Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | May 27, 2022 | Sep. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2022 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33034 | ||
Entity Registrant Name | FREEDOM HOLDING CORP. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 30-0233726 | ||
Entity Address, Address Line One | “Esentai Tower” BC, Floor 7 | ||
Entity Address, Address Line Two | 77/7 Al Farabi Ave | ||
Entity Address, City or Town | Almaty | ||
Entity Address, Country | KZ | ||
Entity Address, Postal Zip Code | 050040 | ||
City Area Code | +7 727 | ||
Local Phone Number | 311 10 64 | ||
Title of 12(b) Security | Common | ||
Trading Symbol | FRHC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,004,696,511 | ||
Entity Common Stock, Shares Outstanding | 59,542,212 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2022 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K/A to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended March 31, 2022. | ||
Entity Central Index Key | 0000924805 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | Explanatory NoteThis Amendment No. 1 on Form 10-K/A (as amended, this “Annual Report on Form 10-K/A”) amends and restates certain items noted below in the Annual Report on Form 10-K of Freedom Holding Corp. (the “Company”) for the fiscal year ended March 31, 2022, as originally filed with the Securities and Exchange Commission (“SEC”) on May 21, 2022 (the “Original Form 10-K”). |
Audit Information
Audit Information | 12 Months Ended |
Mar. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 374 |
Auditor Name | WSRP, LLC |
Auditor Location | Salt Lake City, Utah |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 224,663 | $ 168,017 | $ 11,242 | |
Restricted cash | 547,950 | 490,691 | ||
Trading securities | 1,080,982 | 587,546 | ||
Available-for-sale securities, at fair value | 1 | 1 | ||
Brokerage and other receivables, net | 147,480 | 49,518 | ||
Loans issued | 92,403 | 9,626 | ||
Deferred tax assets | 857 | 0 | ||
Fixed assets, net | 17,387 | 15,571 | ||
Intangible assets, net | 3,512 | 3,902 | ||
Goodwill | 5,388 | 7,137 | ||
Right-of-use asset | 6,747 | 4,626 | ||
Other assets, net | 18,494 | 15,639 | ||
Total assets held for sale | 825,419 | 748,048 | ||
Total assets | 2,971,283 | 2,100,322 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Securities repurchase agreement obligations | 742,710 | 374,718 | ||
Customer liabilities | 766,627 | 671,825 | ||
Trade payables | 45,082 | 22,002 | ||
Current income tax liability | 14,556 | 14,199 | ||
Securities sold, not yet purchased - at fair value | 13,865 | 8,569 | ||
Loans received | 3,538 | 3,373 | ||
Debt securities issued | 34,390 | 31,349 | ||
Lease liability | 6,785 | 4,811 | ||
Deferred income tax liabilities | 0 | 4,007 | ||
Deferred distribution payments | 8,534 | 8,534 | ||
Other liabilities | 15,043 | 4,696 | ||
Total liabilities held for sale | 812,478 | 676,568 | ||
TOTAL LIABILITIES | 2,463,608 | 1,824,651 | ||
Commitments and Contingent Liabilities (Note 30) | 0 | 0 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 | ||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively | 59 | 58 | ||
Additional paid in capital | 141,340 | 104,672 | ||
Retained earnings | 426,563 | 208,628 | ||
Accumulated other comprehensive loss | (53,291) | (36,046) | ||
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY | 514,671 | 277,312 | ||
Non-controlling interest | (6,996) | (1,641) | ||
TOTAL SHAREHOLDERS' EQUITY | 507,675 | 275,671 | $ 129,037 | $ 117,597 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,971,283 | $ 2,100,322 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 59,542,212 | 58,443,212 |
Common stock, outstanding (in shares) | 59,542,212 | 58,443,212 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | |||
Fee and commission income | $ 335,444 | $ 215,996 | $ 61,192 |
Net gain on trading securities | 156,345 | 25,911 | 8,332 |
Interest income | 90,153 | 22,815 | 13,581 |
Net (loss)/gain on foreign exchange operations | 1,979 | 1,143 | 288 |
Net gain on derivatives | 946 | 86 | 0 |
TOTAL REVENUE, NET | 584,867 | 265,951 | 83,393 |
Expense: | |||
Fee and commission expense | 73,243 | 65,978 | 19,415 |
Interest expense | 65,449 | 18,606 | 10,200 |
Operating expense | 88,564 | 35,453 | 25,678 |
Provision for impairment losses/(recoveries) | 2,206 | 1,517 | (1,254) |
Other expense/(income), net | 1,312 | (106) | 263 |
TOTAL EXPENSE | 230,774 | 121,448 | 54,302 |
INCOME BEFORE INCOME TAX | 354,093 | 144,503 | 29,091 |
Income tax expense | (38,529) | (23,362) | (4,933) |
INCOME FROM CONTINUING OPERATIONS | 315,564 | 121,141 | 24,158 |
Income/(loss) before income tax (expense)/benefit of discontinued operations | (117,199) | 28,518 | (958) |
Income tax (expense)/benefit of discontinued operations | 13,004 | (6,735) | (1,070) |
Net (loss)/income from discontinued operations | (104,195) | 21,783 | (2,028) |
NET INCOME | 211,369 | 142,924 | 22,130 |
Less: Net (loss)/income attributable to non-controlling interest in subsidiary | (6,566) | 631 | (2,707) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 217,935 | 142,293 | 24,837 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | (71) |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | 71 | 0 |
Translation difference | (17,245) | 1,857 | (14,851) |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 194,124 | 144,852 | 7,208 |
Less: Comprehensive (loss)/income attributable to non-controlling interest in subsidiary | (6,566) | 631 | (2,707) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 200,690 | $ 144,221 | $ 9,915 |
Earnings from continuing operations per common share - basic (in dollars per share) | $ 5.43 | $ 2.06 | $ 0.46 |
Earnings from continuing operations per common share - Diluted (in dollars per share) | 5.43 | 2.06 | 0.46 |
(Loss)/earnings from discontinued operations per common share - basic (in dollars per share) | (1.75) | 0.37 | (0.03) |
(Loss)/earnings from discontinued operations per common share - Diluted (in dollars per share) | (1.75) | 0.37 | (0.03) |
Earnings Per Share, Basic (in dollars per share) | 3.67 | 2.44 | 0.43 |
Earnings Per Share, Diluted (in dollars per share) | $ 3.67 | $ 2.43 | $ 0.43 |
Weighted average number of shares, basic (in shares) | 59,378,207 | 58,388,445 | 58,163,691 |
Weighted average number of shares, diluted (in shares) | 59,378,207 | 58,442,921 | 58,251,588 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interest |
Shares issued, beginning of period (in shares) at Mar. 31, 2019 | 58,043,212 | |||||
Equity, beginning of period at Mar. 31, 2019 | $ 117,597 | $ 58 | $ 99,093 | $ 41,498 | $ (23,052) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 2,625 | 2,625 | ||||
Share based payment (in shares) | 85,000 | |||||
Share based payment | 1,052 | 1,052 | ||||
Exercise of options (in shares) | 230,000 | |||||
Exercise of options | 455 | 455 | ||||
Translation difference | (14,851) | (14,851) | ||||
Net income/(loss) | 22,130 | 24,837 | (2,707) | |||
Change in unrealized gain on available-for-sale securities, net of tax effect | (71) | (71) | ||||
Sale of Freedom UA shares | 100 | (335) | 435 | |||
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | |||||
Shares issued, end of period (in shares) at Mar. 31, 2020 | 58,358,212 | |||||
Equity, end of period at Mar. 31, 2020 | 129,037 | $ 58 | 102,890 | 66,335 | (37,974) | (2,272) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation (in shares) | 15,000 | |||||
Stock based compensation | 1,147 | 1,147 | ||||
Share based payment (in shares) | 10,000 | |||||
Share based payment | 517 | 517 | ||||
Exercise of options (in shares) | 60,000 | |||||
Exercise of options | 118 | 118 | ||||
Translation difference | 1,857 | 1,857 | ||||
Net income/(loss) | 142,924 | 142,293 | 631 | |||
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 71 | 71 | ||||
Shares issued, end of period (in shares) at Mar. 31, 2021 | 58,443,212 | |||||
Equity, end of period at Mar. 31, 2021 | 275,671 | $ 58 | 104,672 | 208,628 | (36,046) | (1,641) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation (in shares) | 1,039,000 | |||||
Stock based compensation | 15,746 | $ 1 | 15,745 | |||
Exercise of options (in shares) | 60,000 | |||||
Exercise of options | 119 | 119 | ||||
Translation difference | (17,245) | (17,245) | ||||
Net income/(loss) | 211,369 | 217,935 | (6,566) | |||
Sale of Freedom UA shares | 415 | (796) | 1,211 | |||
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | |||||
Capital contributions | 21,600 | 21,600 | ||||
Shares issued, end of period (in shares) at Mar. 31, 2022 | 59,542,212 | |||||
Equity, end of period at Mar. 31, 2022 | $ 507,675 | $ 59 | $ 141,340 | $ 426,563 | $ (53,291) | $ (6,996) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities | |||
NET INCOME | $ 211,369,000 | $ 142,924,000 | $ 22,130,000 |
Net (loss)/income from discontinued operations | (104,195,000) | 21,783,000 | (2,028,000) |
Net income from continued operations | 315,564,000 | 121,141,000 | 24,158,000 |
Adjustments to reconcile net income from operating activities: | |||
Depreciation and amortization | 2,614,000 | 2,079,000 | 1,105,000 |
Noncash lease expense | 3,214,000 | 2,310,000 | 2,728,000 |
Subsidiaries goodwill impairment | 832,000 | 0 | 0 |
Change in deferred taxes | (4,820,000) | 1,569,000 | 182,000 |
Stock compensation expense | 7,858,000 | 114,000 | 423,000 |
Share based payment | 0 | 517,000 | 1,053,000 |
Unrealized loss/(gain) on trading securities | 49,893,000 | (6,433,000) | 10,552,000 |
Net change in accrued interest | (12,933,000) | (11,153,000) | (278,000) |
Allowance/(recovery) for receivables | 2,206,000 | 1,516,000 | (1,254,000) |
Changes in operating assets and liabilities: | |||
Trading securities | (600,959,000) | (405,785,000) | (14,543,000) |
Brokerage and other receivables, net | (103,183,000) | 20,878,000 | (16,946,000) |
Other assets, net | (5,686,000) | (6,871,000) | (4,924,000) |
Securities sold, but not yet purchased - at fair value | 5,296,000 | 8,508,000 | 0 |
Brokerage customer liabilities | (23,237,000) | 431,926,000 | 69,817,000 |
Current income tax liability | 357,000 | 10,653,000 | 654,000 |
Trade payables | 26,124,000 | 16,445,000 | (21,715,000) |
Changes in lease liability | (3,351,000) | (2,134,000) | (2,711,000) |
Other liabilities | 9,704,000 | 2,140,000 | 176,000 |
Net cash flows (used in)/ from operating activities from continuing operations | (330,507,000) | 187,420,000 | 48,477,000 |
Net cash flows (used in)/from operating activities from discontinued operations | (112,500,000) | 347,017,000 | 34,145,000 |
Net cash flows used in operating activities | (443,007,000) | 534,437,000 | 82,622,000 |
Cash Flows From/(Used by) Investing Activities | |||
Purchase of fixed assets | (4,964,000) | (2,026,000) | (1,996,000) |
Proceeds from sale of fixed assets | 116,000 | 15,000 | 1,000 |
Proceeds from sale/(purchase) of available-for-sale securities, at fair value | 0 | 6,437,000 | (6,508,000) |
Purchase of intangible assets | (271,000) | 0 | 0 |
Loans purchased from microfinance organizations | (59,839,000) | 0 | 0 |
Loans sold to microfinance organization | 12,106,000 | 0 | 0 |
Net change in loans issued to customers | (41,620,000) | (1,048,000) | (7,801,000) |
Consideration paid for Zerich | 0 | (7,110,000) | 0 |
Consideration paid for PrimeEx | 0 | (2,500,000) | 0 |
Consideration paid for Freedom Bank KZ | 0 | (53,097,000) | 0 |
Cash, cash equivalents and restricted cash received from acquisitions | 0 | 157,382,000 | 0 |
Net cash flows (used in)/from investing activities from continuing operations | (94,472,000) | 98,053,000 | (16,304,000) |
Net cash flows (used in)/from investing activities from discontinued operations | (4,383,000) | (2,232,000) | (3,459,000) |
Net cash flows used in investing activities | (98,855,000) | 95,821,000 | (19,763,000) |
Cash Flows From Financing Activities | |||
Repurchase/(repayment) of securities repurchase agreement obligations | 416,044,000 | 296,664,000 | (14,586,000) |
Proceeds from issuance of debt securities | 13,200,000 | 3,626,000 | 26,933,000 |
Repurchase of debt securities | (9,988,000) | (8,350,000) | (9,585,000) |
Repurchase of mortgage loans under the State Program | (146,000) | 0 | 0 |
Funds received under state program for financing of mortgage loans | 7,022,000 | 0 | 0 |
Net change in bank customer deposits | 142,364,000 | 8,483,000 | 0 |
Exercise of options | 119,000 | 118,000 | 0 |
Proceeds from loans received | 0 | 3,300,000 | 0 |
Repayment of loans received | 0 | 0 | (4,008,000) |
Proceeds from share capital increase | 0 | 0 | 455,000 |
Net cash flows from financing activities from continuing operations | 568,615,000 | 303,841,000 | (791,000) |
Net cash flows from financing activities from discontinued operations | 39,205,000 | 100,582,000 | 58,866,000 |
Net cash flows from financing activities | 607,820,000 | 404,423,000 | 58,075,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from continuing operations | (14,264,000) | 1,883,000 | (2,731,000) |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | (40,288,000) | (5,652,000) | (22,410,000) |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | (54,552,000) | (3,769,000) | (25,141,000) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 11,406,000 | 1,030,912,000 | 95,793,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM CONTINUING OPERATIONS | 658,708,000 | 76,820,000 | 62,093,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM DISCONTINUED OPERATIONS | 559,385,000 | 110,361,000 | 29,295,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,218,093,000 | 187,181,000 | 91,388,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM CONTINUING OPERATIONS | 772,613,000 | 658,708,000 | 76,820,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM DISCONTINUED OPERATIONS | 456,886,000 | 559,385,000 | 110,361,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 1,229,499,000 | 1,218,093,000 | 187,181,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | (26,336,000) | (15,508,000) | (8,696,000) |
Income taxes paid | (44,473,000) | (11,017,000) | (4,053,000) |
Supplemental non-cash disclosures: | |||
Operating lease right-of-use assets obtained in exchange for operating lease obligations on adoption of new lease standard | 0 | 0 | 16,979,000 |
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | 6,987,000 | 1,269,000 | 523,000 |
Cash and cash equivalents | 224,663,000 | 168,017,000 | 11,242,000 |
Restricted cash | 547,950,000 | 490,691,000 | 65,578,000 |
Total cash, cash and cash equivalents and restricted cash shown in the statement of cash flows | $ 772,613,000 | $ 658,708,000 | $ 76,820,000 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Overview Freedom Holding Corp. (the "Company" or "FRHC") is a corporation organized in the United States under the laws of the State of Nevada that through its operating subsidiaries provides financial services including retail securities brokerage, research, investment counseling, securities trading, market making, retail banking, corporate investment banking and underwriting services in Eurasia. The Company is headquartered in Almaty, Kazakhstan, with supporting administrative office locations in Russia, Cyprus and the United States. The Company has retail locations in Kazakhstan, Russia, Ukraine, Uzbekistan, Kyrgyzstan, Azerbaijan, Armenia, Cyprus, the UK, Greece, Spain, France and Germany. The Company also owns an U.S. Securities and Exchange Commission ("SEC") registered broker dealer. The Company's common stock trades on the Nasdaq Capital Market. As of March 31, 2022, the Company owned directly, or through subsidiaries, the following companies: • Investment Company Freedom Finance LLC, a Moscow, Russia-based securities broker-dealer ("Freedom RU"); • FFIN Bank LLC, a Moscow, Russia-based bank ("Freedom Bank RU"); • Freedom Finance JSC, an Almaty, Kazakhstan-based securities broker-dealer ("Freedom KZ"); • Freedom Finance Global PLC, an Astana International Financial Centre-based securities broker-dealer, ("Freedom Global"); • Bank Freedom Finance Kazakhstan JSC, an Almaty, Kazakhstan-based bank ("Freedom Bank KZ"); • Freedom Finance Special Purpose Company LTD, an Astana International Financial Centre-based special purpose company ("Freedom SPC"); • Freedom Finance Commercial LLP, a Kazakhstan-based sales consulting company ("Freedom Commercial"); • Freedom Finance Europe Limited, a Limassol, Cyprus-based broker-dealer ("Freedom EU"); • Freedom Finance Technologies Ltd, a Limassol, Cyprus-based IT development company ("Freedom Technologies"); • Freedom Finance Germany GmbH, a Berlin, Germany-based tied agent of Freedom EU ("Freedom GE"); • Freedom UK Prime Limited, a London, United Kingdom-based financial intermediary company ("Prime UK"); • Freedom Finance Uzbekistan LLC, a Tashkent, Uzbekistan-based broker-dealer ("Freedom UZ"); • Freedom Finance Azerbaijan LLC, an Azerbaijan-based financial educational center ("Freedom AZ"); • Freedom Finance Armenia LLC, an Armenia-based broker-dealer ("Freedom AR"); • Prime Executions, Inc., a New York City, New York-based NYSE institutional brokerage, that recently received approval to engage in certain capital markets and investment banking activities ("PrimeEx"); and • FFIN Securities, Inc., a currently-dormant Nevada corporation ("FFIN"). The Company also owns a 9% interest in Freedom Finance Ukraine LLC, a Kiev, Ukraine-based broker-dealer ("Freedom UA"). The remaining 91% interest in Freedom UA is owned by Askar Tashtitov, the Company's president. The Company has entered into a series of contractual arrangements with Freedom UA and Mr. Tashtitov, including a consulting services agreement, an operating agreement and an option agreement. Because such agreements obligate the Company to guarantee the performance of all Freedom UA obligations and provide Freedom UA sufficient funding to cover all Freedom UA operating losses and net capital requirements, enable the Company to receive 90% of the net profits of Freedom UA after tax, and require the Company to provide Freedom UA the management competence, operational support, and ongoing access to the Company's significant assets, necessary technology resources and expertise to conduct the business of Freedom UA, the Company accounts for Freedom UA as a variable interest entity ("VIE") under the accounting standards of the Financial Accounting Standards Board ("FASB"). Accordingly, the financial statements of Freedom UA are consolidated into the financial statements of the Company. Prior to July 2021 we owned approximately 32.9% of Freedom UA, but due to changes to Ukrainian regulations restricting foreign ownership of registered Ukrainian broker-dealers, in July 2021 we were required to sell approximately 23.9% of our equity interest in Freedom UA to Mr. Tashtitov, reducing our direct ownership interest in Freedom UA to approximately 9%. On October 17, 2022, the Company entered into an agreement to sell its Russian subsidiaries, Freedom RU and Freedom Bank RU. For financial information regarding the Company's Russian subsidiaries see Note 26 - Assets and Liabilities held for sale and Divestiture of our Russian Subsidiaries in the Overview section of Management's Discussion and Analysis of Financial Condition and Results of Operations in this annual report on Form 10-K/A. The Company's subsidiaries are participants on the Kazakhstan Stock Exchange (KASE), Astana Stock Exchange (AIX), Moscow Exchange (MOEX), Saint-Petersburg Exchange (SPBX), the Ukrainian Exchange (UX), the Republican Stock Exchange of Tashkent (UZSE) and the Uzbek Republican Currency Exchange (UZCE) and members of the New York Stock Exchange (NYSE) and Nasdaq Stock Exchange (Nasdaq). We also own a 24.3% interest in the UX. Freedom EU serves to provide the Company's clients with operations support and access to the investment opportunities, relative stability, and integrity of the U.S. and European securities markets. Unless otherwise specifically indicated or as is otherwise contextually required, FRHC, Freedom RU, Freedom Bank RU, Freedom KZ, Freedom Global, Freedom Bank KZ, Freedom EU, Prime UK, Freedom GE, Freedom UZ, PrimeEx, Freedom Technologies, Freedom AZ, FFIN, Freedom SPC, Freedom Commercial, Freedom AR and Freedom UA collectively referred to herein as the "Company". |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting principles The Company's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). These financial statements have been prepared on the accrual basis of accounting. Basis of presentation and principles of consolidation The Company's consolidated financial statements present the consolidated accounts of FRHC, Freedom RU, Freedom Bank RU, Freedom KZ, Freedom Global, Freedom Bank KZ, Freedom EU, Freedom GE, Freedom UZ, PrimeEx, Freedom Technologies, Freedom AZ, FFIN, Freedom SPC, Freedom Commercial, Freedom AR and Freedom UA. All significant inter-company balances and transactions have been eliminated from the consolidated financial statements. Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing the Company's financial statements are reasonable and prudent. Actual results could differ from those estimates. Revenue and expense recognition Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other U.S. GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Company's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of non-interest income are as follows: • Commissions on brokerage services; • Commissions on banking services (money transfers, foreign exchange operations and other); and • Commissions on investment banking services (underwriting, market making, and bondholders' representation services). Under Topic 606, the Company is required to recognize incentive fees when they are probable and there is not a significant chance of reversal in the future. The Company recognizes revenue in accordance with the core principle by applying the following steps: • Step 1: Identify the contract(s) with a customer - A contract is an agreement between two or more parties that creates enforceable rights and obligations. • Step 2: Identify the performance obligations in the contract - A contract includes promises to transfer goods or services to a customer. If those goods or services are distinct, the promises are performance obligations and are accounted for separately. • Step 3: Determine the transaction price - The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The transaction price can be a fixed amount of customer consideration, but it may sometimes include variable consideration or consideration in a form other than cash. The transaction price also is adjusted for the effects of the time value of money if the contract includes a significant financing component and for any consideration payable to the customer. If the consideration is variable, an entity estimates the amount of consideration to which it will be entitled in exchange for the promised goods or services. The estimated amount of variable consideration will be included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. • Step 4: Allocate the transaction price to the performance obligations in the contract - An entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract. If a standalone selling price is not observable, an entity estimates it. Sometimes, the transaction price includes a discount or a variable amount of consideration that relates entirely to a part of the contract. • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation - An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer services to a customer). For performance obligations satisfied over time, an entity recognizes revenue over time by selecting an appropriate method for measuring the entity's progress toward complete satisfaction of that performance obligation. Interest income Interest income on loans issued, trading securities and reverse repurchase agreement obligations are recognized based on the contractual provisions of the underlying arrangements. Loan premiums and discounts are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. Unamortized premiums, discounts and other basis adjustments on trading securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. Loans The Company's loan portfolio is divided into three portfolio segments: credit cards, mortgages and retail banking loans. Credit cards consist of loans provided to individuals and businesses through the cards. Mortgage loans consist of loans provided to individuals to purchase real estate, which is used as collateral for the loan. Retail banking loans consist of unsecured loans provided to individuals. Loans Acquired All purchased loans are initially recorded at fair value, which includes consideration of expected future losses, at the date of the loan acquisition. To determine the fair value of loans at the date of acquisition, the Company estimates the discounted contractual cash flows due using an observable market rate of interest, adjusted for factors such as probable default rates of the borrowers, and the loan terms that a market participant would consider in determining fair value. In determining fair value, contractual cash flows are adjusted to include prepayment estimates based upon historical payment trends, forecasted default rates and loss severities and other relevant factors. The difference between the fair value and the contractual cash flows is recorded as a loan premium or discount, which may relate to either credit or non-credit factors, at acquisition. The Company accounts for purchased loans under the accounting guidance for purchased financial assets with credit deterioration when, at the time of purchase, the loans have experienced a more-than-insignificant deterioration in credit quality since origination. The Company recognizes an allowance for credit losses on purchased loans that have not experienced a more-than-insignificant deterioration in credit quality since origination at the time of purchase through earnings in a manner that is consistent with originated loans. The policies relating to the allowance for credit losses on loans is described below in the "Estimate of Incurred Loan Losses" section of this Note. Estimate of Incurred Loan Losses The allowance represents management's current estimate of incurred loan losses inherent in the Company's loan portfolio as of each balance sheet date. The provision for credit losses reflects credit losses the Company believes have been incurred and will eventually be recognized over time through charge-offs. Management performed a quarterly analysis of the Company's loan portfolio to determine if impairment had occurred and to assess the adequacy of the allowance based on historical and current trends as well as other factors affecting credit losses. The Company applied separate calculations of the allowances for its credit cards, mortgages and retail loan portfolios. Based on the adopted methodology, the Company estimated the probability of default based on historical default rates, adjusted for certain macro indicators, such as GDP, average exchange rates, unemployment rate and real wage index. Loss given default is calculated based on the collateral coverage of the loans. The Company's allowance for loan losses consists of two components that are allocated to cover the estimated probable losses in each loan portfolio based on the results of the Company's detailed review and loan impairment assessment process: (i) a component for loans collectively evaluated for impairment; and (ii) an asset-specific component for individually impaired loans. Derivative financial instruments In the normal course of business, the Company invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. Functional currency Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company's functional currencies are the Russian ruble, European euro, U.S. dollar, Ukrainian hryvnia, Uzbekistani som, Kazakhstan tenge, Kyrgyzstani som, Azerbaijani manat and Armenian dram, Great Britain pound, Armenian dram and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders' equity as "Accumulated other comprehensive loss". Cash and cash equivalents Cash and cash equivalents are generally comprised of certain highly liquid investments with maturities of three months or less at the date of purchase. Cash and cash equivalents include reverse repurchase agreements which are recorded at the amounts at which the securities were acquired or sold plus accrued interest. Securities reverse repurchase and repurchase agreements A reverse repurchase agreement is a transaction in which the Company purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Company sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Company retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers' needs and to finance its inventory positions. The Company enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. Available-for-sale securities Financial assets categorized as available-for-sale ("AFS") are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Listed shares and listed redeemable notes held by the Company that are traded in an active market are classified as AFS and are stated at fair value. The Company has investments in unlisted shares that are not traded in an active market but that are also classified as investments AFS and stated at fair value (because Company management considers that fair value can be reliably measured). Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive loss, with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, dividend income and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments' revaluation reserve is then reclassified to Consolidated Statements of Operations and Statements of Other Comprehensive Income. Trading securities Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in net gain on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Margin lending The Company engages in securities financing transactions with and for clients through margin lending. Under agreements, the Company is permitted to sell or repledge securities received as collateral and use these securities to secure securities acquired under resale agreements, enter into securities lending transactions or deliver these securities to counterparties to cover short positions. Debt securities issued Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Company purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Brokerage and other receivables Brokerage and other receivables comprise commissions and receivables related to the securities brokerage and banking activity of the Company. At initial recognition, brokerage and other receivables are recognized at fair value. Subsequently, brokerage and other receivables are carried at cost net of any allowance for impairment losses. Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: • The transferred financial assets have been isolated from the Company - put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership. • The transferee has rights to pledge or exchange financial assets. • The Company or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Company has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of March 31, 2022, the Company recognized write-off expenses of client base that was recognized with the acquisition of Zerich in the amount of $— due to economic uncertainty during our fourth fiscal quarter stemming from the Russia/Ukraine Conflict, Impairment of goodwill As of March 31, 2022 and 2021, goodwill recorded in the Company's Consolidated Balance Sheets totaled $5,388 and $7,137 respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. In its annual goodwill impairment test, the Company estimated the fair value of the reporting unit based on the income approach (also known as the discounted cash flow method) and determined the fair value of the Company's goodwill exceeded the carrying amount of the Company's goodwill. During the year ended March 31, 2022, the conflict between Russia and Ukraine escalated, and military operations began on the territory of Ukraine. The conflict resulted in sanctions being imposed on Russia. As a result of this conflict, the Company's subsidiaries operating in Russia and Ukraine incurred significant losses. The current uncertainty surrounding the conflict between Russia and Ukraine makes it difficult to perform reasonable projections of future income and expenses of the Russian and Ukrainian subsidiaries. The Company recognized impairment loss for the goodwill previously recognized for Freedom Bank RU, Freedom UA and Zerich in the amount of $2,300 through other expenses,net as presented on the consolidated statements of operations and statements of other comprehensive income. The goodwill value at March 31, 2022 decreased compared to March 31, 2021, due to impairment of goodwill of Freedom Bank RU, Freedom UA, Zerich and foreign exchange currency translation. The changes in the carrying amount of goodwill for the year ended March 31, 2022, were as follows: Amount Balance as of March 31, 2021 $ 7,137 Impairment of goodwill of Zerich, Freedom Bank RU and Freedom UA (2,300) Foreign currency translation 551 Balance as of March 31, 2022 $ 5,388 Asset and Liabilities Held for Sale The Company classifies assets and liabilities as held for sale in the period when all of the relevant criteria to be classified as held for sale are met. Criteria include management's commitment to sell such assets and liabilities ("the disposal group") in their present condition and the sale being deemed probable of being completed within one year. Assets held for sale are reported at the lower of their carrying value or fair value less cost to sell. Any loss resulting from the measurement is recognized in the period the held for sale criteria are met. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the initial carrying value of the disposal group. Assets held for sale are not amortized or depreciated. A disposal group that represents a strategic shift for the Company or is acquired with the intention to sell is reflected as a discontinued operation on the Consolidated Statements of Operation and Statement of Other Comprehensive Income and prior periods are recast to reflect the earnings or losses as income from discontinued operations. The Consolidated Financial Statements and related Notes reflect the securities brokerage and complementary banking operations in Russia as discontinued operations as the Company has entered into an agreement to divest these operations. For the purpose of preparing current amended consolidated financial statements, the Company has reclassified Russian business's assets and liabilities as held for sale. Additional information is presented in Note 3 "Recast". Income taxes The Company recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company will include interest and fines arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of March 31, 2022 and 2021, the Company had no accrued interest or fines related to uncertain tax positions. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has presented the deferred tax impacts of GILTI tax in its consolidated financial statements as of March 31, 2022 and 2021. Financial instruments Financial instruments are carried at fair value as described below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. Fair value is the current bid price for financial assets, current ask price for financial liabilities and the average of current bid and ask prices when the Company is both in short and long positions for the financial instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange or other institution and those prices represent actual and regularly occurring market transactions on an arm's length basis. Leases The Company follows ASU No. 2016-02, "Leases (Topic 842)," which requires leases with durations greater than twelve months to be recognized on the balance sheet. Operating lease assets and corresponding lease liabilities were recognized on the Company's Consolidated Balance Sheets. Refer to Note 29 - Leases, within the notes to consolidated financial statements for additional disclosure and significant accounting policies affecting leases. Fixed assets Fixed assets are carried at cost, net of accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range between three Segment information Historically, the Company's chief operating decision maker ("CODM"), who is its chief executive officer, has operated the Company as a single operating segment offering financial services to its customers in a single geographic region covering Eurasia. In conjunction with the decision to divest the Company of its Russian subsidiaries, and its continued expansion, the Company has restructured its operations into five geographical regions ("segments"): Kazakhstan, Europe, the U.S., Middle East/Causcasus, and Russian (planned to be divested). In order to determine appropriate segment disclosure ASC 280-10-55-26 the Company followed steps: • Identified operating segments using the management approach; • Determined whether two or more operating segments may be aggregated into a single operating segment; • Applied the quantitative thresholds and other criteria to determine reportable segments; • Considered what information should be disclosed for each reportable segment; • Considered what information should be disclosed on an entity-wide basis. Advertising expense For the years ended March 31, 2022, 2021 and 2020 the Company had expenses related to advertising in the amount of $10,059, $5,027 and $3,444 respectively. All costs associated with advertising are expensed in the period incurred. Recent accounting pronouncements In June 2016 the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. In November 2019, the FASB issued ASU 2019-10 "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)". The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two). Those other entities include private companies, smaller public companies, not-for-profit organizations, and employee benefit plans. Under this philosophy, a major update would first be effective for bucket-one entities, that is, public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC's definition. The Master Glossary of the Codification defines public business entities and SEC filers. All other entities, including SRCs, other public business entities, and nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, it is anticipated that the Board will consider requiring an effective date staggered at least two years after bucket one for major updates. The Company is currently an SRC and according to ASU 2019-10, qualifies for bucket two. Accordingly, ASU 2016-13 and ASU 2017-12 are effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that ASU 2016-13 and 2017-12 will have on its consolidated financial statements and related disclosures. In May 2021 the FASB issued Accounting Standards Update No. 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, a consensus of the Emerging Issues Task Force (EITF) , which amends the FASB Accounting Standards Codification (ASC or the"Codification") to provide explicit guidance, and, thus, reduce diversity in practice, on accounting by issuers for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange. This amendment provides that for an entity that presents earnings per share (EPS) in accordance with Topic 260, the effects of a modification or an exchange of a freestanding equity-classified written call option that is recognized as a dividend should be an adjustment to net income (or net loss) in the basic EPS calculation. The amended guidance becomes mandatorily effective for all entities for fiscal years beginning af |
RECAST
RECAST | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recast | RECAST On October 17, 2022, the Company entered into an agreement with Mr. Maxim Povalishin for the sale of the Company's subsidiaries comprising the Russian segment. Because the assets and liabilities to be disposed of met the held for sale criteria, such subsidiaries are presented as discontinued operations in accordance with ASC 205 and 360 in the consolidated financial statements as of and for the year ended March 31, 2022 and in the corresponding periods of 2021 and 2020 for comparative purposes. For additional information see Note 26 - Assets and Liabilities held for sale. The previously issued Consolidated Balance Sheet as of March 31, 2022 and March 31, 2021, and Consolidated Statement of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022, March 31, 2021 and March 31, 2020, have been revised as follows: As of March 31, 2022 As previously reported Recast discontinued operations As recast ASSETS Cash and cash equivalents $ 625,547 $ (400,884) $ 224,663 Restricted cash 553,680 (5,730) 547,950 Trading securities 1,203,479 (122,497) 1,080,982 Available-for-sale securities, at fair value 1 — 1 Brokerage and other receivables, net 357,567 (210,087) 147,480 Loans issued 94,797 (2,394) 92,403 Deferred tax assets 12,018 (11,161) 857 Fixed assets, net 21,365 (3,978) 17,387 Intangible assets, net 5,791 (2,279) 3,512 Goodwill 5,388 — 5,388 Right-of-use asset 15,669 (8,922) 6,747 Other assets, net 25,707 (7,213) 18,494 Assets held for sale — 825,419 825,419 TOTAL ASSETS $ 2,921,009 $ 50,274 $ 2,971,283 LIABILITIES AND SHAREHOLDERS' EQUITY Securities repurchase agreement obligations $ 775,178 $ (32,468) $ 742,710 Customer liabilities 1,417,937 (651,310) 766,627 Trade payables 45,229 (147) 45,082 Current income tax liability 14,556 — 14,556 Securities sold, not yet purchased - at fair value 14,103 (238) 13,865 Loans received 3,538 — 3,538 Debt securities issued 99,027 (64,637) 34,390 Lease liability 15,315 (8,530) 6,785 Deferred income tax liabilities — — — Deferred distribution payments 8,534 — 8,534 Other liabilities 19,917 (4,874) 15,043 Liabilities held for sale — 812,478 812,478 TOTAL LIABILITIES $ 2,413,334 $ 50,274 $ 2,463,608 Commitments and Contingent Liabilities (Note 30) — — — SHAREHOLDERS' EQUITY Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding — — — Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively 59 — 59 Additional paid in capital 141,340 — 141,340 Retained earnings 426,563 — 426,563 Accumulated other comprehensive loss (53,291) — (53,291) TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY $ 514,671 $ — $ 514,671 Non-controlling interest (6,996) — (6,996) TOTAL SHAREHOLDERS' EQUITY $ 507,675 $ — $ 507,675 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,921,009 $ 50,274 $ 2,971,283 As of March 31, 2021 As previously reported Recast discontinued operations As recast ASSETS Cash and cash equivalents $ 698,828 $ (530,811) $ 168,017 Restricted cash 437,958 52,733 490,691 Trading securities 736,188 (148,642) 587,546 Available-for-sale securities, at fair value 1 — 1 Brokerage and other receivables, net 64,801 (15,283) 49,518 Loans issued 11,667 (2,041) 9,626 Fixed assets, net 18,385 (2,814) 15,571 Intangible assets, net 9,785 (5,883) 3,902 Goodwill 7,868 (731) 7,137 Right-of-use asset 13,262 (8,636) 4,626 Other assets 19,902 (4,263) 15,639 Assets held for sale — 748,048 748,048 TOTAL ASSETS $ 2,018,645 $ 81,677 $ 2,100,322 LIABILITIES AND SHAREHOLDERS’ EQUITY Securities repurchase agreement obligations $ 426,715 $ (51,997) $ 374,718 Customer liabilities 1,163,697 (491,872) 671,825 Trade payables 22,304 (302) 22,002 Current income tax liability 14,843 (644) 14,199 Securities sold, not yet purchased – at fair value 8,592 (23) 8,569 Loans received 3,373 — 3,373 Debt securities issued 68,443 (37,094) 31,349 Lease liability 13,249 (8,438) 4,811 Deferred income tax liabilities 4,385 (378) 4,007 Deferred distribution payments 8,534 — 8,534 Other liabilities 8,839 (4,143) 4,696 Liabilities held for sale — 676,568 676,568 TOTAL LIABILITIES $ 1,742,974 $ 81,677 $ 1,824,651 Commitments and Contingent Liabilities (Note 30) — — — SHAREHOLDERS’ EQUITY Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding — — — Common stock - $0.001 par value; 500,000,000 shares authorized; 58 — 58 Additional paid in capital 104,672 — 104,672 Retained earnings 208,628 — 208,628 Accumulated other comprehensive loss (36,046) — (36,046) TOTAL FRHC SHAREHOLDERS’ EQUITY $ 277,312 $ — $ 277,312 Non-controlling interest (1,641) — (1,641) TOTAL SHAREHOLDERS’ EQUITY $ 275,671 $ — $ 275,671 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,018,645 $ 81,677 $ 2,100,322 Year ended March 31, 2022 As previously reported* Recast discontinued operations As recast Revenue: Fee and commission income $ 417,774 $ (82,330) $ 335,444 Net gain on trading securities 77,671 78,674 156,345 Interest income 105,965 (15,812) 90,153 Net loss on foreign exchange operations (37,693) 39,672 1,979 Net gain on derivative 946 — 946 TOTAL REVENUE, NET 564,663 20,204 584,867 Expense: Fee and commission expense 81,231 (7,988) 73,243 Interest expense 75,899 (10,450) 65,449 Operating expense 161,593 (73,029) 88,564 Provision for impairment losses 2,985 (779) 2,206 Other expense, net 6,061 (4,749) 1,312 TOTAL EXPENSE 327,769 (96,995) 230,774 INCOME BEFORE INCOME TAX 236,894 117,199 354,093 Income tax expense (25,525) (13,004) (38,529) INCOME FROM CONTINUING OPERATIONS 211,369 104,195 315,564 Income/(loss) before income tax (expense)/benefit of discontinued operations — (117,199) (117,199) Income tax (expense)/benefit of discontinued operations — 13,004 13,004 Income/(loss) from discontinued operations — (104,195) (104,195) NET INCOME 211,369 — 211,369 Less: Net loss attributable to non-controlling interest in subsidiary (6,566) — (6,566) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 217,935 $ — $ 217,935 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — — — Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — — — Foreign currency translation adjustments, net of tax effect (17,245) — (17,245) OTHER COMPREHENSIVE INCOME/(LOSS) (17,245) — (17,245) COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 194,124 $ — $ 194,124 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (6,566) — (6,566) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 200,690 $ — $ 200,690 For the year ended March 31, 2022, the Company’s EPS as reported was 3.56 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 5.43 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.67 for both basic and diluted total EPS. Year ended March 31, 2021 As previously reported* Recast discontinued operations As recast Revenue: Fee and commission income $ 268,776 $ (52,780) $ 215,996 Net gain on trading securities 46,186 (20,275) 25,911 Interest income 34,036 (11,221) 22,815 Net gain on foreign exchange operations 3,428 (2,285) 1,143 Net gain on derivative 125 (39) 86 TOTAL REVENUE, NET 352,551 (86,600) 265,951 Expense: Fee and commission expense 73,100 (7,122) 65,978 Interest expense 27,366 (8,760) 18,606 Operating expense 77,434 (41,981) 35,453 Provision for impairment losses 1,561 (44) 1,517 Other expense/(income), net 68 (174) (106) TOTAL EXPENSE 179,529 (58,081) 121,448 INCOME BEFORE INCOME TAX 173,022 (28,519) 144,503 Income tax expense (30,098) 6,736 (23,362) INCOME FROM CONTINUING OPERATIONS 142,924 (21,783) 121,141 Income before income tax expense of discontinued operations — 28,518 28,518 Income tax expense of discontinued operations — (6,735) (6,735) Income from discontinued operations — 21,783 21,783 NET INCOME 142,924 — 142,924 Less: Net income attributable to non-controlling interest in subsidiary 631 — 631 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 142,293 $ — $ 142,293 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — — — Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect 71 — 71 Foreign currency translation adjustments, net of tax effect 1,857 — 1,857 OTHER COMPREHENSIVE INCOME 1,928 — 1,928 COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 144,852 $ — $ 144,852 Less: Comprehensive income attributable to non-controlling interest in subsidiary 631 — 631 COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 144,221 $ — $ 144,221 For the year ended March 31, 2021, the Company’s EPS as reported was 2.45 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 2.06 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.44 and 2.43 for basic and diluted total EPS, respectively. Year ended March 31, 2020 As previously reported* Recast discontinued operations As recast Revenue: Fee and commission income $ 87,473 $ (26,281) $ 61,192 Net gain on trading securities 14,923 (6,591) 8,332 Interest income 17,329 (3,748) 13,581 Net gain/(loss) on foreign exchange operations 2,315 (2,027) 288 Net loss on derivative (138) 138 — TOTAL REVENUE, NET 121,902 (38,509) 83,393 Expense: Fee and commission expense 21,936 (2,521) 19,415 Interest expense 12,399 (2,199) 10,200 Operating expense 59,990 (34,312) 25,678 Provision for impairment recoveries (1,164) (90) (1,254) Other expense, net 609 (346) 263 TOTAL EXPENSE 93,770 (39,468) 54,302 INCOME BEFORE INCOME TAX 28,132 959 29,091 Income tax expense (6,002) 1,069 (4,933) INCOME FROM CONTINUING OPERATIONS 22,130 2,028 24,158 Income/(loss) before income tax (expense)/benefit of discontinued operations — (958) (958) Income tax expense of discontinued operations — (1,070) (1,070) Income/(loss) from discontinued operations — (2,028) (2,028) NET INCOME 22,130 — 22,130 Less: Net loss attributable to non-controlling interest in subsidiary (2,707) — (2,707) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 24,837 $ — $ 24,837 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect (71) — (71) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — — — Foreign currency translation adjustments, net of tax effect (14,851) — (14,851) OTHER COMPREHENSIVE INCOME/(LOSS) (14,922) — (14,922) COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 7,208 $ — $ 7,208 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (2,707) — (2,707) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 9,915 $ — $ 9,915 For the year ended March 31, 2020, the Company’s EPS as reported was 0.38 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 0.46 for both basic and diluted EPS for continuing operations, to (0.03) for both basic and diluted EPS for discontinued operations, and to 0.43 for both basic and diluted total EPS. |
