| --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | 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 ...

U.S. Global Investors, Inc. (NASDAQ:GROW) Q1 2021 Earnings Conference Call November 6, 2020 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 Holly Schoenfeldt Good morning and thank you for joining us today for our webcast announcing U.S. Global Investors Results for First Quarter 2021. I'm Holly Schoenfeldt. If you have any question ...

PART I. FINANCIAL INFORMATION This part presents the unaudited consolidated financial statements and management's discussion and analysis for the quarter [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for U.S. Global Investors, Inc., including the balance sheets, statements of operations, comprehensive income (loss), shareholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial items for the quarter ended September 30, 2020 [CONSOLIDATED BALANCE SHEETS](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (September 30, 2020 vs. June 30, 2020) | Metric (in thousands) | Sep 30, 2020 | Jun 30, 2020 | Change | % Change | | :-------------------- | :----------- | :----------- | :----- | :------- | | Total Assets | $20,789 | $18,816 | $1,973 | 10.49% | | Current Assets | $11,410 | $10,542 | $868 | 8.23% | | Cash and cash equivalents | $2,623 | $1,936 | $687 | 35.49% | | Investments in securities at fair value | $6,326 | $6,322 | $4 | 0.06% | | Total Liabilities | $2,189 | $2,052 | $137 | 6.68% | | Total Shareholders' Equity | $18,600 | $16,764 | $1,836 | 10.95% | [CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) This section reports the company's revenues, expenses, and net income or loss over a specific period Consolidated Statements of Operations Highlights (Three Months Ended September 30) | Metric (in thousands, except per share) | 2020 | 2019 | Change | % Change | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Operating Revenues | $3,245 | $804 | $2,441 | 303.61% | | Operating Expenses | $2,308 | $1,472 | $836 | 56.79% | | Operating Income (Loss) | $937 | $(668) | $1,605 | 240.27% | | Investment income (loss) | $998 | $(3,030) | $4,028 | 132.94% | | Net Income (Loss) Attributable to U.S. Global Investors, Inc. | $1,944 | $(3,567) | $5,511 | 154.49% | | Basic Net Income (Loss) per Share | $0.13 | $(0.24) | $0.37 | 154.17% | [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) This section presents net income and other comprehensive income items, reflecting total non-owner changes in equity Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | Change | % Change | | :-------------------- | :------ | :------- | :------ | :------- | | Net Income (Loss) Attributable to U.S. Global Investors, Inc. | $1,944 | $(3,567) | $5,511 | 154.49% | | Foreign currency translation adjustment | $4 | $(17) | $21 | 123.53% | | Comprehensive Income (Loss) Attributable to U.S. Global Investors, Inc. | $1,948 | $(3,580) | $5,528 | 154.41% | [CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY%20(UNAUDITED)) This section details changes in shareholders' equity, including net income, dividends, and share repurchases Shareholders' Equity Changes (Three Months Ended September 30, 2020) | Item (in thousands) | Balance at Jun 30, 2020 | Net Income | Dividends Declared | Other Changes | Balance at Sep 30, 2020 | | :------------------ | :---------------------- | :--------- | :----------------- | :------------ | :---------------------- | | Total Shareholders' Equity | $16,764 | $1,944 | $(113) | $5 | $18,600 | - The company repurchased **1,000 Class A shares for $2,000** during the three months ended **September 30, 2020**, compared to 1,400 shares for $3,000 in the prior year period[11](index=11&type=chunk) [CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) This section categorizes cash flows into operating, investing, and financing activities for the reporting period Consolidated Statements of Cash Flows Highlights (Three Months Ended September 30) | Activity (in thousands) | 2020 | 2019 | Change | % Change | | :---------------------- | :------ | :------- | :------ | :------- | | Net cash provided by operating activities | $906 | $61 | $845 | 1385.25% | | Net cash provided by (used in) investing activities | $(130) | $8 | $(138) | -1725.00%| | Net cash used in financing activities | $(114) | $(115) | $1 | 0.87% | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $662 | $(46) | $708 | 1539.13% | | Ending cash, cash equivalents, and restricted cash | $3,623 | $2,445 | $1,178 | 48.18% | [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=11&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=11&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) This