Q2 2026 U.S. Global Investors Inc Earnings Call

February 23, 2026

Speaker #1: And myself, Holly Schoenfeldt, Director of Marketing. On the next slide. 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.

Speaker #1: Please refer to our press release and corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements.

Speaker #1: Any statements are made as of today, and U.S. Global accepts no obligation to update them in the future. All right, on to the next slide.

Speaker #1: We're always grateful for the continued support of our valued shareholders. So, if you'd like to receive one of our signature USGI hats featured here, just send your mailing address to info@usfunds.com, and we'll gladly ship one out to you.

Speaker #1: All right, on to the next slide. I want to briefly review the company. U.S. Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors.

Speaker #1: We use a quantum mental strategy to create thematic Smart Beta 2.0 products. The company was originally founded as an investment club, becoming a registered investment advisor in 1968, and has a longstanding history of global investing and launching first-of-their-kind investment products.

Speaker #1: Including the first no-load gold fund. Finally, we're experts in thematic investing, and in particular gold and precious metals, natural resources, airlines, and luxury goods, all using a quantum mental approach that includes both macro and micro factors.

Speaker #1: All right, moving on to the next slide. We often open up our presentations with this slide, known as the DNA of volatility. It's a helpful reminder that market fluctuations are a natural part of long-term investing.

Speaker #1: And with that perspective in mind, I do want to hand it now over to our CEO, Frank Holmes. Frank.

Speaker #2: Thank you, Holly. Thank you, everyone, for listening to our presentation. And yes, there's no doubt it's important to recognize the DNA of volatility. And managing life is about managing expectations.

Speaker #2: And it's a non-event for gold, as you can see, and that's an important part of our assets. To go up the same as the S&P 500.

Speaker #2: And I can share with you, 10 years ago that number was 2%. And 25 years ago, the daily volatility for gold was 3%. And for stocks, it was more like 9%.

Speaker #2: So the volatility has come down, but we do see gold stocks still exhibit two times the volatility of the S&P. And as you can see, over 10 days, it's 6% volatility.

Speaker #2: And that's really important. And when you look at ARCA Airline, which is our biggest ETF, the volatility is also quite large—just plus or minus 2% in a day.

Speaker #2: And a lot of that has to come from the oil market—the volatility of oil—because it's the biggest line item expense. And then 10 days is 7%.

Speaker #2: And Bitcoin is the same as the airline index when you look over 10 days, which is amazing to me. And Hive Digital was a company we launched and created and co-founded in 2017 because we were unable to launch a Bitcoin ETF.

Speaker #2: And it's been our proxy in that whole space. Next, please. You can't connect the dots looking forward; you can only connect them looking backwards.

Speaker #2: So you have to trust that the dots will somehow connect in your future. In my storytelling today, I'm going to try to weave through the dots that connect them for you, because I love that quote and it's also really helpful when you go back and you use AI today.

Speaker #2: So often, it uses Bayes' theorem, which you can ask: Is something statistically relevant to the history or the past—year, three years, five years, ten years, or decades?

Speaker #2: It's a mathematical way, but it's looking back for the dots. Next, please. So, we're in an industry as fund managers and mutual funds and ETFs, and here's what's really important: when we launched our first ETF, it had to be active. That was not basically accepted.

Speaker #2: They wanted to fix the amount. And that's changed, as you can see. That actively managed ETF, domestic funds are growing. They're being accepted much more, as the growth of ETFs is 'uberizing' mutual funds.

Speaker #2: And so we still see the net redemptions in actively managed domestic funds versus the ETF space. We still have our mutual funds, and we know that the providers that we partner with, they're going through the journey of how do you convert to ETFs, but I think that we're waiting for them to iron out that concept of that transition from a mutual fund to an ETF. So we'll maintain where we have our active mutual funds.

Speaker #2: They do have higher fees, and in this big rally in gold in the past year and this year to date, it does have a bigger impact when you look at our ETFs as a 60 basis points for calculating revenue.

Speaker #2: But for the active, it's more like double that with a 21. So there are higher fees for those asset classes. Next, please. Investment industry 2025 recap: U.S. fund flows hold strong, especially into ETFs.

Speaker #2: Even though there's so much negative news at '24, '25, where both were very positive years—as you can see, '21 was huge, '22 came off. '20, we experienced our biggest growth going in between '20 and '21 during COVID.

Speaker #2: Especially in the jets, which was the most fascinating experience I've ever had. And realizing the significance of new disruptive brokerage firms like Robinhood and how many accounts were coming through Robinhood—being totally contrarian—you found that Wall Street was all negative on the airlines, but the Reddit crowd had done the research that for every global crisis, the airlines fall 60% to 70%, and then they go up 100% to 120%.

Speaker #2: And that's what happened with jets. And those assets continue to grow, and then they came off in '22 with the market, and there was such negativity, but the airlines defy that.

Speaker #2: They've done a phenomenal job in revenue growth and the sustainability. Next, please. So, record ETF inflows hit nearly $1.5 trillion in 2025, outpacing traditional stock fund flows.

Speaker #2: There was a launch of several that became billion-dollar products. They were single-purpose corporations where, like MicroStrategy or you could take NVIDIA, you could take Tesla, and they would do a 20-day rolling covered writing program against that position.

Speaker #2: So your stock would go up, but not as much as the ETF single-based stock would go up. But it was interesting how retirement people said, well, I want to be long NVIDIA and Tesla, but I’d rather get the monthly income waiting for it.

Speaker #2: And that was a big growth part last year. It seems to have cooled off, but we saw that with the gold bullion ETF, where the yields were about 12%.

Speaker #2: And the Bitcoin ETF, which we own both of them, those yields were running like 24% up to 30% yields on that rolling 20-day model.

Speaker #2: Because of the volatility, some of our own investments have gone into that to increase our overall income flow. And another reason for that too is because the high convertible note we had is gone now.

Speaker #2: They paid it back, but its 8% coupon was gone. And so we've redeployed some of that money into other assets for income and growth.

Speaker #2: Next, please. I want to thank the top three shareholders here. You can see that Gator Capital Management, Vanguard, and Parrot—Parrot's been around as a small-cap mutual fund group for a long period of time.

Speaker #2: And they are just a great group out of Chicago. Vanguard is in their index products, and Gator Capital is a deep value, looking for growth investments.

Speaker #2: And we were in some of the other ETFs that are out there. And funds like BlackRock has an asset management ETF. And we would show up in theirs.

Speaker #2: Next, please. So, as CEO and Chief Investment Officer, I own about 19% of the company and approximately 99% of the voting control. That all has to do with 40 Act rules, without making it complex for you.

Speaker #2: I'm an independent board of directors, with lots of mutual fund experience and private equity experience, to be with us as shaping and approving what we do.

Speaker #2: But I have to go through this process of having an independent board. The voting control is really predominantly for protecting mutual fund investors. Next, please.

Speaker #2: Strategy and tactics. A big part for us to get into the ETF space was to create the amount of products that are sustainable, using a smart beta 2.0 strategy.

Speaker #2: It requires rigorous backtesting for thousands of hours. Our mission is to make people feel financially happy and secure that their wealth is consistently growing.

Speaker #2: It's always hard when you have thematic products because thematic products come and go in these sort of sentiment waves, or you can have big government spending, which can help drive that.

Speaker #2: So, we want to make sure that our product is priced competitively, and we know that at 60 basis points, we need to have $50 million basically to break even—to cover the financial costs such as audit and legal. But it really doesn't cover all the other portfolio and other marketing costs, et cetera.

Speaker #2: So we know that you need to have close to $80 million to start covering those other costs. When you go through $100 million in ETF, it starts to be profitable for us in a very strong way.

Speaker #2: So that's the magic goal for any new product we launch. Strategically, we've been buying back our stock using an algorithm on flattened down days.

Speaker #2: We've bought back just under 10% for the year, 18 months. I think we bought about 10%, but what's important is that when we started this program, it was about 50 million shares all out, and now it's a little over 12.

Speaker #2: So we've consistently been buying back, and we've been buying back more last year when it was just a depressed overall value with our cash.

Speaker #2: We are very consumed with how we manage to preserve cash for future growth opportunities and market corrections, so we run a lean and mean shop.

Speaker #2: Bonuses are basically on performance—performance of the funds, performance of cash flow. If we don't have that big performance of assets and cash flow, I don't get a bonus.

Speaker #2: And investment team, they also have to have performance. We can tune to look at M&A activity to acquire fund assets. We know that mutual funds trade at a big discount on the M&I because the redemptions continue as an asset class.

Speaker #2: Old investors stay with you, and quite often they pass away. Their kids take over, and they want the cash or they want to go and trade ETFs.

Speaker #2: So, we understand that sort of process, and we understand why M&A activity and fund business is a lot less. But ETF business—well, that's different.

Speaker #2: ETFs have a much lower redemption. They just get much more trading with it. But what has the strongest in our ecosystem is registered investment advisors.

Speaker #2: They have the highest price to cash flow, price to multiple valuations. If you're looking to go buy that business. So I'm sharing this with you because we do keep in touch with what's going on in the industry.

Speaker #2: We grow our subscriber base and followers. That's been very important, because we believe that long-term, having an intimate relationship means investors stay with you a longer period of time.

Speaker #2: And we increase our exposure to the Bitcoin income system. Predominantly, as high as it's been redeeming, it's buying notes that these ETFs that pay out monthly income.

Speaker #2: Next, please. Why do we buy back our stock? Well, the company believes the stock is undervalued and therefore buys back shares, or grows when the price is flatter or down from the previous trading day, using an algorithm.

Speaker #2: And this is part of the company's two-pillar strategy to enhance shareholder value by paying the dividends as well as the buyback amount per year.

Speaker #2: Over the past several years, we have not increased the dividend. We have increased substantially our buyback dollar amount. Next, please. So the current share repurchase program—for the three months ended December 31, 2025—the company repurchased a total of 260,195 Class A shares using cash of approximately $664,000.

Holly: and myself, Holly, Director of Marketing. On the next slide. During this webcast, we may make forward-looking statements about 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 corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any statements are made as of today, and U.S. Global expects no obligation to update them in the future. All right, on to the next slide. We're always grateful for our continued support of our valued shareholders. So if you'd like to receive one of our signature USGI hats featured here, just send us your mailing address to info@usfunds.com, and we'll gladly ship one out to you.

Holly Schoenfeldt: and myself, Holly, Director of Marketing. On the next slide. During this webcast, we may make forward-looking statements about 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 corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any statements are made as of today, and U.S. Global expects no obligation to update them in the future. All right, on to the next slide. We're always grateful for our continued support of our valued shareholders. So if you'd like to receive one of our signature USGI hats featured here, just send us your mailing address to info@usfunds.com, and we'll gladly ship one out to you.