RESTATEMENT
RESTATEMENT | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement | RESTATEMENT It was determined that there were errors in the Company's previously issued consolidated financial statements for the year ended March 31, 2022 related to the classification of loans issued, bank customer accounts and funds received under the Kazakhstan state program for financing of mortgage loans “7-20-25” within the Consolidated Statements of Cash Flows for the year ended March 31, 2022, Specifically, the Company identified that activities related to certain loans had been classified within "Cash flows from operating activities" and should have been classified within "Cash flows from investing activities", that activities related to bank customer accounts had been classified within "Cash flows from operating activities" and should have been classified within "Cash flows from financing activities", and that activities related to funds received under the Kazakhstan state program for financing of mortgage loans “7-20-25” had been classified within "Cash flows from operating activities" and should have been classified within "Cash flows from financing activities". The Company has evaluated the effect of the incorrect classifications and concluded that restatement was necessary. The Company determined that the restatement did not have any impact on the Company’s operating performance or any per-share amounts. The following tables summarizes the impact of these correction of errors for the period presented for the years ended March 31, 2022, 2021 and 2020: For the year ended March 31, 2022 As previously reported Adjustments for discontinued operations As recast Correction of errors related to classification of loans and bank customer accounts Correction of errors related to classification of funds received for financing mortgage loans As restated Net cash flows used in operating activities $ (347,988) $ (30,183) $ (378,171) $ (57,960) $ (6,876) $ (443,007) Net cash flows used in investing activities (8,703) 146 (8,557) (90,298) — (98,855) Net cash flows from financing activities 453,684 (998) 452,686 148,258 6,876 607,820 Effect of changes in foreign exchange rates on cash and cash equivalents (54,552) — (54,552) — — (54,552) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 42,441 $ (31,035) $ 11,406 $ — $ — $ 11,406 For the year ended March 31, 2021 As previously reported Adjustments for discontinued operations As recast Correction of errors related to classification of loans and bank customer accounts As restated Net cash flows from operating activities $ 565,299 $ 24,753 $ 590,052 $ (55,615) $ 534,437 Net cash flows from investing activities 97,040 — 97,040 (1,219) 95,821 Net cash flows from financing activities 348,411 (822) 347,589 56,834 404,423 Effect of changes in foreign exchange rates on cash and cash equivalents (3,769) — (3,769) — (3,769) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 1,006,981 $ 23,931 $ 1,030,912 $ — $ 1,030,912 For the year ended March 31, 2020 As previously reported Adjustments for discontinued operations As recast Correction of errors related to classification of loans and bank customer accounts As restated Net cash flows from operating activities $ 44,271 $ 59,422 $ 103,693 $ (21,071) $ 82,622 Net cash flows used in investing activities (10,854) (131) (10,985) (8,778) (19,763) Net cash flows from financing activities 33,109 (4,883) 28,226 29,849 58,075 Effect of changes in foreign exchange rates on cash and cash equivalents (25,141) — (25,141) — (25,141) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 41,385 $ 54,408 $ 95,793 $ — $ 95,793 In addition, it was determined that in the Company's previously issued consolidated financial statements for the year ended March 31, 2022, interest income from margin lending to clients had been erroneously classified within fee and commission income from brokerage services. Such income has been reclassified to interest income as a separate sub-line item within interest income entitled interest income from margin lending to clients. The following tables summarize the impact of corrections of the errors on the Consolidated Statements of Operations and Other Comprehensive Income for the periods presented: Year ended March 31, 2022 As previously reported Adjustments for discontinued operations As recast Correction of errors As restated Fee and commission income $ 431,938 $ (82,330) $ 349,608 $ (14,164) 335,444 Net gain on trading securities 77,671 78,674 156,345 — 156,345 Interest income 91,801 (15,812) 75,989 14,164 90,153 Net gain on foreign exchange operations (37,693) 39,672 1,979 — 1,979 Net loss on derivative 946 — 946 — 946 TOTAL REVENUE, NET $ 564,663 $ 20,204 $ 584,867 $ — $ 584,867 Year ended March 31, 2021 As previously reported Adjustments for discontinued operations As recast Correction of errors As restated Fee and commission income $ 271,939 $ (52,780) $ 219,159 $ (3,163) 215,996 Net gain on trading securities 46,186 (20,275) 25,911 — 25,911 Interest income 30,873 (11,221) 19,652 3,163 22,815 Net gain on foreign exchange operations 3,428 (2,285) 1,143 — 1,143 Net loss on derivative 125 (39) 86 — 86 TOTAL REVENUE, NET $ 352,551 $ (86,600) $ 265,951 $ — $ 265,951 Year ended March 31, 2020 As previously reported Adjustments for discontinued operations As recast Correction of errors As restated Fee and commission income $ 92,668 $ (26,281) $ 66,387 $ (5,195) 61,192 Net gain on trading securities 14,923 (6,591) 8,332 — 8,332 Interest income 12,134 (3,748) 8,386 5,195 13,581 Net gain on foreign exchange operations 2,315 (2,027) 288 — 288 Net loss on derivative (138) 138 — — — TOTAL REVENUE, NET $ 121,902 $ (38,509) $ 83,393 $ — $ 83,393 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS March 31, 2022 March 31, 2021 (recast) (recast) Current accounts with brokers $ 70,830 $ 37,324 Current accounts with commercial banks 69,982 61,203 Current account with National Bank (Kazakhstan) 42,517 36,726 Securities purchased under reverse repurchase agreements 19,725 11,917 Petty cash in bank vault and on hand 18,467 14,916 Accounts with stock exchange 2,828 5,873 Current account with Central Depository (Kazakhstan) 314 58 Total cash and cash equivalents $ 224,663 $ 168,017 As of March 31, 2022 and 2021, with the exception of funds deposited with a bank in the United States which may qualify for FDIC insurance up to $250,000, cash and cash equivalents were not insured. As of March 31, 2022 and 2021, the cash and cash equivalents balance included collateralized securities received under reverse repurchase agreements on the terms presented below: March 31, 2022 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements Corporate equity 16.90 % $ 152 $ — $ 152 US sovereign debt 16.38 % 9,952 — 9,952 Non-US sovereign debt 12.45 % 9,565 — 9,565 Corporate debt 11.88 % 56 — 56 Total $ 19,725 $ — $ 19,725 March 31, 2021 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements Non-US sovereign debt 0.88 % $ 1,785 $ — $ 1,785 Corporate debt 10.15 % 8,460 — 8,460 Corporate equity 13.09 % 110 — 110 US sovereign debt 0.50 % 1,562 — 1,562 Total $ 11,917 $ — $ 11,917 The securities received by the Company as collateral under reverse repurchase agreements are liquid trading securities with market quotes and significant trading volume. The fair value of collateral received by the Company under reverse repurchase agreements as of March 31, 2022 and 2021, was $19,691 and $12,123 respectively. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Mar. 31, 2022 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash for the periods ended March 31, 2022 and 2021, consisted of: March 31, 2022 March 31, 2021 (recast) (recast) Brokerage customers' cash $ 531,032 $ 482,136 Deferred distribution payment 8,534 8,534 Guaranty deposits 5,540 21 Restricted bank accounts 2,844 — Total restricted cash $ 547,950 $ 490,691 As of March 31, 2022 and 2021, the Company's restricted cash included the cash portion of the funds segregated in a special custody account for the exclusive benefit of its brokerage customers, as well as required reserves with the Central Bank of the Russia which represents cash on hand balance requirements. Restricted cash also included a deferred distribution payment amount, which is a reserve held for distribution to shareholders who have not yet claimed their distributions from the 2011 sale of the Company's oil and gas exploration and production operations of $8,534. This distribution is currently payable, subject to the entitled shareholders completing and submitting to the Company the necessary documentation and establishing his, her or its legal right to his, her or its distribution payments. The Company has no control over when, or if, an entitled shareholder will submit the necessary documentation to establish his, her or its legal right to their distribution payment. The entire deferred distribution payment amount was held in cash at March 31, 2022 and 2021. A Company shareholder entitled to a portion of the distribution amount died before claiming the distribution. As a result of disputes between the individual's putative heirs and potential owners of an entity that also claimed through the shareholder, the Company has been unable to determine who is legally entitled to receive a significant portion of the distribution payment. During the fiscal year ended March 31, 2022, the putative estate asserted claims in Utah state court seeking, among other things, payment of the distribution. The Company and the putative estate have agreed to attempt to mediate the dispute. Fo r additional information regarding this matter see Part I Item 3 "Legal Proceedings" of this annual report. |
TRADING AND AVAILABLE-FOR-SALE
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | 12 Months Ended |
Mar. 31, 2022 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE As of March 31, 2022 and 2021, trading and available-for-sale securities consisted of: March 31, 2022 March 31, 2021 (recast) (recast) Corporate debt $ 662,416 $ 301,899 Non-US sovereign debt 342,786 239,630 Corporate equity 64,023 39,279 US sovereign debt 10,306 4,661 Exchange traded notes 1,451 2,077 Total trading securities $ 1,080,982 $ 587,546 Equity securities 1 1 Total available-for-sale securities, at fair value $ 1 $ 1 As of March 31, 2022, the Company held debt securities of two issuers which individually exceeded 10% of the Company's total trading securities - the Ministry of Finance of the Republic of Kazakhstan and the Kazakhstan Sustainability Fund JSC of $328,951 and $396,680, respectively. As of March 31, 2021, the Company held debt securities of two issuers which individually exceeded 10% of the Company's total trading securities - the Ministry of Finance of the Republic of Kazakhstan and the Kazakhstan Sustainability Fund JSC in the amounts of $232,958 and $232,601. The Company recognized no other than temporary impairment in accumulated other comprehensive income. The fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Company utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Company is valuing and the selected benchmark. Depending on the type of securities owned by the Company, other valuation methodologies may be required. Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels: • Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets. • Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured. • Level 3 - Valuation inputs are unobservable and significant to the fair value measurement. The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2022 and 2021: Weighted average interest rate Total Fair Value Measurements at March 31, 2022 (recast) using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 9.61 % $ 662,416 $ 661,821 $ — $ 595 Non-U.S. sovereign debt 13.11 % 342,786 334,491 — 8,296 Corporate equity — 64,023 63,496 275 251 U.S. sovereign debt 2.36 % 10,306 10,306 — — Exchange traded notes — 1,451 1,451 — — Total trading securities $ 1,080,982 $ 1,071,565 $ 275 $ 9,142 Equity securities — $ 1 $ — $ — $ 1 Total available-for-sale securities, at fair value $ 1 $ — $ — $ 1 Weighted average interest rate Total Fair Value Measurements at March 31, 2021 (recast) using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 9.22 % $ 301,899 $ 301,539 $ — $ 360 Non-U.S. sovereign debt 8.06 % 239,630 239,630 — — Corporate equity — 39,279 20,606 — 18,673 U.S. sovereign debt 1.68 % 4,661 4,661 — — Exchange traded notes — 2,077 2,077 — — Total trading securities $ 587,546 $ 568,513 $ — $ 19,033 Equity securities — $ 1 $ — $ — $ 1 Total available-for-sale securities, at fair value $ 1 $ — $ — $ 1 The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2022 and 2021. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of March 31, FV as of March 31, Significant Unobservable Inputs % Corporate equity DCF $ — $ 18,370 Discount rate 10.6% Estimated number of years 9 years Corporate equity DCF $ 251 $ 303 Discount rate 20.0% Estimated number of years 9 years Corporate debt DCF $ 595 $ 360 Discount rate 45.0% Estimated number of years 3 months Non-US sovereign debt DCF $ 7,524 $ — Discount rate 69.0% Estimated number of years 11 years Non-US sovereign debt DCF $ 772 $ — Discount rate 13.9% Estimated number of years 1 year $ 9,142 $ 19,033 As of March 31, 2022, shares of SPBX held by the Company were transferred from level 3 to level 1, due to active trades on the market. During the year ended March 31, 2022, market trades of SPBX shares were executed in the market, and market data for these shares became available. The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended March 31, 2022: Trading Available-for-sale securities Balance as of March 31, 2020 (recast) $ 11,259 $ 1 Sale of investments that use Level 3 inputs (2) — Purchase of investments that use Level 3 inputs 736 — Revaluation of investments that use Level 3 inputs 7,040 — Foreign currency translation — — Balance as of March 31, 2021 (recast) $ 19,033 $ 1 Reclassification to level 3 682 — Reclassification to level 1 (18,371) Purchase of investments that use Level 3 inputs 10,812 — Revaluation of investments that use Level 3 inputs (3,014) — Foreign currency translation — — Balance as of March 31, 2022 (recast) $ 9,142 $ 1 The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of March 31, 2022 and 2021: March 31, 2022 (recast) Assets Unrealized loss Assets Equity securities $ 1 $ — $ 1 Balance as of March 31, 2022 $ 1 $ — $ 1 March 31, 2021 (recast) Assets Unrealized loss Assets Equity securities $ 1 $ — $ 1 Balance as of March 31, 2021 $ 1 $ — $ 1 |
BROKERAGE AND OTHER RECEIVABLES
BROKERAGE AND OTHER RECEIVABLES, NET | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
BROKERAGE AND OTHER RECEIVABLES, NET | BROKERAGE AND OTHER RECEIVABLES, NET Brokerage and other receivables, net of the Company are comprised of the following: March 31, 2022 March 31, 2021 (recast) (recast) Margin lending receivables $ 138,983 $ 43,138 Receivables from brokerage clients 4,439 3,896 Long-term installments receivables 1,367 1,280 Receivable from sale of securities 884 484 Bank commissions receivable 598 697 Receivable for underwriting and market-making services 296 564 Dividends accrued 45 1,392 Other receivables 2,975 48 Allowance for receivables (2,107) (1,981) Total brokerage and other receivables, net $ 147,480 $ 49,518 On March 31, 2022 and 2021, amounts due from a single related party customer were $102,669 and $8,948, respectively or 70% and 14% respectively, of total brokerage and other receivables, net. Based on historical data, the Company considers receivables due from related parties fully collectible. As of March 31, 2022 and 2021, using historical and statistical data, the Company recorded an allowance for brokerage receivables in the amounts of $2,107 and $1,981, respectively. |
LOANS ISSUED
LOANS ISSUED | 12 Months Ended |
Mar. 31, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS ISSUED | LOANS ISSUED Loans issued as of March 31, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans $ 51,923 April, 2022 - March, 2047 11.86 % $ 52,134 KZT Uncollateralized bank customer loans 34,068 April, 2022 - March, 2047 17.56 % — KZT Subordinated loan 5,033 December, 2022-April, 2024 4.89 % — USD Subordinated loan 1,256 December, 2022-April, 2024 7.00 % — UAH Other 123 February, 2022-Febraury, 2027 2.50 % — USD Total loans issued $ 92,403 $ 52,134 As of March 31, 2022, mortgage loans include the state mortgage program "7-20-25" with the principal amount of $21,310. Microfinance organization Freedom Finance Credit (“FFIN Credit”) is a start-up created by Mr.Turlov. It is a non-bank credit institution that issues loans in Kazakhstan under simplified lending procedures. FFIN Credit was created as a pilot project to test and improve the scoring models used for qualifying and issuing loans. The principal operation of FFIN Credit is to provide loans to customers online using biometric identification and its proprietary scoring process. After completion of the pilot launch, it is anticipated ownership of FFIN Credit will be transferred to the Company. During the year ended March 31, 2022 , the Company entered into agreements with FFIN Credit to purchase uncollateralized consumer retail loans. The agreements provide the Company the ability to sell back to FFIN Credit up to $36,010 of the total loans purchased. The Company has determined that it has assumed substantially all of the risks and rewards from the transferor of the loans, with the exception of the amount it has the right to sell back to the transferor, accordingly the Company has received control of the loans and has recognized the loans on its Consolidated Balance Sheets. During the year ended March 31, 2022 , the Company purchased loans in the aggregate amount of $59,839 and sold back loans totaling $12,106 to the FFIN Credit. As of March 31, 2022 , the Company held outstanding loans purchased from the FFIN Credit totaling $35,388, net of an allowance of $1,321. Loans issued as of March 31, 2021, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Subordinated loan $ 5,033 December 2022-April 2024 3.69 % $ — USD Uncollateralized non-bank loan 2,382 January 2022 - February 2022 3.00 % — USD Uncollateralized non-bank loan — — % — Subordinated loan 1,331 September 2029 7.00 % — UAH Bank customer loans 880 March 2024 15.41 % 729 KZT Bank customer loans — — % — Total loans issued $ 9,626 $ 729 |
DEFERRED TAX (LIABILITIES)_ASSE
DEFERRED TAX (LIABILITIES)/ASSETS | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
DEFERRED TAX (LIABILITIES)/ASSETS | DEFERRED TAX (LIABILITIES)/ASSETS The Company is subject to taxation in Russia, Kazakhstan, Kyrgyzstan, Cyprus, Ukraine, Uzbekistan, Germany and the United States of America. The tax rates used for deferred tax assets and liabilities for the years ended March 31, 2022 and 2021, were 21% for the U.S., 20% for Russia, Kazakhstan, Azerbaijan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine, 25% for United Kingdom, 18% for Armenia and 15% for Uzbekistan. This note is presented excluding the discontinued operations, which is presented separately in Note 26 "Assets and Liabilities Held for Sale". As of March 31, 2022 and 2021, deferred tax assets and liabilities of the Company were comprised of the following: March 31, 2022 March 31, 2021 (recast) (recast) Deferred tax assets: Revaluation on trading securities $ — $ — Tax losses carryforward 679 316 Accrued liabilities 776 109 Depreciation — 16 Stock compensation expenses — — Valuation allowance — (316) Deferred tax assets $ 1,455 $ 125 Deferred tax liabilities: Revaluation on trading securities $ 210 $ 2,041 Fixed and Intangible Assets — 1,568 Subordinated debt — 523 Other liabilities 388 — Deferred tax liabilities $ 598 $ 4,132 Net deferred tax (liabilities)/assets $ 857 $ (4,007) The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation of the provision for income taxes at the 21% tax rate compared to the Company's income tax expense as reported is as follows: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (recast) (recast) (recast) Profit before tax at 21% $ 74,359 $ 30,346 $ 6,109 Global intangible low taxed income 31,194 18,451 4,803 Stock based compensation 3,090 348 551 Losses carried forward adjustment — — — Other differences — — 20 Provision for impairment losses (75) 128 (245) Valuation allowance (316) (361) 416 Non-taxable interest income (659) — — Permanent differences (5,165) (2,209) (605) Foreign tax credit (16,200) (10,155) (3,503) Foreign tax rate differential (18,448) (9,418) (2,884) Nontaxable gains (29,251) (3,768) 271 Income tax provision $ 38,529 $ 23,362 $ 4,933 As of March 31, 2022 and 2021, income tax expense was comprised of the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (recast) (recast) (recast) Current income tax charge $ 42,525 $ 21,811 $ 4,753 Deferred income tax charge (3,996) 1,551 180 Income tax provision $ 38,529 $ 23,362 $ 4,933 During the years ended March 31, 2022, 2021 and 2020, the Company realized net income before income tax of $354,093, $144,503 and $29,091, respectively. During the same periods, the Company's effective tax rate was equal to 10.9%, 16.2% and 17.0%, respectively. This decrease in income tax expense was primarily attributable to non-taxable gains on trading securities in Freedom KZ, Freedom Bank KZ, Freedom EU and Freedom Technologies. Tax loss carryforwards as of March 31, 2022, was $679 in Cyprus. |
FIXED ASSETS, NET
FIXED ASSETS, NET | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS, NET | FIXED ASSETS, NET As of March 31, 2022 and 2021, fixed assets, net of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Buildings $ 7,770 $ 8,014 Processing and storage data centers 3,729 2,289 Office equipment 3,368 2,498 Capital expenditures on leasehold improvements 1,239 793 Furniture 2,653 1,079 Vehicles 362 264 Land 1,564 1,533 Other 674 1,205 Less: Accumulated depreciation (3,972) (2,104) Total fixed assets, net $ 17,387 $ 15,571 Depreciation expense totaled $2,020, $1,634 and $746 for the years ended March 31, 2022, 2021 and 2020 respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET As of March 31, 2022 and 2021, intangible assets, net of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Licenses $ 2,252 $ 1,377 Client base 1,843 2,023 Trading platform 9 — Software 1,389 1,930 Other intangible assets 41 — Less: Accumulated amortization (2,022) (1,428) Total intangible assets, net $ 3,512 $ 3,902 Amortization expense totaled $594, $445 and $359 for the years ended March 31, 2022, 2021 and 2020 respectively. |
OTHER ASSETS, NET
OTHER ASSETS, NET | 12 Months Ended |
Mar. 31, 2022 | |
Other Assets [Abstract] | |
OTHER ASSETS, NET | OTHER ASSETS, NET As of March 31, 2022 and 2021, other assets, net of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Current income tax asset $ 2,261 $ 910 Due from financial institutions 4,764 2,094 Advances paid 4,082 6,196 Prepayments on future acquisitions 4,069 — Taxes other than income taxes 1,686 786 Outstanding settlement operations 43 4,233 Rent guarantee deposit 759 389 Other 830 1,031 Total other assets 18,494 15,639 Allowance for other assets — — Other assets, net $ 18,494 $ 15,639 |
SECURITIES REPURCHASE AGREEMENT
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | 12 Months Ended |
