Q2 2025 U.S. Global Investors Inc Earnings Call
D and will be muted throughout the meeting.
The presenters for today's program.
U S Global Investors', CEO, and Chief Investment Officer, Lisa Callicott, Chief Financial Officer, and myself, Holly Schoenfeldt director of marketing.
Speaker Change: On slide number three.
Speaker Change: During this webcast we may make forward looking statements about our relative business outlook any forward looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and <unk>.
Speaker Change: Bonnie Garmin 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today and and forward looking statements any such statements are made as of today and U S. Global accepts no obligation to update them in the future.
Speaker Change: On slide number four.
As always to our loyal shareholders. We invite you to E mail us at info at <unk> Dot Com and we would love to send you one of our hats theme here. So just shoot it the message with your mailing address and we're happy to get you. Some U S. G I.
Speaker Change: Alright, now on slide number five I will briefly review our company.
Speaker Change: U S. Global investors is an innovative investment manager with vast experience in global markets and specialized sectors.
Speaker Change: We're well known for expertise in Goldman precious metal commodities, the global travel industry and luxury goods.
Speaker Change: The company was originally founded as an investment club, becoming a registered investment adviser in 1968.
Speaker Change: Company has a long standing history of global investing and launching first of their kind investment products, including the first no load Gold fund.
Speaker Change: Finally, we are pioneers in smart beta 2.0 matic products, our investment team combined stock picking and portfolio construction to develop new products with thousands of hours of back testing and fine tuning on a quarterly basis.
CEO: Moving on to slide number six this is a graphic we always like to begin our presentations with the DNA of volatility. It acts as a reminder to investors about how various asset classes, especially the ones that we invest in can move up or down over time, and this is where I want to hand, the presentation over to CEO.
Speaker Change: And CIO, Frank Holmes to dive in a little more on this and give us a macro overview of the last quarter Frank.
Frank Holmes: Thank you Holly.
Speaker Change: And welcome.
Speaker Change: Shareholders and thank you for your loyalty and support.
Speaker Change: Before going into the details of the presentation.
Speaker Change: And a recap of where I can give you more granularity with Liza caller collars CFO I'm going to go through and start.
Speaker Change: Basic disclosure.
Speaker Change: On volatility because volatility is so important to understand capital markets in each asset class a stock has its own DNA of volatility as you can see here the S&P and what that means is one sigma is that its a non event, 68% or 70% of the time around at all.
Speaker Change: <unk> for the market to go up or down 1% of the time in over 10 days was 3% goal is of both the same as the S&P 500, I can share with you that 25 years ago. It was always substantially greater the daily volatility the 10 day volatility of bullion and the S&P, but now they have one.
Speaker Change: And grow itself used to have a much higher daily volatility.
Speaker Change: The trade off.
Speaker Change: Of the crypto and three for that use of trade the volatility of the gold funds because in Brazil, and our investments.
Speaker Change: The creation of high digital.
Speaker Change: And owning a big share position scene.
Speaker Change: It seemed to really tweak to the volatility and then came along with Jetson Jetson group. So it's important to see what assets or investments are they drive the revenue and also drive that volatility.
Speaker Change: Dow Jones asset managers index is the same as the S&P, but over 10 days is more it's plus or minus 4%.
Speaker Change: And oil on a daily basis is much more volatile and jets as you can see.
Speaker Change: Is very strongly correlated with the price of oil.
Speaker Change: And that's because oil is the biggest line item for costs.
Speaker Change: Falling oil prices last year was extremely bullish for the airlines industry and most analyst.
Speaker Change: Basically had a negative cautious cautious throughout the whole year and.
Speaker Change: The ETF was up.
Speaker Change: 30, some odd percent.
Speaker Change: And the certain airlines, we own like United.
Speaker Change: It was up 130% so it's recognizing this DNA of volatility.
Speaker Change: What moves.
Speaker Change: Grow up in Dallas, I'm happy to share with you that grows volatility over 10 days is lesser in the Dow Jones asset managers index, and Thats, probably because of our total shareholder yield and that is the amount of a stock buying back that were doing especially in the down days next please.
Speaker Change: I want to thank the long term investors in particular occurred capital or experts in micro cap stocks.
Speaker Change: Sure.
Speaker Change: Fund group.
