U.S. GLOBAL INVESTORS, INC.
|
(Exact name of registrant as specified in its charter)
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Texas
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74-1598370
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(State or other jurisdiction of
incorporation or organization)
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(IRS Employer Identification No.)
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7900 Callaghan Road
San Antonio, Texas
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78229-1234
(Zip Code)
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(Address of principal executive offices)
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller Reporting Company
x
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(Do not check if a smaller reporting company)
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PART I. FINANCIAL INFORMATION
|
1
|
1
|
|
1
|
|
2
|
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3
|
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4
|
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5
|
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19
|
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24
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24
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PART II. OTHER INFORMATION
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25
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25
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|
25
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25
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26
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27
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December 31, 2015
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June 30, 2015
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|||||||
(UNAUDITED)
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||||||||
Assets
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||||||||
(dollars in thousands)
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||||||||
Current Assets
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||||||||
Cash and cash equivalents
|
$
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3,563
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$
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3,507
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||||
Investment securities - trading, at fair value
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13,571
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15,640
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||||||
Investment securities - held-to-maturity
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750
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-
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||||||
Receivables
|
529
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1,653
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||||||
Prepaid expenses
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399
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410
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||||||
Total assets held related to discontinued operations
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72
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184
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||||||
Total Current Assets
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18,884
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21,394
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||||||
Net Property and Equipment
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2,601
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2,736
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||||||
Other Assets
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||||||||
Investment securities - available-for-sale, at fair value
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3,648
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4,263
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||||||
Other investments
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2,045
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2,303
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||||||
Intangible assets, net
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19
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41
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||||||
Other assets, long term
|
37
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33
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||||||
Total Other Assets
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5,749
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6,640
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||||||
Total Assets
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$
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27,234
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$
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30,770
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||||
Liabilities and Shareholders' Equity
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||||||||
Current Liabilities
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||||||||
Accounts payable
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$
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120
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$
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114
|
||||
Accrued compensation and related costs
|
797
|
456
|
||||||
Dividends payable
|
115
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231
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||||||
Other accrued expenses
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595
|
692
|
||||||
Total liabilities held related to discontinued operations
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39
|
134
|
||||||
Total Current Liabilities
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1,666
|
1,627
|
||||||
Commitments and Contingencies (Note 11)
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||||||||
Shareholders' Equity
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||||||||
Common stock (class A) - $0.025 par value; nonvoting; authorized, 28,000,000 shares; issued, 13,866,421 at December 31, 2015, and June 30, 2015
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347
|
347
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||||||
Common stock (class B) - $0.025 par value; nonvoting; authorized, 4,500,000 shares; no shares issued
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-
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-
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||||||
Convertible common stock (class C) - $0.025 par value; voting; authorized, 3,500,000 shares; issued, 2,069,127 shares at December 31, 2015, and June 30, 2015
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52
|
52
|
||||||
Additional paid-in-capital
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15,655
|
15,694
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||||||
Treasury stock, class A shares at cost; 648,286 and 555,786 shares at December 31, 2015, and June 30, 2015, respectively
|
(1,603
|
)
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(1,464
|
)
|
||||
Accumulated other comprehensive loss, net of tax
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(511
|
)
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(483
|
)
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||||
Retained earnings
|
11,113
|
14,423
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||||||
Total U.S. Global Investors Inc. Shareholders' Equity
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25,053
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28,569
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||||||
Non-Controlling Interest in Subsidiary
|
515
|
574
|
||||||
Total Shareholders' Equity
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25,568
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29,143
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||||||
Total Liabilities and Shareholders' Equity
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$
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27,234
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$
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30,770
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Six Months Ended December 31,
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Three Months Ended December 31,
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|||||||||||||||
(dollars in thousands, except per share data)
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2015
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2014
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2015
|
2014
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||||||||||||
Operating Revenues
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||||||||||||||||
Advisory fees
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$
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2,336
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$
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4,110
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$
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1,197
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$
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1,691
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||||||||
Administrative services fees
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203
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375
|
92
|
167
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||||||||||||
2,539
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4,485
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1,289
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1,858
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|||||||||||||
Operating Expenses
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||||||||||||||||
Employee compensation and benefits
|
3,067
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2,832
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1,691
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1,395
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||||||||||||
General and administrative
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2,198
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2,112
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1,267
|
975
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||||||||||||
Platform fees
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276
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505
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129
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222
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||||||||||||
Advertising
|
149
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38
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38
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22
|
||||||||||||
Depreciation and amortization
|
160
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164
|
80
|
81
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||||||||||||
5,850
|
5,651
|
3,205
|
2,695
|
|||||||||||||
Operating Loss
|
(3,311
|
)
|
(1,166
|
)
|
(1,916
|
)
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(837
|
)
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||||||||
Other Income
|
||||||||||||||||
Investment income (loss)
|
263
|
273
|
(271
|
)
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53
|
|||||||||||
Total Other Income
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263
|
273
|
(271
|
)
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53
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|||||||||||
Loss Before Income Taxes
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(3,048
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)
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(893
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)
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(2,187
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)
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(784
|
)
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||||||||
Provision for Federal Income Taxes
|
||||||||||||||||
Tax expense (benefit)
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11
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(4
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)
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-
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3
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|||||||||||
Loss from Continuing Operations
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(3,059
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)
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(889
|
)
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(2,187
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)
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(787
|
)
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||||||||
Discontinued Operations
|
||||||||||||||||
Loss from discontinued operations of distributor
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(18
|
)
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(42
|
)
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(25
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)
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(54
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)
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||||||||
Tax benefit
|
-
|
-
|
-
|
-
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||||||||||||
Loss from Discontinued Operations
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(18
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)
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(42
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)
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(25
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)
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(54
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)
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||||||||
Net Loss
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(3,077
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)
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(931
|
)
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(2,212
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)
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(841
|
)
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||||||||
Less: Net Income Attributable to Non-Controlling Interest
|
3
|
39
|
-
|
1
|
||||||||||||
Net Loss Attributable to U.S. Global Investors, Inc.
