FormulaFolios Hedged Growth ETF (FFHG)

FormulaFolios Smart Growth ETF (FFSG)

FormulaFolios Tactical Growth ETF (FFTG)

FormulaFolios Tactical Income ETF (FFTI)

Annual Report

May 31, 2023

1-888-562-8880

www.formulafoliofunds.com

This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing herein contained is to be considered an offer of sale or solicitation of an offer to buy shares of the FormulaFolios ETFs. Such offering is made only by prospectus, which includes details as to offering price and other material information.

Distributed by Northern Lights Distributors, LLC.

Member FINRA

FORMULAFOLIOS ETF ANNUAL REPORT

SHAREHOLDER LETTER (UNAUDITED)

Brookstone Capital Management (BCM) is a Registered Investment Advisor that offers a distinct approach compared to traditional asset management. BCM uses relative strength algorithms coupled with our qualitative interpretation of current market conditions to aid in the investment decision making process. The process allows us to focus on longer-term market trends and to achieve lower portfolio turnover. With the ever-changing investment landscape, it is more important than ever to prepare for and adapt to new economic regimes. This is why BCM focuses time and talents on developing smarter investment formulas. By removing investing prejudices with an algorithmic based approach, BCM believes investors can substantially increase the statistical probability of successful investment outcomes over time.

Dear FormulaFolios ETF Shareholder,

The fiscal year ending May 31, 2023, was an up-and-down year for global markets, as they faced unprecedented inflationary pressures, aggressive monetary tightening, geopolitical tensions, banking crisis, and pandemic-related uncertainties. The coronavirus pandemic eased but remained a global concern, as did the supply-chain issues that accompanied its arrival. Inflation reached a 40-year high in the US, and the Federal Reserve pursued a series of interest rate increases to combat rising prices. actions similar to those taken by other nations’ central banks. Russia’s invasion of Ukraine brought uncertainty about political stability and energy prices, among other worries. A midterm US election shifted more power to Republicans but left Democrats in a stronger position than some had expected.

Inflation and the Federal Reserve’s response to it was the dominant force driving the markets in the last year. Inflation reached 40-year highs of more than 9% due to various factors such as fiscal and monetary stimulus, supply chain bottlenecks, consumer demand shifts, labor shortages, and wage increases. The Federal Reserve responded by hiking its benchmark rate by 425 basis points over the year, compared to expectations of 75 bps at the start of the year. This was one of the strongest hiking cycles in

decades, and it had a negative impact on both stocks and bonds.

Despite all that, both equity and the fixed income markets rebounded in the first 5 months of 2023. Excitement about Artificial Intelligence and receding fears about banking crisis lifted the S&P 500 by 9.65% and the NASDAQ Composite by an incredible 24.06%. The Bloomberg US Aggregate Index returned 2.46% during the same period.

In the end, from June 1, 2022 to May 31, 2023, the S&P 500 was up by 2.92% while the Bloomberg US Aggregate Bond index was down by moderate -2.14%.

It is important to remember the future is largely independent of the past - nobody knows exactly what the future holds. This is why it is so imperative to stay committed to a smart investment strategy over the course of many periods. Please remember all securities markets fluctuate, as do ETF prices. Though it is impossible to eliminate all market risk, we believe active investment management can help mitigate the downside risk of investing.

Sincerely,

Mark DiOrio

Chief Investment Officer

Brookstone Capital Management

This letter reflects Brookstone Capital management analysis and opinions as of May 31, 2023. The information is not a complete analysis of every aspect of any market, country, industry, security, or Fund.

Global Economic Period in Review

By June of 2022, stock market investors had experienced one of the worst starts to a year ever with the S&P 500 declining -12.76% and the tech-heavy Nasdaq solidly in bear market territory with -22.52% year-to-date return. Markets continued their decline the following month on the heels of a hotter than expected CPI print of 9.1%, and by the middle of June the S&P 500 also entered bear market territory. By June 16. 2022, the year-to-date S&P 500 return was -22.51% and the Nasdaq declined -31.69%. By the end of June, the Bloomberg US Aggregate Bond Index was down -10.35%.

By August, however, the US market had rebounded with both the S&P 500 and the Nasdaq posting solid gains of 7.77% and 11.38% respectively. As US GDP contracted for the second quarter in a row, markets started to price in a slower pace of rate hikes, and the aggregate bond index posted its first gain for the year of 2.32%.

Even though the US Congress passed the Inflation Protection Act in August, when the consumer price index increased by 8.5%, it became apparent that further substantial interest rate rises may be needed to tame inflation. The market’s hopes of a future rate cut were dashed, which led to sharp falls in share prices and volatile trading throughout the month.

The decline accelerated in September when the S&P 500 posted a single month decline of - 9.21%. The Nasdaq fell -10.44%. Despite the

gains early in the third quarter, the slide in bond prices resumed posting a -5.33% decline for Q3 2022.

US equities recovered some ground in October, after several weeks of declines. The rise came in spite of the Fed confirming that tighter monetary policy is still needed to contain elevated inflation. Investors may have been focused on the earnings season which showed that around three quarters of companies delivered better-than-expected results.

US equities continued to rise in November as investors responded positively to data showing inflation had pulled back, and on the expectation that it will cool down from there. Adding to the optimism, employment data continued to look robust overall with slowing momentum. November also saw a robust recovery in bond markets in general.

Government bond yields were broadly lower, and credit spreads tightened across global markets.

By the end of December, the total 1-year return for the S&P 500 was -18.13%. The Nasdaq finished the year down -32.51%, and the Bloomberg US Aggregate Bond Index declined - 13.01%.

Stock markets started 2023 on a strong footing with gains across global equities. China’s re-opening after dropping the zero-COVID policy in late December helped propel the advance. Signs that inflation is easing from its autumn highs in several major regions also supported sentiment,

amid hopes central banks may be close to the peak of their rate hiking cycle.

Global equities took a pause in February after the strong advance seen in January. Resilient economic data suggested that any hoped-for pause in interest rate rises may still be some way off. The Federal Reserve, European Central Bank and Bank of England all raised rates in the month.

In March, the markets experienced quite a bit of turbulence as cracks began to appear in the global financial system. The collapse of SVB, followed shortly by further financial sector disruption in Europe, caused stocks to dip sharply before recovering to finish the month and quarter higher. The Fed expressed confidence in the resilience of the US banking

system and raised the policy rate by 25 basis points in both February and March. This took borrowing costs to the highest point since 2007.

US equities made limited gains in April as the demise of First Republic Bank presented the largest casualty in the banking sector since the Great Financial Crisis. An acquisition deal between the US government and JPMorgan helped investors take the news in stride.

By May 31, 2023, the S&P 500 Index was up more than 9% for the year, while the Nasdaq composite was up more than 24%— unexpectedly strong performance, albeit driven by a handful of mega-cap stocks. Inflation appeared to have eased, U.S. economic growth slowed, and the Federal Reserve seemed to be nearing the end of its rate-hike cycle.

ETF Performance Summary

For the fiscal year ending May 31, 2023, the FormulaFolios ETFs experienced mixed performance relative to their primary benchmarks on a total return basis.

FormulaFolios Tactical Growth ETF (FFTG) had a cumulative total return of -6.95% for the fiscal period ending May 31, 2023. In comparison, the ETF’s primary benchmark, the Barclay Global Macro Index, posted a total return of -1.57% over the same period. The Barclay Global Macro Index is a hedge fund index in which managers have the ability to carry long and short positions in any of the world’s major capital or derivative markets. The portfolios of these funds can include stocks, bonds, currencies, and commodities in the form of cash or derivatives instruments. Most funds invest globally in both developed and emerging markets.

The main contributors to the underperformance relative to the benchmark were the fund’s

overweight exposure to broad US and international equities during the period.

FormulaFolios Smart Growth ETF (FFSG) had a cumulative total return of -2.07% for the fiscal period ending May 31, 2023. In comparison, the ETF’s primary benchmark, the Dow Jones Aggressive Portfolio Index, posted a -1.53% cumulative total return over the same period. The Dow Jones Aggressive Portfolio Index acts as a broadly diversified buy-and-hold benchmark. This index aims to achieve 100% of the risk of an all-stock index based on the trailing 36-month semi-variance. The all-stock portfolio includes a blend of US and non-US stocks, with varying market capitalizations.

The main contributors to the outperformance relative to the benchmark were the fund’s overweight exposure to dividend stocks and short-term Treasuries during the period.

FormulaFolios Hedged Growth ETF (FFHG) had a cumulative total return of -3.53% for the fiscal period ending May 31, 2023. In comparison, the ETF’s primary benchmark, the Barclay Equity Long/Short Index, posted a 2.02% cumulative total return over the same period. The Barclay Equity Long/Short Index is a hedge fund index in which managers have the ability to shift from value to growth, from small to medium to large capitalization stocks, and from a net long position to a net short position. Overweight exposure to the US small- and mid-cap companies was the main reason for the underperformance of the fund relative to the benchmark.

FormulaFolios Tactical Income ETF (FFTI) had a cumulative total return of -2.88% for the fiscal

period ending May 31, 2023. In comparison, the ETF’s primary benchmark, the Bloomberg US Aggregate Bond Index, which is a broad measure of total US bond market performance, posted a - 1.80% cumulative total return over the same period.

The fund’s performance was largely in line with its benchmark during the period.

Performance data represents past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from the figures shown.

How Market Conditions Affected ETFs

The allocation exposure levels of the ETFs were the largest contributors to their performance.

The broad-based volatility in both equity and fixed markets provided limited opportunities for outperformance.

With few exceptions, the ETFs maintained continuous exposure during the period.