Speaker Change: And then vanguard.
Speaker Change: This shows up in there.
Speaker Change: Index.
Speaker Change: Asset management and Microcap stocks next please.
Speaker Change: So on the CEO and Chief investment Officer, and line of about 19% of all shares outstanding.
Speaker Change: We have approximately 99% of the body could fall in the voting control is really a structure to protect investors, but the fund the investors. So that if there is a change of control of the investment advisor all of the fund shareholders up to know and so that basically says that they are.
Speaker Change: Grows shares trade more than 25% of shareholders in the course of a particular year that you'd always be setting or proxies to the fund shareholders. So it was always rupture.
Speaker Change: I would have the body control or a family Trust has the voting control like we have let's say with Franklin funds next please.
Speaker Change: Strategy and tactics.
Speaker Change: Our strategy is to create dramatic products that are sustainable and this is using the smart beta two <unk> strategy. This requires rigorous back testing and ongoing detailed analysis of data graphs. When you pull the data every quarter, there's always glitches in the data pool and so you do have to sort of.
Speaker Change: Active way of looking at these particular products.
Speaker Change: And it does show itself, that's a very systematic way of running money managing money, especially as the <unk> products.
Speaker Change: And I'm happy to say that when we've gone to treat these products up against the index.
Speaker Change: Over time, they have shown order performance.
Speaker Change: U S global investors our mission is to make people feel financially IP and secure their wealth is consistently growing and that really comes into.
Speaker Change: Our investors we have two types, we have a trader that comes in and out on technical factors and then we have a person as an asset allocator.
Speaker Change: <unk>.
Speaker Change: Buys or particular products strategically buy back stock as a company. We believe we are deeply undervalued and we have a discipline algorithm for flattened down days, we managed to preserve cash for future growth opportunities and market corrections were always look at M&A activity to acquire fund assets and <unk>.
Speaker Change: <unk> subscriber base at <unk> is really important from a marketing point of view because you can put a net present value on the number of borrowers you have.
Speaker Change: Youtube you have a million borrowers you can get revenue sharing.
Speaker Change: Which can be up to a million dollars a year. So that is a very important part metric for marketing is to show how the subscriber base is growing and it's been growing over the past year next please.
Speaker Change: So a big part is this board of directors and the hardest part was to go out and actually finding someone.
Speaker Change: That had detailed experience of running the capital market's understands what they call mutual funds and Etfs are under what they call. The 40 Act, Oxford investment advisors were at 1940, but a public company.
Speaker Change: As those rules or regulations or call. The SEC <unk> hundred 34 Act. So it's really a challenge to find someone that has that tacit knowledge and that explicit knowledge of managing a business in both.
Speaker Change: Are those highly regulatory.
Speaker Change: Rulemaking, and so Bobby Dunkin' a restart too.
Speaker Change: And he said sure I'd like to come back and be a director at this time not an executive but he has lots of executive experience over 17 years at U S. Global and he was the CFO and Chief operating officer. He was the CEO and he understands on this regulatory world we live in.
Speaker Change: And the importance of the different departments. So it's a great addition to the team.
Speaker Change: Next please.
Speaker Change: So I'll try to explain the stock and the stock has had this incredible runs and surges and the last time, we had this huge surge going into 2000 2021.
Speaker Change: A combination of our high position.
Speaker Change: In trading a big insurers and going up exponentially along with the growth in Jets Jets ETF went from $40 billion in assets.
Speaker Change: A peak of 4 billion in assets.
Speaker Change: It was an incredible run.
Speaker Change: All of those red at investors and people that follow.
On Twitter followers that trade. These stocks, it's interesting that Warren Buffett capitulated and got out of all of the airlines in the first.
Speaker Change: Quarter of 2020, with the Covid scare and.
Speaker Change: Whereas millennials they were coming in buying the stock and the stock went from 10 to 28 fell back to 18 19 now we're up to 25 again, so I think that our stock price is now highly correlated to the airline industry.
Speaker Change: But what we've shown here.
Speaker Change: 2019 before Colgate.
Speaker Change: All the Russell Microcap Index has done and how is it grow done on a relative basis. So touch wood, we have will perform that overall index over a long period of time next please.
Speaker Change: Macro trends the gap narrows between active and passive Etfs. This is very important for.