|
$
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(3,080
|
)
|
$
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(970
|
)
|
$
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(2,212
|
)
|
$
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(842
|
)
|
||||
Basic Net Loss per Share:
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||||||||||||||||
Loss from continuing operations
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$
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(0.20
|
)
|
$
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(0.06
|
)
|
$
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(0.14
|
)
|
$
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(0.05
|
)
|
||||
Loss from discontinued operations
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-
|
-
|
-
|
-
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||||||||||||
Basic Net Loss per Share
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$
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(0.20
|
)
|
$
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(0.06
|
)
|
$
|
(0.14
|
)
|
$
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(0.05
|
)
|
||||
Diluted Net Loss per Share:
|
||||||||||||||||
Loss from continuing operations
|
$
|
(0.20
|
)
|
$
|
(0.06
|
)
|
$
|
(0.14
|
)
|
$
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(0.05
|
)
|
||||
Loss from discontinued operations
|
-
|
-
|
-
|
-
|
||||||||||||
Diluted Net Loss per Share
|
$
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(0.20
|
)
|
$
|
(0.06
|
)
|
$
|
(0.14
|
)
|
$
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(0.05
|
)
|
||||
Basic weighted average number of common shares outstanding
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15,321,304
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15,419,309
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15,300,421
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15,409,292
|
||||||||||||
Diluted weighted average number of common shares outstanding
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15,321,304
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15,419,309
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15,300,421
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15,409,292
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Six Months Ended
December 31,
|
Three Months Ended
December 31,
|
|||||||||||||||
(dollars in thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Net Loss Attributable to U.S. Global Investors, Inc.
|
$
|
(3,080
|
)
|
$
|
(970
|
)
|
$
|
(2,212
|
)
|
$
|
(842
|
)
|
||||
Other Comprehensive Income (Loss), Net of Tax:
|
||||||||||||||||
Unrealized gains (losses) on available-for-sale securities arising during period
|
357
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(849
|
)
|
470
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(618
|
)
|
||||||||||
Less: reclassification adjustment for gains/losses included in net income
|
(272
|
)
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(252
|
)
|
199
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(57
|
)
|
|||||||||
Net change from available-for-sale investments, net of tax
|
85
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(1,101
|
)
|
669
|
(675
|
)
|
||||||||||
Foreign currency translation adjustment
|
(174
|
)
|
(149
|
)
|
(49
|
)
|
(70
|
)
|
||||||||
Other Comprehensive Income (Loss)
|
(89
|
)
|
(1,250
|
)
|
620
|
(745
|
)
|
|||||||||
Comprehensive Loss
|
(3,169
|
)
|
(2,220
|
)
|
(1,592
|
)
|
(1,587
|
)
|
||||||||
Less: Comprehensive Income Attributable to Non-Controlling Interest
|
(61
|
)
|
(52
|
)
|
(17
|
)
|
(25
|
)
|
||||||||
Comprehensive Loss Attributable to U.S. Global Investors, Inc.
|
$
|
(3,108
|
)
|
$
|
(2,168
|
)
|
$
|
(1,575
|
)
|
$
|
(1,562
|
)
|
Six Months Ended December 31,
|
||||||||
(dollars in thousands)
|
2015
|
2014
|
||||||
Cash Flows from Operating Activities:
|
||||||||
Net loss
|
$
|
(3,077
|
)
|
$
|
(931
|
)
|
||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
160
|
164
|
||||||
Net recognized loss on disposal of fixed assets
|
-
|
26
|
||||||
Net recognized (gain) loss on securities
|
19
|
(376
|
)
|
|||||
Provision for deferred taxes
|
-
|
2
|
||||||
Stock bonuses
|
9
|
6
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
1,220
|
566
|
||||||
Prepaid and other assets
|
2
|
34
|
||||||
Trading securities
|
2,033
|
797
|
||||||
Accounts payable and accrued expenses
|
173
|
(500
|
)
|
|||||
Total adjustments
|
3,616
|
719
|
||||||
Net cash provided by (used in) operating activities
|
539
|
(212
|
)
|
|||||
Cash Flows from Investing Activities:
|
||||||||
Purchase of property and equipment
|
(13
|
)
|
(40
|
)
|
||||
Purchase of available-for-sale securities
|
-
|
(165
|
)
|
|||||
Purchase of other investments
|
(750
|
)
|
(1,000
|
)
|
||||
Proceeds on sale of available-for-sale securities
|
962
|
515
|
||||||
Return of capital on investment
|
13
|
12
|
||||||
Net cash provided by (used in) investing activities
|
212
|
(678
|
)
|
|||||
Cash Flows from Financing Activities:
|
||||||||
Issuance of common stock
|
56
|
61
|
||||||
Repurchases of common stock
|
(243
|
)
|
(206
|
)
|
||||
Distributions to non-controlling interests in subsidiary
|
-
|
(27
|
)
|
|||||
Dividends paid
|
(345
|
)
|
(462
|
)
|
||||
Net cash used in financing activities
|
(532
|
)
|
(634
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(163
|
)
|
(134
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
56
|
(1,658
|
)
|
|||||
Beginning cash and cash equivalents
|
3,507
|
5,910
|
||||||
Ending cash and cash equivalents
|
$
|
3,563
|
$
|
4,252
|
||||
Supplemental Disclosures of Cash Flow Information
|
||||||||
Cash paid for income taxes
|
$
|
-
|
$
|
-
|
December 31, 2015
|
||||||||||||||||
(dollars in thousands)
|
Cost
|
Gains
|
(Losses)
|
Fair Value
|
||||||||||||
Trading securities
1
|
||||||||||||||||
Offshore fund
|
$ | 1,184 | $ | - | $ | (836 | ) | $ | 348 | |||||||
Mutual funds - Fixed income
|
12,790 | 79 | (1 | ) | 12,868 | |||||||||||
Mutual funds - Domestic equity
|
535 | - | (180 | ) | 355 | |||||||||||
Other
|
46 | - | (46 | ) | - | |||||||||||
Total trading securities
|
$ | 14,555 | $ | 79 | $ | (1,063 | ) | $ | 13,571 | |||||||
Available-for-sale securities
2
|
||||||||||||||||
Common Stock - Domestic
|
$ | 109 | $ | - | $ | (5 | ) | $ | 104 | |||||||
Common Stock - International
|
615 | 70 | (39 | ) | 646 | |||||||||||
Corporate debt
|
1,393 | - | (250 | ) | 1,143 | |||||||||||
Mutual funds - Fixed income
|
1,229 | 14 | (37 | ) | 1,206 | |||||||||||
Mutual funds - Domestic equity
|
394 | - | - | 394 | ||||||||||||
Other
|
162 | - | (7 | ) | 155 | |||||||||||
Total available-for-sale securities
3
|
$ | 3,902 | $ | 84 | $ | (338 | ) | $ | 3,648 | |||||||
Held-to-maturity securities
|
||||||||||||||||
Corporate debt
|
$ | 750 | $ | - | $ | - | $ | 750 | ||||||||
Total held-to-maturity securities
|
$ | 750 | $ | - | $ | - | $ | 750 |
June 30, 2015
|
||||||||||||||||
(dollars in thousands)
|
Cost
|
Gains
|
(Losses)
|
Fair Value
|
||||||||||||
Trading securities
1
|
||||||||||||||||
Offshore fund
|
$ | 1,184 | $ | - | $ | (703 | ) | $ | 481 | |||||||
Mutual funds - Fixed income
|
14,691 | 68 | (5 | ) | 14,754 | |||||||||||
Mutual funds - Domestic equity
|
535 | - | (130 | ) | 405 | |||||||||||
Other
|
81 | - | (81 | ) | - | |||||||||||
Total trading securities
|
$ | 16,491 | $ | 68 | $ | (919 | ) | $ | 15,640 | |||||||
Available-for-sale securities
2
|
||||||||||||||||
Common Stock - Domestic
|
$ | 535 | $ | 316 | $ | (9 | ) | $ | 842 | |||||||
Common Stock - International
|
695 | 309 | (39 | ) | 965 | |||||||||||
Corporate debt
|
1,433 | - | (817 | ) | 616 | |||||||||||
Mutual funds - Fixed income
|
1,227 | 9 | (22 | ) | 1,214 | |||||||||||
Mutual funds - Domestic equity
|
543 | - | (80 | ) | 463 | |||||||||||
Other
|
169 | 1 | (7 | ) | 163 | |||||||||||
Total available-for-sale securities
3
|
$ | 4,602 | $ | 635 | $ | (974 | ) | $ | 4,263 |
1
|
Unrealized and realized gains and losses on trading securities are included in earnings in the statement of operations.
