United States Commodity Funds LLC - Financial Statements

EX-99.1 2 tm268488d3_ex99-1.htm EXHIBIT 99.1

United
States Commodity Funds LLC

Contents

| | Page |
| | |
| Report of Independent Registered Public Accounting Firm | F - 1 |
| | |
| Statements of Financial Condition | F - 2 |
| | |
| Notes to the Financial Statements | F - 3 |

| | | |

Report
of Independent Registered Public Accounting Firm

To the Members of the Audit Committee
of the Board of Directors of United States Commodity Funds LLC

Opinion on the Financial Statements

We have audited the accompanying statements of
financial condition of United States Commodity Funds LLC (the “Company”) as of December 31, 2025 and 2024, and the related
notes to these financial statements (collectively referred to as the “financial statements”). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, in conformity
with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the
standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but
not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly,
we express no such opinion.

Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is
a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the
audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially
challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the
financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion
on the critical audit matter or on the accounts or disclosures to which it relates.

| | F- 1 | |

Consideration of Loss Contingencies

Description of the Matter

As described in Note 5 of the financial statements,
the Company is party to various legal proceedings and regulatory inquiries. The Company accrues a liability when it believes a loss is
probable and the amount can be reasonably estimated. With respect to these legal matters, the Company discloses it is currently unable
to predict the timing or outcome of, or reasonably estimate the losses or range of possible losses resulting from these matters. It is
reasonably possible that this estimate will change in the near term. An adverse outcome regarding these matters could materially adversely
affect the Company's financial condition, results of operations, and cash flows.

Auditing the Company’s accounting for, and
disclosure of, loss contingencies related to the various legal proceedings was especially challenging due to the significant judgement
required to evaluate management’s assessment of the likelihood of a loss, and of the potential amount or range of such loss.

How We Addressed the Matter in Our Audit

To test the Company’s assessment of the
probability of incurrence of a loss, whether the loss was reasonably estimable, and the conclusion and disclosures regarding any range
of possible losses, including when the Company believes such a range cannot be reasonably estimated at this time, we read the minutes
or a summary of the meetings of the committees of the Board of Directors, requested and received internal and external legal counsel confirmations
letters, discussed with legal counsel the nature of the various matters and obtained representations from management. We also evaluated
the appropriateness of the related disclosures included in Note 5 to the financial statements.

/s/ BPM LLP

We have served as the Company’s auditor since 2015.

San Francisco, California

March 20, 2026

| | F- 2 | |

United
States Commodity Funds LLC

Statements of Financial Condition

December 31, 2025 and 2024

| | | 2025 | | | | 2024 | | |
| ASSETS | | | | | | | | |
| | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 1,540,906 | | | $ | 2,267,648 | |
| Investments at fair value | | | 2,432,322 | | | | 2,332,471 | |
| Management fees receivable - related party | | | 1,185,761 | | | | 1,227,784 | |
| Other receivables - related party | | | 543,006 | | | | 203,660 | |
| Other current assets | | | 178,330 | | | | 201,610 | |
| Income tax receivable | | | 145,804 | | | | 10,224 | |
| | | | | | | | | |
| Total current assets | | | 6,026,129 | | | | 6,243,397 | |
| | | | | | | | | |
| Deferred tax assets, net | | | 310,251 | | | | 363,980 | |
| Operating lease right-of-use asset | | | 362,329 | | | | 507,780 | |
| Other assets | | | 13,455 | | | | 13,455 | |
| | | | | | | | | |
| Total assets | | $ | 6,712,164 | | | $ | 7,128,612 | |
| | | | | | | | | |
| LIABILITIES AND MEMBER'S EQUITY | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable and accrued liabilities | | $ | 1,230,583 | | | $ | 708,134 | |
| Income taxes payable | | | - | | | | 630,771 | |
| Operating lease liability, current portion | | | 163,343 | | | | 105,161 | |
| | | | | | | | | |
| Total current liabilities | | | 1,393,926 | | | | 1,444,066 | |
| | | | | | | | | |
| Operating lease liability, net of current portion | | | 242,273 | | | | 405,616 | |
| Commitments and contingencies (Note 5) | | | | | | | | |
| | | | | | | | | |
| Member's equity | | | 5,075,965 | | | | 5,278,930 | |
| | | | | | | | | |
| Total liabilities and member's equity | | $ | 6,712,164 | | | $ | 7,128,612 | |