note outlines the accounting principles used, the entities included in consolidation, the impact of the COVID-19 pandemic on the company's operations and financial markets, and the evaluation criteria for consolidating variable interest entities (VIEs) and voting interest entities. It also mentions recent accounting pronouncements - The COVID-19 pandemic has caused significant economic disruption and market volatility, which could adversely impact the Company's revenues (derived from Assets Under Management) and returns on corporate investments if negative market effects persist[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - The Company's **total exposure to unconsolidated VIEs (funds it advises) was $7.1 million** at **September 30, 2020**, and **$7.0 million at June 30, 2020**, limited to the carrying value of its investments and fees receivable[21](index=21&type=chunk) - The Company is evaluating the potential impact of ASU 2016-13 (Credit Losses) and ASU 2019-12 (Income Taxes), effective for smaller reporting companies after **December 15, 2022**, and **December 15, 2020**, respectively[26](index=26&type=chunk)[28](index=28&type=chunk) [NOTE 2. DISCONTINUED OPERATIONS](index=12&type=section&id=NOTE%202.%20DISCONTINUED%20OPERATIONS) This note details the sale of the Company's shares in Galileo Global Equity Advisors Inc. effective March 2, 2020, resulting in its classification as discontinued operations. The financial results of Galileo prior to the sale are presented separately, and the Company retains only an equity method investment in a fund managed by Galileo - The Company **sold its shares in Galileo for approximately $746,000**, recording a realized gain of **$151,000** and a foreign currency loss of **$228,000**[29](index=29&type=chunk) - Galileo's operations are reflected as 'discontinued operations' through **March 2, 2020**, with no continuing involvement except for an equity method investment[30](index=30&type=chunk)[31](index=31&type=chunk) Loss from Discontinued Operations (Three Months Ended September 30, 2019) | Metric (in thousands) | 2019 | | :-------------------- | :--- | | Advisory fees | $100 | | Total Expenses | $247 | | Loss from discontinued operations before income taxes | $(136) | | Net loss attributable to U.S. Global Investors, Inc. from discontinued operations | $(88) | [NOTE 3. INVESTMENTS](index=13&type=section&id=NOTE%203.%20INVESTMENTS) This note provides a comprehensive overview of the Company's investment portfolio, including securities at fair value, other investments, and equity method investments. It details the fair value hierarchy, investment income/loss components, and specific holdings in companies like HIVE Blockchain Technologies Ltd., Thunderbird Entertainment Group Inc., and GoldSpot Discoveries Corp - As of **September 30, 2020**, the Company held **approximately $12.6 million in securities at fair value (60.5% of total assets)**, **$1.3 million in other investments**, and **$182,000 in equity method investments**[35](index=35&type=chunk)[101](index=101&type=chunk) Investment Income (Loss) from Continuing Operations (Three Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | Change | % Change | | :-------------------- | :------ | :------- | :------ | :------- | | Unrealized gains (losses) on fair valued securities | $1,107 | $(3,062) | $4,169 | 136.16% | | Total Investment Income (Loss) | $998 | $(3,030) | $4,028 | 132.94% | - **Approximately 100% of the Company's financial assets measured at fair value were classified as Level 1** (quoted prices in active markets) as of **September 30, 2020**, and **June 30, 2020**[50](index=50&type=chunk) - The Company holds significant investments in **HIVE Blockchain Technologies Ltd. ($2.7 million)**, **Thunderbird Entertainment Group Inc. ($1.8 million)**, and **GoldSpot Discoveries Corp. ($987,000)** as of **September 30, 2020**, all classified as Level 1[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - The **equity method investment in Galileo Technology and Blockchain LP, valued at $182,000, generated $21,000 in income** for the three months ended **September 30, 2020**, **compared to a $27,000 loss** in the prior year[58](index=58&type=chunk) [NOTE 4. INVESTMENT MANAGEMENT AND OTHER FEES](index=17&type=section&id=NOTE%204.