What changed in this filing

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Item 1. Financial Statements

2022-08-04 compared with 2022-05-06 · 232 added, 67 removed, 310 unchanged (49% of the section changed)

3 unchanged sentences

Statements of Assets and Liabilities (Unaudited)

At March 31, 2022 and December 31, 2021

At June 30, 2022 and December 31, 2021

Investment in gold bullion, at fair value (a)

24 unchanged sentences

Gold Trust Micro

Statement of Operations (Unaudited)

For the three months ended March 31, 2022 

Statements of Operations (Unaudited)

For the three and six months ended June 30, 2022 and the period from June 15, 2021 (Date of Inception) to June 30, 2021

Three Months Ended

June 30, 2022

June 15, 2021

Inception) to

June 30, 2021

Six Months Ended

June 30, 2022

June 15, 2021

Inception) to

June 30, 2021

Sponsor’s fees

$ 435,938  

$ 873,013  

Sponsor’s fees waiver

( 232,480 )  

( 39 )  

( 465,538 )  

Total expenses

203,458  

407,475  

Net investment loss

( 203,458 )  

( 513 )  

( 407,475 )  

Net Realized and Unrealized Gain (Loss)

1 unchanged sentence

Gold bullion sold to pay expenses

13,383  

Gold bullion distributed for the redemption of Shares

7,090,732  

10,704,230  

Net realized gain

7,099,299  

10,717,613  

Net change in unrealized appreciation/depreciation

( 86,409,036 )  

Net realized and unrealized gain

( 509,750 )  

Net increase in net assets resulting from operations

( 8,852,426 )  

Net increase in net assets per Share (a)

Net realized and unrealized gain (loss)

( 79,309,737 )  

Net increase in net assets per Share based on average shares outstanding during the period.

( 509,750 )  

1,865,187  

Net increase (decrease) in net assets resulting from operations

$ ( 79,513,195 )  

$ ( 510,263 )  

$ 1,457,712  

$ ( 510,263 )

Net increase (decrease) in net assets per Share (a)

$ ( 1.29 )  

$ ( 1.02 )  

$ 0.02  

Net increase in net assets per Share based on average

See notes to financial statements.

1 unchanged sentence

Gold Trust Micro

Statement of Changes in Net Assets (Unaudited)

For the three months ended March 31, 2022

Three Months Ended

March 31, 2022

Statements of Changes in Net Assets (Unaudited)

For the three and six months ended June 30, 2022

Six Months Ended

June 30, 2022

Net Assets at December 31, 2021

18 unchanged sentences

$ 1,325,724,380  

Net investment loss

Net realized gain

7,099,299  

Net change in unrealized appreciation/depreciation

( 86,409,036 )

Net decrease in net assets resulting from operations

( 79,513,195 )

Capital Share Transactions:

Contributions for Shares issued

Distributions for Shares redeemed

( 210,394,492 )

Net decrease in net assets from capital share transactions

( 210,394,492 )

Decrease in net assets

( 289,907,687 )

Net Assets at June 30, 2022

$ 1,035,816,693  

Shares issued and redeemed

4 unchanged sentences

Net increase in Shares issued and outstanding

( 9,100,000 )

See notes to financial statements.

iShares ®

Gold Trust Micro

Statements of Changes in Net Assets (Unaudited)

For the period from June 15, 2021 (Date of Inception) to June 30, 2021

For the period from

June 15, 2021

(Date of Inception)

to June 30, 2021

Net Assets at June 15, 2021

$ 9,325,000  

Net investment loss

Net change in unrealized appreciation/depreciation

Net decrease in net assets resulting from operations

Decrease in net assets

Net Assets at June 30, 2021

$ 8,815,198  

Shares issued and redeemed

Shares issued

Shares redeemed

Net increase in Shares issued and outstanding

See notes to financial statements.

1 unchanged sentence

Gold Trust Micro

Statement of Cash Flows (Unaudited)

For the three months ended March 31, 2022

Three Months Ended

Statements of Cash Flows (Unaudited)

For the six months ended June 30, 2022 and the period from June 15, 2021 (Date of Inception) to June 30, 2021

Six Months Ended

June 30, 2022

June 15, 2021

(Date of Inception)

to June 30, 2021

Cash Flows from Operating Activities

3 unchanged sentences

Sponsor’s fees paid

( 395,707 )  

Net cash provided by operating activities

3 unchanged sentences

Reconciliation of Net Increase (Decrease) in Net Assets Resulting from Operations to Net Cash Provided by (Used in) Operating Activities

Net increase in net assets resulting from operations

Net increase (decrease) in net assets resulting from operations

$ 1,457,712  

$ ( 510,263 )

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

2 unchanged sentences

Net realized (gain) loss

( 3,618,314 )

( 10,717,613 )  

Net change in unrealized appreciation/depreciation

( 77,556,610 )

8,852,426  

509,750  

Change in operating assets and liabilities:

6 unchanged sentences

Gold bullion distributed for Shares redeemed

$ ( 49,444,381 )

$ ( 259,838,873 )  

See notes to financial statements.

