Market Overview

FRMO Corp. Announces Second Quarter 2019 Financial Results and Conference Call

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FRMO Corp. (the "Company" or "FRMO") (OTC:FRMO) today reported its
financial results for the 2019 second quarter, which ended November 30,
2018 (May Fiscal Year).

Financial Highlights

FRMO's book value as of November 30, 2018 was $175.5 million ($3.99 per
share on a fully diluted basis), including $51.3 million of
non-controlling interests. The figure from the prior fiscal year-end as
of May 31, 2018 was $146.9 million ($3.34 per share), including $27.6
million of non-controlling interests. Current assets, comprised
primarily of cash and equivalents and equity securities, amounted to
$118.0 million as of November 30, 2018, and $93.2 million as of May 31,
2018. Total liabilities were $16.5 million as of November 30, 2018,
compared to $13.5 million as of May 31, 2018, the majority of each being
deferred taxes.

FRMO's net income attributable to the Company for the three months ended
November 30, 2018 was $583,997 ($0.01 per share basic and diluted)
compared to $3,076,381 ($0.07 per share) for the quarter ended November
30, 2017. For the six months ended November 30, 2018, net income was
$3,795,120 ($0.09 per share basic and diluted) compared to $5,263,820
($0.12 per share) for the same period in the prior year.

Income from operations was $10,266,021 for the second quarter of fiscal
2019, compared to $5,041,929 for the same period in the prior year. For
the six months ended November 30, 2018, income from operations was
$24,839,530 compared to $8,257,412 in the prior year. For the second
quarter of fiscal 2019, comprehensive income attributable to the Company
was $583,997 compared to $3,489,279 in the prior year. For the six
months ended November 30, 2018, comprehensive income attributable to the
Company was $3,795,120 and for the prior year it was $5,476,773.

FRMO's net income attributable to the Company excluding the effect of
unrealized gains from equity securities net of taxes for the three
months ended November 30, 2018 was $1,824,760 ($0.04 per diluted share)
compared to $3,076,381 ($0.07 per share) for the three months ended
November 30, 2017. For the six months ended November 30, 2018, the
amount was $5,040,756 ($0.11 per share) compared to $5,263,820 ($0.12
per share) for the same period in the prior year. Net income
attributable to the Company excluding the effect of unrealized gains
from equity securities 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.

As of November 30, 2018 and May 31, 2018, investments in limited
partnerships and limited liability companies are valued using data
inputs from September 30, 2018 and March 31, 2018, respectively, the
dates of the most currently available information.

Further details are available in the Quarterly Report of the Company's
Interim Condensed Consolidated Financial Statements for the quarter
ended November 30, 2018. 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 website at www.frmocorp.com.

Conference Call
Murray Stahl, Chairman and CEO, and Steven
Bregman, President and CFO, will host a conference call on Thursday,
January 17, 2019 at 4:15 p.m. ET. 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 1-855-710-4181 (domestic toll free) or
334-323-0516 (international toll) and entering the following conference
ID: 5792922. A replay will be available from 7:15 p.m. on the day of the
teleconference until Thursday, November 15, 2018. To listen to the
archived call, dial 1-888-203-1112 (domestic toll free) or 719-457-0820
(international toll) and enter conference ID number 5792922.

_________________________________________________________________________________

         
Condensed Consolidated Balance Sheets
(in thousands)
November 30, May 31,
2018 2018
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 51,384 $ 53,617
Equity securities, at fair value 65,667 38,522
Other current assets   960   1,095
Total Current Assets 118,011 93,234
Computer equipment, net of accumulated depreciation 102 76
Investment in limited partnerships and other
equity investments, at fair value 47,613 41,407
Investments in stock exchanges 3,577 3,709
Other investments 321 189
Investment in Horizon Kinetics LLC 12,138 11,624
Participation in Horizon Kinetics LLC revenue stream   10,200   10,200
Total Assets $ 191,962 $ 160,439
 
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 7,619 $ 5,495
Other current liabilities   214   193
Total Current Liabilities 7,833 5,688
Deferred Tax Liability   8,613   7,757
Total Liabilities   16,446   13,445
 
Stockholders' Equity:
Stockholders' Equity Attributable to the Company 124,237 119,411
Noncontrolling interests
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