Investment Strategies

At FormulaFolio Investments, we are committed to our distinct methods of asset management with the goal of achieving above average risk adjusted returns over a long-time horizon. We believe by using emotion-free, statistically significant Quantitative algorithms to aid in the investment decision making process and help avoid typical investing biases, we can achieve this goal. When selecting investments for the ETFs, our proprietary models use various screen and rank processes, composed of numerous technical, economic, sentiment, and market breadth indicators to analyze market conditions in order to determine the strength of broad growth and fixed-income markets. By utilizing

numerous market indicators, the models have the ability to react to major market movements while avoiding the numerous “false positive” signals experienced when using a single stand- alone indicator. This helps reduce overall portfolio turnover, while still allowing for adjustments when appropriate. The ETFs will generally be 100% invested but hold the ability to hedge risk if market conditions warrant. Generally, this includes increasing exposure to US Treasury bond ETFs as well as cash-like securities. This gives the ETFs the ability to capture upward market movements while maintaining the ability to minimize drawdowns during unfavorable investment environments.

A Look Ahead for Next Period

We foresee growth moderation ahead and core inflation is likely to cool. However, the inflation slide is likely to prove incomplete as we forecast that global core inflation will remain well above 3% through 2024, absent a recession. Persistent inflation should keep pressure on central banks to maintain restrictive stances—and likely tighten further.

It remains to be seen if the lagged effects of the Fed’s tightening cycle will generate more weakness in activity, eventually leading to a recession. We continue to think by 2024 the Fed will have seen enough of a decline in inflation and a rise in unemployment to begin gradually removing the restraint they have imparted to the economy.

Thank you for your continued investment in the FormulaFolios ETFs. As always, we are committed to working to achieve the most desirable risk adjusted returns over a full market cycle to continue bringing you value as a shareholder.

The views and opinions expressed within this letter are those of ForumulaFolio Investments. These views and opinions are subject to change at any time based on changes in the economy and financial markets. These views and opinions do not constitute investment advice or recommendations and investors should not act on the information discussed within this letter. The information provided is not a complete analysis of every market, country, industry, security, or the Fund. Statements of fact are from sources considered reliable, but FormulaFolio Investments makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

The referenced indices are shown for general market comparisons and are not meant to represent the Fund. Investors cannot directly invest in an index; unmanaged index returns do not reflect any fees, expenses, or sales charges.

S&P 500 Index - The S&P 500 is a market capitalization weighted equity index and seeks to act as a benchmark for large-cap US stocks. This index measures the performance of 500 large publicly traded US stocks.

MSCI EAFE Index - The MSCI EAFE Index is designed to represent the performance of large and mid-cap securities across 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada. The Index is available for a number of regions, market segments/sizes and covers approximately 85% of the free float-adjusted market capitalization in each of the 21 countries.

MSCI Emerging Markets Index - The MSCI Emerging Markets Index captures large and mid- cap representation across 24 Emerging Markets countries (such as Brazil, China, and India). With 846 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

Russell 2000 Index – The Russell 2000 is a market capitalization weighted equity index and seeks to act as a benchmark for small-cap US stocks. This index measures the performance of the 2000 smallest publicly traded US stocks within the larger Russell 3000 Index (the Russell 3000 seeks to benchmark the entire US stock market).

Dow Jones Aggressive Portfolio Index – The Dow Jones Aggressive Portfolio Index acts as a broadly diversified buy-and-hold benchmark. This index aims to achieve 100% of the risk of an all-stock index based on the trailing 36-month semi-

variance. The all-stock portfolio includes a blend of US and non-US stocks, with varying market capitalizations.

Barclay Global Macro Index - Global Macro managers carry long and short positions in any of the world’s major capital or derivative markets. These positions reflect their views on overall market direction as influenced by major economic trends and/or events. The portfolios of these funds can include stocks, bonds, currencies, and commodities in the form of cash or derivatives instruments. Most funds invest globally in both developed and emerging markets.

Barclay Equity Long/Short Index – This directional strategy involves equity-oriented investing on both the long and short sides of the market. The objective is not to be market neutral. Managers have the ability to shift from value to growth, from small to medium to large capitalization stocks, and from a net long position to a net short position. Managers may use futures and options to hedge. The focus may be regional or sector specific.

Bloomberg US Aggregate Bond Index - The Bloomberg Barclays Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar denominated, fixed-rate taxable bond market. The index includes Treasuries, government related and corporate securities, mortgage-backed

securities, asset-backed securities, and commercial mortgage-backed securities; it represents the performance of the total US investment-grade bond market.

Bloomberg US Treasury 7-10 Year Index - The Bloomberg Barclays US Treasury 7-10 Year Bond Index is part of a series of indices intended to assess the US Treasury market. The Index is market value weighted and is designed to include US dollar denominated, fixed rate securities with minimum term to maturity greater than or equal to seven years and less than ten years.

Markit iBoxx Liquid Investment-Grade Index - The Markit iBoxx Liquid Investment-Grade Index is designed to provide a balanced representation of the USD investment grade corporate market and to meet the investors demand for a USD denominated highly liquid and representative investment grade corporate index. The Index has been designed to be a subset of the broader USD corporate bond market.

Markit iBoxx Liquid High-Yield Index – The iBoxx Liquid High-Yield Index is designed to reflect the performance of USD denominated high yield corporate debt, offering broad coverage of the USD high yield liquid bond universe. The index is an integral part of the global iBoxx index family, which provides the marketplace with accurate and objective indices by which to assess the performance of bond markets and investments.

FormulaFolios Hedged Growth ETF
PORTFOLIO REVIEW (Unaudited)
May 31, 2023

Average Annual Total Return through May 31, 2023*, as compared to its benchmark:

	One Year	Three Year	Five Year Year	Since Inception***
FormulaFolios Hedged Growth ETF - NAV	(3.53)%	12.77%	3.66%	5.14%
FormulaFolios Hedged Growth ETF - Market Price	(3.54)%	12.77%	3.63%	5.12%
Barclay Equity Long/Short Index**	2.02%	8.13%	4.47%	5.88%

(LINE GRAPH)

The Fund’s past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Returns are calculated using the traded net asset value or “NAV” on May 31, 2023. Performance data current to the most recent month end may be obtained by visiting www.FormulaFolioFunds.com or by calling 1-888-562-8880.

The Fund’s per share NAV is the value of one share of the Fund as calculated in accordance with the standard formula for valuing investment company shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at Market Price and NAV, respectively. The Fund’s total annual operating expenses after fee waiver and/or reimbursement are 1.13% per the most recent prospectus.

The Fund’s adviser has agreed to reduce its fees and/or absorb expenses of the Fund, until at least September 30, 2023, to ensure that total fund expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.95% of the Fund’s net assets.

Barclay Equity Long/Short Index’s directional strategy involves equity-oriented investing on both the long and short sides of the market. The objective is not to be market neutral. Managers have the ability to shift from value to growth, from small to medium to large capitalization stocks, and from a net long position to a net short position. Managers may use futures and options to hedge. The focus may be regional or sector specific. Investors cannot invest directly in an index.

***

As of the close of business on the day of commencement of trading on June 6, 2017.

The Fund’s top asset classes are as follows:

Asset Class	% of Net Assets
Exchange Traded Funds-Equity Funds		53.4	%
Exchange Traded Funds-Fixed Income Funds		44.4	%
Other Assets in Excess of Liabilities		2.2	%
Total		100.0	%

Please refer to the Schedule of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

FormulaFolios Smart Growth ETF
PORTFOLIO REVIEW (Unaudited)
May 31, 2023

Average Annual Total Return through May 31, 2023*, as compared to its benchmark:

	One	Three	Five	Since
	Year	Year	Year	Inception***
FormulaFolios Smart Growth ETF - NAV	(2.07)%	10.87%	5.88%	6.21%
FormulaFolios Smart Growth ETF - Market Price	(2.16)%	10.81%	5.86%	6.18%
Dow Jones Aggressive Portfolio Index**	(1.53)%	10.10%	6.15%	8.02%

(LINE GRAPH)

The Fund’s adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until at least September 30, 2023, to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.60% of the Fund’s net assets.

Dow Jones Aggressive Portfolio Index is a benchmark designed for asset allocation strategists who are willing to take 100% of the risk of the global securities market. It is a total returns index formed by equally weighing nine equity style indexes with monthly rebalancing. The nine equity style Indexes Include: Dow Jones U.S. Large Cap Value, Dow Jones U.S. Large Cap Growth, Dow Jones U.S. Mid Cap Value, Dow Jones U.S. Small Cap Value, Dow Jones U.S. Mid Cap Growth, Dow Jones U.S. Small Cap Growth, Dow Jones Emerging Markets LN, Dow Jones Europe/Canada, and Dow Jones Asia/Pacific. Investors cannot invest directly in an index.

***

As of the close of business on the day of commencement of trading on November 1, 2017.

The Fund’s top asset classes are as follows:

Asset Class	% of Net Assets
Exchange Traded Funds-Equity Funds		74.6	%
Exchange Traded Funds-Fixed Income Fund		24.3	%
Other Assets in Excess of Liabilities		1.1	%
Total		100.0	%

Please refer to the Schedule of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

FormulaFolios Tactical Growth ETF
PORTFOLIO REVIEW (Unaudited)
May 31, 2023

Average Annual Total Return through May 31, 2023*, as compared to its benchmark:

	One	Three	Five	Since
	Year	Year	Year	Inception***
FormulaFolios Tactical Growth ETF - NAV	(6.95)%	0.06%	0.93%	1.10%
FormulaFolios Tactical Growth ETF - Market Price	(7.00)%	(0.02)%	0.88%	1.05%
Barclay Hedge Global Macro Index**	(1.57)%	7.98%	5.48%	5.89%

(LINE GRAPH)

Barclay Hedge Global Macro Index managers carry long and short positions in any of the world’s major capital or derivative markets. These positions reflect their views on overall market direction as influenced by major economic trends and or events. The portfolios of these funds can include stocks, bonds, currencies, and commodities in the form of cash or derivatives instruments. Most funds invest globally in both developed and emerging markets. Investors cannot invest directly in an index.

***

As of the close of business on the day of commencement of trading on November 1, 2017.

