NOTE 5. 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 included in earnings on the Consolidated Statements of Operations. As of June 30, 2025 and 2024, the Company has investments totaling $3.6 million and $7.5 million, respectively, of funds managed by USCF Advisers which are related parties and are included in other equities in the below table. The Company elected the fair value option related to this investment as the shares were purchased and will be sold on the market and this accounting treatment is deemed to be most informative. In addition to the holdings in these funds, the Company also invests in marketable securities. The Company recognized unrealized losses of $0.8 million and unrealized gains of $0.1 million for the years ended June 30, 2025 and 2024, respectively.

All of the Company’s short-term investments are classified as Level 1 assets as of June 30, 2025 and 2024. Investments measured at estimated fair value consist of the following as of June 30, 2025 and 2024 (in thousands):

 SCHEDULE OF AVAILABLE-FOR-SALE SECURITIES RECONCILIATION  

During the years ended June 30, 2025 and 2024, there were no transfers between Level 1 and Level 2.