FRMM

FRMM is not an operating business in any conventional sense — it's the KBL SPAC successor that has morphed into a crypto-asset holding vehicle, and the FY2025 numbers are catastrophic. On just $6.55M of revenue the company posted a -$451M net loss and a -$233M operating loss (net margin -6,881%, operating margin -3,566%, EPS -$54.32). Total assets exploded +2,299.7% to $306M alongside $244M of 'capital expenditures' (PaymentsToAcquireProductiveAssets), which — read against the MD&A — is the balance sheet inflating as the company loads up on assets managed under the August/September 2025 Asset Management Agreement with Electric Treasury Edge, LLC, an affiliate of a >5% holder. The custodians under that agreement are explicitly 'cryptocurrency wallet providers,' and the manager collects 2% of NAV per year with a $2.0M annual minimum. So shareholders own a volatile, marked-to-market crypto pool run by a related party for a guaranteed fee — that structure, not any product, is what the $451M loss reflects.

Liquidity and capital allocation are equally alarming. Operating cash flow was -$26.1M against just $8.02M of cash, and current liabilities of $40.9M dwarf current assets of $13.6M (≈0.33x current ratio, deeply negative working capital). Yet the company spent $46.3M on share buybacks while diluting shares +291.7% — repurchasing stock with cash it does not generate, even as the accumulated deficit deepened to -$592M. The reported 0.28x liabilities/equity looks tame only because equity was artificially inflated by the asset-acquisition; it tells you nothing about the underlying cash stress.