The Fund’s top asset classes are as follows:

Asset Class	% of Net Assets
Exchange Traded Funds-Fixed Income Funds		98.7	%
Money Market Fund		3.6	%
Liabilities in Excess of Other Assets		(2.3	)%
Total		100.0	%

Please refer to the Schedule of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

FormulaFolios Tactical Income ETF
PORTFOLIO REVIEW (Unaudited)
May 31, 2023

Average Annual Total Return through May 31, 2023*, as compared to its benchmark:

	One	Three	Five	Since
	Year	Year	Year	Inception***
FormulaFolios Tactical Income ETF - NAV	(2.88)%	(2.41)%	(0.44)%	(0.53)%
FormulaFolios Tactical Income ETF - Market Price	(2.88)%	(2.37)%	(0.48)%	(0.54)%
Bloomberg U.S. Aggregate Bond Index**	(2.14)%	(3.65)%	0.81%	0.60%

(LINE GRAPH)

The Bloomberg U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency). Investors cannot invest directly in an index.

***

As of the close of business on the day of commencement of trading on June 6, 2017.

The Fund’s top asset classes are as follows:

Asset Class	% of Net Assets
Exchange Traded Funds-Fixed Income Funds		98.0	%
Other Assets in Excess of Liabilities		2.0	%
Total		100.0	%

Please refer to the Schedule of Investments in this Annual Report for a detailed listing of the Fund’s holdings.

FORMULAFOLIOS HEDGED GROWTH ETF

SCHEDULE OF INVESTMENTS

May 31, 2023

Shares			Fair Value
		EXCHANGE-TRADED FUNDS — 97.8%
		EQUITY - 53.4%
	34,118	iShares Core S&P 500 ETF	$	14,310,113
	37,425	iShares Core S&P Mid-Cap ETF		8,990,234
	93,431	iShares Core S&P Small-Cap ETF		8,635,827
	72,531	Vanguard High Dividend Yield ETF		7,351,742
				39,287,916
		FIXED INCOME - 44.4%
	227,137	iShares 1-3 Year Treasury Bond ETF (see Note 8)		18,552,550
	153,018	SPDR Bloomberg 1-3 Month T-Bill ETF		14,042,462
				32,595,012

		TOTAL EXCHANGE-TRADED FUNDS (Cost $72,987,471)		71,882,928

		TOTAL INVESTMENTS - 97.8% (Cost $72,987,471)	$	71,882,928
		OTHER ASSETS IN EXCESS OF LIABILITIES - 2.2%		1,609,274
		NET ASSETS - 100.0%	$	73,492,202

ETF

- Exchange-Traded Fund

SPDR

- Standard & Poor’s Depositary Receipt

See accompanying notes to financial statements.

FORMULAFOLIOS SMART GROWTH ETF

SCHEDULE OF INVESTMENTS

May 31, 2023

Shares			Fair Value
		EXCHANGE-TRADED FUNDS — 98.9%
		EQUITY - 74.6%
	15,848	iShares Core S&P 500 ETF (see Note 8)	$	6,647,127
	10,704	iShares Core S&P Mid-Cap ETF		2,571,315
	27,197	iShares Core S&P Small-Cap ETF		2,513,819
	16,786	SPDR S&P Dividend ETF		1,968,998
	19,479	Vanguard High Dividend Yield ETF		1,974,391
				15,675,650
		FIXED INCOME - 24.3%
	55,494	SPDR Bloomberg 1-3 Month T-Bill ETF		5,092,684

		TOTAL EXCHANGE-TRADED FUNDS (Cost $18,962,156)		20,768,334

		TOTAL INVESTMENTS - 98.9% (Cost $18,962,156)	$	20,768,334
		OTHER ASSETS IN EXCESS OF LIABILITIES - 1.1%		224,375
		NET ASSETS - 100.0%	$	20,992,709

ETF

- Exchange-Traded Fund

SPDR

- Standard & Poor’s Depositary Receipt

See accompanying notes to financial statements.

FORMULAFOLIOS TACTICAL GROWTH ETF

SCHEDULE OF INVESTMENTS

May 31, 2023

Shares			Fair Value
		EXCHANGE-TRADED FUNDS — 98.7%
		FIXED INCOME - 98.7%
	68,728	iShares 0-3 Month Treasury Bond ETF (see Note 8)	$	6,913,349
	51,837	iShares Core U.S. Aggregate Bond ETF		5,109,573
	40,254	SPDR Bloomberg 1-3 Month T-Bill ETF		3,694,110
	140,232	Vanguard Ultra Short Bond ETF^(a)(see Note 8)		6,900,817
				22,617,849

		TOTAL EXCHANGE-TRADED FUNDS (Cost $22,679,802)		22,617,849

Shares			Fair Value
		SHORT-TERM INVESTMENTS — 3.6%
		MONEY MARKET FUNDS - 3.6%
	813,240	Morgan Stanley Institutional Liquidity Funds Government Portfolio – Institutional Class, 5.06% (Cost $813,240)^(b)(c)		813,240

		TOTAL INVESTMENTS - 102.3% (Cost $23,493,042)	$	23,431,089
		LIABILITIES IN EXCESS OF OTHER ASSETS - (2.3)%		(535,531	)
		NET ASSETS - 100.0%	$	22,895,558

ETF

- Exchange-Traded Fund

SPDR

- Standard & Poor’s Depositary Receipt

^(a)

All or a portion of the security is on loan. The total fair value of securities on loan as of May 31, 2023 was $797,202.

^(b)

Security was purchased with cash received as collateral for securities on loan at May 31, 2023. Total collateral had a value of $813,240 at May 31, 2023.

^(c)

Rate disclosed is the seven day effective yield as of May 31, 2023.

See accompanying notes to financial statements.

FORMULAFOLIOS TACTICAL INCOME ETF

SCHEDULE OF INVESTMENTS

May 31, 2023

Shares			Fair Value
		EXCHANGE-TRADED FUNDS — 98.0%
		FIXED INCOME - 98.0%
	198,542	iShares 1-3 Year Treasury Bond ETF	$	16,216,911
	149,259	iShares 7-10 Year Treasury Bond ETF		14,636,338
	169,100	iShares Core U.S. Aggregate Bond ETF		16,668,187
	141,058	SPDR Bloomberg 1-3 Month T-Bill ETF		12,944,893
	265,846	Vanguard Total Bond Market ETF		19,417,391
				79,883,720

		TOTAL EXCHANGE-TRADED FUNDS (Cost $87,386,538)		79,883,720

		TOTAL INVESTMENTS - 98.0% (Cost $87,386,538)	$	79,883,720
		OTHER ASSETS IN EXCESS OF LIABILITIES - 2.0%		1,617,076
		NET ASSETS - 100.0%	$	81,500,796

ETF

- Exchange-Traded Fund

SPDR

- Standard & Poor’s Depositary Receipt

See accompanying notes to financial statements.

FormulaFolios ETFs

STATEMENTS OF ASSETS AND LIABILITIES

May 31, 2023

	FormulaFolios			FormulaFolios		FormulaFolios			FormulaFolios
	Hedged Growth			Smart Growth		Tactical Growth			Tactical Income
	ETF			ETF		ETF			ETF
ASSETS
Investment securities:
At cost	$	72,987,471		$	18,962,156	$	23,493,042		$	87,386,538
At value *	$	71,882,928		$	20,768,334	$	23,431,089		$	79,883,720
Cash and cash equivalents		1,691,896			259,283		385,478			1,731,243
Receivable due from Adviser		—			8,313		35,832			—
Prepaid expenses and other assets		—			—		—			5,142
TOTAL ASSETS		73,574,824			21,035,930		23,852,399			81,620,105

LIABILITIES
Security lending collateral (Note 6)		—			—		813,240			—
Investment advisory fees payable		45,659			—		—			57,659
Payable to related parties		12,490			16,543		21,329			17,663
Tax expense payable		—			—		96,584			—
Trustee fees payable		—			—		—			2,157
Accrued expenses and other liabilities		24,473			26,678		25,688			41,830
TOTAL LIABILITIES		82,622			43,221		956,841			119,309
NET ASSETS	$	73,492,202		$	20,992,709	$	22,895,558		$	81,500,796

Composition of Net Assets:
Paid in capital ($0 par value, unlimited shares authorized)	$	75,518,005		$	19,187,882	$	27,765,349		$	115,557,012
Accumulated earnings (losses)		(2,025,803	)		1,804,827		(4,869,791	)		(34,056,216	)
NET ASSETS	$	73,492,202		$	20,992,709	$	22,895,558		$	81,500,796

Net Asset Value Per Share:
Shares:
Net Assets	$	73,492,202		$	20,992,709	$	22,895,558		$	81,500,796
Shares of beneficial interest outstanding		2,300,000			675,000		925,000			3,950,000
Net asset value (Net Assets ÷ Shares Outstanding), offering and redemption price per share	$	31.95		$	31.10	$	24.75		$	20.63
Market Price	$	31.91		$	31.06	$	24.69		$	20.62

Includes fair value of securities Loaned $0; $0; $797,202; $0.

See accompanying notes to financial statements.

FormulaFolios ETFs

STATEMENTS OF OPERATIONS

For the Year Ended May 31, 2023

	FormulaFolios			FormulaFolios			FormulaFolios			FormulaFolios
	Hedged Growth			Smart Growth			Tactical Growth			Tactical Income
	ETF			ETF			ETF			ETF
INVESTMENT INCOME
Dividends	$	1,196,820		$	572,864		$	696,706		$	2,509,731
Securities lending		2,655			790			1,598			6,127
TOTAL INVESTMENT INCOME		1,199,475			573,654			698,304			2,515,858


EXPENSES
Investment advisory fees		421,168			90,166			164,228			586,281
Administrative services fees		58,529			64,927			69,588			54,100
Professional fees		16,502			16,502			16,502			16,504
Compliance officer fees		13,069			12,418			12,638			24,297
Trustees fees and expenses		11,252			12,129			11,145			19,361
Custodian fees		10,850			12,376			14,255			18,493
Legal fees		9,269			10,689			11,145			10,981
Transfer agent fees		8,853			11,855			11,584			15,622
Insurance expense		3,693			3,698			3,725			6,394
Printing expenses		3,589			1,948			1,042			5,953
Tax expense *		—			—			96,584			—
Other expenses		6,706			7,785			5,346			7,779
TOTAL EXPENSES		563,480			244,493			417,782			765,765

Less: Voluntary Fees waived and/or expenses reimbursed by the Adviser		—			—			(96,584	)		—
Less: Contractual Fees waived and/or expenses reimbursed by the Adviser		(62,290	)		(90,110	)		(102,493	)		—
TOTAL FEES WAIVED		(62,290	)		(90,110	)		(199,077	)		—

NET EXPENSES		501,190			154,383			218,705			765,765
NET INVESTMENT INCOME		698,285			419,271			479,599			1,750,093

REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized loss from investments		(561,587	)		(90,575	)		(2,033,351	)		(4,408,141	)
Net realized gain (loss) from in-kind redemptions		1,517,632			888,975			(96,154	)		(2,242,055	)
Net change in unrealized appreciation (depreciation) on investments		(3,872,987	)		(2,160,708	)		(820,911	)		881,348
NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS		(2,916,942	)		(1,362,308	)		(2,950,416	)		(5,768,848	)

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(2,218,657	)	$	(943,037	)	$	(2,470,817	)	$	(4,018,755	)

For the year ended May 31, 2023, the federal income tax rate is 21% which resulted in a recognition of an income tax expense in the amount of $96,584 as a result of the C-corporation treatment for the Formula Folios Tactical Growth ETF. (See Note 2)

See accompanying notes to financial statements.