| | F- 3 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

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| 1. | Business |

In May 2005, United States Commodity
Funds LLC (“USCF” or the “Company”), a wholly-owned subsidiary of USCF Investments, Inc. ("USCF Investments")
(formerly known as Wainwright Holdings, Inc.), was formed as a single member limited liability company in the State of Delaware. On December 9, 2016,
USCF Investments was acquired by The Marygold Companies, Inc. (the “Parent” formerly known as “Concierge Technologies,
Inc.), a public company, ticker MGLD, and currently trades on the NYSE American effective March 10, 2022 with majority ownership held
by two shareholders who also are indirect majority owners of USCF Investments. The Parent will continue to operate USCF as an independent
wholly-owned subsidiary of USCF Investments. USCF will also maintain its current independent and management director structure. USCF is
a registered commodity pool operator with the Commodity Futures Trading Commission (“CFTC”) and a member of the National Futures
Association (“NFA”) and serves as the General Partner (“General Partner”) for various limited partnerships (“LP”)
and the Sponsor (“Sponsor) of a Delaware statutory trust and each fund that is a series thereof, in each case as noted below.

The Company’s operating activities
consist primarily of providing management services to eight publicly-traded funds.

The Company is currently the General
Partner or Sponsor for each of the following funds that are commodity pools, have registered their shares registered under the Securities
Act of 1933 and trade on the NYSE Arca, Inc:

| | USCF as General Partner for the following Funds: | |
| | United States Oil Fund, LP (“USO”) | Organized as a Delaware limited partnership in May 2005 |
| | United States Natural Gas Fund, LP (“UNG”) | Organized as a Delaware limited partnership in November 2006 |
| | United States Gasoline Fund, LP (“UGA”) | Organized as a Delaware limited partnership in April 2007 |
| | United States 12 Month Oil Fund, LP (“USL”) | Organized as a Delaware limited partnership in June 2007 |
| | United States 12 Month Natural Gas Fund, LP (“UNL”) | Organized as a Delaware limited partnership in June 2007 |
| | United States Brent Oil Fund, LP (“BNO”) | Organized as a Delaware limited partnership in September 2009 |
| | USCF as fund Sponsor - each a series within the United States Commodity Index Funds Trust (“USCIF Trust”): | |
| | United States Commodity Index Fund (“USCI”) | A series of the USCIF Trust created in April 2010 |
| | United States Copper Index Fund (“CPER”) | A series of the USCIF Trust created in November 2010 |

All USCF funds are collectively referred
to as the “Funds” hereafter.

| 2. | Summary of Significant Accounting Policies |

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Basis
of Presentation

The accompanying statements of financial
condition of the Company have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted
in the United States of America (“U.S. GAAP”).

Use
of Estimates

The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure 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.

| | F- 4 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

---

| 2. | Summary of Significant Accounting Policies, continued |

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Cash
and Cash Equivalents

The
Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.
The Company places its cash with various high credit quality institutions. At times, the Company maintains cash deposits in excess of
the United States Federal Deposit Insurance Corporation (“FDIC”) coverage of $250,000, but the Company does not expect any
losses.

Management
Fees Receivable – Related Party

Management
fees receivable generally consists of one month of management fees which are collected in the month after they are earned. The Company
is the General Partner or Sponsor of various Funds for which the Company earns a management fee.

Management
closely monitors receivables and records an allowance for credit losses for any balances that are determined to be uncollectible. As of
December 31, 2025 and 2024, the Company
considered all remaining accounts receivable to be fully collectible.

Other
Receivables - Related Party

From time to time the Company transfers cash to its Parent or related parties or makes payments on their
behalf. Amounts that the Company expects repayments for are included in Other Receivables - Related Party. No interest is charged on such
receivables, and there is no allowance for credit losses as the Company anticipates repayment in full.

Investments

Management
determines the appropriate classification of investments at the time of purchase based upon management’s intent with respect to
such investments. Investments consist of equities, short-term treasury bills, and money market funds. Equity securities are classified
as available-for-sale securities and debt securities are classified as trading securities. The Company measures the investments at estimated
fair value at each reporting date.

Revenue
Recognition – Related Parties

The Company
recognizes revenue under the Funds’ respective Limited Partnership Agreements, as amended from time to time (the “Limited
Partnership Agreements”) and the Trust Agreement, as amended from time to time (the “Trust Agreement”). These agreements
provide for fees based upon a percentage of the daily average net asset value of the Funds. The Company is responsible for investing the
assets of the Funds in accordance with the objectives and policies of the respective Funds. In addition, the Company has arranged for
one or more third parties to provide administrative, custody, accounting, transfer agency and other necessary services to the Funds and
is contractually obligated to pay for these services. The Funds are contractually obligated to pay the Company a management fee, which
is paid monthly, based on the average daily net assets of the Funds.

