Marygold Companies, Inc.

Previous wording

The following discussion and analysis should be read in conjunction with the unaudited financial statements and the accompanying notes thereto and is qualified in its entirety by the foregoing and by more detailed financial information appearing elsewhere in this Report. See “Item 1 - Financial Statements (Unaudited).”

Current wording

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, and the unaudited consolidated financial statements and the accompanying notes thereto included in this Report for the relevant period and is qualified in its entirety by the foregoing and by more detailed financial information appearing elsewhere in this Report. See “Item 1 - Financial Statements (Unaudited).”

Previous wording

In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. See “Special Note Regarding Forward-Looking Statements.” Our results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Item 1A. Risk Factors” in Part II of this Report and “Item 1A. Risk Factors” in our Form 10-K for the year ended June 30, 2024.

Current wording

In addition to historical financial information, the following MD&A contains forward-looking statements that involve certain risks, uncertainties and assumptions. See “Special Note Regarding Forward-Looking Statements.” Our results of operations and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Item 1A. Risk Factors” in Part II of this Report and “Item 1A. Risk Factors” in our Form 10-K for the year ended June 30, 2024.

Previous wording

The Marygold Companies, Inc., a Nevada corporation (together with its subsidiaries, “we,” “us,” “our,” “Company,” or “The Marygold Companies”), is a holding company which operates through its wholly owned subsidiaries engaged in certain diverse business activities listed below:

Current wording

The Marygold Companies, Inc., a Nevada corporation (together with its subsidiaries, “we,” “us,” “our,” “Company,” or “The Marygold Companies”), is a holding company which operates through its wholly owned subsidiaries engaged in certain diverse business activities listed below but with a primary focus on the fund management and financial services industries in the U.S. and U.K.:

Previous wording

Refer to*“Liquidity and Capital Resources – Recent Note Financing”* below.

Current wording

Refer to*“Liquidity and Capital Resources – Recent Note Financing”* and “—Recent Equity Financing,” below.

Previous wording

Benefit from income taxes increased by $0.2 million or 59% driven by the increase in the loss before income taxes for the reasons explained above.

Current wording

Benefit from income taxes increased by $0.3 million or 165% driven by the increase in the loss before income taxes for the reasons explained above.

Previous wording

Fund Management – Related Party - USCF Investments

Current wording

U.S. Fund Management – Related Party - USCF Investments

Previous wording

USCF Investments earns monthly management and advisory fees based on agreements with each Fund as determined by the contractual basis point management fee structure in each agreement multiplied by the average AUM over the given period. Average AUM for the quarter ended September 30, 2024 was $3.1 billion compared to $3.5 billion for the quarter ended September 30, 2023. As a result of lower AUM for the current quarter when compared to the quarter ended September 30, 2023, revenue decreased by $0.5 million or 9%. The decrease in AUM in the quarter ended September 30, 2024 was due to commodity price fluctuations and the high-interest rate environment, along with geopolitical and economic uncertainty.

Current wording

USCF Investments earns monthly management and advisory fees based on an investment management or advisory agreement with each Fund. The management fees are determined on the basis of a contractual basis point management fee multiplied by the average AUM over the given period. Average AUM for the quarter ended December 31, 2024 was $3.1 billion compared to $3.5 billion for the quarter ended December 31, 2023. As a result of lower average AUM for the current quarter when compared to the quarter ended December 31, 2023, revenue decreased by $0.3 million or 6%. The decrease in average AUM in the quarter ended December 31, 2024 was due to commodity price fluctuations and the high-interest rate environment, along with the impact of geopolitical and economic uncertainty.

Previous wording

Gourmet Foods has two distinct operating divisions: 1) a commercial-scale bakery producing iconic Kiwi pies and sausage rolls and 2) a digital printing establishment (Printstock Products Limited) who prints specialty food wrappers. Total food products revenue increased by $0.1 million or 5% for the quarter ended September 30, 2024 as compared to 2023, which was the net result of an increase at our printing business and a decrease at our bakery business.

Current wording

Gourmet Foods has two distinct operating divisions: 1) a commercial-scale bakery producing iconic Kiwi pies and sausage rolls and 2) a digital printing business (Printstock Products Limited) which prints specialty food wrappers. Total food products revenue decreased by $0.2 million or 12% for the quarter ended December 31, 2024 as compared to 2023, the result of decreases at both our printing business and our bakery business. The decrease of $0.1 million or 8% in our printing business was due to the timing of job completion and invoicing. The decrease of $0.2 million or 15% in our bakery business was due to a temporary cancellation of certain product categories sold to national grocery chains pending price increase acceptance.

Previous wording

Brigadier earns revenue from recurring alarm monitoring fees charged to residential customers, and from hardware sales and installations of access controls to commercial customers. Revenues from monitoring residual fees remained relatively static while sales and installations of larger commercial installations increased for the quarter ended September 30, 2024 as compared to 2023. Revenue increased by $0.1 million or 25% and operating income increased by $0.1 million or 87% driven by increased sales to commercial customers. The larger commercial accounts generate more revenue and profits but take longer to complete, thus may produce spikes or declines in revenue and profits for specific reporting periods. As the residential consumer segment of the industry becomes more complex due to the bundling of services, including alarm monitoring, offered by larger telecom companies, we expect to focus even more heavily on the commercial and public facilities customers in the coming years.

Current wording

Brigadier earns revenue from recurring alarm monitoring fees charged to residential customers, and from hardware sales and installations of access controls for commercial customers. Revenues from monitoring residual fees remained relatively static while sales and installations of larger commercial installations increased for the quarter ended December 31, 2024 as compared to 2023. Revenue increased but was offset by an increase in cost of goods sold, producing a relatively flat operating income. The larger commercial accounts generate more revenue and profits but take longer to complete, thus may produce spikes or declines in revenue and profits for specific reporting periods. As the residential consumer segment of the industry becomes more complex due to the bundling of services, including alarm monitoring, offered by larger telecom companies, we expect to focus even more heavily on the commercial and public facilities customers in the coming years.

Previous wording

Financial Services – Marygold US and Marygold UK

Current wording

U.S. and U.K. Financial Services – Marygold US and Marygold UK

Previous wording

Marygold US has developed and recently launched a mobile banking fintech app which earns revenues in the form of management fees based on a percentage of the amount of account holder funds are invested in various curated ETF portfolios offered on the app (“Money Pools”), and from transaction fees when account holders use our debit card. The app was soft-launched in June 2023 and since that time has earned only de minimis revenues. Operating costs are comprised of development team salaries and expenses, fees paid to third party vendors, fees paid to our sponsoring bank, marketing costs and staff salaries. For the quarter ended September 30, 2024, Marygold US incurred an operating loss of $1.4 million as compared with an operating loss of $1.5 million for the quarter ended September 30, 2023. These losses and negative cash flows are expected to continue for the coming fiscal year.

Current wording

Marygold US has developed and launched a mobile banking fintech app which is expected to earn revenue in the form of management fees based on a percentage of the amount of account holder funds are invested in various curated ETF portfolios offered on the app (“Money Pools”), and from transaction fees when account holders use our debit card. The app was soft-launched in June 2023 as a proof of concept. Since that time, the app has earned only de minimis revenues. Operating costs are comprised of development team salaries and expenses, fees paid to third party vendors, fees paid to our sponsoring bank, marketing costs and staff salaries. For the quarter ended December 31, 2024, Marygold US incurred an operating loss of $1.5 million as compared with an operating loss of $1.4 million for the quarter ended December 31, 2023. These losses and negative cash flows are expected to continue for the coming fiscal year.

Previous wording

Marygold UK is a holding company in the U.K. which operates through its two wholly-owned subsidiaries Tiger Financial and Asset Management and Steb By Step Financial Planners, both of whom are registered investment advisors who earn revenues based on the amount of assets under management or from the sale of financial products, such as insurance, to customers in the U.K.

Current wording

Marygold UK is a U.K. holding company which operates through its two wholly-owned subsidiaries Marygold & Co. Limited f/k/a Tiger Financial and Asset Management Limited and Step By Step Financial Planners, both of whom are registered investment advisors who earn revenues based on the amount of AUM and from the sale of financial products, including insurance, to customers in the U.K.

Previous wording

Our total Financial Services revenue, which was derived entirely from Marygold UK, for the quarter ended September 30, 2024 increased by $0.1 million or 65% to $0.2 million as compared to $0.1 million for the quarter ended September 30, 2023. The increase was primarily driven by the incremental revenue of $0.1 million from Step-By-Step, which was acquired in April 2024. Operating loss increased by less than $0.1 million or 4% due to increased costs incurred in connection with the adoption and implementation of the Marygold mobile Fintech app for the U.K. market. The consolidated operating loss for financial services was $1.6 million for the current quarter as compared to a loss of $1.5 million for the quarter ended September 30, 2023.