FormulaFolios ETFs

STATEMENTS OF CHANGES IN NET ASSETS

FormulaFolios Hedged Growth ETF

	For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022
FROM OPERATIONS
Net investment income	$	698,285		$	135,968
Net realized gain (loss) from investments		(561,587	)		5,613,793
Net realized gain from in-kind redemptions		1,517,632			3,784,462
Net change in unrealized depreciation on investments		(3,872,987	)		(11,574,267	)
Net decrease in net assets resulting from operations		(2,218,657	)		(2,040,044	)

DISTRIBUTIONS TO SHAREHOLDERS
Total distributions paid		(545,570	)		(108,260	)
Total distributions to shareholders		(545,570	)		(108,260	)

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold		58,937,922			—
Cost of shares redeemed		(16,099,084	)		(14,193,079	)
Transaction Fees (Note 5)		3,000			2,000
Net increase (decrease) in net assets from shares of beneficial interest		42,841,838			(14,191,079	)

TOTAL INCREASE (DECREASE) IN NET ASSETS		40,077,611			(16,339,383	)

NET ASSETS
Beginning of Year		33,414,591			49,753,974
End of Year	$	73,492,202		$	33,414,591

SHARE ACTIVITY
Shares Sold		1,800,000			—
Shares Redeemed		(500,000	)		(400,000	)
Net increase (decrease) in shares of beneficial interest outstanding		1,300,000			(400,000	)

See accompanying notes to financial statements.

FormulaFolios ETFs

STATEMENTS OF CHANGES IN NET ASSETS

FormulaFolios Smart Growth ETF

	For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022
FROM OPERATIONS
Net investment income	$	419,271		$	624,207
Net realized gain (loss) from investments		(90,575	)		942,835
Net realized gain from in-kind redemptions		888,975			2,773,840
Net change in unrealized depreciation on investments		(2,160,708	)		(6,183,236	)
Net decrease in net assets resulting from operations		(943,037	)		(1,842,354	)

DISTRIBUTIONS TO SHAREHOLDERS
Total distributions paid		(1,292,303	)		(721,519	)
Total distributions to shareholders		(1,292,303	)		(721,519	)

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold		—			—
Cost of shares redeemed		(9,345,015	)		(11,548,028	)
Transaction Fees (Note 5)		2,750			4,782
Net decrease in net assets from shares of beneficial interest		(9,342,265	)		(11,543,246	)

TOTAL DECREASE IN NET ASSETS		(11,577,605	)		(14,107,119	)

NET ASSETS
Beginning of Year		32,570,314			46,677,433
End of Year	$	20,992,709		$	32,570,314

SHARE ACTIVITY
Shares Sold		—			—
Shares Redeemed		(300,000	)		(325,000	)
Net decrease in shares of beneficial interest outstanding		(300,000	)		(325,000	)

See accompanying notes to financial statements.

FormulaFolios ETFs

STATEMENTS OF CHANGES IN NET ASSETS

FormulaFolios Tactical Growth ETF

	For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022
FROM OPERATIONS
Net investment income	$	479,599		$	585,941
Net realized gain (loss) from investments		(2,033,351	)		236,944
Net realized gain (loss) from in-kind redemptions		(96,154	)		1,502,874
Net change in unrealized depreciation on investments		(820,911	)		(8,338,699	)
Net decrease in net assets resulting from operations		(2,470,817	)		(6,012,940	)

DISTRIBUTIONS TO SHAREHOLDERS
Return of capital		(409,110	)		—
Distributions paid		(8,728	)		(423,488	)
Total distributions to shareholders		(417,838	)		(423,488	)

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold		—			—
Cost of shares redeemed		(9,316,067	)		(12,316,286	)
Transaction Fees (Note 5)		3,000			3,500
Net decrease in net assets from shares of beneficial interest		(9,313,067	)		(12,312,786	)

TOTAL DECREASE IN NET ASSETS		(12,201,722	)		(18,749,214	)

NET ASSETS
Beginning of Year		35,097,280			53,846,494
End of Year	$	22,895,558		$	35,097,280

SHARE ACTIVITY
Shares Sold		—			—
Shares Redeemed		(375,000	)		(425,000	)
Net decrease in shares of beneficial interest outstanding		(375,000	)		(425,000	)

See accompanying notes to financial statements.

FormulaFolios ETFs

STATEMENTS OF CHANGES IN NET ASSETS

FormulaFolios Tactical Income ETF

	For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022
FROM OPERATIONS
Net investment income	$	1,750,093		$	4,900,173
Net realized loss from investments		(4,408,141	)		(4,402,511	)
Net realized gains from underlying investment companies		—			166,539
Net realized gain (loss) from in-kind redemptions		(2,242,055	)		1,624,895
Net change in unrealized appreciation (depreciation) on investments		881,348			(14,530,465	)
Net increase(decrease) in net assets resulting from operations		(4,018,755	)		(12,241,369	)

DISTRIBUTIONS TO SHAREHOLDERS
Return of capital		(31,130	)		—
Distributions paid		(1,798,000	)		(4,852,266	)
Total distributions to shareholders		(1,829,130	)		(4,852,266	)

FROM SHARES OF BENEFICIAL INTEREST
Proceeds from shares sold		2,051,909			9,199,163
Cost of shares redeemed		(40,351,422	)		(73,999,371	)
Transaction Fees (Note 5)		9,750			—
Net decrease in net assets from shares of beneficial interest		(38,289,763	)		(64,800,208	)

TOTAL DECREASE IN NET ASSETS		(44,137,648	)		(81,893,843	)

NET ASSETS
Beginning of Year		125,638,444			207,532,287
End of Year	$	81,500,796		$	125,638,444

SHARE ACTIVITY
Shares Sold		100,000			400,000
Shares Reinvested		—			—
Shares Redeemed		(1,950,000	)		(3,250,000	)
Net decrease in shares of beneficial interest outstanding		(1,850,000	)		(2,850,000	)

See accompanying notes to financial statements.

FormulaFolios ETFs

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Years Presented

	FormulaFolios Hedged Growth ETF

	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022			May 31, 2021			May 31, 2020			May 31, 2019
Net asset value, beginning of year	$	33.41		$	35.54		$	22.59		$	25.60		$	28.03

Activity from investment operations:
Net investment income (1)		0.43			0.11			0.10			0.23			0.12
Net realized and unrealized gain (loss) on investments		(1.61	)		(2.16	)		12.93			(2.88	)		(1.98	)
Total from investment operations		(1.18	)		(2.05	)		13.03			(2.65	)		(1.86	)

Less distributions from:
Net investment income		(0.28	)		(0.08	)		(0.08	)		(0.20	)		(0.13	)
Net realized gains		—			—			—			(0.16	)		(0.44	)
Total distributions		(0.28	)		(0.08	)		(0.08	)		(0.36	)		(0.57	)

Net asset value, end of year	$	31.95		$	33.41		$	35.54		$	22.59		$	25.60

Market price, end of year	$	31.91		$	33.37		$	35.55		$	22.56		$	25.62

Total return (2)		(3.53	)%		(5.78	)%		57.77	%		(10.57	)%		(6.66	)%

Net assets, at end of year (000s)	$	73,492		$	33,415		$	49,754		$	25,978		$	65,271

Ratio of gross expenses to average net assets (4)		1.07	%		1.18	%		1.18	%		1.05	%		1.03	%
Ratio of net expenses to average net assets (4)		0.95	%		0.95	%		0.95	%		0.96	% (6)		0.98	% (6)
Ratio of net investment income to average net assets (3)		1.32	%		0.32	%		0.35	%		0.88	%		0.43	%

Portfolio Turnover Rate (5)		14	%		72	%		135	%		398	%		666	%

(1)

Per share amounts calculated using the average shares method.

(2)

Total returns are historical in nature and assume changes in share price, reinvestment of all dividends and distributions, if any.

(3)

Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(4)

Does not include the Fund’s share of the expenses of the underlying investment companies in which the Fund invests.

(5)

Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (See Note 5)

(6)

Ratio includes 0.01% and 0.03% for the years ended May 31, 2020 and May 31, 2019 attributed to interest expense and fees.

See accompanying notes to financial statements.

