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FRMO Corp. Announces Fiscal 2024 Results and Annual Meeting

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WHITE PLAINS, N.Y.--(BUSINESS WIRE)-- FRMO Corp. (the “Company� or “FRMO�) (OTC Pink: FRMO) today reported its financial results for the fiscal year 2024 ended May 31, 2024.

Financial Highlights

FRMO’s total book value as of May 31, 2024 was $403.3 million ($9.16 per share on a fully diluted basis), including $161.1 million of non-controlling interests. Excluding the non-controlling interests, book value was $242.1 million ($5.50 per share). This compares with total book value at the prior fiscal year end on May 31, 2023 of $284.1 million ($6.45 per share), including $114.8 million of non-controlling interests. Excluding the non-controlling interests, book value was $169.2 million ($3.85 per share).

Current assets, comprised primarily of cash and equivalents, equity securities, and digital assets, amounted to $276.1 million as of May 31, 2024, and $201.3 million as of May 31, 2023. Total liabilities were $35.9 million as of May 31, 2024, and $19.4 million as of May 31, 2023, comprised primarily of securities sold, not yet purchased, and deferred taxes.

Annual net income (loss) attributable to the Company in the fiscal year ended May 31, 2024 was $72,558,671 ($1.65 per diluted share) compared to $(12,603,972 ($(0.29) per diluted share) in 2023.

For the three months ended May 31, 2024, FRMO’s net income (loss) attributable to the Company was $22,537,547 ($0.51 per diluted share), compared to $(20,050,797) ($(0.46) per diluted share) a year earlier. Net income for the quarter is attributable to unrealized gains identified as Investment A in Note 4 of the Consolidated Financial Statements under Investment Concentration included in unrealized gains from equity securities and unrealized gains from investments. Investment A is an equity security held directly and indirectly, through the Company’s various investments in managed funds

Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets net of taxes for the three months ended May 31, 2024 was $12,459,787 ($0.28 per diluted share) compared to $(7,197,926) ($(0.16) per diluted share) for the same period in 2023. For the year ended May 31, 2024, this figure was $48,940,292 ($1.11 per diluted share) and $(6,382,222) ($(0.14) per diluted share) in the previous year.

Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets net of taxes is a measure not based on GAAP and is defined and reconciled to the most directly comparable GAAP measures in “Information Regarding Non-GAAP Measures� at the end of this release.

Valuation of securities and digital assets are subject to change after May 31, 2024. The market value of several securities and digital assets might have changed substantially since that date. We look forward to finding new ways to expand our digital asset mining operations.

As of May 31, 2024 and 2023, the Company held a 21.84% and 21.80% equity interest, respectively, in Horizon Kinetics Hard Assets LLC (“HKHA�), a company formed by Horizon Kinetics LLC (“Horizon�) and certain officers, principal stockholders and directors of the Company. The Company also holds a 4.95% interest in Horizon and earns substantially all of its advisory fees from Horizon. Due to the common control and ownership between HKHA and the Company’s principal stockholders and directors, HKHA has been consolidated within the Company’s financial statements. The noncontrolling interest of 78.16% and 78.20% in HKHA has been eliminated from results of operations for the years ended May 31, 2024 and 2023.

Further details are available in the Company’s Consolidated Financial Statements for the fiscal year ended May 31, 2024. These statements have been filed on the OTC Markets Group Disclosure and News Services, which may be accessed at . These documents are also available on the FRMO website at .

Annual Meeting

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, will host the 2024 Annual Meeting of Shareholders (“Meeting�) on Thursday, September 5, 2024, at 2:30 p.m. Eastern Time, to be held at

The Harvard Club of New York City, 35 West 44th Street, New York, NY 10036 (The West Room) and online via live webcast at .

For admission to the physical Annual Meeting at The Harvard Club, please see the FRMO representative in the lobby who will provide the necessary code for access.

No cameras, recording equipment, electronic devices, large bags, briefcases, or packages will be permitted in the Annual Meeting. Dress code for the Harvard Club is business casual (no jeans, sneakers, or athletic wear permitted).

