U.S. Global Investors Announces Results of Non-Cash Adjustments to Its Financial Statements for Periods Ended March 31, 2021
November 17 2021 - 6:56PM
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 with the Nasdaq Listing
Rules. If Nasdaq accepts the Compliance Plan, Nasdaq can grant the
Company an exception to extend for an additional 180 calendar days
from the extended due date of the Form 10-K filing date, or April
11, 2022, to regain compliance. The Company is working
diligently to file its Form 10-K.
This announcement is made in compliance with the Nasdaq Listing
Rule 5810(b), which requires prompt disclosure of receipt of a
notification of deficiency.
Below are the selected financial data
(unaudited):
|
Three Months
Ended March 31, |
|
2021 |
2020 |
(dollars in thousands, expect per share data) |
As
Restated |
|
Operating Revenues |
$
6,355 |
$
914 |
Operating Expenses |
3,063 |
1,893 |
Operating Income (Loss) |
3,292 |
(979) |
|
|
|
Total Other Income (Loss) |
8,393 |
(503) |
Income (Loss) from Continuing Operations Before Income
Taxes |
11,685 |
(1,482) |
|
|
|
Tax Expense |
3,078 |
75 |
Net Income (Loss) from Continuing Operations |
8,607 |
(1,557) |
Loss from Discontinued Operations |
- |
(85) |
Net Income (Loss) |
8,607 |
(1,642) |
Less: Net Loss Attributable to Non-Controlling Interest |
- |
(30) |
Net Income (Loss) Attributable to U.S. Global Investors,
Inc. |
8,607 |
(1,612) |
|
|
|
Net Income (Loss) Per Share (Basic and Diluted) |
$
0.57 |
$
(0.11) |
|
|
|
Avg. Common Shares Outstanding (Basic) |
15,061,818 |
15,121,950 |
Avg. Common Shares Outstanding (Diluted) |
15,062,988 |
15,121,950 |
####
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years
when it began as an investment club. Today, U.S. Global Investors,
Inc. (www.usfunds.com) is a registered investment adviser that
focuses on niche markets around the world. Headquartered in San
Antonio, Texas, the Company provides money management and other
services to U.S. Global Investors Funds and U.S. Global ETFs.
Forward-Looking Statements and Disclosure
This news release and other statements by U.S. Global Investors
may include certain “forward-looking statements,” including
statements relating to revenues, expenses and expectations
regarding market conditions. You can identify these forward-looking
statements by the use of words such as “outlook,” “believes,”
“expects,” “potential,” “opportunity,” “seeks,” “anticipates” or
other comparable words. Such statements involve certain risks and
uncertainties and should be read with corporate filings and other
important information on the Company’s website, www.usfunds.com, or
the Securities and Exchange Commission’s website at
www.sec.gov.
These filings, such as the Company’s annual report and Form
10-Q, should be read in conjunction with the other cautionary
statements that are included in this release. Future events could
differ materially from those anticipated in such statements and
there can be no assurance that such statements will prove accurate
and actual results may vary. The Company undertakes no obligation
to publicly update or review any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
All opinions expressed and data provided are subject to change
without notice. Some of these opinions may not be appropriate to
every investor.
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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