Financial Analysis

NOTE 17. COMMITMENTS AND CONTINGENCIES The Company continuously reviews investor, employee, and vendor complaints, tax claims, and pending or threatened litigation. The likelihood that a loss contingency exists is evaluated through consultation with legal counsel, and a loss contingency is recorded if probable and reasonably estimable. During the normal course of business, the Company may be subject to various claims, legal proceedings, and other contingencies. These matters are subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably. The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated. Management believes that any liability in excess of these accruals upon the ultimate resolution of these matters will not have a material adverse effect on the Consolidated Financial Statements of the Company. Excluding reserves for uncertain tax positions, the Company recorded no accruals for contingencies as of June 30, 2026, or 2025 . The Board of Directors has authorized a monthly dividend of $0.0075 per share from July through September 2026 , at which time it will be considered for continuation by the Board of Directors. Payment of cash dividends is within the discretion of the Companys Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company and general business conditions. The total amount of cash dividends t …

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NOTE 10. BENEFIT PLANS The Company offers a savings and investment plan qualified under Section 401 (k) of the Internal Revenue Code covering substantially all employees. In connection with the 401 (k) plan, participants can voluntarily contribute a portion of their compensation, up to certain limitations, to this plan, and the Company will match 100 percent of participants contributions up to the first 3 percent of compensation and 50 percent of the next 2 percent of compensation. The Company recorded expenses for matching contributions to the 401 (k) plan of $118,000 and $116,000 for fiscal years 2026 and 2025 , respectively. The 401 (k) plan allows for a discretionary profit-sharing contribution by the Company, as authorized by the Board of Directors. The Company made a profit-sharing contribution of $50,000 and $100,000 in fiscal years 2026 and 2025 , respectively. The Company offers employees, including its executive officers, an opportunity to participate in savings programs invested in mutual funds managed by the Company. Employees may contribute to an IRA, with limited matching contributions provided by the Company. Employees may also participate in a similar savings plan utilizing Uniform Gifts to Minors Act (UGMA) accounts for the benefit of minor relatives. The Company's matching contributions under these programs, reflected in compensation expense, totaled $51,000 and $12,000 in fiscal years 2026 and 2025 , respectively. The Company maintains an Employee Stock Pur …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

NOTE 9. DEBT The Company has access to a $1.0 million credit facility for working capital purposes. The credit agreement requires the Company to maintain certain covenants; the Company has been in compliance with these covenants during fiscal years 2026 and 2025 . The credit agreement will expire on May 31, 2028 , and the Company intends to renew it biennially. The credit facility is collateralized by approximately $1.0 million at June 30, 2026 , included in restricted cash on the Consolidated Balance Sheets, held in deposit in a money market account at the financial institution that provided the credit facility. As of June 30, 2026 , the credit facility remains unutilized by the Company. During fiscal year 2025, the Company received loan proceeds of $75,000 from an entity in which it holds an equity investment. The loan is non-interest bearing, non-recourse, and will be repaid through an offset against amounts due upon the entity's final liquidation. Because the timing of liquidation is uncertain, the loan is classified as non-current within notes payable on the Consolidated Balance Sheets.

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Year Ended June 30, (dollars in thousands) 2026 2025 ETF advisory fees $ 6,192 $ 6,642 USGIF advisory fees 3,840 1,930 USGIF performance fees earned (paid) - (247 ) Total Advisory Fees 10,032 8,325 USGIF administrative services fees 219 127 Total Operating Revenue $ 10,251 $ 8,452

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NOTE 12. INCOME TAXES Effective July 1, 2025, the Company adopted ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures. The standard expands certain annual income tax disclosure requirements, including disclosures related to the rate reconciliation and income taxes paid. The Company applied the amendments retrospectively to all periods presented. Adoption affected disclosures only and did not impact the Company's consolidated financial position, results of operations, or net cash flows. Certain prior-period disclosures, including supplemental cash flow information related to income taxes paid, were revised to conform to the new presentation requirements. The Company and its non-Canadian subsidiaries file a consolidated U.S. federal income tax return. USCAN files a separate tax return in Canada. The Company's components of income (loss) before tax by jurisdiction are as follows: Year ended June 30, (dollars in thousands) 2026 2025 United States $ 3,766 $ (322 ) Canada 118 60 Total $ 3,884 $ (262 ) The reconciliation of income tax computed at U.S. federal statutory rates to income tax expense is as follows: Year ended June 30, % of % of (dollars in thousands) 2026 Pretax 2025 Pretax Tax expense (benefit) at statutory rate $ 816 21.0 % $ (55 ) 21.0 % Changes in uncertain tax positions (36 ) (0.9 )% 106 (40.5 )% Foreign tax effects, Canada Rate difference on foreign income (loss) (31 ) (0.8 )% 3 (1.2 )% Changes in valuation allowance 28 0.7 % - 0.0 % C …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Adoption of New Accounting Standard In November 2023, the FASB issued Accounting Standards Update No. 2023 - 07, Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures (ASU 2023 - 07 ), which enhances annual and interim disclosure requirements for reportable segments. The Company adopted ASU 2023 - 07 retrospectively for its fiscal year 2025 annual Consolidated Financial Statements and the interim disclosure requirements beginning in fiscal year 2026. The adoption did not have a material impact on the Companys Consolidated Financial Statements but resulted in enhanced segment disclosures. In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures, which enhances the transparency and usefulness of income tax disclosures. The Company adopted ASU 2023 - 09 retrospectively for its annual disclosures for the year ended June 30, 2026. The adoption resulted in enhanced income tax disclosures and did not have a material impact on the Company's consolidated financial position, results of operations, or net cash flows. Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses (ASU 2024 - 03 ), which requires public business entities to disclose specified information about certain costs and expenses. ASU 2024 - 03 is effective for ann …

