PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial statements for the quarter ended **September 30, 2022**, show a decrease in **total assets** to **$59.3 million** from **$60.7 million** at **June 30, 2022**, with **net income** at **$118,000**, a significant drop from **$2.4 million** in the prior year, primarily due to lower **advisory fees** and **investment losses**, while **cash flow from operations** remained positive at **$1.2 million**, though lower than the prior year's **$2.4 million** Consolidated Balance Sheets (Unaudited) Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | June 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $23,287 | $22,314 | | Investments in securities at fair value, current | $11,963 | $12,138 | | Total Current Assets | $38,234 | $38,032 | | Total Assets | $59,323 | $60,694 | | **Liabilities & Equity** | | | | Total Current Liabilities | $3,597 | $4,132 | | Total Liabilities | $3,656 | $4,198 | | Total Shareholders' Equity | $55,667 | $56,496 | | Total Liabilities and Shareholders' Equity | $59,323 | $60,694 | Consolidated Statements of Operations (Unaudited) Quarterly Operating Results (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Advisory fees | $4,377 | $6,470 | | **Total Operating Revenues** | **$4,412** | **$6,521** | | Total Operating Expenses | $2,827 | $3,654 | | **Operating Income** | **$1,585** | **$2,867** | | Investment loss | ($1,447) | ($34) | | **Net Income** | **$118** | **$2,390** | | **Diluted Net Income per Share** | **$0.01** | **$0.16** | Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net Income | $118 | $2,390 | | Other Comprehensive Loss | ($491) | ($635) | | **Comprehensive Income (Loss)** | **($373)** | **$1,755** | Consolidated Statements of Shareholders' Equity (Unaudited) - **Total shareholders' equity** decreased from **$56.5 million** at **June 30, 2022**, to **$55.7 million** at **September 30, 2022**, driven by an **other comprehensive loss** of **$491,000**, **dividends** of **$335,000**, and **share repurchases** of **$133,000**, partially offset by **net income** of **$118,000**[15](index=15&type=chunk) Consolidated Statements of Cash Flows (Unaudited) Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,175 | $2,402 | | Net cash provided by investing activities | $261 | $3,211 | | Net cash used in financing activities | ($463) | ($294) | | **Net increase in cash** | **$973** | **$5,319** | | **Ending cash, cash equivalents, and restricted cash** | **$24,287** | **$20,755** | Notes to Consolidated Financial Statements (Unaudited) - The company's total exposure to **unconsolidated Variable Interest Entities (VIEs)**, primarily funds it advises, was **$12.6 million** at **September 30, 2022**[21](index=21&type=chunk)[22](index=22&type=chunk) - As of **September 30, 2022**, the company held investments carried at **fair value** of **$27.0 million**, representing **45.6%** of **total assets**, with a significant portion in **U.S. Global Investors Funds (USGIF)** (**$12.6 million**) and **HIVE Blockchain Technologies Ltd.** (**$13.4 million**)[30](index=30&type=chunk)[32](index=32&type=chunk) - **Advisory fees from ETFs** were **$3.9 million** for the quarter, down from **$5.3 million** YoY, while **USGIF advisory fees** were **$610,000**, down from **$966,000** YoY, and the company incurred a **performance fee penalty** of **$146,000** from **USGIF**, compared to earning a **$188,000 performance fee** in the prior-year quarter[82](index=82&type=chunk) - The company maintains a **monthly dividend**, which was **$0.0075 per share** from October through December 2022, and has a **share repurchase program**, increased to an **annual limit** of **$5.0 million**, under which it bought back **39,965 shares** for **$133,000** during the quarter[100](index=100&type=chunk)[101](index=101&type=chunk) Segment Performance (in thousands) - Q1 FY2023 | Segment | Net operating revenues | Investment loss | Income (loss) before income taxes | | :--- | :--- | :--- | :--- | | Investment Management Services | $4,412 | - | $1,661 | | Corporate Investments | - | ($1,447) | ($1,462) | | **Consolidated** | **$4,412** | **($1,447)** | **$199** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The company's **net income** for the quarter ended **September 30, 2022**, was **$118,000**, a significant decrease from **$2.4 million** in the prior-year period, primarily driven by a **32.3%** decline in **operating revenues** due to lower average **Assets Under Management (AUM)**, which fell **45.9%** year-over-year to **$2.3 billion**, compounded by an **investment loss** of **$1.4 million**, though partially offset by a **22.6%** reduction in **operating expenses**, mainly from lower **employee compensation**, while maintaining **adequate liquidity** with **$34.6 million** in **net working capital** Assets Under Management (AUM) Trend | Metric | Sep 30, 2022 | Sep 30, 2021 | | :--- | :--- | :--- | | Total AUM | $2.3 billion | $4.3 billion | | **Change** | **-45.9%** | | - **Operating revenues** decreased by **$2.1 million** (**32.3%**) YoY, mainly due to a **$1.8 million** drop in **base management fees** from lower **AUM** in **ETFs** and a negative swing of **$334,000** in **performance fees**[137](index=137&type=chunk)[138](index=138&type=chunk) - **Operating expenses** fell by **$827,000** (**22.6%**) YoY, primarily due to a **$749,000** decrease in **employee compensation** as a result of lower **performance-related bonuses**[137](index=137&type=chunk) - **Other loss** was **$1.4 million**, compared to other income of **$37,000** in the prior year, mainly because there were no **realized gains on security sales** in the current period, unlike the **$1.8 million** in gains realized in the prior-year period[138](index=138&type=chunk)[139](index=139&type=chunk) - The company had **net working capital** of **$34.6 million** and **cash and cash equivalents** of **$23.3 million** as of **September 30, 2022**, indicating **adequate liquidity**[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces significant **market risk** from multiple sources, with revenues directly tied to **Assets Under Management**, which fluctuate with financial markets, and **performance fees** adding another layer of revenue volatility, while **corporate investments** expose the company to **equity price**, **interest rate**, and **foreign currency risks**, with a substantial portion of this risk concentrated in its investments in **HIVE Blockchain Technologies Ltd.