FRMO Corp. Announces Second Quarter 2014 Financial Results and Conference Call

FRMO Corp. (the “Company” or “FRMO”) (Pink Sheets:FRMO) today reported its financial results for its 2014 second quarter, which ended November 30, 2013 (May Fiscal Year).

Financial Highlights

FRMO’s 2014 net income for the three months ending November 30, 2013 increased 25% over the same period in the prior year to $1,050,758 from $838,373 ($0.02 per share in each period, basic and diluted). For the six months ended November 30, 2013, constituting the first half of the current fiscal year ending May 31, 2014, net income was up 30% to $2,453,988 ($0.06 per share, basic and diluted) from $1,892,533 ($0.05 per share, basic and diluted) for the same period in the prior year

Shareholders’ Equity increased by $4.65 million to $88.01 million ($2.03 per share) at November 30, 2013 from $83.37 million ($1.93 per share) at May 31, 2013. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $80.8 million as of November 30, 2013 and $74.8 million as of May 31, 2013. Total liabilities were $14.2 million as of November 30, 2013 compared to $12.7 million at the end of fiscal 2013, the majority of each being deferred taxes.

Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended November 30, 2013. 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.

Conference Call

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, of FRMO Corp. will host a conference call on Thursday, February 6, 2014 at 4:15 p.m. ET. The call can be accessed by dialing 1-888-576-4387 (domestic toll free) or 719-325-2354 (international toll) and entering the following conference ID: 7380319. A replay will be available from 6:15 p.m. on the day of the teleconference until March 7, 2014. 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 7380319.

Condensed Consolidated Balance Sheets

        
        
        
      
      
        
        
        
          (in thousands)
        
        
        
      
      
        
        
        
        
        
           
        
        
           
        
        
           
        
        
          

November 30,

     May 31,     

2013

2013

Assets

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Current Assets:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Cash and cash equivalents
        
        
        
        
        
        
        
        
          $
        
        
          26,058
        
        
        
        
        
        
          $
        
        
          26,525
        
        
        
      
      
        
        
        
          Investments, available for sale, at fair value
        
        
        
        
        
        
        
        
        
        
          53,216
        
        
        
        
        
        
        
        
          47,306
        
        
        
      
      
        
        
        
          Other
        
        
        
        
        
        
        
        
           
        
        
          1,509
        
        
        
        
        
        
           
        
        
          1,012
        
        
        
      
      
        
        
        
          Total Current Assets
        
        
        
        
        
        
        
        
        
        
          80,783
        
        
        
        
        
        
        
        
          74,843
        
        
        
      
      
        
        
        
          Investment in unconsolidated limited liability company
        
        
        
        
        
        
        
        
        
        
          11,192
        
        
        
        
        
        
        
        
          10,974
        
        
        
      
      
        
        
        
          Participation in Horizon Kinetics revenue stream
        
        
        
        
        
        
        
        
           
        
        
          10,200
        
        
        
        
        
        
           
        
        
          10,200
        
        
        
      
      
        
        
        
          

Total Assets

        
        
        
        
        
        
        
        
          $
        
        
          102,175
        
        
        
        
        
        
          $
        
        
          96,017
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          

Liabilities and Stockholders' Equity

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Current Liabilities:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Deferred Tax Liability
        
        
        
        
        
        
        
        
          $
        
        
          7,802
        
        
        
        
        
        
          $
        
        
          5,852
        
        
        
      
      
        
        
        
          Redeemable preferred stock
        
        
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          50
        
        
        
      
      
        
        
        
          Other current liabilities
        
        
        
        
        
        
        
        
           
        
        
          2,122
        
        
        
        
        
        
           
        
        
          2,510
        
        
        
      
      
        
        
        
          Total Current Liabilities
        
        
        
        
        
        
        
        
        
        
          9,924
        
        
        
        
        
        
        
        
          8,412
        
        
        
      
      
        
        
        
          Deferred Tax Liability - non-current
        
        
        
        
        
        
        
        
           
        
        
          4,237
        
        
        
        
        
        
           
        
        
          4,238
        
        
        
      
      
        
        
