Good morning and thank you for joining us for our webcast announcing U.S. Global Investors Results for the Third Quarter of Fiscal Year 2020. I'm Holly Schoenfeldt. If you have any questions during the [technical difficulty] enter them in the questions area of the control panel side bar, which is normally to the right of your screen. Also, you may download a PDF of today's slides by clicking on the red handout button. The presenters for today's program are Frank Holmes, U.S. Global Investors’ CEO and Chief Investment Officer; Lisa Callicotte, Chief Financial Officer; and myself, Holly Schoenfeldt, Marketing and Public Relations Manager. During this webcast, we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and 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 such statements are made as of today, and U.S. Global Investors accepts no obligation to update them in the future. On Slide 4, you'll see a quick overview of U.S. Global Investors. We are an innovative investment manager with vast experience in global markets and specialized sectors. Founded as an investment club, the Company became a registered investment advisor in 1968 and has a long standing history of global investing and launching first of their kind investment product, including the first no-load gold fund. U.S. Global is well known for expertise in gold and precious metals, natural resources and emerging markets. Now let's go to Frank Holmes, CEO and CIO for an overview of the period. Frank?

Thank you, Holly. Good morning, everyone. Thank you for participating and hearing our story. And as highlighted, our go-to stock has always been for gold and then it evolved the digital currencies with our substantial investment in HIVE. I'll talk about that in a few minutes. But our balance sheet still remains very, very strong. And we have this reflexive cost structure and monthly difference returns on equity discipline. We've maintained a very low yield and we've also buyback our stock, have done it on an algorithm that is on down days and it's very sort mathematically driven. Next one is I want to really thank all these institutions, in particular, the Royce Funds, Perritt Capital Management and Financial & Investment Management Group. Paul Celeron has been just long-term loyal investors, BlackRock and Vanguard become much more of a indexed funds that have invested in U.S. Global Investors. So next one is dividends. We paid dividends for 10 years now as monthly. Current yield at $1.53 was 1.96%, which was slightly higher than what people are making on money market funds today. And I think we went through everything to try to maintain it. But there's always sort of guidelines and rules that the share repurchase program in motion. The Board approved a repurchase of up to $2.75 million of its outstanding common stock on the open market until the end of this year, December 31, 2020. During the three months ended March 31, the company repurchased 69,000 shares of Class A shares using cash of approximately $68,000, which was more than the previous quarter, because we've had to deal with this meltdown in the capital markets. But this program may be suspended or discontinued at any time. And so we'll make sure if we make any changes, we will…

Thank you, Frank. Good morning. Before I discuss the results of our operations for the quarter, I'd like to discuss the finalization of the sale of our 65% Canadian subsidiary Galileo Global Equity Advisors. On March 2, 2020, Galileo purchased all of its common stock owned by USGI for a CAD$1 million, which is about US$746,000. The results from Galileo through March 2nd are reflected in discontinued operations in the consolidated statement of operations. So now I'll discuss the results of operations for the quarter ending March 31, 2020. Beginning on Slide 48, we recorded total operating revenues of $914,000 for the quarter, which is an increase of $57,000 or 7% from the $857,000 the same quarter last year. The increase is primarily due to increase in the ETF assets under management as we've discussed. But we also had decreases in performance being paid out. And this increase was somewhat offset by lower assets under management in our USGIS mutual fund. Operating expenses for the quarter were $1.9 million, an increase of $364,000 or 24% from the prior year same quarter. And it was primarily due to an increase in general and administrative expenses of $338,000 or 45%, primarily due to business development costs related to increase in ETF assets. We see our operating loss for the quarter ending March 31, 2020 is $979,000 or a decrease of $307,000 compared to the same quarter for fiscal year 2019. On Slide 49, we see that other income and loss for the quarter was a loss of $503,000. And as Frank discussed, we record changes in our investment value in this line item, and it has been volatile and is expected to be volatile in the future. The $503,000 loss was mainly due to unrealized losses in investment and loss for continuing…

Before we do that, Lisa, I do want to comment that we were in the process and we were downsizing at the beginning of March before these assets start to take off.

Yes.

And because we saw the other assets declining, and I think that was -- we were in that process in addition to losses and we’re fortunate we do not have to make any additional cuts.

Right.

Because of the other growth in JETS and the GOAU.

Yes.

Thanks.

Thank you, Lisa. All right. As you can see on Slide 55, a majority of our mutual fund assets are in emerging markets and natural resources, while 37% are in domestic equities and fixed income. As for distribution, more than three quarters of assets come from retail investors, with 17% coming from institutional investors. Our sales and marketing efforts have continued to focus on our mutual funds, including those concentrated on gold, natural resources and emerging markets, as well as our exchange traded funds. The company and our funds continue to receive an invaluable amount of viral publicity gained through media interviews. Frank Holmes often shares his insights with financial outlets like Fox Business, Bloomberg Radio and Kitco News, just to name a few. We continue to receive recommendations by influential financial newsletter writers as well, along with the sharing and syndication of our award winning original content by third-party publishers. The newsletters have loyal followings and received millions of visitors each month. Frank Holmes, CEO blog Frank Talk continues to grow in popularity. His commentary is often featured by prominent publications including Forbes, Seeking Alpha, Kitco and Equity.com, each with millions of monthly visitors. Kitco News, the biggest gold website in the world with an audience of over 30 million monthly visitors in partnership with the street.com continues to feature the Gold Game Film Show with Frank Holmes Gold Market Analysis. Since the show's beginning, 181 episodes have aired. At quarter end, we like to look into the most visited Frank Talk Blogs published over the past year. On this slide, you will see that the most visited articles so far in 2020 are as follows: number one, Explore the World's 10 Busiest Airport; two, Should you Buy the Panic; and three. Did U.S. Companies have the Highest Debt to Equity Ratios Right Now. You can sign up for the blog for free on our home page. All of this coverage helps us leverage our brand by reaching millions of readers, viewers and potential investors. Our website, usfunds.com was visited 692,000 times from March 2019 to 2020 by curious investors from all over the world. U.S. Global is well-known for timely, balanced and positive market insights and our thought leadership. The company has been awarded numerous star awards by the Investment Management Education Alliance over the years for excellence in Investor Education. Our total now stands at 88 awards. Our subscriber base continues to grow organically and we currently have over 50,000 curious investors subscribed to our investment newsletters and the Frank Talk Blog. We also continue to see a large following across all of our social media platforms. Investors can sign up at usfunds.com [technical difficulty] and what this might mean for gold or what you see in store for the precious metal for the rest of 2020.

On a historical basis, whenever you go to negative interest rates, gold goes up in that country's currency and being in the U.S. people know their comments are not going to negative rates, but ahead of the Federal Reserve. I point out that there's another $2 trillion on the table. It's an election year in America to help both businesses get people back to work and so I just think that the price of gold is going to trade higher and it's going to because the debasement and it's synchronized. It's all the G20 countries. So it's not like a gold goes up because it's a war. The only war today is the war on a virus, the coronavirus. That's a war. And it's unprecedent that everything in the world stopped. And it just -- when you look at all the data, we go back to World War I and read it for one was the Spanish flu. You take a look at World War II, I can go on with a list of them, but nothing has ever shut down the world like this coronavirus. And so all these countries, finance ministers and central bankers, are working together in a cartel form and they're basically printing money and so real assets historically have held their value and they go up. And I think that that's what's going to take place with gold. Over the next several years, we're going to get a very strong rerating onboard. What we saw last year and everyone was shocked by that Palladium went from a $1,000 to $2,700. That could easily happen to gold this year. And why would that be? Well, supply is being restricted. The supply from mines is not growing. It's basically peak supply. And when we had peak oil,…

Perfect. Thank you, Frank. Lisa, I’ve a question for you. How should GROW shareholders expect the recent success of the JET ETF to be reflected in the company's earnings? Will it primarily show up next quarter end?

It does really depend on when we get to create in our ETF. And we did get that at the end, starting at the end of March. But since revenue is based on assets under management, operating revenues will increase. But these will be offset by increased business development costs related to the ETF creation. Consequently, there is a delay in when the increase in AUN is notable in net income. And this delay can be a few months. Therefore, we would expect that the net positive result of the recent increases in JETS will probably fully be represented in net income after a few months, which is going to most likely be in a quarter ending September 2020.

Okay, great. Thank you. I have another question for you, Frank. Given your constant globetrotting for due diligence and conferences, what is your personal perspective on the state of business air travel? What are you hearing from your fellow road warriors about air travel right now?

Well, I think the best -- the biggest thing is to follow tracking. I'm so happy that TSA has come out with a mechanism to track -- like you track fund flows, you are able to track passengers clearing the fly. I think that there is a -- the great concern that the four big major airlines are going to have to use another $10 billion each to weather this storm. But the trend is up. People are traveling. And I think it's going to confused be by media distortion of negative news and the fear of it. It doesn't mean you don't distance yourself and it doesn't mean you don't extra clean and gloves, etcetera. I mean, I go shopping and I have my mask on, my gloves on. I come home and I get sprayed down with diluted alcohol. I think that that's just how you have an extra discipline. But I think that we're going to see the industry turn. Will you get a D shaped economy? I think it's going to probably be more like a U than a D shape like we had before. It is a job that comes in because there's is just reluctance for a lot of people. But the business travel, it's interesting that, it's a third of a Southwest Airlines. For other airlines, it's something like 60% of their profit margins is business travel. So that business person has to go and get out and travel. I think that the big impacts are going to be probably on commercial real estate, more people working for a home. But I'm now reading about psychology of Zoom. If you watch too many Zoom's all day long, that is working your brain. So that would go after Google video, whatever, that it seems…

Great. Thank you, Frank. Thank you, everyone, for your question. This concludes the U.S. Global Investors webcast for the third quarter of fiscal year 2020. This presentation will be available on our website, usfunds.com. Thank you all for your participation today.