U.S. Global Investors Reports Q2 2025 Results

Ticker: GROW · Form: 10-Q · Filed: Feb 12, 2025 · CIK: 754811

Sentiment: bearish

Topics: financials, earnings, investment-advisory

TL;DR

USGI Q2 earnings down YoY, assets $5.18B, liabilities $6.20B. Fiscal year ends June 30.

AI Summary

U.S. Global Investors Inc. filed its 10-Q for the period ending December 31, 2024. The company reported total assets of $5.187 billion and total liabilities of $6.204 billion. Net income for the period was $2.533 million, a decrease from $2.113 million in the prior year. The company's fiscal year ends on June 30.

Why It Matters

This filing provides insight into the financial health and performance of U.S. Global Investors Inc., a key player in the investment advisory sector.

Risk Assessment

Risk Level: medium — The company's liabilities exceed its assets, indicating potential financial strain.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of U.S. Global Investors Inc.?

U.S. Global Investors Inc. is primarily engaged in investment advisory services, as indicated by its SIC code [6282].

What was the net income for the quarter ending December 31, 2024?

The net income for the quarter ending December 31, 2024, was $2.533 million.

How do the total liabilities compare to total assets as of December 31, 2024?

As of December 31, 2024, total liabilities were $6.204 billion, which is greater than total assets of $5.187 billion.

When does U.S. Global Investors Inc.'s fiscal year end?

The company's fiscal year ends on June 30.

What is the filing date of this 10-Q report?

This 10-Q report was filed on February 12, 2025.

Filing Stats: 4,703 words · 19 min read · ~16 pages · Grade level 15.5 · Accepted 2025-02-12 16:21:58

Key Financial Figures

Filing Documents

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) 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 6

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 21

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 December 31, 2024 June 30, 2024 (dollars in thousands) (unaudited) Assets Current Assets Cash and cash equivalents $ 26,040 $ 27,399 Restricted cash 1,000 1,000 Investments in trading securities at fair value, current 9,671 9,644 Accounts and other receivables (net of allowance for credit losses of $ 0 , and $ 0 , respectively) 1,035 1,047 Receivable for investment principal repayments (net of allowance for credit losses of $ 0 , and $ 0 , respectively) 750 - Tax receivable 779 729 Prepaid expenses 697 498 Total Current Assets 39,972 40,317 Net Property and Equipment 1,123 1,154 Other Assets Deferred tax asset 1,859 1,833 Investments in trading securities at fair value, non-current 1,279 1,449 Investments in available-for-sale debt securities at fair value (amortized cost: $ 5,187 , and $ 6,204 , respectively) (net of allowance for credit losses of $ 0 , and $ 0 , respectively) 3,037 4,414 Investments in held-to-maturity debt securities at amortized cost 1,000 1,000 Less: Allowance for credit losses ( 74 ) ( 132 ) Investments in held-to-maturity debt securities, net of allowance for credit losses 926 868 Other investments 1,687 1,687 Financing lease, right of use assets 24 38 Other assets, non-current 201 203 Total Other Assets 9,013 10,492 Total Assets $ 50,108 $ 51,963 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ - $ 14 Accrued compensation and related costs 486 609 Dividends payable 304 313 Financing lease liability, short-term 25 31 Other accrued expenses 1,186 1,197 Total Current Liabilities 2,001 2,164 Long-Term Liabilities Reserve for uncertain tax positions 822 785 Financing lease liability, long-term - 8 Total Long-Term Liabilities 822 793 Total Liabilities 2,823 2,957 Commitments and Contingencies (Note 13) Shareholders

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. BASIS OF PRESENTATION AND CONSOLIDATION U.S. Global Investors, Inc. (the "Company" or "U.S. Global") has prepared the Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the rules and regulations of the United States Securities and Exchange Commission ("SEC") that permit reduced disclosure for interim periods. The financial information included herein reflects all adjustments (consisting solely of normal recurring adjustments), which are, in management's opinion, necessary for a fair presentation of results for the interim periods presented. The Company has consistently followed the accounting policies set forth in the notes to the Consolidated Financial Statements in the Company's Form 10 -K for the fiscal year ended June 30, 2024 ("Form 10 -K"). The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries, U.S. Global Investors (Bermuda) Limited, U.S. Global Investors (Canada) Limited ("USCAN"), and U.S. Global Indices, LLC. There are two primary consolidation models in U.S. GAAP, the variable interest entity ("VIE") and voting interest entity models. The Company's evaluation for consolidation includes whether entities in which it has an interest or from which it receives fees are VIEs and whether the Company is the primary beneficiary of any VIEs identified in its analysis. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has the obligation to absorb a majority of the expected losses or the right to receive the majority of the residual returns and consolidates the VIE

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