Note 16 - Related Party Transactions

12 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE 16. RELATED PARTY TRANSACTIONS

U.S. Global Investors Funds (“USGIF” or the “Fund(s)”) and U.S. Global exchange-traded fund (“ETF”) clients

As of  June 30, 2025, and 2024, the Company held investments in USGIF, funds it advises, with a fair value of $10.5 million at each date. These investments are included in investments in equity securities at fair value on the Consolidated Balance Sheets. During the year ended June 30, 2024, the Company redeemed $2.0 million of its USGIF investments and recognized $71,000 of net realized losses. No redemptions were made during the year ended  June 30, 2025. The Company recorded income from capital gain distributions and dividends on its USGIF investments of $406,000 and $380,000 for the fiscal years ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the Company also held investments in U.S. Global ETF clients, funds it advises, with a fair value of $32,000. These investments are included in investments in equity securities at fair value on the Consolidated Balance Sheets. During the year ended June 30, 2025, the Company purchased $109,000 and sold $60,000 of its investments in U.S. Global ETF clients and recognized $19,000 of net realized losses. There were no investments held or transactions made in U.S. Global ETF clients during the year ended and as of June 30, 2024.

The Company earned advisory and administrative services fees from the various funds for which it acts as investment adviser, as disclosed in Note 4. Receivables include amounts due from these funds for such fees and reimbursable out-of-pocket expenses, net of amounts payable to the funds for expense reimbursements. As of June 30, 2025, and 2024, the Company had $683,000 and $772,000, respectively, of receivables from funds included in accounts and other receivables on the Consolidated Balance Sheets.

HIVE Digital Technologies Ltd. (“HIVE”)

As of June 30, 2025, and 2024, the Company held investments in HIVE Digital Technologies Ltd. (“HIVE”) with a fair value of approximately $1.6 million and $4.4 million, respectively. In January 2021, the Company purchased convertible debentures and warrants in HIVE (see Note 3, Investments). The debentures are accounted for using the effective interest method, with unrealized gains recorded in other comprehensive income (loss) and recognized in net investment income (loss) over time until maturity, conversion, or other disposition. The warrants were recorded at their estimated fair value of $5.9 million at the purchase date and expired in January 2024. Upon expiration, the Company recognized a realized loss of $5.9 million in net investment income (loss). During the fiscal years ended June 30, 2025, and 2024, the Company received principal payments of $2.3 million and $3.0 million, respectively, on the HIVE debentures and recognized realized gains on debt securities of $610,000 and $1.1 million, respectively. Debenture interest income of $457,000 and $854,000 was recorded during fiscal years 2025 and 2024, respectively. During the year ended  June 30, 2025, the Company also purchased HIVE common shares for $41,000, representing less than 1.0 percent ownership.

The Company earned other income from HIVE of $218,000 and $150,000 for consulting services during the fiscal years ended June 30, 2025, and 2024, respectively. In addition, beginning in fiscal 2025, the Company has a lease agreement with HIVE for certain areas of the Company’s office building. The terms of the lease were determined to be consistent with market rates. The Company earned lease income of $10,000 from HIVE during fiscal year 2025.

As of June 30, 2025, the Company had $1.0 million of receivables from HIVE included in the Consolidated Balance Sheets, consisting of $271,000 in accounts and other receivables and $750,000 related to investment principal repayments. As of June 30, 2024, receivables from HIVE totaled $207,000, which were included in accounts and other receivables. No receivables related to the convertible debentures were outstanding at June 30, 2024.

Frank Holmes, the Company’s Chief Executive Officer and a director, serves as Executive Chairman of HIVE and received director fees from HIVE during fiscal years 2025 and 2024. Mr. Holmes also held shares and options of HIVE as of June 30, 2025 and 2024 and previously served as Interim Chief Executive Officer of HIVE from August 2018 through January 2023.

The Sonar Company (“Sonar”)

As discussed in Note 3, Investments, the Company held an investment in The Sonar Company (“Sonar”) representing approximately 2.8 percent ownership as of June 30, 2025. The investment had a carrying value of approximately $362,000 as of June 30, 2024. Based on the prevailing facts and circumstances evaluated as of June 30, 2025, the Company concluded that an impairment charge was required, reduced the carrying value to zero, and recognized a realized loss of $175,000. The Company earned lease income from Sonar of $8,000 during the fiscal year ended June 30, 2024, and none during the fiscal year ended June 30, 2025. 

Roy D. Terracina, the Company’s Director and Vice Chairman of the Board of Directors, has served as Chief Executive Officer of Sonar since July 2021.