USO pays a management
fee of 0.45% (45 basis points) per annum on its average daily net assets. UNG pays a fee equal to 0.60% (60 basis points) per annum on
average daily net assets of $1,000,000,000 or less and 0.50% (50 basis points) of average daily net assets that are greater than $1,000,000,000.
USL and UGA each pay a fee of 0.60% (60 basis points) per annum on their average daily net assets. Effective May 1, 2024, the management
fee that UNL was contractually obligated to pay USCF, based on UNL’s average daily total net assets and is paid monthly, was reduced
from 0.75% per annum to 0.60% per annum. Simultaneously, the voluntary fee waiver, pursuant to which USCF paid certain expenses on a discretionary
basis typically borne by UNL, where expenses exceed 0.15% (15 basis points) of UNL’s NAV, on an annualized basis, was terminated
and no longer in effect as of May 1, 2024. BNO pays a fee of 0.75% (75 basis points) per annum on their average daily net assets. USCI
pays a fee of 0.80% (80 basis points) per annum on its average daily net assets. CPER pays a fee of 0.65% (65 basis points) per annum
on its average daily net assets.

The Company
recognizes revenue in accordance with Accounting Standards Codification 606 (“ASC 606"), Revenue from Contracts with Customers.
Management fees are recognized in the period earned in accordance with the terms of their respective agreements. Given the nature of our
operations, the Company has not capitalized any costs to obtain or fulfill contracts as of December 31, 2025 or 2024.

| | F- 5 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

---

| 2. | Summary of Significant Accounting Policies, continued |

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Fund
Costs

The
Funds pay for all brokerage fees, taxes and other expenses, including registration or other fees paid to the SEC, the FINRA formerly the
National Association of Securities Dealers, or any other regulatory agency in connection with the offer and sale of subsequent shares
after their initial registration and all fund legal, administration, accounting and custodial costs, printing, and other reporting expenses
associated therewith.

---

Fair Value Measurements

The Company’s short-term investments
are carried at estimated fair value. In determining fair value, the Company follows the guidance of Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurement (“ASC 820”).
Under ASC 820, the fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability
(i.e., the exit price) in an orderly transaction between market participants at the measurement date.

ASC 820 establishes a fair value hierarchy
based on the lowest level input that is significant to the fair value measurement in its entirety:

Level 1 – Quoted
prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities, without adjustment.

Level 2 – Quoted
prices in markets that are not considered to be active for identical or similar assets or liabilities, quoted prices in active markets
of similar assets or liabilities, and inputs other than quoted prices that are observable or can be corroborated by observable market
data.

Level 3 – Pricing
inputs are unobservable and include situations where there is little, if any, market activity for the investment.

Short-term investments are valued at
the closing price reported on the active market on which the individual securities are traded.

Income Taxes

The Company has filed an election with
the Internal Revenue Service to be treated as an association taxable as a corporation. The Company now files a federal consolidated income
tax return with entities not included on these financials, previously the Company filed its own stand-alone tax returns. In connection
with filing a consolidated federal income tax return, the tax benefit of utilizing tax losses generated by the consolidated group is not
reflected on USCF’s statements of financial condition. The tax provision is prepared as if the Company filed its own stand-alone
tax returns and assumes that periodic payments are made on time to taxing authorities. The Company has remitted dividends to the Parent
in excess of taxes due and would pay such taxes periodically if it had an obligation to do so. Payments may ultimately not be required
due to losses generated by the consolidated group which are not reflected herein.

The Company accounts for income taxes
using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases,
valuation of net operating losses and tax credit carryforwards, if any.

Deferred tax assets and liabilities are
measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. If necessary, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets until it is
more likely than not that such assets will be realized.

| | F- 6 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

---

| 2. | Summary of Significant Accounting Policies, continued |

The Company provides for uncertain tax
positions using guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return. It provides that a tax benefit from an uncertain tax position
may be recognized when it is more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of the
accounting standard and in subsequent periods. In addition, the accounting standard provides guidance on derecognition, classification,
interest and penalties, accounting in interim periods, disclosure and transition.