%20INVESTMENT%20MANAGEMENT%20AND%20OTHER%20FEES) This note disaggregates operating revenues by performance obligation, detailing advisory and administrative fees from USGIF and ETF clients. It highlights the significant increase in ETF advisory fees and the impact of performance fees and fee waivers Operating Revenues by Performance Obligation (Three Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | Change | % Change | | :-------------------- | :------ | :------ | :------ | :------- | | USGIF advisory fees | $896 | $836 | $60 | 7.18% | | USGIF performance fees earned (paid) | $9 | $(197) | $206 | 104.57% | | ETF advisory fees | $2,290 | $121 | $2,169 | 1792.56% | | Total Operating Revenue | $3,245 | $804 | $2,441 | 303.61% | - The Company waived or reduced fees and/or paid expenses for USGIF funds **totaling $216,000** for the three months ended **September 30, 2020**, an **increase from $144,000** in the prior year[60](index=60&type=chunk) - Receivables from fund clients **increased from $869,000** at **June 30, 2020**, **to $1.2 million** at **September 30, 2020**, primarily driven by ETF receivables[62](index=62&type=chunk) [NOTE 5. RESTRICTED CASH](index=18&type=section&id=NOTE%205.%20RESTRICTED%20CASH) This note clarifies the nature and amount of restricted cash, which serves as collateral for credit facilities and is not available for general corporate use Restricted Cash (in thousands) | Metric | Sep 30, 2020 | Jun 30, 2020 | | :----- | :----------- | :----------- | | Restricted cash | $1,000 | $1,025 | - **Restricted cash of $1 million** serves as collateral for a credit facility[63](index=63&type=chunk) [NOTE 6. LEASES](index=18&type=section&id=NOTE%206.%20LEASES) This note details the Company's lease agreements for office equipment, including lease expenses and liabilities for continuing operations. It also provides information on the Company's role as a lessor for parts of its office building Lease Costs from Continuing Operations (Three Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | | :-------------------- | :--- | :--- | | Operating lease cost | $13 | $14 | | Short-term lease cost | $26 | $25 | | Total lease cost | $39 | $39 | - **Lease income from being a lessor increased from $17,000 in Q3 2019 to $23,000 in Q3 2020**[66](index=66&type=chunk) - **Maturities of lease liabilities for continuing operations total $80,000** through **fiscal year 2022**[66](index=66&type=chunk) [NOTE 7. BORROWINGS](index=19&type=section&id=NOTE%207.%20BORROWINGS) This note describes the Company's borrowing arrangements, including a $1 million credit facility and a $442,000 loan obtained under the Paycheck Protection Program (PPP) during the COVID-19 pandemic, and the status of its forgiveness application - The Company has **access to a $1 million unutilized credit facility**, **collateralized by $1 million in restricted cash**, expiring **May 31, 2021**[68](index=68&type=chunk)[112](index=112&type=chunk) - The Company received a **$442,000 PPP loan** in **April 2020**, maturing **April 2022** with a **1% interest rate**, and has applied for loan forgiveness[69](index=69&type=chunk)[70](index=70&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) [NOTE 8. STOCKHOLDERS' EQUITY](index=19&type=section&id=NOTE%208.%20STOCKHOLDERS'%20EQUITY) This note outlines the Company's policies regarding cash dividends, its share repurchase program, and stock option plans, including recent activity and outstanding options - A monthly dividend of **$0.0025 per share** was paid and authorized through **December 2020**[72](index=72&type=chunk)[87](index=87&type=chunk) - The Company **repurchased 1,000 Class A shares for $2,000** during the three months ended **September 30, 2020**, under its **annual $2.75 million share repurchase program**[73](index=73&type=chunk)[133](index=133&type=chunk) - There were **2,000 stock options outstanding** and exercisable at **September 30, 2020**, with a weighted average exercise price of **$2.74**[74](index=74&type=chunk) [NOTE 9. EARNINGS PER SHARE](index=20&type=section&id=NOTE%209.%20EARNINGS%20PER%20SHARE) This note provides the computation for basic and diluted earnings per share, reflecting the impact of continuing and discontinued operations Earnings Per Share Attributable to U.S. Global Investors, Inc. (Three Months Ended September 30) | Metric (per share) | 2020 | 2019 | | :----------------- | :---- | :----- | | Basic Net Income (Loss) per Share | $0.13 | $(0.24) | | Diluted Net Income (Loss) per Share | $0.13 | $(0.24) | | Basic weighted average number of common shares outstanding | 15,080,549 | 15,130,235 | | Diluted weighted average number of common shares outstanding | 15,080,743 | 15,130,235 | [NOTE 10. INCOME TAXES](index=20&type=section&id=NOTE%2010.