FRMO Corp. Announces Fiscal 2025 Results and Annual Meeting

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08/14/2025 - 06:59 PM

WHITE PLAINS, N.Y.--(BUSINESS WIRE)-- FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) reported its financial results for the fiscal year 2025 ended May 31, 2025.

Financial Highlights

FRMO’s total book value as of May 31, 2025 was $651.2 million. Excluding the non-controlling interests, equity attributable to shareholders was $353.0 million ($8.02 per share). This compares with total book value at the prior fiscal year end on May 31, 2024 of $403.3 million. Excluding the non-controlling interests, equity attributable to shareholders was $242.1 million ($5.50 per share).

Current assets, comprised primarily of cash and equivalents and equity securities, amounted to $471.8 million as of May 31, 2025, and $276.1 million as of May 31, 2024. Total liabilities, comprised primarily of securities sold, not yet purchased, and deferred taxes, were $62.2 million as of May 31, 2025, and $35.9 million in the prior year.

Annual net income attributable to the Company in the fiscal year ended May 31, 2025 was $107,547,576 ($2.44 per diluted share) compared to $72,558,671 ($1.65 per diluted share) a year earlier.

For the three months ended May 31, 2025, FRMO’s net (loss) income attributable to the Company was $(35,158,490) ($(0.80) per diluted share), compared to $22,537,547 ($0.51 per diluted share) a year earlier. Net loss for the quarter is attributable to unrealized losses identified as Investment A in Note 4 of the Consolidated Financial Statements under Investment Concentration included in unrealized losses from equity securities and unrealized losses from investments. Investment A is an equity security held directly and indirectly, through the Company’s various investments in managed funds.

Net (loss) income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities and digital assets net of taxes for the fiscal year ended May 31, 2025 was $58,661,786 ($1.33 per diluted share) compared to $48,940,292 ($1.11 per diluted share) a year later. The three-month figures, as of the same end dates, are $(5,357,760) ($(0.12) per diluted share) and $12,459,787 ($0.28 per diluted share).

Net (loss) income attributable to the Company excluding the effect of unrealized (loss) gain 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 May 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 year end consolidated financial statements include the accounts of FRMO Corporation and its controlled subsidiaries (collectively referred to as the "Company"). As of May 31, 2025 and 2024, the Company held a 21.82% and 21.84% equity interest, respectively in Horizon Kinetics Hard Assets LLC (“HKHA”), a company formed by Horizon and certain officers, principal stockholders and directors of the Company. 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 78.18% and 78.16% in HKHA has been eliminated from results of operations for the years ended May 31, 2025 and 2024, Total stockholders’ equity includes as a separate item the amount attributable to the noncontrolling interests.

Further details are available in the Company’s Consolidated Financial Statements for the fiscal year ended May 31, 2025. 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.

Annual Meeting

Murray Stahl, CEO, and Steven Bregman, President and CFO, will host the 2025 Annual Meeting of Shareholders (“Meeting”) on Wednesday, September 10, 2025 at 2:30 p.m. Eastern Time, to be held at
Vinson & Elkins L.L.P.
1114 Avenue of the Americas, 32^nd Floor
New York, NY 10036
https://www.virtualshareholdermeeting.com/FRMO2025.

To access the virtual Annual Meeting, please have your proxy card at hand and enter your unique 16-digit control number. Only shareholders with valid control numbers will be able to vote and ask questions via the electronic portal. Guests may register for the webcast by entering their first and last names and a valid email address. Shareholders and guests may submit questions in advance to info@frmocorp.com by 11:59 P.M. Eastern Time on Tuesday, September 9, 2025 (the day before the Annual Meeting).

Admission to the FRMO in person Annual Meeting is limited to stockholders who owned Common Stock as of the close of business on July 14, 2025, the record date, or their duly appointed proxies, and one guest. Proof of ownership of FRMO stock and valid government-issued photo identification must be presented in order to be admitted to the physical Annual Meeting. Guests must also present valid government-issued photo identification. If your shares are held in the name of a bank, broker, or other holder of record, you must bring a brokerage statement or other proof of ownership (or the equivalent proof of ownership as of the close of business on the record date of the stockholder who granted you the Proxy). If your shares are held in certificate form, ownership will be verified by consulting the list of Registered Shareholders as of the record date. Registration will begin at 1:30 PM.

Condensed Consolidated Balance Sheets
(in thousands)

	May 31,		May 31,
	2025		2024

Assets
Current Assets:
Cash and cash equivalents	$	43,864	$	39,190
Equity securities, at fair value		408,553		221,682
Digital assets, at fair value		16,949		10,979
Other current assets		2,441		4,252
Total Current Assets		471,807		276,102
Investment in limited partnerships and other
equity investments, at fair value		201,529		127,579
Investments in securities exchanges		7,947		6,463
Other assets		1,483		1,609
Investment in Horizon Kinetics Holding Corporation (formerly
Horizon Kinetcs LLC at May 31, 2024)		20,439		17,205
Horizon Kinetics Holding Corporation (formerly
Horizon Kinetics LLC at May 31, 2024) royalty participation		10,199		10,200
Total Assets	$	713,404	$	439,159