Current wording

Our total U.K. Financial Services revenue, derived entirely from Marygold UK, for the quarter ended December 31, 2024, increased by $0.1 million or 67% to $0.2 million as compared to $0.1 million for the quarter ended December 31, 2023. The increase was driven by the incremental revenue of $0.1 million from Step-By-Step, which was acquired in April 2024. Operating loss increased by $0.2 million due to increased costs incurred in connection with the adoption and implementation of the Marygold mobile Fintech app for the U.K. market. The consolidated operating loss for financial services was $1.7 million for the current quarter as compared to a loss of $1.5 million for the quarter ended December 31, 2023.

Previous wording

The parent company has no significant revenue, however it does have operating expenses such as, but not limited to, salaries, audit and legal fees, NYSE listing expenses, shareholder reports, insurance, interest expense, and investor relations which produce operating losses. Operating loss for the corporate headquarters increased by $0.5 million, or 49%, for the quarter ended September 30, 2024 as compared to same period in 2023. The increased loss was driven by higher stock-based compensation expenses from a large equity grant awarded in the quarter ended September 30, 2024.

Current wording

The Marygold Companies as a holding company has no significant revenue, however, it does have operating expenses such as, but not limited to, salaries, audit and legal fees, NYSE American listing fees and expenses, expenses related to compliance with its SEC periodic reporting requirements, insurance, interest expense, and investor relations which produce operating losses. Operating loss for the corporate headquarters increased by $0.1 million, or 10%, for the quarter ended December 31, 2024 as compared to same period in 2023. The increased loss was driven by higher stock-based compensation expenses from additional equity grants during the quarter ended December 31, 2024.

Previous wording

Revenue decreased by $0.3 million or 4% for the quarter ended September 30, 2024 driven by a decrease in average Assets Under Management (“AUM”) in our fund management business. Average AUM for the quarter ended September 30, 2024 was $3.1 billion compared to $3.5 billion for the quarter ended September 30, 2023. The decrease in AUM in quarter ended September 30, 2024 was due to commodity price fluctuations and the high-interest rate environment, along with geopolitical and economic uncertainty.

Current wording

Revenue decreased by $0.8 million or 5% for the six months ended December 31, 2024 driven by a decrease in average Assets Under Management (“AUM”) in our U.S. fund management business. Average AUM for the six months ended December 31, 2024 was $3.1 billion compared to $3.5 billion for the six months ended December 31, 2023, a decrease of $0.4 billion or 11%. The decrease in AUM in the six months ended December 31, 2024 was due to commodity price fluctuations and the high-interest rate environment, along with geopolitical and economic uncertainty.

Previous wording

Gross profit decreased by $0.4 million or 7% for the reasons described above for the reduced revenue plus cost of revenue increased by $0.1 million compared to the quarter ended September 30, 2023.

Current wording

Gross profit decreased by $0.9 million or 7% for the reasons described above for the reduced revenue plus cost of revenue increased by $0.1 million compared to the six months ended December 31, 2023.

Previous wording

Operating expenses increased by $0.7 million or 10% as a result of the following. General and administrative expenses increased by $0.3 million or 14% driven by increased costs associated with our Fintech app development including additional software and security infrastructure in the UK. Salaries and compensation increased by $0.6 million or 22% compared to the quarter ended September 30, 2023 driven by increased stock-based compensation expenses plus increased compensation at USCF. Fund operations increased by $0.1 million or 11% driven by increased costs associated with managing more funds. Partially offsetting these increased operating expenses was a decrease in marketing and advertising of $0.3 million or 31% as a result of prior year increased spending for new products at Original Sprout as well as from the Fintech app and new fund launches.

Current wording

Operating expenses increased by $1.1 million or 8% as a result of the following. General and administrative expenses increased by $0.4 million or 8% driven by increased costs associated with our Fintech app development including additional software and security infrastructure in the UK. Salaries and compensation increased by $0.5 million or 9% compared to the six months ended December 31, 2023 driven by increased stock-based compensation expenses plus increased compensation at USCF. Fund operations increased by $0.5 million or 21% driven by increased costs associated with managing more funds. Partially offsetting these increased operating expenses was a decrease in marketing and advertising of $0.3 million or 17% as a result of prior year increased spending for new products at Original Sprout as well as from the Fintech app and new fund launches.