%20INCOME%20TAXES) This note details the Company's income tax provisions, including U.S. federal and Canadian net operating loss carryovers, capital loss carryovers, charitable contribution carryovers, and the valuation allowance recorded against deferred tax assets - The Company has **U.S. federal net operating loss carryovers of $7.7 million**, with **$4.1 million having no expiration**[79](index=79&type=chunk) - Canadian subsidiary USCAN has **total net operating loss carryovers of $169,000**[81](index=81&type=chunk) - A **valuation allowance of $2.3 million** was recorded at **September 30, 2020**, to fully reserve for net operating loss carryovers and other book/tax differences[82](index=82&type=chunk) [NOTE 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=22&type=section&id=NOTE%2011.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) This note presents the changes in accumulated other comprehensive income (loss), primarily driven by foreign currency translation adjustments Change in Accumulated Other Comprehensive Income (Loss) (Three Months Ended September 30) | Metric (in thousands) | 2020 | 2019 | | :-------------------- | :--- | :--- | | Beginning Balance | $(4) | $(206) | | Foreign currency translation adjustment, net of tax | $4 | $(13) | | Ending Balance | $0 | $(219) | [NOTE 12. FINANCIAL INFORMATION BY BUSINESS SEGMENT](index=22&type=section&id=NOTE%2012.%20FINANCIAL%20INFORMATION%20BY%20BUSINESS%20SEGMENT) This note disaggregates the Company's financial performance into two continuing business segments: Investment Management Services (for USGIF and ETF clients) and Corporate Investments, highlighting their respective contributions to revenues and income Income from Continuing Operations Before Income Taxes by Segment (Three Months Ended September 30) | Segment (in thousands) | 2020 | 2019 | Change | % Change | | :--------------------- | :------ | :------- | :------ | :------- | | Investment Management Services | $1,002 | $(587) | $1,589 | 270.70% | | Corporate Investments | $972 | $(3,116) | $4,088 | 131.19% | | Consolidated Total | $1,974 | $(3,703) | $5,677 | 153.30% | - **Net operating revenues from Investment Management Services increased significantly, driven by ETF clients ($2.3 million in 2020 vs. $121,000 in 2019)**[84](index=84&type=chunk) - Gross identifiable assets for Corporate Investments were **$14.29 million** at **September 30, 2020**, **compared to $6.499 million for Investment Management Services**[84](index=84&type=chunk) [NOTE 13. CONTINGENCIES AND COMMITMENTS](index=23&type=section&id=NOTE%2013.%20CONTINGENCIES%20AND%20COMMITMENTS) This note addresses potential liabilities from legal proceedings, the Company's dividend commitments, and reiterates the ongoing uncertainty and potential material financial impact of the COVID-19 pandemic - The Company evaluates and accrues for loss contingencies when probable and reasonably estimable, believing any excess liability will not materially affect financial statements[85](index=85&type=chunk)[86](index=86&type=chunk) - The Board has authorized a **monthly dividend of $0.0025 per share through December 2020**, with an **expected total payout of approximately $113,000** from **October to December 2020**[87](index=87&type=chunk) - The COVID-19 pandemic continues to pose a significant macro-economic risk, with potential for adverse material financial impact on the Company's business and investments[88](index=88&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=24&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial performance and condition for the three months ended September 30, 2020, compared to the prior year. It discusses factors affecting the business, segment performance, detailed results of operations, and the Company's liquidity and capital resources, emphasizing the impact of the COVID-19 pandemic [FACTORS AFFECTING OUR BUSINESS](index=24&type=section&id=FACTORS%20AFFECTING%20OUR%20BUSINESS) This section discusses external and internal factors influencing the company's operations and financial performance - The COVID-19 pandemic has significantly impacted global economies and financial markets, affecting the Company's assets under management (AUM), revenues, and corporate investment valuations[90](index=90&type=chunk) - Despite COVID-19, the Company's operations, including financial reporting and internal controls, have not been adversely affected[91](index=91&type=chunk) [BUSINESS SEGMENTS](index=24&type=section&id=BUSINESS%20SEGMENTS) This section analyzes the performance and key metrics of the company's distinct business segments - **Total assets under management (AUM) increased by $1.7 billion (350.7%) to $2.2 billion** at **September 30, 2020**, **compared