Speaker Change: Technical aspects of launching Etfs that they wanted to have that people were putting up the capital to see these ideas.
Speaker Change: Really where strict about that.
Speaker Change: They knew the basket always was going to be they didn't want to active.
Speaker Change: And I think that people like arc.
Speaker Change: The captive was really a change that landscape of active Etfs are more growing and we're pretty happy about it. So we launched our first.
Speaker Change: The smart beta 2.0, but it sort of active view, but we create our own index and we have something to beat and track.
Speaker Change: But I think what's important here for investors is that as mutual fund redemptions continue.
Speaker Change: Active etfs are growing and I think.
Speaker Change: This is very positive for fund groups like U S global.
Speaker Change: Warren Buffett highlights the value proposition of buying back stock at a value accretive prices and it benefits all shareholders not just the biggest holders.
Warren Buffett celebrated his 94th Firstly on August 30, blown and going I was with one of us.
Speaker Change: Key.
Speaker Change: Executives.
Speaker Change: The program I drove your Harvard.
Speaker Change: With other Ceos and it's interesting you said you know as brain is so sharp.
Speaker Change: He is a cane yes.
Speaker Change: He has to work quickly.
Speaker Change: But.
Speaker Change: His brain.
Speaker Change: Financials are falling everything I guess I'll, let bridge, playing is helping and being around very smart people.
Speaker Change: One of those big parts of this very smart person, who is buying back your stock next please.
Speaker Change: Okay.
Speaker Change: So why do we buy back stock because the company believes the stock is undervalued, therefore buys back shares of growth when the prices fluttered down from the previous trading day using an algorithm. This is part of the company's two pillar strategy to enhance shareholder value by increasing the dividend as well as the buybacks because we know that any major sir.
Speaker Change: <unk> and <unk>.
Speaker Change: Assets.
Speaker Change: It's like we've seen in Jets are going you are new one more.
Speaker Change: You can have a significant impact on the upsides of the stock price so.
Speaker Change: People are not betting like we are long term that's okay. We continue to buyback our stock for the long term investor gets that benefit next please.
Speaker Change: So for the three months ended December 31, 2024, the company repurchased a total of 236731 class a shares using cash of approximately 580 something thousand next please.
Speaker Change: As you can see our buyback has gone from 192000 up to 679000 and then in 2024 807000.
Speaker Change: We have been buying back stock as the stock has drifted lower and I believe it's the most of that drifting takes place because the jets ETF, even though it has done so well people keep redeeming and I think as sentiment on negative news is driving that but if you look at the bookings.
Speaker Change: Theres no theres no, though they used to be a high season or low season for travel. It's all high season are very high season.
Speaker Change: The price of tickets are still if you look to buy a ticket for a euro there are no discounts.
Speaker Change: And its just recognizing the baked in revenue.
Speaker Change: But wall Street is not as bullish as I always try to do something to micromanage I have no idea, but there is none of these analyst clot, United is going to be up 130% last year and the spectacular growth of the industry. So I think that this is where <unk>.
Speaker Change: <unk> invested comes along growth at a reasonable price and our model our smart beta to Plano demonstrates.
Speaker Change: It's very very efficient and effective for someone that wants to play in an industry that is.
Speaker Change: That is really quite remarkable because every day a million people around the world go to work to make the airlines function, but when you look at the growth of all the making the airplanes the service providers et cetera for the airline industry is up close to 9% of global GDP.
Speaker Change: It's really interesting that there's one product.
Speaker Change: So not a product on the airlines industry can capture 9% of global activity. So I think it's very exciting.
Speaker Change: And we've expanded the footprint in Latin America.
Speaker Change: And in Colombia.
Speaker Change: Colombia, and Chile, Mexico. So the idea that if the dollar is strong then tourism going to Latin America actually will go up.
Speaker Change: Americas.
Speaker Change: Travelling more and I think Lisa you can see this in the bookings of these flights next please.
Speaker Change: Growing dividends the yield is.
Speaker Change: Share price of $2 45 years was 367% is slightly under the five year.
Speaker Change: Government bond yield, but with the stock buyback really call. The next slide the total shareholder yield.
Speaker Change: Screaming attractive value proposition.
