Business
U.S. Global Investors Reports Financial Results for the Second Quarter of 2020 Fiscal Year
San Antonio, Feb. 11, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"San Antonio, Feb. 11, 2020 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, today reported a net loss of $1.0 million, or $0.06 per share loss, for the quarter ended December 31, 2019. That’s compared to a net loss of $3.2 million, or $0.21 per share loss, for the same three-month period a year earlier. The decrease in loss is primarily due to improvement in unrealized investment losses.\n Operating loss from continuing operations for the quarter ended December 31, 2019, was $511,000, compared to a loss of $856,000 for the quarter ended December 31, 2018, an improvement of $345,000. Total consolidated operating revenues for the quarter ended December 31, 2019, increased $94,000, or 11.9 percent, compared with the quarter ended December 31, 2018, due to higher average assets under management in equity funds, lower fund expense waivers and lower performance fees paid out. Total consolidated operating expenses for the current quarter decreased $251,000, or 15.2 percent, compared with the same quarter in the prior year, due to a decrease in employee compensation and benefits expenses and a decrease in fund expenses. Total consolidated other loss for the three months ended December 31, 2019, was $440,000 compared with an approximate $3.5 million loss for the three months ended December 31, 2018, a decrease in loss of approximately $3.0 million. The majority of other loss is due to investment losses, primarily unrealized losses on fair valued securities. A significant portion of the unrealized loss for both three-month periods was related to declines in technology and cryptocurrency mining equity securities held in corporate investments. The unrealized loss for HIVE Blockchain Technologies (“HIVE”), the Company’s strategy for exposure to cryptocurrencies and blockchain, was $1.0 million in the current quarter. This unrealized loss was partially offset, however, by net unrealized gains in other securities of $453,000. U.S. Global Investors (Canada) Limited (“USCAN”), a wholly owned subsidiary of the Company, entered into a binding letter of intent dated December 30, 2019, with Galileo Global Equity Advisors Inc. (“Galileo”), whereby Galileo, pursuant to a capital restructuring, will repur...