INVESTMENTS

9 Months Ended

Mar. 31, 2024

Investments, All Other Investments [Abstract]

INVESTMENTS

NOTE 6. INVESTMENTS

USCF Investments, from time to time, provides initial seed capital in connection with the creation of ETPs or ETFs that are managed by USCF or USCF Advisers. USCF Investments classifies these investments as current assets as these investments are generally sold within one year of the balance sheet date. Investments in which no controlling financial interest or significant influence exists are recorded at fair value with the change in fair value included in earnings on the Statements of Operations. Investments in which no controlling financial interest exists, but significant influence exists are recorded using the equity method of accounting unless the fair value option is elected under Accounting Standards Codification 825, Fair Value Option. As of March 31, 2024, the USCF Advisers owned $1.3 million of the USCF Gold Strategy Plus Income Fund (changed ticker to “USG” from “GLDX” in March 2024), $0.4 million of the USCF Sustainable Battery Metals Strategy Fund (“ZSB”), $3.2 million of the USCF Energy Commodity Strategy Absolute Return Fund (“USE”) and $2.3 million of the USCF Sustainable Commodity Strategy Fund (“ZSC”). As of June 30, 2023, USCF Advisers held positions in USG, ZSB and USE of $1.3 million, $1.9 million and $2.6 million, respectively. These funds are related parties managed by USCF Advisers, which are included in other equities in the below table. The Company elected the fair value option related to these investments as the shares were purchased and will be sold on the market and this accounting treatment is considered to be most informative. In addition to the holdings in USG, ZSB, USE and ZSC, the Company also invests in marketable securities. The Company recognized unrealized gains (losses) of $0.3 million and ($0.1) million for the three months ended March 31, 2024 and 2023, respectively, and less than $0.1 million and ($0.1) million for the nine months ended March 31, 2024 and 2023, respectively.

All of the Company’s short-term investments are classified as Level 1 assets and consist of the following (in thousands):

	March 31, 2024
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	3,021	$	-	$	-		$	3,021
Other short-term investments		291		1		-			292
Short-term treasury bills		990		7		-			997
Other equities - related parties		7,449		748		(877	)		7,320
Total short-term investments	$	11,751	$	756	$	(877	)	$	11,630

	June 30, 2023
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	3,403	$	-	$	-		$	3,403
Other short-term investments		280		-		(2	)		278
Short-term treasury bills		1,952		17		-			1,969
Other equities - related parties		5,972		88		(229	)		5,831
Total short-term investments	$	11,607	$	105	$	(231	)	$	11,481

During the three and nine months ended March 31, 2024 and 2023, respectively, there were no transfers in or out of Level 3.

As of March 31, 2024 and June 30, 2023, the Company also holds a $0.5 million equity investment in a registered investment advisor accounted for on a cost basis, minus impairment, which we believe approximates fair value, given the lack of observable price changes in orderly transactions, which is included in other assets on the balance sheet. There was no impairment recorded for the nine months ended March 31, 2024 or 2023.