Market Overview

FRMO Corp. Announces Third Quarter 2018 Financial Results and Conference Call


FRMO Corp. (the "Company" or "FRMO") (OTC:FRMO) today reported its
financial results for the 2018 third quarter, which ended February 28,
2018 (May Fiscal Year).

Financial Highlights

FRMO's 2018 book value as of February 28, 2018 was $146.1 million ($3.32
per share on a fully diluted basis), including $23.6 million of
non-controlling interests. The prior fiscal year-end at May 31, 2017
figure was $114.2 million ($ 2.60 per share), which includes $10.9
million of non-controlling interests. Current assets, comprised
primarily of cash and equivalents and investments available for sale,
amounted to $88.5 million as of February 28, 2018, and $71.3 million as
of May 31, 2017. Total liabilities were $15.8 million as of February 28,
2018, compared to $13.1 million as of May 31, 2017, the majority of each
being deferred taxes. As a result of the new tax act, the Company
reduced its previously recorded deferred tax liability by $4,785,607.

FRMO's net income attributable to the Company for the three months ended
February 28, 2018 was $13,053,961 ($0.30 per share basic and diluted)
compared to $1,825,507 ($0.04 per share basic and diluted) for the same
three month period in 2017. Income from operations for the third quarter
of fiscal 2018 was $12,579,454, compared to $3,366,410, for the same
period in the prior year. Comprehensive income for the same periods was
$12,743,418 up from $1,598,588.

For the nine months ended February 28, 2018, net income attributable to
the Company was $18,317,781 ($0.42 per share basic and diluted) compared
to $3,810,529 ($0.09 per share basic and diluted) in the prior year.
Income from operations was $20,836,866 up from $6,627,290 for the same
period in 2017. Comprehensive income for the same periods was
$18,220,191 up from $5,191,158.

As of February 28, 2018 and May 31, 2017, investments in limited
partnerships and limited liability companies are valued using data
inputs from December 31, 2017 and March 31, 2017, respectively, the
dates of the most current available information.

Further details are available in the Quarterly Report of the Company's
Consolidated Financial Statements for the quarter ended February 28,
2018. 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 web site at

Conference Call

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO,
will host a conference call on Tuesday, April 17, 2018 at 4:15 p.m.
. Only questions submitted to
before 1:00 p.m. on the day of the call will be considered.
The call
can be accessed by dialing 877-419-6591 (domestic toll free) or
719-325-2454 (international toll) and entering the following conference
ID: 5770088. A replay will be available from 7:15 p.m. on the day of the
teleconference until 7:15 p.m. on May 17, 2018. 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

Condensed Consolidated Balance Sheets
(in thousands)
February 28,

   May 31,   

2018 2017
Current Assets:
Cash and cash equivalents $ 52,635 $ 51,125
Bond and equity securities, available for sale, at fair value 33,728 18,933
Other current assets   2,156   1,219
Total Current Assets 88,519 71,277
Computer equipment, net of accumulated depreciation 83 -
Investment in South LaSalle Partners, LP 6,223 5,743
Investment in Winland Holdings Corporation, Inc. 773 739
Investments in limited partnerships 40,325 24,833
Investment in The Bermuda Stock Exchange 2,718 2,704
Investments in other stock exchanges 988 988
Investment in Digital Currency Group Inc. 76 76
Investment in HK Cryptocurrency Mining LLC 69 -
Investment in Horizon Kinetics LLC 11,997 10,773
Participation in Horizon Kinetics LLC revenue stream   10,200   10,200
Total Assets $ 161,971 $ 127,333
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 5,393 $ 4,131
Other current liabilities   1,469   140
Total Current Liabilities 6,862 4,271
Deferred Tax Liability   8,961   8,842
Total Liabilities 15,823 13,113
Stockholders' Equity   146,148   114,220
Total Liabilities and Stockholders' Equity $ 161,971 $ 127,333
Condensed Consolidated Statements of Income
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