**, which is subject to the **highly volatile** **cryptocurrency market**, where a hypothetical **25%** change in the value of its **equity securities** would impact **net income** by approximately **$3.2 million** - Revenues are directly affected by **financial market fluctuations** impacting **AUM**, with significant exposure to **volatile international and natural resource sectors**[151](index=151&type=chunk) - **Corporate investments** are subject to **market risks**, including **equity prices** and **foreign currency rates**, with the **fair values** of investments exposed to the **cryptocurrency industry** noted as being **considerably volatile**[154](index=154&type=chunk) - A significant concentration of **equity price risk** exists in the company's investment in **HIVE Blockchain Technologies Ltd.**, a cryptocurrency mining company, whose stock price is **highly volatile**[162](index=162&type=chunk) Hypothetical Equity Price Risk Sensitivity Analysis | Security Type | Fair Value (Sep 30, 2022) | Hypothetical Change | Estimated Impact on Net Income (Loss) | | :--- | :--- | :--- | :--- | | Equity securities | $16,346 thousand | +/- 25% | +/- $3,228 thousand | [Controls and Procedures](index=37&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Based on an evaluation conducted by management, including the **CEO** and **CFO**, the company's **disclosure controls and procedures** were deemed **effective** as of the end of the quarter, **September 30, 2022**, and no **material changes** to the company's **internal control over financial reporting** occurred during the quarter - The **CEO** and **CFO** concluded that the company's **disclosure controls and procedures** were **effective** as of **September 30, 2022**[165](index=165&type=chunk) - There were **no changes** in **internal control over financial reporting** during the quarter that materially affected, or are reasonably likely to materially affect, these controls[166](index=166&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section states that there have been **no material changes** to the **risk factors** previously disclosed in the company's **Annual Report** on **Form 10-K** for the fiscal year ended **June 30, 2022** - The company refers to its **Form 10-K** for the year ended **June 30, 2022**, for a discussion of **risk factors**, noting **no material changes** have occurred since that filing[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During the three-month period ending **September 30, 2022**, the company repurchased a total of **39,965 shares** of its **Class A common stock** for approximately **$133,000** under its **publicly announced share buyback program**, which was increased in February 2022 to an **annual limit** of **$5.0 million** Issuer Purchases of Equity Securities (Q1 FY2023) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Jul-22 | 5,897 | $4.21 | | Aug-22 | 2,381 | $3.94 | | Sep-22 | 31,687 | $3.13 | | **Total** | **39,965** | **$3.34** | - The **Board of Directors** increased the **annual share buyback program limit** from **$2.75 million to $5.0 million** on February 25, 2022[169](index=169&type=chunk) [Exhibits](index=39&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the **Form 10-Q**, which primarily consist of the required **CEO** and **CFO certifications** under the **Sarbanes-Oxley Act** (**Sections 302 and 906**) and the **interactive data files (Inline XBRL)** for financial reporting - Exhibits filed include **Rule 13a-14(a)** and **Section 1350 certifications** by the **CEO** and **CFO**, along with various **Inline XBRL documents**[171](index=171&type=chunk) [Signatures](index=40&type=section&id=SIGNATURES) The report was duly signed and authorized on **November 10, 2022**, by **Frank E. Holmes**, **Chief Executive Officer**, and **Lisa C. Callicotte**, **Chief Financial Officer**[173](index=173&type=chunk)[175](index=175&type=chunk)

Part I of Annual Report on Form 10-K This part provides an overview of the Company's business operations, including its investment management services and corporate investments, along with associated risks, properties, legal proceedings, and regulatory environment [Item 1. Business](index=4&type=section&id=Item%201.%20Business) U.S. Global Investors, Inc. operates as a registered investment adviser with two segments: Investment Management Services for client funds and Corporate Investments, generating revenue from advisory fees and investment income, with total AUM decreasing by **31.2% to $2.9 billion** as of June 30, 2022, primarily due to ETF market depreciation [Introduction](index=4&type=section&id=Introduction) This section highlights that the report contains forward-looking statements subject to inherent risks and uncertainties, with no obligation for future updates - The report contains forward-looking statements subject to risks and uncertainties, and the Company undertakes no obligation to update them[10](index=10&type=chunk) [Business Segments](index=4&type=section&id=Business%20Segments) The Company operates two distinct business segments: Investment Management Services for client funds and Corporate Investments for its own account - The Company manages two business segments: Investment Management Services (offering products and services to USGIF and ETF clients) and Corporate Investments (investing for its own account to add growth and value to its cash position)[13](index=13&type=chunk) [Investment Management Services](index=4&type=section&id=Investment%20Management%20Services) The Company offers investment advisory and administrative services to USGIF and various ETFs, including the U.S. Global Jets ETF - The Company provides investment advisory and administrative services to U.S. Global Investors Funds (USGIF) and advisory services to several U.S.-based and one European-based ETFs, including the U.S. Global Jets ETF, U.S. Global GO GOLD and Precious Metal Miners ETF, and U.S. Global Sea to Sky Cargo ETF[13](index=13&type=chunk)[15](index=15&type=chunk)[17](index=17&type=chunk) Assets Under Management (AUM) by Fund Type | Fund Type (dollars in thousands) | June 30, 2022 | June 30, 2021 | | :------------------------------- | :------------ | :------------ | | **ETF Clients** | | | | Total Airline and Cargo | $2,473,770 | $3,617,752 | | Total Gold and Natural Resources | $76,609 | $102,635 | | **Total ETF Clients** | **$2,550,379**| **$3,720,387**| | **U.S. Global Investors Funds** | | | | Total Gold and Natural Resources | $228,413 | $341,997 | | Total Emerging Markets | $18,445 | $37,325 | | Total International Equity | $39,508 | $54,058 | | Total Bond | $71,161 | $75,842 | | **Total USGIF** | **$357,527** | **$509,222** | | **Total AUM** | **$2,907,906**| **$4,229,609**| * **Change:** Total AUM decreased by **31.2%** from **$4.2 billion** to **$2.9 billion** year-over-year, with