FRMO Corp. (the “Company” or “FRMO”) (OTC Pink: FRMO) today reported its financial results for the fiscal year 2024 ended May 31, 2024.

Financial Highlights

FRMO’s total book value as of May 31, 2024 was $403.3 million ($9.16 per share on a fully diluted basis), including $161.1 million of non-controlling interests. Excluding the non-controlling interests, book value was $242.1 million ($5.50 per share). This compares with total book value at the prior fiscal year end on May 31, 2023 of $284.1 million ($6.45 per share), including $114.8 million of non-controlling interests. Excluding the non-controlling interests, book value was $169.2 million ($3.85 per share).

Current assets, comprised primarily of cash and equivalents, equity securities, and digital assets, amounted to $276.1 million as of May 31, 2024, and $201.3 million as of May 31, 2023. Total liabilities were $35.9 million as of May 31, 2024, and $19.4 million as of May 31, 2023, comprised primarily of securities sold, not yet purchased, and deferred taxes.

Annual net income (loss) attributable to the Company in the fiscal year ended May 31, 2024 was $72,558,671 ($1.65 per diluted share) compared to $(12,603,972 ($(0.29) per diluted share) in 2023.

For the three months ended May 31, 2024, FRMO’s net income (loss) attributable to the Company was $22,537,547 ($0.51 per diluted share), compared to $(20,050,797) ($(0.46) per diluted share) a year earlier. Net income for the quarter is attributable to unrealized gains identified as Investment A in Note 4 of the Consolidated Financial Statements under Investment Concentration included in unrealized gains from equity securities and unrealized gains from investments. Investment A is an equity security held directly and indirectly, through the Company’s various investments in managed funds

Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets net of taxes for the three months ended May 31, 2024 was $12,459,787 ($0.28 per diluted share) compared to $(7,197,926) ($(0.16) per diluted share) for the same period in 2023. For the year ended May 31, 2024, this figure was $48,940,292 ($1.11 per diluted share) and $(6,382,222) ($(0.14) per diluted share) in the previous year.

Net income (loss) attributable to the Company excluding the effect of unrealized gain (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 May 31, 2024. 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 asset mining operations.

As of May 31, 2024 and 2023, the Company held a 21.84% and 21.80% equity interest, respectively, in Horizon Kinetics Hard Assets LLC (“HKHA”), a company formed by Horizon Kinetics LLC (“Horizon”) and certain officers, principal stockholders and directors of the Company. The Company also holds a 4.95% interest in Horizon and earns substantially all of its advisory fees from Horizon. 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 78.16% and 78.20% in HKHA has been eliminated from results of operations for the years ended May 31, 2024 and 2023.

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

Annual Meeting

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, will host the 2024 Annual Meeting of Shareholders (“Meeting”) on Thursday, September 5, 2024, at 2:30 p.m. Eastern Time, to be held at

The Harvard Club of New York City, 35 West 44^th Street, New York, NY 10036 (The West Room) and online via live webcast at https://www.virtualshareholdermeeting.com/FRMO2024.

For admission to the physical Annual Meeting at The Harvard Club, please see the FRMO representative in the lobby who will provide the necessary code for access.

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).

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(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, 2024.

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

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

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

(Components may not sum to totals due to rounding)

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