RELATED PARTY TRANSACTIONS

6 Months Ended

Dec. 31, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 11. RELATED PARTY TRANSACTIONS

USCF Investments – Related Party Transactions

The funds managed by USCF LLC and USCF Advisers are considered related parties for financial accounting purposes. The Company’s fund management revenue, totaling $4.7 million and $5.0 million for the three months ended December 31, 2024 and 2023, respectively, and $9.3 million and $10.0 million for the six months ended December 31, 2024 and 2023, respectively, were earned from these related parties. Accounts receivable, totaling $1.5 million as of both December 31, 2024 and June 30, 2024, were owed from the funds that may be deemed related parties. USCF Investments, from time to time, provides initial seed capital investments in connection with the organization of ETP and ETF funds that USCF LLC manages. As of December 31, 2024 and June 30, 2024, the Company invested a total of $6.1 million and $7.5 million, respectively, in funds managed by USCF Advisers which are included in investments on the consolidated balance sheets. The Company owns 41% and 45% of the outstanding shares of or other interest in these funds as of December 31, 2024 and June 30, 2024, respectively. Included in interest and dividend income on the consolidated statements of operations are $1.0 million and $0.1 million for the three months ended December 31, 2024 and 2023, respectively, and $1.1 million and $0.2 million for the six months ended December 31, 2024 and 2023, respectively, of dividends earned from these related party investments.

USCF Advisers is contractually obligated to pay license fees up to $0.9 million to an affiliated entity related to intellectual property rights for two of the funds during fiscal 2025 and 2026. The amount of license fee accrued as an expense during the three months ended December 31, 2024 and 2023 was $0.2 million and $0.1 million, respectively, and during the six months ended December 31, 2024 and 2023 was $0.5 million and $0.2 million, respectively.

Refer to Note 8. Notes Payable for a description of a related party transaction involving the Nicholas and Melinda Gerber Living Trust (“Gerber Trust”), of which our CEO is a trustee, pursuant to which, in connection with the Company’s recent debt financing transaction, the Gerber Trust provided to the holder of the note issued in the financing transaction a guaranty of the Company’s performance under the note and, as security, a pledge of all of the shares of the Company’s common stock owned by the Gerber Trust.