significant declines in both ETF and USGIF categories [Corporate Investments](index=5&type=section&id=Corporate%20Investments) The Company actively manages corporate investments for its own account to enhance cash position, with detailed information in financial statement notes - The Company actively invests for its own account to enhance its cash position, with detailed segment information available in the Notes to the Consolidated Financial Statements[18](index=18&type=chunk)[20](index=20&type=chunk) [Human Capital](index=7&type=section&id=Human%20Capital) As of June 30, 2022, the Company employed **22 individuals**, offering a comprehensive compensation program including performance bonuses, benefits, and stock options - As of June 30, 2022, U.S. Global employed **20 full-time** and **2 part-time** employees. The compensation program includes performance-based cash and fund share bonuses, incentives for professional certifications, and benefits such as insurance, 401(k) with match, profit-sharing, and stock options[21](index=21&type=chunk) [Competition](index=7&type=section&id=Competition) The highly competitive mutual fund and ETF industry requires the Company to leverage its specialized expertise in niche sectors to compete effectively - The mutual fund industry is highly competitive, with numerous open-end investment companies and ETFs. The Company competes with various financial institutions and larger fund groups, but leverages its expertise in gold mining, natural resources, emerging markets, and airlines[22](index=22&type=chunk)[23](index=23&type=chunk) - Success in investment advisory depends on fund performance, service quality, and effective marketing. Rising distribution and compliance costs pressure profit margins, and increased alternative investments heighten competition for opportunities[24](index=24&type=chunk)[25](index=25&type=chunk) [Supervision and Regulation](index=7&type=section&id=Supervision%20and%20Regulation) The Company and its clients are subject to extensive federal and state securities regulations, with non-compliance posing risks of fines and reputational damage - The Company and its clients are subject to extensive federal and state securities laws and regulations, including the Advisers Act and Investment Company Act. Non-compliance could lead to fines, injunctions, and reputational damage[26](index=26&type=chunk)[29](index=29&type=chunk) - Increased regulatory pronouncements and oversight have significantly raised compliance costs for the mutual fund industry[27](index=27&type=chunk) - The Company manages client portfolios on a discretionary basis and may use soft dollar credits from broker-dealers for research, which helps reduce operating expenses. A reduction or elimination of soft dollar arrangements would increase operating expenses[31](index=31&type=chunk) [Relationships with Clients](index=8&type=section&id=Relationships%20with%20Clients) The Company's business is highly dependent on contractual relationships with USGIF and ETF clients, where agreement termination would severely impact operations - The Company's business heavily relies on its contractual relationships with USGIF and ETF clients. Termination or non-renewal of advisory or administrative agreements would substantially adversely affect the Company[32](index=32&type=chunk) [Available Information](index=8&type=section&id=Available%20Information) The Company provides public access to its SEC filings and corporate governance documents via its website and the SEC's EDGAR system - The Company's SEC filings (10-K, 10-Q, 8-K) and corporate governance documents are available free of charge on its website (www.usfunds.com) and through the SEC's EDGAR system (www.sec.gov)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - The Company uses its website, SEC filings, press releases, public conference calls, webcasts, and social media channels (Facebook, Twitter, LinkedIn, Instagram, Pinterest, YouTube) to communicate material financial information and engage with the public[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - U.S. Global Investors, Inc. is a registered investment adviser managing two business segments: Investment Management Services (for mutual funds and ETFs) and Corporate Investments (for its own account)[11](index=11&type=chunk)[13](index=13&type=chunk) - The primary sources of the Company's revenue are fees from investment advisory and administrative services, as well as investment income[11](index=11&type=chunk) Assets Under Management (AUM) Overview | Assets Under Management ("AUM") | June 30, 2022 (dollars in thousands) | June 30, 2021 (dollars in thousands) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | | ETF Clients | $2,550,379 | $3,720,387 | | U.S. Global Investors Funds | $357,527 | $509,222 | | **Total AUM** | **$2,907,906** | **$4,229,609** | * **Change:** Total AUM decreased by **$1.3 billion**, or **31.2%**, from June 30, 2021, to June 30, 2022. This was primarily due to market depreciation in ETFs, especially the U.S. Global Jets ETF [Item 1A. Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The Company faces diverse risks including intense competition, regulatory non-compliance, common stock volatility due to cryptocurrency and macroeconomic factors, operational disruptions, AUM risks from poor performance and fund concentration, and corporate investment volatility from market and foreign currency fluctuations [Risk Factors Related to Our Industry](index=10&type=section&id=Risk%20Factors%20Related%20to%20Our%20Industry) The investment management industry is highly competitive, with success dependent on performance, investor perception, service quality, reputation, and fee levels - The investment management business is highly competitive, with competition based on investment performance, investor perception, service quality, business reputation, and fee levels[40](index=40&type=chunk)[45](index=45&type=chunk) - Failure to comply with government regulations (e.g., Advisers Act, Investment Company Act, S-Ox Act) could lead to fines, sanctions, and reputational damage, negatively impacting revenues and earnings[41](index=41&type=chunk)[42](index=42&type=chunk) - Increased regulatory and legislative actions, such as the S-Ox Act and Dodd-Frank Act, have increased compliance costs and operational complexity for the Company[43](index=43&type=chunk) [Investment Company Act - Certain changes in control of the Company would automatically terminate our investment management agreements with our client, unless the funds' boards of directors and shareholders vote to continue the agreements.](index=12&type=section&id=Investment%20Company%20Act%20-%20Certain%20changes%20in%20control%20of%20the%20Company%20would%20automatically