Mar. 31, 2022 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | SECURITIES REPURCHASE AGREEMENT OBLIGATIONS As of March 31, 2022 and 2021, trading securities included collateralized securities subject to repurchase agreements as described in the following table: March 31, 2022 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30-90 Over 90 Total Securities sold under repurchase agreements Corporate debt 14.22 % $ 534,546 $ 142 $ — $ 534,688 Non-US sovereign debt 13.47 % 201,666 — — 201,666 US sovereign debt 0.77 % 5,968 — — 5,968 Corporate equity 14.00 % 388 — — 388 Total securities sold under repurchase agreements $ 742,568 $ 142 $ — $ 742,710 March 31, 2021 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Over 90 Total Securities sold under repurchase agreements Non-US sovereign debt 9.29 % $ 229,122 $ — $ — $ 229,122 Corporate debt 9.23 % 138,029 — — 138,029 Corporate equity 3.78 % 5,757 — — 5,757 US sovereign debt 0.40 % 1,810 — — 1,810 Total securities sold under repurchase agreements $ 374,718 $ — $ — $ 374,718 The fair value of collateral pledged under repurchase agreements as of March 31, 2022 and 2021, was $737,364 and $374,610, respectively. Securities pledged as collateral by the Company under repurchase agreements are liquid trading securities with market quotes and significant trading volume. |
CUSTOMER LIABILITIES
CUSTOMER LIABILITIES | 12 Months Ended |
Mar. 31, 2022 | |
Contract with Customer, Liability [Abstract] | |
CUSTOMER LIABILITIES | CUSTOMER LIABILITIES The Company recognizes customer liabilities associated with funds held by our brokerage and bank customers. Customer liabilities consist of: March 31, 2022 March 31, 2021 (recast) (recast) Brokerage customers $ 519,516 $ 547,349 Banking customers 247,111 124,476 Total customer liabilities $ 766,627 $ 671,825 As of March 31, 2022, banking customer liabilities consisted of current accounts and deposits of $91,617 and $155,494, respectively. As of March 31, 2021, banking customer liabilities consisted of current accounts and deposits of $48,058 and $76,418, respectively. |
TRADE PAYABLES
TRADE PAYABLES | 12 Months Ended |
Mar. 31, 2022 | |
Accounts Payable [Abstract] | |
TRADE PAYABLES | TRADE PAYABLES As of March 31, 2022 and 2021, trade payables of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Margin lending payable $ 39,250 $ 20,148 Payables to suppliers of goods and services 4,463 1,383 Trade payable for securities purchased 462 264 Guarantee fee received 33 31 Other 874 176 Total trades payables $ 45,082 $ 22,002 On March 31, 2022 and 2021, amounts due to a single related party $38,889 or 86% and $13,810 or 62%, respectively. |
SECURITIES SOLD, NOT YET PURCHA
SECURITIES SOLD, NOT YET PURCHASED AT FAIR VALUE | 12 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES SOLD, NOT YET PURCHASED - AT FAIR VALUE | SECURITIES SOLD, NOT YET PURCHASED - AT FAIR VALUE As of March 31, 2022 and 2021, the Company's securities sold, not yet purchased - at fair value was $13,864 and $8,569, respectively. During the year ended March 31, 2022, the Company sold shares that were not owned by the Company in the amount of $7,056. During the year ended March 31, 2022, the Company recognized a gain on the change in fair value of financial liabilities in the amount of $1,415 in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. During the year ended March 31, 2021, the Company sold shares that were not owned by the Company and recognized financial liabilities at fair value in the amount of $8,508. During the year ended March 31, 2021, the Company recognized a loss on the change in fair value of financial liabilities at fair value in the Consolidated Statements of Operations and Statements of Other Comprehensive Income in the amount of $78. Shares sold that are not owned (also known as a "short sale") involves the sale of a security that is not owned in the expectation of purchasing the same security (or a security exchangeable) at a later date at a lower price. A short sale involves the risk of a theoretically unlimited increase in the market price of the security that would result in a theoretically unlimited loss. |
LOANS RECEIVED
LOANS RECEIVED | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LOANS RECEIVED | LOANS RECEIVED As of March 31, 2022 and 2021, loans received by the Company included the following: Company Lender March 31, 2022 March 31, 2021 Interest rate Term Maturity dates Freedom Holding Corp. Non-Bank $ 3,538 $ 3,373 5 % 26 months 12/31/22 Total loans received $ 3,538 $ 3,373 |
DEBT SECURITIES ISSUED
DEBT SECURITIES ISSUED | 12 Months Ended |
Mar. 31, 2022 | |
Debt Securities [Abstract] | |
DEBT SECURITIES ISSUED | DEBT SECURITIES ISSUED As of March 31, 2022 and 2021, outstanding debt securities of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Debt securities issued denominated in USD $ 33,700 $ 30,700 Accrued interest 690 649 Total debt securities issued $ 34,390 $ 31,349 As of March 31, 2022 and 2021, the Company's outstanding debt securities had fixed annual coupon rates ranging from 5.50% to 7% and maturity dates ranging from December 2022 to November 2026. The Company's debt securities include $20,500 of FRHC notes issued in December 2019. The FRHC notes denominated in U.S. dollars, bear interest at an annual rate of 7.00% and are due in December 2022. The FRHC notes were issued under Astana International Financial Centre ("AIFC") law and trade on the AIX. The Company's debt securities also include $13,200 of Freedom SPC bonds issued in October 2021. The Freedom SPC bonds are denominated in U.S. dollars, bear interest at an annual rate of 5.50% and are due in October 2026. The Freedom SPC bonds were issued under AIFC law and trade on the AIX. FRHC is a guarantor of the Freedom SPC bonds. The proceeds from Freedom SPC bonds were loaned to FRHC pursuant to a loan agreement dated November 22, 2021. The interest rate of the loan agreement is 5.50% per annum. Interest payments are duly semi-annually in April and October. Repayment of the loan is due October 2026. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES As of March 31, 2022 and 2021, other liabilities of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Liability arising from continuing involvement $ 6,447 $ — Salaries and other employee benefits 1,902 550 Payable to suppliers 3,162 1,470 Vacation reserve 990 790 Outstanding settlements operations 292 1,128 Taxes payable other than income tax 567 118 Other 1,683 640 Total other liabilities $ 15,043 $ 4,696 Liability arising from continuing involvement represents obligations to JSC Kazakhstan Sustainability Fund ("Program Operator") related to the state mortgage program "7-20-25" and other programs. In accordance with the conditions of this program, Freedom Bank KZ provides mortgage loans to borrowers and transfers the rights of claim on the loans to the Program Operator. In accordance with the program and trust management agreement, Freedom Bank KZ carries out trust management of transferred mortgage loans. Under the program and trust management agreement, Freedom Bank KZ is required to repurchase the rights of claims on transferred mortgage loans, when the loan principal amount and interest payments are overdue 90 days of more. The repurchase of delinquent loans is performed at the loan nominal value. |
FEE AND COMMISSION INCOME_(EXPE
FEE AND COMMISSION INCOME/(EXPENSE) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
FEE AND COMMISSION INCOME/(EXPENSE) | FEE AND COMMISSION INCOME/EXPENSE As of March 31, 2022 and 2021, fee and commission income/expense of the Company included the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Fee and commission income: Brokerage services $ 319,015 $ 204,057 $ 60,130 Bank services 6,727 699 — Underwriting services 5,963 6,451 1,031 Other commission income 3,739 4,789 31 Total fee and commission income $ 335,444 $ 215,996 $ 61,192 Fee and commission expense: Brokerage services $ 61,941 $ 62,487 $ 18,314 Bank services 7,546 1,653 158 Stock exchange services 1,669 807 466 Central Depository services 329 247 399 Other commission expense 1,758 784 78 Total fee and commission expense $ 73,243 $ 65,978 $ 19,415 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES | 12 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
NET GAIN ON TRADING SECURITIES | NET GAIN ON TRADING SECURITIES As of March 31, 2022, 2021 and 2020, net gain on trading securities included the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Net gain recognized during the period on trading securities sold during the period $ 206,238 $ 19,478 $ 18,884 Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date (49,893) 6,433 (10,552) Net gain recognized during the period on trading securities $ 156,345 $ 25,911 $ 8,332 |
NET INTEREST INCOME_ (EXPENSE)
NET INTEREST INCOME/ (EXPENSE) | 12 Months Ended |
Mar. 31, 2022 | |
Interest Income (Expense), Net [Abstract] | |
NET INTEREST INCOME/ (EXPENSE) | NET INTEREST INCOME/EXPENSE Net interest income/expense includes: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Interest income: Interest income on financial assets recorded at amortized cost comprises: Interest income on securities repurchased under reverse repurchase agreements and amounts due from banks $ 1,385 $ 900 $ 898 Interest income on margin loans 14,164 3,163 5,195 Interest income on loans to customers 4,612 384 328 Total interest income on financial assets recorded at amortized cost 20,161 4,447 6,421 Interest income on financial assets recorded in consolidated statements of operations and other comprehensive income Interest income on trading securities 69,992 18,368 7,160 Total interest income on financial assets recorded in consolidated statements of operations and other comprehensive income 69,992 18,368 7,160 Total interest income $ 90,153 $ 22,815 $ 13,581 Interest expense: Interest expense on financial liabilities recorded at amortized cost comprises: Interest expense on securities repurchase agreement obligations $ 46,731 $ 10,497 $ 7,074 Interest expense on customer accounts and deposits 16,336 5,591 755 Interest expense on debt securities issued 1,822 2,363 2,016 Interest expense on loans received 539 133 355 Other interest expense 21 22 — Total interest expense on financial liabilities recorded at amortized cost 65,449 18,606 10,200 Total interest expense $ 65,449 $ 18,606 $ 10,200 |
NET GAIN ON FOREIGN EXCHANGE OP
NET GAIN ON FOREIGN EXCHANGE OPERATIONS | 12 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
NET GAIN ON FOREIGN EXCHANGE OPERATIONS | NET GAIN ON FOREIGN EXCHANGE OPERATIONS Net gain on foreign exchange operations includes: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Sales and purchases of foreign currency, dealing $ 7,856 $ 99 $ 148 Translation difference (5,877) 1,044 140 Total net gain on foreign exchange operations $ 1,979 $ 1,143 $ 288 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the years ended March 31, 2022, 2021 and 2020, the Company earned fee and commission income from related parties in the amounts of $291,163, $184,725 and $56,247, respectively. Fee and commission income generated from FFIN Brokerage accounted for approximately 94% of our total related party commission income for the year ended March 31, 2022, as compared to approximately 34% of our total related party commission income for the year ended March 31, 2021, and 86% of our total related party commission income for the year ended March 31, 2020. Commission income earned from related parties is comprised primarily of brokerage commissions and commissions for money transfers by brokerage clients. During the years ended March 31, 2022, 2021 and 2020, the Company paid commission expense to related parties in the amount of $16,307, $20,291 and $3,668, respectively. Commission expense paid to FFIN Brokerage accounted for approximately 58% of our total related party commission expense for the year ended March 31, 2022, as compared to approximately 15% of our total related party commission expense for the year ended March 31, 2021, and 80% of our total related party commission expense for the year ended March 31, 2020. Interest income earned from related parties is comprised entirely of interest income from FFIN Brokerage, principally interest income from margin lending. During the years ended March 31, 2022 and 2021, the Company earned interest income from related parties in the amounts of $10,191 and $2,250, respectively. Interest income generated from FFIN Brokerage accounted for approximately 100% of the Company's total related party interest income for each of the years ended March 31, 2022 and 2021. During the years ended March 31, 2022 and 2021 the Company recorded stock-based compensation expense for restricted stock grants to related parties in the amount of $1,329 and $0, respectively. As of March 31, 2022 and 2021, the Company had cash and cash equivalents held in brokerage accounts of related parties totaling $22,787 and $12,237, respectively. 100% and 100% of these balances were due to Wisdompoint Capital LTD. As of March 31, 2022 and 2021, the Company had bank commission receivables and receivables from brokerage clients from related parties totaling $244 and $960, respectively. Brokerage and other receivables from related parties result principally from commissions receivable on the brokerage operations of related parties. As of March 31, 2022 and 2021, the Company had margin lending receivables with related parties totaling $107,649 and $9,866, respectively. 95% and 83% of these balances were due from FFIN Brokerage. As of March 31, 2022 and 2021, the Company had margin lending payables to related parties, totaling $38,889 and $13,810, respectively. 100% and 100% of these balances were due to Wisdompoint Capital LTD. As of March 31, 2022 and 2021, the Company had accounts payable due to a related party totaling $313 and $299, respectively. As of March 31, 2022 and 2021, the Company had financial liability due to a related party totaling $1,637 and $1,707, respectively. As of March 31, 2022 and 2021, the Company had customer liabilities on brokerage accounts and bank accounts of related parties totaling $325,904 and $235,460, respectively. 75% and 126%, of these balances were deposits from FFIN Brokerage. As of March 31, 2022 and 2021, the Company had restricted customer cash deposited in current and brokerage accounts with related parties in the amounts of $222,651 and $156,878. 78% and 94%, of these balances were from FFIN Brokerage. During the year ended March 31, 2022, the Company purchased loans in the aggregate amount of $59,839 and sold back loans totaling $12,107 to FFIN Cred it . In July 2021, to comply with certain foreign ownership restrictions relating to registered Ukrainian broker-dealers, the Company sold 23.88% of the outstanding equity interest of Freedom UA to Askar Tashtitov, the Company's president, for $416. For additional information regarding this transaction, see Note 1 - Description of Business. FFIN Brokerage is owned personally by Timur Turlov and is not part of our group of companies. FFIN Brokerage has its own brokerage customers, which include individuals and market-maker institutions and conducts business with the Company through a client omnibus account at Freedom EU. For additional information, see " Legacy Operations and Key Relationships " in " Business " in Part I Item 1 of the Company's Annual Report on Form 10-K. Wisdompoint Capital LTD is a party related to Freedom EU through common management. Wisdompoint Capital LTD provides brokerage services to the Company. Brokerage and related banking services, including margin lending, were provided to such related parties pursuant standard client account agreements and at standard market rates. |
ASSETS AND LIABILITIES HELD FOR
ASSETS AND LIABILITIES HELD FOR SALE | 12 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS AND LIABILITIES HELD FOR SALE | ASSETS AND LIABILITIES HELD FOR SALE On October 17, 2022, the Company entered into an agreement with Mr. Maxim Povalishin for the sale of 100% of the share capital the Company's subsidiaries in Russia. The transaction was completed on February 27, 2023. Because of the reissuance of the financial statements due to the restatements discussed in Note 4, the Company have also recast the financial statements to reflect the assets and liabilities to be disposed of as discontinued operations in the consolidated financial statements. In accordance with US GAAP, the Company has reported separately the discontinued operations in the consolidated financial statements. The segment reporting in Note 31 has been recast to remove the Russian segment due to its presentation in the financial statements as discontinued operations. As of March 31, 2022 and 2021, the major classes of assets and liabilities from discontinued operations included the following: March 31, 2022 March 31, 2021 Cash and cash equivalents 428,480 531,791 Restricted cash 28,406 27,594 Trading securities 122,497 148,642 Brokerage and other receivables, net 210,087 15,575 Loans issued 2,395 2,041 Other assets 33,554 22,405 Total assets held for sale 825,419 748,048 Customer liabilities 701,584 573,181 Debt securities issued 64,637 37,095 Securities repurchase agreement obligations 32,469 51,997 Other liabilities 13,788 14,295 Total liabilities held for sale 812,478 676,568 The results of operations for discontinued operations for the years ended March 31, 2022, 2021 and 2020, consist of the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 Fee and commission income 69,742 52,780 24,390 Net (loss)/gain on trading securities (78,674) 20,275 6,591 Interest income 28,399 11,221 5,639 Net gain/(loss) on foreign exchange operations (39,672) 2,285 2,027 Net gain/(loss) on derivative — 39 (138) Total revenue, net (20,205) 86,600 38,509 Fee and commission expense 7,988 7,122 2,521 Interest expense 10,450 8,760 2,199 Operating expense 73,029 41,981 34,312 Provision for impairment losses 779 45 90 Other (income)/expense, net 4,748 174 345 Total expense 96,994 58,082 39,467 (Loss)/Income before income tax (117,199) 28,518 (958) The net cash flows from/(used in) operating and investing activities from discontinued operations for years ended March 31, 2022, 2021 and 2020, consist of the following: For The Years Ended March 31, 2022 March 31, 2021 March 31, 2020 Cash Flows (Used In)/From Operating Activities Net (loss)/income from discontinued operations $ (104,195) $ 21,783 $ (2,028) Adjustments to reconcile net income from operating activities: Depreciation and amortization 2,035 1,745 1,553 Noncash lease expense 4,932 3,826 3,570 Impairment of Freedom Bank RU goodwill 723 — — Impairment of Zerich goodwill 810 — — Loss on sale of fixed assets — — 201 Client base write-off 3,125 — — Change in deferred taxes (12,634) 1,170 371 Stock compensation expense 7,887 1,033 2,202 Unrealized (gain)/loss on trading securities 51,652 (425) (2,705) Net change in accrued interest 354 (1,921) 396 Allowances/(recovery) for receivables 771 41 96 Changes in operating assets and liabilities: Trading securities (39,354) (100,133) (2,159) Brokerage and other receivables (218,852) 28,845 (30,967) Other assets (3,684) (1,292) (442) Securities sold, not yet purchased – at fair value 239 23 — Brokerage customer liabilities 198,608 392,855 70,146 Current income tax liability (637) 658 — Trade payables (370) 230 (2,311) Lease liabilities (5,166) (3,854) (3,768) Other liabilities 1,256 2,433 (10) Net cash flows (used in)/from operating activities from discontinued operations (112,500) 347,017 34,145 Cash Flows (Used In)/From Investing Activities Purchase of fixed assets (2,881) (2,137) (2,766) Proceeds from sale of fixed assets — 76 284 Purchase of intangible assets (557) — — Net change in loans issued to customers (945) (171) (977) Net cash flows (used in)/from investing activities from discontinued operations (4,383) (2,232) (3,459) |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS' EQUITY During the year ended March 31, 2022, non-qualified stock options to purchase 60,000 shares were exercised at a strike price of $1.98 per share for total proceeds of $119. During the year ended March 31, 2021, non-qualified stock options to purchase 60,000 shares were exercised at a strike price of $1.98 per share for total proceeds of $118. On March 30, 2022, the Company awarded a restricted stock grant totaling 7,500 shares of its common stock to one executive officer of the Company. Of the 7,500 shares awarded pursuant to the restricted stock grant awards, 3,000 shares vest on May 18, 2023, 1,500 shares vest on May 18, 2024, 1,500 shares vest on May 18, 2025 and 1,500 shares vest on May 18, 2026. On May 18, 2021, the Company awarded restricted stock grants totaling 1,031,500 shares of its common stock to 56 employees and consultants of the Company, including two executive officers of the Company. Of the 1,031,500 shares awarded pursuant to the restricted stock grant awards, 200,942 shares are subject to one-year vesting, 211,658 shares are subject to two-year vesting and 206,300 shares per year are subject to three four On December 30, 2020, the Company awarded restricted stock grants in the amount of 15,000 shares of its common stock to three employees. Of the 15,000 shares awarded pursuant to the restricted stock grant awards, 4,500 shares are subject to one-year vesting conditions, 4,500 shares are subject to two-year vesting conditions and 6,000 shares are subject to three-year vesting conditions. The Company recorded stock-based compensation expense for restricted stock grants and stock options in the amount of $15,745 and $1,147 during the year ended March 31, 2022 and March 31, 2021, respectively. During the year ended March 31, 2022, Timur Turlov made a capital contribution to the Company in amount of $21,600. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION During the year ended ended March 31, 2022, a total of 1,039,000 restricted shares were awarded to key employees. The compensation expense related to restricted stock grants was $15,745 during the the year ended March 31, 2022, and $1,147 during the year ended March 31, 2021. As of March 31, 2022, there was $24,731 of total unrecognized compensation cost related to non-vested shares of common stock granted. The cost is expected to be recognized over a weighted average period of 4.07 years. The Company has determined the fair value of restricted shares awarded during the twelve months ended March 31, 2022, using the Monte Carlo valuation model based on the following key assumptions: Term (years) 5 Volatility 41.5 % Risk-free rate 0.06 % The table below summarizes the activity for the Company's restricted stock outstanding during the year ended March 31, 2022: Shares Weighted Outstanding, March 31, 2021 15,000 $ 775 Granted 1,039,000 39,760 Vested (4,500) (233) Forfeited/cancelled/expired — — Outstanding, at March 31, 2022 1,049,500 $ 40,303 During the year ended March 31, 2022, no stock options were awarded. Total compensation expense related to outstanding options was $0 for the year ended March 31, 2022, and $112 for the year ended March 31, 2021. The Company has determined the fair value of such stock options using the Black-Scholes option valuation model based on the following key assumptions: Term (years) 3 Volatility 165.33 % Risk-free rate 1.66 % Stock-based compensation expense for the cost of the awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. The following is a summary of stock option activity for year ended March 31, 2022: Shares Weighted Average Weighted Aggregate Outstanding, March 31, 2021 60,000 $ 1.98 6.52 $ 3,083,000 Granted — — — — Exercised (60,000) 1.98 6.52 3,742,000 Forfeited/cancelled/expired — — — — Outstanding, at March 31, 2022 — $ — — $ — Exercisable, at March 31, 2022 — $ — — $ — During the years ended March 31, 2022 and 2021, the Company recorded expenses for share based payments for consulting services in the amount of $0 and $517, respectively. |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company's leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate. The table below presents the lease related assets and liabilities recorded on the Company's consolidated balance sheets as of March 31, 2022: Classification on Balance Sheet March 31, 2022 Assets Operating lease assets Right-of-use assets $ 6,747 Total lease assets $ 6,747 Liabilities Operating lease liability Operating lease obligations $ 6,785 Total lease liability $ 6,785 Lease obligations at March 31, 2022, consisted of the following: Twelve months ending March 31, 2023 $ 3,725 2024 1,683 2025 1,271 2026 1,064 2027 244 Thereafter Total payments 7,987 Less: amounts representing interest (1,202) Lease liability, net $ 6,785 Weighted average remaining lease term (in months) 23 Weighted average discount rate 12 % Lease commitments for short-term operating leases as of March 31, 2022 was approximately $74. The Company's rent expense for office space was $637 for the year ended March 31, 2022, $451 for the year ended March 31, 2021 and $151 for the year ended March 31, 2020 respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Freedom Bank KZ is a party to certain off-balance sheet financial instruments. These financial instruments include guarantees and unfunded commitments under existing lines of credit. These commitments expose the Company to varying degrees of credit and market risk which are essentially the same as those involved in extending loans to customers, and are subject to the same credit policies used in underwriting loans. Collateral may be obtained based on the Company's credit evaluation of the counterparty. The Company's maximum exposure to credit loss is represented by the contractual amount of these commitments. Unfunded commitments under lines of credit Unfunded commitments under lines of credit include commercial, commercial real estate, home equity and consumer lines of credit to existing customers. These commitments may mature without being fully funded. Unfunded commitments under lines of guarantees Unfunded commitments under lines of guarantees are conditional commitments issued by Freedom Bank KZ to provide bank guarantees to customers. These commitments may mature without being fully funded. Bank guarantees. Bank guarantees are conditional commitments issued by Freedom Bank KZ to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support trade transactions or guarantee arrangements. The credit risk involved in issuing guarantees is essentially the same as that involved in extending loan facilities to customers. A significant portion of the issued guarantees are collateralized by cash. Total lending related commitments outstanding at March 31, 2022, were as follows: As of March 31, 2022 As of March 31, 2021 Bank guarantees $ 6,384 $ 6,594 Unfunded commitments under lines of credit 11,292 182 $ 17,676 $ 6,776 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company historically operated as a single operating segment. With the planned restructuring of the Company's operations, coupled with the continued expansion, there was an election to reorganize operations geographically into five regional segments: Central Asia, Europe, United States, Middle East/Caucasus and Russia (planned to be divested). These operating segments are based on how our CODM will be making decisions about allocating resources and assessing performance. The segment reporting has been recast to remove the Russian segment due to its presentation in the financial statements as discontinued operations. In addition, segment reporting was restated for the errors described in Note 4, and restated segment information was provided to CODM in their reports. The following tables summarize the Company's Statement of operation by its geographic segments. Intercompany balances were eliminated for separate disclosure: Year ended March 31, 2022 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe US Middle East/Caucasus Total Fee and commission income $ 24,374 $ 306,525 $ 4,545 — $ 335,444 Net gain/(loss) on trading securities 11,604 142,195 2,546 — 156,345 Interest income 75,130 14,540 483 — 90,153 Net gain/(loss) on foreign exchange operations 6,012 (5,598) 1,565 — 1,979 Net gain/(loss) on derivative 946 — — — 946 TOTAL REVENUE, NET 118,066 457,662 9,139 — 584,867 Interest expense $ 54,894 $ 8,747 $ 1,808 — $ 65,449 Fee and commission expense 7,945 64,518 780 — 73,243 Operating expense 42,076 27,069 19,136 283 88,564 Provision for impairment losses/(recoveries) 2,149 57 — — 2,206 Other expense/(income), net 489 7 819 (3) 1,312 TOTAL EXPENSE 107,553 100,398 22,543 280 230,774 NET INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 10,513 $ 357,264 $ (13,404) (280) $ 354,093 Income tax (expense)/benefit 1,237 (26,786) (12,989) 9 (38,529) NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS $ 11,750 $ 330,478 $ (26,393) (271) $ 315,564 Year ended March 31, 2021 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe US Middle East Caucasus Total Fee and commission income $ 17,055 $ 197,844 $ 1,097 — $ 215,996 Net gain on financial instruments through profit and loss 18,414 8 7,489 — 25,911 Interest income 18,498 3,635 682 — 22,815 Net gain/(loss) on foreign exchange operations 1,658 (300) (215) — 1,143 Net gain on derivative 86 — — — 86 TOTAL REVENUE, NET $ 55,711 $ 201,187 $ 9,053 — $ 265,951 Interest expense $ 12,770 $ 3,663 $ 2,173 — $ 18,606 Fee and commission expense 1,211 64,521 246 — 65,978 Operating expense 19,674 10,921 4,843 15 35,453 Provision for impairment losses 1,014 108 395 — 1,517 Other (expense)/income, net (88) (3) (15) — (106) TOTAL EXPENSE $ 34,581 $ 79,210 $ 7,642 15 $ 121,448 NET INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 21,130 $ 121,977 $ 1,411 (15) $ 144,503 Income tax (expense)/benefit 210 (14,013) (9,559) — (23,362) NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS $ 21,340 $ 107,964 $ (8,148) (15) $ 121,141 Year ended March 31, 2020 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe US Middle East Caucasus Total Fee and commission income $ 2,810 $ 58,382 $ — — $ 61,192 Net gain/(loss) on financial instruments through profit and loss 8,121 257 (46) — 8,332 Interest income 7,932 5,451 198 — 13,581 Net gain/(loss) on foreign exchange operations 517 (313) 84 — 288 Net gain/(loss) on derivative — — — — — TOTAL REVENUE, NET $ 19,380 $ 63,777 $ 236 — $ 83,393 Interest expense $ 9,533 $ 343 $ 324 — $ 10,200 Fee and commission expense 629 18,600 186 — 19,415 Operating expense 18,262 3,500 3,916 — 25,678 Provision for impairment losses (1,254) — — — (1,254) Other (expense)/income, net 282 (11) (8) — 263 TOTAL EXPENSE $ 27,452 $ 22,432 $ 4,418 — $ 54,302 NET INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ (8,072) $ 41,345 $ (4,182) — $ 29,091 Income tax (expense)/benefit (16) (4,467) (450) — (4,933) NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS $ (8,088) $ 36,878 $ (4,632) — $ 24,158 The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure: March 31, 2022 (recast) Central Asia Europe US Middle East Caucasus Held for Sale Total Total assets $ 1,207,149 $ 765,699 $ 172,661 $ 355 $ 825,419 $ 2,971,283 Total liabilities $ 985,938 $ 489,899 $ 175,121 $ 172 $ 812,478 $ 2,463,608 Net assets $ 221,211 $ 275,800 $ (2,460) $ 183 12,941 $ 507,675 March 31, 2021 (recast) Central Asia Europe US Middle East Caucasus Held for Sale Total Total assets 714,380 591,072 46,682 140 748,048 2,100,322 Total liabilities 557,747 530,227 60,106 3 676,568 1,824,651 Net assets 156,633 60,845 (13,424) 137 71,480 275,671 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the time of filing this annual report on Form 10-K with the SEC. Other than as disclosed below, during this period the Company did not have any additional material recognizable subsequent events. On May 17, 2022, the Company acquired two insurance companies in Kazakhstan: Insurance Company Freedom Finance Insurance JSC ("Freedom Insurance") and Life Insurance Company Freedom Finance Life JSC ("Freedom Life") . The purchase price of Freedom Insurance and Freedom Life was $12,440 and $12,100, respectively. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Accounting principles | The Company's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). These financial statements have been prepared on the accrual basis of accounting. |
Basis of presentation and principles of consolidation | The Company's consolidated financial statements present the consolidated accounts of FRHC, Freedom RU, Freedom Bank RU, Freedom KZ, Freedom Global, Freedom Bank KZ, Freedom EU, Freedom GE, Freedom UZ, PrimeEx, Freedom Technologies, Freedom AZ, FFIN, Freedom SPC, Freedom Commercial, Freedom AR and Freedom UA. All significant inter-company balances and transactions have been eliminated from the consolidated financial statements. |
Consolidation of variable interest entities | In accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. |
Use of estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing the Company's financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Revenue and expense recognition | Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Company's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other U.S. GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Company's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of non-interest income are as follows: • Commissions on brokerage services; • Commissions on banking services (money transfers, foreign exchange operations and other); and • Commissions on investment banking services (underwriting, market making, and bondholders' representation services). Under Topic 606, the Company is required to recognize incentive fees when they are probable and there is not a significant chance of reversal in the future. The Company recognizes revenue in accordance with the core principle by applying the following steps: • Step 1: Identify the contract(s) with a customer - A contract is an agreement between two or more parties that creates enforceable rights and obligations. • Step 2: Identify the performance obligations in the contract - A contract includes promises to transfer goods or services to a customer. If those goods or services are distinct, the promises are performance obligations and are accounted for separately. • Step 3: Determine the transaction price - The transaction price is the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The transaction price can be a fixed amount of customer consideration, but it may sometimes include variable consideration or consideration in a form other than cash. The transaction price also is adjusted for the effects of the time value of money if the contract includes a significant financing component and for any consideration payable to the customer. If the consideration is variable, an entity estimates the amount of consideration to which it will be entitled in exchange for the promised goods or services. The estimated amount of variable consideration will be included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. • Step 4: Allocate the transaction price to the performance obligations in the contract - An entity typically allocates the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or service promised in the contract. If a standalone selling price is not observable, an entity estimates it. Sometimes, the transaction price includes a discount or a variable amount of consideration that relates entirely to a part of the contract. • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation - An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). The amount of revenue recognized is the amount allocated to the satisfied performance obligation. A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer services to a customer). For performance obligations satisfied over time, an entity recognizes revenue over time by selecting an appropriate method for measuring the entity's progress toward complete satisfaction of that performance obligation. |
Interest income | Interest income Interest income on loans issued, trading securities and reverse repurchase agreement obligations are recognized based on the contractual provisions of the underlying arrangements. Loan premiums and discounts are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. Unamortized premiums, discounts and other basis adjustments on trading securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. |
Derivative financial instruments | In the normal course of business, the Company invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. |
Functional currency | Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company's functional currencies are the Russian ruble, European euro, U.S. dollar, Ukrainian hryvnia, Uzbekistani som, Kazakhstan tenge, Kyrgyzstani som, Azerbaijani manat and Armenian dram, Great Britain pound, Armenian dram and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders' equity as "Accumulated other comprehensive loss". |
Cash and cash equivalents | Cash and cash equivalents are generally comprised of certain highly liquid investments with maturities of three months or less at the date of purchase. Cash and cash equivalents include reverse repurchase agreements which are recorded at the amounts at which the securities were acquired or sold plus accrued interest. |
Securities reverse repurchase and repurchase agreements | A reverse repurchase agreement is a transaction in which the Company purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Company sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Company retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers' needs and to finance its inventory positions. The Company enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. |
Available-for-sale securities | Financial assets categorized as available-for-sale ("AFS") are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Listed shares and listed redeemable notes held by the Company that are traded in an active market are classified as AFS and are stated at fair value. The Company has investments in unlisted shares that are not traded in an active market but that are also classified as investments AFS and stated at fair value (because Company management considers that fair value can be reliably measured). Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive loss, with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, dividend income and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments' revaluation reserve is then reclassified to Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Trading securities | Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in net gain on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Margin lending | Margin lending The Company engages in securities financing transactions with and for clients through margin lending. Under agreements, the Company is permitted to sell or repledge securities received as collateral and use these securities to secure securities acquired under resale agreements, enter into securities lending transactions or deliver these securities to counterparties to cover short positions. |
Debt securities issued | Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Company purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Brokerage and other receivables | Brokerage and other receivables comprise commissions and receivables related to the securities brokerage and banking activity of the Company. At initial recognition, brokerage and other receivables are recognized at fair value. Subsequently, brokerage and other receivables are carried at cost net of any allowance for impairment losses. |
Derecognition of financial assets | A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: • The transferred financial assets have been isolated from the Company - put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership. • The transferee has rights to pledge or exchange financial assets. • The Company or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Company has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. |
Impairment of long-lived assets | In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of March 31, 2022, the Company recognized write-off expenses of client base that was recognized with the acquisition of Zerich in the amount of $— due to economic uncertainty during our fourth fiscal quarter stemming from the |
Impairment of goodwill | As of March 31, 2022 and 2021, goodwill recorded in the Company's Consolidated Balance Sheets totaled $5,388 and $7,137 respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. In its annual goodwill impairment test, the Company estimated the fair value of the reporting unit based on the income approach (also known as the discounted cash flow method) and determined the fair value of the Company's goodwill exceeded the carrying amount of the Company's goodwill. During the year ended March 31, 2022, the conflict between Russia and Ukraine escalated, and military operations began on the territory of Ukraine. The conflict resulted in sanctions being imposed on Russia. As a result of this conflict, the Company's subsidiaries operating in Russia and Ukraine incurred significant losses. The current uncertainty surrounding the conflict between Russia and Ukraine makes it difficult to perform reasonable projections of future income and expenses of the Russian and Ukrainian subsidiaries. The Company recognized impairment loss for the goodwill previously recognized for Freedom Bank RU, Freedom UA and Zerich in the amount of $2,300 through other expenses,net as presented on the consolidated statements of operations and statements of other comprehensive income. |
Assets and Liabilities Held for Sale | Asset and Liabilities Held for Sale The Company classifies assets and liabilities as held for sale in the period when all of the relevant criteria to be classified as held for sale are met. Criteria include management's commitment to sell such assets and liabilities ("the disposal group") in their present condition and the sale being deemed probable of being completed within one year. Assets held for sale are reported at the lower of their carrying value or fair value less cost to sell. Any loss resulting from the measurement is recognized in the period the held for sale criteria are met. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the initial carrying value of the disposal group. Assets held for sale are not amortized or depreciated. A disposal group that represents a strategic shift for the Company or is acquired with the intention to sell is reflected as a discontinued operation on the Consolidated Statements of Operation and Statement of Other Comprehensive Income and prior periods are recast to reflect the earnings or losses as income from discontinued operations. The Consolidated Financial Statements and related Notes reflect the securities brokerage and complementary banking operations in Russia as discontinued operations as the Company has entered into an agreement to divest these operations. |
Income taxes | The Company recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company will include interest and fines arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of March 31, 2022 and 2021, the Company had no accrued interest or fines related to uncertain tax positions. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has presented the deferred tax impacts of GILTI tax in its consolidated financial statements as of March 31, 2022 and 2021. |
Financial instruments | Financial instruments are carried at fair value as described below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. Fair value is the current bid price for financial assets, current ask price for financial liabilities and the average of current bid and ask prices when the Company is both in short and long positions for the financial instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange or other institution and those prices represent actual and regularly occurring market transactions on an arm's length basis. |
Leases | The Company follows ASU No. 2016-02, "Leases (Topic 842)," which requires leases with durations greater than twelve months to be recognized on the balance sheet. Operating lease assets and corresponding lease liabilities were recognized on the Company's Consolidated Balance Sheets. Refer to Note 29 - Leases, within the notes to consolidated financial statements for additional disclosure and significant accounting policies affecting leases. |
Fixed assets | Fixed assets are carried at cost, net of accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range between three |
Segment information | Historically, the Company's chief operating decision maker ("CODM"), who is its chief executive officer, has operated the Company as a single operating segment offering financial services to its customers in a single geographic region covering Eurasia. In conjunction with the decision to divest the Company of its Russian subsidiaries, and its continued expansion, the Company has restructured its operations into five geographical regions ("segments"): Kazakhstan, Europe, the U.S., Middle East/Causcasus, and Russian (planned to be divested). In order to determine appropriate segment disclosure ASC 280-10-55-26 the Company followed steps: • Identified operating segments using the management approach; • Determined whether two or more operating segments may be aggregated into a single operating segment; • Applied the quantitative thresholds and other criteria to determine reportable segments; • Considered what information should be disclosed for each reportable segment; |
Advertising expense | For the years ended March 31, 2022, 2021 and 2020 the Company had expenses related to advertising in the amount of $10,059, $5,027 and $3,444 respectively. All costs associated with advertising are expensed in the period incurred. |
