U.S. GLOBAL INVESTORS, INC.
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(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
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(Address of principal executive offices)
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(Zip Code) |
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
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1
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1
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1
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2
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3
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4
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5
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18
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23
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23
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PART II. OTHER INFORMATION
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24
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24
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24
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24
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25
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26
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March 31, 2016
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June 30, 2015
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|||||||
Assets
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(UNAUDITED)
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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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$ | 3,057 | $ | 3,507 | ||||
Investment securities - trading, at fair value
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13,102 | 15,640 | ||||||
Investment securities - held-to-maturity
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750 | - | ||||||
Receivables
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749 | 1,653 | ||||||
Prepaid expenses
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329 | 410 | ||||||
Total assets held related to discontinued operations
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- | 184 | ||||||
Total Current Assets
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17,987 | 21,394 | ||||||
Net Property and Equipment
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2,537 | 2,736 | ||||||
Other Assets
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||||||||
Investment securities - available-for-sale, at fair value
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4,013 | 4,263 | ||||||
Other investments
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2,025 | 2,303 | ||||||
Intangible assets, net
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8 | 41 | ||||||
Other assets, long term
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109 | 33 | ||||||
Total Other Assets
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6,155 | 6,640 | ||||||
Total Assets
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$ | 26,679 | $ | 30,770 | ||||
Liabilities and Shareholders' Equity
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||||||||
Current Liabilities
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||||||||
Accounts payable
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$ | 158 | $ | 114 | ||||
Accrued compensation and related costs
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342 | 456 | ||||||
Dividends payable
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115 | 231 | ||||||
Other accrued expenses
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509 | 692 | ||||||
Total liabilities held related to discontinued operations
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- | 134 | ||||||
Total Current Liabilities
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1,124 | 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 March 31, 2016, and June 30, 2015
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347 | 347 | ||||||
Common stock (class B) - $0.025 par value; nonvoting; authorized, 4,500,000 shares; no shares issued
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- | - | ||||||
Convertible common stock (class C) - $0.025 par value; voting; authorized, 3,500,000 shares; issued, 2,069,127 shares at March 31, 2016, and June 30, 2015
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52 | 52 | ||||||
Additional paid-in-capital
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15,653 | 15,694 | ||||||
Treasury stock, class A shares at cost; 664,894 and 555,786 shares at March 31, 2016, and June 30, 2015, respectively
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(1,624 | ) | (1,464 | ) | ||||
Accumulated other comprehensive loss, net of tax
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(45 | ) | (483 | ) | ||||
Retained earnings
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10,649 | 14,423 | ||||||
Total U.S. Global Investors Inc. Shareholders' Equity
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25,032 | 28,569 | ||||||
Non-Controlling Interest in Subsidiary
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523 | 574 | ||||||
Total Shareholders' Equity
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25,555 | 29,143 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 26,679 | $ | 30,770 |
Nine Months Ended
March 31,
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Three Months Ended
March 31,
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|||||||||||||||
(dollars in thousands, except per share data)
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2016
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2015
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2016
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2015
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||||||||||||
Operating Revenues
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||||||||||||||||
Advisory fees
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$ | 3,615 | $ | 5,359 | $ | 1,279 | $ | 1,248 | ||||||||
Administrative services fees
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254 | 516 | 51 | 141 | ||||||||||||
3,869 | 5,875 | 1,330 | 1,389 | |||||||||||||
Operating Expenses
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||||||||||||||||
Employee compensation and benefits
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3,953 | 4,101 | 886 | 1,269 | ||||||||||||
General and administrative
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2,963 | 3,113 | 765 | 1,001 | ||||||||||||
Platform fees
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382 | 671 | 106 | 166 | ||||||||||||
Advertising
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182 | 81 | 33 | 43 | ||||||||||||
Depreciation and amortization
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240 | 246 | 80 | 81 | ||||||||||||
7,720 | 8,212 | 1,870 | 2,560 | |||||||||||||
Operating Loss
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(3,851 | ) | (2,337 | ) | (540 | ) | (1,171 | ) | ||||||||
Other Income
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||||||||||||||||
Investment income
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411 | 522 | 148 | 249 | ||||||||||||
Total Other Income
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411 | 522 | 148 | 249 | ||||||||||||
Loss Before Income Taxes
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(3,440 | ) | (1,815 | ) | (392 | ) | (922 | ) | ||||||||
Provision for Federal Income Taxes
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||||||||||||||||
Tax expense (benefit)
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(5 | ) | 22 | (16 | ) | 26 | ||||||||||
Loss from Continuing Operations
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(3,435 | ) | (1,837 | ) | (376 | ) | (948 | ) | ||||||||
Discontinued Operations
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||||||||||||||||
Loss from discontinued operations of distributor
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(18 | ) | (89 | ) | - | (47 | ) | |||||||||
Tax benefit
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- | (1 | ) | - | (1 | ) | ||||||||||
Loss from Discontinued Operations
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(18 | ) | (88 | ) | - | (46 | ) | |||||||||
Net Loss
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(3,453 | ) | (1,925 | ) | (376 | ) | (994 | ) | ||||||||
Less: Net Income (Loss) Attributable to Non-Controlling Interest
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(23 | ) | 53 | (26 | ) | 13 | ||||||||||
Net Loss Attributable to U.S. Global Investors, Inc.