        
          Total Liabilities
        
        
        
        
        
        
        
        
        
        
          14,161
        
        
        
        
        
        
        
        
          12,650
        
        
        
      
      
        
        
        
          Stockholders' Equity
        
        
        
        
        
        
        
        
           
        
        
          88,014
        
        
        
        
        
        
           
        
        
          83,367
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          

Total Liabilities and Stockholders' Equity

        
        
        
        
        
        
        
        
          $
        
        
          102,175
        
        
        
        
        
        
          $
        
        
          96,017
        
        
        
      
    
    
      
        
           
        
        
        
        
        
      
      
        
        
        
        
        
           
        
      
      
        
        
        
          

Condensed Consolidated Statements of Income

        
        
        
      
      
        
        
        
          (amounts in thousands, except share data)
        
        
        
      
      
        
        
        
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
          

Three Months Ended

Six Months Ended

November 30,

November 30,

November 30,

November 30,

2013

2012

2013

2012

(Unaudited)

Revenue:

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Consultancy and advisory fees
        
        
        
        
        
        
        
        
          $
        
        
          928
        
        
        
        
          $
        
        
          508
        
        
        
        
        
        
          $
        
        
          1,607
        
        
        
        
          $
        
        
          1,050
        
        
        
      
      
        
        
        
          

Income from investment partnerships and limited liability companies

        
        
        
        
        
        
        
        
        
        
          218
        
        
        
        
        
        
          505
        
        
        
        
        
        
        
        
          1,475
        
        
        
        
        
        
          955
        
        
        
      
      
        
        
        
          Other
        
        
        
        
        
        
        
        
           
        
        
          460
        
        
        
        
           
        
        
          436
        
        
        
        
        
        
           
        
        
          906
        
        
        
        
           
        
        
          1,341
        
        
        
      
      
        
        
        
          Total Revenue
        
        
        
        
        
        
        
        
        
        
          1,606
        
        
        
        
        
        
          1,449
        
        
        
        
        
        
        
        
          3,988
        
        
        
        
        
        
          3,346
        
        
        
      
      
        
        
        
          

Total Expenses

        
        
        
        
        
        
        
        
           
        
        
          151
        
        
        
        
           
        
        
          197
        
        
        
        
        
        
           
        
        
          364
        
        
        
        
           
        
        
          442
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Income from Operations
        
        
        
        
        
        
        
        
        
        
          1,455
        
        
        
        
        
        
          1,252
        
        
        
        
        
        
        
        
          3,624
        
        
        
        
        
        
          2,904
        
        
        
      
      
        
        
        
          Provision for Income Taxes
        
        
        
        
        
        
        
        
           
        
        
          404
        
        
        
        
           
        
        
          414
        
        
        
        
        
        
           
        
        
          1,170
        
        
        
        
           
        
        
          1,011
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          

Net Income

        
        
        
        
        
        
        
        
          $
        
        
          1,051
        
        
        
        
          $
        
        
          838
        
        
        
        
        
        
          $
        
        
          2,454
        
        
        
        
          $
        
        
          1,893
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Basic and Diluted Earnings per Common Share
        
        
        
        
        
        
        
        
          $
        
        
          0.02
        
        
        
        
          $
        
        
          0.02
        
        
        
        
        
        
          $
        
        
          0.06
        
        
        
        
          $
        
        
          0.05
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          Weighted Average Common Shares Outstanding
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
        
        
          Basic
        
        
        
        
        
        
        
        
        
        
          43,272,412
        
        
        
        
        
        
          39,138,154
        
        
        
        
        
        
        
        
          43,264,540
        
        
        
        
        
        
          39,138,154
        
        
        
      
      
        
        
        
          Diluted
        
        
        
        
        
        
        
        
        
        
          43,693,129
        
        
        
        
        
        
          39,188,154
        
        
        
        
        
        
        
        
          43,658,657
        
        
        
        
        
        
          39,188,154
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

About FRMO Corp.

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

FRMO has 43,311,972 shares of common stock outstanding.

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.

FRMO Corp.Thérèse Byars, 646-495-7337Corporate [e-mail]