Market Overview

FRMO Corp. Announces Third 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 third quarter, which ended February 28,
2019 (May Fiscal Year).

Financial Highlights

FRMO's book value as of February 28, 2019 was $171.0 million ($3.89 per
share on a fully diluted basis), including $46.8 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
$115.8 million as of February 28, 2019, and $93.2 million as of May 31,
2018. Total liabilities were $14.6 million as of February 28, 2019,
compared to $13.5 million as of May 31, 2018, the majority of each being
deferred taxes.

FRMO's net (loss) income attributable to the Company for the three
months ended February 28, 2019 was $(686,989) ($(0.02) per share basic
and diluted) compared to $13,053,961 ($0.30 per share) for the quarter
ended February 28, 2018. For the nine months ended February 28, 2019,
net income attributable to the company was $3,108,131 ($0.07 per share
basic and diluted) compared to $18,317,781 ($0.42 per share) for the
same period in the prior year.

For the third quarter of fiscal 2019, comprehensive (loss) income
attributable to the Company was $(686,989) compared to $12,743,418 in
the prior year. For the nine months ended February 28, 2019,
comprehensive income attributable to the Company was $3,108,131 and for
the prior year it was $18,220,191.

FRMO's net income attributable to the Company excluding the effect of
unrealized gain (loss) from equity securities net of taxes for the three
months ended February 28, 2019 was $587,901 ($0.01 per diluted share)
compared to $13,053,961 ($0.30 per share) for the three months ended
February 28, 2018. For the nine months ended February 28, 2019, the
amount was $5,628,657 ($0.13 per share) compared to $18,317,781 ($0.42
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 February, 28, 2019 and May 31, 2018, investments in limited
partnerships and limited liability companies are valued using data
inputs from December 31, 2018 and March 31, 2018, respectively, the
dates of the most currently available information. Management reviews
relevant market and related data to reconcile for the period from
January 1 through February 28. Because of its significance, subsequent
market volatility has been reflected in these condensed consolidated
financial statements.

FRMO's Board of Directors approved a 2019 Stock Repurchase Plan whereby
the company will buy back up to 360,000 shares of its common stock in
the open market, from time to time during 2019, as it sees fit.

Further details are available in the Quarterly Report of the Company's
Interim Condensed Consolidated Financial Statements for the quarter
ended February 28, 2019. 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, April 25, 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 877-260-1479 (domestic toll free) or +1
334-323-0522 (international toll) and entering the following conference
ID: 8638052. A replay will be available from 7:15 p.m. on the day
of the teleconference until Saturday, May 25, 2019. To listen to the
archived call, dial 888-203-1112 (US/Canada) or +1 719-457-0820
(International Toll) and enter conference ID number 8638052.

   
Condensed Consolidated Balance Sheets
(in thousands)
February 28, May 31,
2019 2018
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 52,823 $ 53,617
Equity securities, at fair value 61,501 38,522
Other current assets   1,506   1,095
Total Current Assets 115,830 93,234
Computer equipment, net of accumulated depreciation 96 76

Investment in limited partnerships and other
equity
investments, at fair value

44,166 41,407
Investments in stock exchanges 3,647 3,709
Other investments 314 189
Investment in Horizon Kinetics LLC 11,348 11,624
Participation in Horizon Kinetics LLC revenue stream   10,200   10,200
Total Assets $ 185,601 $ 160,439
 
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 7,000 $ 5,495
Other current liabilities   172   193
Total Current Liabilities 7,172 5,688
Deferred Tax Liability   7,403   7,757
Total Liabilities   14,575   13,445
 
Stockholders' Equity:
Stockholders' Equity Attributable to the Company 124,166 119,411
Noncontrolling interests   46,860   27,583
Total Stockholders' Equity   171,026   146,994
 
Total Liabilities and Stockholders' Equity $ 185,601 $ 160,439
 
       
Condensed Consolidated Statements of Operations
(amounts in thousands, except share data)
Three Months Ended Nine Months Ended
February 28, February 28,
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