~

~~In addition~~net investment income (loss).

Interest rate risk

Due to the Company’s investments in debt securities ~~recorded~~carried at fair value, ~~discussed above,~~interest rate fluctuations represent a market risk factor affecting the ~~Company also has an equity method investment~~Company’s consolidated financial position. Debt securities may fluctuate in value due to changes in interest rates. Typically, investments subject to interest rate risk will decrease in value when interest rates rise and increase in value when interest rates decline. Fluctuations in interest rates could have a material impact on the ~~amount of $3.3 million at December 31, 2017. As discussed further~~Company’s investments in ~~Note 2, Investments, to~~debt securities included on the Consolidated Financial Statements of this Quarterly Report on Form 10-Q, this equity method investment is in the Galileo Partners Fund, a Canadian unit trust investment fund managed by Galileo. This fund has a concentrated investment in HIVE, which is also held by the Company as described above. This concentration may result in volatility in the valuation of the Galileo Partners Fund. Under the equity method, the Company’s proportional share of the fund’s net income or loss, which primarily consists of realizedBalance Sheets, and unrealized gains (losses) and ~~losses on investments offset by fund expenses, is~~interest income recognized in ~~the Company’s earnings. Due to the concentrated nature of the fund’s investments, the potential significant volatility in HIVE’s valuation could cause the fund’s~~ net investment income ~~or loss to vary significantly from period to period, which in turn would be reflected in the Company’s earnings. Subsequent to December 31, 2017, the Company redeemed a~~(loss).

Foreign currency risk

A portion of ~~its investment in the Galileo Partners Fund. See Note 12, Subsequent Event, to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q, for further information.~~

~~Foreign currency risk~~

The Company’s subsidiary Galileo conducts its business in Canada. Galileo’s foreign currency financial statements are translated into U.S. dollars in the financial statement consolidation process. Adverse changes in foreign currency exchange rates would lower the carrying value of Galileo’s assetscash and reduce its results in the consolidated U.S. financial statements. For the three and six months ended December 31, 2017, Galileo represented 37.7 percent and 27.8 percent of net operating revenues and 28.7 percent and 11.9 percent of consolidated income before income taxes, and at December 31, 2017, represented 4.7 percent of total assets (see Note 10, Financial Information by Business Segment, to the Consolidated Financial Statements of this Quarterly Report on Form 10-Q). Certaincertain corporate investments ~~including the Company’s equity method investment,~~ are held in foreign currencies, primarily Canadian. Adverse changes in foreign currency exchange rates would ~~also~~ lower the value of those cash accounts and corporate investments. Certain assets under management also have exposure to foreign currency fluctuations in various markets, which could have an impact on their valuation and thus the revenue received by the Company.

Indirect exposure to cryptocurrencies risk

Cryptocurrencies (also referred to as “virtual currencies” and “digital currencies”) are digital assets that are designed to act as a medium of exchange. Although the Company has no current intention of directly investing in cryptocurrencies, the Company has indirect exposure to cryptocurrencies by investing in securities of issuers with exposure to the cryptocurrency industry. Cryptocurrencies (some of the most well-known include Bitcoin, Dogecoin and Ethereum) are not backed by any government, corporation, or other identified body. Trading markets for cryptocurrencies are often unregulated and may be more exposed to operational or technical issues as well as the potential for fraud or manipulation than established, regulated exchanges for securities, derivatives and traditional currencies.

Cryptocurrencies have been subject to significant fluctuations in value. The value of a cryptocurrency may significantly fluctuate precipitously (including declining to zero) and unpredictably for a variety of reasons, including, but not limited to: investor perceptions and expectations; regulatory changes; general economic conditions; adoption and use in the retail and commercial marketplace; public opinion regarding the environmental impact of the creation (“minting” or “mining”) of cryptocurrency; confidence in, and the maintenance and development of, its network and open-source software protocols such as blockchain for ensuring the integrity of cryptocurrency transactional data; and general risks tied to the use of information technologies, including cybersecurity risks.

ITEM 4. CONTROLS AND PROCEDURES

An evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of ~~December~~March 31, ~~2017,~~2024, was conducted under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were not effective as of ~~December~~March 31, ~~2017.~~

~~There~~2024, due to the existence of the material weaknesses in internal control over financial reporting described below (which we view as an integral part of our disclosure controls and procedures).

The material weaknesses in internal controls over financial reporting that were disclosed in our annual report on Form 10-K as of and for the year ended June 30, 2023, were also present as of March 31, 2024. Notwithstanding the material weaknesses, we believe that the Consolidated Financial Statements included in this quarterly report on Form 10-Q fairly present, in all material respects, our financial position, results of operations and cash flows as of the date, and for the period, presented, in conformity with U.S. GAAP.

Other than as described above, there has been no change in the Company’s internal control over financial reporting that occurred during the three and nine months ended ~~December~~March 31, ~~2017,~~2024, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1A. RISK FACTORS

~~The following modifications to risk factors is intended to supplement and should be read along with the~~

For a discussion of ~~other~~ risk factors which could affect the Company, ~~included in~~please refer to Item 1A, “Risk Factors” in the Annual Report on Form 10-K for the year ended June 30, ~~2017.~~

~~Additional Risk Factor:~~

~~The Company has exposure~~2023. There have been no material changes since the fiscal year end to the ~~cryptocurrency markets through its investments.~~

The Company has invested in a security in the cryptocurrency mining industry through its corporate investments and indirectly through an investment accounted for under the equity method of accounting. Cryptocurrency markets and related stocks have been, and are expected to continue to be, volatile. Cryptocurrency mining is considered an early stage high-risk industry, and the nature of mining is expected to evolve. There is potential for significant volatility in the valuation of the Company’s cryptocurrency-related investments.

~~Modifications to Risk Factors:~~

~~The market price and trading volume of the Company’s class A common stock may be volatile, which could result in rapid and substantial losses for the Company’s stockholders.~~

~~(Additional discussion added to~~ risk ~~factor)~~

In addition, the Company has invested in a security in the cryptocurrency mining industry through its corporate investments and indirectly through an investment accounted for under the equity method of accounting. As discussed above, cryptocurrency markets and related stocks have been, and are expected to continue to be, volatile. This volatility may materially impact the Company’s financial statements and thus affect the Company’s common stock market price. In addition, the price of the Company’s common stock may fluctuate to the extent that shareholders invest in the Company’s common stock as a proxy for cryptocurrency. The investing public may be influenced by future anticipated appreciation or depreciation in value of cryptocurrencies or blockchain generally, factors over which the Company has little or no influence or control. The Company’s stock price may also be subject to volatility due to supply and demand factors associated with few or limited public company options for investment in the segment, which may change over time. The magnitude of cryptocurrency volatility in relation to the broader market is illustrated by the daily standard deviation of the following over the one-year period ended December 31, 2017: the S&P 500 Index – 0.4 percent; gold stocks represented by the NYSE Arca Gold Miners Index – 1.4 percent; Bitcoin – 5.9 percent; and the Company’s class A common stock – 7.1 percent.

listed therein.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

(dollars in thousands, except price data)
Period
Total Number of Shares
Purchased ¹
Total Amount Purchased
Average Price Paid Per Share ²

Total Number of Shares Purchased as Part of Publicly Announced Plan ³
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan
10-01-17 to 10-31-17 10,000 $ 23 $ 2.29 10,000 $ 2,679
11-01-17 to 11-31-17 19,748 64 3.26 19,748 2,615
12-01-17 to 12-31-17 7,000 30 4.29 7,000 2,585
Total 36,748 $ 117 $ 3.19 36,748

(dollars in thousands, except price data)
	Total Number						Total Number of Shares		Approximate Dollar Value
	of Shares		Total Amount		Average Price		Purchased as Part of		of Shares that May Yet Be
Period	Purchased ⁽¹⁾		Purchased		Paid Per Share ⁽²⁾		Publicly Announced Plan⁽³⁾		Purchased Under the Plan
01-01-24 to 01-31-24		51,109	$	144	$	2.82		51,109	$	4,856
02-01-24 to 02-29-24		102,636		281	$	2.73		102,636	$	4,575
03-01-24 to 03-31-24		57,537		152	$	2.64		57,537	$	4,423
Total		211,282	$	577	$	2.73		211,282

^11.

