iShares Gold Trust Micro 10-Q

Item 1. Financial Statements iShares ® Gold Trust Micro Statements of Assets and Liabilities (Unaudited) At September 30, 2024 and December 31, 2023 September 30, 2024 December 31, 2023 Assets Investment in gold bullion, at fair value (a) $ 1,451,073,250 $ 1,221,895,792 Total Assets 1,451,073,250 1,221,895,792 Liabilities Sponsor’s fees payable 81,633 65,622 Total Liabilities 81,633 65,622 Commitments and contingent liabilities (Note 6) — — Net Assets $ 1,450,991,617 $ 1,221,830,170 Shares issued and outstanding (b) 55,300,000 59,350,000 Net asset value per Share (Note 2C) $ 26.24 $ 20.59 (a) Cost of investment in gold bullion: $1,079,058,547 and $1,105,542,600, respectively. (b) No par value, unlimited amount authorized. See notes to financial statements. 1 Table of Contents iShares ® Gold Trust Micro Statements of Operations (Unaudited) For the three and nine months ended September 30, 2024 and 2023 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Expenses Sponsor’s fees $ 301,635 $ 205,541 $ 788,073 $ 662,721 Sponsor’s fees waiver ( 67,034 ) ( 45,677 ) ( 175,158 ) ( 147,290 ) Total expenses 234,601 159,864 612,915 515,431 Net investment loss ( 234,601 ) ( 159,864 ) ( 612,915 ) ( 515,431 ) Net Realized and Unrealized Gain (Loss) Net realized gain from: Gold bullion sold to pay expenses 44,801 9,490 96,149 31,300 Gold bullion distributed for the redemption of Shares 4,724,615 4,703,690 38,693,737 28,309,527 Net realized gain 4,769,416 4,713,180 38,789,886 28,340,827 Net change in unrealized appreciation/depreciation 156,618,421 ( 23,862,569 ) 255,661,511 11,248,169 Net realized and unrealized gain (loss) 161,387,837 ( 19,149,389 ) 294,451,397 39,588,996 Net increase (decrease) in net assets resulting from operations $ 161,153,236 $ ( 19,309,253 ) $ 293,838,482 $ 39,073,565 Net increase (decrease) in net assets per Share (a) $ 2.98 $ ( 0.41 ) $ 5.77 $ 0.77 (a) Net increase (decrease) in net assets per Share based on average shares outstanding during the period. See notes to financial statements. 2 Table of Contents iShares ® Gold Trust Micro Statements of Changes in Net Assets (Unaudited) For the three, six and nine months ended September 30, 2024 Nine Months Ended September 30, 2024 Net Assets at December 31, 2023 $ 1,221,830,170 Operations: Net investment loss ( 175,058 ) Net realized gain 24,845,469 Net change in unrealized appreciation/depreciation 50,143,311 Net increase in net assets resulting from operations 74,813,722 Capital Share Transactions: Contributions for Shares issued 57,094,808 Distributions for Shares redeemed ( 259,797,084 ) Net decrease in net assets from capital share transactions ( 202,702,276 ) Decrease in net assets ( 127,888,554 ) Net Assets at March 31, 2024 $ 1,093,941,616 Operations: Net investment loss ( 203,256 ) Net realized gain 9,175,001 Net change in unrealized appreciation/depreciation 48,899,779 Net increase in net assets resulting from operations 57,871,524 Capital Share Transactions: Contributions for Shares issued 94,420,090 Distributions for Shares redeemed ( 44,906,237 ) Net increase in net assets from capital share transactions 49,513,853 Increase in net assets 107,385,377 Net Assets at June 30, 2024 $ 1,201,326,993 Operations: Net investment loss ( 234,601 ) Net realized gain 4,769,416 Net change in unrealized appreciation/depreciation 156,618,421 Net increase in net assets resulting from operations 161,153,236 Capital Share Transactions: Contributions for Shares issued 108,832,468 Distributions for Shares redeemed ( 20,321,080 ) Net increase in net assets from capital share transactions 88,511,388 Increase in net assets 249,664,624 Net Assets at September 30, 2024 $ 1,450,991,617 Shares issued and redeemed Shares issued 11,250,000 Shares redeemed ( 15,300,000 ) Net decrease in Shares issued and outstanding ( 4,050,000 ) See notes to financial statements. 3 Table of Contents iShares ® Gold Trust Micro Statements of Changes in Net Assets (Unaudited) For the three, six and nine months ended September 30, 2023 Nine Months Ended September 30, 2023 Net Assets at December 31, 2022 $ 1,127,844,172 Operations: Net investment loss ( 182,704 ) Net realized gain 14,583,406 Net change in unrealized appreciation/depreciation 77,200,802 Net increase in net assets resulting from operations 91,601,504 Capital Share Transactions: Contributions for Shares issued 75,395,013 Distributions for Shares redeemed ( 330,968,439 ) Net decrease in net assets from capital share transactions ( 255,573,426 ) Decrease in net assets ( 163,971,922 ) Net Assets at March 31, 2023 $ 963,872,250 Operations: Net investment loss ( 172,863 ) Net realized gain 9,044,241 Net change in unrealized appreciation/depreciation ( 42,090,064 ) Net decrease in net assets resulting from operations ( 33,218,686 ) Capital Share Transactions: Contributions for Shares issued 102,276,250 Distributions for Shares redeemed ( 116,382,514 ) Net decrease in net assets from capital share transactions ( 14,106,264 ) Decrease in net assets ( 47,324,950 ) Net Assets at June 30, 2023 $ 916,547,300 Operations: Net investment loss ( 159,864 ) Net realized gain 4,713,180 Net change in unrealized appreciation/depreciation ( 23,862,569 ) Net decrease in net assets resulting from operations ( 19,309,253 ) Capital Share Transactions: Contributions for Shares issued 60,575,037 Distributions for Shares redeemed ( 93,181,920 ) Net decrease in net assets from capital share transactions ( 32,606,883 ) Decrease in net assets ( 51,916,136 ) Net Assets at September 30, 2023 $ 864,631,164 Shares issued and redeemed Shares issued 12,300,000 Shares redeemed ( 28,300,000 ) Net decrease in Shares issued and outstanding ( 16,000,000 ) See notes to financial statements. 