Recent accounting pronouncements | In June 2016 the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. In November 2019, the FASB issued ASU 2019-10 "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)". The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two). Those other entities include private companies, smaller public companies, not-for-profit organizations, and employee benefit plans. Under this philosophy, a major update would first be effective for bucket-one entities, that is, public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC's definition. The Master Glossary of the Codification defines public business entities and SEC filers. All other entities, including SRCs, other public business entities, and nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, it is anticipated that the Board will consider requiring an effective date staggered at least two years after bucket one for major updates. The Company is currently an SRC and according to ASU 2019-10, qualifies for bucket two. Accordingly, ASU 2016-13 and ASU 2017-12 are effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that ASU 2016-13 and 2017-12 will have on its consolidated financial statements and related disclosures. In May 2021 the FASB issued Accounting Standards Update No. 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options, a consensus of the Emerging Issues Task Force (EITF) , which amends the FASB Accounting Standards Codification (ASC or the"Codification") to provide explicit guidance, and, thus, reduce diversity in practice, on accounting by issuers for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after the modification or exchange. This amendment provides that for an entity that presents earnings per share (EPS) in accordance with Topic 260, the effects of a modification or an exchange of a freestanding equity-classified written call option that is recognized as a dividend should be an adjustment to net income (or net loss) in the basic EPS calculation. The amended guidance becomes mandatorily effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and should be applied prospectively to modifications or exchanges occurring on or after the effective date. The Company does not expect that the new guidance will significantly impact on its consolidated financial statements. In August 2021 the FASB issued Accounting Standard Update No 2021-06 "Presentation of Financial Statements (Topic 205), Financial Services — Depository and Lending (Topic 942), and Financial Services — Investment Companies (Topic 946)" which amends various SEC paragraphs pursuant to the issuance of SEC Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. SEC issued Final Rulemaking Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, which modified the disclosure and presentation requirements concerning acquisitions and disposals of businesses. Primarily, the new rules amended (1) Rule 1-02(w) of Regulation S-X, Definition of Terms Used in Regulation S-X, Significant Subsidiary, (2) Rule 3-05 of Regulation S-X, Financial Statements of Businesses Acquired or to Be Acquired, (3) Rule 8-05 of Regulation S-X, Pro Forma Financial Information (which covers smaller reporting companies), and (4) Article 11 of Regulation S-X, Pro Forma Financial Information. In addition, new Rule 6-11 of Regulation S-X, Financial Statements of Funds Acquired or to Be Acquired, covering acquisitions specific to investment companies, was added. Corresponding changes were made to other Regulation S-X rules, various Securities Act and Securities Exchange Act rules, and Forms 8-K and 10-K. Compliance with the amended rules is required from the beginning of a registrant's fiscal year commencing after December 31, 2020 (i.e., the mandatory compliance date). Acquisitions and dispositions that are probable or consummated after the mandatory compliance date are required to be evaluated for significance pursuant to the amended rules. Early compliance is permitted, provided that all the amended rules are applied in their entirety from the early compliance date. ASU No. 2021-06 amends SEC material in the Codification to give effect to Release No. 33-10786. The new rules apply to fiscal years ending on or after December 15, 2021 (i.e., calendar-year 2021). Early voluntary compliance is allowed. Note that the rescission of Industry Guide 3 is effective on January 1, 2023. ASU No. 2021-06 amends SEC material in the Codification to give effect to Release No. 33-10835. The Company is currently evaluating the impact that ASU 2021-06 will have on its consolidated financial statements and related disclosures. In October 2021, The SEC issued the amendment of Compensation-Stock Compensation No. 2021-07, Determining the Current Price of an Underlying Share for Equity-Classified Share-Based Awards a consensus of the Private Company Council. The main amendments were concentrated in add paragraphs 718-10-30-20C through 30-20H and their related heading, with a link to transition paragraph 718-10-65-16, in which as a practical expedient, a nonpublic may use a value determined by the reasonable application of a reasonable valuation method as the current price of its underlying share for purposes of determining the fair value of an award that is classified as equity in accordance with paragraphs 718-10-25-6 through 25-18 at grant date or upon a modification. Moreover, in the topic was amended paragraph 718-10-50-2(f), with a link to transition paragraph 718-10-65-16, which states that listed requirements indicates the minimum information needed to achieve the objectives in paragraph 718-10-50-1 and illustrates how the disclosure requirements might be satisfied. In some circumstances, an entity may need to disclose information beyond the following to achieve the disclosure objectives. Firstly, a description of the method used during the year to estimate the fair value (or calculated value) of awards under share-based payment arrangements. Secondly, a description of the significant assumptions used during the year to estimate the fair value (or calculated value) of share-based compensation awards, including: i. Expected term of share options and similar instruments, including a discussion of the method used to incorporate the contractual term of the instruments and grantees' expected exercise and post vesting termination behavior into the fair value of the instrument. ii. Expected volatility of the entity's shares and the method used to estimate it. An entity that uses a method that employs different volatilities during the contractual term shall disclose the range of expected volatilities used and the weighted-average expected volatility. iii. Expected dividends. iv. Risk-free rate(s). v. Discount for post vesting restrictions and the method for estimating it. vi. Practical expedient for current price input. The topic also contains added paragraph 718-10-65-16, that illustrates the transition and effective date information related to Accounting Standards Update No. 2021-07 by the listed requirement: a. The pending content that links to this paragraph shall be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. b. An entity shall apply the pending content that links to this paragraph prospectively. c. Early application, including application in an interim period, is permitted for financial statements that have not been issued or made available for issuance as of October 25, 2021. The Company is currently evaluating the impact that ASU 2021-06 will have on its consolidated financial statements and related disclosures. In October 2021, The SEC issued the amendment of Business Combinations (Topic 805), No. 2021-08, which related to Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The main amendments were concentrated in paragraphs 805-20-25-16 through 25-17 and add paragraph 805-20-25-28C and its related heading, with a link to transition paragraph 805-20-65-3, where the topic provides limited exceptions to the recognition and measurement principles applicable to business combinations. Moreover, the topic amends paragraphs 805-20-30-10 through 30-12 and add paragraphs 805-20-30-27 through 30-30 and their related heading, with a link to transition paragraph 805-20-65-3. Paragraph 805-20-25-16 notes that the Business Combinations Topic provides limited exceptions to the recognition and measurement principles applicable to business combinations. In the topic has been added paragraph 805-20-65-3, in which the following represents the transition and effective date information related to Accounting Standards Update No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers: a. For public business entities, the pending content that links to this paragraph shall be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. The Company is currently evaluating the impact that ASU 2021-06 will have on its consolidated financial statements and related disclosures In March 2022 the FASB issued Accounting Standards Update No. 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method", which introduces the amendments, which targeted on improvements to the optional hedge accounting model with the objective of improving hedge accounting to better portray the economic results of an entity's risk management activities in its financial statements. The amendments in this Update apply to the Company that elect to apply the portfolio layer method of hedge accounting in accordance with Table of Contents Topic 815. For a closed portfolio of prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, the last-of-layer method allows an entity to hedge a stated amount of the asset or assets in the closed portfolio that is anticipated to be outstanding for the designated hedge period. If the requirements for the last-of-layer method are met, prepayment risk is not incorporated into the measurement of the hedged item. Accordingly, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that ASU 2022-01 will have on its consolidated financial statements and related disclosures. In March 2022 the FASB issued Accounting Standards Update No. 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures", which introduces the amendments on solving two issues of creditors related to troubled debt restructurings and gross writeoffs of vintage debt disclosures. The amendments in Update 2016-13 require that an entity measure and record the lifetime expected credit losses on an asset that is within the scope of the Update upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. Investors and preparers observed that the additional designation of a loan modification as a TDR and the related accounting are unnecessarily complex and no longer provide decision-useful information. Moreover, Investors and other financial statement users observed that disclosing gross writeoffs by year of origination provides important information that allows them to better understand changes in the credit quality of an entity's loan portfolio and underwriting performance. Accordingly, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that ASU 2022-02 will have on its consolidated financial statements and related disclosures. |
Financing Receivable | Loans The Company's loan portfolio is divided into three portfolio segments: credit cards, mortgages and retail banking loans. Credit cards consist of loans provided to individuals and businesses through the cards. Mortgage loans consist of loans provided to individuals to purchase real estate, which is used as collateral for the loan. Retail banking loans consist of unsecured loans provided to individuals. Loans Acquired All purchased loans are initially recorded at fair value, which includes consideration of expected future losses, at the date of the loan acquisition. To determine the fair value of loans at the date of acquisition, the Company estimates the discounted contractual cash flows due using an observable market rate of interest, adjusted for factors such as probable default rates of the borrowers, and the loan terms that a market participant would consider in determining fair value. In determining fair value, contractual cash flows are adjusted to include prepayment estimates based upon historical payment trends, forecasted default rates and loss severities and other relevant factors. The difference between the fair value and the contractual cash flows is recorded as a loan premium or discount, which may relate to either credit or non-credit factors, at acquisition. The Company accounts for purchased loans under the accounting guidance for purchased financial assets with credit deterioration when, at the time of purchase, the loans have experienced a more-than-insignificant deterioration in credit quality since origination. The Company recognizes an allowance for credit losses on purchased loans that have not experienced a more-than-insignificant deterioration in credit quality since origination at the time of purchase through earnings in a manner that is consistent with originated loans. The policies relating to the allowance for credit losses on loans is described below in the "Estimate of Incurred Loan Losses" section of this Note. Estimate of Incurred Loan Losses The allowance represents management's current estimate of incurred loan losses inherent in the Company's loan portfolio as of each balance sheet date. The provision for credit losses reflects credit losses the Company believes have been incurred and will eventually be recognized over time through charge-offs. Management performed a quarterly analysis of the Company's loan portfolio to determine if impairment had occurred and to assess the adequacy of the allowance based on historical and current trends as well as other factors affecting credit losses. The Company applied separate calculations of the allowances for its credit cards, mortgages and retail loan portfolios. Based on the adopted methodology, the Company estimated the probability of default based on historical default rates, adjusted for certain macro indicators, such as GDP, average exchange rates, unemployment rate and real wage index. Loss given default is calculated based on the collateral coverage of the loans. The Company's allowance for loan losses consists of two components that are allocated to cover the estimated probable losses in each loan portfolio based on the results of the Company's detailed review and loan impairment assessment process: (i) a component for loans collectively evaluated for impairment; and (ii) an asset-specific component for individually impaired loans. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the year ended March 31, 2022, were as follows: Amount Balance as of March 31, 2021 $ 7,137 Impairment of goodwill of Zerich, Freedom Bank RU and Freedom UA (2,300) Foreign currency translation 551 Balance as of March 31, 2022 $ 5,388 |
RECAST (Tables)
RECAST (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of prior period statements | The previously issued Consolidated Balance Sheet as of March 31, 2022 and March 31, 2021, and Consolidated Statement of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022, March 31, 2021 and March 31, 2020, have been revised as follows: As of March 31, 2022 As previously reported Recast discontinued operations As recast ASSETS Cash and cash equivalents $ 625,547 $ (400,884) $ 224,663 Restricted cash 553,680 (5,730) 547,950 Trading securities 1,203,479 (122,497) 1,080,982 Available-for-sale securities, at fair value 1 — 1 Brokerage and other receivables, net 357,567 (210,087) 147,480 Loans issued 94,797 (2,394) 92,403 Deferred tax assets 12,018 (11,161) 857 Fixed assets, net 21,365 (3,978) 17,387 Intangible assets, net 5,791 (2,279) 3,512 Goodwill 5,388 — 5,388 Right-of-use asset 15,669 (8,922) 6,747 Other assets, net 25,707 (7,213) 18,494 Assets held for sale — 825,419 825,419 TOTAL ASSETS $ 2,921,009 $ 50,274 $ 2,971,283 LIABILITIES AND SHAREHOLDERS' EQUITY Securities repurchase agreement obligations $ 775,178 $ (32,468) $ 742,710 Customer liabilities 1,417,937 (651,310) 766,627 Trade payables 45,229 (147) 45,082 Current income tax liability 14,556 — 14,556 Securities sold, not yet purchased - at fair value 14,103 (238) 13,865 Loans received 3,538 — 3,538 Debt securities issued 99,027 (64,637) 34,390 Lease liability 15,315 (8,530) 6,785 Deferred income tax liabilities — — — Deferred distribution payments 8,534 — 8,534 Other liabilities 19,917 (4,874) 15,043 Liabilities held for sale — 812,478 812,478 TOTAL LIABILITIES $ 2,413,334 $ 50,274 $ 2,463,608 Commitments and Contingent Liabilities (Note 30) — — — SHAREHOLDERS' EQUITY Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding — — — Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively 59 — 59 Additional paid in capital 141,340 — 141,340 Retained earnings 426,563 — 426,563 Accumulated other comprehensive loss (53,291) — (53,291) TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY $ 514,671 $ — $ 514,671 Non-controlling interest (6,996) — (6,996) TOTAL SHAREHOLDERS' EQUITY $ 507,675 $ — $ 507,675 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,921,009 $ 50,274 $ 2,971,283 As of March 31, 2021 As previously reported Recast discontinued operations As recast ASSETS Cash and cash equivalents $ 698,828 $ (530,811) $ 168,017 Restricted cash 437,958 52,733 490,691 Trading securities 736,188 (148,642) 587,546 Available-for-sale securities, at fair value 1 — 1 Brokerage and other receivables, net 64,801 (15,283) 49,518 Loans issued 11,667 (2,041) 9,626 Fixed assets, net 18,385 (2,814) 15,571 Intangible assets, net 9,785 (5,883) 3,902 Goodwill 7,868 (731) 7,137 Right-of-use asset 13,262 (8,636) 4,626 Other assets 19,902 (4,263) 15,639 Assets held for sale — 748,048 748,048 TOTAL ASSETS $ 2,018,645 $ 81,677 $ 2,100,322 LIABILITIES AND SHAREHOLDERS’ EQUITY Securities repurchase agreement obligations $ 426,715 $ (51,997) $ 374,718 Customer liabilities 1,163,697 (491,872) 671,825 Trade payables 22,304 (302) 22,002 Current income tax liability 14,843 (644) 14,199 Securities sold, not yet purchased – at fair value 8,592 (23) 8,569 Loans received 3,373 — 3,373 Debt securities issued 68,443 (37,094) 31,349 Lease liability 13,249 (8,438) 4,811 Deferred income tax liabilities 4,385 (378) 4,007 Deferred distribution payments 8,534 — 8,534 Other liabilities 8,839 (4,143) 4,696 Liabilities held for sale — 676,568 676,568 TOTAL LIABILITIES $ 1,742,974 $ 81,677 $ 1,824,651 Commitments and Contingent Liabilities (Note 30) — — — SHAREHOLDERS’ EQUITY Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding — — — Common stock - $0.001 par value; 500,000,000 shares authorized; 58 — 58 Additional paid in capital 104,672 — 104,672 Retained earnings 208,628 — 208,628 Accumulated other comprehensive loss (36,046) — (36,046) TOTAL FRHC SHAREHOLDERS’ EQUITY $ 277,312 $ — $ 277,312 Non-controlling interest (1,641) — (1,641) TOTAL SHAREHOLDERS’ EQUITY $ 275,671 $ — $ 275,671 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,018,645 $ 81,677 $ 2,100,322 Year ended March 31, 2022 As previously reported* Recast discontinued operations As recast Revenue: Fee and commission income $ 417,774 $ (82,330) $ 335,444 Net gain on trading securities 77,671 78,674 156,345 Interest income 105,965 (15,812) 90,153 Net loss on foreign exchange operations (37,693) 39,672 1,979 Net gain on derivative 946 — 946 TOTAL REVENUE, NET 564,663 20,204 584,867 Expense: Fee and commission expense 81,231 (7,988) 73,243 Interest expense 75,899 (10,450) 65,449 Operating expense 161,593 (73,029) 88,564 Provision for impairment losses 2,985 (779) 2,206 Other expense, net 6,061 (4,749) 1,312 TOTAL EXPENSE 327,769 (96,995) 230,774 INCOME BEFORE INCOME TAX 236,894 117,199 354,093 Income tax expense (25,525) (13,004) (38,529) INCOME FROM CONTINUING OPERATIONS 211,369 104,195 315,564 Income/(loss) before income tax (expense)/benefit of discontinued operations — (117,199) (117,199) Income tax (expense)/benefit of discontinued operations — 13,004 13,004 Income/(loss) from discontinued operations — (104,195) (104,195) NET INCOME 211,369 — 211,369 Less: Net loss attributable to non-controlling interest in subsidiary (6,566) — (6,566) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 217,935 $ — $ 217,935 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — — — Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — — — Foreign currency translation adjustments, net of tax effect (17,245) — (17,245) OTHER COMPREHENSIVE INCOME/(LOSS) (17,245) — (17,245) COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 194,124 $ — $ 194,124 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (6,566) — (6,566) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 200,690 $ — $ 200,690 For the year ended March 31, 2022, the Company’s EPS as reported was 3.56 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 5.43 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.67 for both basic and diluted total EPS. Year ended March 31, 2021 As previously reported* Recast discontinued operations As recast Revenue: Fee and commission income $ 268,776 $ (52,780) $ 215,996 Net gain on trading securities 46,186 (20,275) 25,911 Interest income 34,036 (11,221) 22,815 Net gain on foreign exchange operations 3,428 (2,285) 1,143 Net gain on derivative 125 (39) 86 TOTAL REVENUE, NET 352,551 (86,600) 265,951 Expense: Fee and commission expense 73,100 (7,122) 65,978 Interest expense 27,366 (8,760) 18,606 Operating expense 77,434 (41,981) 35,453 Provision for impairment losses 1,561 (44) 1,517 Other expense/(income), net 68 (174) (106) TOTAL EXPENSE 179,529 (58,081) 121,448 INCOME BEFORE INCOME TAX 173,022 (28,519) 144,503 Income tax expense (30,098) 6,736 (23,362) INCOME FROM CONTINUING OPERATIONS 142,924 (21,783) 121,141 Income before income tax expense of discontinued operations — 28,518 28,518 Income tax expense of discontinued operations — (6,735) (6,735) Income from discontinued operations — 21,783 21,783 NET INCOME 142,924 — 142,924 Less: Net income attributable to non-controlling interest in subsidiary 631 — 631 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 142,293 $ — $ 142,293 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — — — Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect 71 — 71 Foreign currency translation adjustments, net of tax effect 1,857 — 1,857 OTHER COMPREHENSIVE INCOME 1,928 — 1,928 COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 144,852 $ — $ 144,852 Less: Comprehensive income attributable to non-controlling interest in subsidiary 631 — 631 COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 144,221 $ — $ 144,221 For the year ended March 31, 2021, the Company’s EPS as reported was 2.45 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 2.06 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.44 and 2.43 for basic and diluted total EPS, respectively. Year ended March 31, 2020 As previously reported* Recast discontinued operations As recast Revenue: Fee and commission income $ 87,473 $ (26,281) $ 61,192 Net gain on trading securities 14,923 (6,591) 8,332 Interest income 17,329 (3,748) 13,581 Net gain/(loss) on foreign exchange operations 2,315 (2,027) 288 Net loss on derivative (138) 138 — TOTAL REVENUE, NET 121,902 (38,509) 83,393 Expense: Fee and commission expense 21,936 (2,521) 19,415 Interest expense 12,399 (2,199) 10,200 Operating expense 59,990 (34,312) 25,678 Provision for impairment recoveries (1,164) (90) (1,254) Other expense, net 609 (346) 263 TOTAL EXPENSE 93,770 (39,468) 54,302 INCOME BEFORE INCOME TAX 28,132 959 29,091 Income tax expense (6,002) 1,069 (4,933) INCOME FROM CONTINUING OPERATIONS 22,130 2,028 24,158 Income/(loss) before income tax (expense)/benefit of discontinued operations — (958) (958) Income tax expense of discontinued operations — (1,070) (1,070) Income/(loss) from discontinued operations — (2,028) (2,028) NET INCOME 22,130 — 22,130 Less: Net loss attributable to non-controlling interest in subsidiary (2,707) — (2,707) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 24,837 $ — $ 24,837 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect (71) — (71) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — — — Foreign currency translation adjustments, net of tax effect (14,851) — (14,851) OTHER COMPREHENSIVE INCOME/(LOSS) (14,922) — (14,922) COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 7,208 $ — $ 7,208 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (2,707) — (2,707) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 9,915 $ — $ 9,915 For the year ended March 31, 2020, the Company’s EPS as reported was 0.38 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 0.46 for both basic and diluted EPS for continuing operations, to (0.03) for both basic and diluted EPS for discontinued operations, and to 0.43 for both basic and diluted total EPS. *amounts with restatement in fee and commission income and interest income, for more information please see Note 4 - Restatement. |
RESTATEMENT (Tables)
RESTATEMENT (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following tables summarizes the impact of these correction of errors for the period presented for the years ended March 31, 2022, 2021 and 2020: For the year ended March 31, 2022 As previously reported Adjustments for discontinued operations As recast Correction of errors related to classification of loans and bank customer accounts Correction of errors related to classification of funds received for financing mortgage loans As restated Net cash flows used in operating activities $ (347,988) $ (30,183) $ (378,171) $ (57,960) $ (6,876) $ (443,007) Net cash flows used in investing activities (8,703) 146 (8,557) (90,298) — (98,855) Net cash flows from financing activities 453,684 (998) 452,686 148,258 6,876 607,820 Effect of changes in foreign exchange rates on cash and cash equivalents (54,552) — (54,552) — — (54,552) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 42,441 $ (31,035) $ 11,406 $ — $ — $ 11,406 For the year ended March 31, 2021 As previously reported Adjustments for discontinued operations As recast Correction of errors related to classification of loans and bank customer accounts As restated Net cash flows from operating activities $ 565,299 $ 24,753 $ 590,052 $ (55,615) $ 534,437 Net cash flows from investing activities 97,040 — 97,040 (1,219) 95,821 Net cash flows from financing activities 348,411 (822) 347,589 56,834 404,423 Effect of changes in foreign exchange rates on cash and cash equivalents (3,769) — (3,769) — (3,769) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 1,006,981 $ 23,931 $ 1,030,912 $ — $ 1,030,912 For the year ended March 31, 2020 As previously reported Adjustments for discontinued operations As recast Correction of errors related to classification of loans and bank customer accounts As restated Net cash flows from operating activities $ 44,271 $ 59,422 $ 103,693 $ (21,071) $ 82,622 Net cash flows used in investing activities (10,854) (131) (10,985) (8,778) (19,763) Net cash flows from financing activities 33,109 (4,883) 28,226 29,849 58,075 Effect of changes in foreign exchange rates on cash and cash equivalents (25,141) — (25,141) — (25,141) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 41,385 $ 54,408 $ 95,793 $ — $ 95,793 Year ended March 31, 2022 As previously reported Adjustments for discontinued operations As recast Correction of errors As restated Fee and commission income $ 431,938 $ (82,330) $ 349,608 $ (14,164) 335,444 Net gain on trading securities 77,671 78,674 156,345 — 156,345 Interest income 91,801 (15,812) 75,989 14,164 90,153 Net gain on foreign exchange operations (37,693) 39,672 1,979 — 1,979 Net loss on derivative 946 — 946 — 946 TOTAL REVENUE, NET $ 564,663 $ 20,204 $ 584,867 $ — $ 584,867 Year ended March 31, 2021 As previously reported Adjustments for discontinued operations As recast Correction of errors As restated Fee and commission income $ 271,939 $ (52,780) $ 219,159 $ (3,163) 215,996 Net gain on trading securities 46,186 (20,275) 25,911 — 25,911 Interest income 30,873 (11,221) 19,652 3,163 22,815 Net gain on foreign exchange operations 3,428 (2,285) 1,143 — 1,143 Net loss on derivative 125 (39) 86 — 86 TOTAL REVENUE, NET $ 352,551 $ (86,600) $ 265,951 $ — $ 265,951 Year ended March 31, 2020 As previously reported Adjustments for discontinued operations As recast Correction of errors As restated Fee and commission income $ 92,668 $ (26,281) $ 66,387 $ (5,195) 61,192 Net gain on trading securities 14,923 (6,591) 8,332 — 8,332 Interest income 12,134 (3,748) 8,386 5,195 13,581 Net gain on foreign exchange operations 2,315 (2,027) 288 — 288 Net loss on derivative (138) 138 — — — TOTAL REVENUE, NET $ 121,902 $ (38,509) $ 83,393 $ — $ 83,393 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | March 31, 2022 March 31, 2021 (recast) (recast) Current accounts with brokers $ 70,830 $ 37,324 Current accounts with commercial banks 69,982 61,203 Current account with National Bank (Kazakhstan) 42,517 36,726 Securities purchased under reverse repurchase agreements 19,725 11,917 Petty cash in bank vault and on hand 18,467 14,916 Accounts with stock exchange 2,828 5,873 Current account with Central Depository (Kazakhstan) 314 58 Total cash and cash equivalents $ 224,663 $ 168,017 |