to $498.0 million** at **September 30, 2019**[96](index=96&type=chunk) - The AUM increase was primarily driven by inflows into ETF clients, particularly the U.S. Global Jets ETF (JETS ETF), which accelerated from **March to September 2020**[97](index=97&type=chunk) USGIF Assets Under Management (AUM) Changes (Three Months Ended September 30, 2020) | Metric (in thousands) | Equity | Fixed Income | Total | | :-------------------- | :-------- | :----------- | :-------- | | Beginning Balance | $343,214 | $82,683 | $425,897 | | Market appreciation | $53,668 | $96 | $53,764 | | Net shareholder purchases (redemptions) | $(7,397) | $6,698 | $(699) | | Ending Balance | $389,485 | $89,373 | $478,858 | - The **average annualized investment management fee rate for USGIF decreased from 76 basis points in Q3 2019 to 74 basis points in Q3 2020**, mainly due to fee waivers in equity funds[99](index=99&type=chunk) [RESULTS OF OPERATIONS – Three months ended September 30, 2020, and 2019](index=26&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%93%20Three%20months%20ended%20September%2030%2C%202020%2C%20and%202019) This section provides a detailed comparison of the company's financial results for the specified periods - **Net income attributable to U.S. Global Investors, Inc. was $1.9 million ($0.13 per share)** for **Q3 2020**, a **positive change of $5.5 million from a net loss of $3.6 million ($0.24 per share loss)** in **Q3 2019**[103](index=103&type=chunk) - **Total operating revenues increased by $2.4 million (303.6%)** due to a **$2.2 million increase in ETF unitary management fees and a $206,000 positive change in USGIF performance fees**[104](index=104&type=chunk)[105](index=105&type=chunk) - **Operating expenses increased by $836,000 (56.8%)**, primarily due to **higher general and administrative expenses ($560,000)** related to ETF growth and **increased employee compensation ($250,000)** from fund performance bonuses[104](index=104&type=chunk) - **Other income (loss) improved by $4.1 million**, **driven by a $4.0 million positive change in investment income (from a $3.0 million loss to a $998,000 gain)**, largely due to unrealized gains in cryptocurrency mining equity securities[105](index=105&type=chunk)[106](index=106&type=chunk) - **Income from equity method investments improved by $48,000**, **shifting from a $27,000 loss in Q3 2019 to a $21,000 gain in Q3 2020**, influenced by technology and cryptocurrency mining stocks[106](index=106&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=27&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses the company's ability to meet short-term obligations and fund long-term growth - At **September 30, 2020**, the Company had **net working capital of $9.3 million and a current ratio of 5.4 to 1**, with **$2.6 million in cash and cash equivalents and $12.6 million in securities at fair value**[109](index=109&type=chunk) - **Cash and marketable securities totaling approximately $15.2 million** are available to fund current activities, and management believes current reserves and financing will meet foreseeable cash needs[115](index=115&type=chunk) - The Company's investment advisory and administrative services contracts with USGIF and ETFs are anticipated to be renewed through **September 2021**[114](index=114&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=28&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section highlights accounting policies requiring significant judgment and estimation by management - For a discussion of critical accounting policies, refer to the notes to the consolidated financial statements in the Annual Report on Form 10-K for the **fiscal year ended June 30, 2020**[116](index=116&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=28&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the Company's exposure to various market risks, including the ongoing impact of the COVID-19 pandemic, fluctuations in assets under management affecting revenues, volatility in performance fees, price risks associated with corporate investments (especially in cryptocurrency-related stocks), and foreign currency risk - The COVID-19 pandemic continues to adversely affect global financial markets, impacting AUM, revenues, and corporate investment valuations[117](index=117&type=chunk)[125](index=125&type=chunk) - Revenues are sensitive to market value fluctuations of AUM, particularly in equity funds with exposure to international markets and natural resource sectors[118](index=118&type=chunk) - Performance fees, which adjust based on fund performance relative to benchmarks, **contributed