Bexil : Reports 2022 Financial Results

BEXIL CORPORATION

2022 Annual Report

BEXIL CORPORATION

Contents

Letter to the Shareholders of Bexil Corporation	2
....................................................................................................................................................	6
Consolidated Financial Statements
Consolidated Balance Sheets	8
Consolidated Statements of Income	9
Consolidated Statements of Comprehensive Income	10
Consolidated Statements of Changes in Equity	11
Consolidated Statements of Cash Flows	12
Notes to Consolidated Financial Statements	13
Corporate Information	23

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BEXIL CORPORATION

To the Shareholders of Bexil Corporation:

, a holding company, is to increase book value per share over time for the benefit of its stockholders. We believe that long term stockholders will benefit from a rising book value as market recognition builds To achieve this objective, currently the Company is primarily engaged

through a wholly owned subsidiary, Bexil Advisers LLC , in investment management. Bexil Advisers is a registered

investment adviser and the investment manager to Dividend and Income Fund , a registered closed end investment company whose shares are quoted over the counter (stock symbol DNIF; net asset value per share symbol XDNIX). Management believes that the performance of DNIF is an important f

2022 Book Value per Share, Net Income, and Return on Equity

2022 year end amounted to about $25.5 million or $33.84 per share, down from about $27.1 million or $36.01 per share a year earlier, a per share decrease of about 6%. 2022 net loss according to generally accepted accounting principles

(commonly attributable to Bexil shareholders was $1.8 million or $2.34 per diluted share, as compared to 2021 net

income of $6.5 million or $7.99 per diluted share. Dividing 2022 net loss by 2021 year end n approximate 6.5% negative return on equity.

Consolidated Condition and Results

25.5 million of total assets, including cash and securities of about $21.6 million, and total liabilities of $0.16 million. Included on the balance sheet are the net deferred tax assets of $3.2 million allowed against 3.8 loss carryovers of approximately $13.6 million, which do not expire. The balance sheet also reflects a net intangible asset of about $0.4 million, which is the management agreement for an investment fund (DNIF) acquired by Bexil Advisers. The agreement was

acquired in 2011 for a price of about $4.3 million, when , compared to about $249 million at the 2022 year end. That intangible asset has been amortizing since 2011 over a 12 year schedule by roughly $0.4 million per year.

We focus on revenues from management and other fees derived from our investment management business, even though it might not be the largest item in our GAAP total revenue, as compared to total consolidated expenses. In each of 2022 and 2021, these operating revenues amounted to about $2.7 million while expenses decreased to roughly $1.8 million in 2022 from about $2.0 million in 2021.

GAAP other income includes realized and unrealized gain and loss on investments, which fluctuate from year to year reflecting the unpredictable swings of the stock market, as well as dividends and interest. In 2022 total other income showed a loss of $3.0 million, primarily from an unrealized loss on investments in securities of about $4.5 million, as compared to 2021 total other income of $6.0 million, primarily from unrealized gain on investments in securities of approximately $4.2 million.

The performance of the investment management business is discussed below.

Investment Management

e terms of the IMA, Bexil Advisers receives a fee payable monthly for investment advisory services at an annual rate of 0.95% of the

liabilities, which liabilities exclude debt relating to leverage, short term debt, and the aggregate liquidation preference of any outstanding 2022 audited statements of operations as of December 31, 2022 by this annual fee rate we can estimate that such managed assets in 2022 and 2021 averaged about $255 million and $258 million, respectively.

Management fees earned by Bexil Advisers were approximately $2.4 million in 2022, as compared to approximately $2.5 million in 2021. Pursuant to the IMA, the Fund also reimburses Bexil Advisers for providing at cost certain administrative services comprised of compliance and accounting services, which in 2022 amounted to about $0.24 million. Certain officers and managers of Bexil Advisers

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