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$ | (3,430 | ) | $ | (1,978 | ) | $ | (350 | ) | $ | (1,007 | ) | ||||
Basic Net Loss per Share:
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||||||||||||||||
Loss from continuing operations
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$ | (0.22 | ) | $ | (0.12 | ) | $ | (0.02 | ) | $ | (0.06 | ) | ||||
Loss from discontinued operations
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- | (0.01 | ) | - | (0.01 | ) | ||||||||||
Basic Net Loss per Share
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$ | (0.22 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.07 | ) | ||||
Diluted Net Loss per Share:
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||||||||||||||||
Loss from continuing operations
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$ | (0.22 | ) | $ | (0.12 | ) | $ | (0.02 | ) | $ | (0.06 | ) | ||||
Loss from discontinued operations
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- | (0.01 | ) | - | (0.01 | ) | ||||||||||
Diluted Net Loss per Share
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$ | (0.22 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.07 | ) | ||||
Basic weighted average number of common shares outstanding
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15,306,676 | 15,406,189 | 15,277,098 | 15,379,365 | ||||||||||||
Diluted weighted average number of common shares outstanding
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15,306,676 | 15,406,189 | 15,277,098 | 15,379,365 |
Nine Months Ended
March 31,
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Three Months Ended
March 31,
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|||||||||||||||
(dollars in thousands)
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2016
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2015
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2016
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2015
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||||||||||||
Net Loss Attributable to U.S. Global Investors, Inc.
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$ | (3,430 | ) | $ | (1,978 | ) | $ | (350 | ) | $ | (1,007 | ) | ||||
Other Comprehensive Income (Loss), Net of Tax:
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||||||||||||||||
Unrealized gains (losses) on available-for-sale securities arising during period
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774 | (862 | ) | 417 | (13 | ) | ||||||||||
Less: reclassification adjustment for gains/losses included in net income
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(286 | ) | (321 | ) | (14 | ) | (69 | ) | ||||||||
Net change from available-for-sale investments, net of tax
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488 | (1,183 | ) | 403 | (82 | ) | ||||||||||
Foreign currency translation adjustment
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(79 | ) | (285 | ) | 95 | (136 | ) | |||||||||
Other Comprehensive Income (Loss)
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409 | (1,468 | ) | 498 | (218 | ) | ||||||||||
Comprehensive Income (Loss)
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(3,021 | ) | (3,446 | ) | 148 | (1,225 | ) | |||||||||
Less: Comprehensive Income (Loss) Attributable to Non-Controlling Interest
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(28 | ) | (100 | ) | 33 | (48 | ) | |||||||||
Comprehensive Income (Loss) Attributable to U.S. Global Investors, Inc.
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$ | (2,993 | ) | $ | (3,346 | ) | $ | 115 | $ | (1,177 | ) |
Nine Months Ended March 31,
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||||||||
(dollars in thousands)
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2016
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2015
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||||||
Cash Flows from Operating Activities:
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||||||||
Net loss
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$ | (3,453 | ) | $ | (1,925 | ) | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
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||||||||
Depreciation and amortization
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240 | 246 | ||||||
Net recognized loss on disposal of fixed assets
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- | 26 | ||||||
Net recognized (gain) loss on securities
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2 | (483 | ) | |||||
Provision for deferred taxes
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- | 37 | ||||||
Stock bonuses
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11 | 9 | ||||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable
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1,080 | 570 | ||||||
Prepaid and other assets
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2 | 21 | ||||||
Trading securities
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2,505 | 1,371 | ||||||
Accounts payable and accrued expenses
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(378 | ) | (510 | ) | ||||
Total adjustments
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3,462 | 1,287 | ||||||
Net cash provided by (used in) operating activities
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9 | (638 | ) | |||||
Cash Flows from Investing Activities:
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||||||||
Purchase of property and equipment
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(13 | ) | (40 | ) | ||||
Purchase of available-for-sale securities
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- | (186 | ) | |||||
Purchase of other investments
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(750 | ) | (1,000 | ) | ||||
Proceeds on sale of available-for-sale securities
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1,014 | 754 | ||||||
Return of capital on investment
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32 | 19 | ||||||
Net cash provided by (used in) investing activities
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283 | (453 | ) | |||||
Cash Flows from Financing Activities:
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||||||||
Issuance of common stock
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59 | 91 | ||||||
Repurchases of common stock
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(269 | ) | (266 | ) | ||||
Distributions to non-controlling interests in subsidiary
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- | (27 | ) | |||||
Dividends paid
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(460 | ) | (693 | ) | ||||
Net cash used in financing activities
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(670 | ) | (895 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
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(72 | ) | (253 | ) | ||||
Net decrease in cash and cash equivalents
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(450 | ) | (2,239 | ) | ||||
Beginning cash and cash equivalents
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3,507 | 5,910 | ||||||
Ending cash and cash equivalents
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$ | 3,057 | $ | 3,671 | ||||
Supplemental Disclosures of Cash Flow Information
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||||||||
Cash paid for income taxes
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$ | - | $ | - |
March 31, 2016
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(dollars in thousands)
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Cost
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Gains
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(Losses)
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Fair Value
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||||||||||||
Trading securities
1
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||||||||||||||||
Offshore fund
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$ | 1,184 | $ | - | $ | (839 | ) | $ | 345 | |||||||
Mutual funds - Fixed income
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12,290 | 125 | (1 | ) | 12,414 | |||||||||||
Mutual funds - Domestic equity
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535 | - | (192 | ) | 343 | |||||||||||
Other
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46 | - | (46 | ) | - | |||||||||||
Total trading securities
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$ | 14,055 | $ | 125 | $ | (1,078 | ) | $ | 13,102 | |||||||
Available-for-sale securities
2
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||||||||||||||||
Common stock - Domestic
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$ | 109 | $ | 9 | $ | - | $ | 118 | ||||||||
Common stock - International
