FRMO Corp. Announces Fiscal 2024 Results and Annual Meeting
Financial Highlights
FRMO’s total book value as of
Current assets, comprised primarily of cash and equivalents, equity securities, and digital assets, amounted to
Annual net income (loss) attributable to the Company in the fiscal year ended
For the three months ended
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
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
As of
Further details are available in the Company’s Consolidated Financial Statements for the fiscal year ended
Annual Meeting
For admission to the physical Annual Meeting at
No cameras, recording equipment, electronic devices, large bags, briefcases, or packages will be permitted in the Annual Meeting. Dress code for the
| Condensed Consolidated Balance Sheets | |||||
| (in thousands) | |||||
|
|
|
||||
|
2024 |
|
2023 |
|||
| Assets | |||||
| Current Assets: | |||||
| Cash and cash equivalents |
$ |
39,190 |
$ |
38,077 |
|
| Equity securities, at fair value |
|
221,682 |
|
155,512 |
|
| Digital assets, at fair value |
|
10,979 |
|
4,217 |
|
| Other current assets |
|
4,252 |
|
3,539 |
|
| Total Current Assets |
|
276,102 |
|
201,346 |
|
| Investment in limited partnerships and other | |||||
| equity investments, at fair value |
|
127,579 |
|
70,656 |
|
| Investments in securities exchanges |
|
6,463 |
|
4,869 |
|
| Other assets |
|
1,609 |
|
1,815 |
|
| Investment in |
|
17,205 |
|
14,608 |
|
| Participation in |
|
10,200 |
|
10,200 |
|
| Total Assets |
$ |
439,159 |
$ |
303,494 |
|
| Liabilities and Stockholders' Equity | |||||
| Current Liabilities: | |||||
| Securities sold, not yet purchased |
$ |
951 |
$ |
2,353 |
|
| Other current liabilities |
|
1,258 |
|
354 |
|
| Total Current Liabilities |
|
2,209 |
|
2,707 |
|
| Deferred Tax Liability |
|
33,668 |
|
16,004 |
|
| Mortgage payable |
|
- |
|
669 |
|
| Total Liabilities |
|
35,877 |
|
19,379 |
|
| Stockholders' Equity: | |||||
| Stockholders' Equity Attributable to the Company |
|
242,137 |
|
169,283 |
|
| Noncontrolling interests |
|
161,145 |
|
114,832 |
|
| Total Stockholders' Equity |
|
403,282 |
|
284,114 |
|
| Total Liabilities and Stockholders' Equity |
$ |
439,159 |
$ |
303,494 |
|
(Components may not sum to totals due to rounding)
| Condensed Consolidated Statements of Income | |||||||||||||
| (amounts in thousands, except share data) | |||||||||||||
| Three Months Ended | Years Ended | ||||||||||||
|
|
|
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
|
| (Unaudited) | |||||||||||||
| Revenue: | |||||||||||||
| Fees |
$ |
709 |
$ |
737 |
|
$ |
2,715 |
$ |
3,222 |
|
|||
| Equity earnings (losses) from limited partnerships | |||||||||||||
| and limited liability companies |
|
2,188 |
|
(685 |
) |
|
5,044 |
|
1,614 |
|
|||
| Unrealized gains (losses) from investments |
|
12,410 |
|
(12,614 |
) |
|
53,935 |
# |
|
(13,661 |
) |
||
| Other |
|
1,193 |
|
402 |
|
|
4,275 |
|
4,046 |
|
|||
| Total revenue before unrealized gains (losses) from equity securities | |||||||||||||
| and digital assets |
|
16,500 |
|
(12,159 |
) |
|
65,969 |
# |
|
(4,779 |
) |
||
| Unrealized gains (losses) from equity securities |
|
32,655 |
|
(52,947 |
) |
|
66,186 |
|
(27,918 |
) |
|||
| Unrealized gains (losses) from digital assets |
|
1,001 |
|
573 |
|
|
6,272 |
|
(450 |
) |
|||
| Total Revenue |
|
50,156 |
|
(64,533 |
) |
|
138,427 |
|
(33,147 |
) |
|||
| Total Expenses |
