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FRMO Corp. Announces Results for Fiscal 2019

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WHITE PLAINS, N.Y.–(BUSINESS WIRE)–FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today reported its financial results for the fiscal year 2019, which ended May 31, 2019.

Financial Highlights

FRMO’s book value as of May 31, 2019 was $174.9 million ($3.98 per share on a fully diluted basis), including $48.6 million of non-controlling interests. The figure from the prior fiscal year-end as of May 31, 2018 was $146.9 million ($3.34 per share), including $27.6 million of non-controlling interests. Current assets, comprised primarily of cash and equivalents and equity securities, amounted to $118.3 million as of May 31, 2019, and $93.2 million as of May 31, 2018. Total liabilities were $16.7 million as of May 31, 2019, compared to $13.5 million as of May 31, 2018, primarily securities sold, not yet purchased and deferred taxes.

FRMO’s net income attributable to the Company for the fiscal year ended May 31, 2019 was $4,709,662 ($0.11 per share basic and diluted) compared to $14,052,518 ($0.32 per share) for the fiscal year ended May 31, 2018.

For the fiscal year 2019, comprehensive income attributable to the Company was $4,709,662 compared to $14,835,607 in the prior year.

FRMO’s net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities net of taxes for the three months ended May 31, 2019 was $3,398,500 ($0.08 per diluted share) compared to $(4,265,263) ($(0.10) per share) for the three months ended May 31, 2018. For the year ended May 31, 2019, the amount was $9,027,157 ($0.21 per share) compared to $14,052,518 ($0.32 per share) for the same period in the prior year. Net income (loss) attributable to the Company excluding the effect of unrealized gains (losses) from equity securities 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.

As of May 31, 2019 and May 31, 2018, the Company held a 15.49% and 12.92% equity interest in Horizon Kinetics Hard Assets LLC (“HKHA”), a company formed by Horizon Kinetics LLC and certain officers, principal stockholders and directors of FRMO Corp.(“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 84.51% and 87.08% in HKHA has been eliminated from results of operations for the periods ended May 31, 2019 and May 31, 2018.

Further details are available in the Company’s Consolidated Financial Statements for the fiscal year ended May 31, 2019. 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 Information

The Chairman, President, and Board of Directors of FRMO Corp. cordially invite shareholders to attend the Company’s Annual Meeting of Shareholders at which the Chairman and President will review the Fiscal 2019 financial results and the outlook for the future. Board members will be available to answer questions.

Date:

Tuesday, September 10, 2019 at 3PM.

Location:

The Harvard Club of New York City

35 West 44th Street

New York, NY 10036

Admission to the FRMO Annual Meeting is limited to stockholders who owned Common Stock as of the close of business on July 26, 2019, 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 Annual Meeting. Each guest 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 2:00 p.m. No cameras, recording equipment, electronic devices, large bags, briefcases, or packages will be permitted in the Annual Meeting. Dress code for the Harvard Club is business casual (no jeans, sneakers, or athletic wear permitted).

 
Condensed Consolidated Balance Sheets
(in thousands)
May 31, May 31,

2019

 

2018

 
Assets
Current Assets:
Cash and cash equivalents

$ 53,081

$ 53,617

Equity securities, at fair value

63,565

38,522

Other current assets

1,639

1,095

Total Current Assets

118,285

93,234

Computer equipment, net of accumulated depreciation

95

76

Investment in limited partnerships and other
equity investments, at fair value

47,513

41,407

Investments in securities exchanges

3,641

3,709

Other investments

452

189

Investment in Horizon Kinetics LLC

11,488

11,624

Participation in Horizon Kinetics LLC revenue stream

10,200

10,200

Total Assets

$ 191,674

$ 160,439

 
Liabilities and Stockholders’ Equity
Current Liabilities:
Securities sold, not yet purchased

$ 8,133

$ 5,495

Other current liabilities

161

193

Total Current Liabilities

8,294

5,688

Deferred Tax Liability

8,383

7,757

Total Liabilities

16,677

13,445

 
Stockholders’ Equity:
Stockholders’ Equity Attributable to the Company

126,384

119,411

Noncontrolling interests

48,613

27,583

Total Stockholders’ Equity

174,997

146,994

 
Total Liabilities and Stockholders’ Equity

$ 191,674

$ 160,439

 
 
Condensed Consolidated Statements of Operations
(amounts in thousands, except share data)
Three Months Ended Year Ended
May 31, May 31, May 31, May 31,

2019

 

2018

 

2019

 