Concentration
of Credit Risk

Concentrations
of management fees receivable as of December 31, 2025 and 2024 are as follows:

| | | December 31, 2025 | | | | | | |
| Fund | | Management Fees Receivable | | | | | | |
| | | | | | | | | |
| USO | | $ | 363,996 | | | | 31 | % |
| UNG | | | 287,980 | | | | 24 | % |
| CPER | | | 210,143 | | | | 18 | % |
| USCI | | | 192,001 | | | | 16 | % |
| All Others | | | 131,641 | | | | 11 | % |
| Total | | $ | 1,185,761 | | | | 100 | % |

| | | December 31, 2024 | | | | | | |
| Fund | | Management Fees Receivable | | | | | | |
| | | | | | | | | |
| USO | | $ | 436,916 | | | | 36 | % |
| UNG | | | 412,564 | | | | 34 | % |
| USCI | | | 128,905 | | | | 10 | % |
| CPER | | | 85,037 | | | | 7 | % |
| All Others | | | 164,362 | | | | 13 | % |
| Total | | $ | 1,227,784 | | | | 100 | % |

Recent Accounting Pronouncements

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In December 2023, the FASB issued ASU
No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s
effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective for annual periods beginning
after December 15, 2024 and was adopted by the Company effective January 1, 2025. The adoption of this ASU did not have an impact on the
Company’s financial statements, as the guidance relates solely to expanded income tax disclosures.

No other recently issued accounting pronouncements
are expected to have a material impact on the Company’s financial statements.

| | F- 7 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

| 3. | Investments and Fair Value Measurements |

Investments measured at estimated fair value consist of the
following as of December 31, 2025 and 2024:

| | | December 31, 2025 | | | | | | | | | | | | | | |
| | | | | | | Gross | | | | Gross | | | | | | |
| | | | | | | Unrealized | | | | Unrealized | | | | Estimated | | |
| | | Cost | | | | Gains | | | | (Losses) | | | | Fair Value | | |
| | | | | | | | | | | | | | | | | |
| Money market funds | | $ | 2,430,536 | | | $ | - | | | $ | - | | | $ | 2,430,536 | |
| Other equities | | | 1,421 | | | | 365 | | | | - | | | | 1,786 | |
| Total investments | | $ | 2,431,957 | | | $ | 365 | | | $ | - | | | $ | 2,432,322 | |

| | | December 31, 2024 | | | | | | | | | | | | | | |
| | | | | | | Gross | | | | Gross | | | | | | |
| | | | | | | Unrealized | | | | Unrealized | | | | Estimated | | |
| | | Cost | | | | Gains | | | | (Losses) | | | | Fair Value | | |
| Money market funds | | $ | 2,331,135 | | | $ | - | | | $ | - | | | $ | 2,331,135 | |
| Other equities | | | 1,421 | | | | - | | | | (85 | ) | | | 1,336 | |
| Total investments | | $ | 2,332,556 | | | $ | - | | | $ | (85 | ) | | $ | 2,332,471 | |

The following tables summarize the
valuation of the Company’s securities as of December 31, 2025 and 2024 using the fair value hierarchy:

| | | December 31, 2025 | | | | | | | | | | | | | | |
| | | Total | | | | Level 1 | | | | Level 2 | | | | Level 3 | | |
| Money market funds | | $ | 2,430,536 | | | $ | 2,430,536 | | | $ | - | | | $ | - | |
| Other equities | | | 1,786 | | | | 1,786 | | | | - | | | | - | |
| Total | | $ | 2,432,322 | | | $ | 2,432,322 | | | $ | - | | | $ | - | |

| | | December 31, 2024 | | | | | | | | | | | | | | |
| | | Total | | | | Level 1 | | | | Level 2 | | | | Level 3 | | |
| Money market funds | | $ | 2,331,135 | | | $ | 2,331,135 | | | $ | - | | | $ | - | |
| Other equities | | | 1,336 | | | | 1,336 | | | | - | | | | - | |
| Total | | $ | 2,332,471 | | | $ | 2,332,471 | | | $ | - | | | $ | - | |

During the twelve months ended December
31, 2025 and 2024, there were no transfers between levels.

| | F- 8 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

| 4. | Accumulated Other Comprehensive Income (Loss) |

As of December 31, 2025 and 2024 there was no accumulated
other comprehensive income (loss) balances for inclusion in member’s equity on the statements of financial condition.

| 5. | Commitments and Contingencies |

Operating Leases

The Company determines if an arrangement
is a lease at inception. Operating leases are included in operating lease right-of-use assets, accrued expenses, and long-term operating
lease liabilities in the statements of financial condition. Right-of-use assets represent the Company’s right to use an underlying
asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.
Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease
payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based
on the information available at the lease commencement date. The operating lease right-of-use assets also include any lease payments made
at or before the commencement date and are reduced by any lease incentives received. The Company’s lease terms may include options
to extend or not terminate the lease when it is reasonably certain that it will exercise any such options. For its lease, the Company
concluded that it is not reasonably certain that any renewal options would be exercised, and, therefore, the amounts are not recognized
as part of operating lease right-of-use assets nor operating lease liabilities.

