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FRMO Corporation (PNK:FRMO) Q3 2024 Earnings Call Transcript

FRMO Corporation (PNK:FRMO) Q3 2024 Earnings Call Transcript April 16, 2024

FRMO Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Therese Byars: Good afternoon, everyone. This is Therese Byars speaking and I'm the Corporate Secretary of FRMO Corp. Thank you for joining us on this call. The statements made on this call apply only as of today. The information on this call should not be construed to be a recommendation to purchase or sell any particular security or investment fund. The opinions referenced on this call today are not intended to be a forecast of future events or a guarantee of future results. It should not be assumed that any of the security transactions referenced today have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past performance of the investments. For additional information, you may visit the FRMO Corp website at www.frmocorp.com.

Today's discussion will be led by Murray Stahl, Chairman and Chief Executive Officer, and Steven Bregman, President and Chief Financial Officer. They will review key points related to the fiscal 2024 third quarter earnings. And now I'll turn the discussion over to Mr. Stahl.

A close-up of a financial chart with complex data points.
A close-up of a financial chart with complex data points.

Murray Stahl: Okay. Thank you, Therese, and thank you everybody for joining us. I'll just start off. I'll just make a couple of highlight points about our financials, which I think you'll find interesting. And then I'm going to answer some questions I always get, but I never get them in real time online. Now I only get them as I encounter people. And they ask them then it's too bad because the answer only goes to one person. I really think I should share it with everyone, so that's what I'm going to do. So as far as financial statements go, I believe, if I'm not mistaken, that our stockholders' equity attributable to the company of $219.4 million is the highest we have ever had. And our total assets, which is total liabilities and stockholders' equity of $388 million, I think that's about as high as we ever had.

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So it's getting to be big sums of money. But what it these financial statements don't do is they don't show you detail behind them. So an important detail and I'll get to some questions about that detail momentarily. An important detail is that we're actually building a crypto business, and we're on the way to becoming a crypto operating company. So the components of that are, we now own 1,655,000 shares of Winland, and I think that's something like 35% of the shares. We keep filing 10b5 plans, and we have one on right now, which is in a quiet period. And I think May 1st, it recommences. So Winland is now largely a crypto minor. We also have a smaller investment in Consensus Mining. Consensus Mining, if everything goes right in a few months is actually going to have a listing, and that's also a crypto mining company.

We also -- if you look at our balance sheet, you'll see about $1.3 million of digital mining assets. So we actually mine for ourselves. And put it all together, it would not be a small cryptocurrency mining company, if it weren't diffused into three different pockets. And -- but the three elements are generally speaking, getting bigger gradually. We also have, as you can see from our cryptocurrency holding summary, we have a fair amount of cryptocurrency holdings either directly or indirectly, some in ETFs and some directly. So I'll just speak about what we've been doing in these things and what we've not been doing in these things. So the crypto has been, I dare say, pretty successful. So one question, which I get, and it will require a little bit of a lengthy answer is, the balance sheet cash, which is $38.8 million.

See also

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To continue reading the Q&A session, please click here.