Condensed Consolidated Balance Sheets
(in thousands)
May 31, May 31,

2024

Ìý

2023

Ìý
Assets
Current Assets:
Cash and cash equivalents

$

39,190

$

38,077

Equity securities, at fair value

Ìý

221,682

Ìý

155,512

Digital assets, at fair value

Ìý

10,979

Ìý

4,217

Other current assets

Ìý

4,252

Ìý

3,539

Total Current Assets

Ìý

276,102

Ìý

201,346

Investment in limited partnerships and other
equity investments, at fair value

Ìý

127,579

Ìý

70,656

Investments in securities exchanges

Ìý

6,463

Ìý

4,869

Other assets

Ìý

1,609

Ìý

1,815

Investment in Horizon Kinetics LLC

Ìý

17,205

Ìý

14,608

Participation in Horizon Kinetics LLC revenue stream

Ìý

10,200

Ìý

10,200

Total Assets

$

439,159

$

303,494

Ìý
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased

$

951

$

2,353

Other current liabilities

Ìý

1,258

Ìý

354

Total Current Liabilities

Ìý

2,209

Ìý

2,707

Deferred Tax Liability

Ìý

33,668

Ìý

16,004

Mortgage payable

Ìý

-

Ìý

669

Total Liabilities

Ìý

35,877

Ìý

19,379

Ìý
Stockholders' Equity:
Stockholders' Equity Attributable to the Company

Ìý

242,137

Ìý

169,283

Noncontrolling interests

Ìý

161,145

Ìý

114,832

Total Stockholders' Equity

Ìý

403,282

Ìý

284,114

Ìý
Total Liabilities and Stockholders' Equity

$

439,159

$

303,494

(Components may not sum to totals due to rounding)

ÌýCondensed Consolidated Statements of IncomeÌý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìý(amounts in thousands, except share data)Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìý ÌýThree Months EndedÌý Ìý ÌýYears EndedÌý
Ìý May 31, Ìý May 31, Ìý May 31, Ìý May 31,
Ìý

Ìý

2024

Ìý

Ìý

2023

Ìý

Ìý

Ìý

2024

Ìý

Ìý

2023

Ìý

Ìý (Unaudited) Ìý
ÌýRevenue:Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
ÌýFeesÌý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 709

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 737

Ìý

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌý 2,715

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌý 3,222

Ìý

ÌýEquity earnings (losses) from limited partnershipsÌý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìýand limited liability companiesÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 2,188

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (685

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 5,044

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,614

Ìý

ÌýUnrealized gains (losses) from investmentsÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 12,410

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (12,614

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 53,935

#

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (13,661

)

ÌýOtherÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,193

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 402

Ìý

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 4,275

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 4,046

Ìý

ÌýTotal revenue before unrealized gains (losses) from equity securitiesÌý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìýand digital assetsÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 16,500

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (12,159

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 65,969

#

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (4,779

)

ÌýUnrealized gains (losses) from equity securitiesÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 32,655

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (52,947

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 66,186

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (27,918

)

ÌýUnrealized gains (losses) from digital assetsÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,001

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 573

Ìý

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 6,272

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (450

)

ÌýTotal RevenueÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 50,156

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (64,533

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 138,427

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (33,147

)

ÌýTotal ExpensesÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 332

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 343

Ìý

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,556

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,837

Ìý

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
ÌýIncome (Loss) from Operations before Provision for (Benefit from) Income TaxesÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 49,824

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (64,877

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 136,871

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (34,984

)

ÌýProvision for (Benefit from) Income TaxesÌýÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 4,742

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (6,075

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 18,420

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (3,222

)

ÌýNet Income (Loss)Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 45,082

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (58,802

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 118,451

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (31,762

)

ÌýLess net income (loss) attributable to noncontrolling interestsÌý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 22,545

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (38,751

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 45,893

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (19,158

)

ÌýNet Income (Loss) Attributable to FRMO CorporationÌý

Ìý$

ÌýÌýÌýÌýÌýÌý 22,538

Ìý

Ìý$

ÌýÌýÌýÌýÌý (20,051

)

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌý 72,559

Ìý

Ìý$

ÌýÌýÌýÌýÌý (12,604

)

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
ÌýDiluted Net Income (Loss) per Common ShareÌý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 0.51

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌý (0.46

)

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1.65

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌýÌýÌý (0.29

)

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
ÌýWeighted Average Common Shares OutstandingÌý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
ÌýBasicÌý

Ìý

ÌýÌý 44,022,781

Ìý

Ìý

ÌýÌý 44,022,781

Ìý

Ìý

Ìý

ÌýÌý 44,022,781

Ìý

Ìý

ÌýÌý 44,021,069

Ìý

ÌýDilutedÌý

Ìý

ÌýÌý 44,027,031

Ìý

Ìý

ÌýÌý 44,022,781

Ìý

Ìý

Ìý

ÌýÌý 44,026,529

Ìý

Ìý

ÌýÌý 44,021,069

Ìý

(Components may not sum to totals due to rounding)

About FRMO Corp.

FRMO Corp. invests in and receives revenues based upon consulting and advisory fee interests in the asset management sector.

FRMO had 44,022,781 shares of common stock outstanding as of May 31, 2024.

For more information, visit our website at .

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 � With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like “believe,� “expect� and “anticipate� mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, the general economics of the financial industry, our ability to finance growth, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market.

Further information on our risk factors is contained in our quarterly and annual reports as filed on our website and on .