a $9,000 increase in Q3 2020, a significant improvement from a $197,000 decrease in Q3 2019**[119](index=119&type=chunk)[120](index=120&type=chunk) Hypothetical Impact of Market Price Changes on Securities at Fair Value (September 30, 2020) | Metric (in thousands) | Fair Value at Sep 30, 2020 | Hypothetical Percentage Change | Estimated Fair Value After Hypothetical Price Change | | :-------------------- | :------------------------- | :----------------------------- | :--------------------------------------------------- | | Securities at fair value | $12,571 | 25% increase | $15,714 | | | | 25% decrease | $9,428 | - **Investments in HIVE Blockchain Technologies Ltd. ($2.7 million) and the equity method investment in Galileo Technology and Blockchain LP ($182,000)** are subject to significant volatility due to their concentration in cryptocurrency markets[126](index=126&type=chunk)[127](index=127&type=chunk) - The Company is exposed to foreign currency risk, primarily Canadian, affecting cash and corporate investments[128](index=128&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=30&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of the Company's disclosure controls and procedures as of September 30, 2020, and states that there have been no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of **September 30, 2020**[129](index=129&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the three months ended **September 30, 2020**[130](index=130&type=chunk) PART II. OTHER INFORMATION This part includes additional disclosures not covered in the financial statements, such as risk factors and equity sales [ITEM 1A. RISK FACTORS](index=31&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section refers readers to the Company's Annual Report on Form 10-K for a comprehensive discussion of risk factors, noting that no material changes have occurred since the fiscal year-end - No material changes to the Company's risk factors have occurred since the **fiscal year ended June 30, 2020**, as detailed in the Annual Report on Form 10-K[132](index=132&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=31&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section provides details on the Company's share repurchase program, including the number of shares purchased and the amount spent during the quarter Issuer Purchases of Equity Securities (Three Months Ended September 30, 2020) | Period | Total Number of Shares Purchased | Total Amount Purchased (in thousands) | Average Price Paid Per Share | | :--------------- | :------------------------------- | :------------------------------------ | :--------------------------- | | 07-01-20 to 07-31-20 | - | - | - | | 08-01-20 to 08-31-20 | - | - | - | | 09-01-20 to 09-30-20 | 1,000 | $2 | $2.25 | | Total | 1,000 | $2 | $2.25 | - The Company's Board of Directors approved an **annual share repurchase program of up to $2.75 million**, renewed through calendar year **2020**[133](index=133&type=chunk)[134](index=134&type=chunk) [ITEM 6. EXHIBITS](index=32&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Form 10-Q, including certifications and XBRL documents - The report includes **Rule 13a-14(a) Certifications (Section 302) and Section 1350 Certifications (Section 906) of the Sarbanes-Oxley Act of 2002**, along with XBRL taxonomy extension documents[136](index=136&type=chunk) [SIGNATURES](index=33&type=section&id=SIGNATURES) This section contains the duly authorized signatures of the Registrant's Chief Executive Officer and Chief Financial Officer, affirming the submission of the report - The report was signed by **Frank E. Holmes, Chief Executive Officer, and Lisa C. Callicotte, Chief Financial Officer, on November 5, 2020**[140](index=140&type=chunk)

U.S. Global Investors, Inc. (NASDAQ:GROW) Q4 2020 Earnings Conference Call September 11, 2020 8:30 AM ET Company Participants Holly Schoenfeldt - Marketing and Public Relations Manager Frank Holmes - Chief Executive Officer and Chief Investment Officer Lisa Callicotte - Chief Financial Officer Operator The webinar will begin shortly. Please remain on the line. The broadcast is now starting. All attendees are in listen-only mode. Holly Schoenfeldt Good morning, and thank you for joining us today for our webc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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. Incorporated in the State of Texas IRS Employer Identification No. 74-1598370 Principal Executive Offices: 7900 Callaghan Road San Antonio, Texas 78229 Telephone Number: 210-308-1234 Securities registered pursuant to Section 12(b) of the Act ...