Fixed lease expense payments are recognized
on a straight-line basis over the lease term. Variable lease payments vary because of changes in facts or circumstances occurring after
the commencement date, other than the passage of time. The Company’s operating lease agreement includes variable payments that are
passed through by the landlord, such as insurance, taxes, and common area maintenance. Variable payments are deemed immaterial and are expensed as
incurred.

The Company has one operating lease which
is for its office space in Walnut Creek, California. The Company extended its office space lease in July 2024 through March 2028. As part
of its extension, the Company received three months of free rent during fiscal 2025. The Company does not have any finance leases.

Future minimum rental payments required
under the operating lease as of December 31, 2025 are as follows:

| For the year ending December 31, 2025: | | | | |
| | | | | |
| 2026 | | $ | 182,336 | |
| 2027 | | | 187,515 | |
| 2028 | | | 63,986 | |
| Total minimum lease payments | | | 433,837 | |
| Less: present value discount | | | (28,221 | ) |
| Total operating lease liabilities | | $ | 405,616 | |

The remaining lease term was approximately
two years as of December 31, 2025 and a discount rate of 6.0% was used to determine the total operating lease liabilities.

| | F- 9 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

---

| 5. | Commitments and Contingencies,
continued |

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Contingencies

From time to time, USCF may be involved
in legal proceedings arising primarily from the ordinary course of its business. In addition, USCF, as the general partner of USO and
the Related Public Funds may, from time to time, be involved in litigation arising out of its operations in the ordinary course of business.
Except as described herein, neither USO nor USCF is currently party to any material legal proceedings.

Optimum Strategies Action

On April 6, 2022, USO and USCF were named as defendants
in an action filed by Optimum Strategies Fund I, LP, a purported investor in call option contracts on USO (the “Optimum Strategies
Action”). The action was in the U.S. District Court for the District of Connecticut at Civil Action No. 3:22-cv-00511.

The Optimum Strategies Action asserted claims under the
Securities Exchange Act of 1934, as amended (the “1934 Act”), Rule 10b-5 thereunder, and the Connecticut Uniform Securities
Act (“CUSA”). It purported to challenge statements in registration statements that became effective in February 2020, March
2020, and on April 20, 2020, as well as public statements between February 2020 and May 2020, in connection with certain extraordinary
market conditions and the attendant risks that caused the demand for oil to fall precipitously, including the COVID-19 global pandemic
and the Saudi Arabia-Russia oil price war. The complaint was seeking damages, interest, costs, attorney’s fees, and equitable relief.

On March 15, 2023, the court granted the USO defendants’
motion to dismiss the complaint. In its ruling, the court granted the USO defendants’ motion to dismiss, with prejudice, the plaintiff’s
claims under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and a claim for control person liability under Section 20(a)
of the Exchange Act. Having dismissed all claims over which the court had original jurisdiction, the court declined to exercise supplemental
jurisdiction over the plaintiff’s state law claim under CUSA and dismissed the claim without prejudice. No notice of appeal was
filed.

Settlement of SEC and CFTC Investigations

On November 8, 2021, USCF and USO announced a resolution
with each of the SEC and the CFTC relating to matters set forth in certain Wells Notices issued by the staffs of each of the SEC and CFTC
as more fully described below. On August 17, 2020, USCF, USO, and John Love received a “Wells Notice” from the staff of the
SEC (the “SEC Wells Notice”). The SEC Wells Notice stated that the SEC staff made a preliminary determination to recommend
that the SEC file an enforcement action against USCF, USO, and Mr. Love alleging violations of Sections 17(a)(1) and 17(a)(3) of the Securities
Act of 1933, as amended (the “1933 Act”), and Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder.

Subsequently, on August 19, 2020, USCF, USO, and Mr. Love
received a Wells Notice from the staff of the CFTC (the “CFTC Wells Notice”). The CFTC Wells Notice stated that the CFTC staff
made a preliminary determination to recommend that the CFTC file an enforcement action against USCF, USO, and Mr. Love alleging violations
of Sections 4o(1)(A) and (B) and 6(c)(1) of the Commodity Exchange Act of 1936, as amended (the “CEA”), 7 U.S.C. §§
6o(1)(A) and (B) and 9(1) (2018), and CFTC Regulations 4.26, 4.41, and 180.1(a), 17 C.F.R. §§ 4.26, 4.41, 180.1(a) (2019).

