FRMO FRMO Corporation (PK)

CORRECTION: FRMO Corp. Announces Results for Fiscal 2013

Extends invitation to
attend Annual Meeting in NYC August 27

Elmsford, N.Y. August 8, 2013. FRMO Corp.
(FRMO-OTC-PINK) has issued its audited Annual Report for its fiscal year ended
May 31, 2013.

 

Correction: In the Condensed Balance Sheets, cash and
cash equivalents for May 31, 2013 has been corrected to $26,525 (instead of $6,525).

 

Financial Highlights

FRMO?s net income was $10.3 million (26 cents
per share pre and post full dilution) for the fiscal year ended May 31, 2013. This
amount represents a 215% increase over the 2012 net income figure of $3.27
million that is largely attributable to the realized gain described below on
the exchange of its product-specific revenue interests in certain products
managed by Horizon Kinetics LLC (?Horizon Kinetics?).

 

For the years ended May 31, 2013 and 2012,
revenues from the product-specific revenue interests were approximately
$2,418,000 and $2,211,000, respectively. As of May 31, 2013, FRMO will receive
a single revenue interest (the ?Revenue Interest?) equal to 4.199% of the gross
revenues of Horizon Kinetics. On May 31, 2013, the 4.199% Revenue Interest had
a fair value of $10.2 million. As a result of this transaction, the Company
realized a gain of approximately $10.1 million, which is equal to the fair
value of the 4.199% Revenue Interest at the close of business on May 31, 2013
over the cost basis of the revenue interests in the Horizon Kinetics related
products transferred to Horizon Kinetics on that date.

 

Tangible book value advanced for the thirteenth
consecutive year (since inception) to a record $83.37 million ($1.93 per share)
in 2013 vs. $54.26 ($1.39 per share) in 2012. Current assets, comprised
primarily of cash and equivalents and investments available for sale, amounted
to $74.84 million. Total liabilities amounted to $12.65 million, the majority
being current and non-current deferred taxes. The increase in total liabilities
from the 2012 level of $5.05 million is mainly due to the increase in current
and non-current deferred tax on the approximately $10.057 million gain from the
Revenue Interest transaction

 

Further detail is available in the audited
report of the Company?s Consolidated Financial Statements for the Year Ended
May 31, 2013, and for contextual content in particular, the 2013 Letter to
Shareholders from Murray Stahl, Chairman and Chief Executive Officer. These, as
well as the Proxy Statement for the Annual Meeting of Shareholders, have been
filed on the OTC Markets Group?s Disclosure and News Services (DNS), which may
be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents, as
well as research referred to in the Shareholder Letter, are also available on
the FRMO web site, www.frmocorp.com.

 

Other Matters ? Annual Meeting Invitation

The Chairman, President, and Board of
Directors of FRMO Corp. cordially invite you to attend its Annual Meeting at
which they will review the Fiscal 2013 financial results and the outlook for
the future. They will be available to answer questions and look forward to
meeting you. The Annual Meeting will be held on:

 

Tuesday, August 27, 2013 at 3PM

The Harvard Club

35 West 44^th Street

New York, NY

 

Condensed Consolidated Balance Sheets
(in thousands)
	May 31,		May 31,
	2013		2012
Assets
Current Assets:
Cash and cash equivalents	$        26,525		$      19,405
Investments, available for sale, at fair value	47,306		38,174
Other	1,012		1,312
Total Current Assets	74,843		58,891
Investment in unconsolidated limited liability company	10,974		202
Participation in Horizon Kinetics revenue stream	10,200		-
Other Assets	-		217
Total Assets	$      96,017		$      59,310
Liabilities and Stockholders' Equity
Current Liabilities:
Deferred Tax Liability - non-current	$        5,852		$           246
Redeemable preferred stock	50		50
Other current liabilities	2,510		1,845
Total Current Liabilities	8,412		2,141
Deferred Tax Liability - non-current	4,238		2,909
Total Liabilities	12,650		5,050
Stockholders' Equity	83,367		54,260
Total Liabilities and Stockholders' Equity	$      96,017		$      59,310

 

Condensed Consolidated Statements of Income
(amounts in thousands, except share data)
	Year Ended
	May 31,		May 31,
	2013		2012
Revenue:
Consultancy and advisory fees	$         2,418		$       2,325
Income from investment partnerships
and limited liability companies	2,741		1,322
Gain on exchange of product specific revenue interests	10,057		-
Gain on transfer of revenue interest	511		-
Other	1,940		1,838
Total Revenue	17,667		5,485
Total Expenses	867		885
Income from Operations	16,800		4,600
Provision for Income Taxes	6,480		1,332
Net Income	$       10,320		$       3,268
Basic and Diluted Earnings per Common Share	$           0.26		$         0.08
Weighted Average Common Shares Outstanding
Basic	39,280,354		39,138,105
Diluted	39,422,065		39,188,105

 

About FRMO Corp.

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

 

FRMO has 43,255,972 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.

Contact

Therese
Byars

Corporate Secretary

Email: tbyars@frmocorp.com

Telephone: 646-495-7337

www.frmocorp.com