FormulaFolios ETFs

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Years Presented

	FormulaFolios Smart Growth ETF

	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022			May 31, 2021			May 31, 2020			May 31, 2019
Net asset value, beginning of year	$	33.41		$	35.91		$	24.70		$	24.98		$	26.10

Activity from investment operations:
Net investment income (1)		0.52			0.54			0.28			0.49			0.35
Net realized and unrealized gain (loss) on investments		(1.24	)		(2.44	)		11.29			(0.34	)		(1.10	)
Total from investment operations		(0.72	)		(1.90	)		11.57			0.15			(0.75	)

Less distributions from:
Net investment income		(0.42	)		(0.41	)		(0.36	)		(0.43	)		(0.37	)
Net realized gains		(1.17	)		(0.19	)		—			—			—
Total distributions		(1.59	)		(0.60	)		(0.36	)		(0.43	)		(0.37	)

Net asset value, end of year	$	31.10		$	33.41		$	35.91		$	24.70		$	24.98

Market price, end of year	$	31.06		$	33.40		$	35.92		$	24.71		$	24.96

Total return (2)		(2.07	)%		(5.42	)%		47.14	%		0.48	%		(2.83	)%

Net assets, at end of year (000s)	$	20,993		$	32,570		$	46,677		$	26,551		$	50,593

Ratio of gross expenses to average net assets (4)		0.95	%		0.72	%		0.74	%		0.65	%		0.61	%
Ratio of net expenses to average net assets (4)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Ratio of net investment income to average net assets (3)		1.63	%		1.50	%		0.94	%		1.87	%		1.35	%

Portfolio Turnover Rate (5)		28	%		39	%		10	%		0	%		0	%

(1)

Per share amounts calculated using the average shares method.

(2)

Total returns are historical in nature and assume changes in share price, reinvestment of all dividends and distributions, if any.

(3)

Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(4)

Does not include the Fund’s share of the expenses of the underlying investment companies in which the Fund invests.

(5)

Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (See Note 5)

See accompanying notes to financial statements.

FormulaFolios ETFs

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Years Presented

	FormulaFolios Tactical Growth ETF

	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022			May 31, 2021			May 31, 2020			May 31, 2019
Net asset value, beginning of year	$	27.00		$	31.22		$	25.52		$	23.78		$	25.16

Activity from investment operations:
Net investment income (1)		0.44			0.37			0.13			0.35			0.37
Net realized and unrealized gain (loss) on investments		(2.33	)		(4.33	)		5.82			1.72			(1.34	)
Total from investment operations		(1.89	)		(3.96	)		5.95			2.07			(0.97	)

Less distributions from:
Net investment income		(0.01	)		(0.26	)		(0.25	)		(0.25	)		(0.41	)
Net return of capital		(0.35	)		—			—			(0.08	)		—
Total distributions		(0.36	)		(0.26	)		(0.25	)		(0.33	)		(0.41	)

Net asset value, end of year	$	24.75		$	27.00		$	31.22		$	25.52		$	23.78

Market price, end of year	$	24.69		$	26.95		$	31.21		$	25.52		$	23.79

Total return (2)		(6.95	)%		(12.79	)%		23.44	%		8.69	%		(3.81	)%

Net assets, at end of year (000s)	$	22,896		$	35,097		$	53,846		$	33,809		$	49,932

Ratio of gross expenses to average net assets (4)		1.53	% (7)		0.94	%		0.93	%		0.88	%		0.87	%
Ratio of net expenses to average net assets (4)		0.80	% (6)(7)		0.80	%		0.80	%		0.80	%		0.80	%
Ratio of net investment income to average net assets (3)		1.76	%		1.26	%		0.46	%		1.35	%		1.56	%

Portfolio Turnover Rate (5)		268	%		55	%		42	%		14	%		92	%

(1)

Per share amounts calculated using the average shares method.

(2)

Total returns are historical in nature and assume changes in share price, reinvestment of all dividends and distributions, if any.

(3)

Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(4)

Does not include the Fund’s share of the expenses of the underlying investment companies in which the Fund invests.

(5)

Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (See Note 5)

(6)

The ratio of net expenses to average net assets includes the effect of a volunatry fee waiver reducing expenses 0.35% (See Note 4)

(7)

Ratios to average net assets (excluding tax expense)

Expenses before waiver and reimbursement			1.17	%
Expenses net waiver and reimbursement			0.80	%

See accompanying notes to financial statements.

FormulaFolios ETFs

FINANCIAL HIGHLIGHTS

Per Share Data and Ratios for a Share of Beneficial Interest Outstanding Throughout the Years Presented

	FormulaFolios Tactical Income ETF

	For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended			For the Year Ended
	May 31, 2023			May 31, 2022			May 31, 2021			May 31, 2020			May 31, 2019
Net asset value, beginning of year	$	21.66		$	23.99		$	23.77		$	24.13		$	24.02

Activity from investment operations:
Net investment income (1)		0.37			0.64			0.54			0.68			0.77
Net realized and unrealized gain (loss) on investments		(1.00	)		(2.35	)		0.24			(0.32	)		0.11
Total from investment operations		(0.63	)		(1.71	)		0.78			0.36			0.88

Less distributions from:
Net investment income		(0.39	)		(0.62	)		(0.56	)		(0.71	)		(0.77	)
Net return of capital		(0.01	)		—			—			(0.01	)		—
Total distributions		(0.40	)		(0.62	)		(0.56	)		(0.72	)		(0.77	)

Net asset value, end of year	$	20.63		$	21.66		$	23.99		$	23.77		$	24.13

Market price, end of year	$	20.62		$	21.64		$	24.00		$	23.73		$	24.15

Total return (2)		(2.88	)%		(7.31	)% (7)		3.29	% (6)		1.43	%		3.77	%

Net assets, at end of year (000s)	$	81,501		$	125,638		$	207,532		$	314,889		$	231,634

Ratio of gross expenses to average net assets (4)		0.78	%		0.75	%		0.74	%		0.71	%		0.74	%
Ratio of net expenses to average net assets (4)		0.78	%		0.75	%		0.74	%		0.71	%		0.74	%
Ratio of net investment income to average net assets (3)		1.79	%		2.71	%		2.24	%		2.79	%		3.24	%

Portfolio Turnover Rate (5)		38	%		66	%		143	%		78	%		135	%

(1)

Per share amounts calculated using the average shares method.

(2)

Total returns are historical in nature and assume changes in share price, reinvestment of all dividends and distributions, if any.

(3)

Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(4)

Does not include the Fund’s share of the expenses of the underlying investment companies in which the Fund invests.

(5)

Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. (See Note 5)

(6)

In 2021, 0.22% of the Fund’s total return consists of a reimbursement by the Adviser for a realized investment loss due to a trade error. Excluding this item, total return would have been 3.07%.

(7)

Includes adjustments in accordance with accounting principles generally accepted in the United States and, consequently, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions.

See accompanying notes to financial statements.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS
May 31, 2023

ORGANIZATION

The FormulaFolios Hedged Growth ETF (“Hedged Growth ETF”), the FormulaFolios Smart Growth ETF (“Smart Growth ETF”), the FormulaFolios Tactical Growth ETF (“Tactical Growth ETF”), and the FormulaFolios Tactical Income ETF (“Tactical Income ETF”) (each a “Fund” and collectively the “Funds”) are each a diversified series of Northern Lights Fund Trust IV (the “Trust”), a statutory trust organized under the laws of the State of Delaware on June 2, 2015, and registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The investment objective of the Hedged Growth ETF and Smart Growth ETF is to seek to provide capital growth. The Tactical Growth ETF seeks long -term total return. The Tactical Income ETF seeks to provide income. The Hedged Growth ETF and Tactical Income ETF commenced operations on June 6, 2017. The Smart Growth ETF and Tactical Growth ETF commenced operations on November 1, 2017.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Funds in preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 “Financial Services – Investment Companies”.

Securities Valuation – The Funds record their investments at fair value. Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price. In the absence of a sale, such securities shall be valued at the mean between the current bid and ask prices on the day of valuation.

Valuation of Underlying Funds – The Funds may invest in portfolios of open-end or closed-end investment companies (the “investment companies”). Investment companies are valued at their respective net asset values as reported by such investment companies. Mutual funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value to the methods established by the board of directors of the open-end funds. Exchange -traded funds (“ETFs”) are valued at the last reported price or official closing price. The shares of many closed-end investment companies and ETFs, after their initial public offering, frequently trade at a price per share, which is different than the net asset value per share. The difference represents a market premium or market discount of such shares. There can be no assurances that the market discount or market premium on shares of any closed-end investment company or ETF purchased by the Funds will not change.

The Funds may hold securities, such as private placements, interests in commodity pools, other non-

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board of Trustees (the “Board”). The Board has designated the adviser as it’s “Valuation Designee” for execution of these procedures. The adviser may also enlist third party consultants such as an audit firm or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Fair Valuation Process – Applicable investments are valued collectively via inputs from the adviser. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are insufficient or not readily available on a particular business day (including securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source); (ii) securities for which, in the judgment of the adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) since the closing prices were established on the principal exchange on which they are traded, but prior to a Fund’s calculation of its net asset value. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the adviser based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the adviser is unable to obtain a current bid from such independent dealers or other independent parties, the adviser shall determine the fair value of such security using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of a Fund’s holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; and (xi) the market value of any securities into which the security is convertible or exchangeable.

The Funds utilize various methods to measure the fair value of all of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Funds have the ability to access.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of May 31, 2023 for the Funds’ assets measured at fair value:

Hedged Growth ETF

Assets *	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	71,882,928	$	—	$	—	$	71,882,928
Total	$	71,882,928	$	—	$	—	$	71,882,928

Smart Growth ETF

Assets *	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	20,768,334	$	—	$	—	$	20,768,334
Total	$	20,768,334	$	—	$	—	$	20,768,334

Tactical Growth ETF

Assets *	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	22,617,849	$	—	$	—	$	22,617,849
Short-Term Investment - Money Market Fund		813,240		—		—		813,240
Total	$	23,431,089	$	—	$	—	$	23,431,089

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

Tactical Income ETF

Assets *	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	79,883,720	$	—	$	—	$	79,883,720
Total	$	79,883,720	$	—	$	—	$	79,883,720

The Funds did not hold any Level 2 or 3 securities during the year.

See Schedules of Investments for industry classification.

Exchange Traded Funds – The Funds may invest in ETFs. ETFs are a type of fund bought and sold on a securities exchange. An ETF trades like common stock. An index ETF represents a portfolio of securities. The risks of owning an ETF generally reflect the risks of owning the underlying securities in which it invests, although the lack of liquidity on an ETF could result in it being more volatile. Additionally, ETFs have fees and expenses that reduce their value.