The Board of Directors of the company approved on December 7, 2012, and has renewed ~~on December 12, 2013, December 10, 2014, December 9, 2015, December 6, 2016, and December 5, 2017, a repurchase~~annually, repurchases of up to $2.75 million in each of calendar years 2013 ~~2014, 2015, 2016, 2017, and 2018, respectively,~~through 2022 of its outstanding class A common stock from time to time on the open market in accordance with all applicable rules and regulations. On February 25, 2022, the Company announced that the Board of Directors of the Company approved an increaseto the limit of its annual share buyback program from $2.75 million to $5.0 million.

^22.

The average price paid per share of stock repurchased under the stock repurchase program includes the commissions paid to brokers.

^33.

The repurchase plan was approved on December 7, 2012, and renewed on December 12, 2013, December 10, 2014, December 9, 2015, December 6, 2016, and December 5, 2017, and will continue through calendar year 2018.

The total amount of shares that may be repurchased in ~~2018~~2024 under the ~~renewed~~ program is ~~$2.75~~$5.0 million.

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~~ITEM 5. OTHER INFORMATION~~

Investors and others should note that the Company announces material financial information to its investors using the website (www.usfunds.com), SEC filings, press releases, public conference calls and webcasts. The Company also uses social media to communicate with its customers and the public about the Company. It is possible that the information it posts on social media could be deemed to be material information. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information it posts on social media channels listed below. This list may be updated from time to time.

~~https://www.facebook.com/USFunds~~

~~https://twitter.com/USFunds~~

~~https://twitter.com/USGlobalETFs~~

~~https://www.linkedin.com/company/u-s-global-investors~~

~~https://www.instagram.com/usglobal~~

~~https://pinterest.com/usfunds~~

~~https://www.youtube.com/c/usglobalinvestorssanantonio~~

~~https://www.youtube.com/channel/UCDkX1zvbWPyWc99esHOhwRQ~~

~~Information contained on the Company’s website or on social media channels is not deemed part of this report.~~

ITEM 6. EXHIBITS

1. Exhibits –
31 31.1	Rule 13a-14(a) Certifications ~~of Chief Executive Officer and Chief Financial Officer Pursuant to~~(under Section 302 of the Sarbanes-Oxley Act of ~~2002.~~2002), included herein.
32 32.1	Section 1350 Certifications ~~of Chief Executive Officer and Chief Financial Officer Pursuant to~~(under Section 906 of the Sarbanes-Oxley Act Of ~~2002.~~2002), included herein.

101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

		U.S. GLOBAL INVESTORS, INC.

DATED:	~~February 14, 2018~~ May 9, 2024	BY: /s/ Frank E. Holmes
		Frank E. Holmes
		Chief Executive Officer

DATED:	~~February 14, 2018~~May 9, 2024	BY: /s/ Lisa C. Callicotte
		Lisa C. Callicotte
		Chief Financial Officer

Page 30

~~Page 29~~

Texas	74-1598370
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

7900 Callaghan Road San Antonio, Texas	78229 (Zip Code)
(Address of principal executive offices)

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐ ~~(Do not check if a smaller reporting company)~~ ☒	Smaller reporting company ☒
	Emerging growth company ☐



PART I. FINANCIAL INFORMATION	1

ITEM 1. FINANCIAL STATEMENTS	1
CONSOLIDATED BALANCE SHEETS (UNAUDITED)	1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)	2
CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME (LOSS) (UNAUDITED)	3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)	4
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)	4 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	5 7
ITEM 2. ~~MANAGEMENT’S~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20 22
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	25 26
ITEM 4. CONTROLS AND PROCEDURES	26 27