Previous wording

Net loss increased by $1.1 million or 217% and was driven by decreased profits from our fund management business due to lower average AUM and higher stock-based compensation charges.

Current wording

Net loss increased by $1.6 million or 98% and was driven by decreased profits from our fund management business due to lower average AUM, increased losses in our financial services segment as we continue to develop our Fintech app and higher stock-based compensation charges.

Previous wording

Operating income decreased by $0.8 million or 45% driven by the decrease in average AUM as described above and increased fund operations expenses of $0.1 million or 11% as a result of increased license fees, fund accounting and administration costs connected to new fund launches as well as increases in compensation expense of $0.1 million or 15%.

Current wording

Operating income decreased by $1.2 million or 40% driven by the decrease in average AUM as described above and increased fund operations expenses of $0.5 million or 21% as a result of increased sub-advisory and license fees, fund accounting and administration costs connected to new funds.

Previous wording

Operating (loss) income was nearly break-even for both quarters ended September 30, 2024 and 2023 which was driven by a non-recurring cost of goods sold adjustment coupled with a depreciation charge taken for our solar electricity system and partially offset by increased profits from the sale of higher margin products at our bakery business.

Current wording

Operating income decreased by $0.2 million or 77% for the six months ended December 31, 2024 compared to the prior year period which was driven by a non-recurring cost of goods sold adjustment coupled with a depreciation charge taken for its solar electricity system and partially offset by increased profits from the sale of higher margin products at our bakery business.

Previous wording

Original Sprout derives revenues through the sale of proprietary hair and skin care products marketed to domestic and international distributors, grocery stores, hair salons and direct-to-consumers via online platforms. Revenue decreased by $0.2 million or 23% driven by the efforts to control the discounted price of products sold online by authorized resellers. This trend is expected to continue for the remainder of the current fiscal year as Original Sprout reduces the number of authorized Internet sales channels and repositions its products for a larger presence on store shelves.

Current wording

Revenue decreased by $0.2 million or 12% driven by the efforts to control the discounted price of products sold online by authorized resellers. This trend is expected to continue for the remainder of the current fiscal year as Original Sprout reduces the number of authorized Internet sales channels and repositions its products for a larger presence on store shelves.

Previous wording

Operating loss decreased by $0.1 million or 46% for the quarter ended September 30, 2024 as compared to 2023 as a result of reduced marketing cost and a nominal price increase to domestic distributors.

Current wording

Operating loss decreased by $0.2 million or 46% for the six months ended December 31, 2024 as compared to 2023 as a result of reduced marketing costs and a nominal price increase to domestic distributors.

Previous wording

The Marygold Companies is a holding company that conducts its individual business operations through its subsidiaries. At the holding-company level, its liquidity needs relate to operational expenses, the funding of additional business acquisitions and new investment opportunities. Our operating subsidiaries’ principal liquidity requirements arise from cash used in operating activities, debt service, and capital expenditures, including purchases of equipment and services, operating costs and expenses, and income taxes. Cash is managed at the holding company and the subsidiary level. There are generally no legal limitations or constraints on the movement of funds between the entities, however there are potential tax consequences for funds moved from foreign subsidiaries to the parent company. Additionally, registered investment advisor subsidiaries are required to maintain certain minimum capital requirements.

Current wording

The Marygold Companies is a diversified holding company that conducts its individual business operations through its subsidiaries. At the holding-company level, its liquidity needs relate to operational expenses, the funding of additional business acquisitions and new investment opportunities. Our operating subsidiaries’ principal liquidity requirements arise from cash used in operating activities, debt service, and capital expenditures, including purchases of equipment and services, operating costs and expenses, and income taxes. Cash is managed at the holding company and the subsidiary level. There are generally no legal limitations or constraints on the movement of funds between the entities, however there are potential tax consequences for funds moved from foreign subsidiaries to the parent company. Additionally, our registered investment advisor subsidiaries are required to maintain certain minimum capital requirements.