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NOTE 16. RELATED PARTY TRANSACTIONS U.S. Global Investors Funds (USGIF or the Fund(s)) and U.S. Global exchange-traded fund (ETF) clients As of June 30, 2026 , and 2025 , the Company held investments in USGIF, funds it advises, with a fair value of $9.7 million and $10.5 million, respectively. These investments are included in investments in equity securities at fair value on the Consolidated Balance Sheets. During fiscal 2026 , the Company redeemed $800,000 of its USGIF investments and recognized $5,000 of net realized losses. No redemptions were made during fiscal 2025 . The Company recorded income from capital gain distributions and dividends on its USGIF investments of $351,000 and $406,000 for fiscal years 2026 and 2025 , respectively. As of June 30, 2026 , and 2025 , the Company also held investments in U.S. Global ETF clients, funds it advises, with a fair value of $45,000 and $32,000, respectively. These investments are included in investments in equity securities at fair value on the Consolidated Balance Sheets. There were no transactions made in U.S. Global ETF clients during fiscal 2026 . During the fiscal 2025 , the Company purchased $109,000, sold $60,000, and recognized $19,000 of net realized losses on its investments in U.S. Global ETF clients. The Company earned advisory and administrative services fees from the various funds for which it acts as investment adviser, as disclosed in Note 4 . Receivables include amounts due from these funds for such fees and re …

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"NOTE 15. FINANCIAL INFORMATION BY BUSINESS SEGMENT The Company manages the following business segments : 1. Investment management services, by which the Company offers, to USGIF and ETF clients, a range of investment management products and services to meet the needs of individual and institutional investors; and 2. Corporate investments, through which the Company invests for its own account in an effort to add growth and value to its cash position. These segments are managed separately. The Companys segment information is prepared on the same basis that management uses to review the financial information for operational and investment decision-making purposes. All segment accounting policies are the same as those described in the summary of significant accounting policies. The Company's Chief Executive Officer, serving as the Chief Operating Decision Maker (""CODM""), evaluates the performance of the Investment Management Services segment based on segment profit (loss), which is calculated as operating revenues less other operating expenses. Other operating expenses used in the calculation include employee compensation and benefits, general and administrative expenses, and sales and marketing costs, which includes advertising, sales and promotion expenses, and prospectus and fulfillment expenses. Segment profit (loss) is considered by the CODM in evaluating resource allocation decisions together with the Company's overall capital needs and strategic objectives. Resource all …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries: USBERM, 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 Companys 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 lacks 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 on the basis of having a controlling financial interest. The Company holds variable interests in certain funds it advises, specifically, certain funds in USGIF and certain U.S. Global ETF clients. However, it is not deemed to be the primary beneficiary of these funds. The Companys interests in these VIEs consist of the Companys direct ownership therein and any fees earned but uncollected. In the ordinary course of business, the Company m …

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NOTE 14. CONTINGENCIES AND COMMITMENTS The Company continuously reviews investor, employee and vendor complaints, and pending or threatened litigation. The likelihood that a loss contingency exists is evaluated through consultation with legal counsel, and a loss contingency is recorded if probable and reasonably estimable. During the normal course of business, the Company may be subject to various claims, legal proceedings, and other contingencies. These matters are subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably. The Company establishes accruals for matters for which the outcome is probable and can be reasonably estimated. Management believes that any liability in excess of these accruals upon the ultimate resolution of these matters will not have a material adverse effect on the Consolidated Financial Statements of the Company. Excluding reserves for uncertain tax positions, the Company recorded no accruals for contingencies as of March 31, 2026 , or June 30, 2025 . The Board has authorized a monthly dividend of $0.0075 per share through June 2026 , at which time it will be considered for continuation by the Board. Payment of cash dividends is within the discretion of the Companys Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company, and general business conditions. The total amount of cash dividends expected to be paid to class A and class C …

