FINANCIAL INFORMATION BY BUSINESS SEGMENT

12 Months Ended

Jun. 30, 2019

Segment Reporting Disclosure [Text Block]

NOTE 16. FINANCIAL INFORMATION BY BUSINESS SEGMENT

The Company manages the following business segments:

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

Investment management services - Canada, through which the Company owns a 65 percent controlling interest in Galileo, a privately held Toronto-based asset management firm which offers investment management products and services in Canada; and

Corporate investments, through which the Company invests for its own account in an effort to add growth and value to its cash position. Although the Company generates the majority of its revenues from its investment advisory segments, the Company holds a significant amount of its total assets in investments.

The following schedule details total revenues and income by business segment; certain amounts have been reclassified for comparative purposes:

(dollars in thousands)	Investment Management Services			Investment Management Services - Canada			Corporate Investments			Consolidated
Year ended June 30, 2019
Net operating revenues	$	3,459		$	1,458		$	-		$	4,917
Investment income (loss)	$	-		$	18		$	(1,582	)	$	(1,564	)
Income from equity method investments	$	-		$	-		$	23		$	23
Other income	$	47		$	42		$	-		$	89
Loss before income taxes	$	(2,444	)	$	(147	)	$	(1,825	)	$	(4,416	)
Depreciation and amortization	$	201		$	10		$	13		$	224
Capital expenditures	$	-		$	-		$	-		$	-
Gross identifiable assets at June 30, 2019	$	4,591		$	1,780		$	17,365		$	23,736
Deferred tax asset										$	-
Consolidated total assets at June 30, 2019										$	23,736
Year ended June 30, 2018
Net operating revenues	$	4,837		$	1,424		$	-		$	6,261
Investment income	$	-		$	21		$	1,483		$	1,504
Income from equity method investments	$	-		$	-		$	1,624		$	1,624
Other income	$	31		$	15		$	-		$	46
Income (loss) before income taxes	$	(1,941	)	$	97		$	2,730		$	886
Depreciation and amortization	$	229		$	12		$	-		$	241
Capital expenditures	$	-		$	-		$	-		$	-

Net operating revenues from investment management services include revenues from USGIF of $2.9 million and $4.1 million in fiscal years 2019 and 2018, respectively. Net operating revenues from investment management services also include operating revenues from ETF clients of $588,000 and $701,000 in fiscal years 2019 and 2018, respectively.

Net operating revenues from investment management services in Canada include revenues from Galileo funds of $1.5 million and $1.4 million in fiscal years 2019 and 2018, respectively.