Speaker Change: And so the shareholder yield model is dividends plus buybacks and debt reduction and we have no debt so market cap wise Ah, It's got a very high yield next slide please.
Speaker Change: Five years 438 10 year.
Speaker Change: It is 4.58 and buying back your stock that was dollars ended up generating what they call a shareholder yield up 1%. So it's a very attractive value proposition and that's why we continue to buy next please.
Speaker Change: So on a relative competitive in nature looking at with the tree, which is 100% Etfs.
Speaker Change: And looking at their profit margins there.
Speaker Change: They are higher.
Speaker Change: So they end up trading at a higher price to book and their returns on their assets have grown nicely.
Speaker Change: Where she was global.
It's down.
Speaker Change: From but it's still higher than where you have Ms. QQ Q is so it just gives you an idea to try to explain the relative valuation metrics.
Speaker Change: The cash dividend that invesco is higher but buying back the stock like total shareholder yield is lower.
Speaker Change: And if these thematic.
Speaker Change: <unk>.
Speaker Change: If you believe in then which I believe and I think that there's a huge upside potential next please.
Speaker Change: Company has a steady cash flow despite challenging macro.
Speaker Change: <unk> the company has a strong balance sheet.
Speaker Change: Which includes both cash and other investments to weather. These downdrafts in capital markets. The company continues to buyback stock on flattened down days and pay a monthly dividend.
Speaker Change: Next please.
Speaker Change: Smart beta two point on investing as our quantum medical investment strategy, when combined with cutting edge technology with robust data analysis to help optimize.
Speaker Change: Returns and manage risk effectively for our shareholders. We believe the use of smart beta two point all factors in our thematic fund lineup sets us apart from our competition, we know that when the application of that for like a luxury goods.
Speaker Change: We're the only one with a mutual Bowen luxury goods and it works that fund has done a great job of outperforming any other the other luxury related products.
Speaker Change: That are out there most of them are in Europe.
Speaker Change: So we're very happy with this sort of structured disciplined.
Speaker Change: Approaches back tested for thousands of hours over decades of data to determine the optimized portfolio construction and that's what makes it special is not just the doctors for picking stocks like low p/e or low cash flow or a high free cash flow yield is also looking for momentum year over year revenue growth cash flow growth.
Speaker Change: These factors.
Speaker Change: When you do portfolio construction look at various industries you have to have a system like our backs up it does our back testing and it gives you a data point after looking at 40 quarters of 600 months Ah Sophistical meaningful.
Analysis of this product is robust and up and down cycles of naturally past performance no guarantee of future results, but it's so far.
Speaker Change: It works, it's a much better discipline before launching an idea of a product that you have a rigorous test and when you hire other young people that come along and work on the CFA.
Speaker Change: It's proven to be a great way for them to learn about capital markets and the application of this sort of structured disciplined next please.
Speaker Change: So introducing U S global technology in aerospace and defense ETF Wamus losses December 30th allows.
Speaker Change: It allows them to get picked up by the morningstar's, but really what took place as the journey and the journey from knowing God reached out to try to launch the first bitcoin Etfs because the relation between Golar and bitcoin is very high we couldnt do that in 2017.
Speaker Change: It jumped to 2024 before it became the fastest growing ETF, but we would've waited all those years and we will know when we created the first crypto mining company to go public.
Speaker Change: Hive and so it's.
Speaker Change: Interesting journey, you don't realize that then we go into our goal of mutual fund because we learn about from mutual funds. So we go into luxury goods because gold is related to luxury and 60% of gold demand is actually called the love trade.
Speaker Change: And it's really quite remarkable that you learn along these steps in launching high its datacenter business and bitcoin mining is all about data center business and then you realize that both cyber security and then high was buying all these nvidia chips.
Speaker Change: Sure.
Speaker Change: Mining of the theory of and then the AI business has been building.
Speaker Change: Realize that they are that the airline industry or the overlap with Aero defense and all of a sudden you say there is no product out there that is really focus on the application of AI.
Speaker Change: To reinvigorate, our or our base, our military basis, and what we're doing for defense and cyber security and so in that process. We find out that data centers are key guess why we started this product 18 months ago now data centers or the big boom spend along for us.
Speaker Change: Video chips, and aerospace companies and drone companies are all buying.
Speaker Change: GPU chips from companies like Nvidia.
Speaker Change: So we believe this is a secular trend. So this particular ETF AUM semiconductors. It owns data centers. It owns a cyber security like the power and tears of the World and it also owns.
Speaker Change: Major military Aero Aerospace and defense companies, but we apply this discipline every quarter recalibrate rebalance and go back and like I said earlier 600 months.
Speaker Change: 40 quarters to see how it did in up and down cycles and it was pretty compelling.
Speaker Change: We this is a really a technology product, but as for cyber security protection, along with military and then of that research. We had China Fund we ended up shutting down we're the first to have a China region and it has spectacular growth.
Speaker Change: And then all of a sudden we realize that no one's really interested in China and their dictator of that comes in.
Speaker Change: It's really a bit of crack Delaware technology sector, and he's had a very aggressive program.
Speaker Change: Building ports around the world in particular.
Speaker Change: Using them for military.
Speaker Change: And thats been woken up that Americas quite concerned about China's slow in predatory practices. This also lens into war the war ETF and it also explains why we shut down our China region opportunity fund because China.
Speaker Change: And their predatory practices, a brilliant marketing of one belt one way.
Speaker Change: In helping infrastructure spending for countries in Africa, and Latin America, They end up supporting Rogue nations they have supported.
Speaker Change: Authoritarian regimes, they end up supporting us.
Speaker Change: Anything that undermines democracy, and we can see that a lot of these countries ended up going anti America or other anti Taiwan.
Speaker Change: And so we see that the landscape has changed dramatically.
Speaker Change: Next slide Theres, a huge spending going to take place in the military.
Speaker Change: Space over the next 10 years. So we think this is just a great product.
Speaker Change: For those people that are cautious about global economy.
Speaker Change: Look where money is being spent followed money military spending will continue to grow and AI applications to all the military is only going to accelerate next please.
Speaker Change: And this is why the new Red Cold War three good looking guys.
Speaker Change: Why invest in the defense industry because of their predatory practices.
Speaker Change: South Korea as the risk of Ukraine balls at the dictator of North Korea will invade South Korea.
Speaker Change: And then the dictator of China will invade Taiwan. So these are all real events that are taking place in real time.
Speaker Change: There was the thought process of cutting back on spending I can't see that for many reasons.
Speaker Change: A classic would be China that does have nothing with the Arctic.
Speaker Change: All of a sudden builds three ice breakers, and theyre, making claim to the Arctic.
Speaker Change: Super cargo and they try to build a military pays.
Speaker Change: Location port in Greenland, and so we've seen recently President Trump talk about Green line in Panama that is and we're highly related to the China fear and the predatory practices are CJ and painting.
Speaker Change: And she Shang Fang is now supporting military.
Speaker Change: Material for a potent and North Korea is testing the soldiers and have set and soldiers to work.
Speaker Change: Helping Putin has army fight in Ukraine, So we're seeing a real change around the world and <unk>.
Speaker Change: So I think the technology is a key part next lease, especially with military China's growing influence of Latin America.
Speaker Change: You can see.
Speaker Change: Many of these countries.
Speaker Change: What they do in particular in Peru.
Speaker Change: Come in and they want you to buy their telecom their software and then they try to support it.
Speaker Change: Terry and our leaders.
Speaker Change: So.
Speaker Change: You just have to be really aware when you look at this how many places that are located.
Next please.
Speaker Change: The five key industries shaping the defense sector semiconductors aerospace data centers cyber security and Homeland Security next please.
Speaker Change: Global defense spending is going to rise to $2 four trillion.
Speaker Change: If you really spent the money.
Speaker Change: On purchasing power parity.
Speaker Change: China is we're way behind China spending.
Speaker Change: What I'm trying to go and spend $100 billion, Oh put so much greater because of the cost of living is so much less.
Speaker Change: What they have to pay their workers. So we do have a catch up but it was interesting seeing Japan recently rocketing up in their spend because they are cautious of worried about which China is doing in Asia. They are building islands.
Speaker Change: To basically say that within 12 miles since their land.
Speaker Change: Their water waste and Theyre trying to take over the Philippines water rights. So that would have a big impact in Japan. So you are seeing these changes and it's good to have a I think a product like this that is focused on military and technology next please.
Speaker Change: Okay.
Speaker Change: Judge our biggest product continues to show record number of people flying.
Speaker Change: It's it's it's interesting to see that.
Speaker Change: This year.
Speaker Change: So the airlines are continuing to show.
Speaker Change: So positive developments and if you look at Euro you can see that there's no discount so it's baked in high revenue growth.
Speaker Change: And the stock traded at basically one quarter of the S&P.
Speaker Change: P/e ratio of cash flow multiples so deeply undervalued next please.
Speaker Change: So jet's pizza market, we're very very happy about our smart beta 2.0, when we created if we wanted to beat the New York Stock Exchange Arca Global airline index and as you can see is done that by a wide margin in last year and also outperformed the S&P 500.
Speaker Change: Which were a big trough Ross next please.
Speaker Change: Just confused to outperform the market airline index over.
Speaker Change: Different time period here.
Speaker Change: As you can see.
Speaker Change: Since August.
Speaker Change: A huge run we did a webcast and it's interesting people were blah blah.
Speaker Change: And the funds just took off and then I had calls in people talking to me, saying I'm, sorry, we didn't listen.
Speaker Change: You nailed it the industry so much disclosure.
Speaker Change: Bookings as I mentioned earlier, our strong for next year. So I think the airline industry was trades at under 10 times earnings.
Speaker Change: The market trades over 20 times earnings is offering great growth and a reset button.
Speaker Change: Please.
Speaker Change: This is Jeff says off performs sensor called it as you can see.
Speaker Change: This is an interesting for me because.
Speaker Change: If we go to the.
Speaker Change: The bottom.
Speaker Change: The of Covid, So COVID-19 highlands.
Speaker Change: Crisis, the Jets fell and then the rebound has been pretty strong.
Speaker Change: Pretty strong performance, especially in the past year now what really helps drive a lot of this is last year was the price of oil was down. So we do find a huge shareholder base of oil trading investors strategically, we'll buy jets with inverse to the movement of oil.
Speaker Change: Oil is rising or out oil is falling or in next week.
Speaker Change: Average annual gold price, it's always shocks people has advanced 84% at the century that is because I believe that.
Speaker Change: The G 20 countries are practicing modern monetary theory, which is beta value in countries currencies, all over the world and particularly the U S dollar and it.
Speaker Change: It lends itself that you should have this 10% weighting of rebalancing sure next please.
Speaker Change: This is another way of looking at gold is money and in various currencies. How much does build appreciate it as you can see that in Chinese one it's appreciated 11, 6% in U S dollars $10 five.
Speaker Change: And British pound is up 8% against the Euro is up 7% and I guess, the Japanese yen is up 5%. So the Gogo theme is pretty strong that gold is rising in all countries currencies are having a 10% weighting in this asset class is only why supported next please.
Speaker Change: But where are you being a gold mining stocks in 'twenty two for next.
Speaker Change: Please.
Speaker Change: And since inception.
Speaker Change: Smart beta two pointed out has done a great job or other product called C.
Speaker Change: It was interesting I share with you the yield is 18%. So the overall investor yield last year was positive 2.4% because of the yield the dividend yield paid over so high.
Speaker Change: Next please.
Speaker Change: So <unk> is an investment in hive is slowly getting paid down on the page, 8% plus principal every quarter next please.
Speaker Change: So it grows approximately $2 40 515 big in assets $2 2 million quarterly operating revenue next please.
Speaker Change: Earnings per share and this will give you more granularity.
Speaker Change: While we lost a penny.
Speaker Change: Next please.
Speaker Change: Now going to turn it over hardworking Lisa Telecom.
Lisa Callicott: Thank you Frank Good morning, first I'll start with our financial highlights on the next slide.
Lisa Callicott: As you can see from our average assets are going management were $1 5 billion operating revenues were $2 2 million and we did have a net.
Lisa Callicott: Loss at 86000.
Lisa Callicott: On the next slide talks a little bit more about our earnings and so we have both operational earnings and we have indefinite Ernie.
Lisa Callicott: Both the operational earnings and our realized earnings and kind of hit our cash flow were unrealized earnings down.
That both because our operational earnings are based on our advisory services and then our investment earnings and are really that realized and unrealized gains. They both are affected by stock market forces. So that's what you'll see is some of that fluctuation and volatility.
