Good morning. Thank you for joining us today for our webcast announcing U.S. Global Investors' Results for the Second Quarter of Fiscal 2017. I'm Lisa Aston. [Operator Instructions] Also you may download a PDF of today slides by clicking on the red hand dot button. The presenters for today's program are Frank Holmes, U.S. Global Investors' CEO and Chief Investment Officer; Susan McGee, President, General Counsel, and Chief Compliance Officer; and Lisa Callicotte, Chief Financial Officer. 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. Now, let's go to Frank Holmes, CEO and CIO, for an overview of the period. Frank?

Good morning. Thank you, Lisa. As you can see on the slide, there is our stars on Slide 4. We have been receiving some nice stars for our gold funds, and I will comment more about that, which is so important in attracting assets and fund flows as the bulk of fund flows into mutual funds have been those with four and five stars. And that is performance coupled with risk and volatility. So U.S. Global we really look at our service being innovative investment management with a vast experience in global markets and specialized sectors. The history for those new listeners and shareholders, this company was founded in 1968 and has a long-standing history of global investing and particularly launching the first-no load gold fund. U.S. Global Investors' are well known for its expertise in precious metals and natural resources in emerging markets and they are all very tightly connected. That is the important part as China understands the drivers of emerging markets of the E7, seven most populated countries, versus the G7, has helped us in understanding gold and being a star performer in the gold funds in particular and in our other funds applying that expertise. We strive to be a go to stock, and we find that our stock particularly moves with the price of gold and the resources in emerging markets and it had a surge in our stock immediately, and in the short-term has this surge we have just seen. We are debt-free. We have a strong balance sheet and a reflexive cost structure, which Lisa, our CFO, will go into more greater detail and comment later in this presentation of how we have cut costs and then we have strived to maintain this multi-dividend return on equity discipline, and it's been very challenging…

Thank you, Frank. Good morning. I would like to summarize our results of operations for the quarter ending December 31, 2016. As we see starting on Page 22, compared to the same quarter last year, our revenue is up, our expenses are down and this resulted in reporting net income in the current quarter versus a net loss in the same quarter last year. We reported total operating revenues of $1.6 million for the quarter. This was a 27% increase from the 1.3 million we reported in the same quarter last year. The increase was primarily due to an increase in average assets under management in the U.S. Global Investors Funds, USGIF, mainly due to market appreciation in the gold and natural resource funds. Our operating expenses for the quarter were $1.9 million, which is a decrease of 1.3 million or 41%. The decrease was primarily due our strategic changes including the following; employee compensation and benefits decreased $792,000, or 47% mainly as a result of fewer employees in the current period, and the severance cost paid in the prior period due to the reduction of work force; general and administrative expenses decreased $533,000 or 38% primarily due to costs incurred in the prior period related to the transition of outsourcing of certain services to other service providers. The costs included proxy costs for USGIF that was split equally between the company and USGIF. Our portion was approximately $290,000. In addition, strategic cost cutting measures have resulted in lower expenses in the current period. We have an operating loss of $234,000 for the quarter ending December 31, 2016 versus an operating loss of $1.9 million in the same quarter in the prior year. On Page 23, our other income, which is income related to our investments was $249,000 for the quarter compared to a loss of $271,000 for the quarter ending December 31, 2015. Net income attributable to USGI after taxes for the quarter is $8,000. This is an improvement over the same quarter in the previous year, which had a net loss of $2.2 million. As you can see on Page 24, this equates to $0.00 earned per share versus a loss of $0.14 per share. Moving on to Page 25, we see we still have a strong balance sheet. We own our own building, and we have cash and marketable securities of approximately $17.1 million. This combines to make up 65% of our total asset. As you can see on Page 26, we still have no long-term debt. The company has a net working capital of $16.3 million and a current ratio of 15:1. With that, I'd like to turn it over to Susan McGee.

