Company: GLDW
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001437749-25-015076
Chunk: 6

Company: World Gold Trust
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 6
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     2.10.  Income Taxes  
   GLDM is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, it is not subject to U.S. federal income tax. Instead, its income and expenses “flow through” to the shareholders, and the Administrator will report GLDM’s proceeds, income, deductions, gains and losses to the Internal Revenue Service on that basis.   The Sponsor has evaluated whether there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2025. As of March 31, 2025, the 2024, 2023 and 2022 tax years remain open for examination. There were no examinations in progress at period end.  

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    3.  Related Parties – Sponsor 

   Effective February 23, 2022, the Sponsor reduced its annual fee of 0.18% of the NAV of GLDM to 0.10% of the NAV of GLDM and implemented a one-for-two reverse stock split of the Shares which now represent 1/50th of an ounce of gold. The Sponsor’s annual fee equal to 0.10% of the NAV of GLDM is calculated daily. The Sponsor is responsible for the payment of all GLDM’s ordinary fees and expenses, including but not limited to the following: fees charged by GLDM’s Administrator, Custodians, Marketing Agent and Trustee; exchange listing fees; typical maintenance and transaction fees of The Depository Trust Company; SEC registration fees; printing and mailing costs; audit fees and expenses; and legal fees not in excess of $100,000 per annum and expenses and applicable license fees. The Sponsor is not, however, required to pay any extraordinary expenses incurred in the ordinary course of GLDM’s business as outlined in the Sponsor’s agreement with the Trust.

    4.  GLDM Expenses  

   GLDM’s only ordinary recurring operating expense is the Sponsor’s annual fee of 0.10% of the NAV of GLDM. The Sponsor’s fee is payable monthly in arrears.
    
   Expenses payable will reduce the NAV of GLDM.

    5.  Concentration of Risk  

   GLDM’s primary business activities are the investment in gold and the issuance and sale of Shares.
    
   Various factors could affect the price of gold including: (i) global