Speaker #2: Over the past 18 months, we have shrunk the shares outstanding by—I'm sorry, over 18 months—by approximately 10%. Next, please. Grow buyback. I think if you recap, you can see by the quarter, the stock, for whatever reason, had more down days as gold was ripping and assets were growing. The negativity and the volatility was quite immense.

Speaker #2: And we said there was a great opportunity to buy back our stock, which we did. Next, please. Shareholder unit is an important thought. The algorithm to take a look at is what is the shareholder yield, and the model is the dividends you pay—the dollars that you look at, the total dollars paid in dividends, the total dollars in stock buybacks, and then is debt reduction.

Holly: On to the next slide. I want to briefly review the company. U.S. Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors. We use a quantamental strategy to create thematic Smart Beta 2.0 products. The company was originally founded as an investment club, becoming a Registered Investment Advisor in 1968, and has a long-standing history of global investing and launching first-of-their-kind investment products, including the first no-load gold fund. Finally, we are experts in thematic investing, in particular gold and precious metals, natural resources, airlines, and luxury goods, all using a quantamental approach that includes both macro and micro factors. Moving on to the next slide. We often open up our presentations with this slide, known as the DNA of volatility. It's a helpful reminder that market fluctuations are a natural part of long-term investing.

Holly Schoenfeldt: On to the next slide. I want to briefly review the company. U.S. Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors. We use a quantamental strategy to create thematic Smart Beta 2.0 products. The company was originally founded as an investment club, becoming a Registered Investment Advisor in 1968, and has a long-standing history of global investing and launching first-of-their-kind investment products, including the first no-load gold fund. Finally, we are experts in thematic investing, in particular gold and precious metals, natural resources, airlines, and luxury goods, all using a quantamental approach that includes both macro and micro factors. Moving on to the next slide. We often open up our presentations with this slide, known as the DNA of volatility. It's a helpful reminder that market fluctuations are a natural part of long-term investing.

Speaker #2: So, we haven't paid down any debt because we don't have any debt. We've only had money that we've invested in, paid us back. So, what you've seen is that you divide that by the market cap, and you compare that to five-year yields.

Speaker #2: Next, please. The five-year yield is an important factor of government bonds because that's what quite often dividend programs are compared to. Quant dividend, my first model is in 1978.

Speaker #2: As a young analyst, I used a dividend growth model and it was all about comparing stocks that are increasing dividends or their stock buybacks. You want to buy those if the yield is higher than the buyback or government bond.

Speaker #2: If the five-year government bond yield is higher, then you want to pull back. So it's an interesting model, and I share with you that the company has paid monthly dividends.

Speaker #2: Since 2000, you can see the current yield share price, but since 2007. So we have been paying, and it stayed pretty consistent in paying yields on a monthly basis.

Holly: With that perspective in mind, I do wanna hand it now over to our CEO, Frank Holmes. Frank?

Holly Schoenfeldt: With that perspective in mind, I do wanna hand it now over to our CEO, Frank Holmes. Frank?

Speaker #2: We're one of the few companies that really pay it on a monthly basis. The board has reviewed and approved the dividend on a quarterly basis.

Frank Holmes: Thank you, Holly, and thank you, everyone, for listening to our presentation. Yes, there's no doubt, it's important to recognize the DNA of volatility, and managing it. Life is about managing expectations, and it's a non-event for gold, as you can see, and that's an important part of our assets, to go up, the same as the S&P 500. I can share with you, 10 years ago, that number was 2%, and 25 years ago, the daily volatility for gold was 3%, and for stocks, it was more like 9%. The volatility has come down, but we do see gold stocks still exhibit 2 times the volatility of the S&P. As you can see, over 10 days, it's 6% volatility, and that's really important.

Speaker #2: Next, please. So, U.S. Global Investors is committed to returning value to shareholders when compared to Treasury yields. Gross shareholder yield is 9.89%. The 10-year government bond is, right now, 4.18%.

Speaker #2: And the five-year is 3.73. As I shared with you, when a 9.89 reflects, it's still a very attractive proposition for investors. And that is another reason why we'll continue to buy back stock.

Speaker #2: Next, please. Average assets under management in billions: we have $1.42, down to $1.26, back up to $1.4, $1.48, and now as of today. And we've seen the stock all of a sudden pop because there are many fund managers that look at the overall funds every day.

Frank Holmes: When you look at ARCA Airline, which is our biggest ETF, the volatility is also quite large. It's plus or minus 2% in a day. A lot of that has to come from the oil market, the volatility of oil, because it's the biggest line item expense. Then 10 days is 7%, and Bitcoin is the same as the airline index when you look over 10 days, which is amazing to me. The HIVE Digital was a company we launched and created and co-founded in 2017 because we were unable to launch a Bitcoin ETF, and it's been our proxy in that whole space. Next, please. You can't connect the dots looking forward.

Speaker #2: They can look at total assets, and they can do a quick approximation. So in real time, you can take a look at our overall assets and do a calculation—our revenue is growing.

Speaker #2: And what will that do to cash flow? Next, please. The quarterly EBITDA per share over the last four quarters—you can see that it was negative.

Speaker #2: Last year, it turned positive going into September. And in December, it was $0.04 a share. But when you look at earnings, Lisa will give you more color on this.

Speaker #2: The repayment and the high bond is gone. We have a separate audit firm, KPMG, that oversees just the tax and their analysis on it.

Frank Holmes: You can only connect them looking backwards, so you have to trust that the dots will somehow connect in your future. In my storytelling today, I'm gonna try to weave through the dots and connect them for you because I love that quote, and it's also really helpful when you go back and you use AI today. Often it uses Bayes' theorem, which you can ask, is something statistically relevant to the history over the past year, 3 years, 5 years, 10 years, or decades? It's a mathematical way, but it's, it's looking back for the dots. Next, please. We're in an industry as fund managers and mutual funds and ETFs. Here's really important. When we launched our first ETF, Active was not basically accepted.

Speaker #2: We have Grant Thornton that does the funds, and some calculation came out that the previous auditors, BDO, that things should have been done differently.

Speaker #2: So it has a swing in our earnings of going negative this quarter, but it's come back next quarter. So with this presentation, I thought it was just best to give you an idea that the EBITDA is improving.

Speaker #2: And we're very thrilled about that. And it gives us the ability to buy back stock on a very comfortable basis. Next, please. So how do we compare?

Speaker #2: I like to compare against WisdomTree because they're 100% ETF. I like to take a look at U.S. Global, which is almost 70% operating revenues related to ETF.

Speaker #2: Invesco, who owns QQQ—which is the biggest beast out there—40% of their assets are QQQ. And so, they look at who trades at the highest price-to-book, who trades the lowest, and you can see that WisdomTree, if you’re a real GARP investor, deep value, then WisdomTree is overvalued.

Frank Holmes: They wanted a fixed amount, that's changed. As you can see, that actively managed ETF domestic funds are growing. They're being accepted much more as the growth of ETFs are Uberizing mutual funds. We still see the net redemptions in actively managed domestic funds versus the ETF space. We still have our mutual funds, we know that the providers that we're partnered with, they're going through the journey of how do you convert them to ETFs. I think that we're waiting for them to iron out that concept of that transition from a mutual fund to ETF. We'll maintain where we have our active mutual funds.

Speaker #2: And Invesco and US Global is undervalued. If you look at return on assets, that WisdomTree is the highest return. For return on our assets, they're 2.83.

Speaker #2: But we're so liquid in respect that another $200 or $300 million in assets, and that return on assets starts to change dramatically. That's what's important.

Speaker #2: And we've been through this run where we see that asset flow, that we're so tightly wound, that a billion dollars in assets just explodes the financial returns and returns on assets.

Frank Holmes: They do have higher fees, and in this big rally in gold in the past year and this year to date, it does have a bigger impact. When you look at our ETFs, it's at 60 basis points for calculating revenue, but for the active, it's, it's more like double that with a 12b-1. There are, there are higher fees for those asset classes. Next, please. Investment industry 2025 recap, that US fund flows hold strong, especially into ETFs, even though there's so much negative news. It, it's, at 24, 25, were both very positive years. As you can see, 21 was, was huge. 22 came off.

Speaker #2: The pre-tax margins at WisdomTree are 36%. Invesco still has, from their other assets of mutual funds and other funds, the challenges and they work them through.

Speaker #2: It's a good company. But US Global is about 20%. The dividend yield for US Global is less than Invesco, and quite often in the public arena, if your pre-tax margins are negative and your yield—the stock is so down—so your yield is higher.

Speaker #2: And that's what we're seeing. WisdomTree had bigger ETF flows, which we explained to you earlier. There were a lot of flows in the industry.

Speaker #2: And they captured a fair amount, and with that, their stock price has appreciated. So therefore, their dividend yield is less, unless they increase their dividend.

Frank Holmes: 20, we experienced our biggest growth going in between 20 and 21 during COVID, especially in the JETS, which was the most fascinating experience I've ever had, and realizing the significance of new, disruptive brokerage firms, like Robinhood, and how many accounts were coming through Robinhood. Being totally contrarian, that you found that Wall Street was all negative on the airlines. The Reddit crowd had done the research that for every global crisis, the airlines fall 60% to 70%, and then they go up 100% to 120%, and that's what happened with JETS. Those assets continued to grow, and then they came off in 22 with the market, and there was such negativity, but the airlines defy that.

Speaker #2: Which they've not seen. And then we have price to EBITDA. So you can see that Invesco is the least expensive, is the cheapest, but it's because they have margin issues that they wrestle with, and hopefully the worst is behind for them.

Speaker #2: I think then they would pop. We're at 16. WisdomTree is at 13. So that was undertaken to say that we're overvalued, but I would share with you a billion dollars of assets going into WisdomTree versus a billion dollars coming into GROW.

Speaker #2: There's much more big bang, bigger bang for the dollar coming into GROW. Next, please. And that's why we have a higher price to EBITDA, I believe.

Speaker #2: And I'm sure some of the savvy hedge funds that own us, they would have different views on this. And that's what makes it—they call it your mosaic.

Frank Holmes: They've done a phenomenal job in revenue growth and the sustainability. Next, please. Record ETF inflows hit nearly 1.5 trillion in 2025, outpacing traditional stock fund flows. There was a launch of several that became billion-dollar products. They were single-purpose corporations where, like MicroStrategy or, you could take NVIDIA, you could take Tesla, and they would do a 20-day rolling covered writing program against that position. Your stock would go up, but not as much as your ETF, single base stock would go up. It was interesting how retirement people said, Well, I want to be long NVIDIA and Tesla, but I'd rather get the monthly income waiting for it. That was a big growth part last year.