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613 | 57 | (50 | ) | 620 | |||||||||||
Corporate debt
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1,355 | 152 | - | 1,507 | ||||||||||||
Mutual funds - Fixed income
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1,229 | 14 | (34 | ) | 1,209 | |||||||||||
Mutual funds - Domestic equity
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394 | 5 | - | 399 | ||||||||||||
Other
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163 | 2 | (5 | ) | 160 | |||||||||||
Total available-for-sale securities
3
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$ | 3,863 | $ | 239 | $ | (89 | ) | $ | 4,013 |
June 30, 2015
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||||||||||||||||
(dollars in thousands)
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Cost
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Gains
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(Losses)
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Fair Value
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||||||||||||
Trading securities
1
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||||||||||||||||
Offshore fund
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$ | 1,184 | $ | - | $ | (703 | ) | $ | 481 | |||||||
Mutual funds - Fixed income
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14,691 | 68 | (5 | ) | 14,754 | |||||||||||
Mutual funds - Domestic equity
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535 | - | (130 | ) | 405 | |||||||||||
Other
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81 | - | (81 | ) | - | |||||||||||
Total trading securities
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$ | 16,491 | $ | 68 | $ | (919 | ) | $ | 15,640 | |||||||
Available-for-sale securities
2
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||||||||||||||||
Common stock - Domestic
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$ | 535 | $ | 316 | $ | (9 | ) | $ | 842 | |||||||
Common stock - International
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695 | 309 | (39 | ) | 965 | |||||||||||
Corporate debt
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1,433 | - | (817 | ) | 616 | |||||||||||
Mutual funds - Fixed income
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1,227 | 9 | (22 | ) | 1,214 | |||||||||||
Mutual funds - Domestic equity
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543 | - | (80 | ) | 463 | |||||||||||
Other
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169 | 1 | (7 | ) | 163 | |||||||||||
Total available-for-sale securities
3
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$ | 4,602 | $ | 635 | $ | (974 | ) | $ | 4,263 |
1
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Unrealized and realized gains and losses on trading securities are included in earnings in the statement of operations.
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2
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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.
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3
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Net unrealized gains (losses) on available-for-sale securities gross and net of tax as of March 31, 2016, are $150
and $150, respectively, and as of June 30, 2015, are $(339) and $(339), respectively.
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March 31, 2016
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||||||||||||||||||||||||
Less Than 12 Months
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12 Months or Greater
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Total
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||||||||||||||||||||||
Gross
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Gross
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Gross
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||||||||||||||||||||||
Unrealized
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Unrealized
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Unrealized
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||||||||||||||||||||||
(dollars in thousands)
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Fair Value
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Losses
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Fair Value
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Losses
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Fair Value
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Losses
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||||||||||||||||||
Available-for-sale securities
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||||||||||||||||||||||||
Common stock - Domestic
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$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Common stock - International
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164 | (31 | ) | 27 | (19 | ) | 191 | (50 | ) | |||||||||||||||
Corporate debt
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- | - | - | - | - | - | ||||||||||||||||||
Mututal funds - Fixed income
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2 | - | 194 | (34 | ) | 196 | (34 | ) | ||||||||||||||||
Mutual funds - Domestic equity
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- | - | - | - | - | - | ||||||||||||||||||
Other
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101 | (5 | ) | - | - | 101 | (5 | ) | ||||||||||||||||
Total available-for-sale securities
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$ | 267 | $ | (36 | ) | $ | 221 | $ | (53 | ) | $ | 488 | $ | (89 | ) |
June 30, 2015
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||||||||||||||||||||||||
Less Than 12 Months
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12 Months or Greater
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Total
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||||||||||||||||||||||
Gross
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Gross
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Gross
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||||||||||||||||||||||
Unrealized
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Unrealized
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Unrealized
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||||||||||||||||||||||
(dollars in thousands)
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Fair Value
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Losses
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Fair Value
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Losses
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Fair Value
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Losses
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||||||||||||||||||
Available-for-sale securities
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||||||||||||||||||||||||
Common stock - Domestic
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$ | 77 | $ | (7 | ) | $ | 107 | $ | (2 | ) | $ | 184 | $ | (9 | ) | |||||||||
Common stock - International
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114 | (23 | ) | 39 | (16 | ) | 153 | (39 | ) | |||||||||||||||
Corporate debt
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386 | (817 | ) | - | - | 386 | (817 | ) | ||||||||||||||||
Mututal funds - Fixed income
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67 | (7 | ) | 139 | (15 | ) | 206 | (22 | ) | |||||||||||||||
Mutual funds - Domestic equity
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463 | (80 | ) | - | - | 463 | (80 | ) | ||||||||||||||||
Other
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112 | (7 | ) | - | - | 112 | (7 | ) | ||||||||||||||||
Total available-for-sale securities
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$ | 1,219 | $ | (941 | ) | $ | 285 | $ | (33 | ) | $ | 1,504 | $ | (974 | ) |
•
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realized gains and losses on sales of securities;
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•
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unrealized gains and losses on trading securities;
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•
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realized foreign currency gains and losses;
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•
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other-than-temporary impairments on available-for-sale securities;
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•
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other-than-temporary impairments on held-at-cost securities; and
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•
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dividend and interest income.
