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DISCONTINUED OPERATIONS | 9 Months Ended
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Mar. 31, 2020
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, agreed to repurchase all of its common shares owned by USCAN for $1.0 million (Canadian). The transaction was subject to the approval of Canadian securities regulatory authorities and to the satisfaction of other closing conditions. The transaction closed effective March 2, 2020. Proceeds of approximately $746,000 were received (the equivalent of $1.0 million Canadian on the closing date of sale), and a realized gain of approximately $151,000 was recorded. In addition, approximately $228,000 in foreign currency loss was released from accumulated other comprehensive income (loss) into current year loss upon closing the sale. After the transaction, the Company has not and will not have 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 through the March 2, 2020, closing date 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) |  | March 31, 2020 |  |  | June 30, 2019 |
Assets |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | - |  |  | $ | 1,482 |
Accounts and other receivables |  |  | - |  |  |  | 200 |
Prepaid expenses |  |  | - |  |  |  | 52 |
Net Property and Equipment |  |  | - |  |  |  | 38 |
Other assets, non-current |  |  | - |  |  |  | 8 |
Total assets held related to discontinued operations |  | $ | - |  |  | $ | 1,780 |
Liabilities |  |  |  |  |  |  |  |
Accounts payable |  | $ | - |  |  | $ | 135 |
Accrued compensation and related costs |  |  | - |  |  |  | 84 |
Other accrued expenses |  |  | - |  |  |  | 262 |
Total liabilities held related to discontinued operations |  | $ | - |  |  | $ | 481 |
The components of income (loss) from discontinued operations were as follows. Note that amounts in the current fiscal year are through the March 2, 2020, closing date of sale.
|  | Nine Months Ended March 31, |  |  | Three Months Ended March 31, |
(dollars in thousands) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Advisory fees |  | $ | 235 |  |  | $ | 1,299 |  |  | $ | 50 |  |  | $ | 114 |
|  |  | 235 |  |  |  | 1,299 |  |  |  | 50 |  |  |  | 114 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee compensation and benefits |  |  | 77 |  |  |  | 395 |  |  |  | 23 |  |  |  | 94 |
General and administrative |  |  | 508 |  |  |  | 810 |  |  |  | 125 |  |  |  | 229 |
Depreciation and amortization |  |  | 6 |  |  |  | 7 |  |  |  | 1 |  |  |  | 2 |
|  |  | 591 |  |  |  | 1,212 |  |  |  | 149 |  |  |  | 325 |
Other Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment income (loss) |  |  | 24 |  |  |  | 23 |  |  |  | 21 |  |  |  | (7 | )
Other income (loss) |  |  | (6 | ) |  |  | 39 |  |  |  | (7 | ) |  |  | 33 |
|  |  | 18 |  |  |  | 62 |  |  |  | 14 |  |  |  | 26 |
Income (loss) from discontinued operations of investment management services in Canada before income taxes |  |  | (338 | ) |  |  | 149 |  |  |  | (85 | ) |  |  | (185 | )
Tax benefit |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (11 | )
Income (loss) from discontinued operations of investment management services in Canada |  |  | (338 | ) |  |  | 149 |  |  |  | (85 | ) |  |  | (174 | )
Less: net income (loss) attributable to non-controlling interest from discontinued operations |  |  | (118 | ) |  |  | 52 |  |  |  | (30 | ) |  |  | (61 | )
Net income (loss) attributable to U.S. Global Investors, Inc. from discontinued operations of investment management services in Canada |  | $ | (220 | ) |  | $ | 97 |  |  | $ | (55 | ) |  | $ | (113 | )
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 were included in advisory fees in the table above, were recognized when it was determined that they were no longer probable of significant reversal. Galileo recorded no performance fees from these clients for the three or nine months ended March 31, 2020, or the three months ended March 31, 2019. Galileo recorded performance fees of $870,000 for the nine months ended March 31, 2019. 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, the recognition of these fees changed to a quarterly basis. Galileo may, at its discretion, waive and absorb some of its clients’ operating expenses. The amount of fund expenses waived and absorbed was $19,000 and $39,000 for the three and nine months ended March 31, 2020, and $66,000 and $227,000 for the three and nine months ended March 31, 2019, respectively. Galileo had leases for office equipment and facilities. See further information on these leases in Note 7, Leases. Galileo files a separate tax return in Canada. At June 30, 2019, a valuation allowance for Galileo of $183,000 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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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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