4 Table of Contents iShares ® Gold Trust Micro Statements of Cash Flows (Unaudited) For the nine months ended September 30, 2024 and 2023 Nine Months Ended September 30, 2024 2023 Cash Flows from Operating Activities Proceeds from gold bullion sold to pay expenses $ 596,904 $ 528,817 Expenses – Sponsor’s fees paid ( 596,904 ) ( 528,817 ) Net cash provided by operating activities — — Increase (decrease) in cash — — Cash, beginning of period — — Cash, end of period $ — $ — 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 $ 293,838,482 $ 39,073,565 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Proceeds from gold bullion sold to pay expenses 596,904 528,817 Net realized (gain) loss ( 38,789,886 ) ( 28,340,827 ) Net change in unrealized appreciation/depreciation ( 255,661,511 ) ( 11,248,169 ) Change in operating assets and liabilities: Sponsor’s fees payable 16,011 ( 13,386 ) Net cash provided by (used in) operating activities $ — $ — Supplemental disclosure of non-cash information: Gold bullion contributed for Shares issued $ 260,347,366 $ 238,246,300 Gold bullion distributed for Shares redeemed $ ( 325,024,401 ) $ ( 540,532,873 ) See notes to financial statements. 5 Table of Contents iShares ® Gold Trust Micro Schedules of Investments (Unaudited) At September 30, 2024 and December 31, 2023 September 30, 2024 Description Ounces Cost Fair Value Gold bullion 551,749 $ 1,079,058,547 $ 1,451,073,250 Total Investments – 100.01 % 1,451,073,250 Less Liabilities – (0.01) % ( 81,633 ) Net Assets – 100.00 % $ 1,450,991,617 December 31, 2023 Description Ounces Cost Fair Value Gold bullion 592,464 $ 1,105,542,600 $ 1,221,895,792 Total Investments – 100.01 % 1,221,895,792 Less Liabilities – (0.01) % ( 65,622 ) Net Assets – 100.00 % $ 1,221,830,170 See notes to financial statements. 6 Table of Contents iShares ® Gold Trust Micro Notes to Financial Statements (Unaudited) September 30, 2024 1 - Organization The iShares Gold Trust Micro (the “Trust”) was organized on June 15, 2021 as a New York trust. The trustee is The Bank of New York Mellon (the “Trustee”), which is responsible for the day-to-day administration of the Trust. The Trust’s sponsor is iShares Delaware Trust Sponsor LLC, a Delaware limited liability company (the “Sponsor”). 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. The Trust seeks to reflect generally the performance of the price of gold. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Trust is designed to provide a vehicle for investors to make an investment similar to an investment in gold. The accompanying unaudited financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10 -Q and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). In the opinion of management, all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the interim period financial statements, have been made. Interim period results are not necessarily indicative of results for a full-year period. These financial statements and the notes thereto should be read in conjunction with the Trust’s financial statements included in its Annual Report on Form 10 -K for the year ended December 31, 2023, as filed with the SEC on February 20, 2024. The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose and follows the accounting and reporting guidance under the Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services - Investment Companies, but is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended. 2 - Significant Accounting Policies A. Basis of Accounting The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. B. Gold Bullion JPMorgan Chase Bank N.A., London branch (the “Custodian”), is responsible for the safekeeping of gold bullion owned by the Trust. Fair value of the gold bullion held by the Trust is based on that day’s London Bullion Market Association (“LBMA”) Gold Price PM. “LBMA Gold Price PM” is the price per fine troy ounce of gold, stated in U.S. dollars, determined by ICE Benchmark Administration (“IBA”) following an electronic auction consisting of one or more 30 - second rounds starting at 3:00 p.m. (London time), on each day that the London gold market is open for business and published shortly thereafter. If there is no LBMA Gold Price PM on any day, the Trustee is authorized to use the most recently announced price of gold determined in an electronic auction hosted by IBA that begins at 10:30 