Financial Data and Key Metrics Changes - The company reported average assets under management of $4.1 billion for the quarter ending March 31, 2022, consistent with the prior quarter and slightly up from a year ago [43] - Total operating revenues were $6.2 million, a decrease of $180,000 or 3% from the same quarter last year [44] - Operating income for the quarter was $2.5 million, a decrease of $775,000 compared to the same period for fiscal year 2021 [45] - Net loss after taxes for the quarter was $846,000, equating to a loss of $0.06 per share [45] Business Line Data and Key Metrics Changes - Operating expenses increased to $3.7 million, up 19% over the same period last year, primarily due to higher fund expenses and consulting fees [44] - The company repurchased 19,487 shares of its Class A shares using cash of approximately $97,000 during the quarter [13] Market Data and Key Metrics Changes - The JETS ETF experienced significant trading activity, with fund flows surging following the removal of mask mandates for domestic flights [15] - The airline industry is seeing strong demand, with a noted shortage of pilots contributing to pricing power [35] Company Strategy and Development Direction - The company aims to manage expectations for new product launches while preserving cash for future growth opportunities and market corrections [21] - The strategy includes increasing stock buybacks during down days, which has been discussed and reviewed regularly with the Board [21][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of active asset management, particularly in light of geopolitical events, and noted the company's timely exit from Russian stocks [32][33] - The company is optimistic about the future of the airline industry, citing strong demand and pricing power due to supply chain disruptions [37] Other Important Information - The company has no long-term debt, with only deferred taxes as long-term liabilities [46] - Cash and cash equivalents increased to $26 million, with a goal to reach $30 million [20] Q&A Session Summary - The Q&A session concluded without specific questions or answers being documented in the provided content [53]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited interim financial information, management's analysis, market risk disclosures, and internal control assessments [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements and accompanying notes, detailing the Company's interim financial position and performance - Financial statements are unaudited and prepared under U.S. GAAP, reflecting **normal recurring adjustments**[15](index=15&type=chunk) - The Company's consolidated financial statements include its **wholly-owned subsidiaries**[16](index=16&type=chunk) [CONSOLIDATED BALANCE SHEETS (UNAUDITED)](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20(UNAUDITED)) This section provides a snapshot of the company's assets, liabilities, and equity at specific interim dates Consolidated Balance Sheet Highlights (March 31, 2022 vs. June 30, 2021) | Metric | March 31, 2022 (in thousands) | June 30, 2021 (in thousands) | Change (in thousands) | | :---------------------------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | Total Assets | $62,515 | $62,277 | +$238 | | Total Liabilities | $5,321 | $7,953 | -$2,632 | | Total Shareholders' Equity | $57,194 | $54,324 | +$2,870 | | Cash and cash equivalents | $26,765 | $14,436 | +$12,329 | | Investments in equity securities at fair value, non-current | $6,307 | $11,936 | -$5,629 | | Investments in available-for-sale debt securities at fair value | $12,706 | $17,049 | -$4,343 | | Deferred tax liability | $507 | $2,799 | -$2,292 | [CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) This section details the company's revenues, expenses, and net income or loss over specific interim periods Consolidated Statements of Operations (Three Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | Operating Revenues | $6,175 | $6,355 | -$180 | | Operating Expenses | $3,658 | $3,063 | +$595 | | Operating Income | $2,517 | $3,292 | -$775 | | Investment income (loss) | $(3,495) | $8,424 | -$11,919 | | Net Income (Loss) | $(846) | $8,607 | -$9,453 | | Basic Net Income (Loss) per share | $(0.06) | $0.57 | -$0.63 | Consolidated Statements of Operations (Nine Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | Operating Revenues | $19,270 | $14,321 | +$4,949 | | Operating Expenses | $10,947 | $10,017 | +$930 | | Operating Income | $8,323 | $4,304 | +$4,019 | | Investment income (loss) | $(1,950) | $30,124 | -$32,074 | | Net Income (Loss) | $5,134 | $27,212 | -$22,078 | | Basic Net Income (Loss) per share | $0.34 | $1.81 | -$1.47 | [CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME (LOSS) (UNAUDITED)](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) This section presents net income or loss and other comprehensive income or loss, reflecting all non-owner changes in equity Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | Net Income (Loss) | $(846) | $8,607 | -$9,453 | | Other Comprehensive Income (Loss) | $(568) | $11,832 | -$12,400 | | Comprehensive Income (Loss) | $(1,414) | $20,439 | -$21,853 | Consolidated Statements of Comprehensive Income (Loss) (Nine Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | Net Income (Loss) | $5,134 | $27,212 | -$22,078 | | Other Comprehensive Income (Loss) | $(1,790) | $11,844 | -$13,634 | | Comprehensive Income (Loss) | $3,344 | $39,056 | -$35,712 | [CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY%20(UNAUDITED)) This section outlines changes in shareholders' equity, including net income, dividends, and share repurchases, over the interim period Shareholders' Equity Changes (Nine Months Ended March 31, 2022) | Item | Amount (in thousands) | | :------------------------------------ | :-------------------- | | Balance at June 30, 2021 | $54,324 | | Net income | $5,134 | | Other comprehensive loss, net of tax | $(1,790) | | Dividends declared | $(1,013) | | Purchases of shares of Common Stock (class A) | $(233) | | Issuance of stock under ESPP | $31 | | Share-based compensation, net of tax | $733 | | Balance at March 31, 2022 | $57,194 | [CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) This section reports cash inflows and outflows from operating, investing, and financing activities for the interim period Consolidated Statements of Cash Flows (Nine Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :---------------------------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | Net cash provided by operating activities | $9,148 | $1,940 | +$7,208 | | Net cash provided by investing activities | $4,276 | $6,177 | -$1,901 | | Net cash used in financing activities | $(1,095) | $(599) | -$496 | | Net increase in cash, cash equivalents, and restricted cash | $12,329 | $7,518 | +$4,811 | | Ending cash, cash equivalents, and restricted cash | $27,765 | $10,479 | +$17,286 | [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=10&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section provides detailed explanations and additional information supporting the consolidated financial statements [NOTE 1. BASIS OF PRESENTATION](index=10&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) This note describes the accounting principles, consolidation policies, and significant judgments used in preparing the financial statements - The consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim periods, including all **necessary recurring adjustments**[15](index=15&type=chunk) - The Company consolidates its wholly-owned subsidiaries: U.S. Global Investors (Bermuda) Limited, U.S. Global Investors (Canada) Limited, and U.S. Global Indices, LLC[16](index=16&type=chunk) - The COVID-19 pandemic continues to pose **significant economic and market volatility risks**, which could materially impact the Company's business, operating environment, revenues, and corporate investment returns[17](index=17&type=chunk)[19](index=19&type=chunk) - The Company does not consolidate certain advised funds (VIEs) as it is not deemed the primary beneficiary, limiting its risk of loss to the **carrying value of investments and fees receivable ($7.0 million at March 31, 2022)**[21](index=21&type=chunk) [NOTE 2. INVESTMENTS](index=12&type=section&id=NOTE%202.%20INVESTMENTS) This note details the Company's investment portfolio, fair value measurements, and the impact of investment performance on financial results - As of March 31, 2022, the Company held **$25.2 million in investments carried at fair value (40.3% of total assets)**, plus **$4.2 million in other investments** and **$1.0 million in held-to-maturity debt investments**[29](index=29&type=chunk) - A significant portion of fair value investments (**$17.5 million at March 31, 2022**) are in HIVE Blockchain Technologies Ltd. (warrants and convertible debentures), classified as **Level 3 due to unobservable inputs** and subject to cryptocurrency market volatility[45](index=45&type=chunk)[47](index=47&type=chunk) - The Company's investment income (loss) for the nine months ended March 31, 2022, was a **loss of $1.95 million**, a significant decrease from a **gain of $30.12 million** in the prior year, primarily due to unrealized losses on equity securities and embedded derivatives[76](index=76&type=chunk) - The equity method investment in Galileo New Economy Fund LP was dissolved as of March 31, 2022, resulting in a **loss of $206 thousand** for the nine months ended March 31, 2022[74](index=74&type=chunk) [NOTE 3. INVESTMENT MANAGEMENT AND OTHER FEES](index=24&type=section&id=NOTE%203.%20INVESTMENT%20MANAGEMENT%20AND%20OTHER%20FEES) This note outlines the Company's operating revenues derived from ETF and USGIF advisory fees and related contractual arrangements Operating Revenues by Performance Obligation (Nine Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | Change (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | :-------------------- | | ETF advisory fees | $16,140 | $11,107 | +$5,033 | | USGIF advisory fees | $2,775 | $2,781 | -$6 | | USGIF performance fees earned (paid) | $209 | $280 | -$71 | | Total Advisory Fees | $19,124 | $14,168 | +$4,956 | | Total Operating Revenue | $19,270 | $14,321 | +$4,949 | - The Company contractually limits expenses for certain USGIF funds and the U.S. Global Sea to Sky Cargo ETF, and voluntarily waives/reduces fees for other USGIF funds. Aggregate fees waived/expenses borne for USGIF were **$465 thousand** for the nine months ended March 31, 2022, down from **$554 thousand** in the prior year[81](index=81&type=chunk)[83](index=83&type=chunk) - Receivables from fund clients totaled **$2.0 million** at March 31, 2022, with **$1.8 million from ETFs** and **$246 thousand from USGIF**[84](index=84&type=chunk) [NOTE 4. RESTRICTED CASH](index=24&type=section&id=NOTE%204.%20RESTRICTED%20CASH) This note explains the nature and purpose of restricted cash balances, primarily held as collateral for credit facilities - Restricted cash of **$1.0 million** at March 31, 2022, and June 30, 2021, is held in a money market account as collateral for credit facilities and is **not available for general corporate use**[85](index=85&type=chunk)[86](index=86&type=chunk) [NOTE 5. LEASES](index=24&type=section&id=NOTE%205.%20LEASES) This note details the Company's lease arrangements, including lease costs for office equipment and income from acting as a lessor - Total lease cost for office equipment was **$130 thousand** for the nine months ended March 31, 2022, up from **$116 thousand** in the prior year[89](index=89&type=chunk) - The Company acts as a lessor for parts of its office building, generating lease income of **$84 thousand** for the nine months ended March 31, 2022, an increase from **$69 thousand** in the prior year[90](index=90&type=chunk) - Future undiscounted cash flows to be received from operating leases total **$172 thousand** through fiscal year 2025[92](index=92&type=chunk) [NOTE 6. BORROWINGS](index=25&type=section&id=NOTE%206.%20BORROWINGS) This note describes the Company's credit facilities and the status of the Paycheck Protection Program loan - The Company has an unutilized **$1.0 million credit facility** for working capital, collateralized by **$1.0 million in restricted cash**, which expires on May 31, 2022, and is intended for annual renewal[93](index=93&type=chunk)[145](index=145&type=chunk) - The Paycheck Protection Program (PPP) loan of **$442 thousand**, received in April 2020, was **fully forgiven** during the fiscal year ended June 30, 2021, with no remaining balance[94](index=94&type=chunk)[95](index=95&type=chunk) [NOTE 7. STOCKHOLDERS' EQUITY](index=27&type=section&id=NOTE%207.%20STOCKHOLDERS'%20EQUITY) This note provides information on dividends, share repurchase programs, and stock-based compensation impacting shareholders' equity - The monthly dividend rate increased from **$0.0025** (July 2020-Jan 2021) to **$0.0050** (Feb 2021-Sep 2021) and then to **$0.0075** (Oct 2021-Mar 2022), with continuation authorized through June 2022[96](index=96&type=chunk)[97](index=97&type=chunk) - The annual share repurchase program limit was increased from **$2.75 million to $5.0 million** on February 25, 2022[98](index=98&type=chunk) - For the nine months ended March 31, 2022, the Company repurchased **43,591 Class A shares for $233 thousand**, compared to **35,996 shares for $189 thousand** in the prior year[98](index=98&type=chunk) - Stock-based compensation expense recognized for the nine months ended March 31, 2022, was **$733 thousand**, with no expense in the prior year periods[100](index=100&type=chunk) [NOTE 8. EARNINGS PER SHARE](index=27&type=section&id=NOTE%208.