|
2
|
Unrealized gains and losses on available-for-sale securities are excluded from earnings and recorded in other comprehensive income as a separate component of shareholders’ equity until realized.
|
3
|
Net unrealized gains (losses) on available-for-sale securities gross and net of tax as of December 31, 2015, are $(254)
and $(254), respectively, and as of June 30, 2015, are $(339) and $(339), respectively.
|
December 31, 2015
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Greater
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(dollars in thousands)
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
||||||||||||||||||
Available-for-sale securities
|
||||||||||||||||||||||||
Common stock - Domestic
|
$ | 104 | $ | (5 | ) | $ | - | $ | - | $ | 104 | $ | (5 | ) | ||||||||||
Common stock - International
|
157 | (21 | ) | 28 | (18 | ) | 185 | (39 | ) | |||||||||||||||
Corporate debt
|
- | - | 931 | (250 | ) | 931 | (250 | ) | ||||||||||||||||
Mutual funds - Fixed income
|
2 | - | 190 | (37 | ) | 192 | (37 | ) | ||||||||||||||||
Mutual funds - Domestic equity
|
- | - | - | - | - | - | ||||||||||||||||||
Other
|
102 | (7 | ) | - | - | 102 | (7 | ) | ||||||||||||||||
Total available-for-sale securities
|
$ | 365 | $ | (33 | ) | $ | 1,149 | $ | (305 | ) | $ | 1,514 | $ | (338 | ) |
June 30, 2015
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Greater
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
(dollars in thousands)
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
||||||||||||||||||
Available-for-sale securities
|
||||||||||||||||||||||||
Common stock - Domestic
|
$ | 77 | $ | (7 | ) | $ | 107 | $ | (2 | ) | $ | 184 | $ | (9 | ) | |||||||||
Common stock - International
|
114 | (23 | ) | 39 | (16 | ) | 153 | (39 | ) | |||||||||||||||
Corporate debt
|
386 | (817 | ) | - | - | 386 | (817 | ) | ||||||||||||||||
Mutual funds - Fixed income
|
67 | (7 | ) | 139 | (15 | ) | 206 | (22 | ) | |||||||||||||||
Mutual funds - Domestic equity
|
463 | (80 | ) | - | - | 463 | (80 | ) | ||||||||||||||||
Other
|
112 | (7 | ) | - | - | 112 | (7 | ) | ||||||||||||||||
Total available-for-sale securities
|
$ | 1,219 | $ | (941 | ) | $ | 285 | $ | (33 | ) | $ | 1,504 | $ | (974 | ) |
•
|
realized gains and losses on sales of securities;
|
•
|
unrealized gains and losses on trading securities;
|
•
|
realized foreign currency gains and losses;
|
•
|
other-than-temporary impairments on available-for-sale securities;
|
•
|
other-than-temporary impairments on held-at-cost securities; and
|
•
|
dividend and interest income.
|
|
Six Months Ended December 31,
|
Three Months Ended December 31,
|
||||||||||||||
(dollars in thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Investment Income | ||||||||||||||||
Realized gains on sales of available-for-sale securities
|
$ | 531 | $ | 382 | $ | - | $ | 86 | ||||||||
Realized losses on sales of trading securities
|
(35 | ) | (6 | ) | - | (6 | ) | |||||||||
Unrealized losses on trading securities
|
(133 | ) | (526 | ) | (69 | ) | (295 | ) | ||||||||
Realized foreign currency gains
|
52 | 23 | 17 | 4 | ||||||||||||
Other-than-temporary declines in available-for-sale securities
|
(259 | ) | - | (199 | ) | - | ||||||||||
Other-than-temporary declines in securities held at cost
|
(258 | ) | - | (258 | ) | - | ||||||||||
Dividend and interest income
|
365 | 400 | 238 | 264 | ||||||||||||
Total Investment Income (Loss)
|
$ | 263 | $ | 273 | $ | (271 | ) | $ | 53 |
December 31, 2015
|
||||||||||||||||
Significant |
Significant
|
|||||||||||||||
Quoted Prices | Other Inputs | Unobservable Inputs | Total | |||||||||||||
(dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
||||||||||||
Trading securities
|
||||||||||||||||
Offshore fund
|
$ | - | $ | 348 | $ | - | $ | 348 | ||||||||
Mutual funds - Fixed income
|
12,868 | - | - | 12,868 | ||||||||||||
Mutual funds - Domestic equity
|
355 | - | - | 355 | ||||||||||||
Other
|
- | - | - | - | ||||||||||||
Total trading securities
|
13,223 | 348 | - | 13,571 | ||||||||||||
Available-for-sale securities
|
||||||||||||||||
Common stock - Domestic
|
$ | 104 | $ | - | $ | - | $ | 104 | ||||||||
Common stock - International
|
646 | - | - | 646 | ||||||||||||
Corporate debt
|
- | 231 | 912 | 1,143 | ||||||||||||
Mutual funds - Fixed income
|
1,206 | - | - | 1,206 | ||||||||||||
Mutual funds - Domestic equity
|
394 | - | - | 394 | ||||||||||||
Other
|
155 | - | - | 155 | ||||||||||||
Total available-for-sale securities
|
2,505 | 231 | 912 | 3,648 | ||||||||||||
Total
|
$ | 15,728 | $ | 579 | $ | 912 | $ | 17,219 |
June 30, 2015
|
||||||||||||||||
Significant |
Significant
|
|||||||||||||||
Quoted Prices | Other Inputs | Unobservable Inputs | Total | |||||||||||||
(dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
||||||||||||
Trading securities
|
||||||||||||||||
Offshore Fund
|
$ | - | $ | 481 | $ | - | $ | 481 | ||||||||
Mutual funds - Fixed income
|
14,754 | - | - | 14,754 | ||||||||||||
Mutual funds - Domestic equity
|
405 | - | - | 405 | ||||||||||||
Other
|
- | - | - | - | ||||||||||||
Total trading securities
|
15,159 | 481 | - | $ | 15,640 | |||||||||||
Available-for-sale securities
|
||||||||||||||||
Common stock - Domestic
|
$ | 842 | $ | - | $ | - | $ | 842 | ||||||||
Common stock - International
|
965 | - | - | 965 | ||||||||||||
Corporate debt
|
- | 77 | 539 | 616 | ||||||||||||
Mutual funds - Fixed income
|
1,214 | - | - | 1,214 | ||||||||||||
Mutual funds - Domestic equity
|
463 | - | - | 463 | ||||||||||||
Other
|
163 | - | - | 163 | ||||||||||||
Total available-for-sale securities
|
3,647 | 77 | 539 | 4,263 | ||||||||||||
Total
|
$ | 18,806 | $ | 558 | $ | 539 | $ | 19,903 |
Six Months Ended December 31,
|
Three Months Ended December 31,
|
|||||||||||||||
(dollars in thousands, except per share data)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Net Loss
|
||||||||||||||||
Loss from continuing operations
|
$
|
(3,059
|
)
|
$
|
(889
|
)
|
$
|
(2,187
|
)
|
$
|
(787
|
)
|
||||
Less: Income attributable to non-controlling interest in subsidiary
|
3
|
39
|
-
|
1
|
||||||||||||
Loss from continuing operations attributable to U.S. Global Investors, Inc.