2018

(Unaudited)
Revenue:
Consultancy and advisory fees

$ 522

$ 511

$ 2,027

$ 3,257

Equity earnings from partnerships
and limited liability companies

2,360

318

2,560

3,782

Unrealized gains (losses) from investments recorded at fair value

1,283

(6,508)

3,839

8,351

Equity earnings (loss) from investment in The Bermuda Stock Exchange

(5)

3

181

17

Other

869

643

4,233

1,006

Total revenue before unrealized gains (losses) from equity securities

5,028

(5,033)

12,840

16,413

Unrealized gains (losses) from equity securities recorded at fair value

(3,376)

6,725

Total Revenue

1,652

(5,033)

19,565

16,413

Total Expenses

345

198

1,332

808

 
Income (Loss) from Operations

1,307

(5,231)

18,233

15,605

Provision for (Benefit from) Income Taxes

661

(1,171)

1,026

1,382

Net Income (Loss)

646

(4,060)

17,207

14,223

Less net income (loss) attributable to noncontrolling interests

(955)

205

12,498

171

Net Income (Loss) Attributable to FRMO Corporation

$ 1,601

$ (4,265)

$ 4,709

$ 14,052

 
Diluted Net Income (Loss) per Common Share

$ 0.04

$ (0.10)

$ 0.11

$ 0.32

 
Weighted Average Common Shares Outstanding
Basic

43,976,781

43,973,781

43,974,940

43,959,554

Diluted

44,015,088

43,973,781

44,016,535

44,007,828

 

About FRMO Corp.

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

FRMO had 43,976,781 shares of common stock outstanding as of May 31, 2019.

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

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

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

       
Three Months Ended   Three Months Ended   Year Ended   Year Ended
May 31, 2019   May 31, 2018   May 31, 2019   May 31, 2018
(Unaudited)   (Unaudited)    
               
Amount   Diluted
earnings
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 Income Attributable to the Company Excluding the Effect of Unrealized Gain (Loss) from Equity Securities and Diluted Earnings per Common Share Reconciliation:              
               
Net income (loss) attributable to the Company

$

1,601

 

$

0.04

 

$

(4,265)

 

$

(0.10)

 

$

4,709

 

$

0.11

 

$

14,053

 

$

0.32

               
Unrealized gain (loss) from equity securities

 

(3,376)

   

 

   

 

6,725

   

 

 
Unrealized gain (loss) from equity securities attributable to noncontrolling interests

 

(1,319)

   

 

   

 

12,135

   

 

 
Unrealized gain (loss) from equity securities attributable to the Company

 

(2,057)

   

 

   

 

(5,410)

   

 

 
Tax benefit on unrealized gain (loss) from equity securities attributable to the company

 

260

   

 

   

 

1,092

   

 

 
Unrealized (loss) from equity securities attributable to the Company, net of taxes

 

(1,797)

 

$

(0.04)

 

 

 

$

0.00

 

 

(4,318)

 

$

(0.10)

 

 

 

$

0.00

         

 

     
Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities

$

3,398

 

$

0.08

 

$

(4,265)

 

$

(0.10)

 

$

9,027

 

$

0.21

 

$

14,053

 

$

0.32

               
Weighted average diluted shares outstanding

 

44,015,088

   

 

43,973,781

   

 

44,016,535

   

 

44,007,828

 
               

 

Contacts

Thérèse Byars

Corporate Secretary

Email: tbyars@frmocorp.com

Telephone: 646-495-7337

www.frmocorp.com

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Business Wire

Shareholder Alert: Robbins LLP Announces Plantronics, Inc. (PLT) Sued for Misleading Shareholders

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SAN DIEGO & SANTA CRUZ, Calif.–(BUSINESS WIRE)–$PLT–Shareholder rights law firm Robbins LLP announces that a purchaser of Plantronics, Inc. (NYSE: PLT) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between July 2, 2018 and November 5, 2019. Plantronics designs, manufactures, and markets various integrated communications and collaborations solutions for corporations, small businesses, and individuals.

If you suffered a loss as a result of Plantronics’ misconduct, click here.

Plantronics, Inc. (PLT) Accused of Misleading Shareholders

According to the complaint, throughout the relevant period, Plantronics reported increasing net revenues in the hundreds of millions and in August 2019, the Company announced expected revenue between $1.87 and $1.97 billion for fiscal year 2020. However, Plantronics had failed to disclose to investors that the Company had engaged in channel stuffing to artificially boost sales and that the Company lacked internal control over inventory, including an inability to monitor inventory levels ahead of multiple product launches. The adverse impact of these issues became realized on November 5, 2019, when Plantronics disclosed a $65 million reduction in channel inventory “by reducing sales to channel partners” and slashed its fiscal 2020 guidance. On this news, Plantronics’ stock price fell $14.44 per share, nearly 37%, to close at $25.00. The stock has yet to recover.