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NOTE 8. DEBT The Company has access to a $1.0 million credit facility for working capital purposes. The credit agreement requires the Company to maintain certain covenants; the Company has been in compliance with these covenants during the current fiscal year. The credit agreement expires on May 31, 2026 , and the Company intends to renew it biennially. The credit facility is collateralized by approximately $1.0 million at March 31, 2026 , included in restricted cash on the Consolidated Balance Sheets, held in deposit in a money market account at the financial institution that provided the credit facility. As of March 31, 2026 , the credit facility remains unutilized by the Company. During fiscal 2025, the Company received loan proceeds of $75,000 from an entity in which it holds an equity investment. The loan is non-interest bearing, non-recourse, and will be repaid through an offset against amounts due upon the entity's final liquidation. Because the timing of liquidation is uncertain, the loan is classified as non-current within notes payable on the Consolidated Balance Sheets.

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Nine Months Ended Three Months Ended March 31, March 31, (dollars in thousands) 2026 2025 2026 2025 ETF advisory fees $ 4,584 $ 5,251 $ 1,546 $ 1,657 USGIF advisory fees 2,780 1,378 1,151 484 USGIF performance fees received (paid) - (229 ) - (69 ) Total Advisory Fees 7,364 6,400 2,697 2,072 USGIF administrative services fees 160 92 65 31 Total Operating Revenue $ 7,524 $ 6,492 $ 2,762 $ 2,103

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"NOTE 11. INCOME TAXES The Company and its non-Canadian subsidiaries file a consolidated U.S. federal income tax return. USCAN files a separate tax return in Canada. Provisions for income taxes include deferred taxes for temporary differences between the financial reporting and tax basis of assets and liabilities, resulting from the use of the liability method of accounting for income taxes. Income tax expense for the quarter is based upon the estimated annual ordinary income in each jurisdiction in which the Company operates. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Due to various factors, such as the items significance in relation to total ordinary income and the rate of tax, discrete items in any quarter can materially impact the reported effective tax rate (""ETR""). A valuation allowance is provided when it is more likely than not that some portion of the deferred tax amount will not be realized. There was no valuation allowance recorded at June 30, 2025 . As of March 31, 2026 , the Company recorded a valuation allowance of $26,000 against deferred tax assets, primarily capital loss carryforwards. The realization of capital loss carryforwards is dependent upon future capital gains. The Company concluded that it was more-likely-than- not that a portion of these deferred tax assets would not be realized. In addition, income tax expense for the three months ending March 31, 2026, was reduced …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In June 2022, the FASB issued ASU 2022 - 03, Fair Value Measurement (Topic 820 ): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (ASU 2022 - 03 ) to clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, and to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value. The standard became effective for the Company on July 1, 2024. The adoption of the standard did not have a material impact on the Company's Consolidated Financial Statements. In November 2023, the FASB issued Accounting Standards Update No. 2023 - 07, Segment Reporting (Topic 280 ): Improvements to Reportable Segment Disclosures (ASU 2023 - 07 ), which enhances annual and interim disclosure requirements for reportable segments. The amendments require additional, more detailed disclosures about significant segment expenses and other segment items. The Company adopted ASU 2023 - 07 retrospectively for its fiscal year 2025 annual Consolidated Financial Statements. While the adoption of ASU 2023 - 07 did not have a material impact on the Companys Consolidated Financial Statements, it resulted in enhanced segment disclosures. In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic 740 ): Improvements to Income Tax Disclosure …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"NOTE 13. FINANCIAL INFORMATION BY BUSINESS SEGMENT The Company manages the following business segments : 1. Investment management services, by which the Company offers, to USGIF and ETF clients, a range of investment management products and services to meet the needs of individual and institutional investors; and 2. Corporate investments, through which the Company invests for its own account in an effort to add growth and value to its cash position. These segments are managed separately. The Companys segment information is prepared on the same basis that management uses to review the financial information for operational and investment decision-making purposes. All segment accounting policies are the same as those described in the summary of significant accounting policies. The Company's Chief Executive Officer, serving as the Chief Operating Decision Maker (""CODM""), evaluates the performance of the Companys Corporate Investments segment separately from the Investment Management Services segment based on net investment income (loss), and the Corporate Investments segment does not include any allocated company expenses. All significant expenses are disclosed on the Consolidated Statements of Operations. The CODM evaluates the performance of the Companys Investment Management Services segment based on operating income (loss) before depreciation, interest, and income taxes. The following schedule details total revenues, income, and gross identifiable assets by business segmen …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 15. Subsequent EventS The Company evaluated subsequent events through the filing date of this Quarterly Report on Form 10 -Q and determined that there were no subsequent events requiring recognition or disclosure in the accompanying Consolidated Financial Statements.

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