Speaker #2: And every asset class and every portfolio manager, they have different mosaics of prisms of how they look at different categories in the full spectrum of the capital markets ecosystem.

Speaker #2: GROW 317, $1.4 billion year-end, now $1.7 billion. $2.5 million quarterly operating revenues. Next, please. A look at Q2 for 2026. The company has a steady cash flow despite a volatile and challenging macro market environment.

Speaker #2: The company has a strong balance sheet, which includes both cash and other investments. So the company continues to buy back stock on flatter down days and pay a monthly dividend.

Speaker #2: Next, please. SmartBeta 2.0—it's an important thought process that we've sort of pioneered. And the concept is both the portfolio design, top-down, and then bottom-up factors that relate to a thematic product of the stock.

Frank Holmes: It seems to have cooled off, but we saw that with gold bullion ETF, where the yields were about 12%, and the Bitcoin ETF, which we own both of them. Those yields running like 24% up to 30% yields on that rolling 20-day rolling model because of the volatility. That has been some of our own investments of going into that to increase our overall income flow. Another reason for that, too, is because the high convertible note we had is gone now. They paid it back, but its 8% coupon was gone, and so we've redeployed some of that money into other assets that's for income and growth. Next, please. I want to thank our top three shareholders here.

Speaker #2: So, your stock weightings and then the individual names, and what factors you use—because we have found that factors for picking gold stocks are different than picking luxury goods, and different than picking global resources. Quite often, when you get into resources like global resources, you have to have a bigger weighting into a GARP product. For example, you would look at, you want the lower EBITDA to enterprise value.

Speaker #2: Cash flow to enterprise value—the cheaper, the better—because there's tremendous mean reversion across the various resource industries. But we believe that using SmartBeta factors in a thematic fund lineup sets us apart from our competition. Our quant approach backtests at thousands of hours over decades of data to determine optimized portfolio construction and stock factors to rebalance each quarter.

Frank Holmes: You can see that Gator Capital Management and Vanguard and Perritt. Perritt's been around as a small cap mutual fund group for a long period of time, they are just a great group out of Chicago. Vanguard is in their index products, Gator Capital is a deep value, looking for growth investments. We're in some of the other ETFs that are out there, and funds like BlackRock has a asset management ETF, and we would show up in theirs. Next, please. As CEO and Chief Investment Officer, I own about 19% of the company and approximately 99% of the voting control. That all has to do with 40 Act rules without making it complex for you.

Speaker #2: As we've gone to monthly, it has changed some of this. Really, we're still keeping the weighting similar, but we're taking a look at other factors, especially the gold for GROW AU.

Speaker #2: So it can capture more momentum that is taking place in the stock space. And we're seeing that in IBD last year for the first time in over a decade.

Speaker #2: Gold stocks represent, in the top 20 names, something like 40%—are gold stocks—because they have the strongest growth and momentum in revenue, cash flow, and earnings.

Speaker #2: So they would show up, and that means these gold stocks are attracting other technology. What I love about IBD is that it's agnostic to the industry.

Speaker #2: It's more focused on the momentum value factors and institutional liquidity. Next, please. So, why gold, and why we're a great proxy for the gold industry.

Frank Holmes: I have an independent board of directors, with lots of mutual fund experience and private equity experience, to, to be with as to shaping and approving what we do. I have to go through this process of having an independent board. The voting control is really predominantly for protecting mutual fund investors. Next, please. Strategy and tactics. You know, the, the big part for us was to get in the ETF space, was to create the amount of products that are sustainable using Smart Beta 2.0 strategy. It requires a rigorous backtesting for thousands of hours. Our mission is to make people feel financially happy and secure that their wealth is consistently growing.

Speaker #2: Not only have we been writing for this and have over 100,000 readers in 80 countries, but if you're not a subscriber to our Investor Alert and Frank Talk, it's free.

Speaker #2: I highly recommend it to you because it really is a great thought process from the investment team, along with myself, on things I see and do that show up in unique writings and observations of capital markets.

Speaker #2: But what's driving gold, especially this decade? Well, we get a lot of these gold bugs, like I've experienced with the Bitcoin fanatics, and you find out that the fanatics really don't own much gold or Bitcoin.

Speaker #2: They just don't like governments. And it doesn't matter if you're a Democrat or Republican. They're very opinionated, and you just have to sort of manage with what they anchor to, which is the U.S. debt is out of control.

Frank Holmes: It's always hard when you have thematic products, because thematic products come and go in this sort of sentiment waves, or you can have big government spending, which can help drive that. We want to make sure that our product is priced competitively, and we know that at 60 basis points, we need to have $50 million basically to break even to cover the financial costs, such as audit and legal, but it really doesn't cover all the other portfolio and, and all the marketing costs, et cetera. We know that you need to have close to $80 million to start covering those other costs. When you go through $100 million in ETF, it starts to be profitable for us in a very strong way.

Speaker #2: It's going to crash, etc. And it is. It's very, very difficult at what's going. But you have to put it in a global context of what the other issues are.

Speaker #2: Besides this debt—and I'm going to walk you through, if you use some of the gold bug originals or the analysis of how they would forecast the price of gold.

Speaker #2: And I will walk you through that. But we're in that space, and it's important because I think this is an underloved space. And I think we have the opportunity of building a GROW AU to $10 billion in assets.

Speaker #2: Next, please. So, the big picture is really to look at this century. And, this century, we have seen gold outperform the S&P 500. Well, why is that?

Frank Holmes: That's the magic goal for any new product we launch. Strategically, we've been buying back our stock using an algorithm on flattened down days. We've bought back just under 10% over the year. 18 months, I think we bought about 10%. It was important is that when we started this program, it was about 50 million shares all out, and now it's a little over 12. We've consistently been buying back, and we've been buying back more last year when it was just a depressed overall value with our cash. We are very concerned with, you know, how we manage to preserve cash for future growth opportunities and market corrections, so we run a lean and mean shop. Bonuses are all basically on performance. Performance of the funds, performance of cash flow.

Speaker #2: Well, this century, with the World Trade Organization—which was created in the '90s—China comes in 2002. And the old world starts to take off after the crisis that we had with the tech bubble in 2000.

Speaker #2: Many tech stocks are trading at lofty values per revenue per share. And they never had 50 times revenue per share. All they had were eyeballs, no cash flow, no revenue.

Speaker #2: Everything cratered. But the internet continued to grow and prospered. And we bring it a new way. But during that whole cycle is this concept of modern monetary theory.

Speaker #2: And the theory is that we can print our way out of this, and then when the economy turns, we'll buy back the debt and shrink it.

Frank Holmes: If we don't have that big performance of assets and cash flow, I don't get a bonus. Investment team, they also want that performance. We continue to look at M&A activity to acquire fund assets. We know that mutual funds trade at a big discount on the M&I because the redemptions continue as an asset class. Old investors stay with you. Quite often they pass away and their kids take over. They want the cash, or they want to go and trade ETFs. We understand that sort of process, and then we understand why M&A activity and fund business is a lot less. ETF business, well, that's different. ETFs have a much more redemption. There's just you get much more trading with it.

Speaker #2: Well, they just don't do it. And each major crisis means that it'll be more than twice the amount of money as the last crisis.

Speaker #2: And so if you have the G20 countries, that's all you have to follow. And we believe that monetary and fiscal policies are a precursor to change.

Speaker #2: In fact, we put it in all of our perspectives, and we track and monitor this to give us an idea from a macro thematic point of view.

Speaker #2: Well, it's not going away. And what's changed is, we saw with the World Economic Forum with Trump and the executive team he had over there, is that it used to be, with the World Trade Organization, the greatest theme was, first and foremost, trade—global trade.

Speaker #2: And it worked. It brought so many people out of poverty, and it helped China and India have accelerated GDPs per capita. It was a phenomenal exercise.

Frank Holmes: What has the strongest in our ecosystem is Registered Investment Advisors. They, they have the highest price to cash flow, price to multiple valuations if you're looking to go buy that business. I'm sharing this with you because we do keep in touch with what's going on in the industry. We grow our subscriber base and followers. That's been very important because we believe that long term, having an intimate relationship, investors stay with you a longer period of time. We've increased our exposure to the Bitcoin ecosystem, predominantly, as HIVE has been redeeming, is buying notes that these ETFs that pay out monthly income. Next, please. Why we buy back our stock?

Speaker #2: But things started to morph and change after 2018. And I'll walk you through why that happened. But there was a change taking place. And so the gold theme didn't go away because the money printing continued for trade and helping with social causes everywhere, and experiments everywhere in the world that the U.S. government was giving to all these NGOs. I even had a friend that has an NGO out of Canada.

Speaker #2: And he was upset because he wasn't going to get the $9 million a year from the U.S. funding. And it amazed me that we were giving money to NGOs in other countries to go and do causes, and that's all changed now.

Frank Holmes: Well, the company believes the stock is undervalued and therefore buys back shares or GROW when the price is flat or down from the previous trading day using an algorithm. This is part of the company's two pillar strategy to enhance shareholder value by paying the dividends as well as the buyback amount per year. Over the past several years, we have not increased the dividend. We have increased substantially our buyback dollar amount. Next, please. The current share repurchase program for the 3 months ended 31 December 2025, the company repurchased a total of 260,195 Class A shares, using cash of approximately $664,000. Over the past 18 months, we have shrunk the shares outstanding by, I would say 18 months by approximately 10%. Next, please. GROW buyback.

Speaker #2: And it’s changed because the priority was first trade, then national security. And then open borders—that whole concept didn’t bother people because it wasn’t a top priority to many of the United Nations and Europe, etc.

Speaker #2: Well, it's now flipped. So what's number one priority is security, then trade. And that was very evident when Trump and his chief of staff, chief of commerce, chief of trade, chief of state—all speaking at the World Economic Forum and NATO.

Speaker #2: And so, it's recognizing that the government's going to continue to spend money, raise money, debt funding, but it's going to go into national security and sovereign issues.

Frank Holmes: I think to give you a recap, you can see by the quarter, the stock, for whatever the reason why, had more down days as gold was ripping and assets were growing. The negativity and the volatility was quite immense. We said that was a great opportunity to buy back our stock, which we did. Next, please. Shareholder yield is an important thought, you know, algorithm to take a look at what is the shareholder yield, and the model is the dividends you pay, the dollars that you look at the total dollars paid in dividends, the total dollars in stock buybacks, and then there's debt reduction. We haven't paid down any debt because we don't have any debt. We've only had money that we've invested in that paid us back.

Speaker #2: So that means that 'follow the money' is actually a little easier—to follow what industries are going to really benefit from this. But it's not going away.

