FRMO Corp. (FRMO: OTC Pink Current) | FRMO Corp. Announces Results for Fiscal 2016

OTC

FRMO Corp. Announces Results for Fiscal 2016

Aug 09, 2016

OTC Disclosure News Service

FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today reported its
financial results for the fiscal year 2016, which ended May 31, 2016.

Financial Highlights

FRMO’s 2016 book value was $99.8 million ($2.27 per share on a fully
diluted basis) as of May 31, 2016 compared with $102.2 million ($2.32
per share) as of May 31, 2015. Current assets, comprised primarily of
cash and equivalents and investments available for sale, amounted to
$90.3 million as of May 31, 2016, and $94.5 million as of May 31, 2015.
Total liabilities were $15.2 million as of May 31, 2016, compared to
$16.5 million as of May 31, 2015, the majority of each being deferred
taxes.

FRMO’s 2016 net income for the fiscal year ended May 31, 2016 was
$3,692,697 ($0.09 per share basic and diluted) compared with $4,901,856
($0.11 per share basic and diluted) for the same period in 2015.

In May 2016, FRMO made a small investment in Miami International
Holdings, Inc. (MIH), which is the parent holding company of the MIAX
Options Exchange (MIAX Options), a fully automated electronic options
exchange for trading options on equities and ETFs. MIH is a private
company.

Further details are available in the Company’s Consolidated Financial
Statements for the fiscal year ended May 31, 2016. 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
2016 financial results and the outlook for the future. Board members
will be available to answer questions. The details for the Annual
Meeting are as follows:

Tuesday, August 30, 2016 at 3PM

The Harvard Club

35 West 44th Street

New York, NY

Admission to the FRMO Annual Meeting is limited to shareholders
who owned Common Stock as of the close of business on July 12, 2016 (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 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,

2016

2015

 

Assets

Current Assets:

Cash and cash equivalents

$

49,092

$

44,745

Investments, available for sale, at fair value

39,198

48,008

Other

 

1,994

 

1,743

Total Current Assets

90,284

94,496

Investment in OneChicago LLC

246

Investment in Digital Currency Group, Inc.

76

Investment in CNSX Markets, Inc.

243

Investment in Miami International Holdings, Inc.

250

Investment in The Bermuda Stock Exchange

2,642

2,639

Investment in Horizon Kinetics LLC

10,880

11,200

Participation in Horizon Kinetics LLC revenue stream

10,200

10,200

Other assets

 

139

 

139

 

Total Assets

$

114,960

$

118,674

 

Liabilities and Stockholders’ Equity

Current Liabilities:

Securities sold, not yet purchased

$

4,412

$

1,798

Deferred Tax Liability

5,820

10,286

Other current liabilities

 

183

 

152

Total Current Liabilities

10,415

12,236

Deferred Tax Liability – non-current

 

4,753

 

4,274

Total Liabilities

15,168

16,510

Stockholders’ Equity

 

99,792

 

102,164

 

Total Liabilities and Stockholders’ Equity

$

114,960

$

118,674

Condensed Consolidated Statements of Income

(amounts in thousands, except share data)

 

Three Months Ended

 

Year Ended

May 31,

 

May 31,

May 31,

 

May 31,

2016

 

2015

 

2016

 

2015

(Unaudited)

Revenue:

Consultancy and advisory fees

$

506

$

736

$

2,536

$

3,215

Income from investment partnerships

and limited liability companies

1,121

1,018

2,029

1,779

Income from unconsolidated subsidiary

4

22

3

92

Other

 

1,196

 

 

 

761

 

 

3,921

 

 

 

2,852

Total Revenue

2,827

2,537

8,489

7,938

Total Expenses

 

197

 

 

 

99

 

 

721

 

 

 

578

 

Income from Operations

2,630

2,438

7,768

7,360

Provision for Income Taxes

 

1,730

 

 

 

693

 

 

4,075

 

 

 

2,458

Net Income

900

1,745

3,693

4,902

Less net (loss) attributable to noncontrolling interests

 

(109

)

 

 

 

 

(109

)

 

 

Net Income Attributable to FRMO Corporation

$

1,009

 

 

$

1,745

 

$

3,802

 

 

$

4,902

 

Diluted Earnings per Common Share

$

0.02

$

0.04

$

0.09

$

0.11

 

Weighted Average Common Shares Outstanding

Basic

43,953,155

43,722,595

43,820,150

43,644,295

Diluted

44,002,465

44,117,609

43,872,460

44,050,646

About FRMO Corp.

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

FRMO has 43,953,155 shares of common stock outstanding as of May 31,
2016.

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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The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

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