Security Transactions and Related income – Security transactions are accounted for on the trade date. Interest income is recognized on an accrual basis and includes amortization and accretion, which is recorded using the effective yield method. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

Distributions to Shareholders – Dividends from net investment income, if any, are declared and paid quarterly for Hedged Growth ETF, Smart Growth ETF, and Tactical Growth ETF and monthly for Tactical Income ETF. Distributable net realized capital gains, if any, are declared and distributed annually. Dividends from net investment income and distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions to shareholders are recorded on the ex-dividend date.

Cash and Cash Equivalents – Idle cash may be swept into various overnight demand deposits and is classified as cash and cash equivalents on the Statements of Assets and Liabilities. The Funds maintain cash in bank deposit accounts which, at times, may exceed United States federally insured limits. Amounts swept overnight are available on the next business day.

Federal Income Taxes – Management has analyzed the Funds’ tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions for the years ended May 31 in each of 2020, 2021 and 2022, or expected to be taken in the Hedged Growth ETF, Smart Growth ETF and Tactical Income ETF’s May 31, 2023 year-end tax returns. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the year ended May 31, 2023, the Hedged Growth ETF, Smart Growth ETF and Tactical Income ETF did not incur any interest or penalties.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

It is the Tactical Growth ETF’s intention to comply with the special provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a fund qualifies and distributes at least 90% of its taxable income, such fund (but not the shareholders) will be relieved of federal income tax on the income distributed. The Tactical Growth ETF did not qualify to elect treatment as a regulated investment company pursuant to Subchapter M of the Internal Revenue Code for the current year. The Tactical Growth ETF is treated as a regular C-corporation for federal income tax purposes and as such is obligated to pay federal, state and local income tax on taxable income. For the year ended May 31, 2023, the federal income tax rate is 21% which resulted in a recognition of an income tax expense in the Statements of Operations in the amount of $96,584 as a result of the C-corporation treatment. The Adviser is reimbursing the Fund for the tax expense which is not subject to recapture.

Expenses – Expenses of the Trust that are directly identifiable to a specific Fund are charged to that Fund. Expenses, which are not readily identifiable to a specific Fund, are allocated in such a manner as deemed equitable (as determined by the Board), taking into consideration the nature and type of expense and the relative sizes of the Funds in the Trust.

Indemnification – The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the risk of loss due to these warranties and indemnities appears to be remote.

Securities Lending Risk – The Funds may lend portfolio securities to institutions, such as banks and certain broker -dealers. The Funds may experience a loss for delay in the recovery of their securities if the borrowing institution breaches its agreement with the Funds (see additional information at Note 6).

3. INVESTMENT TRANSACTIONS

For the year ended May 31, 2023, cost of purchases and proceeds from sales of portfolio securities (excluding in-kind transactions and short-term investments), amounted to:

Fund	Purchases		Sales
Hedged Growth ETF	$	7,199,395	$	7,481,992
Smart Growth ETF		6,961,462		7,503,860
Tactical Growth ETF		72,846,074		72,872,639
Tactical Income ETF		36,236,443		37,782,539

FormulaFolios ETFs

NOTES TO FINANCIAL STATEMENTS (Continued)

May 31, 2023

For the year ended May 31, 2023, cost of purchases and proceeds from sales of portfolio securities for in-kind transactions, amounted to:

Fund	Purchases		Sales
Hedged Growth ETF	$	58,096,667	$	15,809,125
Smart Growth ETF		—		9,159,212
Tactical Growth ETF		—		9,177,732
Tactical Income ETF		2,011,866		39,503,363

INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

FormulaFolio Investments LLC serves as the Funds’ investment adviser (the “Adviser”) pursuant to an investment advisory agreement with the Trust (the “Advisory Agreement”). Pursuant to the Advisory Agreement, the Adviser, under the oversight of the Board, directs the daily operations of the Funds and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Funds pay the Adviser a fee, computed and accrued daily and paid monthly, at an annual rate of 0.80%, 0.35%, 0.60%, and 0.60% of average daily net assets of Hedged Growth ETF, Smart Growth ETF, Tactical Growth ETF, and Tactical Income ETF, respectively. During year ended May 31, 2023, the Adviser earned the following fees:

Fund	Advisory Fee
Hedged Growth ETF	$	421,168
Smart Growth ETF		90,166
Tactical Growth ETF		164,228
Tactical Income ETF		586,281

Pursuant to a written agreement (the “Waiver Agreement”), the Adviser has contractually agreed, until at least September 30, 2023, to ensure that total annual fund operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, taxes, brokerage fees and commissions, borrowing costs (such as interest and dividend expense on securities sold short), acquired fund fees and expenses, fees and expenses associated with investments in other collective investment vehicles or derivative instruments (including for example option and swap fees and expenses), or extraordinary expenses such as litigation) will not exceed 0.95%, 0.60%, 0.80%, and 0.80% of average daily net assets of Hedged Growth ETF, Smart Growth ETF, Tactical Growth ETF, and Tactical Income ETF, respectively; subject to possible recoupment from the Funds in future years within the three years from the date the fees have been waived or reimbursed if such recoupment can be achieved within the lesser of the foregoing expense limits or the expense limits in place at the time of the recoupment. Fee waiver and reimbursement arrangements can decrease the Funds’ expenses and boost its performance. If the Adviser waives any fee or reimburses any expense pursuant to the Waiver Agreement, and the operating expenses attributable to the Funds are subsequently less than the Expense Limitation, the Adviser shall be entitled to reimbursement by the applicable Fund for such waived fees or reimbursed expenses provided that such reimbursement does not cause the expenses to exceed the Expense Limitation. If the Funds’ operating expenses subsequently exceed the Expense Limitation, the reimbursements shall be suspended.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

During the year ended May 31, 2023, the Adviser waived fees and/or reimbursed expenses, pursuant to the Waiver Agreement, in the amounts of:

	Fees waived
	(reimbursed) by the
Fund	Adviser
Hedged Growth ETF	$	62,290
Smart Growth ETF		90,110
Tactical Growth ETF		199,077	*
Tactical Income ETF		—

Includes tax expense in the amount of $96,584 as a result of the C-corporation treatment, which is not subject to recapture.

The table below contains the amounts of fee waivers and expense reimbursements subject to recapture by the Adviser through May 31 of the year indicated.

Fund	2024		2025		2026
Hedged Growth ETF	$	111,207	$	101,069	$	62,290
Smart Growth ETF		59,474		47,844		90,110
Tactical Growth ETF		69,470		64,988		102,493

Distributor – The distributor of the Funds is Northern Lights Distributors, LLC (the “Distributor”). The Board has adopted, on behalf of the Funds, the Trust’s Master Distribution and Shareholder Servicing Plan as amended (the “Plan”), pursuant to Rule 12b-1 under the 1940 Act, to pay for certain distribution activities and shareholder services related to fund shares. Under the Plan, the Funds may pay 0.25% per year of the average daily net assets of fund shares for such distribution and shareholder service activities. As of May 31, 2023 the Plan has not been activated. For the year ended May 31, 2023, the Funds did not incur any distribution fees.

The Distributor acts as the Funds’ principal underwriter in a continuous public offering of the Funds’ shares and is an affiliate of Ultimus Fund Solutions, LLC. For the year ended May 31, 2023, there were no underwriting commissions.

In addition, certain affiliates of the Distributor provide services to the Funds as follows:

Ultimus Fund Solutions, LLC (“UFS”) – UFS, an affiliate of the Distributor, provides administration and fund accounting services to the Trust. Pursuant to separate servicing agreements with UFS, the Funds pay UFS customary fees for providing administration and fund accounting services to the Funds, which are included in administrative service fees in the Statements of Operations. Certain officers of the Trust are also officers of UFS, and are not paid any fees directly by the Funds for serving in such capacities.

Northern Lights Compliance Services, LLC (“NLCS”) – NLCS, an affiliate of UFS and the Distributor, provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between NLCS and the Trust. Under the terms of such agreement, NLCS receives

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

customary fees from each Fund, which are included in compliance officer fees in the Statements of Operations.

Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of UFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Funds on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from the Funds, which are included in printing expenses in the Statements of Operations.

CAPITAL SHARE TRANSACTIONS

Shares are not individually redeemable and may be redeemed by the Funds at NAV only in large blocks known as “Creation Units.” Shares are created and redeemed by the Funds only in Creation Unit size aggregations of 25,000 for Smart Growth ETF and Tactical Growth ETF. Shares are created and redeemed by the Funds only in Creation Unit size aggregations of 50,000 shares for Hedged Growth ETF and Tactical Income ETF. Only Authorized Participants or transactions done through an Authorized Participant are permitted to purchase or redeem Creation Units from the Funds. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per share of the Fund on the transaction date.

Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances. In addition, the Funds may impose transaction fees on purchases and redemptions of Fund shares to cover the custodial and other costs incurred by the Funds in effecting trades. A fixed fee payable to the Custodian may be imposed on each creation and redemption transaction regardless of the number of Creation Units involved in the transaction (“Fixed Fee”). Purchases and redemptions of Creation Units for cash or involving cash-in-lieu are required to pay an additional variable charge to compensate the Funds and its ongoing shareholders for brokerage and market impact expenses relating to Creation Unit transactions (“Variable Charge,” and together with the Fixed Fee, the “Transaction Fees”). Transactions in capital shares for the Funds are disclosed in the Statements of Changes in Net Assets. For the year ended May 31, 2023, Hedged Growth ETF received $3,000 in fixed fees and $0 in variable fees, Smart Growth ETF received $2,750 in fixed fees and $0 in variable fees, Tactical Growth ETF received $3,000 in fixed fees and $0 in variable fees and Tactical Income ETF received $9,750 in fixed fees and $0 in variable fees, respectively.