Speaker #2: Next, please. So when you look at the gold bugs, when I first got in this business in 1978, one of the big parts was: what's the total debt?

Speaker #2: So I'm used to, when I got the first in the business, if we go to the far right, what's the total federal debt? And it's $38 trillion.

Speaker #2: And you take the $38 trillion and you divide it by 8 billion ounces of gold that are above the ground—that are known for jewelry, known as security for companies, and security for central banks, etc.

Frank Holmes: What you've seen is that are, you divide that by the market cap, and you compare that to 5-year yields. Next, please. The 5-year yield is an important factor of government bonds because that's what quite often dividend programs are compared to. Quant dividend, so my first model was in 1978 as a young analyst, was a dividend growth model, and it was all comparing stocks that are increasing dividend or their stock buyback. You want to buy those if the yield is higher than the 5-year government bond. If the 5-year government bond yield is higher, then you want to pull back. It's an interesting model, and I share with you that the company has paid monthly dividends since you can see the current yield share price, but since 2007.

Speaker #2: So gold is now $5,500. So, based on only $38 trillion in debt, gold has reached this target. I've always used that as a good proxy for where it's going.

Speaker #2: But then I like to take a look at the arbitrages. What is the total US debt? And so, if you look at the total US debt, it's about $110 trillion.

Speaker #2: Now, you divide that by 8 billion ounces. So, gold could go to $13,000 over the next five, ten years. And the basis looks like it's around $4,700.

Speaker #2: And so, we do see that pressure going higher. So now we talk about the rest of the world. Well, China wants to dethrone the US dollar.

Frank Holmes: We have been paying and stayed pretty consistent in paying yields on a monthly basis. We're one of the few stocks that really companies that pay on a monthly basis. The board has reviewed and approved, approved the quarterly, on a quarterly basis, the dividend. Next, please. The U.S. Global Investors is committed to returning value to shareholders when compared to treasury yields. Gross shareholder yield is 9.89%. The 10-year government bond is right now 4.18%, and the 5-year is 3.73%. As I share with you, that when a 9.89% reflects it, it's still a very attractive proposition for investors. That is another reason why we'll continue to buy back our stock. Next, please. Average assets under management in billions.

Speaker #2: And they have under Xi Jinping, it's really changed. In 2018, when he became dictator for life. And he's done several things that are very significant.

Speaker #2: And he goes and focuses on just the US debt scenario. But really, when you look at China, they have more debt as a whole.

Speaker #2: And so, a bit as a percentage of their GDP, they're more leveraged than us overall. But the real attack is to dethrone the US dollar for global trade.

Speaker #2: And the missiles have been attacking us in every form and fashion. So one of those parts was to trade oil with Saudi Arabia. And they said, well, China wanted them to take Chinese yuan.

Speaker #2: And Saudi Arabia told them five years ago, no, they'd have to own more gold. So they've been steadily buying more gold. They could buy all the gold in the world mined right now for the next eight years.

Frank Holmes: We have 1.42, down to 1.26, back up to 1.4, 1.48, and now it's 1.7, approximately as of today. We've seen the stock all of a sudden pop because there's many fund managers that look at the overall funds every day. They can look at total assets, and they can do a quick approximation. In real time, you can take a look at our overall assets and do a calculations, our revenue growing, and what will that do to cash flow. Next, please. The quarterly EBITDA per share over the last four quarters, you can see that it was negative last year. It turned positive going into September, and in December it was $0.04 a share.

Speaker #2: And they still would just barely get relative to where Fort Knox is. So they're going to be an important dent in that overall bid for gold.

Speaker #2: And so, still, the difference is that these other countries, they carry the gold mark to market. We carry the gold at $35 an ounce.

Speaker #2: If we went to market-to-market, our debt-to-equity, to gold, etc., would go through a big change. And maybe under the Trump administration, that would happen.

Speaker #2: But that would still create more pressure, I think, for gold to trade higher. And the valuation of gold would be higher. So I like to take a look at, okay, here's the U.S.

Frank Holmes: When you look at earnings, Lisa will give you more color on this. The repayment and the high bond is gone. We have a separate audit firm, KPMG, that oversees just the tax and their analysis on it. We have Grant Thornton, that does the funds. Some calculation came out that the previous auditors, BDO, that things should have been done differently. It has a swing in our earnings of going negative this quarter, but it comes back next quarter. When this presentation, I thought it was just best to give you an idea that the EBITDA is improving, and we're very thrilled about that, and it gives us the ability to buy back stock in a very comfortable basis. Next, please.

Speaker #2: Now let's look at the rest of the world. And when we look at the rest of the world, and you say global M2 supply, well, that is—a well-known analyst used to always use this as a forecasting tool.

Speaker #2: And that would be $120 trillion divided by 8 billion ounces. Now we’re talking about $15,000 an ounce of gold. And then if you take a look at all the global debt in the world, and all the members of the United Nations, and you put that together divided by 8 billion ounces of gold, gold’s $43,000.

Speaker #2: So, gold is a very attractive asset. It's not overvalued. I'm asked, is it overvalued when it hit $4,500? And I said, no. And I'm going to explain to you—this is one of the reasons why, and why GROW is uniquely positioned to participate in this re-engineering of investors to all of a sudden buy more gold and gold stocks.

Frank Holmes: How do we compare? I like to compare against WisdomTree because they're a 100% ETF. I like to take a look at US Global, which is almost 70% operating revenues related to ETF. Invesco, who owns QQQ, which is the biggest beast out there, 40% of their assets are QQQ. The look at who trades at the highest price to book, who trades the lowest, and you can see that WisdomTree, if you're a real GARP investor, deep value, then WisdomTree is overvalued, and Invesco and US Global is undervalued. If you look at a return on assets, that WisdomTree has the highest return, for return on our assets are 2.83.

Speaker #2: Next, please. So, gold continues to reach all-time highs. Next, please. But more important, it's more than the S&P, the century. And I tell this, I give this slide out all the time, and people actually don't believe it.

Speaker #2: And I've always advocated for 35 years the 10% golden rule. You should have 10% in gold and gold stocks, and balance every year. And you would have outperformed overall markets.

Frank Holmes: We're so liquid and in respect that, another $200 million or $300 million in assets, and that return on assets starts to change dramatically. That's just important, and we've been through this run where we see that asset flow, that we're so tightly wound that, a $1 billion in assets, just explodes the financial returns and returns on assets. On the pre-tax margins, WisdomTree is 36%. Invesco still has, from their other assets, mutual funds and other funds, the challenges, and they'll work them through. It's a good company. US Global is about 20%.

Speaker #2: It's been, and we're seeing more and more asset allocators come into wanting to have gold and gold stocks. So this is a classic example that gold has been a great diversifier.

Speaker #2: Next, please. Ray Dalio believes that a well-diversified portfolio should have 10% to 15% in gold. And so you got to remember, he's over $150 billion, the largest hedge fund in the world.

Speaker #2: And a very popular author, with videos and movies that are free and very educational on the global scene. A frequent TED Talk speaker. So, Ray Dalio, whom I met in 1970, 1980—actually, that's 1981 in that period—I met him at the Contreras Forum in Vermont in the fall, at a fund management conference.

Frank Holmes: The dividend yield for U.S. Global is less than Invesco, and quite often in the public arena, that if your pre-tax margins are negative then your yield, the stock is sold down, so your yield is higher, and that's what we're seeing. WisdomTree had bigger ETF flows, which we explained to you earlier. There was a lot of flows in the industry, and they captured a fair amount, and with that, their stock prices appreciated, so therefore their dividend yield is less, unless they increase their dividend, which they have not seen. We have price to EBITDA. You can see that Invesco is, is the cheapest, but it's because of they have margin issues to wrestle with. Hopefully the worst is behind for them. I think then they would pop.

Speaker #2: And so, I'm really aging myself now, but I think it's really been helpful to be able to put this in context—what Ray Dalio believes, having gold as social investors.

Speaker #2: Next, please. Here is a very compelling visual. One of the ideas that I've seen before is you take the U.S. ETF market, and you take all the gold ETFs and you divide them in and say, what percentage are gold related?

Speaker #2: And you can see that gold, in 2010, 2012, is when Xi Jinping, the leader of the Communist Party and dictator in China, came to power, and then by 2018, he cements himself as dictator for life.

Frank Holmes: We're at 16, WisdomTree is at 13. So that was undertake to say that we're overvalued, but I would share with you $1 billion of assets going into WisdomTree versus $1 billion coming into Grow. There's much more big bang, a bigger bang for the dollar coming into Grow. Next, please. That's why we have a higher price to EBITDA, I believe. I'm sure some of the savvy hedge funds that own us, they would have different views on this, and that's what makes it. They call it your, your, your mosaic. Every asset class and every portfolio manager, they'd have different mosaics of, of prisms, of how they look at different categories in the full spectrum of the capital markets ecosystem.

Speaker #2: And really becomes a Mao-type of Communist Party person. And he has some strategies to control the world and dethrone the U.S. dollar. What we saw in America was a deinvestment in gold, even though gold turned to outperform.

Speaker #2: It was so frustrating for me to explain what I've shared with you earlier. And there was one group that would be buying these RIAs.

Speaker #2: And tell them they weren't allowed to own individual stocks, only ETFs, and never gold. So, I've been told now that they've just finally gone into gold, and they missed this whole part.

Frank Holmes: Grow 317, $1.4 billion at year-end, now $1.7 billion, $2.5 million quarterly operating revenues. Next, please. A look at Q2 for 2026. The company has a steady cash flow despite a volatile and challenging macro market environment. The company has a strong balance sheet, which includes both cash and other investments, so the company continues to buy back stock on flatter down days and pay a monthly dividend. Next, please. Smart Beta 2.0. It's an important thought process that we've sort of pioneered, and the concept is both the portfolio design top-down, and then bottom-up, the factors that relate to a thematic product of the stock.

Speaker #2: And we used to have one that had, I think, $20 million in our gold funds. And they had to redeem because the new owner did not believe in gold as an asset class.

Speaker #2: But I think we're going to see this mean reversion take place, that gold is going to end up being back to 8% in gold stocks, 8% of all ETFs.

Speaker #2: So, I believe the wind is at our sail, and it makes me very comfortable with where GROW is positioned for this move. Next, please.

Speaker #2: So, silver reached an all-time high. I get more calls and interest in silver. Silver has gone through, and copper both have been, where the spot price has been basically more expensive to get physical delivery than what the futures price was saying.