On November 8, 2021, acting pursuant to an offer of settlement
submitted by USCF and USO, the SEC issued an order instituting cease-and-desist proceedings, making findings, and imposing a cease-and-desist
order pursuant to Section 8A of the 1933 Act, directing USCF and USO to cease and desist from committing or causing any violations of
Section 17(a)(3) of the 1933 Act, 15 U.S.C. § 77q(a)(3) (the “SEC Order”). In the SEC Order, the SEC made findings that,
from April 24, 2020 to May 21, 2020, USCF and USO violated Section 17(a)(3) of 1933 Act, which provides that it is “unlawful for
any person in the offer or sale of any securities to engage in any transaction, practice, or course of business which operates or would
operate as a fraud or deceit upon the purchaser.” USCF and USO consented to entry of the SEC Order without admitting or denying
the findings contained therein, except as to jurisdiction.

| | F- 10 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

| 5. | Commitments and Contingencies,
continued |

Separately, on November 8, 2021, acting pursuant to an offer
of settlement submitted by USCF, the CFTC issued an order instituting cease-and-desist proceedings, making findings, and imposing a cease-and-desist
order pursuant to Section 6(c) and (d) of the CEA, directing USCF to cease and desist from committing or causing any violations of Section
4o(1)(B) of the CEA, 7 U.S.C. § 6o(1) (B), and CFTC Regulation 4.41(a)(2), 17 C.F.R. § 4.41(a)(2) (the “CFTC Order”).
In the CFTC Order, the CFTC made findings that, from on or about April 22, 2020 to June 12, 2020, USCF violated Section 4o(1)(B) of the
CEA and CFTC Regulation 4.41(a)(2), which make it unlawful for any commodity pool operator (“CPO”) to engage in “any
transaction, practice, or course of business which operates as a fraud or deceit upon any client or participant or prospective client
or participant” and prohibit a CPO from advertising in a manner which “operates as a fraud or deceit upon any client or participant
or prospective client or participant,” respectively. USCF consented to entry of the CFTC Order without admitting or denying the
findings contained therein, except as to jurisdiction.

Pursuant to the SEC Order and the CFTC Order, in addition
to the command to cease and desist from committing or causing any violations of Section 17(a)(3) of the 1933 Act, Section 4o(1)(B) of
the CEA, and CFTC Regulation 4.14(a)(2), civil monetary penalties totaling two million five hundred thousand dollars ($2,500,000) in the
aggregate were required to be paid to the SEC and CFTC, of which one million two hundred fifty thousand dollars ($1,250,000) was paid
by USCF to each of the SEC and the CFTC, respectively, pursuant to the offsets permitted under the orders.

In re: United States Oil Fund, LP Securities Litigation

On June 19, 2020, USCF, USO, John P. Love, and Stuart P.
Crumbaugh were named as defendants in a putative class action filed by purported shareholder Robert Lucas (the “Lucas Class Action”).
The Court thereafter consolidated the Lucas Class Action with two related putative class actions filed on July 31, 2020 and August 13,
2020, and appointed a lead plaintiff. The consolidated class action is pending in the U.S. District Court for the Southern District of
New York under the caption In re: United States Oil Fund, LP Securities Litigation, Civil Action No. 1:20-cv-04740.

On November 30, 2020, the lead plaintiff filed an amended
complaint (the “Amended Lucas Class Complaint”). The Amended Lucas Class Complaint asserts claims under the 1933 Act, the
Exchange Act, and Rule 10b-5. The Amended Lucas Class Complaint challenges statements in registration statements that became effective
on February 25, 2020 and March 23, 2020 as well as subsequent public statements through April 2020 concerning certain extraordinary market
conditions and the attendant risks that caused the demand for oil to fall precipitously, including the COVID-19 global pandemic and the
Saudi Arabia-Russia oil price war. The Amended Lucas Class Complaint purports to have been brought by an investor in USO on behalf of
a class of similarly-situated shareholders who purchased USO securities between February 25, 2020 and April 28, 2020 and pursuant to the
challenged registration statements. The Amended Lucas Class Complaint seeks to certify a class and to award the class compensatory damages
at an amount to be determined at trial as well as costs and attorney’s fees. The Amended Lucas Class Complaint named as defendants
USCF, USO, John P. Love, Stuart P. Crumbaugh, Nicholas D. Gerber, Andrew F Ngim, Robert L. Nguyen, Peter M. Robinson, Gordon L. Ellis,
and Malcolm R. Fobes III, as well as the marketing agent, ALPS Distributors, Inc., and the Authorized Participants: ABN Amro, BNP Paribas
Securities Corporation, Citadel Securities LLC, Citigroup Global Markets, Inc., Credit Suisse Securities USA LLC, Deutsche Bank Securities
Inc., Goldman Sachs & Company, J.P. Morgan Securities Inc., Merrill Lynch Professional Clearing Corporation, Morgan Stanley &
Company Inc., Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, and Virtu
Financial BD LLC.