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(dollars in thousands)
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Nine Months Ended March 31,
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Three Months Ended March 31,
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||||||||||||||
Investment Income
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2016
|
2015
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2016
|
2015
|
||||||||||||
Realized gains on sales of available-for-sale securities
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$ | 545 | $ | 591 | $ | 14 | $ | 209 | ||||||||
Realized gains (losses) on sales of trading securities
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(32 | ) | (3 | ) | 3 | 3 | ||||||||||
Unrealized gains (losses) on trading securities
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(103 | ) | (548 | ) | 30 | (21 | ) | |||||||||
Realized foreign currency gains (losses)
|
24 | 82 | (28 | ) | 58 | |||||||||||
Other-than-temporary declines in available-for-sale securities
|
(259 | ) | (105 | ) | - | (105 | ) | |||||||||
Other-than-temporary declines in securities held at cost
|
(258 | ) | - | - | - | |||||||||||
Dividend and interest income
|
494 | 505 | 129 | 105 | ||||||||||||
Total Investment Income
|
$ | 411 | $ | 522 | $ | 148 | $ | 249 |
March 31, 2016
|
||||||||||||||||
Quoted Prices
|
Significant Other Inputs
|
Significant
Unobservable Inputs
|
||||||||||||||
(dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
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||||||||||||
Trading securities
|
||||||||||||||||
Offshore fund
|
$ | - | $ | 345 | $ | - | $ | 345 | ||||||||
Mutual funds - Fixed income
|
12,414 | - | - | 12,414 | ||||||||||||
Mutual funds - Domestic equity
|
343 | - | - | 343 | ||||||||||||
Other
|
- | - | - | - | ||||||||||||
Total trading securities
|
12,757 | 345 | - | 13,102 | ||||||||||||
Available-for-sale securities
|
||||||||||||||||
Common stock - Domestic
|
118 | - | - | 118 | ||||||||||||
Common stock - International
|
620 | - | - | 620 | ||||||||||||
Corporate debt
|
1,001 | 294 | 212 | 1,507 | ||||||||||||
Mutual funds - Fixed income
|
1,209 | - | - | 1,209 | ||||||||||||
Mutual funds - Domestic equity
|
399 | - | - | 399 | ||||||||||||
Other
|
160 | - | - | 160 | ||||||||||||
Total available-for-sale securities
|
3,507 | 294 | 212 | 4,013 | ||||||||||||
Total
|
$ | 16,264 | $ | 639 | $ | 212 | $ | 17,115 |
June 30, 2015
|
||||||||||||||||
Quoted Prices
|
Significant Other Inputs
|
Significant
Unobservable Inputs
|
||||||||||||||
(dollars in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Total
|
||||||||||||
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 |
Nine Months Ended March 31,
|
Three Months Ended March 31,
|
|||||||||||||||
(dollars in thousands, except per share data)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Net Loss
|
||||||||||||||||
Loss from continuing operations
|
$ | (3,435 | ) | $ | (1,837 | ) | $ | (376 | ) | $ | (948 | ) | ||||
Less: Income (loss) attributable to non-controlling interest in subsidiary
|
(23 | ) | 53 | (26 | ) | 13 | ||||||||||
Loss from continuing operations attributable to U.S. Global Investors, Inc.
|
(3,412 | ) | (1,890 | ) | (350 | ) | (961 | ) | ||||||||
Loss from discontinued operations attributable to U.S. Global Investors, Inc.
|
(18 | ) | (88 | ) | - | (46 | ) | |||||||||
Net loss attributable to U.S. Global Investors, Inc.
|
$ | (3,430 | ) | $ | (1,978 | ) | $ | (350 | ) | $ | (1,007 | ) | ||||
Weighted average number of outstanding shares
|
||||||||||||||||
Basic
|
15,306,676 | 15,406,189 | 15,277,098 | 15,379,365 | ||||||||||||
Effect of dilutive securities
|
||||||||||||||||
Employee stock options
|
- | - | - | - | ||||||||||||
Diluted
|
15,306,676 | 15,406,189 | 15,277,098 | 15,379,365 | ||||||||||||
Net loss per share attributable to U.S. Global Investors, Inc.
|
||||||||||||||||
Basic
|
||||||||||||||||
Loss from continuing operations
|
$ | (0.22 | ) | $ | (0.12 | ) | $ | (0.02 | ) | $ | (0.06 | ) | ||||
Loss from discontinued operations
|
- | (0.01 | ) | - | (0.01 | ) | ||||||||||
Net loss attributable to U.S. Global Investors, Inc.
|
$ | (0.22 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.07 | ) | ||||
Diluted
|
||||||||||||||||
Loss from continuing operations
|
$ | (0.22 | ) | $ | (0.12 | ) | $ | (0.02 | ) | $ | (0.06 | ) | ||||
Loss from discontinued operations
|
- | (0.01 | ) | - | (0.01 | ) | ||||||||||
Net loss attributable to U.S. Global Investors, Inc.