Frank Holmes: Your stock weightings and then the individual names and what factors you use, because we have found that factors for picking gold stocks are different than picking luxury goods, that are different than picking global resources. Quite often, when you get into resources like global resources, you have to have a bigger weighting into a GARP product, such as you would look at, you want the lower EBITDA to enterprise value, cash flow to enterprise value. The cheaper, the better, because there's tremendous mean reversion across the various resource industries. We believe that using Smart Beta factors in a thematic fund lineup sets us apart from our competition. Our quant approach backtested thousands of hours over decades of data to determine optimized portfolio construction stock factors to rebalance each quarter.

Speaker #2: It's very weird. And the supply of gold has really been going through the inventory. And I kept saying that once that happens for more than a year, that we're going to have this big, explosive move.

Speaker #2: And we have. It's been a phenomenal move in silver. But there are things—inflection points—that happen in capital markets that change. So we saw silver climbing with gold.

Speaker #2: And it was having this nice price appreciation. And you see everyone start publishing their gold-to-silver ratios, and this and that, and why silver.

Speaker #2: And I was a big believer that silver is an important component for other factors. But what really made it take off, besides speculation coming into it, was that silver was officially added to the list of critical minerals.

Frank Holmes: As we've gone to monthly, it has changed some of this, but really, we're still keeping the weighting similar, but we're taking a look at other factors, especially in the gold space for GOAU, so it can capture more momentum that is taking place in the stock space. We're seeing that in IBD last year, for the first time in over a decade, gold stocks represent the top 20 names. Something like 40% are gold stocks, because they have the strongest growth and momentum in revenue, cash flow, and earnings. They would show up, and that means these gold stocks are attracting other technology. What I love about IBD is that it's agnostic, agnostic to the industry. It's more focused on the momentum value factors and institutional liquidity. Next, please.

Speaker #2: Under the Trump administration, that was a game changer. And because we've seen that the government has been investing, and the government itself since World War II has had silver as a strategic stockpile because they know they need silver for weaponry.

Speaker #2: And the same thing in Japan, and the same thing in China. So I said to you earlier that there was a huge shift in Trump going from top priority was trade to number two, with top priority as national security and sovereignty security.

Speaker #2: And we see things like silver being critical minerals. All of a sudden, there's a new wave of institutional buying—buying silver. And you see a short squeeze going on.

Frank Holmes: Why gold, why we're a great proxy for the gold industry? Not only have we been writing for this and have over 100,000 readers in 80 countries. If you're not a subscriber to Invest Learn Frank Talk, it's free. I highly recommend it to you because it really is a great thought process from the investment team, along with myself, on things I see and do that show up in unique writings and observations of capital markets. What's driving gold, especially this decade? Well, yeah, we get a lot of these gold bugs, like I've re-experienced with the Bitcoin fanatics, and you find out that the fanatics really don't own much gold or Bitcoin. They are just, don't like governments.

Speaker #2: And then you see highly leveraged players jumping in for the speculation, and it has this incredible run. And then it has a 40% drop in one day because the futures, which were leveraged at the beginning—this year, a year ago—was like 10-to-1 leverage.

Speaker #2: And they basically moved the leverage to everything to try to slow down the correction. And I think a bunch of stop-losses got hit.

Speaker #2: And then we had, in January, what's really important for investors to recognize for silver was the unwinding of the Japanese carry trade. And that was approximated at about $500 billion.

Frank Holmes: It doesn't matter if you're Democrat or Republican, they're very opinionated, and you just have to sort of manage what the, what they anchor to is the US debt is out of control, it's going to crash, et cetera. It is, it's very, very difficult, but you have to put it in a global context of what the other issues are besides this debt. I'm gonna walk you through if you use some of the gold bug originals, the analysis of how they would forecast the price of gold, and I will walk you through that. We're in that space, and, and it's important because I think this is a underloved space, and I think we have the opportunity of, of building GOAU to $10 billion in assets. Next, please.

Speaker #2: Because the Japanese yen yields were rising, and a lot of hedge funds have borrowed in cheap yen and reinvested in U.S. assets. A lot of leverage, like silver.

Speaker #2: And all of a sudden, now they had to unwind. And it all happened at the same time. And that was a normal, probably healthy, correction.

Speaker #2: Gold has rebounded. Silver was slowly climbing from its lows on that correction. But I remain very bullish on the asset class. And I share with you, don't put all your—don't jump all in, but have cash to buy in the down days.

Speaker #2: Next, please. So, thematic trends—capturing exposure through our funds, going to you—is focused on royalty and streaming. It's a more conservative path of looking at the space.

Frank Holmes: The big picture is really the look at this century, and this century, we have seen gold outperform the S&P 500. Well, why is that? Well, this century, with the World Trade Organization was created in the nineties, China comes in 2002, and the whole world starts to take off after the crisis that we had with the tech bubble in 2000, where many tech stocks were trading at lofty values per revenue, per share, and they never... 50 times revenue per share, all they had were eyeballs, no cash flow revenue. Everything cratered, the internet continued to grow and prosper and bring a new way.

Speaker #2: And now it's becoming, whether it's an active ETF for us, it's going to have a greater tilt to growth and momentum in revenue and cash flow that's driving that royalty.

Speaker #2: Senior money companies that would be user X, longest data points. It was the first no-load gold mutual fund in the world. Long, long history.

Speaker #2: And then U.S. Lux, and connecting the dots. I learned about Bitcoin because of my knowledge of gold. And I learned about data centers because of Bitcoin, as in data centers.

Speaker #2: And then I learned about the idea of creating a war ETF. But in that journey, I learned that 60% of all gold demand is love.

Frank Holmes: During that whole cycle, is this concept of Modern Monetary Theory. The theory is that we can print our way out of this, and then when the economy turns, we'll buy back the debt and shrink it. Well, they just don't do it. Each major crisis means that it'll be more than twice the amount of money for the last crisis. If you have the G20 countries, that's all you have to follow, and we believe that monetary and fiscal policies are a precursor to change. In fact, we put it in all of our prospectuses, and then we track and monitor this to give us an idea from a macro thematic point of view.

Speaker #2: And it’s predominantly Asia and the Middle East that buy and give gold for weddings, for birthdays, for religious holidays. There’s a huge drive for it.

Speaker #2: And it's highly correlated to rising GDP nations that have this cultural affinity. And so, 40% is fear. And what China has done is ignited that fear element.

Speaker #2: Which has been pushing up on the gold and user records in the senior gold producers only. But I also noticed in what's called the 'gray economy' today, is that luxury goods—what I saw in places in Dubai, going to Singapore—just the tremendous growth in high net worth people, and how the smarter luxury companies were creating a scarcity.

Frank Holmes: Well, it's not going away, and what's changed, as we saw with the World Economic Forum, with Trump and the executives team he had over there, is that used to be with the World Trade Organization, the, the greatest theme was, first and more foremost, was trade, global trade. It worked. It brought so many people out of poverty and helped China and India have accelerated GDPs per capita. It was a phenomenal exercise, but things started to morph and change after 2018, and I'll walk you through why that happened. There was a change taking place, and so the gold theme didn't go away because the money printing continued for trade and helping with social causes everywhere and experiments everywhere in the world with money.

Speaker #2: You can go to a Hermès store and you can see a Birkin bag in the window, but you can't buy it unless you're on the President's list.

Speaker #2: And you can only buy two a year. Very few get on that list. They're immediately sold out, and when they are used, they're bought by the 1% of the world's population.

Speaker #2: They buy them and store them, just like people buy art. Oh, you got a new Warhol back in the day—a Warhol print that came out of Mao. A thousand dollars each year, it was a different color face of Mao.

Frank Holmes: The amount of money that the US government was giving to all these NGOs, I even had a friend that is an NGO out of Canada, and he was upset because he wasn't gonna get the $9 million a year from the US funding. It amazed me that we were giving money to NGOs in other countries to go and do causes, and that's all changed now. It's changed because the priority was first trade, then national security, and then open borders. That whole concept didn't bother people because it wasn't a top priority to many of the United Nations and Europe, et cetera. Well, it's now flipped. What's number one priority is security, then trade.

Speaker #2: They went to 50,000. And so you're seeing this happen with cars. You're seeing that car companies turned around. And we saw that with the Rolls-Royce experience.

Speaker #2: Bentley—even Porsche has done it. And we know that Ferrari are the best masters of the universe at only producing so many cars each year, raising the price.

Speaker #2: So they become collectors' items. And so they Birkin bag one at the store, and then on the open market, it's worth three times more. It's recognizing this sort of thought process as a business model.

Speaker #2: And that's where luxury goods is. And it's the only real fund that's out there. Ten percent is in quality gold stocks and has far outperformed any of its peers. Next, please.

Frank Holmes: That was very evident with Trump and his Chief of Staff, and Chief of Commerce, Chief of Trade, Chief of State, all speaking at the World Economic Forum in NATO. It's recognizing that the government's gonna continue to spend money, raise money, debt funding, but it's going to go into national security and sovereign issues. That means that the, the follow the money is a little actually easier to follow what industries are gonna really benefit from this, but it's not going away. Next, please. When you look at the gold bugs, when I first got in this business in 1978, and, and, and, and one of the big parts was: What's the total debt?

Speaker #2: So, back to Ray Dalio. Capital war fears. The monetary order is breaking down, he says. That's why for gold. Next, please. And a lot of that is the fear element.

Speaker #2: This is to give you an idea of the Russian Arctic installations. As climate change has taken place and there's been melting of ice, Russia's built 40 icebreakers, of which I think 10 are nuclear.

Speaker #2: China, out of nowhere, says, "Oh, we're near the Arctic and we own the Arctic too." And they built five icebreakers. They have more icebreakers than America or Canada.

Speaker #2: So now there's a big push in Canada and the US to build more icebreakers because we have to protect, because China was trying to buy a World War II military base in Greenland.

Frank Holmes: I used to when I got first in the business, if we go to the far right, what's the total federal debt? It's $38 trillion. You take the $38 trillion and you divide it by 8 billion ounces of gold that are above the ground, that are known for jewelry, known as security for companies and security for central banks, et cetera. Gold is now $5,500. Based on only $38 trillion in debt, gold has reached its target. I've always used that as a good proxy for where it's going, but then I like to take a look at the arbitrages. What is the total US debt? If you look at the total US debt, it's about $110 trillion.

Speaker #2: And that's a great concern, while Russia basically created all these missile places and launches. Next, please. That fear trade shows up in gold. Next slide, please.

Speaker #2: So, Greenland—I honestly disappointed President Trump. I think he takes his presentations and runs them through OpenShot, and takes them down to grade three.

Speaker #2: To talk to the masses. But the whole theory in Greenland really is about strategic missiles coming across. And their early warning system on the DEW Line in Northern Canada and Greenland is key to stopping America from getting wiped out by Russian ballistic missiles.