Information Regarding Non-GAAP Measures

Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities, digital assets, and diluted earnings (loss) per common share is net income (loss) attributable to the Company exclusive of unrealized gains (losses) from equity securities, digital assets, and diluted earnings (loss) per common share net of tax. Net income (loss) attributable to the Company is the GAAP measure most closely comparable to net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets.

Management uses net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities, digital assets, and diluted earnings (loss) per common share along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including unrealized gain (loss) from equity securities, digital assets, and diluted earnings per common share, which may vary significantly between periods. Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities, digital assets, and diluted earnings per common share is provided as supplemental information, and is not a substitute for net income (loss) attributable to the Company and does not reflect the Company’s overall profitability.

The following table reconciles the net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities to net income (loss) attributable to the Company for the periods indicated:

Ìý ÌýThree Months EndedÌý Ìý ÌýThree Months EndedÌý Ìý ÌýYears EndedÌý Ìý ÌýYears EndedÌý
Ìý May 31, 2024 Ìý May 31, 2023 Ìý May 31, 2024 Ìý May 31, 2023
Ìý Ìý Ìý Ìý Ìý Ìý(Unaudited)Ìý Ìý Ìý(Unaudited)Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìý ÌýAmountÌý Ìý Diluted earnings per common share Ìý ÌýAmountÌý Ìý Diluted earnings per common share Ìý ÌýAmountÌý Ìý Diluted earnings per common share Ìý ÌýAmountÌý Ìý Diluted earnings per common share
(000’s except per common share amounts and percentages) Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Net Income (Loss) Attributable to the Company Excluding the Effect of Unrealized Gain (Loss) from Equity Securities and Digital Assets, and Diluted Earnings per Common Share Reconciliation: Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Net income (loss) attributable to the Company

Ìý$

ÌýÌýÌýÌýÌýÌý 22,538

Ìý

Ìý

Ìý$

ÌýÌýÌý 0.51

Ìý

Ìý$

ÌýÌýÌýÌýÌý (20,051

)

Ìý

Ìý$

Ìý (0.46

)

Ìý

Ìý$

ÌýÌýÌýÌý 72,559

Ìý

Ìý

Ìý$

ÌýÌýÌý 1.65

Ìý

Ìý$

ÌýÌýÌý (12,604

)

Ìý

Ìý$

Ìý (0.29

)

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Unrealized gain (loss) from equity securities and digital assets

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌý 33,656

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (52,374

)

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 72,458

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌý (28,368

)

Ìý Ìý
Unrealized gain (loss) from equity securities and digital assets attributable to noncontrolling interests

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌý 22,191

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (39,059

)

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 44,532

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌý (21,907

)

Ìý Ìý
Unrealized gain (loss) from equity securities and digital assets attributable to the Company

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌý 11,465

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (13,315

)

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 27,926

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (6,461

)

Ìý Ìý
Tax (provision) benefit on unrealized gain (loss) from equity securities and digital assets attributable to the company

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌý (1,387

)

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 463

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (4,308

)

Ìý Ìý Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 240

Ìý

Ìý Ìý
Unrealized gain (loss) from equity securities and digital assets attributable to the Company, net of taxes

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌýÌý 10,078

Ìý

Ìý

Ìý$

ÌýÌýÌý 0.23

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (12,853

)

Ìý

Ìý$

Ìý (0.29

)

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌý 23,618

Ìý

Ìý

Ìý$

ÌýÌýÌý 0.54

Ìý

Ìý

ÌýÌýÌýÌýÌýÌýÌýÌý (6,222

)

Ìý

Ìý$

Ìý (0.14

)

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets

Ìý$

ÌýÌýÌýÌýÌýÌý 12,460

Ìý

Ìý

Ìý$

ÌýÌýÌý 0.28

Ìý

Ìý$

ÌýÌýÌýÌýÌýÌýÌý (7,198

)

Ìý

Ìý$

Ìý (0.16

)

Ìý

Ìý$

ÌýÌýÌýÌý 48,940

Ìý

Ìý

Ìý$

ÌýÌýÌý 1.11

Ìý

Ìý$

ÌýÌýÌýÌýÌý (6,382

)

Ìý

Ìý$

Ìý (0.14

)

Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Weighted average diluted shares outstanding

Ìý

ÌýÌý 44,027,031

Ìý

Ìý Ìý Ìý

Ìý

ÌýÌý 44,022,781

Ìý

Ìý Ìý Ìý

Ìý

Ìý44,026,529

Ìý

Ìý Ìý Ìý

Ìý

Ìý 44,021,069

Ìý

Ìý Ìý

(Components may not sum to totals due to rounding)

Thérèse Byars

Corporate Secretary

Email: [email protected]

Telephone: 646-495-7337

Source: FRMO Corp.

Frmo

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385.20M
44.02M
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Asset Management
Financial Services
United States
White Plains