Global Brokerage, Inc. Announces Third Quarter 2021 Result

Global Brokerage, Inc.

Consolidated Statement of Financial Condition

As of September 30, 2021

(In thousands, except share data)

(Unaudited)

Assets
Current assets
Cash and cash equivalents	$	59,525
Cash and cash equivalents, held for customers		274,148
Due from brokers		1,263
Accounts receivable, net		5,014
Other assets - Current		5,245
Tax receivable		102
Total current assets		345,297
Deferred tax asset		182
Office, communication and computer equipment, net		23,023
Operating lease right-of-use-assets		10,677
Other intangible assets, net		1,007
Other assets - Non-current		3,767
Total assets	$	383,953
Liabilities, Redeemable non-controlling interest and Stockholders' deficit
Current liabilities
Customer account liabilities	$	274,148
Accounts payable and accrued expenses		20,301
Due to brokers		1,309
Operating lease liabilities - current		4,709
Credit Agreement		71,634
Other liabilities - current		256
Total current liabilities		372,357
New Secured Notes		182,090
Operating lease liabilities - Non-current		11,691
Other liabilities - Non-current		1,325
Total liabilities		567,463
Redeemable non-controlling interest		-
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		(542,482)
Accumulated other comprehensive loss		(2,344)
Total stockholders' deficit Global Brokerage, Inc.		(183,547)
Other non-controlling interests		37
Total stockholders' deficit		(183,510)
Total liabilities, Redeemable non-controlling interest and Stockholders' deficit	$	383,953

Global Brokerage, Inc.

		September 30, 2021
Revenues		Three Months			Nine Months
Trading revenue	$	24,282	$	78,075
Interest Income		37			126
Brokerage interest expense		(276)			(778)
Net interest expense		(239)			(652)
Other income		357			1,241
Total net revenues		24,400			78,664
Operating Expenses
Compensation and benefits		13,405			41,199
Referring broker fees		2,176			6,502
Advertising and marketing		4,813			16,399
Communication and technology		2,608			10,204
Trading costs, prime brokerage and clearing fees		432			1,487
General and administrative		6,695			20,046
Depreciation and amortization		2,753			7,465
Total operating expenses		32,882			103,302
Operating Loss		(8,482)			(24,638)
Other Expense
Interest on borrowings		9,467			27,126
Loss from continuing operations before income taxes		(17,949)			(51,764)
Income tax provision		48			456
Loss from continuing operations		(17,997)			(52,220)
Loss from discontinued operations, net of tax		(21)			(34)
Net Loss		(18,018)			(52,254)
Net loss attributable to redeemable non-controlling interest in		(7,975)			(24,600)
FXCM Group, LLC
Net loss attributable to other non-controlling interests		-			(1)
Net loss attributable to Global Brokerage, Inc.	$	(10,043)		$	(27,653)
Loss from continuing operations attributable to Global Brokerage, Inc.		(10,043)	$	(27,653)
Loss from discontinued operations attributable to Global Brokerage,		-			-
Inc.
Net loss attributable to Global Brokerage, Inc.	$	(10,043)		$	(27,653)
Weighted average shares of Class A common stock outstanding -		8,248			8,248
Basic and Diluted
Net loss per share attributable to stockholders of Class A common
stock of Global Brokerage, Inc. - Basic and Diluted:
Continuing operations	$	(1.22)	$	(3.35)
Discontinued operations		-			-
Net loss attributable to Global Brokerage, Inc.	$	(1.22)		$	(3.35)

Global Brokerage, Inc.

Consolidated Statements of Comprehensive (Loss) Income

For the Three and Nine Months Ended September 30, 2021

(In thousands, unaudited)

		September 30, 2021
		Three Months			Nine Months
Net loss	$	(18,018)	$	(52,254)
Other comprehensive loss
Foreign currency translation loss, net of tax		(458)			(898)
Other comprehensive loss income, net of tax		(18,476)			(53,152)
Comprehensive income
Comprehensive loss attributable to redeemable non-controlling		(8,204)			(25,049)
interest in FXCM Group, LLC
Comprehensive loss attributable to other non-controlling interests		-			(1)
Comprehensive loss attributable to Global Brokerage, Inc.	$	(10,272)	$	(28,102)

Global Brokerage, Inc.

Consolidated Statement of Cash Flows

For the Nine Months Ended September 30, 2021

(In thousands, unaudited)

Cash Flows From Operating Activities
Net loss	$	(52,254)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation		7,465
Right-of-use assets amortization		4,003
Net deferred taxes		14
Amortization of discount - New Secured Notes		15,805
Amortization of issuance cost - New Secured Notes		166
Paid-in-kind interest - New Secured Notes		14,593
Changes in operating assets and liabilities:
Due from brokers		(247)
Accounts receivable, net		(2,974)
Tax receivable		121
Other assets - Current		(524)
Other assets - Non-current		133
Customer account liabilities		5,716
Accounts payable and accrued expenses		(5,021)
Lease liabilities		(4,897)
Other liabilities - Current		12
Other liabilities - Non-current		(145)
Due to brokers		65
Foreign currency remeasurement loss		414
Net cash used in operating activities		(17,555)
Cash Flows From Investing Activities
Purchases of office, communication and computer equipment		(2,117)
Payments for software development costs		(5,504)
Purchase of intangible assets		(119)
Net cash used in investing activities		(7,740)
Effect of foreign currency exchange rate changes on Cash and cash equivalents and Cash and		(1,051)
cash equivalents, held for customers
Net decrease in Cash and cash equivalents and Cash and cash equivalents, held for		(26,346)
customers
Cash and cash equivalents and Cash and cash equivalents, held for customers:
Beginning of period		360,019
End of period	$	333,673

Global Brokerage, Inc.

Consolidated Statement of Cash Flows - (continued)

For the Nine Months Ended September 30, 2021

(In thousands, unaudited)

Cash and cash equivalents	$	59,525
Cash and cash equivalents, held for customers		274,148
Cash and cash equivalents and Cash and cash equivalents, held for customers - End of	$	333,673
period
Supplemental disclosures of cash flow activities
Net cash paid for taxes	$	358
Supplemental disclosure of non-cash investing activities
Non-cash recognition of lease right-of-use assets	$	1,810
Escrow withheld in connection with acquisition of intangible	$	200
Supplemental disclosure of non-cash financing activities
Paid-in-kind interest - New Secured Notes	$	14,593