%20EARNINGS%20PER%20SHARE) This note presents the calculation of basic and diluted earnings per share for the interim periods Basic and Diluted EPS (Nine Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 | March 31, 2021 | | :-------------------------------- | :------------- | :------------- | | Net Income (Loss) (in thousands) | $5,134 | $27,212 | | Basic EPS | $0.34 | $1.81 | | Diluted EPS | $0.34 | $1.81 | Basic and Diluted EPS (Three Months Ended March 31, 2022 vs. 2021) | Metric | March 31, 2022 | March 31, 2021 | | :-------------------------------- | :------------- | :------------- | | Net Income (Loss) (in thousands) | $(846) | $8,607 | | Basic EPS | $(0.06) | $0.57 | | Diluted EPS | $(0.06) | $0.57 | - **231 thousand employee stock options** were excluded from diluted EPS for the three and nine months ended March 31, 2022, as their exercise prices exceeded the average market price, making them anti-dilutive[104](index=104&type=chunk) [NOTE 9. INCOME TAXES](index=28&type=section&id=NOTE%209.%20INCOME%20TAXES) This note outlines the Company's income tax filing status, deferred tax liabilities, and valuation allowances - The Company and its non-Canadian subsidiaries file a **consolidated U.S. federal income tax return**, while USCAN files separately in Canada[106](index=106&type=chunk) - No U.S. federal net operating loss carryovers or capital loss carryovers for the Company at March 31, 2022[107](index=107&type=chunk) - No valuation allowance was provided at March 31, 2022, or June 30, 2021, indicating that **deferred tax amounts are expected to be realized**[107](index=107&type=chunk) [NOTE 10. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=28&type=section&id=NOTE%2010.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) This note details changes in accumulated other comprehensive income or loss, primarily from unrealized investment gains and losses Change in Accumulated Other Comprehensive Income (Loss) (Nine Months Ended March 31, 2022 vs. 2021) | Component | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | | :-------------------------------- | :---------------------------- | :--------------------------- | | Balance at June 30, 2021/2020 | $6,587 | $(4) | | Net other comprehensive income (loss) | $(1,790) | $11,844 | | Balance at March 31, 2022/2021 | $4,797 | $11,840 | - The net other comprehensive loss for the nine months ended March 31, 2022, was primarily driven by **unrealized losses on available-for-sale investments**[109](index=109&type=chunk) [NOTE 11. FINANCIAL INFORMATION BY BUSINESS SEGMENT](index=29&type=section&id=NOTE%2011.%20FINANCIAL%20INFORMATION%20BY%20BUSINESS%20SEGMENT) This note provides financial data segmented by investment management services and corporate investments, highlighting revenue and asset allocation - The Company operates principally in two business segments: providing investment management services to USGIF and ETF clients; and investing for its own account in an effort to add growth and value to its cash position[110](index=110&type=chunk) Segment Performance (Nine Months Ended March 31, 2022 vs. 2021) | Metric (in thousands) | Investment Management Services (2022) | Corporate Investments (2022) | Investment Management Services (2021) | Corporate Investments (2021) | | :-------------------- | :------------------------------------ | :--------------------------- | :------------------------------------ | :--------------------------- | | Net operating revenues | $19,270 | $0 | $14,321 | $0 | | Investment income (loss) | $0 | $(1,950) | $0 | $30,124 | | Income (loss) before income taxes | $8,750 | $(2,409) | $6,842 | $28,542 | | Gross identifiable assets | $27,652 | $34,863 | $11,530 | $55,292 | - ETF unitary management fees increased by **$5.0 million** for the nine months ended March 31, 2022, primarily from the Jets ETF[139](index=139&type=chunk) - USGIF management fees decreased by **$101 thousand** for the three months ended March 31, 2022, due to lower average assets under management[134](index=134&type=chunk) [NOTE 12. CONTINGENCIES AND COMMITMENTS](index=30&type=section&id=NOTE%2012.%20CONTINGENCIES%20AND%20COMMITMENTS) This note discloses potential future obligations, including authorized dividends, litigation reviews, and ongoing macroeconomic risks - The Board authorized a monthly dividend of **$0.0075 per share** through June 2022, with total expected payments of approximately **$338 thousand**[115](index=115&type=chunk) - The Company continuously reviews investor, employee, and vendor complaints and pending litigation, accruing for **probable and estimable losses**[113](index=113&type=chunk)[114](index=114&type=chunk) - The COVID-19 pandemic continues to pose a **macro-economic risk** that could materially impact the Company's business and investments[116](index=116&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=31&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section discusses the Company's financial condition and results of operations for the three and nine months ended March 31, 2022, compared to the prior year periods, highlighting key drivers such as investment performance, assets under management, operating revenues and expenses, and liquidity - Net loss of **$846 thousand** for the three months ended March 31, 2022, compared to net income of **$8.6 million** in the prior year, primarily due to a decrease in unrealized investment gains[132](index=132&type=chunk) - Net income of **$5.1 million** for the nine months ended March 31, 2022, down from **$27.2 million** in the prior year, mainly due to decreased realized and unrealized investment gains[137](index=137&type=chunk) - Total assets under management (AUM) decreased by **11.7% to $4.1 billion** at March 31, 2022, from **$4.6 billion** at March 31, 2021[124](index=124&type=chunk) - Operating revenues for the nine months ended March 31, 2022, increased by **34.6% to $19.3 million**, driven by higher ETF unitary management fees[138](index=138&type=chunk)[139](index=139&type=chunk) - Net working capital increased by **$10.2 million (47.2%) to $31.8 million** at March 31, 2022, with cash and cash equivalents rising by **$12.3 million (85.4%) to $26.8 million**[143](index=143&type=chunk) - The Company's