|
(3,062
|
)
|
(928
|
)
|
(2,187
|
)
|
(788
|
)
|
||||||||
Loss from discontinued operations attributable to U.S. Global Investors, Inc.
|
(18
|
)
|
(42
|
)
|
(25
|
)
|
(54
|
)
|
||||||||
Net loss attributable to U.S. Global Investors, Inc.
|
$
|
(3,080
|
)
|
$
|
(970
|
)
|
$
|
(2,212
|
)
|
$
|
(842
|
)
|
||||
Weighted average number of outstanding shares
|
||||||||||||||||
Basic
|
15,321,304
|
15,419,309
|
15,300,421
|
15,409,292
|
||||||||||||
Effect of dilutive securities
|
||||||||||||||||
Employee stock options
|
-
|
-
|
-
|
-
|
||||||||||||
Diluted
|
15,321,304
|
15,419,309
|
15,300,421
|
15,409,292
|
||||||||||||
Net loss per share attributable to U.S. Global Investors, Inc.
|
||||||||||||||||
Basic
|
||||||||||||||||
Loss from continuing operations
|
$
|
(0.20
|
)
|
$
|
(0.06
|
)
|
$
|
(0.14
|
)
|
$
|
(0.05
|
)
|
||||
Loss from discontinued operations
|
-
|
-
|
-
|
-
|
||||||||||||
Net loss attributable to U.S. Global Investors, Inc.
|
$
|
(0.20
|
)
|
$
|
(0.06
|
)
|
$
|
(0.14
|
)
|
$
|
(0.05
|
)
|
||||
Diluted
|
||||||||||||||||
Loss from continuing operations
|
$
|
(0.20
|
)
|
$
|
(0.06
|
)
|
$
|
(0.14
|
)
|
$
|
(0.05
|
)
|
||||
Loss from discontinued operations
|
-
|
-
|
-
|
-
|
||||||||||||
Net loss attributable to U.S. Global Investors, Inc.
|
$
|
(0.20
|
)
|
$
|
(0.06
|
)
|
$
|
(0.14
|
)
|
$
|
(0.05
|
)
|
(dollars in thousands)
|
Unrealized gains (losses) on available-for-sale investments
1
|
Foreign currency
adjustment
|
Total
|
|||||||||
Six Months Ended December 31, 2015
|
||||||||||||
Balance at June 30, 2015
|
$ | (339 | ) | $ | (144 | ) | $ | (483 | ) | |||
Other comprehensive loss before reclassifications
|
357 | (113 | ) | 244 | ||||||||
Tax effect
|
- | - | - | |||||||||
Amount reclassified from AOCI
|
(272 | ) | - | (272 | ) | |||||||
Tax effect
|
- | - | - | |||||||||
Net other comprehensive loss for the six months ended December 31, 2015
|
85 | (113 | ) | (28 | ) | |||||||
Balance at December 31, 2015
|
$ | (254 | ) | $ | (257 | ) | $ | (511 | ) | |||
Three Months Ended December 31, 2015
|
||||||||||||
Balance at September 30, 2015
|
$ | (923 | ) | $ | (225 | ) | $ | (1,148 | ) | |||
Other comprehensive loss before reclassifications
|
470 | (32 | ) | 438 | ||||||||
Tax effect
|
- | - | - | |||||||||
Amount reclassified from AOCI
|
199 | - | 199 | |||||||||
Tax effect
|
- | - | - | |||||||||
Net other comprehensive loss for quarter
|
669 | (32 | ) | 637 | ||||||||
Balance at December 31, 2015
|
$ | (254 | ) | $ | (257 | ) | $ | (511 | ) |
(dollars in thousands)
|
Unrealized gains (losses) on available-for-sale investments
1
|
Foreign currency
adjustment
|
Total
|
|||||||||
Six Months Ended December 31, 2014
|
||||||||||||
Balance at June 30, 2014
|
$ | 888 | $ | 18 | $ | 906 | ||||||
Other comprehensive loss before reclassifications
|
(1,287 | ) | (96 | ) | (1,383 | ) | ||||||
Tax effect
|
438 | - | 438 | |||||||||
Amount reclassified from AOCI
|
(382 | ) | - | (382 | ) | |||||||
Tax effect
|
130 | - | 130 | |||||||||
Net other comprehensive loss for the six months ended December 31, 2014
|
(1,101 | ) | (96 | ) | (1,197 | ) | ||||||
Balance at December 31, 2014
|
$ | (213 | ) | $ | (78 | ) | $ | (291 | ) | |||
Three Months Ended December 31, 2014
|
||||||||||||
Balance at September 30, 2014
|
$ | 462 | $ | (32 | ) | $ | 430 | |||||
Other comprehensive loss before reclassifications
|
(937 | ) | (46 | ) | (983 | ) | ||||||
Tax effect
|
319 | - | 319 | |||||||||
Amount reclassified from AOCI
|
(86 | ) | - | (86 | ) | |||||||
Tax effect
|
29 | - | 29 | |||||||||
Net other comprehensive loss for quarter
|
(675 | ) | (46 | ) | (721 | ) | ||||||
Balance at December 31, 2014
|
$ | (213 | ) | $ | (78 | ) | $ | (291 | ) |
1
|
Amounts reclassified from unrealized gains (losses) on available-for-sale investments, net of tax, were recorded in investment income (loss) on the Consolidated Statements of Operations.