Frank Holmes: Now, you divide that by 8 billion ounces, gold could go to $13,000 over the next 5, 10 years, and the base, it looks like it's around $4,700. We still see that pressure going higher. Now we'll talk about the rest of the world. Well, China wants to to dethrone the US dollar, and they have under the Xi Jinping, it's really changed since 2018 when he became dictator for life. He's done several things that are very significant, and he goes and focuses on just the US debt scenario. Really, when you look at China, they have more debt as a whole. It's a bit, as a percentage of their GDP, they're more leveraged than us overall.

Speaker #2: And so the idea of Greenland, with only 57,000 people, really changed when China showed up with billions of dollars to build four big airports.

Speaker #2: For military planes—well, why would they do that? So this sort of storytelling gets out there, and we're seeing central banks now becoming worried.

Speaker #2: They're buying more gold. Next, please. This gives you an idea of the military bases and shipping routes around the Arctic Circle. They call this the 'Ice Arctic Silk Road.'

Speaker #2: But it has become a serious issue. I think in 2018, Russia sent [something] to the bottom of where the Arctic Circle is. It was on the Canadian side.

Speaker #2: And said it's theirs. They sent a water or aqua drone down to the bottom and planted the Russian flag. These are sort of machine-macho type of activities by Putin and Xi Jinping.

Frank Holmes: Their real attack is to dethrone the US dollar for global trade. The missiles have been attacking us in every form and fashion. One of those parts was to trade oil with Saudi Arabia, and then they said, well, China wanted them to take Chinese yuan, and Saudi Arabia told them 5 years ago, no, they have to own more gold. They've been steadily buying more gold. They could buy all the gold in the world mined right now for the next 8 years, and they still would just barely get relative to where Fort Knox is. They're gonna be an important dent in that overall bid on, for gold. We still, the difference is that these other countries, they carry the gold mark to market.

Speaker #2: And that greatly concerns the State Department. Next, please. So, China’s BR. I thought this was a great idea. It was a romantic idea of Marco Polo and Genghis Khan; that's the Silk Road between China over to Turkey.

Speaker #2: And opened up for trade, and China would bring through how to make railways through difficult areas, etc. But really, all along, for Xi Jinping, it's been a Trojan horse.

Speaker #2: Can I get into your economy? And it was originally 12 countries. Next, please. And now it's grown to 150 countries. So I immediately want to know how many countries are in the United Nations—it's 193.

Frank Holmes: We carry the gold at $35 an ounce. If we went to market to market, our debt to equity, to gold, et cetera, would go through a big change. Maybe under the Trump administration that would happen, that would still create more pressure, I think, for gold to trade higher, and the valuation of gold would be higher. I like to take a look at, okay, well, here's the US, now let's look at the rest of the world. When we look at the rest of the world and you say a global M2 supply, well, that is a well-known analyst used to always use this as a forecasting tool, and that would be $120 trillion, divided by 8 billion ounces.

Speaker #2: So that means China has spent, too, 75% of the UN is influenced by China. It's left $1.3 trillion to 150 of the 193 countries that represent the United Nations.

Speaker #2: They are having a big influence. And they are saying that you can't trade in dollars. And so people have to trade in yuan. Then they have to go find a currency.

Speaker #2: A bank that converts that into dollars to buy anything from America. It's just this assault. So they weaponized One Belt, One Road into One Belt, One Road of communism around the world.

Frank Holmes: Now we're talking about $15,000 an ounce of gold. Then if you take a look at all the global debt in the world and all the members of the United Nations, and you put that together, divided by 8 billion ounces of gold, gold's $43,000. Gold is a very, you know, attractive asset. It's not overvalued. I'm asked, Is it overvalued when it hit $4,500? I said, No. I'm gonna explain to you, this is one of the reasons why, and why GROW is uniquely positioned to participate in this re-engineering of investors to all of a sudden buy more gold and gold stocks. Next, please. Gold continues to reach all-time highs. Next, please. More important is more than the S&P this century.

Speaker #2: We've seen democracy fall to an all-time low. You see on this map of Australia where Darwin is. Now, Darwin is one of the biggest ports for exporting iron ore.

Speaker #2: And it's also one of the biggest cable is for moving information to Singapore. Strangely enough, the Chinese bought this 10 years ago. The government from the government paid 500 million dollars.

Speaker #2: But Australia has done a 180 on that. Because they did military excursions all around the island of Australia, showing their aircraft carrier and their weaponry.

Speaker #2: And Australia said, "Okay, we can't trust them. And we're buying back the port." And China tried to block it, but it's going to happen.

Speaker #2: As I was at an event in Harvard two weeks ago, and it was all about Rudd Spoke, the former prime minister. And that's going to take place.

Frank Holmes: I tell this, I give this slide out all the time, and people actually don't believe it. I've always advocated for 35 years, the 10% golden rule, you should have 10% in gold or gold stocks and balance every year, and you would have outperformed overall market suspension. We're seeing more and more asset allocators coming to wanting to have gold and gold stocks. This is a classic example that gold has been a great diversifier. Next, please. Ray Dalio believes that a well-diversified portfolio should have 10% to 15% in gold. You got to remember, he's over $150 billion, the largest hedge fund in the world, and very popular author and videos and movies that are free, very educational on the global scene.

Speaker #2: So that tension shows up in the world of gold. The money printing shows up in gold. So it's important for investors, which is why I believe, as you're comfortable, we're in a sectorable market in gold.

Speaker #2: Next, please. So these are some of the companies in our war ETF—innovative, and RTX, Raytheon. You can see great charts. Next, please. So we found this product as an understanding of where money flows, because the budget of the government is pretty straightforward.

Speaker #2: We're going to go and spend a trillion dollars, and of that, half of it's going to be for healthcare and salaries of the military.

Speaker #2: Now, we’re left with $500 billion. Of that $500 billion, this much is going to go for tanks. This is for aircraft. This is going to go for cybersecurity.

Frank Holmes: A Fred, a TED Talk speaker. Ray Dalio, who I met in 1970-- 1980, so, 1981, in that period, I met him at the Country Forum in Vermont in the fall at a, at a, fund management, conference. I'm really aging myself now, but I think it's really been helpful to put this in context, what, what Ray Dalio believes have in gold as social investors. Next, please.

Speaker #2: It's pretty easy to figure out now. So, which companies get the contracts and have the strongest revenue momentum? They're the best-performing stocks. And you can use data analysis going back.

Speaker #2: So, I want to share that I think that cybersecurity is down 28%. Semiconductor is okay. But we're basically looking at these thematics and recognizing why it's important for battle.

Speaker #2: Next, please. Because the priorities that were changed. And this is a classic example that when Noriega was captured in 1989, many American soldiers were killed.

Frank Holmes: Here is a very compelling visual, and one of the ideas of, that I've saw before, is you take the US ETF market, and you take all the gold ETFs, and you divide them in, and you say, what percentage are gold-related? You can see that gold in 2010-2012, is when Xi Jinping, the leader of the Communist Party and dictator in China, came to power. Then by 2018, he cements himself as dictator for life and really becomes a, a Mao type of the Communist Party person, and he has some strategies to control the world and dethrone the US dollar. What we saw in America was a disinvestment in gold, even though gold continued to outperform.

Speaker #2: None were killed on the last attack, of going in and getting Maduro. And we look at the next visual, and I can explain to you, connecting the dots.

Speaker #2: Next, please. There's the hyperlink between military aircraft, which you can see in the bottom left-hand side. This is NVIDIA's supercluster chips. And that hyperlink is so important with the aircraft, with the aircraft carrier.

Speaker #2: And along with satellites in space, that movement and flow is how they were able to go in with the minimum amount of anyone being wounded.

Frank Holmes: It was so, so frustrating for me to explain, which I've shared with you earlier. There was one group that would be buying these RIAs and tell them they weren't allowed to own individual stocks, only ETFs, and never gold. I'm told now that they've just finally gone into gold, and they missed this whole part. We used to have one that had, I think, $20 million in our gold funds, and they had to redeem because the new owner did not believe in gold as an asset class. But y- I think we're going to see this mean reversion take place, that gold is gonna end up being back to 8%, and gold stocks, 8% of all ETFs. I believe-...

Speaker #2: So this is a growth cycle. And that's what I learned regarding Hive. Is that Hive is in the data center business. It's been tier one, tier three data centers.

Speaker #2: Tier three data centers are for high-performance computing and AI. And it's only a growth cycle. There's a shortage of manufacturing parts to make these data centers.

Speaker #2: But the demand is huge. You just think of it being people, like, 'We want to use our Open Chat and Grok.' No, it's bigger than that because the US military is trying to buy as many data centers as get contracts.

Speaker #2: Just the contract. You have H100, 200 chips there. And they're going into contracts that last a good period of time. Next, please. So now I'm going to turn it over to Lisa.

Frank Holmes: The wind is at our sail, and that makes me very comfortable with where GROW is positioned for this move. Next, please. Silver reached an all-time high. I get more calls and interest in sh-- on silver. Silver has gone through, and copper, both of them have been where the spot price has been basically, more expensive to get physical delivery than what the futures price was saying. It's very weird, and the supply of gold has really been going through the inventory. I kept saying that once that happens for more than a year, that we're gonna have this big explosive move, and we have. It, it's been a phenomenal move in silver, but there's things that, inflection points that happen in capital markets that change.

Speaker #2: I've been very long-winded. I apologize—I'm sorry. But I really want to try to paint a picture that I'm so enthusiastic that the wind is hitting our sail.

Speaker #2: Gold has much more upside. There are many factors for that. And that led to the creation of a new product called WAR. It's the application of AI as America rebuilds all of its military.

Speaker #2: And drones. So there's going to be much more money going into that, and we will capture that in war with an active ETF. Last year, the market was up about 12%.

Speaker #2: And our WAR was up 24%, so it is doing a great job. I'm very thrilled about it. And gold, it is as much more on the upside.

Speaker #2: So, thank you very much, ladies and gentlemen. Now I want to turn it over to Lisa Callicotte, our CFO. Thank you, Frank. Good morning. On the next slide, I'll start with kind of an overview of our financial highlights.

Frank Holmes: We saw silver climbing with gold. It was having this nice price appreciation. You see everyone start publishing their gold to silver ratios and this and that. Why silver? I was a big believer that silver is an important component for other factors, but what really made it take off, besides the speculation that came into it, silver officially was added to the list of critical minerals. Under the Trump administration, that was a game changer. Because we've seen that the government has been investing, the government itself, since World War II, has had silver as a strategic stockpile because they know they need silver for weaponry, the same thing in Japan and the same thing in China.

Speaker #2: Average assets under management were $1.48 billion. And our operating revenues were $2.5 million. Pre-tax income was $535,000. We move on to the next slide.

Speaker #2: This talks about the breakout of our earnings. We have operational earnings, which is made up of our advisory services. And then we have other earnings.

