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DISCONTINUED OPERATIONS | 6 Months Ended
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Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract] |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 2. DISCONTINUED OPERATIONS USCAN entered into a binding letter of intent dated December 30, 2019, with Galileo whereby Galileo, pursuant to a capital restructuring, will repurchase all of its common shares owned by USCAN for $1.0 million (Canadian). The transaction is subject to the approval of Canadian securities regulatory authorities and to the satisfaction of other closing conditions. It is anticipated that the transaction will close on or about March 2, 2020. After the transaction, the Company will have no continuing involvement with the operations of Galileo, except for an equity method investment in a fund managed by Galileo. See further information on this equity method investment in Note 3, Investments. The results of Galileo are reflected as “discontinued operations” in the Consolidated Statements of Operations and are therefore, excluded from continuing operations results. Comparative periods shown in the Consolidated Financial Statements have been adjusted to conform to this presentation. Operations of Galileo had previously been presented as the separate business segment of Investment Management Services – Canada. The components of assets and liabilities classified as discontinued operations were as follows:
(dollars in thousands) |  | December 31, 2019 |  |  | June 30, 2019 |
Assets |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,078 |  |  | $ | 1,482 |
Accounts and other receivables |  |  | 67 |  |  |  | 200 |
Prepaid expenses |  |  | 47 |  |  |  | 52 |
Net property and equipment |  |  | 33 |  |  |  | 38 |
Right of use assets |  |  | 207 |  |  |  | - |
Other assets, non-current |  |  | 8 |  |  |  | 8 |
Total assets held related to discontinued operations |  | $ | 1,440 |  |  | $ | 1,780 |
Liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | 42 |  |  | $ | 135 |
Accrued compensation and related costs |  |  | - |  |  |  | 84 |
Lease liability, short-term |  |  | 54 |  |  |  | - |
Other accrued expenses |  |  | 142 |  |  |  | 262 |
Lease liability, long-term |  |  | 156 |  |  |  | - |
Total liabilities held related to discontinued operations |  | $ | 394 |  |  | $ | 481 |
The components of income (loss) from discontinued operations were as follows:
|  | Six Months Ended December 31, |  |  | Three Months Ended December 31, |
(dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Advisory fees |  | $ | 185 |  |  | $ | 1,185 |  |  | $ | 85 |  |  | $ | 1,005 |
|  |  | 185 |  |  |  | 1,185 |  |  |  | 85 |  |  |  | 1,005 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  |  | 54 |  |  |  | 301 |  |  |  | 26 |  |  |  | 185 |
General and administrative |  |  | 383 |  |  |  | 581 |  |  |  | 166 |  |  |  | 284 |
Depreciation and amortization |  |  | 5 |  |  |  | 5 |  |  |  | 3 |  |  |  | 3 |
|  |  | 442 |  |  |  | 887 |  |  |  | 195 |  |  |  | 472 |
Other Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income (loss) |  |  | 3 |  |  |  | 30 |  |  |  | (7 | ) |  |  | 36 |
Other income |  |  | 1 |  |  |  | 6 |  |  |  | - |  |  |  | 2 |
|  |  | 4 |  |  |  | 36 |  |  |  | (7 | ) |  |  | 38 |
Income (loss) from discontinued operations of investment management services in Canada before income taxes |  |  | (253 | ) |  |  | 334 |  |  |  | (117 | ) |  |  | 571 |
Tax expense |  |  | - |  |  |  | 11 |  |  |  | - |  |  |  | 11 |
Income (loss) from discontinued operations of investment management services in Canada |  |  | (253 | ) |  |  | 323 |  |  |  | (117 | ) |  |  | 560 |
Less: net income (loss) attributable to non-controlling interest from discontinued operations |  |  | (88 | ) |  |  | 113 |  |  |  | (40 | ) |  |  | 196 |
Net income (loss) attributable to U.S. Global Investors, Inc. from discontinued operations of investment management services in Canada |  | $ | (165 | ) |  | $ | 210 |  |  | $ | (77 | ) |  | $ | 364 |
Galileo provides advisory services for clients in Canada and receives advisory fees based on the net asset values of the clients. Galileo may also receive performance fees from certain clients when market appreciation or realized net gains exceeds established benchmarks. Performance fees, which are included in advisory fees in the table above, are recognized when it is determined that they are no longer probable of significant reversal. Galileo recorded no performance fees from these clients for the three and six months ended December 31, 2019, and $870,000 from these clients for three and six months ended December 31, 2018. Prior to November 2018, performance fees were typically recognized on an annual basis at calendar year-end. Due to changes in funds managed and new agreements in the second quarter of fiscal year 2019, these fees are recognized on a quarterly basis. The receipt of performance fees in the future is uncertain as the fees are dependent upon many factors, including market conditions. Galileo may, at its discretion, waive and absorb some of its clients’ operating expenses. The amount of fund expenses waived and absorbed (recovered) was ($20,000) and $20,000 for the three and six months ended December 31, 2019, and $45,000 and $161,000 for the three and six months ended December 31, 2018, respectively. Galileo has leases for office equipment that expire in fiscal years 2023 and 2024 and for office facilities that expire in fiscal 2023. See further information on these leases in Note 7, Leases. Galileo files a separate tax return in Canada. Galileo has net operating loss carryovers of $737,000 expiring between fiscal years 2027 and 2039. At December 31, 2019, and June 30, 2019, a valuation allowance for Galileo of $257,000 and $183,000, respectively, was included to fully reserve for net operating loss carryovers, other carryovers and certain book/tax differences in the balance sheet.

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