|
$ | (0.22 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.07 | ) |
(dollars in thousands)
|
Unrealized gains (losses) on available-for-sale investments
1
|
Foreign currency adjustment
|
Total
|
|||||||||
Nine Months Ended March 31, 2016
|
||||||||||||
Balance at June 30, 2015
|
$ | (339 | ) | $ | (144 | ) | $ | (483 | ) | |||
Other comprehensive income (loss) before reclassifications
|
774 | (50 | ) | 724 | ||||||||
Tax effect
|
- | - | - | |||||||||
Amount reclassified from AOCI
|
(286 | ) | - | (286 | ) | |||||||
Tax effect
|
- | - | - | |||||||||
Net other comprehensive income (loss) for nine months ended March 31, 2016
|
488 | (50 | ) | 438 | ||||||||
Balance at March 31, 2016
|
$ | 149 | $ | (194 | ) | $ | (45 | ) | ||||
Three Months Ended March 31, 2016
|
||||||||||||
Balance at December 31, 2015
|
$ | (254 | ) | $ | (257 | ) | $ | (511 | ) | |||
Other comprehensive income before reclassifications
|
417 | 63 | 480 | |||||||||
Tax effect
|
- | - | - | |||||||||
Amount reclassified from AOCI
|
(14 | ) | - | (14 | ) | |||||||
Tax effect
|
- | - | - | |||||||||
Net other comprehensive income for quarter
|
403 | 63 | 466 | |||||||||
Balance at March 31, 2016
|
$ | 149 | $ | (194 | ) | $ | (45 | ) |
(dollars in thousands)
|
Unrealized gains (losses) on available-for-sale investments
1
|
Foreign currency adjustment
|
Total
|
|||||||||
Nine Months Ended March 31, 2015
|
||||||||||||
Balance at June 30, 2014
|
$ | 888 | $ | 18 | $ | 906 | ||||||
Other comprehensive loss before reclassifications
|
(1,306 | ) | (185 | ) | (1,491 | ) | ||||||
Tax effect
|
444 | - | 444 | |||||||||
Amount reclassified from AOCI
|
(486 | ) | - | (486 | ) | |||||||
Tax effect
|
165 | - | 165 | |||||||||
Net other comprehensive loss for nine months ended March 31, 2015
|
(1,183 | ) | (185 | ) | (1,368 | ) | ||||||
Balance at March 31, 2015
|
$ | (295 | ) | $ | (167 | ) | $ | (462 | ) | |||
Three Months Ended March 31, 2015
|
||||||||||||
Balance at December 31, 2014
|
$ | (213 | ) | $ | (78 | ) | $ | (291 | ) | |||
Other comprehensive loss before reclassifications
|
(20 | ) | (89 | ) | (109 | ) | ||||||
Tax effect
|
7 | - | 7 | |||||||||
Amount reclassified from AOCI
|
(105 | ) | - | (105 | ) | |||||||
Tax effect
|
36 | - | 36 | |||||||||
Net other comprehensive loss for quarter
|
(82 | ) | (89 | ) | (171 | ) | ||||||
Balance at March 31, 2015
|
$ | (295 | ) | $ | (167 | ) | $ | (462 | ) |
(dollars in thousands)
|
Investment Management Services
|
Investment Management Services - Canada
|
Corporate Investments
|
Consolidated
|
||||||||||||||
Nine months ended March 31, 2016
|
||||||||||||||||||
Net operating revenues
|
$ | 2,990 | 1 | $ | 879 | 2 | $ | - | $ | 3,869 | ||||||||
Net other income
|
$ | - | $ | - | $ | 411 | $ | 411 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (3,727 | ) | $ | (130 | ) | $ | 417 | $ | (3,440 | ) | |||||||
Loss from discontinued operations
|
$ | (18 | ) | $ | - | $ | - | $ | (18 | ) | ||||||||
Depreciation and amortization
|
$ | 192 | $ | 48 | $ | - | $ | 240 | ||||||||||
Capital expenditures
|
$ | 13 | $ | - | $ | - | $ | 13 | ||||||||||
Gross identifiable assets at March 31, 2016
|
$ | 4,652 | $ | 1,664 | $ | 20,363 | $ | 26,679 | ||||||||||
Deferred tax asset
|
$ | - | ||||||||||||||||
Consolidated total assets at March 31, 2016
|
$ | 26,679 | ||||||||||||||||
Nine months ended March 31, 2015
|
||||||||||||||||||
Net operating revenues
|
$ | 4,281 | 1 | $ | 1,594 | 2 | $ | - | $ | 5,875 | ||||||||
Net other income
|
$ | - | $ | - | $ | 522 | $ | 522 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (2,333 | ) | $ | 3 | $ | 515 | $ | (1,815 | ) | ||||||||
Loss from discontinued operations
|
$ | (88 | ) | $ | - | $ | - | $ | (88 | ) | ||||||||
Depreciation and amortization
|
$ | 190 | $ | 56 | $ | - | $ | 246 | ||||||||||
Capital expenditures
|
$ | 40 | $ | - | $ | - | $ | 40 | ||||||||||
Three months ended March 31, 2016
|
||||||||||||||||||
Net operating revenues
|
$ | 1,075 | 3 | $ | 255 | 4 | $ | - | $ | 1,330 | ||||||||
Net other income
|
$ | - | $ | - | $ | 148 | $ | 148 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (511 | ) | $ | (41 | ) | $ | 160 | $ | (392 | ) | |||||||
Loss from discontinued operations
|
$ | - | $ | - | $ | - | $ | - | ||||||||||
Depreciation and amortization
|
$ | 64 | $ | 16 | $ | - | $ | 80 | ||||||||||
Capital expenditures
|
$ | - | $ | - | $ | - | $ | - | ||||||||||
Three months ended March 31, 2015
|
||||||||||||||||||
Net operating revenues
|
$ | 976 | 3 | $ | 413 | 4 | $ | - | $ | 1,389 | ||||||||
Net other income
|
$ | - | $ | - | $ | 249 | $ | 249 | ||||||||||
Income (loss) from continuing operations before income taxes
|
$ | (1,128 | ) | $ | (39 | ) | $ | 245 | $ | (922 | ) | |||||||
Loss from discontinued operations
|
$ | (46 | ) | $ | - | $ | - | $ | (46 | ) | ||||||||
Depreciation and amortization
|
$ | 63 | $ | 18 | $ | - | $ | 81 | ||||||||||
Capital expenditures
|
$ | - | $ | - | $ | - | $ | - |
1
|
Includes operating revenues from USGIF of $2,707 and $4,178 for the nine months ended March 31, 2016, and March 31, 2015, respectively.