Lisa Callicott: All right.
Lisa Callicott: On the next slide.
Lisa Callicott: And this as a part of our income statement and you can see that our total revenues were $2 2 million for the quarter, which was a decrease of 587000 or 21% at $2 8 million the same quarter last year.
Lisa Callicott: Decrease is primarily due to a decrease in assets under management, especially in our Jets ETF.
Lisa Callicott: And our operating expenses for the quarter were $2 8 million, an increase of 144000 or 5% and it was mainly due to an increase in employee compensation and benefits and was partially offset by a decrease in general and administrative expenses.
Lisa Callicott: On the next slide we see our operating loss for the quarter with 539000 and it wasn't an unfavorable change a 731000 compared to the same period last year.
Lisa Callicott: Other income decreased $1 1 million as compared to the prior year and it was mainly due to unrealized losses on equity and debt securities in the current period at 221000 compared to unrealized gains in the prior year period.
Lisa Callicott: 414000, we also had realized foreign currency losses of 239000 compared to $92000 gains in the prior year period.
Lisa Callicott: Net loss after taxes for the quarter with 86000 or a penny per share, which was an unfavorable change of $1 3 million compared to the net income of one point to our nine cents per share for the second quarter and fiscal year 2024 living.
Lisa Callicott: Moving to the next slide you can see we still have a strong balance sheet and quick high level for cash which.
Lisa Callicott: Which will allow us to weather through this lower asset period.
Lisa Callicott: Cash and cash equivalents was $26 million.
Lisa Callicott: And we had current investments at $9 7 million.
Lisa Callicott: On the next slide is a detail of our other assets are included in there are some other investments which totaled $9 six nine years.
Lisa Callicott: On the next slide our liabilities decreased from June 2020 for approximately 134000, and we still have no long term debt on.
Lisa Callicott: On the next slide you see our stockholders' equity detail.
Lisa Callicott: At December 31, 2024, the company had a net working capital 38 million, which increased 180000 as of June 2024, and we had a current ratio of 22 one.
Lisa Callicott: With that I'll pass it over to Holli to discuss marketing and distribution initiatives.
Holli: Thank you Lisa.
Holli: On this slide we are proud to report that we continue to provide original timely market insight to our Youtube channel, we have numerous new videos here and on our Tictoc channel that we invite each with floor. We know one of the best ways to reach new and existing shareholders is increasingly through.
Holli: But in particular in the barn, but he is now if you haven't checked out our Youtube channel yet I highly recommend that you do so.
Holli: Alright on the next slide I'd like to highlight that our most popular piece is now available on our website is the periodic table of commodity returns for 2024 that shows exactly how various commodities fared in the prior year.
Holli: An interactive feature as well as a downloadable PDF. So I encourage you to check it out on our website. If you haven't done so already.
Holli: And on this slide.
Lisa Callicott: As Frank mentioned earlier in the presentation, our new aerospace and defense ETF ticker symbol W. A R launched in the last quarter on December 30, It and then on January 9th we hosted a webcast with Frank and it was kind of state by the tenant General retired John Edmunds scene here about the state.
John Edmunds: At the global defense market, and how war can offer a diversified way to gain exposure.
John Edmunds: Can request a copy of the replay by sending us an email at <unk> at <unk> Dot com.
John Edmunds: On the next slide we always like to recap the most read Frank talk blog posts during each quarter as you can see here the top themes seem to focus on precious metals gold ones continuing to reach a new all time high as well as defense and cyber security. If you are a subscriber already be sure to visit you excellent.
John Edmunds: Dot com and sign up it's completely right.
John Edmunds: So finally on my last slide I do encourage you to follow U S global across social media, we are on Twitter or ex Linkedin, Youtube Instagram and Facebook. So wherever you prefer to get your news these Cherokee check it out.
John Edmunds: This way you up to date with what's going on with grow our funds and the broader market insight.
John Edmunds: Alright, just as a reminder to our audience today. If you have any questions you can email that to info at U S. Dot com and we will gladly follow up with you to get anything clarified that you may need more information on so thank you for tuning in today that concludes our webcast summarizing our second quarter fiscal year.
John Edmunds: 2025.
John Edmunds: Goodbye.