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U.S. Global Investors Announces Results of Non-Cash Adjustments to Its Financial Statements for Periods Ended March 31, 2021
San Antonio, TX, Nov. 17, 2021 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm that
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"San Antonio, TX, Nov. 17, 2021 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm that focuses on specialized markets around the world, today announces that it is filing its restated consolidated financial statements that include non-cash adjustments for the three- and nine-month periods ended March 31, 2021. The Company has also begun the finalization process of its 10-K and expects to file within a few weeks. As discussed in a previous press release, adjustments based on a binomial options pricing model, which have had no impact on the Company’s cash balances for the period, were made to reflect valuation changes in corporate investments. The adjusted corporate investments were purchased in January 2021 and consist of unsecured convertible debentures and stock purchase warrants in a public company. Also included in the restatement were immaterial revisions to the classification of short-term government-sponsored loan forgiveness and presentation of changes in unrealized gains and losses in securities and proceeds on sales of current investments. Again, no adjustments had any impact on cash balances. The main impact of these adjustments to previously reported financial statements is an increase in the Company’s assets of approximately $5.8 million and a decrease in its net income of approximately $5.6 million. The change in the valuation method increased the unrealized gain on the balance sheet for the debentures and decreased the unrealized gain on the income statement for the warrants. Receipt of Deficiency Letter from Nasdaq The Company received a standard notification letter dated November 17, 2021 (the “Nasdaq notice”) from the Nasdaq Listing Qualifications Department of Nasdaq notifying the Company it is not in compliance with Nasdaq Listing Rule 5250 (c)(1), because the Company remains delinquent in filing its Form 10-K for the fiscal year ended June 30, 2021, and has not filed its September 30, 2021, Form 10-Q. The Nasdaq notice has no immediate impact on the listing or trading of the Company’s common stock on the Nasdaq Capital Market. The notice reminds the Company that it has until December 17, 2021, (that is, 60 calendar days from the date of the October 18, 2021, Nasdaq notice) to submit to Nasdaq a plan (the “Compliance Plan”) to regain compliance ...