PART II. OTHER INFORMATION	27 28

ITEM 1A. RISK FACTORS	27 28
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	27 28
~~ITEM 5. OTHER INFORMATION~~	28
ITEM 6. EXHIBITS	28 29

SIGNATURES	29 30

	*March 31, 2024*			*June 30, 2023*
(dollars in thousands)	(unaudited)
Assets
Current Assets
Cash and cash equivalents	$	27,460		$	25,401
Restricted cash		1,000			1,000
Investments in trading securities at fair value, current		10,071			11,642
Accounts and other receivables (net of allowance for credit losses of $0, and $0, respectively)		1,027			1,245
Tax receivable		749			576
Prepaid expenses		635			510
Total Current Assets		40,942			40,374

Net Property and Equipment		1,154			1,138

Other Assets
Deferred tax asset		1,840			1,920
Investments in trading securities at fair value, non-current		1,435			1,563
Investments in available-for-sale debt securities at fair value (amortized cost: $6,651, and $7,729, respectively) (net of allowance for credit losses of $0, and $0, respectively)		5,190			7,008
Investments in held-to-maturity debt securities at amortized cost		1,000			1,000
Less: Allowance for credit losses		(157	)		-
Investments in held-to-maturity debt securities, net of allowance for credit losses		843			1,000
Other investments		1,114			2,388
Financing lease, right of use assets		45			65
Other assets, non-current		209			217
Total Other Assets		10,676			14,161
Total Assets	$	52,772		$	55,673
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	58		$	143
Accrued compensation and related costs		306			1,165
Dividends payable		317			329
Financing lease liability, short-term		31			28
Other accrued expenses		1,629			1,274
Total Current Liabilities		2,341			2,939

Long-Term Liabilities
Deferred tax liability		20			4
Reserve for uncertain tax positions		549			496
Financing lease liability, long-term		16			38
Total Long-Term Liabilities		585			538
Total Liabilities		2,926			3,477

Commitments and Contingencies (Note 14)

Shareholders’ Equity
Common stock (class A) - $0.025 par value; nonvoting; 28,000,000 shares authorized; 13,866,999 shares issued at March 31, 2024, and June 30, 2023; 11,908,737 and 12,496,674 shares outstanding at March 31, 2024, and June 30, 2023, respectively		347			347
Common stock (class B) - $0.025 par value; nonvoting; 4,500,000 shares authorized; no shares issued		-			-
Convertible common stock (class C) - $0.025 par value; voting; 3,500,000 shares authorized; 2,068,549 shares issued and outstanding at March 31, 2024, and June 30, 2023		52			52
Additional paid-in-capital		16,444			16,442
Treasury stock, class A shares at cost; 1,958,262 and 1,370,325 shares at March 31, 2024, and June 30, 2023, respectively		(5,456	)		(3,740	)
Accumulated other comprehensive income, net of tax		831			1,348
Retained earnings		37,628			37,747
Total Shareholders’ Equity		49,846			52,196
Total Liabilities and Shareholders’ Equity	$	52,772		$	55,673

Assets	December 31, 2017			June 30, 2017
(dollars in thousands)	(UNAUDITED)
Current Assets
Cash and cash equivalents	$	2,977		$	3,958
Restricted cash		1,000			1,000
Investment securities - trading, at fair value		7,433			9,720
Accounts and other receivables		1,177			520
Note receivable		1,977			1,952
Prepaid expenses		399			315
Total Current Assets		14,963			17,465

Net Property and Equipment		2,092			2,212

Other Assets
Investment securities - available-for-sale, at fair value		22,372			3,401
Other investments		2,109			2,130
Equity method investment		3,252			-
Note receivable, long term		234			234
Other assets, long term		53			78
Total Other Assets		28,020			5,843
Total Assets	$	45,075		$	25,520
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	198		$	118
Accrued compensation and related costs		425			390
Dividends payable		114			114
Other accrued expenses		827			544
Total Current Liabilities		1,564			1,166

Long-Term Liabilities
Deferred tax liability		3,923			-
Total Long-Term Liabilities		3,923			-
Total Liabilities		5,487			1,166