a.m. (London time) (“LBMA Gold Price AM”) unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for evaluation. Gain or loss on sales of gold bullion is calculated on a trade date basis using the average cost method. The following tables summarize activity in gold bullion for the three months ended September 30, 2024 and 2023: Three Months Ended September 30, 2024 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 515,421 $ 985,998,676 $ 1,201,394,958 $ — Gold bullion contributed 44,401 108,832,468 108,832,468 — Gold bullion distributed ( 7,982 ) ( 15,596,465 ) ( 20,321,080 ) 4,724,615 Gold bullion sold to pay expenses ( 91 ) ( 176,132 ) ( 220,933 ) 44,801 Net realized gain — — 4,769,416 — Net change in unrealized appreciation/depreciation — — 156,618,421 — Ending balance 551,749 $ 1,079,058,547 $ 1,451,073,250 $ 4,769,416 7 Table of Contents Three Months Ended September 30, 2023 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 479,333 $ 874,314,966 $ 916,602,313 $ — Gold bullion contributed 31,451 60,575,037 60,575,037 — Gold bullion distributed ( 48,426 ) ( 88,478,230 ) ( 93,181,920 ) 4,703,690 Gold bullion sold to pay expenses ( 84 ) ( 154,226 ) ( 163,716 ) 9,490 Net realized gain — — 4,713,180 — Net change in unrealized appreciation/depreciation — — ( 23,862,569 ) — Ending balance 462,274 $ 846,257,547 $ 864,682,325 $ 4,713,180 The following tables summarize activity in gold bullion for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30, 2024 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 592,464 $ 1,105,542,600 $ 1,221,895,792 $ — Gold bullion contributed 112,266 260,347,366 260,347,366 — Gold bullion distributed ( 152,717 ) ( 286,330,664 ) ( 325,024,401 ) 38,693,737 Gold bullion sold to pay expenses ( 264 ) ( 500,755 ) ( 596,904 ) 96,149 Net realized gain — — 38,789,886 — Net change in unrealized appreciation/depreciation — — 255,661,511 — Ending balance 551,749 $ 1,079,058,547 $ 1,451,073,250 $ 38,789,886 Nine Months Ended September 30, 2023 Ounces Cost Fair Value Realized Gain (Loss) Beginning balance 622,347 $ 1,120,732,110 $ 1,127,908,719 $ — Gold bullion contributed 122,836 238,246,300 238,246,300 — Gold bullion distributed ( 282,635 ) ( 512,223,346 ) ( 540,532,873 ) 28,309,527 Gold bullion sold to pay expenses ( 274 ) ( 497,517 ) ( 528,817 ) 31,300 Net realized gain — — 28,340,827 — Net change in unrealized appreciation/depreciation — — 11,248,169 — Ending balance 462,274 $ 846,257,547 $ 864,682,325 $ 28,340,827 C. Calculation of Net Asset Value On each business day, as soon as practicable after 4:00 p.m. (New York time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the gold and other assets held by the Trust. The Trustee computes the net asset value per Share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made. D. Offering of the Shares Shares are issued and redeemed continuously in aggregations of 50,000 Shares in exchange for gold bullion rather than cash. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust only transacts with registered broker-dealers that are eligible to settle securities transactions through the book-entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Trustee and the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”). Holders of Shares of the Trust may redeem their Shares at any time acting through an Authorized Participant and in the prescribed aggregations of 50,000 Shares; provided , that redemptions of Shares may be suspended during any period while regular trading on NYSE Arca, Inc. (“NYSE Arca”) is suspended or restricted, or in which an emergency exists as a result of which delivery, disposal or evaluation of gold is not reasonably practicable. The per Share amount of gold exchanged for a purchase or redemption represents the per Share amount of gold held by the Trust, after giving effect to its liabilities. When gold bullion is exchanged in settlement of a redemption, it is considered a sale of gold bullion for accounting purposes. 8 Table of Contents E. Federal Income Taxes The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. 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 September 30, 2024 and does not believe that there are any uncertain tax positions that require recognition of a tax liability. 3 - Trust Expenses The Sponsor’s fee is accrued daily at an annualized rate equal to 0.09 % of the net asset value of the Trust, paid monthly in arrears. The Sponsor may, at its discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. The Sponsor has voluntarily agreed to waive a portion of the Sponsor’s fee so that the Sponsor’s fee after the fee waiver will not exceed 0.07 % through June 30, 2027. Although the Sponsor has no current intention of doing so, because the fee waiver is voluntary, the Sponsor may revert to the 0.09 % fee prior to June 30, 2027. Should the Sponsor choose to revert to the 0.09 % fee (or an amount higher than 0.07 % but no greater than 0.09 % annualized), prior to June 30, 2027, it will provide shareholders with at least 30 days’ prior written notice of such change through either a prospectus supplement to its registration statement or through a report furnished on Form 8 -K. For the nine months ended September 30, 2024, the amount waived was $ 175,158 . The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee, the Custodian’s fee, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and up to $ 500,000 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. 