Note 4 - Investment Management and Other Fees

12 Months Ended

Jun. 30, 2026

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:

	Year Ended June 30,
(dollars in thousands)	2026		2025
ETF advisory fees	$	6,192	$	6,642
USGIF advisory fees		3,840		1,930
USGIF performance fees earned (paid)		-		(247	)
Total Advisory Fees		10,032		8,325
USGIF administrative services fees		219		127
Total Operating Revenue	$	10,251	$	8,452

The Company serves as investment advisor to four U.S.-based ETF clients: U.S. Global Jets ETF (ticker JETS), U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), U.S. Global Sea to Sky Cargo ETF (ticker SEA), and the U.S. Global Technology and Aerospace & Defense ETF (ticker WAR). 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 U.S.-based 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 2027. For the years ended June 30, 2026, and 2025, total fee waivers and expenses borne by the Company for SEA were $124,000 and $143,000, respectively, including fee waivers of $63,000 and $39,000, respectively. The Company also serves as investment advisor to one European-based ETF, The Travel UCITS ETF (ticker TRIP). The Company receives a unitary management fee of 0.69 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 advisory fees consisting of a base management fee based on a specified percentage of net assets under management. During fiscal year 2025, the Company also received performance fees, which were fulcrum fees consisting of a 0.25 percent upwards or downwards adjustment of the base management fee when there was a 5 percent or more performance difference between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months. This performance adjustment began to be phased out during the fourth quarter of fiscal 2024 and ceased during the fourth quarter of fiscal 2025. During the phase-out period, the adjustment could only reduce advisory fees.

The Company has contractually agreed to limit fund expenses through April 2027, except for the U.S. Government Securities Ultra Short Bond Fund, for which fee waivers and expense reimbursements are voluntary and may be discontinued at the Company’s discretion. For the years ended June 30, 2026, and 2025, total fee waivers and expenses borne by the Company for USGIF were $744,000 and $973,000, respectively, including fee waivers $531,000 and $765,000, respectively. USGIF revenue included on the Consolidated Statements of Operations is net of fee waivers. 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 of average daily net assets of each fund.

As of  June 30, 2026, the Company had $884,000 in receivables from fund clients, of which $556,000 was from the ETFs and $328,000 was from USGIF, and as of June 30, 2025, the Company had $683,000 in receivables from fund clients, of which $494,000 was from the ETFs and $189,000 was from USGIF. There was no allowance for credit losses related to receivables as of June 30, 2026, and 2025.