Commitments and Contingencies (Note 11)

Shareholders’ Equity
Common stock (class A) - $0.025 par value; nonvoting; authorized, 28,000,000 shares; issued, 13,866,691 shares and 13,866,601 shares at December 31, 2017, and June 30, 2017, respectively		347			347
Common stock (class B) - $0.025 par value; nonvoting; authorized, 4,500,000 shares; no shares issued		-			-
Convertible common stock (class C) - $0.025 par value; voting; authorized, 3,500,000 shares; issued, 2,068,857 shares and 2,068,947 shares at December 31, 2017, and June 30, 2017, respectively		52			52
Additional paid-in-capital		15,647			15,646
Treasury stock, class A shares at cost; 790,421 and 751,303 shares at December 31, 2017, and June 30, 2017, respectively		(1,876	)		(1,760	)
Accumulated other comprehensive income, net of tax		13,703			264
Retained earnings		11,112			9,321
Total U.S. Global Investors Inc. Shareholders’ Equity		38,985			23,870
Non-Controlling Interest in Subsidiary		603			484
Total Shareholders’ Equity		39,588			24,354
Total Liabilities and Shareholders’ Equity	$	45,075		$	25,520

	Six Months Ended December 31,						Three Months Ended December 31,
(dollars in thousands, except per share data)	2017			2016			2017			2016
Operating Revenues
Advisory fees	$	3,362		$	3,460		$	1,929		$	1,569
Administrative services fees		121			163			64			73
		3,483			3,623			1,993			1,642
Operating Expenses
Employee compensation and benefits		2,041			1,886			1,140			899
General and administrative		1,862			1,733			914			863
Advertising		86			80			27			51
Depreciation and amortization		122			127			61			63
		4,111			3,826			2,142			1,876
Operating Loss		(628	)		(203	)		(149	)		(234	)
Other Income
Investment income		452			502			243			249
Income from equity method investment		2,731			-			1,218			-
Other income		17			-			14			-
		3,200			502			1,475			249
Income Before Income Taxes		2,572			299			1,326			15
Provision for Income Taxes
Tax expense (benefit)		452			10			442			(10	)
Net Income		2,120			289			884			25
Less: Net Income Attributable to Non-Controlling Interest		101			18			135			17
Net Income Attributable to U.S. Global Investors, Inc.	$	2,019		$	271		$	749		$	8

Earnings Per Share Attributable to U.S. Global Investors, Inc.
Basic	$	0.13		$	0.02		$	0.05		$	-
Diluted	$	0.13		$	0.02		$	0.05		$	-

Basic weighted average number of common shares outstanding		15,171,620			15,229,845			15,160,589			15,218,734
Diluted weighted average number of common shares outstanding		15,171,620			15,229,845			15,160,589			15,218,734

