WHITE PLAINS, N.Y.--(BUSINESS WIRE)--October 15, 2025--
FRMO Corp. (the "Company" or "FRMO") (OTC Pink: FRMO) reported its financial results for the fiscal year 2026 first quarter ended August 31, 2025.
Financial Highlights
FRMO's total book value as of August 31, 2025 was $590.4 million. Excluding the non-controlling interests, equity attributable to shareholders was $337.2 million ($7.66 per share). This compares with total book value at the prior fiscal year end on May 31, 2025 of $651.2 million. Excluding the non-controlling interests, equity attributable to shareholders was $353.0 million ($8.02 per share) at May 31, 2025.
Current assets, comprised primarily of cash and equivalents and equity securities, amounted to $409.4 million as of August 31, 2025, and $471.8 million as of May 31, 2025. Total liabilities were $58.7 million as of August 31, 2025, and $62.2 million as of May 31, 2025, comprised primarily of securities sold, not yet purchased, and deferred taxes.
FRMO's net loss attributable to the Company for the quarter ended August 31, 2025 was $15.9 million ($0.36 per diluted share), compared to net income of $34.5 million ($0.78 per diluted share) quarter ended August 31, 2024. The equity security investment that accounts for the net loss is identified as Investment A in Note 4 of the Interim Condensed Consolidated Financial Statements under Investment Concentration.
Net loss attributable to the Company excluding the effect of unrealized loss from equity securities and digital assets net of taxes for the three months ended August 31, 2025 was $3.9 million ($0.09 per diluted share) compared to net income attributable to the Company excluding the effect of unrealized gain from equity securities and digital assets net of taxes of $11.6 million ($0.26 per diluted share) for the three months ended August 31, 2024.
Net income or loss attributable to the Company excluding the effect of unrealized gain or 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 August 31, 2025. The market value of several securities and digital assets might have changed substantially since that date. We look forward to finding new ways to expand our digital assets mining operations.
The interim condensed consolidated financial statements include the accounts of FRMO Corporation and its controlled subsidiaries (collectively referred to as the "Company"). As of August 31, 2025 and May 31, 2025, the Company held a 21.80% and 21.82% equity interest in Horizon Kinetics Hard Assets LLC ("HKHA"), a company formed by Horizon Kinetics Holding Corporation ("HKHC") or ("Horizon") and certain officers, principal stockholders and directors of the Company. The Company owns 4.42% of HKHC and earns substantially all of its advisory fees from HKHC (see Note 4 -- Investments, Investments under the Equity Method of Accounting). Due to the common control and ownership between HKHA and the Company's principal stockholders and directors, HKHA has been consolidated within the Company's financial statements. The noncontrolling interest of 78.20% and 78.18% in HKHA has been eliminated from results of operations for the periods ended August 31, 2025 and August 31, 2024. Total stockholders' equity includes, as a separate item, the amount attributable to the noncontrolling interests.
Further details are available in the Company's Condensed Consolidated Financial Statements for the three months ended August 31, 2025 and August 31, 2024. 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, CEO, and Steven Bregman, President and CFO, will host a conference call on Monday, October 20, 2025 at 4:15 p.m. Eastern Time. Only questions submitted to info@frmocorp.com before 1:00 p.m. on the day of the call will be considered. You may register for the conference call by clicking on the following link:
Please register for FRMO 1Q2026 Quarterly Conference Call on Oct 20, 2025 4:15 PM EDT at:
https://attendee.gotowebinar.com/register/7914408292465381723
After registering, you will receive a confirmation email containing information about joining the webinar.
An audio replay link will be available on the FRMO website until the summary transcript is posted.
Condensed Consolidated Balance Sheets
(in thousands)
August 31, May 31,
2025 2025
------------- --------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 45,021 $ 43,864
Equity securities, at fair value 345,510 408,553
Digital assets, at fair value 17,663 16,949
Other current assets 1,184 2,441
--------- -------
Total Current Assets 409,377 471,807
Investment in limited partnerships and other
equity investments, at fair value 195,385 201,529
Investments in securities exchanges 12,520 7,947
Other assets 1,688 1,483
Investment in Horizon Kinetics Holding
Corporation 19,929 20,439
Horizon Kinetics Holding Corporation royalty
participation 10,200 10,200
--------- -------
Total Assets $ 649,100 $713,404
========= =======
Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased $ 941 $ 1,307
Other current liabilities 1,301 268
--------- -------
Total Current Liabilities 2,242 1,575
Deferred Tax Liability 55,874 60,017
Mortgage payable 616 622
--------- -------
Total Liabilities 58,731 62,214
--------- -------
Stockholders' Equity:
Stockholders' Equity Attributable to the
Company 337,156 352,985
Noncontrolling interests 253,213 298,205
--------- -------
Total Stockholders' Equity 590,369 651,190
--------- -------
Total Liabilities and Stockholders' Equity $ 649,100 $713,404
========= =======
(Components may not sum to totals due to rounding)
Condensed Consolidated Statements of
Income
(amounts in thousands, except share
data)
Three Months Ended
August 31, August 31,
2025 2024
------------ --------------
(Unaudited) (Unaudited)
Revenue:
Fees $ 923 $ 737
Equity earnings from limited
partnerships
and limited liability companies 463 2,556
Unrealized (losses) gains from
investments (7,484) 16,399
Other 1,153 4,457
---------- ----------
Total revenue before unrealized
(losses) gains from equity
securities
and digital assets (4,945) 24,150
Unrealized (losses) gains from
equity securities (58,061) 88,435
Unrealized gains from digital
assets 694 (1,422)
---------- ----------
Total Revenue (62,313) 111,163
Total Expenses 372 418
---------- ----------
(Loss) Income from Operations before
Provision for Income Taxes (62,684) 110,744
(Benefit from) Provision for Income
Taxes (1,764) 10,489
---------- ----------
Net (Loss) Income (60,921) 100,255
Less net (loss) income attributable to
noncontrolling interests (45,063) 65,769
---------- ----------
Net (Loss) Income Attributable to FRMO
Corporation $ (15,858) $ 34,487
========== ==========
Diluted (Loss) Net Income per Common
Share $ (0.36) $ 0.78
Weighted Average Common Shares
Outstanding
Basic 44,022,781 44,022,781
Diluted 44,022,781 44,027,112
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