Schedule of repurchase agreements | As of March 31, 2022 and 2021, the cash and cash equivalents balance included collateralized securities received under reverse repurchase agreements on the terms presented below: March 31, 2022 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements Corporate equity 16.90 % $ 152 $ — $ 152 US sovereign debt 16.38 % 9,952 — 9,952 Non-US sovereign debt 12.45 % 9,565 — 9,565 Corporate debt 11.88 % 56 — 56 Total $ 19,725 $ — $ 19,725 March 31, 2021 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Total Securities purchased under reverse repurchase agreements Non-US sovereign debt 0.88 % $ 1,785 $ — $ 1,785 Corporate debt 10.15 % 8,460 — 8,460 Corporate equity 13.09 % 110 — 110 US sovereign debt 0.50 % 1,562 — 1,562 Total $ 11,917 $ — $ 11,917 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Restricted Cash [Abstract] | |
Schedule of restricted cash | Restricted cash for the periods ended March 31, 2022 and 2021, consisted of: March 31, 2022 March 31, 2021 (recast) (recast) Brokerage customers' cash $ 531,032 $ 482,136 Deferred distribution payment 8,534 8,534 Guaranty deposits 5,540 21 Restricted bank accounts 2,844 — Total restricted cash $ 547,950 $ 490,691 |
TRADING AND AVAILABLE-FOR-SAL_2
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Schedule of trading and available-for-sale securities | As of March 31, 2022 and 2021, trading and available-for-sale securities consisted of: March 31, 2022 March 31, 2021 (recast) (recast) Corporate debt $ 662,416 $ 301,899 Non-US sovereign debt 342,786 239,630 Corporate equity 64,023 39,279 US sovereign debt 10,306 4,661 Exchange traded notes 1,451 2,077 Total trading securities $ 1,080,982 $ 587,546 Equity securities 1 1 Total available-for-sale securities, at fair value $ 1 $ 1 |
Schedule of present securities assets at fair value | The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2022 and 2021: Weighted average interest rate Total Fair Value Measurements at March 31, 2022 (recast) using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 9.61 % $ 662,416 $ 661,821 $ — $ 595 Non-U.S. sovereign debt 13.11 % 342,786 334,491 — 8,296 Corporate equity — 64,023 63,496 275 251 U.S. sovereign debt 2.36 % 10,306 10,306 — — Exchange traded notes — 1,451 1,451 — — Total trading securities $ 1,080,982 $ 1,071,565 $ 275 $ 9,142 Equity securities — $ 1 $ — $ — $ 1 Total available-for-sale securities, at fair value $ 1 $ — $ — $ 1 Weighted average interest rate Total Fair Value Measurements at March 31, 2021 (recast) using Quoted Prices in Active Significant Other Significant unobservable Corporate debt 9.22 % $ 301,899 $ 301,539 $ — $ 360 Non-U.S. sovereign debt 8.06 % 239,630 239,630 — — Corporate equity — 39,279 20,606 — 18,673 U.S. sovereign debt 1.68 % 4,661 4,661 — — Exchange traded notes — 2,077 2,077 — — Total trading securities $ 587,546 $ 568,513 $ — $ 19,033 Equity securities — $ 1 $ — $ — $ 1 Total available-for-sale securities, at fair value $ 1 $ — $ — $ 1 |
Schedule of valuation techniques and significant level 3 inputs | The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2022 and 2021. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of March 31, FV as of March 31, Significant Unobservable Inputs % Corporate equity DCF $ — $ 18,370 Discount rate 10.6% Estimated number of years 9 years Corporate equity DCF $ 251 $ 303 Discount rate 20.0% Estimated number of years 9 years Corporate debt DCF $ 595 $ 360 Discount rate 45.0% Estimated number of years 3 months Non-US sovereign debt DCF $ 7,524 $ — Discount rate 69.0% Estimated number of years 11 years Non-US sovereign debt DCF $ 772 $ — Discount rate 13.9% Estimated number of years 1 year $ 9,142 $ 19,033 As of March 31, 2022, shares of SPBX held by the Company were transferred from level 3 to level 1, due to active trades on the market. During the year ended March 31, 2022, market trades of SPBX shares were executed in the market, and market data for these shares became available. The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended March 31, 2022: Trading Available-for-sale securities Balance as of March 31, 2020 (recast) $ 11,259 $ 1 Sale of investments that use Level 3 inputs (2) — Purchase of investments that use Level 3 inputs 736 — Revaluation of investments that use Level 3 inputs 7,040 — Foreign currency translation — — Balance as of March 31, 2021 (recast) $ 19,033 $ 1 Reclassification to level 3 682 — Reclassification to level 1 (18,371) Purchase of investments that use Level 3 inputs 10,812 — Revaluation of investments that use Level 3 inputs (3,014) — Foreign currency translation — — Balance as of March 31, 2022 (recast) $ 9,142 $ 1 |
Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities | The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of March 31, 2022 and 2021: March 31, 2022 (recast) Assets Unrealized loss Assets Equity securities $ 1 $ — $ 1 Balance as of March 31, 2022 $ 1 $ — $ 1 March 31, 2021 (recast) Assets Unrealized loss Assets Equity securities $ 1 $ — $ 1 Balance as of March 31, 2021 $ 1 $ — $ 1 |
BROKERAGE AND OTHER RECEIVABL_2
BROKERAGE AND OTHER RECEIVABLES, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of brokerage and other receivables | Brokerage and other receivables, net of the Company are comprised of the following: March 31, 2022 March 31, 2021 (recast) (recast) Margin lending receivables $ 138,983 $ 43,138 Receivables from brokerage clients 4,439 3,896 Long-term installments receivables 1,367 1,280 Receivable from sale of securities 884 484 Bank commissions receivable 598 697 Receivable for underwriting and market-making services 296 564 Dividends accrued 45 1,392 Other receivables 2,975 48 Allowance for receivables (2,107) (1,981) Total brokerage and other receivables, net $ 147,480 $ 49,518 On March 31, 2022 and 2021, amounts due from a single related party customer were $102,669 and $8,948, respectively or 70% and 14% respectively, of total brokerage and other receivables, net. Based on historical data, the Company considers receivables due from related parties fully collectible. As of March 31, 2022 and 2021, using historical and statistical data, the Company recorded an allowance for brokerage receivables in the amounts of $2,107 and $1,981, respectively. |
LOAN ISSUED (Tables)
LOAN ISSUED (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of loans issued | Loans issued as of March 31, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans $ 51,923 April, 2022 - March, 2047 11.86 % $ 52,134 KZT Uncollateralized bank customer loans 34,068 April, 2022 - March, 2047 17.56 % — KZT Subordinated loan 5,033 December, 2022-April, 2024 4.89 % — USD Subordinated loan 1,256 December, 2022-April, 2024 7.00 % — UAH Other 123 February, 2022-Febraury, 2027 2.50 % — USD Total loans issued $ 92,403 $ 52,134 As of March 31, 2022, mortgage loans include the state mortgage program "7-20-25" with the principal amount of $21,310. Microfinance organization Freedom Finance Credit (“FFIN Credit”) is a start-up created by Mr.Turlov. It is a non-bank credit institution that issues loans in Kazakhstan under simplified lending procedures. FFIN Credit was created as a pilot project to test and improve the scoring models used for qualifying and issuing loans. The principal operation of FFIN Credit is to provide loans to customers online using biometric identification and its proprietary scoring process. After completion of the pilot launch, it is anticipated ownership of FFIN Credit will be transferred to the Company. During the year ended March 31, 2022 , the Company entered into agreements with FFIN Credit to purchase uncollateralized consumer retail loans. The agreements provide the Company the ability to sell back to FFIN Credit up to $36,010 of the total loans purchased. The Company has determined that it has assumed substantially all of the risks and rewards from the transferor of the loans, with the exception of the amount it has the right to sell back to the transferor, accordingly the Company has received control of the loans and has recognized the loans on its Consolidated Balance Sheets. During the year ended March 31, 2022 , the Company purchased loans in the aggregate amount of $59,839 and sold back loans totaling $12,106 to the FFIN Credit. As of March 31, 2022 , the Company held outstanding loans purchased from the FFIN Credit totaling $35,388, net of an allowance of $1,321. Loans issued as of March 31, 2021, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Subordinated loan $ 5,033 December 2022-April 2024 3.69 % $ — USD Uncollateralized non-bank loan 2,382 January 2022 - February 2022 3.00 % — USD Uncollateralized non-bank loan — — % — Subordinated loan 1,331 September 2029 7.00 % — UAH Bank customer loans 880 March 2024 15.41 % 729 KZT Bank customer loans — — % — Total loans issued $ 9,626 $ 729 |
DEFERRED TAX (LIABILITIES)_AS_2
DEFERRED TAX (LIABILITIES)/ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred tax assets and liabilities | As of March 31, 2022 and 2021, deferred tax assets and liabilities of the Company were comprised of the following: March 31, 2022 March 31, 2021 (recast) (recast) Deferred tax assets: Revaluation on trading securities $ — $ — Tax losses carryforward 679 316 Accrued liabilities 776 109 Depreciation — 16 Stock compensation expenses — — Valuation allowance — (316) Deferred tax assets $ 1,455 $ 125 Deferred tax liabilities: Revaluation on trading securities $ 210 $ 2,041 Fixed and Intangible Assets — 1,568 Subordinated debt — 523 Other liabilities 388 — Deferred tax liabilities $ 598 $ 4,132 Net deferred tax (liabilities)/assets $ 857 $ (4,007) |
Schedule of federal income taxes | The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation of the provision for income taxes at the 21% tax rate compared to the Company's income tax expense as reported is as follows: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (recast) (recast) (recast) Profit before tax at 21% $ 74,359 $ 30,346 $ 6,109 Global intangible low taxed income 31,194 18,451 4,803 Stock based compensation 3,090 348 551 Losses carried forward adjustment — — — Other differences — — 20 Provision for impairment losses (75) 128 (245) Valuation allowance (316) (361) 416 Non-taxable interest income (659) — — Permanent differences (5,165) (2,209) (605) Foreign tax credit (16,200) (10,155) (3,503) Foreign tax rate differential (18,448) (9,418) (2,884) Nontaxable gains (29,251) (3,768) 271 Income tax provision $ 38,529 $ 23,362 $ 4,933 |
Schedule of income tax expenses | As of March 31, 2022 and 2021, income tax expense was comprised of the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (recast) (recast) (recast) Current income tax charge $ 42,525 $ 21,811 $ 4,753 Deferred income tax charge (3,996) 1,551 180 Income tax provision $ 38,529 $ 23,362 $ 4,933 |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | As of March 31, 2022 and 2021, fixed assets, net of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Buildings $ 7,770 $ 8,014 Processing and storage data centers 3,729 2,289 Office equipment 3,368 2,498 Capital expenditures on leasehold improvements 1,239 793 Furniture 2,653 1,079 Vehicles 362 264 Land 1,564 1,533 Other 674 1,205 Less: Accumulated depreciation (3,972) (2,104) Total fixed assets, net $ 17,387 $ 15,571 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | As of March 31, 2022 and 2021, intangible assets, net of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Licenses $ 2,252 $ 1,377 Client base 1,843 2,023 Trading platform 9 — Software 1,389 1,930 Other intangible assets 41 — Less: Accumulated amortization (2,022) (1,428) Total intangible assets, net $ 3,512 $ 3,902 |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Other Assets [Abstract] | |
Schedule of other assets | As of March 31, 2022 and 2021, other assets, net of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Current income tax asset $ 2,261 $ 910 Due from financial institutions 4,764 2,094 Advances paid 4,082 6,196 Prepayments on future acquisitions 4,069 — Taxes other than income taxes 1,686 786 Outstanding settlement operations 43 4,233 Rent guarantee deposit 759 389 Other 830 1,031 Total other assets 18,494 15,639 Allowance for other assets — — Other assets, net $ 18,494 $ 15,639 |
SECURITIES REPURCHASE AGREEME_2
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of Securities under repurchase agreement obligations | As of March 31, 2022 and 2021, trading securities included collateralized securities subject to repurchase agreements as described in the following table: March 31, 2022 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30-90 Over 90 Total Securities sold under repurchase agreements Corporate debt 14.22 % $ 534,546 $ 142 $ — $ 534,688 Non-US sovereign debt 13.47 % 201,666 — — 201,666 US sovereign debt 0.77 % 5,968 — — 5,968 Corporate equity 14.00 % 388 — — 388 Total securities sold under repurchase agreements $ 742,568 $ 142 $ — $ 742,710 March 31, 2021 (recast) Interest rates and remaining contractual maturity of the agreements Average Up to 30 30-90 Over 90 Total Securities sold under repurchase agreements Non-US sovereign debt 9.29 % $ 229,122 $ — $ — $ 229,122 Corporate debt 9.23 % 138,029 — — 138,029 Corporate equity 3.78 % 5,757 — — 5,757 US sovereign debt 0.40 % 1,810 — — 1,810 Total securities sold under repurchase agreements $ 374,718 $ — $ — $ 374,718 |
CUSTOMER LIABILITIES (Tables)
CUSTOMER LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Contract with Customer, Liability [Abstract] | |
Schedule of customer liabilities | The Company recognizes customer liabilities associated with funds held by our brokerage and bank customers. Customer liabilities consist of: March 31, 2022 March 31, 2021 (recast) (recast) Brokerage customers $ 519,516 $ 547,349 Banking customers 247,111 124,476 Total customer liabilities $ 766,627 $ 671,825 |
TRADE PAYABLES (Tables)
TRADE PAYABLES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | As of March 31, 2022 and 2021, trade payables of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Margin lending payable $ 39,250 $ 20,148 Payables to suppliers of goods and services 4,463 1,383 Trade payable for securities purchased 462 264 Guarantee fee received 33 31 Other 874 176 Total trades payables $ 45,082 $ 22,002 |
LOANS RECEIVED (Tables)
LOANS RECEIVED (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of loans received | As of March 31, 2022 and 2021, loans received by the Company included the following: Company Lender March 31, 2022 March 31, 2021 Interest rate Term Maturity dates Freedom Holding Corp. Non-Bank $ 3,538 $ 3,373 5 % 26 months 12/31/22 Total loans received $ 3,538 $ 3,373 |
DEBT SECURITIES ISSUED (Tables)
DEBT SECURITIES ISSUED (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Debt Securities [Abstract] | |
Schedule of outstanding debt securities of company | As of March 31, 2022 and 2021, outstanding debt securities of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Debt securities issued denominated in USD $ 33,700 $ 30,700 Accrued interest 690 649 Total debt securities issued $ 34,390 $ 31,349 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of other liabilities | As of March 31, 2022 and 2021, other liabilities of the Company included the following: March 31, 2022 March 31, 2021 (recast) (recast) Liability arising from continuing involvement $ 6,447 $ — Salaries and other employee benefits 1,902 550 Payable to suppliers 3,162 1,470 Vacation reserve 990 790 Outstanding settlements operations 292 1,128 Taxes payable other than income tax 567 118 Other 1,683 640 Total other liabilities $ 15,043 $ 4,696 |
FEE AND COMMISSION INCOME_(EX_2
FEE AND COMMISSION INCOME/(EXPENSE) (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of fees and commission income/(expense) | As of March 31, 2022 and 2021, fee and commission income/expense of the Company included the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Fee and commission income: Brokerage services $ 319,015 $ 204,057 $ 60,130 Bank services 6,727 699 — Underwriting services 5,963 6,451 1,031 Other commission income 3,739 4,789 31 Total fee and commission income $ 335,444 $ 215,996 $ 61,192 Fee and commission expense: Brokerage services $ 61,941 $ 62,487 $ 18,314 Bank services 7,546 1,653 158 Stock exchange services 1,669 807 466 Central Depository services 329 247 399 Other commission expense 1,758 784 78 Total fee and commission expense $ 73,243 $ 65,978 $ 19,415 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net gain on trading securities | As of March 31, 2022, 2021 and 2020, net gain on trading securities included the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Net gain recognized during the period on trading securities sold during the period $ 206,238 $ 19,478 $ 18,884 Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date (49,893) 6,433 (10,552) Net gain recognized during the period on trading securities $ 156,345 $ 25,911 $ 8,332 |
NET INTEREST INCOME_ (EXPENSE)
NET INTEREST INCOME/ (EXPENSE) (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Interest Income (Expense), Net [Abstract] | |
Schedule of net interest income/(expense) | Net interest income/expense includes: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Interest income: Interest income on financial assets recorded at amortized cost comprises: Interest income on securities repurchased under reverse repurchase agreements and amounts due from banks $ 1,385 $ 900 $ 898 Interest income on margin loans 14,164 3,163 5,195 Interest income on loans to customers 4,612 384 328 Total interest income on financial assets recorded at amortized cost 20,161 4,447 6,421 Interest income on financial assets recorded in consolidated statements of operations and other comprehensive income Interest income on trading securities 69,992 18,368 7,160 Total interest income on financial assets recorded in consolidated statements of operations and other comprehensive income 69,992 18,368 7,160 Total interest income $ 90,153 $ 22,815 $ 13,581 Interest expense: Interest expense on financial liabilities recorded at amortized cost comprises: Interest expense on securities repurchase agreement obligations $ 46,731 $ 10,497 $ 7,074 Interest expense on customer accounts and deposits 16,336 5,591 755 Interest expense on debt securities issued 1,822 2,363 2,016 Interest expense on loans received 539 133 355 Other interest expense 21 22 — Total interest expense on financial liabilities recorded at amortized cost 65,449 18,606 10,200 Total interest expense $ 65,449 $ 18,606 $ 10,200 |
NET GAIN ON FOREIGN EXCHANGE _2
NET GAIN ON FOREIGN EXCHANGE OPERATIONS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Research and Development [Abstract] | |
Schedule of net gain on foreign exchange operations | Net gain on foreign exchange operations includes: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 (restated) (restated) (restated) Sales and purchases of foreign currency, dealing $ 7,856 $ 99 $ 148 Translation difference (5,877) 1,044 140 Total net gain on foreign exchange operations $ 1,979 $ 1,143 $ 288 |
ASSETS AND LIABILITIES HELD F_2
ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of net gain on foreign exchange operations | As of March 31, 2022 and 2021, the major classes of assets and liabilities from discontinued operations included the following: March 31, 2022 March 31, 2021 Cash and cash equivalents 428,480 531,791 Restricted cash 28,406 27,594 Trading securities 122,497 148,642 Brokerage and other receivables, net 210,087 15,575 Loans issued 2,395 2,041 Other assets 33,554 22,405 Total assets held for sale 825,419 748,048 Customer liabilities 701,584 573,181 Debt securities issued 64,637 37,095 Securities repurchase agreement obligations 32,469 51,997 Other liabilities 13,788 14,295 Total liabilities held for sale 812,478 676,568 The results of operations for discontinued operations for the years ended March 31, 2022, 2021 and 2020, consist of the following: Year ended March 31, 2022 Year ended March 31, 2021 Year ended March 31, 2020 Fee and commission income 69,742 52,780 24,390 Net (loss)/gain on trading securities (78,674) 20,275 6,591 Interest income 28,399 11,221 5,639 Net gain/(loss) on foreign exchange operations (39,672) 2,285 2,027 Net gain/(loss) on derivative — 39 (138) Total revenue, net (20,205) 86,600 38,509 Fee and commission expense 7,988 7,122 2,521 Interest expense 10,450 8,760 2,199 Operating expense 73,029 41,981 34,312 Provision for impairment losses 779 45 90 Other (income)/expense, net 4,748 174 345 Total expense 96,994 58,082 39,467 (Loss)/Income before income tax (117,199) 28,518 (958) The net cash flows from/(used in) operating and investing activities from discontinued operations for years ended March 31, 2022, 2021 and 2020, consist of the following: For The Years Ended March 31, 2022 March 31, 2021 March 31, 2020 Cash Flows (Used In)/From Operating Activities Net (loss)/income from discontinued operations $ (104,195) $ 21,783 $ (2,028) Adjustments to reconcile net income from operating activities: Depreciation and amortization 2,035 1,745 1,553 Noncash lease expense 4,932 3,826 3,570 Impairment of Freedom Bank RU goodwill 723 — — Impairment of Zerich goodwill 810 — — Loss on sale of fixed assets — — 201 Client base write-off 3,125 — — Change in deferred taxes (12,634) 1,170 371 Stock compensation expense 7,887 1,033 2,202 Unrealized (gain)/loss on trading securities 51,652 (425) (2,705) Net change in accrued interest 354 (1,921) 396 Allowances/(recovery) for receivables 771 41 96 Changes in operating assets and liabilities: Trading securities (39,354) (100,133) (2,159) Brokerage and other receivables (218,852) 28,845 (30,967) Other assets (3,684) (1,292) (442) Securities sold, not yet purchased – at fair value 239 23 — Brokerage customer liabilities 198,608 392,855 70,146 Current income tax liability (637) 658 — Trade payables (370) 230 (2,311) Lease liabilities (5,166) (3,854) (3,768) Other liabilities 1,256 2,433 (10) Net cash flows (used in)/from operating activities from discontinued operations (112,500) 347,017 34,145 Cash Flows (Used In)/From Investing Activities Purchase of fixed assets (2,881) (2,137) (2,766) Proceeds from sale of fixed assets — 76 284 Purchase of intangible assets (557) — — Net change in loans issued to customers (945) (171) (977) Net cash flows (used in)/from investing activities from discontinued operations (4,383) (2,232) (3,459) |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of fair value of such stock options using the Black-Scholes option valuation | The Company has determined the fair value of restricted shares awarded during the twelve months ended March 31, 2022, using the Monte Carlo valuation model based on the following key assumptions: Term (years) 5 Volatility 41.5 % Risk-free rate 0.06 % |