|
2
|
Includes operating revenues from Galileo mutual funds of $689 and $1,307 for the nine months ended March 31, 2016, and March 31, 2015, respectively.
|
3
|
Includes operating revenues from USGIF of $977 and $952 for the three months ended March 31, 2016, and March 31, 2015, respectively.
|
4
|
Includes operating revenues from Galileo mutual funds of $193 and $332 for the three months ended March 31, 2016, and March 31, 2015, respectively.
|
(dollars in thousands)
|
March 31, 2016
|
June 30, 2015
|
||||||
Assets
|
||||||||
Receivables
|
$ | - | $ | 184 | ||||
Total assets held related to discontinued operations
|
$ | - | $ | 184 | ||||
Liabilities
|
||||||||
Accounts payable
|
$ | - | $ | 5 | ||||
Other accrued expenses
|
- | 129 | ||||||
Total liabilities held related to discontinued operations
|
$ | - | $ | 134 |
Nine Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
(dollars in thousands)
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Revenues
|
||||||||||||||||
Distribution fees
|
$ | 425 | $ | 1,118 | $ | - | $ | 299 | ||||||||
Shareholder services fees
|
183 | 507 | - | 143 | ||||||||||||
608 | 1,625 | - | 442 | |||||||||||||
Expenses
|
||||||||||||||||
Employee compensation and benefits
|
188 | 411 | - | 120 | ||||||||||||
General and administrative
|
77 | 135 | - | 47 | ||||||||||||
Platform fees
|
347 | 963 | - | 269 | ||||||||||||
Advertising
|
14 | 205 | - | 53 | ||||||||||||
626 | 1,714 | - | 489 | |||||||||||||
Loss from Discontinued Operations Before Income Taxes
|
(18 | ) | (89 | ) | - | (47 | ) | |||||||||
Tax expense (benefit)
|
- | (1 | ) | - | (1 | ) | ||||||||||
Loss from Discontinued Operations
|
$ | (18 | ) | $ | (88 | ) | $ | - | $ | (46 | ) |
Changes in Assets Under Management
|
||||||||||||||||||||||||
Nine Months Ended March 31,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
(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)
|
12,294 | 2,105 | 14,399 | (254,472 | ) | 902 | (253,570 | ) | ||||||||||||||||
Dividends and distributions
|
(14,068 | ) | (1,209 | ) | (15,277 | ) | (10,590 | ) | (1,245 | ) | (11,835 | ) | ||||||||||||
Net shareholder purchases/(redemptions)
|
(24,195 | ) | 24,795 | 600 | (87,684 | ) | 27,628 | (60,056 | ) | |||||||||||||||
Ending Balance
|
$ | 416,274 | $ | 174,274 | $ | 590,548 | $ | 462,622 | $ | 157,845 | $ | 620,467 | ||||||||||||
Average investment management fee
|
0.92 | % | 0.00 | % | 0.65 | % | 0.95 | % | 0.00 | % | 0.77 | % | ||||||||||||
Average net assets
|
$ | 380,689 | $ | 159,610 | $ | 540,299 | $ | 615,690 | $ | 143,474 | $ | 759,164 |
Changes in Assets Under Management
|
||||||||||||||||||||||||
Three Months Ended March 31,
|
||||||||||||||||||||||||
2016
|
2015
|
|||||||||||||||||||||||
(Dollars in Thousands)
|
Equity
|
Fixed Income
|
Total
|
Equity
|
Fixed Income
|
Total
|
||||||||||||||||||
Beginning Balance
|
$ | 357,633 | $ | 169,331 | $ | 526,964 | $ | 506,008 | $ | 153,651 | $ | 659,659 | ||||||||||||
Market appreciation/(depreciation)
|
59,891 | 952 | 60,843 | (28,435 | ) | 409 | (28,026 | ) | ||||||||||||||||
Dividends and distributions
|
- | (476 | ) | (476 | ) | - | (412 | ) | (412 | ) | ||||||||||||||
Net shareholder purchases/(redemptions)
|
(1,250 | ) | 4,467 | 3,217 | (14,951 | ) | 4,197 | (10,754 | ) | |||||||||||||||
Ending Balance
|
$ | 416,274 | $ | 174,274 | $ | 590,548 | $ | 462,622 | $ | 157,845 | $ | 620,467 | ||||||||||||
Average investment management fee
|
0.93 | % | 0.00 | % | 0.64 | % | 0.89 | % | 0.00 | % | 0.68 | % | ||||||||||||
Average net assets
|
$ | 375,557 | $ | 171,350 | $ | 546,907 | $ | 496,904 | $ | 154,163 | $ | 651,067 |
•
|
Advisory fees increased by $31,000, or 2.5 percent, as a result of the addition of ETF advisory fees and lower performance fee payouts , somewhat offset by decreased fees from lower assets under management. USGIF advisory fees are comprised of two components: a base management fee and a performance fee.