The lead plaintiff has filed a notice of voluntary dismissal
of its claims against BNP Paribas Securities Corporation, Citadel Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities
USA LLC, Deutsche Bank Securities Inc., Morgan Stanley & Company, Inc., Nomura Securities International, Inc., RBC Capital Markets,
LLC, SG Americas Securities LLC, and UBS Securities LLC.

On September 29, 2025, the Court granted the defendants’
motion to dismiss the complaint without prejudice and granted plaintiff leave to file a motion to amend its complaint. On November 26,
2025, the plaintiff filed a motion for leave to file a proposed second consolidated amended complaint, which defendants have opposed.
The motion remains pending before the Court.

USCF, USO, and the individual defendants in In re: United
States Oil Fund, LP Securities Litigation intend to continue to vigorously contest such claims and have moved for their dismissal.

| | F- 11 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

| 5. | Commitments and Contingencies,
continued |

Wang Class Action

On July 10, 2020, purported shareholder Momo Wang filed
a putative class action complaint, individually and on behalf of others similarly situated, against defendants USO, USCF, John P. Love,
Stuart P. Crumbaugh, Nicholas D. Gerber, Andrew F Ngim, Robert L. Nguyen, Peter M. Robinson, Gordon L. Ellis, Malcolm R. Fobes, III, ABN
Amro, BNP Paribas Securities Corp., Citadel Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities USA LLC, Deutsche
Bank Securities Inc., Goldman Sachs & Company, JP Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley
& Company Inc., Nomura Securities International Inc., RBC Capital Markets LLC, SG Americas Securities LLC, UBS Securities LLC, and
Virtu Financial BD LLC, in the U.S. District Court for the Northern District of California as Civil Action No. 3:20-cv-4596 (the “Wang
Class Action”).

The Wang Class Action asserted federal securities claims
under the 1933 Act, challenging disclosures in a March 19, 2020 registration statement. It alleged that the defendants failed to disclose
to investors in USO certain extraordinary market conditions and the attendant risks that caused the demand for oil to fall precipitously,
including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war. The Wang Class Action was voluntarily dismissed on August
4, 2020.

Mehan Action

On August 10, 2020, purported shareholder Darshan Mehan
filed a derivative action on behalf of nominal defendant USO, against defendants USCF, John P. Love, Stuart P. Crumbaugh, Nicholas D.
Gerber, Andrew F Ngim, Robert L. Nguyen, Peter M. Robinson, Gordon L. Ellis, and Malcolm R. Fobes, III (the “Mehan Action”).
The action is pending in the Superior Court of the State of California for the County of Alameda as Case No. RG20070732.

The Mehan Action alleges that the defendants breached their
fiduciary duties to USO and failed to act in good faith in connection with a March 19, 2020 registration statement and offering and disclosures
regarding certain extraordinary market conditions that caused demand for oil to fall precipitously, including the COVID-19 global pandemic
and the Saudi Arabia-Russia oil price war. The complaint seeks, on behalf of USO, compensatory damages, restitution, equitable relief,
attorney’s fees, and costs. All proceedings in the Mehan Action are stayed pending disposition of the motion(s) to dismiss in In
re: United States Oil Fund, LP Securities Litigation.

USCF, USO, and the other defendants intend to vigorously
contest such claims.

In re United States Oil Fund, LP Derivative Litigation

On August 27, 2020, purported shareholders Michael Cantrell
and AML Pharm. Inc. DBA Golden International filed two separate derivative actions on behalf of nominal defendant USO, against defendants
USCF, John P. Love, Stuart P. Crumbaugh, Andrew F Ngim, Gordon L. Ellis, Malcolm R. Fobes, III, Nicholas D. Gerber, Robert L. Nguyen,
and Peter M. Robinson in the U.S. District Court for the Southern District of New York at Civil Action No. 1:20-cv-06974 (the “Cantrell
Action”) and Civil Action No. 1:20-cv-06981 (the “AML Action”), respectively.

The complaints in the Cantrell and AML Actions are nearly
identical. They each allege violations of Sections 10(b), 20(a) and 21D of the 1934 Act, Rule 10b-5 thereunder, and common law claims
of breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. These allegations
stem from USO’s disclosures and defendants’ alleged actions in light of the extraordinary market conditions in 2020 that caused
demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war. The complaints
seek, on behalf of USO, compensatory damages, restitution, equitable relief, attorney’s fees, and costs. The plaintiffs in the Cantrell
and AML Actions have marked their actions as related to the Lucas Class Action.