	*Common Stock*				*Convertible Common Stock*						*Treasury Stock*						*Accumulated*
	*(class A)*				*(class C)*				*Additional*								*Other*
									*Paid-in*								*Comprehensive*			*Retained*
(dollars in thousands)	*Shares*		*Par Value*		*Shares*		*Par Value*		*Capital*		*Shares*			*Cost*			*Income (Loss)*			*Earnings*			*Total*
Balance at June 30, 2023		13,866,999	$	347		2,068,549	$	52	$	16,442		1,370,325		$	(3,740	)	$	1,348		$	37,747		$	52,196
Impact of ASU 2016-13 adoption, net of tax (Note 2)		-		-		-		-		-		-			-			-			(183	)		(183	)
Balance at June 30, 2023 (as adjusted for change in accounting principle)		13,866,999	$	347		2,068,549	$	52	$	16,442		1,370,325		$	(3,740	)	$	1,348		$	37,564		$	52,013
Repurchases of shares of Common Stock (class A), including excise tax		-		-		-		-		-		198,213			(617	)		-			-			(617	)
Issuance of stock under ESPP of shares of Common Stock (class A)		-		-		-		-		2		(5,494	)		15			-			-			17
Dividends declared		-		-		-		-		-		-			-			-			(322	)		(322	)
Other comprehensive income (loss), net of tax		-		-		-		-		-		-			-			(214	)		-			(214	)
Net income (loss)		-		-		-		-		-		-			-			-			(176	)		(176	)
Balance at September 30, 2023		13,866,999	$	347		2,068,549	$	52	$	16,444		1,563,044		$	(4,342	)	$	1,134		$	37,066		$	50,701
Repurchases of shares of Common Stock (class A), including excise tax		-		-		-		-		-		196,295			(566	)		-			-			(566	)
Issuance of stock under ESPP of shares of Common Stock (class A)		-		-		-		-		-		(6,100	)		17			-			-			17
Dividends declared		-		-		-		-		-		-			-			-			(320	)		(320	)
Other comprehensive income (loss), net of tax		-		-		-		-		-		-			-			(171	)		-			(171	)
Net income (loss)		-		-		-		-		-		-			-			-			1,229			1,229
Balance at December 31, 2023		13,866,999	$	347		2,068,549	$	52	$	16,444		1,753,239		$	(4,891	)	$	963		$	37,975		$	50,890
Repurchases of shares of Common Stock (class A), including excise tax		-		-		-		-		-		211,282			(582	)		-			-			(582	)
Issuance of stock under ESPP of shares of Common Stock (class A)		-		-		-		-		-		(6,259	)		17			-			-			17
Dividends declared		-		-		-		-		-		-			-			-			(312	)		(312	)
Other comprehensive income (loss), net of tax		-		-		-		-		-		-			-			(132	)		-			(132	)
Net income (loss)		-		-		-		-		-		-			-			-			(35	)		(35	)
Balance at March 31, 2024		13,866,999	$	347		2,068,549	$	52	$	16,444		1,958,262		$	(5,456	)	$	831		$	37,628		$	49,846

	*Nine Months Ended March 31,*
(dollars in thousands)	*2024*			*2023*
Cash Flows from Operating Activities:
Net income (loss)	$	1,018		$	2,520
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion		(103	)		(198	)
Net recognized (gain) loss on disposal of fixed assets		-			3
Net realized (gains) losses on securities		5,928			(1,286	)
Unrealized (gains) losses on securities		(5,594	)		2,504
Investment basis adjustment		-			(5	)
Provision for deferred taxes		282			(265	)
Allowance for credit losses		(75	)		-
Changes in operating assets and liabilities:
Accounts and other receivables		45			754
Prepaid expenses and other assets		(97	)		(146	)
Accounts payable and other accrued liabilities		(551	)		(1,252	)
Total adjustments		(165	)		109
Net cash provided by (used in) operating activities		853			2,629
Cash Flows from Investing Activities:
Purchase of property and equipment		(179	)		(14	)
Purchase of trading securities at fair value, non-current		(219	)		-
Purchase of other investments		-			(663	)
Proceeds on sale of trading securities at fair value, current		1,600			350
Proceeds on sale of trading securities at fair value, non-current		179			-
Proceeds from principal paydowns of available-for-sale debt securities at fair value		2,250			2,250
Return of capital on other investments		259			-
Net cash provided by (used in) investing activities		3,890			1,923
Cash Flows from Financing Activities:
Principal payments on financing lease		(22	)		(20	)
Issuance of common stock		51			43
Repurchases of common stock		(1,748	)		(938	)
Dividends paid		(965	)		(1,004	)
Net cash provided by (used in) financing activities		(2,684	)		(1,919	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		2,059			2,633
Beginning cash, cash equivalents, and restricted cash		26,401			23,314
Ending cash, cash equivalents, and restricted cash	$	28,460		$	25,947

Supplemental Disclosures of Non-Cash Investing and Financing Activities
Dividends declared but not paid	$	317		$	332
Excise tax liability accrued on stock repurchases	$	17		$	-
Unsettled purchases of other investments	$	-		$	186
Unsettled class A common stock repurchases	$	11		$	-

Supplemental Disclosures of Cash Flow Information
Cash paid for income taxes	$	250		$	470