Thank you, Lisa. Our sales and marketing efforts have continued to focus on our gold and natural resources funds and our municipal bond fund and also are the U.S. global Jets ETF. Investors can find more information about all of these funds on our Web site, which is www.usfunds.com. The company and our funds continue to receive an invaluable amount of viral publicity which is gained through media interviews, recommendations by influential financial newsletter writers and the sharing and syndication of our award-winning original content by third-party publishers. These newsletters have very loyal following and they receive millions of visitors each month. Frank Holmes CEO blog, Frank Talk also continues to grow in popularity. This commentary is often featured of our prominent publication including Forbes, SeekingAlpha, ValueWalk, and Business Insider; and these sites have millions of monthly visitors. Frank and our investment team travel around the world, they continue to share our thought leadership. We interact frequently with loyal followers through our Facebook, Twitter, LinkedIn, Instagram, and Pinterest. Kitco News, the biggest gold Web site Interviewer: he world which has an audience of about 10 million monthly visitors, features the Gold Game Film Show with Frank's weekly gold market analysis. Kitco recently partnered with The Street and it broadened the show's exposure and viewership. And since the shows beginning in 2014, we have filmed a 125 video episodes of the Gold Game Film. All this coverage helps us leverage our brand -- awarded several STAR Awards by The Mutual Fund Education Alliance which recognizes excellence in investor education. These awards have included best overall communication to retail and advisor audiences within the small funds category. Our weekly free investor alert newsletter has been named the best electronic newsletter six times. To-date we received a total of 80 STAR awards. And again investors can sign up at usfunds.com and join over 30,000 subscribers who received the award winning investor alert and advisor alert eNewsletters and also our CEO blog Frank Talk. With that, I'll open it up for questions.

Thank you, Susan. As a reminder to our audience, you can enter your questions in the control panel on your screen. So, go ahead and take a moment to do that. We do have a couple of questions that have already come in. So, and here's our first question.

What level do assets need to be for the company to breakeven?

Well, our net income was close to breakeven as of December 31st 2016 for the quarter, I mean, on a average 81 was approximately 850 million. But this was with the help of our other income due to our investment. So, for net income to be breakeven, we need assets kind of closer to what our average assets were for our September quarter which was 946 million. And this also depends on our asset mix. So, we'd probably have to be at the same ratio that it was for that September quarter. But kind of so much of the scene that we've been discussing, our strategic moves to outsource and cut cost have allowed us to be more profitable at lower asset models. Like, at this time kind of last year, when we had much higher expenses, we needed close to like 1.2 billion, I mean, average assets to breakeven. And we're kind of estimating right now with kind of all other things equal. If our U.S. JF equity funds are approximately 600 million, our operating results will be at breakeven. I mean, last year we needed more like 850 million in those equity assets. So, we're really excited about this improvement but we are aware we need a concentrated arm maintaining our and growing our AUM levels and still we need to be monitoring last Sunday.

Thank you. Another question.

What is the status of new product launches and how much work goes into the creation of new product.

Well, that's sort of big question. The launching EPS is easy. It is want to go put some name on something I launch it, but the marketing cost can just blow millions of dollars. It's just more and more expensive, your flexibility and latitude getting on platforms, many of the platforms now like Morgan Stanley, to get on their platform we have to spend a $150,000, some others it's just it becomes very expensive. So, you have to do, put a lot of thought into it and that's what we did when we created Jets, was a lot of thought going into a smart data which is a set of factors that are very resilient dynamically adapt each quarter. And you have to go and meticulously back task and look at each quarter for down cycles, up cycles and how did it do, and we're really happy just with doing exactly what we thought it would do and is capturing for me its capturing of the Alpha that most if you just had an active front manager in the space would find it very difficult to beat. For the our gold ones and our other ones we're looking at in Canada, we've put in 1000s and 1000s of hours of meticulously looking at and what we found were things like how you were looking Canada say for energy names is very different than mining. Even though the both resources, the factors are different. And it's recognizing how do you go and beat that index which the basic where most of the assets are. And so, we've done some probabilities of our new products which is in the filing process that Susan is working on that we're really considering with how many quarters it a beat over the past 40 quarters…

Thank you, Frank. I don’t see that we have any other questions at this time. Any other?

There's nothing. I just like to add to that we're still looking at doing acquisitions. And we spend a lot of time resources that is very expensive. We tried to drill down on getting those expenses down on what is the cost to go through the due diligence. The reality is in looking at this data, this close to 70% of all M&A work does not move past due diligence. Due diligence is the first big screening road block to we've been going further and I think that we're trying to see how can we refine that, but we've spend time and money looking at tax issues, acquiring separate account business. So, we will maintain that curiosity out there because I think strategically we have to be building out that asset base because but all true mutual funds are just a higher cash flow, slowly evaporating asset class whereas ETF and separate account business continue to grow. So, we will launch our ETFs and we will look at launching, we'll look at acquiring someone that is fit with our culture and in that separate account business.

Thank you. Well, this does conclude U.S. Global Investors webcast for the second quarter of 2017. This presentation will be available on our website at www.usfunds.com. Thank you all for your participation today.