Speaker #2: And this is mainly made up of realized and unrealized gains and losses on our investments. Both our advisory earnings and our investment gains and losses fluctuate based on market forces.

Frank Holmes: I said to you earlier that there was a huge shift in Trump going from top priority was trade, to number two, where top priority is national security and sovereignty security, and we see things like silver being critical minerals. All of a sudden, there's a new wave of institutional buying, buying silver. You see a short squeeze going on, then you see highly leveraged players jumping in for the speculation. It has this incredible run, then it has a 40% drop in one day, 'cause the futures, which were leveraged at the beginning, this year, a year ago, it was like 10 to 1 leverage, they basically removed the leverage to do everything to try to slow down the correction. I think a bunch of stop losses got hit.

Speaker #2: As we travel to the next slide, we'll get into more details of our financial statements for the quarter. Our total operating revenues was $2.5 million for the quarter.

Speaker #2: This is an increase of 279,013% from 2.2 million the same quarter last year. The increase is primarily due to increases in the USGIF assets under management, especially in our equity mutual funds.

Speaker #2: And this is partially offset by a decrease in our JETS ETF assets under management. Operating expenses for the current quarter were $2.6 million, a decrease of $172,000 or 6%.

Speaker #2: Primarily due to decreases in general and administrative expenses of $207,000, or 15%, mainly due to lower ETF-related costs. And it was partially offset by an increase in employee compensation benefits of $45,000, or 4%, mainly due to higher bonuses based on performance.

Frank Holmes: Then we had in January, what's really important for investors to recognize for silver, was the unwinding of the Japanese carry trade, and that was approximately about $500 billion, because the Japanese yen yields were rising and a lot of hedge funds had borrowed in cheap yen and reinvested in US assets, a lot of leverage like silver. All of a sudden now they had to unwind, and it all happened the same time, and that was a normal, probably healthy correction. Gold has rebounded. Silver will slowly climb from its lows on that correction. I remain very bullish on the asset class, and I share with you, don't jump all in, but buy, have cash to buy in the down days.

Speaker #2: On the next slide, you can see our operating loss for the quarter was $88,000. But it was a favorable change of $451,000 compared to the same quarter for fiscal year 2025.

Speaker #2: Other income increased $200,000 compared to the prior year, mainly due to unrealized gains and losses on investment securities in the current year being $28,000 compared to unrealized losses in the prior year of $221,000.

Speaker #2: Resulting in a favorable change of $249,000. Realized foreign currency gains were $57,000 compared to losses of $239,000—again, another favorable change of $296,000. But these changes were partially offset by lower interest and realized gains due to principal payments on the Hive convertible venture.

Frank Holmes: Next, please. Thematic trends, capturing exposure through our, our funds. GOEU is focused on royalty and streaming. It's a more conservative path at looking at the space, and now it's becoming, where there's an active ETF for us, it's going to have a greater tilt to growth and momentum in revenue and cash flow that's driving that royalty. Senior mining companies, that would be USRX, longest data points. It was the first no low gold mutual fund in the world, long, long history. Then USLUX, and, and, and connecting the dots, I learned about Bitcoin because of my knowledge of gold, and I learned about data centers because of Bitcoin is in data centers. Then I learned about the idea of creating a war ETF.

Speaker #2: Net loss after taxes for the quarter was $846,000, or a loss of $0.07 per share, which is an unfavorable change of $760,000 compared to net loss of $86,000, or $0.01 per share, in the same quarter of fiscal year 2025.

Speaker #2: But this net loss was due to a tax adjustment of approximately $1.3 million, related to the tax treatment of certain securities. The company has filed a tax accounting method change with the IRS related to those securities.

Speaker #2: And we expect to record an offsetting benefit in 2026. The net tax expense related to the method change is expected to be zero for the fiscal year.

Frank Holmes: In that journey, I learned that 60% of all gold demand is love, and it's predominantly of Asia and the Middle East that buy and give gold for weddings, for birthdays, for religious holidays. There's a huge drive for it, and it's highly correlated to rising GDP per capita of other nations that have this cultural affinity. So 40% is fear, and what China has done is ignited that fear element, which has been pushing up on the gold and USRX is in the senior gold producers only. I also noticed in what they call the K economy today, is that luxury goods, what I saw in places in Dubai, going to Singapore, just the tremendous growth in high net worth people and how the smarter luxury companies were creating a scarcity.

Speaker #2: But due to GAAP reporting requirements, we recorded an expense in the quarter ending December 31, 2025, and then expect to record an offsetting benefit for the quarter ending March 31, 2026.

Speaker #2: Moving to the next slide, we see we have a strong balance sheet, including high levels of cash and securities. Cash and cash equivalents were approximately $25.2 million.

Speaker #2: At December 31st, 2025, an increase of approximately 675,000, or 3%, since June 2025. Current investments total $9.2 million. On the next slide, we see our other assets.

Speaker #2: And the total of all the investments included in other assets is approximately $6.5 million. On the next slide, you see our liabilities. They did increase from June 30, 2025, by approximately $193,000.

Frank Holmes: You can go to Hermès store, and you can see a Birkin bag in the window, but you can't buy unless you're on the president's list, and you can only buy two a year. A very few get on that list. They're merely sold out, and they're used, they're bought by the one percent of the world's population. They buy them and store them as like people buy art. Oh, he got a new Warhol, back in the day with Warhol prints, that came out of Mao, $1,000. Each year was a different color face of Mao. They went to $50,000. So you're seeing this happen with cars.

Speaker #2: But on the next slide, you can see our stockholders' equity detail. And at December 31, 2025, our company had a net working capital of $36.7 million.

Speaker #2: And at a current ratio of 19.4 to 1. With that, I will pass it over to Holly to discuss marketing and distribution.

Speaker #3: Thank you, Lisa. All right. On the next slide, this highlights our commitment to delivering timely, original market insights through YouTube and TikTok, which are both powerful platforms for engaging both new and long-time shareholders.

Frank Holmes: You're seeing that car companies turned around, and we saw that with Rolls-Royce experience, Bentley, even the Porsche has done it, and we know that Ferrari is the best masters of the universe of only producing so many cars and each year raising the price. They become collector's items, and so the Birkin bag is a collector's item. If you can get one at the store, in the open market, it's worth three times more. It's recognizing this sort of thought process as a business model, and that's where luxury goods is, and it's the only real fund that's out there. 10% is in quality gold stocks, and this far outperformed any of its peers. Next, please. Back to Ray Dalio, capital war fears.

Speaker #3: Some of the recent highlights include our popular videos on gold, what's driving it, and what could come next, along with two global market updates featuring retired Lieutenant General John Evans, who shared valuable geopolitical insights with us just recently.

Speaker #3: So, if you have not seen those, we encourage you to visit and subscribe to our YouTube channel to stay current with our latest content.

Speaker #3: On the next slide, I'd like to spotlight several recent interviews featuring Frank Holmes from the past quarter. These include appearances on Money Metals Exchange, Free Market Prep—which streams live on YouTube and X—the Investing News Network, and finally, Financial Fox.

Speaker #3: And all of these can be found on their respective websites or channels. But also, we share them across our social media channels as well.

Speaker #3: All right. Moving to the next slide, you can see here that this is our updated 2025 Periodic Table of Commodity Returns. So this is one of our most popular annual pieces.

Frank Holmes: The monetary order is breaking down, he says, That's why for gold. Next, please. A lot of that is the fear element. This is to give you an idea of the Russian Arctic installations. As the climate change has taken place and there's been melting of ice, Russia's built 40 icebreakers, of which I think 10 are nuclear. China, out of nowhere, says, Oh, we're near the Arctic, and we own the Arctic too, and they've built 5 icebreakers. They have more icebreakers than America or Canada. Now there's a big push in Canada and US to build more icebreakers because we have to protect, because China was trying to buy a World War II military bases in Greenland, and that's a great concern. While Russia basically created all these missile places and launches. Next, please.

Speaker #3: And it is fully interactive on our website. So, you can click on any individual commodity to track its highs and lows over time, making it an engaging way to visualize the leaders and laggards.

Speaker #3: It also offers helpful perspective on what drove results last year and which areas may be poised for a correction or rebound this year, in 2026.

Speaker #3: All right. On the next slide, we always like to recap the most read Frank Talk blog post during the recent quarter. So as you can see here, the top theme that remained in focus for another quarter was gold, for sure.

Speaker #3: We hosted a webcast at the start of the year also, about a month ago, covering precious metals and the commodity space. Commodity moves are definitely another area of the market where investors are focused and really paying attention to.

Frank Holmes: That fear trade shows up in gold. Next slide, please. Greenland, I honestly disappointed that President Trump, I think he takes his presentations and runs them through OpenShot and takes them down to grade three to talk to the masses. The whole theory on Greenland really is about strategic missiles coming across, and the early warning system on the DEW line in northern Canada and Greenland is key to stopping America from getting wiped out by Russian ballistic missiles. The idea of Greenland, with only 57,000 people, really changed when China showed up with $ billions to build four big airports for military planes. Well, why would they do that? This, this sort of storytelling gets out there, and we're seeing central banks now becoming worried, and they're buying more gold. Next, please.

Speaker #3: All right. Finally, on my last slide, I want to encourage you all to follow U.S. Global on social media. We're on X, formerly Twitter, LinkedIn, YouTube, Instagram, and Facebook.

Speaker #3: So, wherever you prefer to get your news, be sure to check us out. That way, you're up to date on everything that's going on.

Speaker #3: All right. As a reminder to our audience, if you have any questions today, please email us at info@usfunds.com, and we will gladly follow up with you to clarify anything you may need more information on.

Frank Holmes: This gives you an idea of the military bases and shipping routes around the Arctic Circle. They call this the Ice Arctic Silk Road, but it's become a serious issue. I think in 2018, Russia sent to the bottom of the, where the Arctic Circle is, it was on the Canadian side, and said it's theirs. They sent a water or aqua drone down to the bottom and planted the Russian flag. This is sort of macho, a macho type of activities by Putin and Xi Jinping, and that greatly concerns the State Department. Next, please. China's BR. I thought this was a great idea. It was a romantic idea of Marco Polo and Genghis Khan.

Frank Holmes: That's the Silk Road between China over to Turkey, and opened up for trade, and China would bring through how to make railways through difficult areas, et cetera. Really all along for Xi Jinping, it's been a Trojan horse. Can I get into your economy? It was originally 12 countries. Next, please. Now it's grown to 150 countries. I immediately want to know how many countries are in the United Nations. It's 193. That means China has lent to 75% of the UN is influenced by China. It's lent $1.3 trillion to 150 out of the 193 countries that represent the United Nations.

