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FRMO Corp. Announces Third Quarter 2017 Financial Results and Conference Call

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--

FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today reported its financial results for the 2017 third quarter, which ended February 28, 2017 (May Fiscal Year).

Financial Highlights

FRMO’s 2017 book value as of February 28, 2017 was $111.4 million ($2.53 per share on a fully diluted basis), including $9.2 million of non-controlling interests. The prior fiscal year-end at May 31, 2016 figure was $99.8 million ($2.27 per share), which includes $3.7 million of non-controlling interests. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $101.6 million as of February 28, 2017, and $89.2 million as of May 31, 2016. Total liabilities were $15.8 million as of February 28, 2017, compared to $15.2 million as of May 31, 2016, the majority of each being deferred taxes.

FRMO’s net income for the three months ended February 28, 2017 was $310,176 ($0.01 per share basic and diluted) compared to $189,395 ($0.00 per share basic and diluted) for the same three month period in 2016. Income from operations for the third quarter of fiscal 2017 was $817,295, compared to $407,546, for the same period in the prior year. Comprehensive income (loss) for the same periods was $1,598,588 up from ($5,240,692). The latter figure included unrealized investment losses.

For the nine months ended February 28, 2017, net income was $1,145,030 ($0.03 per share basic and diluted) compared to $2,792,308 ($0.06 per share basic and diluted) in the prior year. Income from operations was $2,075,396 down from $5,138,061 for the same period in 2016. Comprehensive income (loss) for the same periods was $5,191,158 up from ($9,856,984).

Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended February 28, 2017. These statements have been filed on the OTC Markets Group Disclosure and News Services, 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.

Conference Call

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, will host a conference call on Tuesday, April 18, 2017 at 4:15 p.m. EST. Only questions submitted to info@frmocorp.com before 1:00 p.m. on the day of the call will be considered. The call can be accessed by dialing 1-877-741-4244 (domestic toll free) or 1-719-325-4879 (international toll) and entering the following conference ID: 7126873. A replay will be available from 7:15 p.m. on the day of the teleconference until 7:15 p.m. on May 18, 2017. To listen to the archived call, dial 1-888-203-1112 (domestic toll free) or 1-719-457-0820 (international toll), and enter conference ID number 7126873.

Condensed Consolidated Balance Sheets          
(in thousands)
February 28, May 31,
2017 2016

(Unaudited)

Assets
Current Assets:
Cash and cash equivalents $ 50,246 $ 49,092
Investments, available for sale, at fair value 49,502 38,073
Other   1,842   1,994
Total Current Assets 101,590 89,159
Investment in Winland Electronics, Inc. 921 1,125
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 2,702 2,642
Investment in Horizon Kinetics LLC 10,757 10,880
Participation in Horizon Kinetics LLC revenue stream 10,200 10,200
Other assets   -   139
Total Assets $ 127,234 $ 114,960
 
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 3,757 $ 4,412
Other current liabilities   174   183
Total Current Liabilities 3,931 4,595
Deferred Tax Liability   11,883   10,573
Total Liabilities 15,814 15,168
Stockholders' Equity   111,420   99,792
 
Total Liabilities and Stockholders' Equity $ 127,234 $ 114,960
 
 
Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
 
      Three Months Ended     Nine Months Ended
February 28,     February 29, February 28,     February 29,
2017     2016     2017     2016
(Unaudited) (Unaudited)
Revenue:
Consultancy and advisory fees $ 498 $ 763 $ 1,452 $ 2,030
Income from investment partnerships
and limited liability companies (421) (1,771) (97) 908
Income from unconsolidated subsidiary (8) (30) 60 (1)
Other   892       1,614       1,192       2,726
Total Revenue 961 576 2,607 5,663
Total Expenses   144       169       531       525
 
Income from Operations 817 407 2,076 5,138
Provision for Income Taxes   504       218       847       2,346
Net Income 313 189 1,229 2,792
Less net (loss) attributable to noncontrolling interests   3       -       84       -

Net Income Attributable to the Company

$ 310     $ 189     $ 1,145     $ 2,792
 
Diluted Net Income per Common Share $ 0.01 $ 0.00 $ 0.03 $ 0.06
 
Weighted Average Common Shares Outstanding
Basic 43,953,155 43,865,463 43,953,155 43,775,491
Diluted 44,002,116 43,914,548 44,000,569 43,828,423
 

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 February 28, 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.

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