2 unchanged sentences

Schedules of Investments (Unaudited)

At March 31, 2022 and December 31, 2021

March 31, 2022

At June 30, 2022 and December 31, 2021

June 30, 2022

570,104  

19 unchanged sentences

Notes to Financial Statements (Unaudited)

March 31, 2022

June 30, 2022

1 - Organization

The iShares Gold Trust Micro (the “Trust”) was organized on June 15, 2021 as a New York trust.

2 unchanged sentences

The Trust is governed by the provisions of the First Amended and Restated Depositary Trust Agreement (the “Trust Agreement”) executed by the Trustee and the Sponsor as of January 31, 2022.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

BlackRock Financial Management, Inc., (the “Seed Capital Investor”), contributed 5,000 ounces of Gold in exchange for 500,000 shares (the “Seed Creation Baskets”) on June 15, 2021 for the benefit of BlackRock Financial Management, Inc.

At contribution, the value of the gold deposited with the Trust was based on the price of an ounce of gold of $ 1,865.10 .

The Seed Capital Investor is an affiliate of the Sponsor.

The Seed Capital Investor did not and will not receive from the Trust, the Sponsor or any of their affiliates any fee or other compensation in connection with the sale of the Seed Creation Baskets.

The Trust issues units of beneficial interest (“Shares”) representing fractional undivided beneficial interests in its net assets.

The Trust seeks to reflect generally the performance of the price of gold.

23 unchanged sentences

Gain or loss on sales of gold bullion is calculated on a trade date basis using the average cost method.

The following table summarizes activity in gold bullion for the three months ended March 31, 2022:

Three Months Ended March 31, 2022

The following tables summarize activity in gold bullion for the three months ended June 30, 2022 and the period from June 15, 2021 ( Date of Inception) to June 30, 2021:

Three Months Ended June 30, 2022

Beginning balance

3 unchanged sentences

Gold bullion contributed

Gold bullion distributed

( 112,427 )  

1 unchanged sentence

( 210,394,492 )  

7,090,732  

Gold bullion sold to pay expenses

( 116 )  

( 209,456 )  

( 218,023 )  

Net realized gain

7,099,299  

Net change in unrealized appreciation/depreciation

( 86,409,036 )  

Ending balance

570,104  

$ 1,030,934,832  

$ 1,035,878,456  

$ 7,099,299  

Period Ended June 30, 2021

Beginning balance

$ 9,325,500  

Gold bullion contributed

Gold bullion distributed

Gold bullion sold to pay expenses

Net realized gain

Net change in unrealized appreciation/depreciation

( 509,750 )  

Ending balance

$ 9,325,500  

$ 8,815,750  

The following tables summarize activity in gold bullion for the six months ended June 30, 2022 and the period from June 15, 2021 ( Date of Inception) to June 

Six Months Ended June 30, 2022

Beginning balance

479,334  

$ 858,638,067  

$ 872,434,117  

Gold bullion contributed

228,895  

421,813,732  

Gold bullion distributed

( 137,913 )  

( 249,134,643 )  

( 259,838,873 )  

10,704,230  

Gold bullion sold to pay expenses

2 unchanged sentences

( 395,707 )  

13,383  

Net realized gain

7 unchanged sentences

$ 10,717,613  

Period Ended June 30, 2021

Beginning balance

$ 9,325,500  

Gold bullion contributed

Gold bullion distributed

Gold bullion sold to pay expenses

Net realized gain

Net change in unrealized appreciation/depreciation

( 509,750 )  

Ending balance

$ 9,325,500  

$ 8,815,750  

Calculation of Net Asset Value

14 unchanged sentences

Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of March 31, 2022 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of June 30, 2022 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

3 - Trust Expenses

6 unchanged sentences

the Trustee’s fee and reimbursement for its reasonable out-of-pocket expenses, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and, effective January 31, 2022, up to $ 500,000 per annum in legal fees and expenses.

