Note 17 - Related Party Transactions

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE 17. RELATED PARTY TRANSACTIONS

On June 30, 2024, and 2023, the Company had $10.5 million and $12.4 million, respectively, at fair value invested in USGIF, funds the Company advised. These amounts were included in the Consolidated Balance Sheets as investments in equity securities at fair value. During the years ended June 30, 2024, and 2023, the Company redeemed investments for $2.0 million and $350,000, respectively. During the years ended June 30, 2024, and 2023, there was $71,000 and $13,000, respectively, of net realized losses on its investments in USGIF. The Company recorded $380,000 and $267,000 in income from capital gain distributions and dividends from USGIF investments in fiscal years 2024 and 2023, respectively.

The Company earned advisory and administrative services fees, as applicable, from the various funds for which it acts as investment adviser, as disclosed in Note 5. Receivables include amounts due from the funds for those fees and out-of-pocket expenses, net of amounts payable to the funds for expense reimbursements. As of June 30, 2024, and 2023, the Company had $772,000 and $1.1 million, respectively, of receivables from funds included in the Consolidated Balance Sheets within receivables.

The Company has various investments in HIVE that were valued at approximately $4.4 million and $7.3 million and as of June 30, 2024, and 2023, respectively. As discussed in Note 4, in January 2021, the Company purchased convertible securities in HIVE, and an unrealized gain was recognized in other comprehensive income (loss) for the convertible debentures, which is to be realized in net investment income (loss) ratably using the effective interest method until maturity, conversion, or other disposition. The warrants were recorded at the estimated fair value of $5.9 million on the purchase date, and upon expiration in January 2024, a realized loss of $5.9 million was recognized in net investment income (loss). During the fiscal year ended June 30, 2024, and 2023, $3.0 million in principal payments were received for the debentures, and $1.1 million and $1.7 million, respectively, was included in net investment income (loss) as realized gains on debt securities. The Company recorded $854,000 and $1.2 million in interest income from HIVE investments during the fiscal year ended June 30, 2024, and 2023, respectively. The Company earned other income from HIVE for consulting fees in the amount of $150,000 and $120,000 during the fiscal years ended June 30, 2024, and 2023, respectively. The Company had $207,000 and $43,000 of receivables from HIVE included in the Consolidated Balance Sheets within receivables as of June 30, 2024, and 2023, respectively. Frank Holmes, a director and Chief Executive Officer of the Company, is the executive chairman of HIVE, for which he received director fees from HIVE during fiscal years 2024 and 2023. Mr. Holmes held shares and options of HIVE at June 30, 2024, and 2023. From August 2018 through January 2023, Mr. Holmes was Interim CEO of HIVE.

As discussed in Note 4, the Company has an investment in Sonar that had a carrying value of approximately $362,000 at June 30, 2024, and 2023. The Company earned lease income from Sonar in the amount of $8,000 and $16,000 during the fiscal years ended  June 30, 2024, and 2023, respectively. Roy D. Terracina, Director and Vice Chairman of the Board of Directors for U.S. Global, has served as the CEO of Sonar since July 2021.