|
(dollars in thousands)
|
Investment
Management Services
|
Investment Management
Services - Canada
|
Corporate Investments
|
Consolidated
|
||||||||||||||
Six months ended December 31, 2015 | ||||||||||||||||||
Net operating revenues
|
$ | 1,916 | 1 | $ | 623 | 2 | $ | - | $ | 2,539 | ||||||||
Net other income
|
$ | - | $ | - | $ | 263 | $ | 263 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (3,216 | ) | $ | (89 | ) | $ | 257 | $ | (3,048 | ) | |||||||
Loss from discontinued operations
|
$ | (18 | ) | $ | - | $ | - | $ | (18 | ) | ||||||||
Depreciation and amortization
|
$ | 128 | $ | 32 | $ | - | $ | 160 | ||||||||||
Capital expenditures
|
$ | 13 | $ | - | $ | - | $ | 13 | ||||||||||
Gross identifiable assets at December 31, 2015
|
$ | 5,224 | $ | 1,607 | $ | 20,403 | $ | 27,234 | ||||||||||
Deferred tax asset
|
$ | - | ||||||||||||||||
Consolidated total assets at December 31, 2015
|
$ | 27,234 | ||||||||||||||||
Six months ended December 31, 2014
|
||||||||||||||||||
Net operating revenues
|
$ | 3,304 | 1 | $ | 1,181 | 2 | $ | - | $ | 4,485 | ||||||||
Net other income
|
$ | - | $ | - | $ | 273 | $ | 273 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (1,206 | ) | $ | 43 | $ | 270 | $ | (893 | ) | ||||||||
Loss from discontinued operations
|
$ | (42 | ) | $ | - | $ | - | $ | (42 | ) | ||||||||
Depreciation
|
$ | 126 | $ | 38 | $ | - | $ | 164 | ||||||||||
Capital expenditures
|
$ | 40 | $ | - | $ | - | $ | 40 | ||||||||||
Three months ended December 31, 2015
|
||||||||||||||||||
Net operating revenues
|
$ | 996 | 3 | $ | 293 | 4 | $ | - | $ | 1,289 | ||||||||
Net other loss
|
$ | - | $ | - | $ | (271 | ) | $ | (271 | ) | ||||||||
Income (loss) from continuing operations before income taxes
|
$ | (1,873 | ) | $ | (44 | ) | $ | (270 | ) | $ | (2,187 | ) | ||||||
Loss from discontinued operations
|
$ | (25 | ) | $ | - | $ | - | $ | (25 | ) | ||||||||
Depreciation and amortization
|
$ | 64 | $ | 16 | $ | - | $ | 80 | ||||||||||
Capital expenditures
|
$ | 8 | $ | - | $ | - | $ | 8 | ||||||||||
Three months ended December 31, 2014
|
||||||||||||||||||
Net operating revenues
|
$ | 1,339 | 3 | $ | 519 | 4 | $ | - | $ | 1,858 | ||||||||
Net other income
|
$ | - | $ | - | $ | 53 | $ | 53 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (810 | ) | $ | (25 | ) | $ | 51 | $ | (784 | ) | |||||||
Loss from discontinued operations
|
$ | (54 | ) | $ | - | $ | - | $ | (54 | ) | ||||||||
Depreciation
|
$ | 63 | $ | 18 | $ | - | $ | 81 | ||||||||||
Capital expenditures
|
$ | 5 | $ | - | $ | - | $ | 5 |
1
|
Includes operating revenues from USGIF of $1,730 and $3,226 for the six months ended December 31, 2015, and December 31, 2014, respectively.
|
2
|
Includes operating revenues from Galileo mutual funds of $496 and $975 for the six months ended December 31, 2015, and December 31, 2014, respectively.
|
3
|
Includes operating revenues from USGIF of $902 and $1,308 for the three months ended December 31, 2015, and December 31, 2014, respectively.
|
4
|
Includes operating revenues from Galileo mutual funds of $229 and $430 for the three months ended December 31, 2015, and December 31, 2014, respectively.
|
(dollars in thousands)
|
December 31, 2015
|
June 30, 2015
|
||||||
Assets
|
||||||||
Receivables
|
$ | 72 | $ | 184 | ||||
Total assets held related to discontinued operations
|
$ | 72 | $ | 184 | ||||
Liabilities
|
||||||||
Accounts payable
|
$ | - | $ | 5 | ||||
Other accrued expenses
|
39 | 129 | ||||||
Total liabilities held related to discontinued operations
|
$ | 39 | $ | 134 |
Six Months Ended December 31,
|
Three Months Ended December 31,
|
|||||||||||||||
(dollars in thousands)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Revenues
|
||||||||||||||||
Distribution fees
|
$ | 425 | $ | 819 | $ | 181 | $ | 355 | ||||||||
Shareholder services fees
|
183 | 364 | 80 | 158 | ||||||||||||
608 | 1,183 | 261 | 513 | |||||||||||||
Expenses
|
||||||||||||||||
Employee compensation and benefits
|
188 | 291 | 99 | 150 | ||||||||||||
General and administrative
|
77 | 88 | 28 | 46 | ||||||||||||
Platform fees
|
347 | 694 | 152 | 297 | ||||||||||||
Advertising
|
14 | 152 | 7 | 74 | ||||||||||||
626 | 1,225 | 286 | 567 | |||||||||||||
Loss from Discontinued Operations Before Income Taxes
|
(18 | ) | (42 | ) | (25 | ) | (54 | ) | ||||||||
Tax expense (benefit)
|
- | - | - | - | ||||||||||||
Loss from Discontinued Operations
|
$ | (18 | ) | $ | (42 | ) | $ | (25 | ) | $ | (54 | ) |
Changes in Assets Under Management
|
||||||||||||||||||||||||
Six Months Ended December 31,
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
(dollars in thousands)
|
Equity
|
Fixed Income
|
Total
|
Equity
|
Fixed Income
|
Total
|
||||||||||||||||||
Beginning Balance
|
$ | 442,243 | $ | 148,583 | $ | 590,826 | $ | 815,368 | $ | 130,560 | $ | 945,928 | ||||||||||||
Market appreciation/(depreciation)
|
(47,599 | ) | 1,153 | (46,446 | ) | (226,037 | ) | 492 | (225,545 | ) | ||||||||||||||
Dividends and distributions
|
(14,067 | ) | (734 | ) | (14,801 | ) | (10,590 | ) | (833 | ) | (11,423 | ) | ||||||||||||
Net shareholder purchases/(redemptions)
|
(22,944 | ) | 20,329 | (2,615 | ) | (72,733 | ) | 23,432 | (49,301 | ) | ||||||||||||||
Ending Balance
|
$ | 357,633 | $ | 169,331 | $ | 526,964 | $ | 506,008 | $ | 153,651 | $ | 659,659 | ||||||||||||
Average investment management fee
|
0.91 | % | 0.00 | % | 0.65 | % | 0.97 | % | 0.00 | % | 0.80 | % | ||||||||||||
Average net assets
|
$ | 383,227 | $ | 153,804 | $ | 537,031 | $ | 673,792 | $ | 138,245 | $ | 812,037 |
Changes in Assets Under Management
|
||||||||||||||||||||||||
Three Months Ended December 31,
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
(dollars in thousands)
|
Equity
|
Fixed Income
|
Total
|
Equity
|
Fixed Income
|
Total
|
||||||||||||||||||
Beginning Balance
|
