Note 4 - Investment Management and Other Fees

6 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Investment Management and Other Fees [Text Block]

NOTE 4. INVESTMENT MANAGEMENT AND OTHER FEES

The following table presents operating revenues disaggregated by performance obligation.

	Six Months Ended						Three Months Ended
	December 31,						December 31,
(dollars in thousands)	2023			2022			2023			2022
ETF advisory fees	$	5,171		$	7,218		$	2,462		$	3,305
USGIF advisory fees		965			1,135			459			525
USGIF performance fees received (paid)		(243	)		(281	)		(131	)		(135	)
Total Advisory Fees		5,893			8,072			2,790			3,695
USGIF administrative services fees		58			68			28			33
Total Operating Revenue	$	5,951		$	8,140		$	2,818		$	3,728

The Company serves as investment advisor to three U.S.-based exchange-traded funds (ETFs): U.S. Global Jets ETF (ticker JETS), U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), and U.S. Global Sea to Sky Cargo ETF (ticker SEA). The Company receives a unitary management fee of 0.60 percent of average net assets of the ETFs, and has agreed to bear all expenses of the ETFs, except the U.S. Global Sea to Sky Cargo ETF ("SEA"). The Company has agreed to contractually limit the expenses of SEA through April 2024. The aggregate fees waived, and expenses borne by the Company for SEA were $43,000 and $78,000 for the three and six months ended December 31, 2023, respectively, and $0 and $47,000 and for the three and six months ended December 31, 2022, respectively. The Company also serves as investment advisor to one European-based ETF, the U.S. Global Jets UCITS ETF. The Company receives a unitary management fee of 0.65 percent of average net assets and has agreed to bear all expenses of the ETF.

The Company serves as investment adviser to USGIF and receives a fee based on a specified percentage of average assets under management. The advisory agreement for the equity funds within USGIF provides for a base advisory 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.

The Company has agreed to contractually limit the expenses of the Near-Term Tax Free Fund and the Global Luxury Goods Fund through April 2024. The Company has voluntarily waived or reduced its fees and/or agreed to pay expenses on the remaining USGIF funds. These caps will continue on a voluntary basis at the Company’s discretion. The aggregate fees waived and expenses borne by the Company for USGIF were $192,000 and $445,000 for the three and six months ended December 31, 2023, respectively, and $303,000 and $523,000 for the three and six months ended December 31, 2022, respectively. Management cannot predict the impact of future waivers due to the number of variables and the range of potential outcomes.

The Company receives administrative service fees from USGIF based on an annual rate of 0.05 percent on the average daily net assets of each fund.

As of December 31, 2023, the Company had receivables from fund clients of $1.1 million, of which $944,000 was from the ETFs and $115,000 was from USGIF. As of June 30, 2023, the Company had $1.1 million in receivables from fund clients, of which $1.0 million was from ETFs and $126,000 was from USGIF. There was no allowance for credit losses related to receivables as of December 31, 2023, or June 30, 2023.