two business segments are Investment Management Services (USGIF and ETF clients) and Corporate Investments[120](index=120&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=38&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the Company's exposure to various market risks, including equity price risk, interest rate risk, and foreign currency risk, and discusses how these factors can impact its revenues, operating results, and investment valuations - The Company's revenues are directly affected by fluctuations in financial markets and assets under management, particularly in equity funds with international/natural resource exposure and fixed income funds sensitive to interest rates[153](index=153&type=chunk) - Performance fees for USGIF advisory services are adjusted based on fund performance relative to benchmark indices, introducing **additional revenue volatility**[154](index=154&type=chunk)[155](index=155&type=chunk) - Corporate investments, especially those in the cryptocurrency industry (like HIVE), are subject to **considerable equity price volatility**, which can materially impact investment values and unrealized gains/losses[156](index=156&type=chunk)[164](index=164&type=chunk) - A hypothetical **25% increase/decrease in equity securities at fair value** could result in a **$2.46 million increase/decrease in net income (loss) after taxes**[160](index=160&type=chunk) - Interest rate fluctuations, particularly a potential increase from historical lows, could negatively impact the **value of the Company's debt securities**[165](index=165&type=chunk) - Exposure to foreign currency risk, primarily Canadian, affects the **value of cash accounts and corporate investments** held in those currencies[166](index=166&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=40&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section reports on the effectiveness of the Company's disclosure controls and procedures and internal control over financial reporting, identifying a material weakness related to tax-related journal entries while noting remediation of a prior weakness - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2022, due to a material weakness in internal control over financial reporting[167](index=167&type=chunk) - A material weakness was identified as of September 30, 2021, due to **inadequate review of tax-related journal entries**, with remediation efforts focused on improving oversight of tax services[168](index=168&type=chunk) - A prior material weakness (as of March 31, 2021) related to inadequate controls for valuing complex investments (hybrid financial instruments) was **remediated as of December 31, 2021**, through amended valuation procedures and the use of specialized models/independent pricing services[169](index=169&type=chunk) - Despite the material weakness, the unaudited interim consolidated financial statements are believed to **fairly present the Company's financial position, results of operations, and cash flows** in conformity with U.S. GAAP[167](index=167&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes disclosures on risk factors, equity sales, exhibits, and required signatures [ITEM 1A. RISK FACTORS](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section refers to the comprehensive discussion of risk factors in the Company's Annual Report on Form 10-K for the year ended June 30, 2021, and states that no material changes have occurred since that fiscal year-end - No **material changes** to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended June 30, 2021[174](index=174&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=42&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the Company's share repurchase activities for the three months ended March 31, 2022, including the number of shares purchased, the total amount spent, and the remaining authorization under the buyback program Issuer Purchases of Equity Securities (January 1, 2022 - March 31, 2022) | Period | Total Number of Shares Purchased | Total Amount Purchased (in thousands) | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan (in thousands) | | :-------------------- | :------------------------------- | :------------------------------------ | :--------------------------- | :--------------------------------------------------------------------------------------- | | 01-01-22 to 01-31-22 | 2,781 | $13 | $4.77 | $2,737 | | 02-01-22 to 02-28-22 | - | $0 | $0 | $4,987 | | 03-01-22 to 03-31-22 | 16,706 | $84 | $5.04 | $4,903 | | **Total** | **19,487** | **$97** | **$5.00** | | - The Board of Directors increased the annual share buyback program limit from **$2.75 million to $5.0 million** on February 25, 2022[175](index=175&type=chunk) [ITEM 6. EXHIBITS](index=43&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including certifications under the Sarbanes-Oxley Act and Inline XBRL documents, providing references to supporting legal and financial disclosures - Includes Rule 13a-14(a) Certifications (Section 302 of Sarbanes-Oxley Act of 2002) and Section 1350 Certifications (Section 906 of Sarbanes-Oxley Act of 2002)[178](index=178&type=chunk) - Contains Inline XBRL Instance Document and related taxonomy extension documents for financial data[178](index=178&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) This section formally attests to the filing of the report pursuant to the Securities Exchange Act of 1934, with signatures from the Chief Executive Officer and Chief Financial Officer - The report is duly signed by Frank E. Holmes, Chief Executive Officer, and Lisa C. Callicotte, Chief Financial Officer, on **May 9, 2022**[182](index=182&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended December 31, 2021 OR ☐Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____________ to ____________. Commission File Number 0-13928 U.S. GLOBAL INVESTORS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended June 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____ to _____ Commission File Number 0-13928 U.S. GLOBAL INVESTORS, INC. (Exact name of registrant as specified in its charter) Texas 74-1598370 (State or other jurisdiction of ...

U.S. Global Investors, Inc. GROW) Q3 2021 Earnings Conference Call May 10, 2021 8:30 AM ET Company Participants Holly Schoenfeldt - Marketing & Public Relations Manager Frank Holmes - Chief Executive Officer & Chief Investment Officer Lisa Callicotte - Chief Financial Officer Conference Call Participants Operator Good morning, everyone and thank you for joining us today for our webcast announcing U.S. Global Investors Results for the Third Quarter of 2021. I'm Holly Schoenfeldt. At the end of today’s webcas ...

