FRMO Corp. Announces Results for Fiscal 2017

WHITE PLAINS, N.Y.--()--FRMO Corp. (the “Company” or “FRMO”) (OTC Pink:FRMO) today reported its financial results for the fiscal year 2017, which ended May 31, 2017.

Financial Highlights

FRMO’s 2017 book value as of May 31, 2017 was $114.2 million ($2.60 per share on a fully diluted basis), including $10.9 million of non-controlling interests. The figure from the prior fiscal year-end as of May 31, 2016 was $102.0 million ($2.33 per share) including $3.7 million of non-controlling interests. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $71.3 million as of May 31, 2017, and $62.8 million as of May 31, 2016. Total liabilities were $13.1 million as of May 31, 2017, compared to $12.9 million as of May 31, 2016, the majority of each being deferred taxes.

FRMO’s 2017 net income (loss) for the fiscal year ended May 31, 2017 was $3,493,948 ($0.08 per share basic and diluted), compared to a loss of $(780,011) ($(0.02) per share basic and diluted) for the 2016 fiscal year. Income from operations for the 2017 fiscal year ended May 31, 2017 was $6,915,986, compared to $993,913 for the prior year. Comprehensive income (loss) attributable to the Company for the same periods was $4,335,956 up from a loss of $(7,020,898). The latter figure included unrealized investment losses.

Further details are available in the Company’s Consolidated Financial Statements for the fiscal year ended May 31, 2017. These statements have been filed on the OTC Markets Group Disclosure and News Services (DNS), which may be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents are also available on the FRMO web site at www.frmocorp.com.

Annual Meeting Information

The Chairman, President, and Board of Directors of FRMO Corp. cordially invite shareholders to attend the Company’s Annual Meeting of Shareholders at which the Chairman and President will review the Fiscal 2017 financial results and the outlook for the future. Board members will be available to answer questions. The Annual Meeting will be held on:

Friday, September 15, 2017 at 3PM
The Harvard Club of New York City
35 West 44th Street
New York, NY 10036

Admission to the FRMO Annual Meeting is limited to shareholders who owned Common Stock as of the close of business on July 26, 2017 (the record date) or their duly appointed proxies, and one guest. Proof of ownership of FRMO stock and valid government-issued photo identification must be presented in order to be admitted to the Annual Meeting. Each guest must also present a valid government-issued photo identification. If your shares are held in the name of a bank, broker, or other holder of record, you must bring a brokerage statement or other proof of ownership (or the equivalent proof of ownership as of the close of business on the record date of the stockholder who granted you the proxy). If your shares are held in certificate form, ownership will be verified by consulting the list of Registered Shareholders as of the record date. Registration will begin at 2:00 p.m. 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,
2017 2016
 
Assets
Current Assets:
Cash and cash equivalents $ 51,125 $ 49,092
Investments, available for sale, at fair value 18,933 11,727
Other   1,219   1,995
Total Current Assets 71,277 62,814
Investment in South LaSalle Partners, LP 5,743 4,990
Investment in Winland Electronics, Inc. 739 1,125
Investments in limited partnerships 24,833 21,355
Investment in OneChicago LLC 246 246
Investment in Digital Currency Group Inc. 76 76
Investment in CNSX Markets, Inc. 243 243
Investment in Miami International Holdings, Inc. 250 250
Investment in National Stock Exchange Holdings, Inc. 249 -
Investment in The Bermuda Stock Exchange 2,704 2,642
Investment in Horizon Kinetics LLC 10,773 10,880
Participation in Horizon Kinetics LLC revenue stream 10,200 10,200
Other assets   -   139
Total Assets $ 127,333 $ 114,960
 
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 4,131 $ 4,412
Other current liabilities   140   183
Total Current Liabilities 4,271 4,595
Deferred Tax Liability   8,842   8,319
Total Liabilities 13,113 12,914
Stockholders' Equity   114,220   102,046
 
Total Liabilities and Stockholders' Equity $ 127,333 $ 114,960
 
 
Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
 
      Three Months Ended     Year Ended
May 31,     May 31, May 31,     May 31,
2017     2016     2017     2016
(Unaudited)
Revenue:
Consultancy and advisory fees $ 542 $ 506 $ 1,994 $ 2,536
Income (loss) from investment partnerships
and limited liability companies 76 1,121 (21 ) 2,029
Unrealized gain (loss) from investments
subject to net asset valuation (391 ) (1,664 ) 4,161 (6,774 )
Income from unconsolidated subsidiary 2 4 62 3
Other   232         1,196         1,424         3,921  
Total Revenue 461 1,163 7,620 1,715
Total Expenses   172         196         704         721  
 
Income from Operations 289 967 6,916 994
Provision for Income Taxes   528         1,275         3,261         1,883  
Net Income (239 ) (308 ) 3,655 (889 )
Less net income (loss) attributable to noncontrolling interests   77         (109 )       161         (109 )
Net Income (Loss) Attributable to FRMO Corporation $ (316 )     $ (199 )     $ 3,494       $ (780 )
 
Diluted Net Income per Common Share $ (0.01 ) $ (0.00 ) $ 0.08 $ (0.02 )
 
Weighted Average Common Shares Outstanding
Basic 43,953,155 43,953,155 43,953,155 43,820,150
Diluted 43,998,274 44,002,465 44,000,015 43,872,460
 

About FRMO Corp.

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

FRMO had 43,953,155 shares of common stock outstanding as of May 31, 2017.

For more information, visit our Web site at www.frmocorp.com.

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 www.frmocorp.com and on www.otcmarkets.com/stock/FRMO/filings.

Contacts

FRMO Corp.
Thérèse Byars, 646-495-7337
Corporate Secretary
tbyars@frmocorp.com
www.frmocorp.com

Release Summary

FRMO Corp. reported its financial results today for the 2017 fiscal year ended May 31, 2017.

Contacts

FRMO Corp.
Thérèse Byars, 646-495-7337
Corporate Secretary
tbyars@frmocorp.com
www.frmocorp.com