$ | 364,972 | $ | 147,647 | $ | 512,619 | $ | 670,893 | $ | 135,174 | $ | 806,067 | ||||||||||||
Market appreciation/(depreciation)
|
7,669 | 236 | 7,905 | (114,202 | ) | 269 | (113,933 | ) | ||||||||||||||||
Dividends and distributions
|
(14,067 | ) | (344 | ) | (14,411 | ) | (10,590 | ) | (406 | ) | (10,996 | ) | ||||||||||||
Net shareholder purchases/(redemptions)
|
(941 | ) | 21,792 | 20,851 | (40,093 | ) | 18,614 | (21,479 | ) | |||||||||||||||
Ending Balance
|
$ | 357,633 | $ | 169,331 | $ | 526,964 | $ | 506,008 | $ | 153,651 | $ | 659,659 | ||||||||||||
Average investment management fee
|
0.93 | % | 0.00 | % | 0.65 | % | 0.95 | % | 0.00 | % | 0.76 | % | ||||||||||||
Average net assets
|
$ | 373,290 | $ | 159,645 | $ | 532,935 | $ | 582,044 | $ | 144,488 | $ | 726,532 |
•
|
Advisory fees decreased by $494,000, or 29.2 percent, as a result of decreased fees from lower assets under management, somewhat offset by the addition of ETF advisory fees and lower performance fee payouts. USGIF advisory fees are comprised of two components: a base management fee and a performance fee.
|
|
•
|
Base management fees decreased $670,000. Base fees decreased primarily as a result of lower assets under management in the USGIF funds and Galileo funds due to market depreciation and shareholder redemptions. This decrease was somewhat offset by the addition of ETF advisory fees.
|
|
•
|
Performance fee adjustments paid out in the current period decreased $176,000 versus the corresponding period in the prior year. The performance fee, which applies to the USGIF equity funds only, is a fulcrum fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months.
|
•
|
Administrative services fee revenue decreased by $75,000, or 44.9 percent as a result of lower average net assets under management upon which these fees are based and the transition of a portion of these services previously provided to USGIF to other service providers. Effective December 10, 2015, due to the Company’s reduced administrative responsibilities, the administrative fee paid to the Company by USGIF was reduced. It is anticipated that the Company will reduce expenses in the future due to reduced responsibilities.
|
•
|
Employee compensation and benefits increased by $296,000, or 21.2 percent, primarily as a result of severance costs paid due to a reduction of workforce.
|
•
|
General and administrative expenses increased $292,000, or 29.9 percent, primarily due to costs related to the USGIF transition. The costs of the transition, which included a proxy of USGIF shareholders, were split equally between the Company and USGIF, and the Company’s portion was approximately $290,000.
|
•
|
Platform fees decreased by $93,000, or 41.9 percent, due to lower assets held through broker-dealer platforms.
|
•
|
Advertising expense increased $16,000, or 72.7 percent, due to marketing costs related to the ETF launched in April 2015.
|
•
|
Advisory fees decreased by $1.8 million, or 43.2 percent, as a result of decreased fees from lower assets under management, somewhat offset by the addition of ETF advisory fees and lower performance fee payouts. USGIF advisory fees are comprised of two components: a base management fee and a performance fee.
|
|
•
|
Base management fees decreased $2.0 million. Base fees decreased primarily as a result of lower assets under management in the USGIF funds and Galileo funds due to market depreciation and shareholder redemptions. This decrease was somewhat offset by the addition of ETF advisory fees.
|
|
•
|
Performance fee adjustments paid out in the current period decreased $192,000 versus the corresponding period in the prior year. The performance fee, which applies to the USGIF equity funds only, is a fulcrum fee that is adjusted upwards or downwards by 0.25 percent when there is a performance difference of 5 percent or more between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months.
|
•
|
Administrative services fee revenue decreased by $172,000 or 45.9 percent as a result of lower average net assets under management upon which these fees are based and the transition of a portion of these services previously provided to USGIF to other service providers. Effective December 10, 2015, due to the Company’s reduced administrative responsibilities, the administrative fee paid to the Company by USGIF was reduced. It is anticipated that the Company will reduce expenses in the future due to reduced responsibilities.
|
•
|
Employee compensation and benefits increased by $235,000, or 8.3 percent, primarily as a result of severance costs paid due to a reduction of workforce, somewhat offset by fewer employees.
|
•
|
General and administrative expenses increased $86,000, or 4.1 percent, primarily due to costs related to the USGIF transition, somewhat offset by strategic cost cutting measures. The costs of the transition, which included a proxy to USGIF shareholders, were split equally between the Company and USGIF, and the Company’s portion of the proposal costs was approximately $290,000.
|
•
|
Platform fees decreased by $229,000, or 45.3 percent, due to lower assets held through broker-dealer platforms.
|
•
|
Advertising expense increased $111,000, or 292.1 percent, due to marketing cost related to the ETF launched in April 2015.
|
(dollars in thousands)
|
Fair Value at
December 31, 2015
|
Hypothetical
Percentage Change
|
Estimated Fair Value After Hypothetical Price Change
|
Increase (Decrease) in Shareholders' Equity, Net of Tax
|
|||||||||
Trading securities ¹
|
$ | 13,571 |
25% increase
|
$ | 16,964 | $ | 3,393 | ||||||
25% decrease
|
$ | 10,178 | $ | (3,393 | ) | ||||||||
Available-for-sale ²
|
$ | 3,648 |
25% increase
|
$ | 4,560 | $ | 912 | ||||||
25% decrease
|
$ | 2,736 | $ | (912 | ) |
1
|
Unrealized and realized gains and losses on trading securities are included in earnings in the statement of operations.
