Note 16 - Related Party Transactions

12 Months Ended

Jun. 30, 2026

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, 2026, and 2025, the Company held investments in USGIF, funds it advises, with a fair value of $9.7 million and $10.5 million, respectively. These investments are included in investments in equity securities at fair value on the Consolidated Balance Sheets. During fiscal 2026, the Company redeemed $800,000 of its USGIF investments and recognized $5,000 of net realized losses. No redemptions were made during fiscal 2025. The Company recorded income from capital gain distributions and dividends on its USGIF investments of $351,000 and $406,000 for fiscal years 2026 and 2025, respectively.

As of June 30, 2026, and 2025, the Company also held investments in U.S. Global ETF clients, funds it advises, with a fair value of $45,000 and $32,000, respectively. These investments are included in investments in equity securities at fair value on the Consolidated Balance Sheets. There were no transactions made in U.S. Global ETF clients during fiscal 2026. During the fiscal 2025, the Company purchased $109,000, sold $60,000, and recognized $19,000 of net realized losses on its investments in U.S. Global ETF clients.

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, 2026, and 2025, the Company had $884,000 and $683,000, respectively, of receivables from fund clients included in accounts and other receivables on the Consolidated Balance Sheets.

HIVE Digital Technologies Ltd. (“HIVE”)

As of June 30, 2026, and 2025, the Company held 15,000 common shares of HIVE with a fair value of approximately $55,000, and $27,000, respectively. The HIVE common shares were purchased for $41,000 in fiscal 2025 and represented less than 1.0 percent ownership as of June 30, 2026. Additionally, as of June 30, 2025, the Company held HIVE convertible debentures with a fair value of approximately $1.6 million. The remaining principal amount of the HIVE convertible debentures was paid in full in December 2025. During fiscal years 2026 and 2025, the Company received principal payments of $2.3 million in each year, recorded debenture interest income of $81,000 and $457,000, respectively, and recognized realized gains on debt securities of $108,000 and $610,000, respectively. See Note 3, Investments, for additional information.

The Company earned other income from HIVE of $207,000 and $218,000 for consulting services during fiscal years 2026 and 2025, respectively. The Company also earned lease income from HIVE of $19,000 and $10,000 during fiscal years 2026 and 2025, respectively, under a lease agreement for certain areas of the Company’s office building. The lease terms were determined to be consistent with market rates.

As of June 30, 2026, accounts and other receivables included approximately $350,000 due from HIVE for reimbursable out-of-pocket expenses. As of June 30, 2025, amounts due from HIVE included $750,000 of investment principal repayments and approximately $271,000 of other receivables included within accounts and other receivables, a portion of which related to accrued interest. No allowance for credit losses was recorded on HIVE receivables as of June 30, 2026, or 2025.

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 2026 and 2025. Mr. Holmes also held shares, options, and restricted stock units of HIVE as of June 30, 2026, and previously served as Interim Chief Executive Officer of HIVE from August 2018 through January 2023.

The Sonar Company (“Sonar”)

The Company held an investment in The Sonar Company (“Sonar”), representing approximately 2.8 percent ownership as of June 30, 2026. The investment had a carrying value of zero as of June 30, 2026, and 2025. During fiscal year 2025, the Company recorded an impairment charge that reduced the carrying value to zero and recognized a realized loss of $175,000.

 

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.