Prior to January 31, 2022 the Sponsor had agreed to assume up to $ 100,000 per annum in legal fees and expenses.

The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the amount required under the Trust Agreement.

To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust.

The amount waived is included in Sponsor’s fees waived in the Statement of Operations.

For the period ended March 31, 2022, the amount waived was $ 233,058 .

Prior to January 31, 2022, the Sponsor had agreed to assume up to $ 100,000 per annum in legal fees and expenses.

The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Trust in excess of the amount required under the Trust Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Trust. The amount waived is included in Sponsor’s fees waived in the Statement of Operations.

For the period ended June 30, 2022, the amount waived was $ 465,538 . 

4 - Related Parties

23 unchanged sentences

8 - Financial Highlights

The following financial highlights relate to investment performance and operations for a Share outstanding for the three months ended March 31, 2022.

The following financial highlights relate to investment performance and operations for a Share outstanding for the three and six months ended June 30, 2022 and 2021.

Three Months Ended

June 30, 2022

June 15, 2021

(Date of Inception)

to June 30, 2021

Six Months Ended

June 30, 2022

June 15, 2021

(Date of Inception)

to June 30, 2021

Net asset value per Share, beginning of period

$ 19.41  

Net investment income (a)

Net realized and unrealized gain (loss) (c)

Net increase in net assets from operations

$ 18.65  

$ 18.19  

$ 18.65  

Net investment loss (a)

( 0.00 ) (b)  

( 0.01 )  

Net realized and unrealized (loss) (c)

( 1.25 )  

( 1.02 )  

( 0.02 )  

Net increase (decrease) in net assets from operations

( 1.25 )  

( 1.02 )  

( 0.03 )  

Net asset value per Share, end of period

$ 18.16  

$ 17.63  

$ 18.16  

$ 17.63  

Total return, at net asset value (d)(e)

6.71 % 

( 6.44 )%  

( 5.47 )%  

( 0.16 )%  

Ratio to average net assets:

Net investment loss (f)

( 0.07 )% 

( 0.14 )%  

( 0.07 )%  

Total expenses (f)

0.15 % 

Total expenses after fees waived (f)

0.07 % 

0.14 %  

0.07 %  

Based on average Shares outstanding during the period.

Amount is greater than $( 0.005 ).

Amount is less than $( 0.005 ).

The amounts reported for a Share outstanding may not accord with the change in aggregate gains and losses on investment for the period due to the timing of Trust Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment.

12 unchanged sentences

Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 − 

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means;

Level 3 − 

Unobservable inputs that are unobservable for the asset or liability, including the Trust’s assumptions used in determining the fair value of investments.

At March 31, 2022 and December 31, 2021, the value of the gold bullion held by the Trust is categorized as Level 1.

At June 30, 2022 and December 31, 2021, the value of the gold bullion held by the Trust is categorized as Level 1.

Management ’

2 unchanged sentences

The discussion and analysis that follows may contain statements that relate to future events or future performance.

In some cases, such forward‑looking statements can be identified by terminology such as “may,”

“should,”

“could,”

“expect,”

“plan,”

“anticipate,”

“believe,”

“estimate,”

“predict,”

“potential”

In some cases, such forward‑looking statements can be identified by terminology such as “

may, ”

should, ”

could, ”

expect, ”

plan, ”

anticipate, ”

believe, ”

estimate, ”

predict, ”

potential ”

or the negative of these terms or other comparable terminology.

2 unchanged sentences

These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances.

Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments.

Whether or not actual results and developments will conform to the Sponsor ’

s expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed below, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments.

Although the Sponsor does not make forward-looking statements unless it believes it has a reasonable basis for doing so, the Sponsor cannot guarantee their accuracy.

Except as required by applicable disclosure laws, neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

s expectations or predictions.

The iShares Gold Trust Micro (the “Trust”) is a grantor trust formed under the laws of the State of New York.

32 unchanged sentences

Below is a description of the valuation of gold bullion, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position, is provided in the section entitled “Valuation of Gold Bullion;

Computation of Net Asset Value” above.

Computation of Net Asset Value”

In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies.

Results of Operations

The Quarter Ended March 31, 2022

The Trust’s net asset value increased from $872,384,122 at December 31, 2021 to $1,325,724,380 at March 31, 2022, a 51.97% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding shares, which rose from 47,950,000 Shares at December 31, 2021 to 68,300,000 Shares at March 31, 2022, a consequence of 22,900,000 Shares (458 Baskets) being created and 2,550,000 Shares (51 Baskets) being redeemed during the period.