|
2
|
Unrealized gains and losses on available-for-sale securities are excluded from earnings and recorded in other comprehensive income as a component of shareholders’ equity until realized.
|
(dollars in thousands, except price data)
Period
|
Total Number of
Shares Purchased
1
|
Total Amount
Purchased
|
Average Price
Paid Per Share
2
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plan
3
|
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Plan
|
|||||||||||||||
10-01-15 to 10-31-15
|
23,300 | $ | 36 | $ | 1.52 | 23,300 | $ | 2,466 | ||||||||||||
11-01-15 to 11-30-15
|
22,000 | 28 | 1.26 | 22,000 | 2,438 | |||||||||||||||
12-01-15 to 12-31-15
|
14,907 | 17 | 1.18 | 14,907 |
See Note 3
|
|||||||||||||||
Total
|
60,207 | $ | 81 | $ | 1.34 | 60,207 |
1
|
The Board of Directors of the company approved on December 7, 2012, and renewed on December 12, 2013, December 10, 2014, and December 9, 2015, a repurchase of up to $2.75 million in each of calendar years 2013, 2014, 2015, and 2016, respectively, of its outstanding class A common stock from time to time on the open market in accordance with all applicable rules and regulations.
|
2
|
The average price paid per share of stock repurchased under the stock repurchase program includes the commissions paid to brokers.
|
3
|
The repurchase plan was approved on December 7, 2012, and renewed on December 12, 2013, December 10, 2014, and December 9, 2015, and will continue through calendar year 2016. The total amount of shares that may be repurchased in 2016 under the renewed program is $2.75 million.
|
U.S. GLOBAL INVESTORS, INC.
|
||
DATED:
|
February 12, 2016
|
BY:
/s/ Frank E. Holmes
|
Frank E. Holmes
|
||
Chief Executive Officer
|
||
DATED:
|
February 12, 2016
|
BY:
/s/ Lisa C. Callicotte
|
Lisa C. Callicotte
|
||
Chief Financial Officer
|
(i)
|
it is duly organized and in good standing under the laws of its jurisdiction of incorporation/organization and is registered as an open-end management investment company under the 1940 Act;
|
(ii)
|
this Agreement has been duly authorized, executed and delivered by the Client and, when executed and delivered, will constitute a valid and legally binding obligation of the Client, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties;
|
(iii)
|
it is conducting its business in compliance in all material respects with all applicable laws and regulations, both state and federal, and has obtained all regulatory approvals necessary to carry on its business as now conducted; there is no statute, rule, regulation, order or judgment binding on it and no provision of its charter, bylaws/operating agreement or any contract binding it or affecting its property which would prohibit its execution or performance of this Agreement;
|
(iv)
|
the Shares are validly authorized and, when issued in accordance with the description in the Prospectus, will be fully paid and nonassessable;
|
(v)
|
the Registration Statement and Prospectus included therein have been prepared in conformity with the requirements of the 1933 Act and the 1940 Act and the rules and regulations thereunder;
|
(vi)
|
the Registration Statement and Prospectus and any advertising materials and sales literature prepared by the Client or its agent do not and shall not contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that all statements or information furnished to the Distributor pursuant to this Agreement shall be true and correct in all material respects; and
|
(vii)
|
the Client owns, possesses, licenses or has other rights to use all patents, patent applications, trademarks and service marks, trademark and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, know-how and other intellectual property (collectively, “Intellectual Property”) necessary for or used in the conduct of the Client's business and for the offer, issuance, distribution and sale of the Fund Shares in accordance with the terms of the Prospectus and this Agreement, and such Intellectual Property does not and will not breach or infringe the terms of any Intellectual Property owned, held or licensed by any third party.
|
(i)
|
of any material correspondence or other communication by the Securities and Exchange Commission (“SEC”) or its staff relating to the Funds, including requests by the SEC for amendments to the Registration Statement or Prospectus;
|
(ii)
|
in the event of the issuance by the SEC of any stop-order suspending the effectiveness of the Registration Statement then in effect or the initiation of any proceeding for that purpose;
|
(iii)
|
of the happening of any event which makes untrue any statement of a material fact made in the Prospectus or which requires the making of a change in such Prospectus in order to make the statements therein not misleading;
|
(iv)
|
of all actions taken by the SEC with respect to any amendments to any Registration Statement or Prospectus which may from time to time be filed with the SEC;
|
(v)
|
in the event that it determines to suspend the sale of Shares at any time in response to conditions in the securities markets or otherwise or to suspend the redemption of Shares of any Fund at any time as permitted by the 1940 Act or the rules of the SEC; and
|
(vi)
|
of the commencement of any litigation or proceedings against the Client or any of its officers or directors in connection with the issue and sale of any of the Shares.
|
(i)
|
it is duly organized and existing under the laws of the jurisdiction of its organization, with full power to carry on its business as now conducted, to enter into this Agreement and to perform its obligations hereunder;
|
(ii)
|
this Agreement has been duly authorized, executed and delivered by the Distributor and, when executed and delivered, will constitute a valid and legally binding obligation of the Distributor, enforceable in accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the rights and remedies of creditors and secured parties;
|
(iii)
|
it is conducting its business in compliance in all material respects with all applicable laws and regulations, both state and federal, and has obtained all regulatory approvals necessary to carry on its business as now conducted; there is no statute, rule, regulation, order or judgment binding on it and no provision of its charter, operating agreement or any contract binding it or affecting its property which would prohibit its execution or performance of this Agreement; and
|
(iv)
|
it is registered as a broker-dealer under the 1934 Act and is a member in good standing of FINRA.
|
1.
|
Services
.
|
2.
|
Compensation
and
Expenses
.
|
3.
|
Term and
Termination.
|
4.
|
Rights and
Obligations
of
the
Adviser and
the Distributor.
|
5.
|
Representations and
Warranties.
|
(a)
|
The Adviser represents and warrants the following:
|
(b)
|
The Distributor represents and warrants the following:
|
6.
|
Confidentiality
.
|
7.
|
Limitation of Liability;
Indemnification.
|
8.
|
Notices.
|
9.
|
Assignment.
|
10.
|
Governing
Law
.
|
11.
|
Miscellaneous.