The Court consolidated the Cantrell and AML Actions under
the caption In re United States Oil Fund, LP Derivative Litigation, Civil Action No. 1:20-cv-06974 and appointed co-lead counsel.
All proceedings in In re United States Oil Fund, LP Derivative Litigation are stayed pending final disposition of the motion(s)
to dismiss in In re: United States Oil Fund, LP Securities Litigation.

USCF, USO, and the other defendants
intend to vigorously contest the claims in In re United States Oil Fund, LP Derivative Litigation

| | F- 12 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

| 5. | Commitments and Contingencies,
continued |

No accrual has been recorded with respect
to the above legal matters as of December 31, 2025 and December 31, 2024. We are currently unable to predict the timing or outcome
of, or reasonably estimate the possible losses or range of, possible losses resulting from these matters. It is reasonably possible that
this estimate will change in the near term. An adverse outcome regarding these matters could materially adversely affect the Company's
financial condition, results of operations and cash flows.

| 6. | Income Taxes |

The Company has filed an election with
the Internal Revenue Service to be treated as an association taxable as a corporation. The Company files a federal consolidated income
tax return with entities not included on these financial statements. In connection with being part of a consolidated federal income tax
return, the tax benefit of utilizing tax losses, if any, generated by the consolidated group is not reflected on USCF’s statements
of financial condition. For the purpose of these financial statements the Company has recorded federal income tax expense and deferred
tax assets at the legal entity level as if it was filing its own stand-alone taxes.

The Company presents its tax positions
on a net basis on its statements of financial condition. The Company has recorded a net tax receivable of $106,550 consisting of a $435,852
federal tax payable and a $542,402 state tax receivable, and a net tax payable of $630,771 consisting of $1,123,902 federal tax payable
and a $493,131 state tax receivable, as of December 31, 2025 and 2024, respectively, related to anticipated tax payments and net refunds
on previously filed tax returns.

Deferred tax assets and liabilities reflect
the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and
the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets as of December 31, 2025 and
2024 are as follows:

| | | 2025 | | | | 2024 | | |
| Deferred tax assets: | | | | | | | | |
| Fund start-up costs | | $ | 207,862 | | | $ | 250,718 | |
| Accruals, reserves and other | | | 102,389 | | | | 113,262 | |
| | | | | | | | | |
| Gross deferred tax assets | | | 310,251 | | | | 363,980 | |
| Less valuation allowance | | | - | | | | - | |
| | | | | | | | | |
| Total deferred tax assets | | $ | 310,251 | | | $ | 363,980 | |

The
majority of the deferred tax assets relate to startup costs associated with the organization and registration of the Funds for which the
Company is a general partner and having paid such costs.

| | F- 13 | |

United
States Commodity Funds LLC

Notes
to the Financial statements

December
31, 2025 and 2024

| 6. | Income Taxes (continued) |

Realization of the deferred tax assets
is dependent upon future taxable income, if any, the amount and timing of which is uncertain. Based upon available objective evidence,
management believes it is more likely than not that the net deferred tax assets will be fully realizable.

The Company is subject to income taxes
in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation
of the related tax laws and regulations and require significant judgment to apply. The Company’s tax years 2020 through 2025 will
remain open for examination by the federal and state authorities for three and four years, respectively. As of December 31, 2025, there
were no active taxing authority examinations for the Company on the related party that files the consolidated tax return.

The Company had unrecognized tax benefits
(“UTBs”) of approximately $15,000 for both years ended December 31, 2025 and 2024. There is no interest or penalties
to be recognized as of December 31, 2025 and 2024. The Company does not expect its UTBs to change significantly over the next 12
months.

| 7. | Related Party Transactions |

Management fees receivable, totaling
$1,185,761 and $1,227,784 as of December 31, 2025 and 2024,
respectively, were owed from the Funds, which are considered related parties. Other receivables, totaling $543,006 and $203,660 as of December 31, 2025 and 2024, respectively, were owed from the Company's parent
and other related party entities as described in Note 2.

The Company files a federal consolidated
income tax return with entities not included on these financials. In connection with filing a consolidated federal income tax return,
the tax benefit of utilizing tax losses generated by the consolidated group is not reflected on USCF’s statements of financial condition.
The Company’s taxes are computed as if it files on a stand-alone basis (see Note 6).

| 8. | Subsequent Events |

The Company evaluated subsequent events
for recognition and disclosure through March 20, 2026, the date the statements of financial condition were issued or filed. Nothing has
occurred outside normal operations since that required recognition or disclosure in these statements of financial condition other than
the items noted below.

On February 9, 2026, the Company approved
and paid a $450,000 dividend to USCF Investments.

On March 10, 2026, the Company approved
and paid a $400,000 dividend to USCF Investments.

| | F- 14 | |