4 - Related Parties The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s fee is paid by the Sponsor and is not a separate expense of the Trust. 5 - Indemnification The Trust Agreement provides that the Trustee shall indemnify the Sponsor, its directors, employees and agents against, and hold each of them harmless from, any loss, liability, cost, expense or judgment (including reasonable fees and expenses of counsel) (i) caused by the negligence or bad faith of the Trustee or (ii) arising out of any information furnished in writing to the Sponsor by the Trustee expressly for use in the registration statement, or any amendment thereto or periodic or other report filed with the SEC relating to the Shares that is not materially altered by the Sponsor. The Trust Agreement provides that the Sponsor and its shareholders, directors, officers, employees, affiliates (as such term is defined under the Securities Act of 1933, as amended) and subsidiaries shall be indemnified from the Trust and held harmless against any loss, liability or expense incurred without their ( 1 ) negligence, bad faith, willful misconduct or willful malfeasance arising out of or in connection with the performance of their obligations under the Trust Agreement or any actions taken in accordance with the provisions of the Trust Agreement or ( 2 ) reckless disregard of their obligations and duties under the Trust Agreement. The Trust has agreed that the Custodian will only be responsible for any loss or damage suffered by the Trust as a direct result of the Custodian’s negligence, fraud or willful default in the performance of its duties. The Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Trust, which cannot be predicted with any certainty. 6 - Commitments and Contingent Liabilities In the normal course of business, the Trust may enter into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. 7 - Concentration Risk Substantially all of the Trust’s assets are holdings of gold bullion, which creates a concentration risk associated with fluctuations in the price of gold. Accordingly, a decline in the price of gold will have an adverse effect on the value of the Shares of the Trust. Factors that may have the effect of causing a decline in the price of gold include large sales by the official sector (governments, central banks, and related institutions); a significant increase in the hedging activities of gold producers; significant changes in the attitude of speculators, investors and other market participants towards gold; global gold supply and demand; global or regional political, economic or financial events and situations; investors’ expectations with respect to the rate of inflation; interest rates; investment and trading activities of hedge funds and commodity funds; other economic variables such as income growth, economic output, and monetary policies; and investor confidence. 9 Table of Contents 8 - Financial Highlights The following financial highlights relate to investment performance and operations for a Share outstanding for the three and nine months ended September 30, 2024 and 2023. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net asset value per Share, beginning of period $ 23.26 $ 19.09 $ 20.59 $ 18.10 Net investment loss (a) ( 0.00 ) (b) ( 0.00 ) (b) ( 0.01 ) ( 0.01 ) Net realized and unrealized gain (loss) (c) 2.98 ( 0.42 ) 5.66 0.58 Net increase (decrease) in net assets from operations 2.98 ( 0.42 ) 5.65 0.57 Net asset value per Share, end of period $ 26.24 $ 18.67 $ 26.24 $ 18.67 Total return, at net asset value (d)(e) 12.81 % ( 2.20 )% 27.44 % 3.15 % Ratio to average net assets: Net investment loss (f) ( 0.07 )% ( 0.07 )% ( 0.07 )% ( 0.07 )% Total expenses (f) 0.09 % 0.09 % 0.09 % 0.09 % Total expenses after fees waived 0.07 % 0.07 % 0.07 % 0.07 % (a) Based on average Shares outstanding during the period. (b) Amount is greater than $( 0.005 ). (c) 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 Share transactions in relation to the fluctuating fair values of the Trust’s underlying investment. (d) Based on the change in net asset value of a Share during the period. (e) Percentage is not annualized. (f) Percentage is annualized. 9 - Investment Valuation U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investment at fair value. Various inputs are used in determining the fair value of assets and liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1 −  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; and 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 September 30, 2024 and December 31, 2023, the value of the gold bullion held by the Trust is categorized as Level 1. 10 Table of Contents