Plantronics, Inc. (PLT) Shareholders Have Legal Options

Contact us to learn more:

Leo Kandinov

(800) 350-6003

lkandinov@robbinsllp.com
Shareholder Information Form

Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contacts

Leo Kandinov

Robbins LLP

lkandinov@robbinsllp.com
(619) 525-3990 or Toll Free (800) 350-6003

www.robbinsllp.com

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Business Wire

Onset Financial Named a Winner of the Utah Top Workplaces 2019 Award

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DRAPER, Utah–(BUSINESS WIRE)–#equipmentleasing–Onset Financial was just named the 14th Best Place to Work in Utah. The Salt Lake Tribune released the list based on employee feedback gathered through a third-party survey administered by research partner Energage, LLC, a leading provider of technology-based employee engagement tools. The anonymous survey measures several aspects of workplace culture, including alignment, execution, and connection, just to name a few.

“The Top Workplaces award is about much more than recognition and celebration,” said Eric Rubino, CEO of Energage. “Our research also shows that these organizations achieve higher referral rates, lower employee turnover, and double the employee engagement levels. It just goes to show that being intentional about culture delivers bottom-line results.”

Onset Financial dedicates time and effort to provide employees with an environment focused on their needs. As a core value, a healthy company culture is crucial to creating a dominating workplace. Onset Financial holds semiannual employee training, provides unlimited free cereal, distributes a hearty amount of company swag, serves catered lunches every Friday and focuses on employee appreciation.

“It’s exciting to be recognized as a top workplace in Utah, and I’m grateful to the members of our team who have put in the time to make Onset the place to be,” said Justin Nielsen, CEO of Onset Financial. “We are experiencing a record year and we know our employees are the biggest reason for this success.”

Most recently, Onset Financial launched Onset Fit. This program offers trainer-led workouts three times a week to employees during their lunch hour.

About Onset Financial, Inc. – Founded in 2008, Onset Financial, Inc. is the industry leader in equipment leasing and financing. Onset’s seasoned Management Team has decades of equipment leasing experience and key industry relationships that enable Onset to offer additional flexibility in lease structuring. For more information please call 801-878-0600 or visit www.onsetfinancial.com.

Contacts

Debbie Worthen

Onset Financial, Inc.

o: 801.878.0600

f: 801.878.0601

dworthen@onsetfinancial.com
www.onsetfinancial.com
Facebook: https://www.facebook.com/OnsetFinancial
Twitter: https://twitter.com/OnsetFinancial
LinkedIn: https://www.linkedin.com/company/onset-financial

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Edgewater Wireless Announces Grant of Stock Options

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OTTAWA, Ontario–(BUSINESS WIRE)–#Densification–Edgewater Wireless Systems Inc. (YFI; TSX.V) (OTCQB: KPIFF), the industry leader in Wi-Fi Spectrum Slicing technology for residential and commercial markets, has granted incentive stock options pursuant to its incentive stock option plan to a director of the Company to purchase up to an aggregate of 250,000 common shares in the capital stock of the Company. The options are exercisable at a price of $0.085 per share for a period of ten years from the date of grant. The options will vest over two years, with 33% vesting immediately, 33% vesting on the date that is 12 months from the date of grant and the remaining 34% vesting on the date that is 24 months from the date of grant. The options, and the shares issuable upon exercise, will be subject to applicable securities laws and regulatory hold periods.

About Edgewater Wireless

We make Wi-Fi. Better.

Edgewater Wireless (www.edgewaterwireless.com) is the industry leader in innovative Wi-Fi Spectrum Slicing technology for residential and commercial markets. We deliver advanced silicon solutions, Access Points, and IP licensing designed to meet the high-density and high quality-of-service needs of service providers and their customers. With 24+ patents, Edgewater’s Multi-Channel, Single Radio (MCSR) technology revolutionizes Wi-Fi, delivering next-generation Wi-Fi today.

For more information, visit www.edgewaterwireless.com or www.aera.io.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. Although Edgewater Wireless believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Edgewater Wireless can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause Edgewater Wireless’ actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to access to capital markets, market forces, competition from new and existing companies and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. Edgewater Wireless undertakes no obligation to update publicly or revise any forward looking information, whether as a result of new information, future events or otherwise, except as required by law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts

Edgewater Wireless Investor Contact:

Andrew Skafel

President and CEO

T: +1 613-271-3710

E: andrews@edgewaterwireless.com
W: www.edgewaterwireless.com

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