The Transaction Fees for the Funds are listed in the table below:

Fee for in-Kind and Cash	Maximum Additional Variable
Purchases	Charge for Cash Purchases*
$250	2.00%*

* The maximum Transaction Fee may be up to 2.00% of the amount invested.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

SECURITIES LENDING

Under an agreement (the “Securities Lending Agreement”) with the Securities Finance Trust Company (“SFTC”), the Funds can lend their portfolio securities to brokers, dealers and other financial institutions approved by the Board to earn additional income. For each securities loan, the borrower shall transfer collateral in an amount determined by applying the margin to the market value of the loaned available securities (102% for same currency and 105% for cross currency). Collateral is invested in highly liquid, short-term instruments such as money market funds in accordance with the Funds’ security lending procedures. The Funds continue to receive interest or dividends on the securities loaned. The Funds have the right under the Securities Lending Agreement to recover the securities from the borrower on demand; if the borrower fails to deliver the securities on a timely basis, the Funds could experience delays or losses on recovery. Additionally, the Funds are subject to the risk of loss from investments made with the cash received as collateral. The Funds manage credit exposure arising from these lending transactions by, in appropriate circumstances, entering into master netting agreements and collateral agreements with third-party borrowers that provide in the event of default (such as bankruptcy or a borrower’s failure to pay or perform), the right to net a third-party borrower’s rights and obligations under such agreement and liquidate and set off collateral against the net amount owed by the counterparty.

The following table breaks out the Funds’ securities lending transactions accounted for as secured borrowings with cash collateral of overnight and continuous maturities as of May 31, 2023:

Tactical Growth ETF

	Overnight
	and				Between 30
Securities Lending Transactions	Continuous		< 30 days		& 90 days		> 90 days		Total
Morgan Stanley Institutional Liquidity Funds - Institutional Class	$	813,240	$	—	$	—	$	—	$	813,240
Total Borrowings	$	813,240	$	—	$	—	$	—	$	813,240

At May 31, 2023, the Tactical Growth ETF had loaned securities and received cash collateral for the loan. This cash was invested in the Morgan Stanley Institutional Liquidity Funds - Institutional Class (“Money Market Fund”) as shown in the Schedule of Investments. The Fund receives compensation relating to the lending of the Fund’s securities as reflected in the Statements of Operations. The fair value of the securities loaned for the Tactical Growth ETF totaled $ 797,202 at May 31, 2023. The securities loaned are noted in the Schedule of Investments. The fair value of the “Collateral for Securities Loaned” on the Schedule of Investments includes only cash collateral received and reinvested that totaled $813,240 for the Fund at May 31, 2023. These amounts are offset by a liability recorded as “Security lending collateral” as shown on the Statements of Assets and Liabilities.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

UNDERLYING FUND RISK

Other investment companies including ETFs and closed-end funds (“Underlying Funds”) in which the Funds invest are subject to investment advisory and other expenses, which will be indirectly paid by the Funds. As a result, the cost of investing in the Funds will be higher than the cost of investing directly in the Underlying Funds and may be higher than other ETFs that invest directly in stocks and bonds. Each of the Underlying Funds is subject to its own specific risks, but the Adviser expects the principal investment risks of such Underlying Funds will be similar to the risks of investing in the corresponding Funds. Closed-end funds and ETFs may also trade at a discount or premium to their NAV and may trade at a larger discount or smaller premium subsequent to purchase by the Funds.

UNDERLYING INVESTMENT IN OTHER INVESTMENT COMPANIES

The Hedged Growth ETF currently seeks to achieve its investment objective by investing a portion of its assets in the iShares 1-3 Year Treasury Bond ETF (“iShares 1-3”). The Hedged Growth ETF may redeem the security at any time if the Adviser determines that it is in the best interest of the Hedged Growth ETF and its shareholders to do so.

The performance of the Hedged Growth ETF will be directly affected by the performance of the security. The annual report of the security, along with the report of the independent registered public accounting firm is included in the security’s N-CSRs available at www.sec.gov. As of May 31, 2023, the percentage of the Hedged Growth ETF’s net assets invested in iShares 1-3 was 25.2%.

The Smart Growth ETF currently seeks to achieve its investment objective by investing a portion of its assets in the iShares Core S&P 500 ETF (“iShares”). The Smart Growth ETF may redeem the security at any time if the Adviser determines that it is in the best interest of the Smart Growth ETF and its shareholders to do so.

The performance of the Smart Growth ETF will be directly affected by the performance of the security. The annual report of the security, along with the report of the independent registered public accounting firm is included in the security’s N-CSRs available at www.sec.gov. As of May 31, 2023, the percentage of the Smart Growth ETF’s net assets invested in iShares was 31.7%.

The Tactical Growth ETF currently seeks to achieve its investment objective by investing a portion of its assets in the iShares 0-3 Month Treasury Bond ETF (“iShares 0-3”) and the Vanguard Ultra Short Bond ETF (“Vanguard”). The Tactical Growth ETF may redeem the securities at any time if the Adviser determines that it is in the best interest of the Tactical Growth ETF and its shareholders to do so.

The performance of the Tactical Growth ETF will be directly affected by the performance of each security. The annual report of each security, along with the report of the independent registered public accounting firm is included in each security’s N-CSRs available at www.sec.gov. As of May 31, 2023, the percentage of the Tactical Growth ETF’s net assets invested in iShares 0-3 and Vanguard was 30.2% and 30.1%, respectively.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

AGGREGATE UNREALIZED APPRECIATION AND DEPRECATION-TAX BASIS

The identified cost of investments in securities owned by each Fund for federal income tax purposes, and their respective gross unrealized appreciation and depreciation on May 31, 2023, were as follows:

	Cost for							Tax Net Unrealized
	Federal Tax		Unrealized		Unrealized			Appreciation/
Portfolio	Purposes		Appreciation		Depreciation			(Depreciation)
Hedged Growth ETF	$	72,987,471	$	324,439	$	(1,428,982	)	$	(1,104,543	)
Smart Growth ETF		18,962,156		2,164,413		(358,235	)		1,806,178
Tactical Growth ETF		23,493,042		15,915		(77,868	)		(61,953	)
Tactical Income ETF		87,386,538		22,570		(7,525,388	)		(7,502,818	)

10.

DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions for the fiscal year ended May 31, 2023 and May 31, 2022 was as follows:

	For the year ended May 31, 2023:
	Ordinary		Long-Term		Return		Tax-Exempt
Portfolio	Income		Capital Gains		of Capital		Income		Total
Hedged Growth ETF	$	545,570	$	—	$	—	$	—	$	545,570
Smart Growth ETF		351,541		940,762		—		—		1,292,303
Tactical Growth ETF		8,728		—		409,110		—		417,838
Tactical Income ETF		1,798,000		—		31,130		—		1,829,130

	For the year ended May 31, 2022:
	Ordinary		Long-Term		Return		Tax-Exempt
Portfolio	Income		Capital Gains		of Capital		Income		Total
Hedged Growth ETF	$	108,260	$	—	$	—	$	—	$	108,260
Smart Growth ETF		721,519		—		—		—		721,519
Tactical Growth ETF		423,488		—		—		—		423,488
Tactical Income ETF		4,852,266		—		—		—		4,852,266

Hedged Growth ETF, Smart Growth ETF and Tactical Income ETF

As of May 31, 2023 the components of accumulated earnings/(deficit) on a tax basis were as follows:

	Undistributed		Undistributed		Undistributed		Post October Loss			Capital Loss			Other		Unrealized			Total
	Ordinary		Ordinary		Long-Term		and			Carry			Book/Tax		Appreciation/			Accumulated
Portfolio	Tax-Exempt Income		Income		Capital Gains		Late Year Loss			Forwards			Differences		(Depreciation)			Earnings/(Deficits)
Hedged Growth ETF	$	—	$	226,707	$	—	$	—		$	(1,147,967	)	$	—		(1,104,543	)	$	(2,025,803	)
Smart Growth ETF		—		89,224		—		(8,796	)		(81,779	)		—		1,806,178			1,804,827
Tactical Income ETF		—		—		—		—			(26,553,398	)		—		(7,502,818	)		(34,056,216	)

Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Smart Growth ETF Fund incurred and elected to defer such capital losses of $8,796.

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

At May 31, 2023, the Funds had capital loss carry forwards for federal income tax purposes available to offset future capital gains, as follows:

	Non-Expiring
Portfolio	Short-Term		Long-Term		Total		CLCF Utilized
Hedged Growth ETF	$	561,587	$	586,380		1,147,967	$	—
Smart Growth ETF		81,779		—		81,779		—
Tactical Income ETF		14,651,612		11,901,786		26,553,398		—

Permanent book and tax differences, primarily attributable to tax adjustments for realized gain (loss) on in-kind redemptions, the book/tax basis treatment of non-deductible expenses, and distributions in excess, resulted in reclassifications for the Funds for the fiscal year ended May 31, 2023 as follows:

	Paid
	In			Accumulated
Portfolio	Capital			Earnings (Losses)
Hedged Growth ETF	$	1,517,632		$	(1,517,632	)
Smart Growth ETF		888,975			(888,975	)
Tactical Income ETF		(2,320,281	)		2,320,281

Tactical Growth ETF

The Tactical Growth ETF did not qualify to elect treatment as a regulated investment company pursuant to Subchapter M of the Internal Revenue Code for the current year. For fiscal year ended May 31, 2023, the Tactical Growth ETF determined that it had not met the gross income test for qualification as a regulated investment company. The Tactical Growth ETF is taxed as a regular C-corporation for federal income tax purposes and as such is obligated to pay federal, state and local income tax. This treatment differs from most investment companies, which elect to be treated as “regulated investment companies” under the Internal Revenue Code of 1986, as amended (the “Code”) in order to avoid paying entity level income taxes. Under current law, the Fund is not eligible to elect treatment as a regulated investment company. It is the Tactical Growth ETF’s intention to qualify for treatment as a regulated investment company pursuant to Subchapter M of the Internal Revenue Code for the fiscal year ending May 31, 2024, therefore no provision for deferred tax asset/liabilities are required.

At May 31, 2023, the Tactical Growth ETF had capital loss carry forwards for federal income tax purposes available to offset future capital gains, as follows:

Portfolio	Short-Term		Long-Term		Total		CLCF Utilized		Expiration
Tactical Growth ETF	$	2,233,995	$	910,999		3,144,994	$	—	Non-Expiring
		1,073,392		1,049,375		2,122,767		—	May 31, 2028
	$	3,307,387	$	1,960,374	$	5,267,761	$	—

FormulaFolios ETFs
NOTES TO FINANCIAL STATEMENTS (Continued)
May 31, 2023

11.

