FRMO (FRMO) investor relations material

Executive summary

• Discussed delayed filing due to a tax liability dispute related to potential securities sales, with a recalculated tax number expected in the next meeting in about six weeks.

• Sold the building housing HashMaster, used proceeds to pay off mortgage, resulting in a debt-free status, and acquired Synteq stock, gaining exposure to cryptocurrency and data center industries.

• Provides consulting and advisory services in asset management and digital asset mining, with a significant equity interest in Horizon Kinetics Hard Assets LLC and Horizon Kinetics Holding Corporation.

• No changes in control, shell status, or material legal proceedings during the reporting period.

• No stock splits, dividends, or recapitalizations in the past 12 months; no bankruptcy or trading suspensions.

Financial highlights

• Total assets decreased to $611.7M as of November 30, 2025, from $713.4M as of May 31, 2025.

• Net loss attributable to the company was $(26.4)M for the six months ended November 30, 2025, compared to net income of $145.0M for the same period last year.

• Digital assets mined during the six-month period had a cost basis increase of $36,000, using $31,000 worth of equipment.

• Cash and cash equivalents increased to $45.1M from $43.9M at the prior fiscal year end.

• Unrealized losses from equity securities and digital assets totaled $(98.3)M for the six months ended November 30, 2025, compared to gains of $466.0M in the prior year.

Outlook and guidance

• Next earnings discussion scheduled in about six weeks, with expectations of a different tax number due to asset value changes.

• The company expects the results of the three and six months ended November 30, 2025, may not be indicative of the full year ending May 31, 2026.

• Evaluating the impact of new FASB accounting standards on future disclosures and reporting.

• Expressed confidence in current positioning and future prospects, citing strong liquidity and strategic investments.