FRMO FRMO Corporation (PK)

FRMO Corp. (FRMO-OTC-PINK) (“FRMO” or “Company”) today reported its financial results for the third quarter ended February 28, 2013 (May Fiscal Year).

Financial Highlights

FRMO’s net income for the third quarter ending February 28, 2013 was $858,803 ($0.02 per share basic and diluted) and for the nine months ending February 28, 2013 net income was $2,751,336 ($0.07 per share basic and diluted). Comparable figures for the same periods in fiscal 2012 were $1,059,991 ($0.03 per share basic and diluted) for the three months and $2,780,787 ($0.07 per share basic and diluted) for the nine months. The third quarter of 2013 includes tax adjustments from prior years.

Tangible book value advanced to a record (since inception) $61 million ($1.55 per share) vs. $54 million ($1.38 per share) at fiscal 2012 year end. Current assets, comprised primarily of cash and equivalents and investments available for sale, amounted to $68.3 million. Total liabilities amounted to $7.6 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 February 28, 2013. 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.

Conference Call

Murray Stahl, Chairman and CEO, and Steven Bregman, President and CFO, of FRMO Corp. will host a conference call on Tuesday, April 23, 2013 at 4:00 p.m. ET. The call can be accessed by dialing 1-888-437-9445 and entering the following conference ID: 2800744. A replay will be available from 6:15 p.m. the day of the teleconference until May 23, 2013. To listen to the archived call, dial 1-888-203-1112, and enter conference ID number 2800744.

Private Placement

On April 15, 2013, the company received a commitment from accredited investors pursuant to a Private Placement Memorandum (the “PPM”) to purchase 1,730,103 shares of the Company’s common stock at $2.89 per share. The Company is expecting to receive proceeds of approximately $5 million during the quarter ended May 31, 2013. There are no closing costs in connection with the PPM. The transaction is exempt from registration pursuant to Regulation D and Section 505 of the Securities Act of 1933.

                              Condensed Consolidated Balance Sheets (in thousands) February 28, May 31, 2013 2012 (Unaudited) Assets Current Assets: Cash and cash equivalents $ 21,171 $ 19,405 Investments, available for sale, at fair value 45,946 38,376 Other   1,146   1,312 Total Current Assets 68,263 59,093 Other Assets   161   217 Total Assets $ 68,424 $ 59,310   Liabilities and Stockholders' Equity Current Liabilities: Redeemable preferred stock $ 50 $ 50 Other current liabilities   7,508   2,091 Total Current Liabilities 7,558 2,141 Deferred Tax Liability - non-current   -   2,909 Total Liabilities 7,558 5,050 Stockholders' Equity   60,866   54,260   Total Liabilities and Stockholders' Equity $ 68,424 $ 59,310                                         Condensed Consolidated Statements of Income (amounts in thousands, except share data)         Three Months Ended Nine Months Ended February 28, February 29, February 28, February 29, 2013             2012             2013             2012 (Unaudited) (Unaudited) Revenue: Consultancy and advisory fees $ 774 $ 571 $ 1,824 $ 1,761 Income from investment partnerships and limited liability companies 651 496 1,605 940 Other   681   537   2,022   1,812 Total Revenue 2,106 1,604 5,451 4,513 Total Expenses   266   263   708   714   Income from Operations 1,840 1,341 4,743 3,799 Provision for Income Taxes   981   281   1,992   1,019   Net Income $ 859 $ 1,060 $ 2,751 $ 2,780   Basic and Diluted Earnings per Common Share $ 0.02 $ 0.03 $ 0.07 $ 0.07   Weighted Average Common Shares Outstanding Basic 39,138,154 39,138,154 39,138,154 39,138,088 Diluted 39,259,083 39,188,154 39,197,326 39,188,088  

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.