Financial Performance - Total assets under management decreased to approximately $1.2 billion as of March 31, 2025, down from $1.7 billion a year earlier, representing a decrease of $548.2 million [141]. - Average assets under management for the nine months ended March 31, 2025, were $1.5 billion, compared to $1.9 billion for the same period in 2024, indicating a decline of approximately 21.1% [141]. - Operating revenues for the three months ended March 31, 2025, decreased by $490,000, or 18.9%, compared to the same period in 2024, primarily due to a $494,000 decrease in advisory fees [150]. - The company recorded a net loss of $382,000 ($(0.03) per share) for the three months ended March 31, 2025, compared to a net loss of $35,000 ($(0.00) per share) for the same period in 2024 [149]. - The Company recorded a net loss of $153,000 ($(0.01) per share) for the nine months ended March 31, 2025, compared to net income of $1.0 million ($0.07 per share) for the same period in 2024, a change of approximately $1.2 million [156]. - Total consolidated operating revenues decreased by $2.1 million, or 24.0 percent, for the nine months ended March 31, 2025, primarily due to a decrease in advisory fees of $2.1 million, or 24.3 percent [157]. Expenses and Income - Total consolidated operating expenses decreased by $85,000, or 2.8%, for the three months ended March 31, 2025, primarily due to a $281,000 reduction in general and administrative expenses [151]. - Total consolidated operating expenses decreased by $144,000, or 1.7 percent, for the nine months ended March 31, 2025, driven by an $378,000, or 8.0 percent, reduction in general and administrative expenses [158]. - Total consolidated other income increased by approximately $520,000 to $2.1 million for the nine months ended March 31, 2025, primarily due to net investment income of $1.8 million, an increase of $456,000 compared to the previous year [159]. - Net investment income increased to $548,000 for the three months ended March 31, 2025, up from $460,000 in the same period in 2024, reflecting an increase of approximately 19.1% [152]. - The company recorded a tax expense of $137,000 for the three months ended March 31, 2025, an increase of $62,000 compared to the same period in 2024 [153]. - A tax expense of $229,000 was recorded for the nine months ended March 31, 2025, compared to $446,000 for the same period in 2024, representing a decrease of $217,000 [160]. Assets and Equity - The company held investments carried at fair value of $13.3 million as of March 31, 2025, which is approximately 27.3% of the company's total assets [147]. - The Company had net working capital of approximately $37.5 million as of March 31, 2025, a decrease of $666,000, or 1.7 percent, since June 30, 2024 [163]. - Consolidated shareholders' equity decreased by $2.9 million, or 5.9 percent, to $46.1 million since June 30, 2024, primarily due to stock repurchases and dividends paid [164]. Financing and Contracts - The Company has access to a $1.0 million credit facility, which remains unutilized as of March 31, 2025 [165]. - The investment advisory contracts with USGIF have been renewed through September 2025, and the advisory agreement for U.S.-based ETFs has been renewed through July 2025 [166]. - The Company believes current cash reserves and financing will be sufficient to meet foreseeable cash needs for operating activities [168]. Redemption and Fund Activity - The company experienced net redemptions during the nine months ended March 31, 2024, primarily driven by equity fund liquidations, contrasting with an increase in assets under management in 2025 [144].
U.S. Global Investors(GROW) - 2025 Q3 - Quarterly Report