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Note 3 - Investment Management and Other Fees

3 Months Ended

Sep. 30, 2025

Investment Management and Other Fees [Text Block]

NOTE 3. INVESTMENT MANAGEMENT AND OTHER FEES

The following table presents operating revenues disaggregated by performance obligation.

	*Three Months Ended*
	*September 30,*
(dollars in thousands)	*2025*		*2024*
ETF advisory fees	$	1,524	$	1,764
USGIF advisory fees		685		466
USGIF performance fees received (paid)		-		(103	)
Total Advisory Fees		2,209		2,127
USGIF administrative services fees		42		30
Total Operating Revenue	$	2,251	$	2,157

The Company serves as investment advisor to four U.S.-based ETF clients: U.S. Global Jets ETF (ticker JETS), U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), U.S. Global Sea to Sky Cargo ETF (ticker SEA), and the U.S. Global Technology and Aerospace & Defense ETF (ticker WAR). The Company receives a unitary management fee of 0.60 percent of average net assets and has agreed to bear all expenses of the U.S.-based ETFs, except the U.S. Global Sea to Sky Cargo ETF ("SEA"). The Company has agreed to contractually limit the expenses of SEA through April 2026. For the three months ended September 30, 2025, and 2024, aggregate fees waived and expenses borne by the Company for SEA were $35,000 and $39,000, respectively, including waived fees of $14,000 and $10,000, respectively. The Company also serves as an investment advisor to one European-based ETF, The Travel UCITS ETF (ticker TRIP). The Company receives a unitary management fee of 0.69 percent of average net assets and has agreed to bear all expenses of the European-based ETF.

The Company serves as investment adviser to USGIF and earns a base management fee calculated as a specified percentage of average net assets under management. During fiscal year 2025, the Company also received performance fees, which were fulcrum fees consisting of a 0.25 percent upwards or downwards adjustment of the base management fee when there was a 5 percent or more performance difference between a fund’s performance and that of its designated benchmark index over the prior rolling 12 months. This performance adjustment began to be phased out during the fourth quarter of fiscal 2024 and ceased during the fourth quarter of fiscal 2025. During the phase-out period, the adjustment for the performance fee could only be adjusted downward.

The Company has agreed to contractually limit the expenses of the Funds except the U.S. Government Securities Ultra-Short Bond Fund through April 2026. The Company has voluntarily waived or reduced its fees and/or agreed to pay expenses on the U.S. Government Securities Ultra-Short Bond Fund. This cap will continue on a voluntary basis at the Company’s discretion. For the three months ended September 30, 2025, and 2024, aggregate fees waived and expenses borne by the Company for USGIF were $226,000 and $228,000, respectively, including waived fees of $170,000 and $183,000, respectively. USGIF revenue included on the Consolidated Statements of Operations is net of fee waivers. Management cannot predict the impact of future waivers due to the number of variables and the range of potential outcomes.

The Company receives administrative service fees from USGIF based on an annual rate of 0.05 percent on the average daily net assets of each fund.

As of September 30, 2025, the Company had $765,000 in receivables from fund clients, of which $514,000 was from the ETFs and $251,000 was from USGIF. As of June 30, 2025, the Company had $683,000 in receivables from fund clients, of which $494,000 was from the ETFs and $189,000 was from USGIF. There was no allowance for credit losses related to receivables as of September 30, 2025, or June 30, 2025.