SUBSEQUENT EVENTS

Subsequent events after the date of the Statements of Assets and Liabilities have been evaluated through the date the financial statements were issued.

Distributions: The Board declared the following distributions:

Fund	Dividend Per Share		Record Date	Ex-Date	Payable Date
Hedged Growth ETF	$	0.1821	6/16/2023	6/15/2023	6/20/2023
Smart Growth ETF	$	0.2135	6/16/2023	6/15/2023	6/20/2023
Tactical Growth ETF	$	0.1883	6/16/2023	6/15/2023	6/20/2023
Tactical Income ETF	$	0.0432	6/16/2023	6/15/2023	6/20/2023
Tactical Income ETF	$	0.0521	7/18/2023	7/17/2023	7/24/2023

Effective June 1, 2023, FormulaFolio Investments LLC, the Funds’ Adviser, changed its name to “Brookstone Asset Management LLC.”

On June 26, 2023, the Board determined that it is in the best interest of the Funds’ shareholders to liquidate the Funds. It is anticipated that each Fund will cease operations, liquidate it assets and distribute liquidation proceeds to shareholders of record on or around October 16, 2023 (the “Liquidation Date”). The Funds may no longer pursue their investment objectives.

Management has determined that no events or transactions occurred requiring adjustment or disclosure in the financial statements other than the discussed above.

(COHEN LOGO)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders of FormulaFolios Hedged Growth ETF, FormulaFolios Smart Growth ETF,
FormulaFolios Tactical Growth ETF, and FormulaFolios Tactical Income ETF and
Board of Trustees of Northern Lights Fund Trust IV

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments of FormulaFolios Hedged Growth ETF, FormulaFolios Smart Growth ETF, FormulaFolios Tactical Growth ETF, and FormulaFolios Tactical Income ETF (the “Funds”), each a series of Northern Lights Fund Trust IV, as of May 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the related notes, and the financial highlights for each of the five years in the period then ended (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of May 31, 2023, the results of their operations, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ 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 Funds 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. 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.

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 procedures included confirmation of securities owned as of May 31, 2023, by correspondence with the custodian. 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.

We have served as the auditor of one or more investment companies advised by FormulaFolios Investments LLC since 2015.

(SIGNATURE)

COHEN & COMPANY, LTD.

Milwaukee, Wisconsin

July 28, 2023

COHEN & COMPANY, LTD.

800.229.1099 | 866.818.4538 fax | cohencpa.com

Registered with the Public Company Accounting Oversight Board

FormulaFolios ETFs
EXPENSE EXAMPLES (Unaudited)
May 31, 2023

Example

All exchange traded funds have operating expenses. As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. A shareholder may incur brokerage commissions on their purchase and sales of Fund shares, which are not reflected in the examples below.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from December 1, 2022 through May 31, 2023.

Actual Expenses

The “Actual” columns in the table below provide information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $ 1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The “Hypothetical” columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

					*Hypothetical*
			*Actual*		(5% return before expenses)
	Net	Beginning	Ending	Expenses	Ending	Expenses
	Expense	Account Value	Account Value	Paid During	Account Value	Paid During
	Ratio	12/1/22	5/31/23	Period *	5/31/23	Period*

FormulaFolios Hedged Growth ETF	0.95%	$1,000.00	$ 981.50	$4.69	$1,020.19	$4.78
FormulaFolios Smart Growth ETF	0.60%	$1,000.00	$ 975.80	$2.96	$1,021.94	$3.02
FormulaFolios Tactical Growth ETF	0.80%	$1,000.00	$1,026.60	$4.04	$1,020.94	$4.03
FormulaFolios Tactical Income ETF	0.75%	$1,000.00	$1,013.50	$3.76	$1,021.19	$3.78

Expense information for each Fund is presented on the basis of the full one-half year period to enable comparison to other funds. It is based on assuming the same net expense ratio and average account value over the period, but it is multiplied by 182/365 (to reflect the full half-year period).

For more information about current performance, holdings, or historical premiums/discounts, please visit the Funds’ website at www.formulafoliofunds.com.

FormulaFolios ETFs
SUPPLEMENTAL INFORMATION (Unaudited)
May 31, 2023

The business address of each Trustee and Officer is 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246. All correspondence to the Trustees and Officers should be directed to c/o Ultimus Fund Solutions, LLC, P.O. Box 541150, Omaha, Nebraska 68154.

Independent Trustees***

Name, Address and Year of Birth	Position/Term of Office^*	Principal Occupation During the Past Five Years	Number of Funds in Fund Complex^ Overseen by Trustee**	Other Directorships held by Trustee During the Past Five Years
Joseph Breslin Year of Birth: 1953	Independent Trustee and Chairman of the Board since 2015	President and Consultant, Adviser Counsel, Inc. (formerly J.E. Breslin & Co.) (management consulting firm to investment advisers), (since 2009); Senior Counsel, White Oak Global Advisors, LLC. (since 2016).	4	Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Director, Kinetics Mutual Funds, Inc. (since 2000); Trustee, Kinetics Portfolios Trust (since 2000); Trustee, Forethought Variable Insurance Trust (since 2013).
Thomas Sarkany Year of Birth: 1946	Independent Trustee since 2015	Founder and President, TTS Associates Inc. (since December 2022); and Founder and President, TTS Consultants, LLC (financial services) (since 2010).	4	Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Arrow Investments Trust (since 2014), Arrow ETF Trust (since 2012), Trustee, Northern Lights Fund Trust II (since 2011); Director, Aquila Distributors (since 1981)
Charles Ranson Year of Birth: 1947	Independent Trustee since 2015	Principal, Ranson & Associates (strategic analysis and planning, including risk assessment and capital formation for entrepreneurial ventures) (since 2003).	4	Northern Lights Fund Trust IV (for series not affiliated with the Fund since 2015); Advisors Preferred Trust (since November 2012)

5/31/23 – NLFT IV_v2

FormulaFolios ETFs
SUPPLEMENTAL INFORMATION (Unaudited) (Continued)
May 31, 2023

Interested Trustee, Officers

Name, Address and Year of Birth	Position/Term of Office^*	Principal Occupation During the Past Five Years	Number of Funds in Fund Complex^ Overseen by Trustee**	Other Directorships held by Trustee During the Past Five Years
Wendy Wang*** 80 Arkay Drive Hauppauge, NY 11788 Year of Birth: 1970	Trustee since 2023, President since 2015	Senior Vice President, Director of Tax and Compliance Administration, Ultimus Fund Solutions, LLC (since 2012).	4	N/A
Sam Singh 80 Arkay Drive Hauppauge, NY 11788 Year of Birth: 1976	Treasurer since 2015	Vice President, Ultimus Fund Solutions, LLC (since 2015).	N/A	N/A
Jennifer Farrell 80 Arkay Drive Hauppauge, NY 11788 Year of Birth: 1969	Secretary since 2017	Associate Director (since 2022) and Manager (2018-2022), Legal Administration), Ultimus Fund Solutions, LLC; Senior Paralegal, Gemini Fund Services, LLC (since 2015).	N/A	N/A
James Ash Year of Birth: 1976	Chief Compliance Officer since 2019	Senior Vice President, Head of Compliance (since 2023 ); Senior Compliance Officer, Northern Lights Compliance, LLC (2019 - 2023); Senior Vice President, National Sales Gemini Fund Services, LLC (2017- 2019).	N/A	N/A

The term of office for each Trustee and officer listed above will continue indefinitely until the individual resigns or is removed.

As of May 31, 2023, the Trust was comprised of 33 active portfolios managed by unaffiliated investment advisers. The term “Fund Complex” applies only to the Funds. The Funds do not hold themselves out as related to any other series within the Trust for investment purposes, nor do they share the same investment adviser with any other series.

***

Ms. Wang is an interested Trustee because she is also an officer of the Trust.

The Funds’ SAI includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-888-562-8880.

5/31/23 – NLFT IV_v2

PRIVACY NOTICE

Northern Lights Fund Trust IV

Rev. April 2021

FACTS

WHAT DOES NORTHERN LIGHTS FUND TRUST IV DO WITH YOUR PERSONAL INFORMATION?

Why?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depends on the product or service that you have with us. This information can include:

● Social Security number and wire transfer instructions

● account transactions and transaction history

● investment experience and purchase history

When you are no longer our customer, we continue to share your information as described in this notice.

How?

All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Northern Lights Fund Trust IV chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information:	Does Northern Lights Fund Trust IV share information?	Can you limit this sharing?
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.	YES	NO
For our marketing purposes - to offer our products and services to you.	NO	We don’t share
For joint marketing with other financial companies.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness.	NO	We don’t share
For nonaffiliates to market to you	NO	We don’t share

QUESTIONS?

Call 1-631-490-4300

PRIVACY NOTICE

Northern Lights Fund Trust IV

Page 2

What we do:

How does Northern Lights Fund Trust IV protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.

How does Northern Lights Fund Trust IV collect my personal information?

We collect your personal information, for example, when you

● open an account or deposit money

● direct us to buy securities or direct us to sell your securities

● seek advice about your investments

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only:

● sharing for affiliates’ everyday business purposes – information about your creditworthiness.

● affiliates from using your information to market to you.

● sharing for nonaffiliates to market to you.

State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ● Northern Lights Fund Trust IV has no affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. ● Northern Lights Fund Trust IV does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ● Northern Lights Fund Trust IV does not jointly market.

PROXY VOTING POLICY

Information regarding how the Funds voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 as well as a description of the policies and procedures that the Funds use to determine how to vote proxies is available without charge, upon request, by calling 1-855-907-3233 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Form N-PORT is available on the SEC’s website at http://www.sec.gov. The information on Form N-PORT is available without charge, upon request, by calling 1-855-733-3863.

INVESTMENT ADVISER

FormulaFolio Investments LLC

89 Ionia SW, Suite 600

Grand Rapids, MI 49503

ADMINISTRATOR

Ultimus Fund Solutions, LLC

225 Pictoria Drive, Suite 450

Cincinnati, OH 45246

FFI ETF-A23