Core Viewpoint - U.S. Global Investors, Inc. has successfully listed its shipping ETF, the U.S. Global Sea to Sky Cargo ETF (SEA), on the Mexican Stock Exchange, expanding its international presence and providing investors with access to the global transportation and logistics sectors [1][3]. Company Overview - U.S. Global Investors, Inc. is a registered investment advisory firm with over 50 years of history, focusing on niche markets globally [5]. - The company specializes in gold mining stocks and the airline industry, and now aims to enhance its offerings in the shipping sector through the SEA ETF [1][5]. ETF Details - The SEA ETF is the first pure-play maritime shipping and air freight ETF listed on the BMV, joining the U.S. Global Jets ETF (JETS) and U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) [2][4]. - Launched in January 2022, SEA aims to provide diversified access to the global shipping and air freight industries, utilizing a Smart Beta 2.0 strategy to identify efficient companies in these sectors [4][13]. Market Context - The Bolsa Mexicana de Valores (BMV) is the second-largest stock exchange in Latin America, with a market capitalization exceeding $530 billion, indicating a significant opportunity for investment in the region [3]. - The Mexican government is investing billions to modernize its seaports, which aligns with SEA's focus on global trade expansion, particularly between North America and East Asia [4][3]. Industry Insights - Over 80% of global goods are transported by sea, highlighting the critical role of the companies within SEA's index in global commerce [5]. - The U.S. Global Sea to Sky Cargo Index (SEAX) tracks companies involved in marine shipping, air freight, and port operations, providing diversified exposure across various market capitalizations [13].

Core Viewpoint - U.S. Global Investors, Inc. continues to pay monthly dividends and is increasing its exposure to the Bitcoin ecosystem, reflecting a favorable regulatory environment for digital assets and a strategic focus on sectors that perform well during market stress [1][3][4]. Dividend Announcement - The Board approved a monthly dividend of $0.0075 per share starting July 2025 through September 2025, with record dates on July 14, August 11, and September 15, and payment dates on July 28, August 25, and September 29 [2]. - Based on the closing price of $2.41 on June 16, 2025, this dividend represents an annualized yield of 3.73%, while the shareholder yield was reported at 10.5% as of March 31, 2025 [2][12]. Bitcoin Ecosystem Investment - The company is accumulating investments in the Bitcoin ecosystem, indicating a belief in Bitcoin as a legitimate portfolio diversifier [3][4]. - CEO Frank Holmes highlighted the growing trend of publicly traded companies holding Bitcoin, suggesting a shift in market perception towards digital assets [4]. Fear Trade Strategy - The company suggests that investors consider the "Fear Trade," which includes investments that historically perform well during geopolitical tensions, inflation, or market stress [5]. Gold and Precious Metals - Gold remains a key asset in global reserve management, with central banks accumulating gold at a record pace; 95% of surveyed central banks expect global gold reserves to rise [6]. - The U.S. Global GO GOLD and Precious Metal Miners ETF targets high-quality gold mining and royalty companies, focusing on those with strong fundamentals [6]. Defense Sector Insights - Global armed conflict and defense spending have surged, with 2024 marking the highest number of state-based conflicts since 1946; defense budgets are increasing with a focus on cybersecurity, AI, and aerospace modernization [7]. - The U.S. Global Technology and Aerospace & Defense ETF employs a Smart Beta 2.0 strategy to invest in companies at the intersection of national security and innovation [7].

Financial Data and Key Metrics Changes - The company reported assets under management of $1.4 billion for the quarter, with operating revenues of $2.1 million, reflecting a decrease of $490,000 or 19% from the same quarter last year [64][65] - The net loss for the quarter was $832,000, or $0.03 per share, which is an unfavorable change compared to a net loss of $35,000 in the same quarter of the previous fiscal year [67] - Operating expenses were $3 million, a decrease of $85,000 or 3%, primarily due to lower fund expenses [66] Business Line Data and Key Metrics Changes - The decrease in operating revenues was primarily attributed to declines in assets under management, particularly in the JET ETF [65] - Operational earnings consist of advisory services and other earnings, which include realized and unrealized gains and losses on investment holdings [65] Market Data and Key Metrics Changes - The company noted a significant apathy towards the airline industry despite strong performance from airlines like United, which was up 130% last year [18][36] - The gold mining stocks are trading at multiyear highs, yet there is a paradox where redemptions are occurring despite rising gold prices [40][42] Company Strategy and Development Direction - The company aims to increase exposure to the Bitcoin ecosystem and plans to deploy remaining capital back into Bitcoin and Hive, citing a unique growth opportunity [17][26] - The strategic buyback of stock is part of the company's two-pillar strategy to enhance shareholder value through increasing dividends and buying back stock [48][53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry transitioning from a cyclical to a growth business, driven by increased travel demand post-COVID [23][20] - The company remains bullish on gold as an asset class, anticipating continued interest from central banks and a potential rise in gold prices due to modern monetary theory [30][34] Other Important Information - The company has maintained a strong balance sheet with high levels of cash and securities, and it has no long-term debt [67] - The current dividend yield is approximately 4.13%, with a total shareholder yield of 10.53% [50][53] Q&A Session Summary Question: What is the company's outlook on the airline industry? - Management believes the airline industry will evolve into a growth business rather than remaining cyclical, supported by strong demand for travel [18][20] Question: How does the company view the current state of gold stocks? - Despite the paradox of rising gold prices and redemptions in gold stocks, management remains optimistic about the long-term potential of gold as a safe haven asset [40][42] Question: What are the company's plans regarding Bitcoin investments? - The company plans to increase its exposure to Bitcoin through a dollar-cost averaging program and investments in Hive shares, anticipating regulatory changes that will favor Bitcoin [26][17]