|
|
•
|
Base management fees decreased $308,000. 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 in the current period were $58,000 in fees received compared to $281,000 in fees paid out in the corresponding period in the prior year, a positive difference of $339,000. 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 $90,000, or 63.8 percent as a result of lower average net assets under management upon which these fees are based and the outsourcing to other service providers a portion of these services previously provided to USGIF. Effective December 10, 2015, due to the Company’s reduced administrative responsibilities, the administrative fee paid to the Company by USGIF was reduced. As noted below, the Company has reduced related expenses due to these reduced responsibilities.
|
•
|
Employee compensation and benefits decreased by $383,000, or 30.2 percent, primarily as a result of fewer employees.
|
•
|
General and administrative expenses decreased $236,000, or 23.6 percent, primarily due to strategic cost-cutting measures.
|
•
|
Platform fees decreased by $60,000, or 36.1 percent, due to the Company no longer being responsible for paying the platform fees for the USGIF equity funds after outsourcing to a third-party distributor for USGIF in December 2015.
|
•
|
Advisory fees decreased by $1.7 million, or 32.5 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 $2.3 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 were $531,000 less in the current period compared to 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 $262,000 or 50.8 percent as a result of lower average net assets under management upon which these fees are based and the outsourcing to other service providers a portion of these services previously provided to USGIF. Effective December 10, 2015, due to the Company’s reduced administrative responsibilities, the administrative fee paid to the Company by USGIF was reduced. As noted in the discussion of the quarterly results, the Company has reduced related expenses due to these reduced responsibilities.
|
•
|
Employee compensation and benefits decreased by $148,000, or 3.6 percent, primarily as a result of lower performance-based bonuses and fewer employees.
|
•
|
General and administrative expenses decreased $150,000, or 4.8 percent, primarily due to strategic cost cutting measures, offset somewhat by costs in the second quarter of fiscal 2016 related to the USGIF transition.
|
•
|
Platform fees decreased by $289,000, or 43.1 percent, due to the Company no longer being responsible for paying the platform fees for the USGIF equity funds after the transition to a third-party distributor for USGIF in December 2015. Prior to the transition, fees were lower due to lower assets held through broker-dealer platforms.
|
•
|
Advertising expense increased $101,000, or 124.7 percent, due to marketing costs related to the ETF launched in April 2015.
|
(dollars in thousands)
|
Fair Value at
March 31, 2016
|
Hypothetical Percentage Change
|
Estimated Fair Value After Hypothetical Price Change
|
Increase (Decrease) in Shareholders' Equity, Net of Tax
|
|||||||||
Trading securities ¹
|
$ | 13,102 |
25% increase
|
$ | 16,378 | $ | 3,276 | ||||||
25% decrease
|
$ | 9,826 | $ | (3,276 | ) | ||||||||
Available-for-sale ²
|
$ | 4,013 |
25% increase
|
$ | 5,016 | $ | 1,003 | ||||||
25% decrease
|
$ | 3,010 | $ | (1,003 | ) |
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
|
|||||||||||||||
01-01-16 to 01-31-16
|
3,939 | $ | 5 | $ | 1.22 | 3,939 | $ | 2,745 | ||||||||||||
02-01-16 to 02-29-16
|
13,935 | 19 | 1.35 | 13,935 | 2,726 | |||||||||||||||
03-01-16 to 03-31-16
|
1,403 | 2 | 1.63 | 1,403 | 2,724 | |||||||||||||||
Total
|
19,277 | $ | 26 | $ | 1.35 | 19,277 |
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:
|
May 12, 2016
|
BY:
/s/ Frank E. Holmes
|
|
Frank E. Holmes
|
|||
Chief Executive Officer
|
|||
DATED:
|
May 12, 2016
|
BY:
/s/ Lisa C. Callicotte
|
|
Lisa C. Callicotte
|
|||
Chief Financial Officer
|
PAGE
|
||
ARTICLE I
INTRODUCTION
|
||
Sec. 1.01
Statement of Purpose
|
1
|
|
Sec. 1.02
Internal Revenue Code Considerations
|
1
|
|
Sec. 1.03
ERISA Considerations
|
1
|
|
ARTICLE II
DEFINITIONS
|
||
Sec. 2.01 “Base Compensation”
|
1
|
|
Sec. 2.02 “Board of Directors”
|
1
|
|
Sec. 2.03 “Code”
|
1
|
|
Sec. 2.04 “Committee”
|
1
|
|
Sec. 2.05 “Company”
|
1
|
|
Sec. 2.06 “Company Matching Contributions”
|
1
|
|
Sec. 2.07 “Compensation”
|
1
|
|
Sec. 2.08 “Effective Date”
|
1
|
|
Sec. 2.09 “Election Date”
|
2
|
|
Sec. 2.10 “Eligible Employee”
|
2
|
|
Sec. 2.11 “Employer”
|
2
|
|
Sec. 2.12 “Market Value”
|
2
|
|
Sec. 2.13 “Participant”
|
2
|
|
Sec. 2.14 “Participation”
|
2
|
|
Sec. 2.15 “Plan”
|
2
|
|
Sec. 2.16 “Plan Year”
|
2
|
|
Sec. 2.17 “Purchase Date”
|
2
|
|
Sec. 2.18 “Purchase Period”
|
2
|
|
Sec. 2.19 “Purchase Price”
|
2
|
|
Sec. 2.20 “Stock”
|
2
|
|
Sec. 2.21 “Subsidiary”
|
3
|
|
ARTICLE III
ADMISSION TO PARTICIPATION
|
||
Sec. 3.01
Initial Participation
|
3
|
|
Sec. 3.02
Discontinuance of Participation
|
3
|
|
Sec. 3.03
Readmission to Participation
|
3
|
|
Sec. 3.04
Limitation on Participation
|
3
|
|
ARTICLE IV
STOCK PURCHASE
|
||
Sec. 4.01
Reservation of Shares
|
3
|
|
Sec. 4.02
Limitation on Shares Available
|
4
|
Sec. 4.03
Purchase Price of Shares
|
4
|
|
Sec. 4.04
Exercise of Purchase Privilege
|
4
|
|
Sec. 4.05
Payroll Deductions
|
4
|
|
Sec. 4.06
Company Matching Contributions
|
4
|
|
Sec. 4.07
Payment for Stock
|
5
|
|
Sec. 4.08
Share Ownership; Issuance of Certificates
|
5
|
|
Sec. 4.09
Distribution of Shares of Stock
|
6
|
|
ARTICLE V
SPECIAL ADJUSTMENTS
|
||
Sec. 5.01
Shares Unavailable
|
6
|
|
Sec. 5.02
Adjustments for in Case of Changes Affecting Stock
|
6
|
|
Sec. 5.03