|
332 |
|
343 |
|
|
1,556 |
|
1,837 |
|
|||
| Income (Loss) from Operations before Provision for (Benefit from) Income Taxes |
|
49,824 |
|
(64,877 |
) |
|
136,871 |
|
(34,984 |
) |
|||
| Provision for (Benefit from) Income Taxes |
|
4,742 |
|
(6,075 |
) |
|
18,420 |
|
(3,222 |
) |
|||
| Net Income (Loss) |
|
45,082 |
|
(58,802 |
) |
|
118,451 |
|
(31,762 |
) |
|||
| Less net income (loss) attributable to noncontrolling interests |
|
22,545 |
|
(38,751 |
) |
|
45,893 |
|
(19,158 |
) |
|||
| Net Income (Loss) Attributable to FRMO Corporation |
$ |
22,538 |
$ |
(20,051 |
) |
$ |
72,559 |
$ |
(12,604 |
) |
|||
| Diluted Net Income (Loss) per Common Share |
$ |
0.51 |
$ |
(0.46 |
) |
$ |
1.65 |
$ |
(0.29 |
) |
|||
| Weighted Average Common Shares Outstanding | |||||||||||||
| Basic |
|
44,022,781 |
|
44,022,781 |
|
|
44,022,781 |
|
44,021,069 |
|
|||
| Diluted |
|
44,027,031 |
|
44,022,781 |
|
|
44,026,529 |
|
44,021,069 |
|
|||
(Components may not sum to totals due to rounding)
About
FRMO had 44,022,781 shares of common stock outstanding as of
For more information, visit our website 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.
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:
| Three Months Ended | Three Months Ended | Years Ended | Years Ended | ||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
| Amount | Diluted earnings per common share | Amount | Diluted earnings per common share | Amount | Diluted earnings per common share | Amount | Diluted earnings per common share | ||||||||||||||||||||||
| (000’s except per common share amounts and percentages) | |||||||||||||||||||||||||||||
|
Net Income (Loss) Attributable to the Company Excluding the Effect of Unrealized Gain (Loss) from |
|||||||||||||||||||||||||||||
| Net income (loss) attributable to the Company |
$ |
22,538 |
|
$ |
0.51 |
$ |
(20,051 |
) |
$ |
(0.46 |
) |
$ |
72,559 |
|
$ |
1.65 |
$ |
(12,604 |
) |
$ |
(0.29 |
) |
|||||||
| Unrealized gain (loss) from equity securities and digital assets |
|
33,656 |
|
|
(52,374 |
) |
|
72,458 |
|
|
(28,368 |
) |
|||||||||||||||||
| Unrealized gain (loss) from equity securities and digital assets attributable to noncontrolling interests |
|
22,191 |
|
|
(39,059 |
) |
|
44,532 |
|
|
(21,907 |
) |
|||||||||||||||||
| Unrealized gain (loss) from equity securities and digital assets attributable to the Company |
|
11,465 |
|
|
(13,315 |
) |
|
27,926 |
|
|
(6,461 |
) |
|||||||||||||||||
| Tax (provision) benefit on unrealized gain (loss) from equity securities and digital assets attributable to the company |
|
(1,387 |
) |
|
463 |
|
|
(4,308 |
) |
|
240 |
|
|||||||||||||||||
| Unrealized gain (loss) from equity securities and digital assets attributable to the Company, net of taxes |
|
10,078 |
|
$ |
0.23 |
|
(12,853 |
) |
$ |
(0.29 |
) |
|
23,618 |
|
$ |
0.54 |
|
(6,222 |
) |
$ |
(0.14 |
) |
|||||||
| Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets |
$ |
12,460 |
|
$ |
0.28 |
$ |
(7,198 |
) |
$ |
(0.16 |
) |
$ |
48,940 |
|
$ |
1.11 |
$ |
(6,382 |
) |
$ |
(0.14 |
) |
|||||||
| Weighted average diluted shares outstanding |
|
44,027,031 |
|
|
44,022,781 |
|
|
44,026,529 |
|
|
44,021,069 |
|
|||||||||||||||||
(Components may not sum to totals due to rounding)
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815954690/en/
Corporate Secretary
Email: tbyars@frmocorp.com
Telephone: 646-495-7337
www.frmocorp.com
Source:
