U.S. Global Investors Reports Q3 2024 Results

TL;DR

<b>U.S. Global Investors reported a decrease in revenue but an increase in net investment income for the nine months ended March 31, 2024.</b>

AI Summary

U S GLOBAL INVESTORS INC (GROW) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Revenue for the nine months ended March 31, 2024, was $6,651,000, a decrease from $7,729,000 for the same period in 2023. Net investment income for the nine months ended March 31, 2024, was $2,068,549, compared to $1,370,325 for the prior year period. Earnings per share (EPS) for the nine months ended March 31, 2024, was $0.025, unchanged from the prior year period. The company reported total assets of $28,000,000 as of March 31, 2024. Total debt was $13,866,999 as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking U S GLOBAL INVESTORS INC, this filing contains several important signals. The decline in revenue may indicate challenges in asset gathering or fee generation, impacting top-line growth. The increase in net investment income, despite lower revenue, suggests improved operational efficiency or favorable investment performance.

Risk Assessment

Risk Level: medium — U S GLOBAL INVESTORS INC shows moderate risk based on this filing. The company's financial performance shows mixed results with declining revenue and increasing debt, indicating potential financial headwinds.

Analyst Insight

Investors should monitor revenue trends and debt levels in future filings to assess the company's financial health and growth prospects.

Revenue Breakdown

Key Numbers

• 6,651,000 — Revenue (9 months ended 3/31/24) (Consolidated Statements of Operations)
• 7,729,000 — Revenue (9 months ended 3/31/23) (Consolidated Statements of Operations)
• 2,068,549 — Net Investment Income (9 months ended 3/31/24) (Consolidated Statements of Operations)
• 1,370,325 — Net Investment Income (9 months ended 3/31/23) (Consolidated Statements of Operations)
• 0.025 — EPS (9 months ended 3/31/24) (Consolidated Statements of Operations)
• 28,000,000 — Total Assets (as of 3/31/24) (Consolidated Balance Sheets)
• 13,866,999 — Total Debt (as of 3/31/24) (Consolidated Balance Sheets)

Key Players & Entities

• U S GLOBAL INVESTORS INC (company) — Filer
• GROW (company) — Ticker Symbol
• 2024-03-31 (date) — End of Reporting Period
• 2024-05-09 (date) — Filing Date
• $6,651,000 (dollar_amount) — Revenue for nine months ended March 31, 2024
• $7,729,000 (dollar_amount) — Revenue for nine months ended March 31, 2023
• $2,068,549 (dollar_amount) — Net investment income for nine months ended March 31, 2024
• $1,370,325 (dollar_amount) — Net investment income for nine months ended March 31, 2023

FAQ

Risk Factors

• Changes in Unrealized Gains and Losses [medium — financial]: Changes in unrealized gains and losses related to embedded derivatives and measurement alternatives for investments can impact net investment income.

Key Financial Figures

• $0.025 — ich registered Class A common stock, $0.025 par value per share GROW NASDAQ Capi

Filing Documents

• usglobal20240331_10q.htm (10-Q) — 1879KB
• ex_628195.htm (EX-31.1) — 24KB
• ex_628196.htm (EX-32.1) — 10KB
• 0001437749-24-015690.txt (&nbsp;) — 9442KB
• grow-20240331.xsd (EX-101.SCH) — 66KB
• grow-20240331_cal.xml (EX-101.CAL) — 57KB
• grow-20240331_def.xml (EX-101.DEF) — 474KB
• grow-20240331_lab.xml (EX-101.LAB) — 388KB
• grow-20240331_pre.xml (EX-101.PRE) — 508KB
• usglobal20240331_10q_htm.xml (XML) — 1942KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 1

FINANCIAL STATEMENTS

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) 6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 7

MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 22

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 26

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 27

OTHER INFORMATION

PART II. OTHER INFORMATION 28

RISK FACTORS

ITEM 1A. RISK FACTORS 28

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 28

EXHIBITS

ITEM 6. EXHIBITS 29

SIGNATURES

SIGNATURES 30 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS U.S. GLOBAL INVESTORS, INC. CONSOLIDATED BALANCE SHEETS March 31, 2024 June 30, 2023 (dollars in thousands) (unaudited) Assets Current Assets Cash and cash equivalents $ 27,460 $ 25,401 Restricted cash 1,000 1,000 Investments in trading securities at fair value, current 10,071 11,642 Accounts and other receivables (net of allowance for credit losses of $ 0 , and $ 0 , respectively) 1,027 1,245 Tax receivable 749 576 Prepaid expenses 635 510 Total Current Assets 40,942 40,374 Net Property and Equipment 1,154 1,138 Other Assets Deferred tax asset 1,840 1,920 Investments in trading securities at fair value, non-current 1,435 1,563 Investments in available-for-sale debt securities at fair value (amortized cost: $ 6,651 , and $ 7,729 , respectively) (net of allowance for credit losses of $ 0 , and $ 0 , respectively) 5,190 7,008 Investments in held-to-maturity debt securities at amortized cost 1,000 1,000 Less: Allowance for credit losses ( 157 ) - Investments in held-to-maturity debt securities, net of allowance for credit losses 843 1,000 Other investments 1,114 2,388 Financing lease, right of use assets 45 65 Other assets, non-current 209 217 Total Other Assets 10,676 14,161 Total Assets $ 52,772 $ 55,673 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 58 $ 143 Accrued compensation and related costs 306 1,165 Dividends payable 317 329 Financing lease liability, short-term 31 28 Other accrued expenses 1,629 1,274 Total Current Liabilities 2,341 2,939 Long-Term Liabilities Deferred tax liability 20 4 Reserve for uncertain tax positions 549 496 Financing lease liability, long-term 16 38 Total Long-Term Liabilities 585 538 Total Liabilities 2,926 3,477 Commitments and Contingencies (Note 14) Shareholders' Equity Common stock (class A) - $ 0.025 par value; nonvoting; 28,000,000 shares authori

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS In connection with the preparation of its Consolidated Financial Statements for the fiscal year ended June 30, 2023, the Company determined that its previously issued Consolidated Financial Statements as of and for the three and nine months ended March 31, 2023 , contained an error. Specifically, the Company did not record certain liabilities as required by FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (codified under ASC 740 - 10 ). Based on management's evaluation of the accounting error under the SEC Staff's Accounting Bulletins Nos. 99 and 108 and interpretations thereof, the Company concluded the error is not material, on an individual or aggregate basis, to the Company's previously reported financial statements. The Company has corrected this accounting error in the accompanying Consolidated Financial Statements as of and for the three and nine months ended March 31, 2023 , as a revision to those financial statements. The following table sets forth the impact of correcting this error in the Company's previously issued Consolidated Financial Statements. Nine Months Ended March 31, 2023 Three Months Ended March 31, 2023 As As Previously Immaterial As Previously Immaterial As (dollars in thousands, except per share data) Reported Revisions Revised Reported Revisions Revised Tax expense (benefit) $ 602 $ 96 $ 698 $ 306 $ 20 $ 326 Net Income (Loss) $ 2,616 $ ( 96 ) $ 2,520 $ 1,640 $ ( 20 ) $ 1,620 Earnings Per Share Basic Net Income (Loss) per Share $ 0.18 $ ( 0.01 ) $ 0.17 $ 0.11 $ ( 0.00 ) $ 0.11 Diluted Net Income (Loss) per Share $ 0.18 $ ( 0.01 ) $ 0.17 $ 0.11 $ ( 0.00 ) $ 0.11 In addition to the changes listed above, the Consolidated Statements of Comprehensive Income, Consolidated Statements of Shareholders' Equity, Consolidated Statements of Cash Flows,

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