Effect of Certain Transactions
|
6
|
|
ARTICLE VI
MISCELLANEOUS
|
||
Sec. 6.01
Non-Alienation
|
7
|
|
Sec. 6.02
Administrative Costs
|
7
|
|
Sec. 6.03
Committee
|
7
|
|
Sec. 6.04
Withholding of Taxes
|
7
|
|
Sec. 6.05
Amendment of the Plan
|
8
|
|
Sec. 6.06
Expiration and Termination of the Plan
|
8
|
|
Sec. 6.07
Repurchase of Stock
|
8
|
|
Sec. 6.08
Notice
|
8
|
|
Sec. 6.09
Government Regulation
|
8
|
|
Sec. 6.10
Headings, Captions, Gender
|
8
|
|
Sec. 6.11
Severability of Provisions, Prevailing Law
|
8
|
I.
|
Covered Officers/Purpose of Code
|
|
·
|
Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
|
·
|
Full, fair, accurate, timely, and understandable disclosure in reports and documents that the Adviser files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by, or on behalf of, the Adviser;
|
|
·
|
Compliance with applicable governmental laws, rules and regulations;
|
|
·
|
The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and
|
|
·
|
Accountability for adherence to the Code.
|
II.
|
Covered Officers Should Ethically Handle Actual and Apparent Conflicts of Interest
|
|
·
|
Not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Adviser whereby the Covered Officer would benefit personally to the detriment of the Adviser;
|
|
·
|
Not cause the Adviser to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Adviser; and
|
|
·
|
Not use material non-public knowledge of portfolio transactions made or contemplated transaction for the Adviser to trade personally or cause others to trade personally in contemplation of the market effect of such transactions
|
|
·
|
Service as a director on the board of any public company;
|
|
·
|
The receipt of any non-nominal gifts;
|
|
·
|
The receipt of any entertainment from any company with which the Adviser has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;
|
|
·
|
Any ownership interest in, or any consulting or employment relationship with, any of the Adviser’s service providers, other than the Adviser, principal underwriter, administrator, or any affiliated person thereof; and
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·
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A direct or indirect financial interest in commissions, transaction charges, or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.
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III.
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Disclosure and Compliance
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·
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Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Adviser;
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·
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Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Adviser to others, whether within or outside the Adviser, including to the Adviser’s board of directors (“Board”) and auditors, and to governmental regulators and self-regulatory organizations;
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·
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Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Adviser files with, or submits to, the SEC and in other public communications made by, or on behalf of, the Adviser; and
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·
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It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules, and regulations.
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IV.
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Reporting and Accountability
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|
·
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Upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read, and understands the Code;
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·
|
Annually thereafter affirm to the Board that he has complied with the requirements of the Code;
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·
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Not retaliate against any other Covered Officer, other officer of the Adviser, any officer of the Funds, or any of their affiliated persons for reports of potential violations that are made in good faith; and
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|
·
|
Notify the Adviser’s General Counsel promptly if he knows of any violation of this Code. Failure to do so is itself a violation of this Code.
|
|
·
|
The Adviser’s General Counsel will take all appropriate action to investigate any reported potential violations;
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|
·
|
If, after such investigation, the General Counsel believes that no violation has occurred, the General Counsel is not required to take any further action;
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|
·
|
Any matter that the General Counsel believes is a violation will be reported to the Independent Directors;
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|
·
|
If the Independent Directors concur that a violation has occurred, they will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures, or a recommendation to dismiss the Covered Officer;
|
|
·
|
The Independent Directors will be responsible for granting waivers, as appropriate; and
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|
·
|
Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.
|
V.
|
Other Policies and Procedures
|
VI.
|
Amendments
|
VII.
|
Confidentiality
|
VIII.
|
Internal Use
|
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:
|
May 12, 2016
|
/s/ Frank E. Holmes
|
|
Frank E. Holmes
|
|||
Chief Executive Officer
|
Date:
|
May 12, 2016
|
/s/ Lisa C. Callicotte
|
|
Lisa C. Callicotte
|
|||
Chief Financial Officer
|