Previous wording

As of September 30, 2024, we had $6.7 million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June 30, 2024, an increase of $1.2 million or 22%. Our cash used in operating activities for the quarter ended September 30, 2024 was $0.9 million. For the quarter ended September 30, 2024, the Company made additional expenditures of $1.5 million with regard to the development of our mobile Fintech app. We have invested a total of $16.5 million in the Fintech app since Marygold’s inception. In September 2024, we entered into a new financing arrangement under which we borrowed $4.4 million and have the potential to borrow an additional $2.2 million. The new financing arrangement also gives the lender the right but not the obligation to provide an additional $10.0 million in financing to us on the same terms as the initial loans. We expect that we will require additional financing to fund our fintech operations over the coming 12 months. As the funding requirements become known, we will decide upon the source of the additional capital. Despite these cash investments and expenses, our working capital position remains strong at $17.1 million as of September 30, 2024.

Current wording

As of December 31, 2024, we had $5.7 million of cash and cash equivalents on a consolidated basis as compared to $5.5 million as of June 30, 2024, a increase of $0.2 million or 4%. Our cash used in operating activities for the six months ended December 31, 2024 was $1.7 million. For the six months ended December 31, 2024, the Company made additional expenditures of $2.7 million with regard to the development of our mobile Fintech app. We have invested a total of $18 million in the Fintech app since Marygold’s inception. In September 2024, we entered into a financing arrangement under which we borrowed $4.4 million and have the potential to borrow an additional $2.2 million. The financing arrangement also gives the lender the right but not the obligation to provide an additional $10.0 million in financing to us on the same terms as the initial loans. We expect that we will require additional financing to fund our fintech operations over the coming 12 months. As the funding requirements become known, we will decide upon the source of the additional capital. Despite these cash investments and expenses, our working capital position remains strong at $14.4 million as of December 31, 2024.

Previous wording

Based on our current operating plan which includes continued significant investments in the mobile Fintech app, we intend to raise additional capital through one or more debt and/or equity financing to meet our operating and cash needs. There can be no assurance we will be able to raise additional financing upon terms acceptable to us. In the event we are unable to obtain additional financing in an amount or upon terms acceptable to us, we expect to reduce or curtail our investment in the development of our Fintech app.

Current wording

Based on our current operating plan which we expect may include continued additional investments in our mobile Fintech app, we may need to raise additional funds through one or more debt and/or equity financing to meet our operating and cash needs. There can be no assurance we will be able to raise such additional financing or upon terms acceptable to us. In the event we are unable to obtain additional financing in an amount or upon terms acceptable to us, we expect to reduce or curtail our investment in the development of our Fintech app.

Previous wording

The Company has various leases for offices, warehouses and manufacturing facilities. The total amount due under these obligations was $1.6 million as of September 30, 2024. During the quarter ended September 30, 2024, the Company renewed leases in New Zealand and the US which increased the right-of-use assets and lease liabilities by $0.7 million. The obligations will reduce over the passage of time through periodic lease payments. See Note 10 for further analysis of this obligation.

Current wording

The Company has various leases for offices, warehouses and manufacturing facilities. The total amount due under these obligations was $1.4 million as of December 31, 2024. During the six months ended December 31, 2024, the Company renewed leases in New Zealand and the US which increased the right-of-use assets and lease liabilities by $0.7 million. The obligations will reduce over the passage of time through periodic lease payments. See Note 10 for further analysis of this obligation.

Previous wording

On September 19, 2024, we entered into a note purchase agreement (“Purchase Agreement”) with Streeterville Capital, LLC, a Utah limited liability company (“Holder”), pursuant to which we agreed to issue and sell to Holder a secured promissory note in an initial principal amount of $4,380,000 (“Initial Note”) payable on or before 24 months from the issuance date (“Maturity Date”) and, upon the satisfaction of certain conditions in the Purchase Agreement, up to one additional secured promissory note (“Subsequent Note,” Initial Note and Subsequent Note, “Notes”). The initial principal amount of the Notes includes an original issue discount of 9% and expenses the Company agreed to pay to the Holder to cover the Holder’s transaction costs. The original issue discount of the Initial Note was $360,000. Interest on the principal amount of the Notes accrues at a rate of 9% per annum. The Company may pay all or any portion of the amount owed under the Notes earlier than it is due. All payments made under the Notes, including any repayments, are subject to an exit fee of 6% of the portion of the outstanding balance (including accrued interest) being repaid. The Subsequent Note would have a principal amount of $2,180,000, which will have terms substantially similar to the terms of the Initial Note. The original issue discount on the Subsequent Note, if issued, will be $180,000.