	*Nine Months Ended March 31, 2023*							*Three Months Ended March 31, 2023*
	As							As
	*Previously*		*Immaterial*			As		*Previously*		*Immaterial*			As
(dollars in thousands, except per share data)	*Reported*		*Revisions*			*Revised*		*Reported*		*Revisions*			*Revised*
Tax expense (benefit)	$	602	$	96		$	698	$	306	$	20		$	326
Net Income (Loss)	$	2,616	$	(96	)	$	2,520	$	1,640	$	(20	)	$	1,620

Earnings Per Share
Basic Net Income (Loss) per Share	$	0.18	$	(0.01	)	$	0.17	$	0.11	$	(0.00	)	$	0.11
Diluted Net Income (Loss) per Share	$	0.18	$	(0.01	)	$	0.17	$	0.11	$	(0.00	)	$	0.11

	December 31, 2017
(dollars in thousands)	Cost		Gains		(Losses)			Fair Value
Trading securities¹
Mutual funds - Fixed income	$	7,035	$	26	$	-		$	7,061
Mutual funds - Domestic equity		535		-		(163	)		372
Other		45		-		(45	)		-
Offshore fund		-		-		-			-
Total trading securities		7,615		26		(208	)		7,433
Available-for-sale securities²
Common stock - Domestic		-		-		-			-
Common stock - International		2,554		16,704		-			19,258
Corporate debt³		1,071		632		-			1,703
Mutual funds - Fixed income		1,000		-		(5	)		995
Mutual funds - Domestic equity		394		22		-			416
Other		-		-		-			-
Total available-for-sale securities⁴		5,019		17,358		(5	)		22,372
Total securities at fair value	$	12,634	$	17,384	$	(213	)	$	29,805

	Six Months Ended						Three Months Ended
(dollars in thousands)	December 31,						December 31,
Investment Income	2017			2016			2017			2016
Realized gains on sales of available-for-sale securities	$	31		$	31		$	24		$	31
Realized losses on sales of trading securities		(736	)		-			(82	)		-
Unrealized gains (losses) on trading securities		746			(26	)		60			(125	)
Realized foreign currency gains (losses)		(19	)		(5	)		3			(7	)
Other-than-temporary declines in available-for-sale securities		-			(16	)		-			-
Dividend and interest income		430			518			238			350
Total Investment Income	$	452		$	502		$	243		$	249

	December 31, 2017
	Less Than 12 Months					12 Months or Greater				Total
			Gross Unrealized					Gross Unrealized				Gross Unrealized
(dollars in thousands)	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
Available-for-sale securities
Common stock - Domestic	$	-	$	-		$	-	$	-	$	-	$	-
Common stock - International		-		-			-		-		-		-
Corporate debt		-		-			-		-		-		-
Mutual funds - Fixed income		995		(5	)		-		-		995		(5	)
Mutual funds - Domestic equity		-		-			-		-		-		-
Other		-		-			-		-		-		-
Total available-for-sale securities	$	995	$	(5	)	$	-	$	-	$	995	$	(5	)

	December 31, 2017
	Quoted Prices		Significant Other Inputs		Significant Unobservable Inputs
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Trading securities
Mutual funds - Fixed income	$	7,061	$	-	$	-	$	7,061
Mutual funds - Domestic equity		372		-		-		372
Other		-		-		-		-
Offshore fund investment measured at net asset value¹								-
Total trading securities		7,433		-		-		7,433
Available-for-sale securities
Common stock - Domestic		-		-		-		-
Common stock - International		158		19,100		-		19,258
Corporate debt		-		1,703		-		1,703
Mutual funds - Fixed income		995		-		-		995
Mutual funds - Domestic equity		416		-		-		416
Other		-		-		-		-
Total available-for-sale securities		1,569		20,803		-		22,372
Total securities at fair value	$	9,002	$	20,803	$	-	$	29,805

Galileo Partners Fund
Summary Financial Information
For the Period from August 31, 2017 (investment) to December 31, 2017
(dollars in thousands)
Realized gains on sales of investments	$	1,921
Unrealized gains on investments		9,612
Fund fees and expenses, including performance fees		(2,810	)
Net income of fund	$	8,723