| --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | GROW THIRD QUARTER 2021 | | | | | RESULTS WEBCAST Frank Holmes, CEO and Chief Investment Officer Lisa Callicotte, Chief Financial Officer Holly Schoenfeldt , Marketing and Public Relations Manager | | | | usfunds.com | 1.800.US.FUNDS Frank Holmes TODAY'S PRESENTERS Lisa ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited statements show a profit turnaround driven by strong investment income and surging ETF advisory fees [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets surged to $61.1 million, driven by non-current investments and a tripling of shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | June 30, 2020 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$61,061** | **$18,816** | **+224.5%** | | Cash and cash equivalents | $9,479 | $1,936 | +389.6% | | Investments in equity securities, non-current | $18,635 | $5,142 | +262.4% | | Investments in available-for-sale debt securities | $16,470 | $- | N/A | | **Total Liabilities** | **$10,463** | **$2,052** | **+409.9%** | | Deferred tax liability | $4,681 | $- | N/A | | **Total Shareholders' Equity** | **$50,598** | **$16,764** | **+201.8%** | | Retained earnings | $34,927 | $2,625 | +1230.6% | [Consolidated Statements of Operations (Unaudited)](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) The company achieved a significant profit turnaround, driven by surging advisory fees and substantial investment income Key Performance Indicators (Three Months Ended March 31) | Metric (in thousands, except EPS) | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $6,355 | $914 | +595.3% | | Operating Income (Loss) | $3,352 | $(979) | N/A | | Investment Income (Loss) | $15,505 | $(441) | N/A | | Net Income (Loss) | $14,224 | $(1,612) | N/A | | Diluted EPS | $0.94 | $(0.11) | N/A | Key Performance Indicators (Nine Months Ended March 31) | Metric (in thousands, except EPS) | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $14,765 | $2,605 | +466.8% | | Operating Income (Loss) | $4,808 | $(2,158) | N/A | | Investment Income (Loss) | $37,205 | $(3,922) | N/A | | Net Income (Loss) | $32,829 | $(6,182) | N/A | | Diluted EPS | $2.18 | $(0.41) | N/A | [Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) Comprehensive income reached $34.5 million, reversing a prior-year loss due to strong net income and unrealized gains Comprehensive Income (Loss) (in thousands) | Component | Nine Months Ended Mar 31, 2021 | Nine Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Net Income (Loss) | $32,829 | $(6,182) | | Unrealized gains on available-for-sale securities | $1,681 | $- | | Foreign currency translation adjustment | $18 | $311 | | **Comprehensive Income (Loss)** | **$34,528** | **$(5,871)** | [Consolidated Statements of Shareholders' Equity (Unaudited)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY%20(UNAUDITED)) Shareholders' equity grew to $50.6 million, primarily driven by a net income of $32.8 million - Retained earnings saw a substantial increase, growing from $2.6 million to **$34.9 million** during the nine months ended March 31, 2021, primarily due to the period's net income of $32.8 million[14](index=14&type=chunk) - The company declared and paid dividends totaling **$527,000** and repurchased 35,996 shares of Class A common stock for **$189,000** during the nine-month period[14](index=14&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) A net cash increase of $7.5 million was driven by positive operating and investing cash flows Net Cash Flow Summary (Nine Months Ended March 31, in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,940 | $351 | | Net cash provided by investing activities | $6,177 | $681 | | Net cash used in financing activities | $(599) | $(412) | | **Net increase in cash** | **$7,518** | **$620** | [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Notes detail key events including new HIVE investments, significant ETF fee growth, and PPP loan forgiveness - In Q3 2021, the company purchased **$15.0 million** of convertible securities from HIVE Blockchain Technologies Ltd, valued at **$29.1 million** as of March 31, 2021[64](index=64&type=chunk) - During the nine months ended March 31, 2021, the company sold its 10 million common shares in HIVE, realizing a **gain of $15.0 million**[65](index=65&type=chunk) - Advisory fees from ETFs surged to **$11.1 million** for the nine months ended March 31, 2021, primarily driven by the U.S. Global Jets ETF (JETS)[75](index=75&type=chunk)[77](index=77&type=chunk) - The company's Paycheck Protection Program (PPP) loan of approximately **$442,000 was fully forgiven**, with the amount recognized as Other Operating Revenue[78](index=78&type=chunk)[87](index=87&type=chunk) - The monthly dividend was **increased from $0.0025 to $0.0050 per share** starting in February 2021[88](index=88&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=29&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Performance was driven by a 592% AUM growth to $4.6 billion and substantial gains from corporate investments [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Net income surged to $32.8 million from a prior-year loss, driven by a $41.1 million improvement in investment income - Total assets under management (AUM) grew to approximately **$4.6 billion** at March 31, 2021, from $665.1 million at March 31, 2020, an **increase of 592.4%**[114](index=114&type=chunk)[115](index=115&type=chunk) - For the nine months ended March 31, 2021, advisory fees **increased by $11.7 million (472%)**, with ETF unitary management fees accounting for $10.7 million of this growth[131](index=131&type=chunk) - Investment income for the nine-month period was **$37.2 million**, a positive change of $41.1 million from the prior year, including a **$15.0 million realized gain** from the sale of HIVE stock[131](index=131&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $14.1 million in net working capital and $50.9 million in liquid assets - At March 31, 2021, the company had net working capital of approximately **$14.1 million** and a **current ratio of 3.4 to 1**[134](index=134&type=chunk) - The company has access to an **unused $1 million credit facility**, which it intends to renew annually[136](index=136&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks from its AUM, corporate investments, and foreign currency fluctuations - A hypothetical 25% change in the market price of equity securities would impact net income by an estimated **$4.9 million**, after taxes[147](index=147&type=chunk)[148](index=148&type=chunk) - A **significant portion of the investment portfolio is in HIVE Blockchain Technologies**, which poses a material risk due to its connection with volatile cryptocurrency markets[151](index=151&type=chunk) - Performance fees, which are highly volatile, contributed a **$280,000 increase to revenue** in the first nine months of fiscal 2021, versus a $391,000 decrease in the prior-year period[144](index=144&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2021[154](index=154&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[155](index=155&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=38&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors were reported since the last annual filing for the year ended June 30, 2020 - The company states there have been **no material changes** since the fiscal year-end to the risk factors listed in its Form 10-K for the year ended June 30, 2020[158](index=158&type=chunk) [Issuer Purchases of Equity Securities](index=38&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 19,900 shares for $127,000, with $2.6 million remaining under its repurchase authorization Share Repurchases (Q3 FY2021) | Period | Shares Purchased | Total Cost (in thousands) | Average Price Paid | | :--- | :--- | :--- | :--- | | Jan 2021 | 8,289 | $45 | $5.45 | | Feb 2021 | 5,214 | $37 | $6.96 | | Mar 2021 | 6,397 | $45 | $7.05 | | **Total** | **19,900** | **$127** | **$6.36** | - The share repurchase program authorizes up to **$2.75 million** in repurchases for the 2021 calendar year[159](index=159&type=chunk)[160](index=160&type=chunk) [Exhibits](index=39&type=section&id=ITEM%206.%20EXHIBITS) The filing includes required CEO/CFO certifications and interactive data files in XBRL format - Exhibits filed with this report include **CEO/CFO certifications (31.1, 32.1)** and **XBRL data files (101 series)**[163](index=163&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended December 31, 2020 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____________ to ____________. Commission File Number 0-13928 U.S. GLOBAL INVESTORS, INC. (Exact name of registrant as specified in its charter) (State or other jurisd ...