Frmo Corp.OTC: FRMO

FRMO Corp. Announces Second Quarter 2013 Financial Results and Conference Call

· Issued by Frmo Corp.

FRMO Corp. Announces Second Quarter 2013 Financial Results and Conference Call

Business Wire

PLEASANTVILLE, N.Y. — January 14, 2013

FRMO Corp. (FRMO-OTC-PINK) (“FRMO” or “Company”) today reported its financial results for the second quarter ended November 30, 2013 (May Fiscal Year).

Conference Call

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, of FRMO Corp. will host a conference call on Tuesday, January 22, 2013 at 4:15 p.m. ET. The call can be accessed by dialing 1-888-329-8893 and entering the following conference ID: 5133349. A replay will be available from 6:15 p.m. the day of the teleconference until February 21, 2013. To listen to the archived call, dial 1-888-203-1112, and enter conference ID number 5133349.

Financial Highlights

FRMO’s net income for the second quarter of its fiscal year ending May 31, 2013 was $838,373 (0.02 cents per share pre- and post-full dilution) compared with $698,073 in the second quarter of fiscal 2012.

Tangible book value advanced to a record (since inception) $58.3 million ($1.49 per share) vs. $49.9 million ($1.28 per share) for the comparable period in fiscal 2012. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $65.5 million. Total liabilities amounted to $7.3 million, the majority being deferred taxes.

Further details are available in the Quarterly Report of the Company’s Consolidated Financial Statements for the quarter ended November 30, 2012. 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.

Condensed Consolidated Balance Sheets

(in thousands)

Nov. 30,

2012

May 31,

2012

(Unaudited)

Assets

Current Assets:

Cash and equivalents

$ 21,705

$ 19,405

Investments, available for sale, at fair value

42,710

38,376

Other

     1,083

     1,312

Total current assets

$ 65,498

$ 59,093

Other Assets

       180

     217

Total Assets

$ 65,678

$ 59,310

Liabilities and Stockholders’ Equity

Current Liabilities

$   7,304

$   2,091

Redeemable preferred stock

         50

          50

Total Current Liabilities

7,354

    2,141

Deferred Tax Liability – non-current

    -

    2,909

Total Liabilities

7,354

    5,050

Stockholders’ Equity

   58,324

   54,261

Total Liabilities and Stockholders’ Equity

$ 65,678

$ 59,311

Condensed Consolidated Statement of Income

(in thousands)

Three Months Ended Nov. 30,

2012

2011

(Unaudited)

(Unaudited)

Revenue:

Consultancy and advisory fees

$   508

$    517

Income from investment partnerships

505

192

Revenue from unconsolidated subsidiary

-

-

Other

      437

      384

Total Revenue

$ 1,450

$ 1,093

Total Expenses:

     197

     207

Income from Operations

     1,252

887

Provision for Income Taxes

     414

     189

Net Income

$ 838

$ 698

Basic and Diluted Earnings per Common Share

$ 0.02

$ 0.02

Weighted Average Common Shares Outstanding

Basic

39,138,154

39,138,154

Diluted

39,188,154

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 39,138,154 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.


Contacts

Lester J. Tanner, Esq.

General Counsel

Email: lestanner18@gmail.com

www.frmocorp.com

Thérèse Byars

Corporate Secretary

Email: tbyars@frmocorp.com

Telephone: 646-495-7337

www.frmocorp.com