Tue, Sep 10, 9:25 PM (101 days ago)
U.S. Global Investors, Inc. reported a significant decline in financial performance for the fiscal year ending June 30, 2024, with total assets under management (AUM) falling to $1.56 billion from $2.37 billion in 2023, a decrease of 34.1%. This drop was largely attributed to outflows from the U.S. Global Jets ETF, which accounted for a substantial portion of the firm's revenue. Operating revenues decreased by 27.1% to approximately $10.98 million, primarily due to lower advisory fees from both ETFs and the U.S. Global Investors Funds (USGIF). Net income declined to $1.33 million ($0.09 per share) from $3.15 million ($0.22 per share) in the previous year. Operating expenses remained relatively stable. The company faces ongoing risks, including market volatility, regulatory compliance challenges, and dependency on a limited number of funds for revenue. The Board has authorized a monthly dividend of $0.0075 per share. Future outlook remains cautious, with management emphasizing the need for effective risk management amidst economic uncertainties. Notably, a material weakness in internal control over financial reporting was identified, prompting ongoing remediation efforts.