Frank Holmes: They are having a big influence, and they are saying that you can't trade in dollars. People have to trade in yuan, and they have to go find a currency, a bank that converts that into dollars to buy anything from America. It's just this assault. They weaponized One Belt One Road into One Belt One Road of communism around the world. We've seen democracy fall to an all-time low. You see on this map of Australia where Darwin is? Well, Darwin is one of the biggest ports for exporting iron ore, and it's also where the biggest cable is for moving information to Singapore. Strangely enough, the Chinese bought this 10 years ago.

Frank Holmes: The government the government paid $500 million, but Australia's done a 180 on that because they did military excursions all around the island of Australia, showing their aircraft carrier and their weaponry. Australia said, "Okay, we can't trust them, and we're buying back the port." China tried to block it, but it's gonna happen. As I was at an event up in Harvard two weeks ago, it was all about Rudd spoke, the former prime minister, and that's what's going to take place. That tension shows up in the world of gold. The money printing shows up in gold. It's important for investors why I believe it's comfortable, we're in a secular bull market in gold. Next, please.

Frank Holmes: These are some of the companies in our war ETF, Innovative, and RTX Raytheon. You can see great charts. Next, please. We found this product as a, a understanding where money flows because the budget of the government is pretty straightforward. We're gonna go and spend $1 trillion, and of that, half of it's gonna be for healthcare and salaries of the military. Now, we're left with $500 billion. Of that $500 billion, this much is gonna go for tanks, this is for aircraft, this is gonna go for cybersecurity. It's, it's pretty easy to figure out now. Which companies get the contracts and have the strongest revenue momentum, they're the best performing stocks. And, and, and you can do data analysis going back.

Frank Holmes: I, I want to assure you that I think that cybersecurity is 28% is coming down. Semiconductor is okay, we're, we're, we're basically looking at these thematics and, and recognizing why they're so important for battle. Next, please. The priorities of the world have changed, and this is a classic example that when Noriega was captured in 1989, many American soldiers were killed. None were killed on the last attack of going in and getting Maduro. If you look at the next visual, I can explain to you connecting the dots. Next, please. There's a, the hyperlink between military aircraft with, with, which you can see in the bottom left-hand side. This is NVIDIA's super clustered chips.

Frank Holmes: That hyperlink is so important with the aircraft, with the aircraft carrier, and along with satellites in space. That movement and flow is how they were able to go in with the minimal amount of anyone being wounded. This is a growth cycle, and that's what I learned regarding Hive, is that Hive is in the data center business. It's building Tier 1, Tier 3 data centers. Tier 3 data centers are for high-performance computing AI, and it's only a growth cycle. There's a shortage of manufactured parts to make these data centers, but the demand is huge. You just think of it being, people like, oh, we want to use your OpenShot and Groq.

Frank Holmes: No, it's bigger than that because the US military is trying to buy as many data centers as get contracts. They don't want to own the data center, they want just the contract. You have H100, 200 chips there, and they're going into contracts that last a good period of time. Next, please. Now I'm going to turn over to Lisa. I've been very long-winded. I apologize. I'm sorry, but I really want to try to paint a picture that I'm so enthusiastic that the wind is hitting our sail. Gold has much more upside. There's many factors for that, and that led to the creation of a new product called WAR.

Frank Holmes: It's the application of AI as America rebuilds all of its military and drones, so there's going to be much more money going into that, and we will capture that in WAR with an active ETF. Last year, the market was up about 12%, and our WAR was up by 24%. It is, it's doing a great job. I'm very thrilled about it. Gold, it is, has much more on the upside. Thank you very much, ladies and gentlemen. Now I want to turn it over to Lisa Callicott, our CFO.

Lisa Callicott: Thank you, Frank. Good morning. On the next slide, I'll start with kind of an overview of our financial highlights. Average assets under management were $1.48 billion, and our operating revenues were $2.5 million. Pre-tax income was $535,000. We move on to the next slide. This talks about the breakout of our earnings. We have operational earnings, which is made up of our advisory services, and then we have other earnings, and this is mainly made up of realized and unrealized gains and losses on our investments. Both our advisory earnings and our investment gains and losses fluctuate based on market forces. As we travel to the next slide, we'll get into more details of our financial statements for the quarter. Our total operating revenues was $2.5 million for the quarter.

Lisa Callicott: This is an increase of 279,013% from the $2.2 million the same Q last year. The increase is primarily due to increases in the USGIF assets under management, especially in our mutual equity or equity mutual funds. This was partially offset by a decrease in our JETS ETF assets under management. Operating expenses for the current Q were $2.6 million, a decrease of $172,000 or 6%, primarily due to decreases in general and administrative expenses, $207,000 or 15%, mainly due to lower ETF-related costs, and was partially offset by an increase in employee compensation benefits of $45,000 or 4%, mainly due to higher bon- bonuses based on performance.

Lisa Callicott: On the next slide, you can see our operating loss for the quarter was $88,000, it was a favorable change of $451,000 compared to the same quarter for fiscal year 2025. Other income increased $200,000 compared to prior year, mainly due to unrealized gains and losses on investment securities in the current year being $28,000, compared to unrealized losses in the prior year of $221,000, resulting in a favorable change of $249,000. Realized foreign currency gains were $57,000 compared to losses of $239,000. Again, another favorable change of $296,000. These changes were partially offset by lower interest in realized gains due to principal payments on the high convertible debenture.

Lisa Callicott: Net loss after taxes for the quarter was $846,000, or a loss of $0.07 per share, which is an unfavorable change of $760,000 compared to net loss of $86,000 or $0.01 per share the same quarter, fiscal year 2025. This net loss was due to a tax adjustment of approximately $1.3 million related to the tax treatment of certain securities. The company has filed a tax accounting method change with the IRS related to those securities, and we expect to record an offsetting benefit in the quarter ending 31 March 2026.

Lisa Callicott: The net tax expense related to the method change is expected to be zero for the fiscal year. Due to GAAP reporting requirements, we recorded an expense in the Q4 ending 31 December 2025, and then expect to record an offsetting benefit for the Q1 ending 31 March 2026. Moving to the next slide, we see we have strong balance sheet, includes high levels of cash and securities. Cash and cash equivalents was approximately $25.2 million at 31 December 2025, an increase of approximately $675,000, or 3%, since June 2025. Current investments total $9.2 million. On the next slide, we see our other assets. The total of all the investments included in other assets is approximately $6.5 million. On the next slide, you see our liabilities.

Lisa Callicott: They did increase from 30 June 2025 by approximately 193,000. On the next slide, you can see our stockholders' equity detail. At 31 December 2025, our company had a net working capital of $36.7 million and a current ratio of 19.4 to 1. With that, I will pass it over to Holly to discuss marketing and distribution.

Holly: Thank you, Lisa. All right, on the next slide, this highlights our commitment to delivering timely, original market insights through YouTube and TikTok, which both are powerful platforms for engaging both new and longtime shareholders. Some of the recent highlights include our popular videos on gold, what's driving it, and what could come next, along with two global market updates featuring retired Lieutenant General John Evans, who shared valuable geopolitical insights with us just recently. If you have not seen those, we encourage you to visit and subscribe to our YouTube channel to stay current with our latest content. On the next slide, I'd like to spotlight several recent interviews featuring Frank Holmes from the past quarter, including appearances on Money Metals Exchange, PreMarket Prep, which streams live on YouTube and X.

Holly Schoenfeldt: Thank you, Lisa. All right, on the next slide, this highlights our commitment to delivering timely, original market insights through YouTube and TikTok, which both are powerful platforms for engaging both new and longtime shareholders. Some of the recent highlights include our popular videos on gold, what's driving it, and what could come next, along with two global market updates featuring retired Lieutenant General John Evans, who shared valuable geopolitical insights with us just recently. If you have not seen those, we encourage you to visit and subscribe to our YouTube channel to stay current with our latest content. On the next slide, I'd like to spotlight several recent interviews featuring Frank Holmes from the past quarter, including appearances on Money Metals Exchange, PreMarket Prep, which streams live on YouTube and X.

Holly: We have Investing News Network and finally, FinancialFox, all of these can be found on their respective websites or channels, but also we share them across our social media channels as well. Moving to the next slide. You can see here that is our updated 2025 periodic table of commodity returns. This is one of our most popular annual pieces, and it is fully interactive on our website. You can click on any individual commodity to track its highs and lows over time, making it an engaging way to visualize the leaders and laggards. It also offers helpful perspective on what drove results last year and which areas may be poised for a correction or a rebound this year in 2026.

Holly Schoenfeldt: We have Investing News Network and finally, FinancialFox, all of these can be found on their respective websites or channels, but also we share them across our social media channels as well. Moving to the next slide. You can see here that is our updated 2025 periodic table of commodity returns. This is one of our most popular annual pieces, and it is fully interactive on our website. You can click on any individual commodity to track its highs and lows over time, making it an engaging way to visualize the leaders and laggards. It also offers helpful perspective on what drove results last year and which areas may be poised for a correction or a rebound this year in 2026.

Holly: All right, on the next slide, we always like to recap the most-read Frank Talk blog post during the recent quarter. As you can see here, the top theme that remained in focus for another quarter was gold, for sure. We hosted a webcast at the start of the year also, about a month ago, covering precious metals and the commodity space. Commodity moves are definitely another area of the market where investors are focused and really paying attention to. All right, finally, on my last slide, I want to encourage you all to follow U.S. Global on social media. We're on X, formerly Twitter, LinkedIn, YouTube, Instagram, and Facebook. Wherever you prefer to get your news, be sure to check us out. That way, you're up to date on everything that's going on.

Holly Schoenfeldt: All right, on the next slide, we always like to recap the most-read Frank Talk blog post during the recent quarter. As you can see here, the top theme that remained in focus for another quarter was gold, for sure. We hosted a webcast at the start of the year also, about a month ago, covering precious metals and the commodity space. Commodity moves are definitely another area of the market where investors are focused and really paying attention to. All right, finally, on my last slide, I want to encourage you all to follow U.S. Global on social media. We're on X, formerly Twitter, LinkedIn, YouTube, Instagram, and Facebook. Wherever you prefer to get your news, be sure to check us out. That way, you're up to date on everything that's going on.

Holly: All right, as a reminder to our audience, if you have any questions today, please email us to info@usfunds.com, and we will gladly follow up with you to get anything clarified that you may need more information on. Thank you so much for tuning in today.

Holly Schoenfeldt: All right, as a reminder to our audience, if you have any questions today, please email us to info@usfunds.com, and we will gladly follow up with you to get anything clarified that you may need more information on. Thank you so much for tuning in today.

Q2 2026 U.S. Global Investors Inc Earnings Call

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