Global Brokerage : Announces First Quarter 2021 Result

Global Brokerage, Inc.

Consolidated Statement of Financial Condition

As of March 31, 2021

(In thousands, except share data)

(Unaudited)

Assets
Current assets
Cash and cash equivalents	$	77,966
Cash and cash equivalents, held for customers		276,562
Due from brokers		3,111
Accounts receivable, net		2,478
Other assets - Current		5,761
Tax receivable		74
Total current assets		365,952
Deferred tax asset		224
Office, communication and computer equipment, net		23,048
Operating lease right-of-use-assets		13,133
Other intangible assets, net		1,007
Other assets - Non-current		3,961
Total assets	$	407,325
Liabilities, Redeemable non-controlling interest and Stockholders' deficit
Current liabilities
Customer account liabilities	$	276,562
Accounts payable and accrued expenses		17,086
Due to brokers		1,010
Operating lease liabilities - current		5,622
Credit Agreement		71,634
Other liabilities - current		248
Total current liabilities		372,162
Deferred tax liability		30
New Secured Notes		163,711
Operating lease liabilities - Non-current		13,825
Other liabilities - Non-current		1,453
Total liabilities		551,181
Redeemable non-controlling interest		20,308
Stockholders' deficit
Class A common stock, par value $0.01 per share; 3,000,000,000 shares authorized,		82
8,247,997 shares issued and outstanding
Additional paid-in-capital		361,197
Accumulated deficit		(523,351)
Accumulated other comprehensive loss		(2,130)
Total stockholders' deficit Global Brokerage, Inc.		(164,202)
Other non-controlling interests		38
Total stockholders' deficit		(164,164)
Total liabilities, Redeemable non-controlling interest and Stockholders' deficit	$	407,325

Global Brokerage, Inc.

Consolidated Statement of Operations

For the Three Months Ended March 31, 2021

(In thousands, except per share data)

(Unaudited)

Revenues

Trading revenue

Interest income

Brokerage interest expense

Net interest expense

Other income

Total net revenues

Operating Expenses

Compensation and benefits

Referring broker fees

Advertising and marketing

Communication and technology

Trading costs, prime brokerage and clearing fees

General and administrative

Depreciation

Total operating expenses

Operating Loss

Other Expense

Interest on borrowings

Loss from continuing operations before income taxes

Income tax provision

Loss from continuing operations

Loss from discontinued operations, net of tax

Net loss

Net loss attributable to redeemable non-controlling interest in FXCM Group, LLC Net loss attributable to other non-controlling interests

Net loss attributable to Global Brokerage, Inc.

Loss from continuing operations attributable to Global Brokerage, Inc. Loss from discontinued operations attributable to Global Brokerage, Inc. Net loss attributable to Global Brokerage, Inc.

Weighted average shares of Class A common stock outstanding - 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 Discontinued operations

Net loss attributable to Global Brokerage, Inc.

• 31,248
  56

	(239)
	(183)
	467
	31,532
	13,799
	2,309
	6,112
	3,778
	550
	6,673
	2,418
	35,639
	(4,107)
	8,672
	(12,779)
	220
	(12,999)
	(29)
	(13,028)
	(4,506)
	-
$	(8,522)
$	(8,522)
	-
$	(8,522)
	8,248
$	(1.03)
	-
$	(1.03)

Global Brokerage, Inc.

Consolidated Statement of Comprehensive Income

For the Three Months Ended March 31, 2021

(In thousands, unaudited)

Net loss	$	(13,028)
Other comprehensive loss
Foreign currency translation loss, net of tax		(470)
Other comprehensive income, net of tax		(470)
Comprehensive loss		(13,498)
Comprehensive loss attributable to redeemable non-controlling interest in FXCM Group,		(4,741)
LLC
Comprehensive loss attributable to other non-controlling interests		-
Comprehensive loss attributable to Global Brokerage, Inc.	$	(8,757)

Global Brokerage, Inc.

Consolidated Statement of Cash Flows

For the Three Months Ended March 31, 2021

(In thousands, unaudited)

Cash Flows From Operating Activities
Net loss	$	(13,028)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation		2,418
Right-of-use assets amortization		1,324
Deferred tax benefit		(6)
Amortization of discount - New Secured Notes		4,960
Amortization of issuance cost - New Secured Notes		54
Paid-in-kind interest - New Secured Notes		7,171
Changes in operating assets and liabilities:
Due from brokers		(2,095)
Accounts receivable, net		(438)
Tax receivable		149
Other assets - Current		(1,040)
Other assets - Non-current		(61)
Customer account liabilities		7,943
Accounts payable and accrued expenses		(8,234)
Lease liabilities		(1,622)
Other liabilities - Current		4
Other liabilities - Non-current		(16)
Due to brokers		(234)
Foreign currency remeasurement loss		382
Net cash used in operating activities		(2,369)
Cash Flows From Investing Activities
Purchases of office, communication and computer equipment		(820)
Payments for software development costs		(1,771)
Purchase of intangible assets		(119)
Net cash used in investing activities		(2,710)
Effect of foreign currency exchange rate changes on Cash and cash equivalents and Cash and		(412)
cash equivalents, held for customers
Net decrease in Cash and cash equivalents and Cash and cash equivalents, held for		(5,491)
customers
Cash and cash equivalents and Cash and cash equivalents, held for customers:
Beginning of period		360,019
End of period	$	354,528

Global Brokerage, Inc.

Consolidated Statement of Cash Flows - (continued)

For the Three Months Ended March 31, 2021

(In thousands, unaudited)

Cash and cash equivalents	$	77,966
Cash and cash equivalents, held for customers		276,562
Cash and cash equivalents and Cash and cash equivalents, held for customers - End of	$	354,528
period
Supplemental disclosures of cash flow activities
Net cash paid for taxes	$	417
Supplemental disclosure of non-cash investing activities
Non-cash recognition of lease right-of-use assets	$	1,578
Escrow withheld in connection with acquisition of intangible	$	200
Supplemental disclosure of non-cash financing activities
Paid-in-kind interest - New Secured Notes	$	7,171