U.S. Global Investors, Inc. (NASDAQ:GROW) Q3 2020 Earnings Conference Call May 15, 2020 8:30 AM ET Company Participants Holly Schoenfeldt - Marketing and PR Manager Frank E. Holmes - CEO and Chief Investment Officer Lisa Callicotte - CFO Conference Call Participants Holly Schoenfeldt Good morning and thank you for joining us for our webcast announcing U.S. Global Investors Results for the Third Quarter of Fiscal Year 2020. I'm Holly Schoenfeldt. If you have any questions during the [technical difficulty] en ...

GROW THIRD QUARTER 2020 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 May 2020 • 20-122 usfunds.com TODAY'S PRESENTERS Frank Holmes Lisa Callicotte Holly Schoenfeldt usfunds.com May 2020 | 20-122 2 usfunds.com | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------ ...

Financial Data and Key Metrics Changes - Total operating revenues for the quarter were $887,000, an increase of $94,000 or 12% from $793,000 in the same quarter last year, primarily due to decreases in performance fees and higher assets under management [29][30] - Operating expenses decreased by $251,000 or 15% to $1.4 million, mainly due to a reduction in employee compensation and general administrative expenses [29][30] - The net loss attributable to U.S. Global Investors after taxes for the quarter was $1 million, equating to a loss of $0.06 per share [30][31] Business Line Data and Key Metrics Changes - The company has maintained a strong balance sheet with a high level of cash and unrestricted marketable securities, which combined make up 60% of total assets [31] - The company has no long-term debt, with only lease obligations as long-term liabilities, and a net working capital of $10.2 million [31] Market Data and Key Metrics Changes - The mutual fund industry continues to see more exits than entries, with an unprecedented number of funds being merged or liquidated, surpassing the opening of new mutual funds [10] - The trading volume for the company's ETF, GOAU, has increased significantly, with a 700% rise in daily trading volume [13] Company Strategy and Development Direction - The company aims to be a go-to stock for exposure to emerging markets, resource gold, and digital currencies, emphasizing its debt-free status and strong balance sheet [4][5] - The company is focusing on innovative strategies to streamline costs in the mutual fund world and enhance its product offerings, particularly in gold and emerging markets [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry recovering from the impact of the Coronavirus, suggesting that it is undervalued and will rebound as solutions to the pandemic are found [37] - The company sees potential catalysts for growth in 2020, particularly through its gold funds and the performance of HIVE Blockchain, which is expected to positively impact GROW's valuation [48] Other Important Information - The company has been recognized for its excellence in investor education, receiving numerous awards, and continues to grow its subscriber base for investment newsletters [35] - The company is actively engaging in media outreach to enhance its brand visibility and attract potential investors [32][33] Q&A Session Summary Question: How is the Coronavirus impacting investments in some of your global funds or your airline ETF? - Management indicated that the Coronavirus has a more negative impact than SARS, particularly on Asian airlines, but remains optimistic about the U.S. economy and airline industry recovery [37] Question: How will the Galileo transaction affect the USGI financials? - Post-transaction, USGI will no longer consolidate Galileo's assets and liabilities, and will not include its income or loss in the income statement [38] Question: How do you see the recent resurgence in HIVE impacting GROW this year? - The resurgence in HIVE is expected to significantly increase GROW's valuation, with shares rising from $1 million to $4.7 million [44][46] Question: What global catalysts do you see potentially moving GROW in 2020? - Management highlighted the potential for growth through gold funds and the crypto space, particularly with HIVE Blockchain's developments and the increasing interest in alternative asset classes [48]