The increase in the Trust’s net asset value also benefited from an increase in the LMBA Gold Price, which grew 6.71% from $1,820.10 at December 31, 2021 to $1,942.15 at March 31, 2022.

The 6.71% increase in the NAV from $18.19 at December 31, 2021 to $19.41 at March 31, 2022 is directly related to the 6.71% increase in the price of gold.

The NAV increased slightly less than the price of gold on a percentage basis due to the Sponsor’s fees, which were $204,017 for the quarter, or 0.02% of the Trust’s average weighted assets of $1,186,510,208 during the quarter.

The NAV of $20.38 on March 8, 2022 was the highest during the quarter, compared with a low during the quarter of $17.87 on January 28, 2022.

Net increase in net assets resulting from operations for the quarter ended March 31, 2022 was $80,970,907 resulting from an unrealized gain on investment in gold bullion of $77,556,610, a net realized gain of $3,613,498 on gold distributed for the redemption of Shares, and a net realized gain of $4,816 from gold bullion sold to pay expenses during the quarter, partially offset by a net investment loss of $204,017.

The Quarter Ended June 30, 2022

The Trust’s net asset value decreased from $1,325,724,380 at March 31, 2022 to $1,035,816,693 at June 30, 2022 a 21.87% decrease.

The decrease in the Trust’s net asset value resulted primarily from a decrease in the number of outstanding shares, which fell from 68,300,000 Shares at March 31, 2022 to 57,050,000 Shares at June 30, 2022, a consequence of 11,250,000 Shares (225 Baskets) being redeemed during the period.

The Trust’s net asset value was also affected by a decrease in the LMBA Gold Price, which fell 6.44% from $1,942.15 at March 31, 2022 to $1,817.00 at June 30, 2022.

The 6.44% decrease in the NAV from $19.41 at March 31, 2022 to $18.16 at June 30, 2022 is directly related to the 6.44% decrease in the price of gold.

The NAV decreased slightly less than the price of gold on a percentage basis due to the Sponsor’s fees, which were $203,458 for the quarter, or 0.02% of the Trust’s average weighted assets of $1,162,407,111 during the quarter.

The NAV of $19.76 on April 13, 2022 was the highest during the quarter, compared with a low during the quarter of $18.08 on May 16, 2022.

Net decrease in net assets resulting from operations for the quarter ended June 30, 2022 was $79,513,195, resulting from an unrealized loss on investment in gold bullion of $86,409,036, a net realized gain of $7,090,732 on gold distributed for the redemption of Shares, a net realized gain of $8,567 from gold bullion sold to pay expenses during the quarter, and a net investment loss of $203,458.

Other than the Sponsor’s fees of $203,458, the Trust had no expenses during the quarter.

The Six-Month Period Ended June 30, 2022

The Trust’s net asset value increased from $872,384,122 at December 31, 2021 to $1,035,816,693 at June 30, 2022, a 18.73% increase.

The increase in the Trust’s net asset value resulted primarily from an increase in the number of outstanding shares, which rose from 47,950,000 Shares at December 31, 2021 to 57,050,000 Shares at June 30, 2022, a consequence of 22,900,000 Shares (458 Baskets) being created and 13,800,000 Shares (276 Baskets) being redeemed during the period.

The increase in the Trust’s net asset value was partially offset by a decrease in the LMBA Gold Price, which fell 0.17% from $1,820.10 at December 31, 2021 to $1,817.00 at June 30, 2022.

The 0.16% decrease in the NAV from $18.19 at December 31, 2021 to $18.16 at June 30, 2022 is directly related to the 0.17% decrease in the price of gold.

The NAV decreased slightly less than the price of gold on a percentage basis due to the Sponsor’s fees, which were $407,475 for the period, or 0.03% of the Trust’s average weighted assets of $1,174,392,076 during the period.

The NAV of $20.38 on March 8, 2022 was the highest during the period, compared with a low during the period of $17.87 on January 28, 2022.

Net increase in net assets resulting from operations for the six months ended June 30, 2022 was $1,457,712, resulting from an unrealized loss on investment in gold bullion of $8,852,426, a net realized gain of $10,704,230 on gold distributed for the redemption of Shares, a net realized gain of $13,383 from gold bullion sold to pay expenses during the period, and a net investment loss of $407,475.

Other than the Sponsor’s fees of $407,475, the Trust had no expenses during the period.

Quantitative and Qualitative Disclosures About Market Risk.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements