Global Brokerage : Announces Second Quarter 2022 Result

Global Brokerage, Inc.

Consolidated Statement of Financial Condition

As of June 30, 2022

(In thousands, except share data)

(unaudited)

Assets
Current assets
Cash and cash equivalents	$	68,999
Cash and cash equivalents, held for customers		284,846
Due from brokers		1,358
Accounts receivable, net		4,296
Other assets - Current		4,975
Tax receivable		319
Total current assets		364,793
Deferred tax asset		157
Office, communication and computer equipment, net		22,572
Operating lease right-of-use-assets		7,423
Other intangible assets, net		1,007
Other assets - Non-current		3,754
Total assets	$	399,706
Liabilities, Redeemable non-controlling interest and Stockholders' deficit
Current liabilities
Customer account liabilities	$	284,846
Accounts payable and accrued expenses		21,680
Due to brokers		1,170
Operating lease liabilities - current		4,369
Credit Agreement		71,634
New Secured Notes		208,957
Other liabilities - current		266
Total current liabilities		592,922
Operating lease liabilities - Non-current		8,128
Other liabilities - Non-current		1,080
Total liabilities		602,130
Redeemable non-controlling interest		11,499
Stockholders' deficit
Class A common stock, par value $0.01 per share; 3,000,000,000 shares authorized,
8,247,997 shares issued and outstanding		82
Additional paid-in-capital		361,197
Accumulated deficit		(572,139)
Accumulated other comprehensive loss		(3,149)
Total stockholders' deficit Global Brokerage, Inc.		(214,009)
Other non-controlling interests		86
Total stockholders' deficit		(213,923)
Total liabilities, Redeemable non-controlling interest and Stockholders' deficit	$	399,706

Global Brokerage, Inc.

Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2022

(In thousands, unaudited)

		June 30, 2022
	Three Months		Six Months
Revenues
Trading revenue	$	37,151	$	67,725
Interest Income		104		125
Other income		577		1,097
Total net revenues		37,832		68,947
Operating Expenses
Compensation and benefits		11,988		24,435
Referring broker fees		1,605		3,624
Advertising and marketing		5,017		9,785
Communication and technology		3,442		7,022
Trading costs, prime brokerage and clearing fees		484		1,020
General and administrative		7,117		14,030
Depreciation and amortization		2,528		5,173
Total operating expenses		32,181		65,089
Operating Income		5,651		3,858
Other Expense
Interest on borrowings		10,748		21,103
Loss from continuing operations before income taxes		(5,097)		(17,245)
Income tax provision		97		486
Loss from continuing operations		(5,194)		(17,731)
Income from discontinued operations, net of tax		70		752
Net Loss		(5,124)		(16,979)
Net income attributable to redeemable non-controlling interest in		5,045		2,255
FXCM Group, LLC
Net (loss) income attributable to other non-controlling interests		(7)		278
Net loss attributable to Global Brokerage, Inc.	$	(10,162)	$	(19,512)
Loss from continuing operations attributable to Global Brokerage, Inc.		(10,880)		(19,777)
Income from discontinued operations attributable to Global Brokerage,		718		265
Inc.
Net loss attributable to Global Brokerage, Inc.	$	(10,162)	$	(19,512)
Weighted average shares of Class A common stock outstanding -		8,248		8,248
Basic and Diluted
Net (loss) income per share attributable to stockholders of Class A
common stock of Global Brokerage, Inc. - Basic and Diluted:
Continuing operations	$	(1.32)	$	(2.40)
Discontinued operations		0.09		0.03
Net loss attributable to Global Brokerage, Inc.	$	(1.23)	$	(2.37)

Global Brokerage, Inc.

Consolidated Statements of Comprehensive (Loss) Income

For the Three and Six Months Ended June 30, 2022

(In thousands, unaudited)

June 30, 2022

Three Months

Six Months

Net loss

Other comprehensive loss

Foreign currency translation loss, net of tax Other comprehensive loss income, net of tax

Comprehensive income

Comprehensive income attributable to redeemable non-controlling interest in FXCM Group, LLC

Comprehensive (loss) income attributable to other non-controlling interests

Comprehensive loss attributable to Global Brokerage, Inc.

$

(5,124)

$

(16,979)

(1,348)(1,512)

(6,472) (18,491)

4,3711,499

(7)278

$

(10,836)

$

(20,268)

Global Brokerage, Inc.

Consolidated Statement of Cash Flows For the Six Months Ended June 30, 2022 (In thousands, unaudited)

Cash Flows From Operating Activities Net loss

Adjustments to reconcile net loss to net cash provided by operating activities

Depreciation

Right-of-use assets amortization

Deferred tax expense

Amortization of discount - New Secured Notes

Amortization of issuance cost - New Secured Notes

Paid-in-kind interest - New Secured Notes

Changes in operating assets and liabilities:

Due from brokers

Accounts receivable, net

Tax receivable

Other assets - Current

Other assets - Non-current

Customer account liabilities

Accounts payable and accrued expenses

Lease liabilities

Other liabilities - Current

Other liabilities - Non-current

Due to brokers

Foreign currency remeasurement loss

Net cash used in operating activities

Cash Flows From Investing Activities

Purchases of office, communication and computer equipment Payments for software development costs

Net cash used in investing activities

Cash Flows From Financing Activities

Distributions to non-controlling members

Contributions from redeemable non-controlling interest

Net cash provided by financing activities

Effect of foreign currency exchange rate changes on Cash and cash equivalents and Cash and cash equivalents, held for customers

Net decrease in Cash and cash equivalents and Cash and cash equivalents, held for customers

Cash and cash equivalents and Cash and cash equivalents, held for customers:

Beginning of period

End of period

Cash and cash equivalents

Cash and cash equivalents, held for customers

Cash and cash equivalents and Cash and cash equivalents, held for customers

- End of period

Supplemental disclosures of cash flow activities Net cash paid for taxes

Supplemental disclosure of non-cash investing activities Non-cash recognition of lease right-of-use assets Supplemental disclosure of non-cash financing activities Paid-in-kind interest - New Secured Notes

• (16,979)

5,173

2,170

21

13,091

118

7,682

(587)

996

127

(1,176)

(231)

(4,719)

(4,990)

(2,940)

7

(119)

336

208

(1,812)

(609)

(4,897)

(5,506)

(228)

10,000

9,772

(3,503)

(1,049)

354,894

• 353,845

• 68,999
  284,846

• 353,845

195

2,027

7,682