Company's share of income from equity method investment	$	2,731

(dollars in thousands)	Unrealized gains (losses) on available-for-sale investments ¹			Foreign currency adjustment			Total
Six months ended December 31, 2017
Balance at June 30, 2017	$	461		$	(197	)	$	264
Other comprehensive income before reclassifications		16,923			53			16,976
Tax effect		(3,506	)		-			(3,506	)
Amount reclassified from AOCI		(31	)		-			(31	)
Tax effect		-			-			-
Net other comprehensive income for six months ended December 31, 2017		13,386			53			13,439
Balance at December 31, 2017	$	13,847		$	(144	)	$	13,703

Three Months Ended December 31, 2017
Balance at September 30, 2017	$	9,594		$	(161	)	$	9,433
Other comprehensive income before reclassifications		7,783			17			7,800
Tax effect		(3,506	)		-			(3,506	)
Amount reclassified from AOCI		(24	)		-			(24	)
Tax effect		-			-			-
Net other comprehensive income for quarter		4,253			17			4,270
Balance at December 31, 2017	$	13,847		$	(144	)	$	13,703

(dollars in thousands)	Investment Management Services			Investment Management Services - Canada		Corporate Investments		Consolidated
Six months ended December 31, 2017
Net operating revenues	$	2,514		$	969	$	-	$	3,483
Net other income	$	7		$	10	$	3,183	$	3,200
Income (loss) before income taxes	$	(915	)	$	305	$	3,182	$	2,572
Depreciation and amortization	$	116		$	6	$	-	$	122
Capital expenditures	$	-		$	-	$	-	$	-
Gross identifiable assets at December 31, 2017	$	8,702		$	2,137	$	34,236	$	45,075
Deferred tax asset								$	-
Consolidated total assets at December 31, 2017								$	45,075
Six months ended December 31, 2016
Net operating revenues	$	3,020		$	603	$	-	$	3,623
Net other income	$	-		$	-	$	502	$	502
Income (loss) before income taxes	$	(223	)	$	30	$	492	$	299
Depreciation and amortization	$	119		$	8	$	-	$	127
Capital expenditures	$	-		$	-	$	-	$	-
Three months ended December 31, 2017
Net operating revenues	$	1,242		$	751	$	-	$	1,993
Net other income	$	5		$	10	$	1,460	$	1,475
Income (loss) before income taxes	$	(515	)	$	381	$	1,460	$	1,326
Depreciation and amortization	$	58		$	3	$	-	$	61
Capital expenditures	$	-		$	-	$	-	$	-
Three months ended December 31, 2016
Net operating revenues	$	1,339		$	303	$	-	$	1,642
Net other income	$	-		$	-	$	249	$	249
Income (loss) before income taxes	$	(275	)	$	33	$	257	$	15
Depreciation and amortization	$	59		$	4	$	-	$	63
Capital expenditures	$	-		$	-	$	-	$	-

(dollars in thousands)	Fair Value at December 31, 2017		Hypothetical Percentage Change	Estimated Fair Value After Hypothetical Price Change		Increase (Decrease) in Shareholders’ Equity, Net of Tax
Trading securities ¹	$	7,433	25% increase	$	9,291	$	1,858
			25% decrease	$	5,575	$	(1,858	)
Available-for-sale securities ²	$	22,372	25% increase	$	27,965	$	4,584
			25% decrease	$	16,779	$	(4,584	)

(dollars in thousands, except price data)
Period	Total Number of Shares Purchased ¹		Total Amount Purchased		Average Price Paid Per Share ²		Total Number of Shares Purchased as Part of Publicly Announced Plan ³		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan
10-01-17 to 10-31-17		10,000	$	23	$	2.29		10,000	$	2,679
11-01-17 to 11-31-17		19,748		64		3.26		19,748		2,615
12-01-17 to 12-31-17		7,000		30		4.29		7,000		2,585
Total		36,748	$	117	$	3.19		36,748