Financial Data and Key Metrics Changes - The company reported assets under management of $1.4 billion and operating revenues of $2.1 million for the quarter, with a net loss of $832,000, translating to a loss of $0.03 per share, which is an unfavorable change compared to a net loss of $35,000 in the same quarter last year [65][68] - Operating revenues decreased by $490,000 or 19% from $2.6 million in the same quarter last year, primarily due to decreases in assets under management, particularly in the JET ETF [66] - Operating expenses were $3 million, a decrease of $85,000 or 3%, mainly due to lower fund expenses [67] Business Line Data and Key Metrics Changes - The operational earnings consist of advisory services and other earnings, which are subject to market fluctuations [66] - The operating loss for the quarter was $893,000, an unfavorable change of $405,000 compared to the same quarter last year [67] Market Data and Key Metrics Changes - The company experienced a significant decrease in assets under management, which impacted overall revenues [66] - Despite the challenges, the company maintains a strong balance sheet with high levels of cash and securities, and no long-term debt [68] Company Strategy and Development Direction - The company aims to create thematic products that are sustainable using a Smart Beta 2.0 strategy, which requires rigorous backtesting [13] - There is a strategic focus on increasing exposure to the Bitcoin ecosystem, with plans to deploy capital back into Bitcoin and Hive shares due to their growth potential [17][26] - The company is committed to stock buybacks and increasing dividends as part of its strategy to enhance shareholder value [49][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry transitioning from a cyclical to a growth business, citing strong performance from airlines like United [18][23] - There is a belief that gold will continue to perform well as a safe haven asset, especially with increasing central bank purchases and regulatory changes favoring physical gold [30][34] - The company acknowledges current market apathy but remains confident in the long-term growth potential of its products and strategies [45][59] Other Important Information - The company has been actively engaging with shareholders through various platforms, including social media and video content [70][73] - Upcoming participation in industry conferences to connect with potential shareholders and enhance market presence [71] Q&A Session Summary Question: What is the outlook for the airline industry? - Management believes the airline industry will transition from being cyclical to a growth business, supported by strong demand and pricing power [18][23] Question: How does the company plan to address current market challenges? - The company plans to focus on stock buybacks and increasing dividends while maintaining a strong balance sheet to weather market volatility [49][51] Question: What is the company's stance on gold investments? - Management remains bullish on gold, citing its historical performance and the increasing interest from central banks as key factors for future growth [30][34]

Financial Performance & Strategy - U.S Global Investors reported average assets under management of $1.5 billion[106, 116] and operating revenues of $2.2 million for the quarter ended December 31, 2024[106, 116] - The company experienced a net loss of $86,000 for the quarter[116] - The company repurchased 236,731 class A shares for approximately $587,000 during the three months ended December 31, 2024[56] - U.S Global Investors has paid a monthly dividend of $0.0075 per share since June 2007, with a current yield of 3.67% based on a share price of $2.45 as of February 7, 2025[62, 63] Investment Products & Market Trends - U.S. Global Investors launched The U.S Global Technology and Aerospace & Defense ETF (NYSE: WAR) on December 30, 2024[78] - The U.S Global Jets ETF (JETS) outperformed the market and the Airlines Index in 2024, with a NAV Total Return of +33.21%[90] - The U.S Global GOLD and Precious Metal Miners ETF (GOAU) outperformed gold mining stocks in 2024, with a NAV Total Return of +13.66%[97, 98] - The U.S Global SEA ETF ended positive for 2024, with a NAV Total Return of 18.56%[100, 101] Shareholder Value - GROW shareholder yield is 10.06% compared to 5-Year Treasury Yield of 4.58% and 10-Year Treasury Yield of 4.38%[69]