Note 15 - Financial Information by Business Segment

12 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Segment Reporting [Text Block]

NOTE 15. FINANCIAL INFORMATION BY BUSINESS SEGMENT

The Company manages the following business segments:

1. Investment management services, by which the Company offers, to USGIF and ETF clients, a range of investment management products and services to meet the needs of individual and institutional investors; and

2. Corporate investments, through which the Company invests for its own account in an effort to add growth and value to its cash position.

These segments are managed separately. The Company’s segment information is prepared on the same basis that management uses to review the financial information for operational and investment decision-making purposes. All segment accounting policies are the same as those described in the summary of significant accounting policies.

The Company's Chief Executive Officer, serving as the Chief Operating Decision Maker ("CODM"), evaluates the performance of the Investment Management Services segment based on segment profit (loss), which is calculated as operating revenues less other operating expenses. Other operating expenses used in the calculation include employee compensation and benefits, general and administrative expenses, and sales and marketing costs, which includes advertising, sales and promotion expenses, and prospectus and fulfillment expenses. Segment profit (loss) is considered by the CODM in evaluating resource allocation decisions together with the Company's overall capital needs and strategic objectives. Resource allocation decisions are not based solely on segment results for any particular reporting period and reflect the facts and circumstances existing at the time.

The CODM evaluates the performance of the Company’s Corporate Investments segment separately from the Investment Management Services segment based on net investment income (loss). The Corporate Investments segment does not include any allocated company expenses. In allocating capital to the segment, the CODM considers liquidity needs, market conditions, capital preservation objectives, and expected returns on available investment opportunities. The relative weight assigned to these considerations may vary based on the facts and circumstances existing at the time.

The following schedule details total revenues, income, and gross identifiable assets by business segment:

	Investment
	Management			Corporate
(dollars in thousands)	Services			Investments		Total
Year Ended June 30, 2026
Operating revenues	$	10,251		$	-	$	10,251
Net investment income (loss)		-			4,148		4,148
		10,251			4,148		14,399
Other operating expenses		10,806			-		10,806
Segment profit (loss)	$	(555	)	$	4,148	$	3,593
Reconciliation of segment profit (loss)
Other income (loss)						$	339
Depreciation							(42	)
Interest							(6	)
Income (loss) before income taxes						$	3,884
Gross identifiable assets at June 30, 2026	$	24,726		$	21,847	$	46,573
Deferred tax asset							1,461
Consolidated total assets at June 30, 2026						$	48,034
Year Ended June 30, 2025
Operating revenues	$	8,452		$	-	$	8,452
Net investment income (loss)		-			2,393		2,393
		8,452			2,393		10,845
Other operating expenses		11,376			-		11,376
Segment profit (loss)	$	(2,924	)	$	2,393	$	(531	)
Reconciliation of segment profit (loss)
Other income (loss)						$	331
Depreciation							(61	)
Interest							(1	)
Income (loss) before income taxes						$	(262	)
Gross identifiable assets at June 30, 2025	$	26,134		$	20,662	$	46,796
Deferred tax asset							1,268
Consolidated total assets at June 30, 2025						$	48,064

Operating revenues from investment management services include revenues from ETF clients of $6.2 million and $6.6 million in fiscal years 2026 and 2025, respectively. Operating revenues from investment management services also include revenues from USGIF of $4.1 million and $1.8 million in fiscal years 2026 and 2025, respectively.