usglobal20230930

usglobal20230930_10q.htm

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 September 30, 2023

☐ 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 incorporation or organization)	(IRS Employer Identification No.)

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

(210) 308-1234

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class A common stock,

$0.025 par value per share

GROW

NASDAQ Capital Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On December 8, 2023, there were 13,866,999 shares of Registrant’s class A nonvoting common stock issued and 12,187,354 shares of Registrant’s class A nonvoting common stock issued and outstanding; no shares of Registrant’s class B nonvoting common shares outstanding; and 2,068,549 shares of Registrant’s class C voting common stock issued and outstanding.

Table of Contents

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	1

ITEM 1. FINANCIAL STATEMENTS	1
CONSOLIDATED BALANCE SHEETS (UNAUDITED)	1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)	2
CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME (LOSS) (UNAUDITED)	3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)	4
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)	5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	6
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	23
ITEM 4. CONTROLS AND PROCEDURES	24

PART II. OTHER INFORMATION	25

ITEM 1A. RISK FACTORS	25
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	25
ITEM 6. EXHIBITS	26

SIGNATURES	27

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

U.S. GLOBAL INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

	*September 30, 2023*			*June 30, 2023*
(dollars in thousands)	(unaudited)
Assets
Current Assets
Cash and cash equivalents	$	26,849		$	25,401
Restricted cash		1,000			1,000
Investments in equity securities at fair value, current		10,793			11,642
Accounts and other receivables (net of allowance for credit losses of $0, and $0, respectively)		1,109			1,245
Tax receivable		421			576
Prepaid expenses		337			510
Total Current Assets		40,509			40,374

Net Property and Equipment		1,136			1,138

Other Assets
Deferred tax asset		2,287			1,920
Investments in equity securities at fair value, non-current		1,127			1,563
Investments in available-for-sale debt securities at fair value (amortized cost: $7,414 and $7,729, respectively) (net of allowance for credit losses of $0, and $0, respectively)		6,343			7,008
Investments in held-to-maturity debt securities at amortized cost		1,000			1,000
Less: Allowance for credit losses		(205	)		-
Investments in held-to-maturity debt securities, net of allowance for credit losses		795			1,000
Other investments		1,613			2,388
Financing lease, right of use assets		60			65
Other assets, non-current		222			217
Total Other Assets		12,447			14,161
Total Assets	$	54,092		$	55,673
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	-		$	143
Accrued compensation and related costs		1,197			1,165
Dividends payable		324			329
Financing lease liability, short-term		30			28
Other accrued expenses		1,277			1,274
Total Current Liabilities		2,828			2,939

Long-Term Liabilities
Deferred tax liability		1			4
Reserve for uncertain tax positions		530			496
Financing lease liability, long-term		32			38
Total Long-Term Liabilities		563			538
Total Liabilities		3,391			3,477

Commitments and Contingencies (Note 13)

Shareholders’ Equity
Common stock (class A) - $0.025 par value; nonvoting; 28,000,000 shares authorized; 13,866,999 shares issued at September 30, 2023, and June 30, 2023; 12,303,955 and 12,496,674 shares outstanding at September 30, 2023, and June 30, 2023, respectively		347			347
Common stock (class B) - $0.025 par value; nonvoting; 4,500,000 shares authorized; no shares issued		-			-
Convertible common stock (class C) - $0.025 par value; voting; 3,500,000 shares authorized; 2,068,549 shares issued and outstanding at September 30, 2023, and June 30, 2023		52			52
Additional paid-in-capital		16,444			16,442
Treasury stock, class A shares at cost; 1,563,044 shares and 1,370,325 shares at September 30, 2023, and June 30, 2023, respectively		(4,342	)		(3,740	)
Accumulated other comprehensive income, net of tax		1,134			1,348
Retained earnings		37,066			37,747
Total Shareholders’ Equity		50,701			52,196
Total Liabilities and Shareholders’ Equity	$	54,092		$	55,673

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

Page 1

Table of Contents

U.S. GLOBAL INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	*Three Months Ended*
	*September 30,*
(dollars in thousands, except per share data)	*2023*			*2022*
Operating Revenues
Advisory fees	$	3,103		$	4,377
Administrative services fees		30			35
		3,133			4,412
Operating Expenses
Employee compensation and benefits		1,274			1,175
General and administrative		1,501			1,504
Advertising		81			86
Depreciation		61			61
Interest		1			1
		2,918			2,827
Operating Income		215			1,585
Other Income (Loss)
Net investment income (loss)		(513	)		(1,460	)
Other income		57			61
		(456	)		(1,399	)
Income (Loss) Before Income Taxes		(241	)		186
Provision for Income Taxes
Tax expense (benefit)		(65	)		133
Net Income (Loss)	$	(176	)	$	53

SEC Form 10-Q filed by U.S. Global Investors Inc.