Liabilities and Stockholders' Equity
Current Liabilities:
Securities sold, not yet purchased	$	1,307	$	951
Other current liabilities		268		1,258
Total Current Liabilities		1,575		2,209
Deferred Tax Liability		60,017		33,668
Mortgage payable		622		-
Total Liabilities		62,214		35,877

Stockholders' Equity:
Stockholders' Equity Attributable to the Company		352,985		242,137
Noncontrolling interests		298,205		161,145
Total Stockholders' Equity		651,190		403,282

Total Liabilities and Stockholders' Equity	$	713,404	$	439,159

(Components may not sum to totals due to rounding)

Condensed Consolidated Statements of Income
(amounts in thousands, except share data)

	Three Months Ended					Years Ended
	May 31,			May 31,		May 31,		May 31,
	2025			2024		2025		2024
	(Unaudited)
Revenue:
Fees	$	975		$	709	$	4,823	$	2,715
Equity earnings from limited partnerships
and limited liability companies		2,470			2,188		11,746		5,044
Unrealized (losses) gains from investments		(17,735	)		12,410		64,113		53,935
Other		1,073			1,193		7,736		4,275
Total revenue before unrealized gains (losses) from equity securities
and digital assets		(13,218	)		16,500		88,418		65,969
Unrealized (losses) gains from equity securities		(113,848	)		32,655		169,065		66,186
Unrealized gains from digital assets		3,163			1,001		5,878		6,272
Total Revenue		(123,904	)		50,156		263,362		138,427
Total Expenses		240			332		1,504		1,556

(Loss) Income from Operations before Provision for Income Taxes		(124,144	)		49,824		261,858		136,871
(Benefit from) Provision for Income Taxes		(9,819	)		4,742		28,579		18,420
Net (Loss) Income		(114,326	)		45,082		233,279		118,451
Less net (loss) income attributable to noncontrolling interests		(79,167	)		22,545		125,731		45,893
Net (Loss) Income Attributable to FRMO Corporation	$	(35,158	)	$	22,538	$	107,548	$	72,559

Diluted (Loss) Net Income per Common Share	$	(0.80	)	$	0.51	$	2.44	$	1.65

Weighted Average Common Shares Outstanding
Basic		44,022,781			44,022,781		44,022,781		44,022,781
Diluted		44,022,781			44,027,031		44,029,929		44,026,529

(Components may not sum to totals due to rounding)

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

FRMO had 44,022,781 shares of common stock outstanding as of May 31, 2025.

For more information, visit our website 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.

Information Regarding Non-GAAP Measures

Net income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities and digital assets is net (loss) income attributable to the Company exclusive of unrealized (losses) gains from equity securities and digital assets, net of tax. Net (loss) income attributable to the Company is the GAAP measure most closely comparable to net income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities and digital assets.

Management uses net (loss) income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities and digital assets, along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including unrealized (loss) gain from equity securities and digital assets, which may vary significantly between periods. Net (loss) income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities is provided as supplemental information, and is not a substitute for net (loss) income attributable to the Company and does not reflect the Company’s overall profitability.

The following table reconciles the net (loss) income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities and digital assets to net (loss) income attributable to the Company for the periods indicated:

	Three Months Ended							Three Months Ended						Years Ended						Years Ended
	May 31, 2025							May 31, 2024						May 31, 2025						May 31, 2024
														(Unaudited)						(Unaudited)

	Amount			Diluted loss per common share				Amount			Diluted earnings per common share			Amount			Diluted earnings per common share			Amount			Diluted earnings per common share
(000’s except per common share amounts and percentages)
Net (Loss) Income Attributable to the Company Excluding the Effect of Unrealized (Loss) Gain from Equity Securities and Digital Assets, and Diluted (Loss) Earnings per Common Share Reconciliation:

Net (loss) income attributable to the Company	$	(35,158	)	$	(0.80	)		$	22,538		$	0.51		$	107,548		$	2.44		$	72,559		$	1.65

Unrealized (loss) gain from equity securities and digital assets		(110,686	)						33,656						174,943						72,458
Unrealized (loss) gain from equity securities and digital assets attributable to noncontrolling interests		(79,667	)						22,191						121,357						44,532
Unrealized (loss) gain from equity securities and digital assets attributable to the Company		(31,019	)						11,465						53,586						27,926
Tax benefit (provision) on unrealized (loss) gain from equity securities and digital assets attributable to the company		1,218							(1,387	)					(4,700	)					(4,308	)
Unrealized (loss) gain from equity securities and digital assets attributable to the Company, net of taxes		(29,801	)	$	(0.68	)			10,078		$	0.23			48,886		$	1.11			23,618		$	0.54

Net (loss) income attributable to the Company excluding the effect of unrealized (loss) gain from equity securities and digital assets	$	(5,358	)	$	(0.12	)		$	12,460		$	0.28		$	58,662		$	1.33		$	48,940		$	1.11

Weighted average diluted shares outstanding		44,022,781					#		44,027,031				#		44,029,929				#		44,026,529

(Components may not sum to totals due to rounding)