|
Name of Fund
|
Investor Class Shares
|
Institutional Class Shares
|
All American Equity Fund
|
X
|
|
China Region Fund
|
X
|
|
Emerging Europe Fund
|
X
|
X
|
Global Resources Fund
|
X
|
X
|
Gold and Precious Metals Fund
|
X
|
X
|
Holmes Macro Trends Fund
|
X
|
|
Near-Term Tax Free Fund
|
X
|
|
World Precious Minerals Fund
|
X
|
X
|
U.S. Government Securities Ultra-Short Bond Fund
|
X
|
Services
|
Fund-Level Duty
|
Class-Level Duty
|
|
1
|
Provide the Trust with personnel as are reasonably necessary to perform the Services
|
X
|
|
2
|
Assist in the preparation, distribution and utilization of comprehensive compliance materials pursuant to Rule 38a-1 of the 1940 Act, including compliance manuals and checklists; assist in the development of compliance guidelines and procedures to improve overall compliance by the Trust and its various agents
|
X
|
|
3
|
Assist in the monitoring of overall compliance with Rule 38a-1 by the Trust and its various agents including assisting with the coordination, preparation and submission of reports required by Rule 38-1 of the 1940 Act
|
X
|
|
4
|
Assist with proposing and carrying out policies directed at operational problem inquiry and resolution concerning actual or potential compliance violations, valuation of complex securities, securities trading in problematic markets or correction of pricing errors
|
X
|
|
5
|
Assist in the preparation of reports and meeting materials to the Board and to existing shareholders
|
X
|
X
|
6
|
Assist in the preparation and filing of periodic updates to the Trust’s prospectus and statement of additional information
|
X
|
|
7
|
Assist in the preparation and filing of any currently required or to be required reports filed with the Securities and Exchange Commission and other regulatory and self- regulatory authorities including, but not limited to, preliminary and definitive proxy materials, post-effective amendments to the Registration Statement, semi-annual
|
X
|
Services
|
Fund-Level Duty
|
Class-Level Duty
|
|
reports on Form N-SAR, Form N-CSR, Form N-Q, Form N-PX, and notices pursuant to Rule 24f-2 under the 1940 Act
|
|||
8
|
Assist in the preparation and filing of any regulatory reports as required by any regulatory agency
|
X
|
|
9
|
Assist in the preparation, updating and maintenance of copies of documents, such as charter documents, by-laws and foreign qualification filings
|
X
|
|
10
|
Assist with the continuing awareness of significant emerging regulatory and legislative developments that may affect the Funds, and provide related planning assistance where requested or appropriate
|
X
|
|
11
|
Assist the Trust in the handling of routine regulatory examinations and work closely with the Trust’s legal counsel in response to any non-routine regulatory matters
|
X
|
|
12
|
Assist with the determination and publication of the net asset value of each Fund in accordance with the valuation procedures and policies adopted from time to time by the Board
|
X
|
|
13
|
Assist with the accounting for dividends and interest received by the Funds, as requested
|
X
|
|
14
|
Review the calculation of fees to the Funds’ investment adviser and Administrator
|
X
|
|
15
|
Assist with the allocation of each Fund’s Rule 12b-1 expenses, as requested, and prepare related reports
|
X
|
|
16
|
Assist with the monitoring of the Trust’s compliance with its registration statement
|
X
|
|
17
|
Assist with the monitoring of the Trust’s compliance with the Internal Revenue Code, and the regulations promulgated thereunder
|
X
|
|
18
|
Assist with the supervision and negotiation of contractual arrangements with (to the extent appropriate) and monitoring of the performance of incumbent third party accounting agents, custodians, depositories, transfer agents, pricing agents, independent accountants and auditors, attorneys, printers, insurers and other persons in any capacity deemed to be necessary or desirable to Trust or Fund operations
|
X
|
|
19
|
Provide operational assistance for the Funds’ transfer agent as needed, including:
(a)
) facilitate calls with VIP shareholders;
(b)
approve exceptions to policies;
(c)
assist in resolution of operational issues that may
|
X
|
X
|
Services
|
Fund-Level Duty
|
Class-Level Duty
|
|
arise;
(d)
educate and train telephone representatives;
(e)
review monthly invoicing; and
(f)
Assist with the coordination of periodic reporting by the transfer agent to the Board, as requested by the Board.
|
|||
20
|
Assist with oversight of the Funds’ fund accounting and administrative services third party service provider
|
X
|
X
|
21
|
Assist with the oversight of the Funds’ custodian
|
X
|
|
22
|
Assist with the monitoring of the valuation of portfolio securities and monitor compliance with Board-approved valuation procedures
|
X
|
|
23
|
Assist in establishing the accounting and tax policies of each Fund, as requested
|
X
|
|
24
|
Assist in the resolution of accounting issues that may arise with respect to each Fund’s operations and consulting with each Fund’s independent accountants, legal counsel and each Fund's other agents as necessary in connection therewith
|
X
|
|
25
|
Assist with the monitoring of each Fund’s operating expense budgets
|
X
|
|
26
|
Assist with the review of each Fund’s bills, as appropriate
|
X
|
|
27
|
Assist each Fund in determining the amount of dividends and distributions available to be paid by each Fund to its shareholders
|
X
|
|
28
|
Provide the Board with periodic and special reports as the Board may reasonably request, including but not limited to reports concerning the services of the Administrator and custodian
|
X
|
|
29
|
Provide assistance with investor and public relations matters
|
X
|
|
30
|
Otherwise assist the Trust as it may reasonably request in the conduct of each Fund’s business
|
X
|
X
|
Fund
|
12b-1 Fees
1
|
|||
Single Class
|
Multiple Share Classes
|
|||
Inst’l Class
|
Investor Class
|
Other Class
|
||
Trust: U.S. Global Investors Funds
|
||||
All American Equity Fund
|
0.25%
|
|||
China Region Fund
|
0.25%
|
|||
Emerging Europe Fund
|
N/A
|
0.25%
|
||
Global Resources Fund
|
N/A
|
0.25%
|
||
Gold and Precious Metals Fund
|
N/A
|
0.25%
|
||
Holmes Macro Trends Fund
|
0.25%
|
|||
Near-Term Tax Free Fund
|
||||
U.S. Government Securities Ultra-Short Bond Fund
|
||||
World Precious Minerals Fund
|
N/A
|
0.25%
|
1.
|
I have reviewed this quarterly report on Form 10-Q of U.S. Global Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d–15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Frank E. Holmes
|
Frank E. Holmes
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of U.S. Global Investors, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d–15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Lisa C. Callicotte
|
Lisa C. Callicotte
|
Chief Financial Officer
|
Date:
|
February 12, 2016
|
/s/ Frank E. Holmes
|
|
Frank E. Holmes
|
|||
Chief Executive Officer
|
Date:
|
February 12, 2016
|
/s/ Lisa C. Callicotte
|
|
Lisa C. Callicotte
|
|||
Chief Financial Officer
|