Current wording

On September 19, 2024, we entered into a note purchase agreement (“Purchase Agreement”) with Streeterville Capital, LLC, a Utah limited liability company (“Holder”), pursuant to which we agreed to issue and sell to Holder a secured promissory note in an initial principal amount of $4,380,000 (“Initial Note”) payable on or before 24 months from the issuance date (“Maturity Date”) and, upon the satisfaction of certain conditions in the Purchase Agreement, up to one additional secured promissory note (“Subsequent Note,” Initial Note and Subsequent Note, “Notes”). The initial principal amount of the Notes includes an original issue discount of 9% and expenses the Company agreed to pay to the Holder to cover the Holder’s transaction costs. The original issue discount of the Initial Note was $360,000. Interest on the principal amount of the Notes accrues at a rate of 9% per annum. The Company may pay all or any portion of the amount owed under the Notes earlier than it is due. All payments made under the Notes, including any repayments, are subject to an additional amount payable equal to 6% of the portion of the outstanding balance being repaid. The Subsequent Note would have a principal amount of $2,180,000, which will have terms substantially similar to the terms of the Initial Note. The original issue discount on the Subsequent Note, if issued, will be $180,000.

Previous wording

Beginning on the date that is six months from the issuance date until the applicable Note is paid in full, each month the Holder has the right to require the Company to redeem up to an aggregate of $400,000 with respect to the Initial Note and $200,000 with respect to the Subsequent Note plus any interest accrued thereunder and an exit fee of 6% of the principal amount and accrued interest redeemed. The Company has the right to defer such redemption payments that Holder could otherwise elect to make three times by providing advance written notice to Holder. If Company exercises its deferral right, the outstanding balance automatically increases by 0.85% for each instance that the deferral right is exercised by Company, which cannot be exercised more than once every ninety calendar days.

Current wording

Beginning on the date that is six months from the issuance date until the applicable Note is paid in full, each month the Holder has the right to require the Company to redeem up to an aggregate of $400,000 with respect to the Initial Note and $200,000 with respect to the Subsequent Note plus any interest accrued thereunder and an additional amount payable equal to 6% of the principal amount and accrued interest redeemed. The Company has the right to defer such redemption payments that Holder could otherwise elect to make three times by providing advance written notice to Holder. If Company exercises its deferral right, the outstanding balance automatically increases by 0.85% for each instance that the deferral right is exercised by Company, which cannot be exercised more than once every ninety calendar days.

Previous wording

As of September 30, 2024, the note payable balance outstanding, net of the original issue discount and fees paid, was $3.7 million, of which $2.8 million is due within 12 months from September 30, 2024 and the remaining balance of $0.9 million is due prior to September 30, 2026. The effective interest rate for this note is 41.3%.

Current wording

As of December 31, 2024, the note payable balance outstanding, net of the original issue discount and fees paid, was $3.9 million, of which $3.5 million is due within 12 months from December 31, 2024 and the remaining balance of $0.4 million is due prior to September 30, 2026. The effective interest rate for this note is 41.3%.

Previous wording

USCF Investments, from time to time, provides initial investments in the creation of ETP funds that USCF Investments manages. USCF Investments classifies these investments as current assets as these investments are generally sold within one year from the balance sheet date. As of September 30, 2024, USCF Investments held investment positions in four of its 40 Act funds, USG (ticker changed from GLDX in March 2024), ZSB, USE and ZSC of $1.5 million, $0.4 million, $3.2 million, and $2.3 million, respectively. These investment positions along with other investments, as applicable, are described further in Note 5 to our Financial Statements.

Current wording

USCF Investments, from time to time, provides initial investments in the creation of ETP funds that USCF Investments manages. USCF Investments classifies these investments as current assets as these investments are generally sold within one year from the balance sheet date. As of December 31, 2024, USCF Investments held investment positions in four of its 40 Act funds, USG (ticker changed from GLDX in March 2024), ZSB, USE and ZSC of $1.5 million, $0.2 million, $2.4 million, and $2.1 million, respectively. These investment positions along with other investments, as applicable, are described further in Note 5 to our Financial Statements.