Schedule of restricted stock activity | The table below summarizes the activity for the Company's restricted stock outstanding during the year ended March 31, 2022: Shares Weighted Outstanding, March 31, 2021 15,000 $ 775 Granted 1,039,000 39,760 Vested (4,500) (233) Forfeited/cancelled/expired — — Outstanding, at March 31, 2022 1,049,500 $ 40,303 |
Schedule of the activity of the company's restricted stock outstanding | The Company has determined the fair value of such stock options using the Black-Scholes option valuation model based on the following key assumptions: Term (years) 3 Volatility 165.33 % Risk-free rate 1.66 % |
Schedule of stock options roll forward | The following is a summary of stock option activity for year ended March 31, 2022: Shares Weighted Average Weighted Aggregate Outstanding, March 31, 2021 60,000 $ 1.98 6.52 $ 3,083,000 Granted — — — — Exercised (60,000) 1.98 6.52 3,742,000 Forfeited/cancelled/expired — — — — Outstanding, at March 31, 2022 — $ — — $ — Exercisable, at March 31, 2022 — $ — — $ — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of operating lease right of use assets, and liabilities | The table below presents the lease related assets and liabilities recorded on the Company's consolidated balance sheets as of March 31, 2022: Classification on Balance Sheet March 31, 2022 Assets Operating lease assets Right-of-use assets $ 6,747 Total lease assets $ 6,747 Liabilities Operating lease liability Operating lease obligations $ 6,785 Total lease liability $ 6,785 |
Disclosure of lease operations | Lease obligations at March 31, 2022, consisted of the following: Twelve months ending March 31, 2023 $ 3,725 2024 1,683 2025 1,271 2026 1,064 2027 244 Thereafter Total payments 7,987 Less: amounts representing interest (1,202) Lease liability, net $ 6,785 Weighted average remaining lease term (in months) 23 Weighted average discount rate 12 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of bank guarantees | Total lending related commitments outstanding at March 31, 2022, were as follows: As of March 31, 2022 As of March 31, 2021 Bank guarantees $ 6,384 $ 6,594 Unfunded commitments under lines of credit 11,292 182 $ 17,676 $ 6,776 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following tables summarize the Company's Statement of operation by its geographic segments. Intercompany balances were eliminated for separate disclosure: Year ended March 31, 2022 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe US Middle East/Caucasus Total Fee and commission income $ 24,374 $ 306,525 $ 4,545 — $ 335,444 Net gain/(loss) on trading securities 11,604 142,195 2,546 — 156,345 Interest income 75,130 14,540 483 — 90,153 Net gain/(loss) on foreign exchange operations 6,012 (5,598) 1,565 — 1,979 Net gain/(loss) on derivative 946 — — — 946 TOTAL REVENUE, NET 118,066 457,662 9,139 — 584,867 Interest expense $ 54,894 $ 8,747 $ 1,808 — $ 65,449 Fee and commission expense 7,945 64,518 780 — 73,243 Operating expense 42,076 27,069 19,136 283 88,564 Provision for impairment losses/(recoveries) 2,149 57 — — 2,206 Other expense/(income), net 489 7 819 (3) 1,312 TOTAL EXPENSE 107,553 100,398 22,543 280 230,774 NET INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 10,513 $ 357,264 $ (13,404) (280) $ 354,093 Income tax (expense)/benefit 1,237 (26,786) (12,989) 9 (38,529) NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS $ 11,750 $ 330,478 $ (26,393) (271) $ 315,564 Year ended March 31, 2021 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe US Middle East Caucasus Total Fee and commission income $ 17,055 $ 197,844 $ 1,097 — $ 215,996 Net gain on financial instruments through profit and loss 18,414 8 7,489 — 25,911 Interest income 18,498 3,635 682 — 22,815 Net gain/(loss) on foreign exchange operations 1,658 (300) (215) — 1,143 Net gain on derivative 86 — — — 86 TOTAL REVENUE, NET $ 55,711 $ 201,187 $ 9,053 — $ 265,951 Interest expense $ 12,770 $ 3,663 $ 2,173 — $ 18,606 Fee and commission expense 1,211 64,521 246 — 65,978 Operating expense 19,674 10,921 4,843 15 35,453 Provision for impairment losses 1,014 108 395 — 1,517 Other (expense)/income, net (88) (3) (15) — (106) TOTAL EXPENSE $ 34,581 $ 79,210 $ 7,642 15 $ 121,448 NET INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 21,130 $ 121,977 $ 1,411 (15) $ 144,503 Income tax (expense)/benefit 210 (14,013) (9,559) — (23,362) NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS $ 21,340 $ 107,964 $ (8,148) (15) $ 121,141 Year ended March 31, 2020 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe US Middle East Caucasus Total Fee and commission income $ 2,810 $ 58,382 $ — — $ 61,192 Net gain/(loss) on financial instruments through profit and loss 8,121 257 (46) — 8,332 Interest income 7,932 5,451 198 — 13,581 Net gain/(loss) on foreign exchange operations 517 (313) 84 — 288 Net gain/(loss) on derivative — — — — — TOTAL REVENUE, NET $ 19,380 $ 63,777 $ 236 — $ 83,393 Interest expense $ 9,533 $ 343 $ 324 — $ 10,200 Fee and commission expense 629 18,600 186 — 19,415 Operating expense 18,262 3,500 3,916 — 25,678 Provision for impairment losses (1,254) — — — (1,254) Other (expense)/income, net 282 (11) (8) — 263 TOTAL EXPENSE $ 27,452 $ 22,432 $ 4,418 — $ 54,302 NET INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ (8,072) $ 41,345 $ (4,182) — $ 29,091 Income tax (expense)/benefit (16) (4,467) (450) — (4,933) NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS $ (8,088) $ 36,878 $ (4,632) — $ 24,158 |
Long-lived Assets by Geographic Areas | The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure: March 31, 2022 (recast) Central Asia Europe US Middle East Caucasus Held for Sale Total Total assets $ 1,207,149 $ 765,699 $ 172,661 $ 355 $ 825,419 $ 2,971,283 Total liabilities $ 985,938 $ 489,899 $ 175,121 $ 172 $ 812,478 $ 2,463,608 Net assets $ 221,211 $ 275,800 $ (2,460) $ 183 12,941 $ 507,675 March 31, 2021 (recast) Central Asia Europe US Middle East Caucasus Held for Sale Total Total assets 714,380 591,072 46,682 140 748,048 2,100,322 Total liabilities 557,747 530,227 60,106 3 676,568 1,824,651 Net assets 156,633 60,845 (13,424) 137 71,480 275,671 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | Mar. 31, 2022 | Jul. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Related Party Transaction [Line Items] | ||||
Ownership interest sold during the period | 23.88% | |||
LLC Freedom Finance Ukraine | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage, non-controlling interest (in percent) | 9% | 9% | 32.90% | |
Ownership percentage, controlling interest (in percent) | 91% | |||
Ownership interest sold during the period | 23.90% | |||
Subsidiaries Listed On The Ukrainian Exchange | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage, non-controlling interest (in percent) | 24.30% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 USD ($) region | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Impairment of intangible assets | $ 0 | ||
Accumulated goodwill impairment | 5,388 | $ 7,137 | |
Subsidiaries goodwill impairment | $ 832 | 0 | $ 0 |
Number of operating regions | region | 5 | ||
Advertising expense | $ 10,059 | $ 5,027 | $ 3,444 |
Other Expense | |||
Property, Plant and Equipment [Line Items] | |||
Subsidiaries goodwill impairment | $ 2,300 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of assets | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives of assets | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of changes in the carrying amount of goodwill (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning | $ 7,137 |
Foreign currency translation | 551 |
Goodwill, ending | 5,388 |
Impairment of goodwill of Zerich, Freedom Bank RU and Freedom UA | |
Goodwill [Roll Forward] | |
Acquisition costs | $ (2,300) |
RECAST - BALANCE SHEETS (Detail
RECAST - BALANCE SHEETS (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 224,663 | $ 168,017 | $ 11,242 | |
Restricted cash | 547,950 | 490,691 | ||
Trading securities | 1,080,982 | 587,546 | ||
Available-for-sale securities, at fair value | 1 | 1 | ||
Brokerage and other receivables, net | 147,480 | 49,518 | ||
Loans issued | 92,403 | 9,626 | ||
Deferred tax assets | 857 | 0 | ||
Fixed assets, net | 17,387 | 15,571 | ||
Intangible assets, net | 3,512 | 3,902 | ||
Goodwill | 5,388 | 7,137 | ||
Right-of-use asset | 6,747 | 4,626 | ||
Other assets, net | 18,494 | 15,639 | ||
Total assets held for sale | 825,419 | 748,048 | ||
Total assets | 2,971,283 | 2,100,322 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Securities repurchase agreement obligations | 742,710 | 374,718 | ||
Customer liabilities | 766,627 | 671,825 | ||
Trade payables | 45,082 | 22,002 | ||
Current income tax liability | 14,556 | 14,199 | ||
Securities sold, not yet purchased - at fair value | 13,865 | 8,569 | ||
Loans received | 3,538 | 3,373 | ||
Debt securities issued | 34,390 | 31,349 | ||
Lease liability | 6,785 | 4,811 | ||
Deferred income tax liabilities | 0 | 4,007 | ||
Deferred distribution payments | 8,534 | 8,534 | ||
Other liabilities | 15,043 | 4,696 | ||
Total liabilities held for sale | 812,478 | 676,568 | ||
TOTAL LIABILITIES | 2,463,608 | 1,824,651 | ||
Commitments and Contingent Liabilities (Note 30) | 0 | 0 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | $ 0 | $ 0 | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | ||
Preferred stock, issued (in shares) | 0 | 0 | ||
Preferred stock, outstanding (in shares) | 0 | 0 | ||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively | $ 59 | $ 58 | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | ||
Additional paid in capital | $ 141,340 | $ 104,672 | ||
Retained earnings | 426,563 | 208,628 | ||
Accumulated other comprehensive loss | (53,291) | (36,046) | ||
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY | 514,671 | 277,312 | ||
Non-controlling interest | (6,996) | (1,641) | ||
TOTAL SHAREHOLDERS' EQUITY | 507,675 | 275,671 | $ 129,037 | $ 117,597 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,971,283 | 2,100,322 | ||
As previously reported | ||||
ASSETS | ||||
Cash and cash equivalents | 625,547 | 698,828 | ||
Restricted cash | 553,680 | 437,958 | ||
Trading securities | 1,203,479 | 736,188 | ||
Available-for-sale securities, at fair value | 1 | 1 | ||
Brokerage and other receivables, net | 357,567 | 64,801 | ||
Loans issued | 94,797 | 11,667 | ||
Deferred tax assets | 12,018 | |||
Fixed assets, net | 21,365 | 18,385 | ||
Intangible assets, net | 5,791 | 9,785 | ||
Goodwill | 5,388 | 7,868 | ||
Right-of-use asset | 15,669 | 13,262 | ||
Other assets, net | 25,707 | 19,902 | ||
Total assets held for sale | 0 | 0 | ||
Total assets | 2,921,009 | 2,018,645 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Securities repurchase agreement obligations | 775,178 | 426,715 | ||
Customer liabilities | 1,417,937 | 1,163,697 | ||
Trade payables | 45,229 | 22,304 | ||
Current income tax liability | 14,556 | 14,843 | ||
Securities sold, not yet purchased - at fair value | 14,103 | 8,592 | ||
Loans received | 3,538 | 3,373 | ||
Debt securities issued | 99,027 | 68,443 | ||
Lease liability | 15,315 | 13,249 | ||
Deferred income tax liabilities | 0 | 4,385 | ||
Deferred distribution payments | 8,534 | 8,534 | ||
Other liabilities | 19,917 | 8,839 | ||
Total liabilities held for sale | 0 | 0 | ||
TOTAL LIABILITIES | 2,413,334 | 1,742,974 | ||
Commitments and Contingent Liabilities (Note 30) | 0 | 0 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 | ||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively | 59 | 58 | ||
Additional paid in capital | 141,340 | 104,672 | ||
Retained earnings | 426,563 | 208,628 | ||
Accumulated other comprehensive loss | (53,291) | (36,046) | ||
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY | 514,671 | 277,312 | ||
Non-controlling interest | (6,996) | (1,641) | ||
TOTAL SHAREHOLDERS' EQUITY | 507,675 | 275,671 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,921,009 | 2,018,645 | ||
Recast discontinued operations | ||||
ASSETS | ||||
Cash and cash equivalents | (400,884) | (530,811) | ||
Restricted cash | (5,730) | 52,733 | ||
Trading securities | (122,497) | (148,642) | ||
Available-for-sale securities, at fair value | 0 | 0 | ||
Brokerage and other receivables, net | (210,087) | (15,283) | ||
Loans issued | (2,394) | (2,041) | ||
Deferred tax assets | (11,161) | |||
Fixed assets, net | (3,978) | (2,814) | ||
Intangible assets, net | (2,279) | (5,883) | ||
Goodwill | 0 | (731) | ||
Right-of-use asset | (8,922) | (8,636) | ||
Other assets, net | (7,213) | (4,263) | ||
Total assets held for sale | 825,419 | 748,048 | ||
Total assets | 50,274 | 81,677 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Securities repurchase agreement obligations | (32,468) | (51,997) | ||
Customer liabilities | (651,310) | (491,872) | ||
Trade payables | (147) | (302) | ||
Current income tax liability | 0 | (644) | ||
Securities sold, not yet purchased - at fair value | (238) | (23) | ||
Loans received | 0 | 0 | ||
Debt securities issued | (64,637) | (37,094) | ||
Lease liability | (8,530) | (8,438) | ||
Deferred income tax liabilities | 0 | (378) | ||
Deferred distribution payments | 0 | 0 | ||
Other liabilities | (4,874) | (4,143) | ||
Total liabilities held for sale | 812,478 | 676,568 | ||
TOTAL LIABILITIES | 50,274 | 81,677 | ||
Commitments and Contingent Liabilities (Note 30) | 0 | 0 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 | ||
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively | 0 | 0 | ||
Additional paid in capital | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY | 0 | 0 | ||
Non-controlling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS' EQUITY | 0 | $ 0 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 50,274 |
RECAST - STATEMENTS OF OPERATIO
RECAST - STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | |||
Fee and commission income | $ 335,444 | $ 215,996 | $ 61,192 |
Net gain on trading securities | 156,345 | 25,911 | 8,332 |
Interest income | 90,153 | 22,815 | 13,581 |
Net (loss)/gain on foreign exchange operations | 1,979 | 1,143 | 288 |
Net gain on derivatives | 946 | 86 | 0 |
TOTAL REVENUE, NET | 584,867 | 265,951 | 83,393 |
Expense: | |||
Fee and commission expense | 73,243 | 65,978 | 19,415 |
Interest expense | 65,449 | 18,606 | 10,200 |
Operating expense | 88,564 | 35,453 | 25,678 |
Provision for impairment losses/(recoveries) | 2,206 | 1,517 | (1,254) |
Other expense/(income), net | 1,312 | (106) | 263 |
TOTAL EXPENSE | 230,774 | 121,448 | 54,302 |
INCOME BEFORE INCOME TAX | 354,093 | 144,503 | 29,091 |
Income tax expense | (38,529) | (23,362) | (4,933) |
INCOME FROM CONTINUING OPERATIONS | 315,564 | 121,141 | 24,158 |
Income/(loss) before income tax (expense)/benefit of discontinued operations | (117,199) | 28,518 | (958) |
Income tax (expense)/benefit of discontinued operations | 13,004 | (6,735) | (1,070) |
Net (loss)/income from discontinued operations | (104,195) | 21,783 | (2,028) |
NET INCOME | 211,369 | 142,924 | 22,130 |
Less: Net (loss)/income attributable to non-controlling interest in subsidiary | (6,566) | 631 | (2,707) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 217,935 | 142,293 | 24,837 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | (71) |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | 71 | 0 |
Translation difference | (17,245) | 1,857 | (14,851) |
OTHER COMPREHENSIVE INCOME | (17,245) | 1,928 | (14,922) |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 194,124 | 144,852 | 7,208 |
Less: Comprehensive (loss)/income attributable to non-controlling interest in subsidiary | (6,566) | 631 | (2,707) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 200,690 | $ 144,221 | $ 9,915 |
Earnings Per Share, Basic (in dollars per share) | $ 3.67 | $ 2.44 | $ 0.43 |
Earnings Per Share, Diluted (in dollars per share) | 3.67 | 2.43 | 0.43 |
Earnings from continuing operations per common share - basic (in dollars per share) | 5.43 | 2.06 | 0.46 |
Earnings from continuing operations per common share - Diluted (in dollars per share) | 5.43 | 2.06 | 0.46 |
(Loss)/earnings from discontinued operations per common share - basic (in dollars per share) | (1.75) | 0.37 | (0.03) |
(Loss)/earnings from discontinued operations per common share - Diluted (in dollars per share) | $ (1.75) | $ 0.37 | $ (0.03) |
As previously reported | |||
Revenue: | |||
Fee and commission income | $ 417,774 | $ 268,776 | $ 87,473 |
Net gain on trading securities | 77,671 | 46,186 | 14,923 |
Interest income | 105,965 | 34,036 | 17,329 |
Net (loss)/gain on foreign exchange operations | (37,693) | 3,428 | 2,315 |
Net gain on derivatives | 946 | 125 | (138) |
TOTAL REVENUE, NET | 564,663 | 352,551 | 121,902 |
Expense: | |||
Fee and commission expense | 81,231 | 73,100 | 21,936 |
Interest expense | 75,899 | 27,366 | 12,399 |
Operating expense | 161,593 | 77,434 | 59,990 |
Provision for impairment losses/(recoveries) | 2,985 | 1,561 | (1,164) |
Other expense/(income), net | 6,061 | 68 | 609 |
TOTAL EXPENSE | 327,769 | 179,529 | 93,770 |
INCOME BEFORE INCOME TAX | 236,894 | 173,022 | 28,132 |
Income tax expense | (25,525) | (30,098) | (6,002) |
INCOME FROM CONTINUING OPERATIONS | 211,369 | 142,924 | 22,130 |
Income/(loss) before income tax (expense)/benefit of discontinued operations | 0 | 0 | 0 |
Income tax (expense)/benefit of discontinued operations | 0 | 0 | 0 |
Net (loss)/income from discontinued operations | 0 | 0 | 0 |
NET INCOME | 211,369 | 142,924 | 22,130 |
Less: Net (loss)/income attributable to non-controlling interest in subsidiary | (6,566) | 631 | (2,707) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 217,935 | 142,293 | 24,837 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | (71) |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | 71 | 0 |
Translation difference | (17,245) | 1,857 | (14,851) |
OTHER COMPREHENSIVE INCOME | (17,245) | 1,928 | (14,922) |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 194,124 | 144,852 | 7,208 |
Less: Comprehensive (loss)/income attributable to non-controlling interest in subsidiary | (6,566) | 631 | (2,707) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 200,690 | $ 144,221 | $ 9,915 |
Earnings Per Share, Basic (in dollars per share) | $ 3.56 | $ 2.45 | $ 0.38 |
Earnings Per Share, Diluted (in dollars per share) | $ 3.56 | $ 2.45 | $ 0.38 |
As recast | |||
Revenue: | |||
Fee and commission income | $ (82,330) | $ (52,780) | $ (26,281) |
Net gain on trading securities | 78,674 | (20,275) | (6,591) |
Interest income | (15,812) | (11,221) | (3,748) |
Net (loss)/gain on foreign exchange operations | 39,672 | (2,285) | (2,027) |
Net gain on derivatives | 0 | (39) | 138 |
TOTAL REVENUE, NET | 20,204 | (86,600) | (38,509) |
Expense: | |||
Fee and commission expense | (7,988) | (7,122) | (2,521) |
Interest expense | (10,450) | (8,760) | (2,199) |
Operating expense | (73,029) | (41,981) | (34,312) |
Provision for impairment losses/(recoveries) | (779) | (44) | (90) |
Other expense/(income), net | (4,749) | (174) | (346) |
TOTAL EXPENSE | (96,995) | (58,081) | (39,468) |
INCOME BEFORE INCOME TAX | 117,199 | (28,519) | 959 |
Income tax expense | (13,004) | 6,736 | 1,069 |
INCOME FROM CONTINUING OPERATIONS | 104,195 | (21,783) | 2,028 |
Income/(loss) before income tax (expense)/benefit of discontinued operations | (117,199) | 28,518 | (958) |
Income tax (expense)/benefit of discontinued operations | 13,004 | (6,735) | (1,070) |
Net (loss)/income from discontinued operations | (104,195) | 21,783 | (2,028) |
NET INCOME | 0 | 0 | 0 |
Less: Net (loss)/income attributable to non-controlling interest in subsidiary | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 | 0 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | 0 |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | 0 |
Translation difference | 0 | 0 | 0 |
OTHER COMPREHENSIVE INCOME | 0 | 0 | 0 |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 0 | 0 | 0 |
Less: Comprehensive (loss)/income attributable to non-controlling interest in subsidiary | 0 | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 0 | $ 0 | $ 0 |
RESTATEMENT - STATEMENT OF CASH
RESTATEMENT - STATEMENT OF CASHFLOWS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows used in operating activities | $ (443,007,000) | $ 534,437,000 | $ 82,622,000 |
Net cash flows used in investing activities | (98,855,000) | 95,821,000 | (19,763,000) |
Net cash flows from financing activities | 607,820,000 | 404,423,000 | 58,075,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | (54,552,000) | (3,769,000) | (25,141,000) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 11,406,000 | 1,030,912,000 | 95,793,000 |
As previously reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows used in operating activities | (347,988,000) | 565,299,000 | 44,271,000 |
Net cash flows used in investing activities | (8,703,000) | 97,040,000 | (10,854,000) |
Net cash flows from financing activities | 453,684,000 | 348,411,000 | 33,109,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | (54,552,000) | (3,769,000) | (25,141,000) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 42,441,000 | 1,006,981,000 | 41,385,000 |
Adjustments for discontinued operations | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows used in operating activities | (30,183,000) | 24,753,000 | 59,422,000 |
Net cash flows used in investing activities | 146,000 | 0 | (131,000) |
Net cash flows from financing activities | (998,000) | (822,000) | (4,883,000) |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | 0 | 0 | 0 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (31,035,000) | 23,931,000 | 54,408,000 |
As recast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows used in operating activities | (378,171,000) | 590,052,000 | 103,693,000 |
Net cash flows used in investing activities | (8,557,000) | 97,040,000 | (10,985,000) |
Net cash flows from financing activities | 452,686,000 | 347,589,000 | 28,226,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | (54,552,000) | (3,769,000) | (25,141,000) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 11,406,000 | 1,030,912,000 | 95,793,000 |
Correction of errors related to classification of loans and bank customer accounts | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows used in operating activities | (57,960,000) | (55,615,000) | (21,071,000) |
Net cash flows used in investing activities | (90,298,000) | (1,219,000) | (8,778,000) |
Net cash flows from financing activities | 148,258,000 | 56,834,000 | 29,849,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | 0 | 0 | 0 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | $ 0 | $ 0 |
Correction of errors related to classification of funds received for financing mortgage loans | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash flows used in operating activities | (6,876,000) | ||
Net cash flows used in investing activities | 0 | ||
Net cash flows from financing activities | 6,876,000 | ||
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | 0 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ 0 |
RESTATEMENT - STATEMENT OF OPER
RESTATEMENT - STATEMENT OF OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Fee and commission income | $ 335,444 | $ 215,996 | $ 61,192 |
Net gain on trading securities | 156,345 | 25,911 | 8,332 |
Interest income | 90,153 | 22,815 | 13,581 |
Net (loss)/gain on foreign exchange operations | 1,979 | 1,143 | 288 |
Net gain on derivatives | 946 | 86 | 0 |
TOTAL REVENUE, NET | 584,867 | 265,951 | 83,393 |
As previously reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Fee and commission income | 431,938 | 271,939 | 92,668 |
Net gain on trading securities | 77,671 | 46,186 | 14,923 |
Interest income | 91,801 | 30,873 | 12,134 |
Net (loss)/gain on foreign exchange operations | (37,693) | 3,428 | 2,315 |
Net gain on derivatives | 946 | 125 | (138) |
TOTAL REVENUE, NET | 564,663 | 352,551 | 121,902 |
Recast discontinued operations | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Fee and commission income | (82,330) | (52,780) | (26,281) |
Net gain on trading securities | 78,674 | (20,275) | (6,591) |
Interest income | (15,812) | (11,221) | (3,748) |
Net (loss)/gain on foreign exchange operations | 39,672 | (2,285) | (2,027) |
Net gain on derivatives | 0 | (39) | 138 |
TOTAL REVENUE, NET | 20,204 | (86,600) | (38,509) |
As recast | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Fee and commission income | 349,608 | 219,159 | 66,387 |
Net gain on trading securities | 156,345 | 25,911 | 8,332 |
Interest income | 75,989 | 19,652 | 8,386 |
Net (loss)/gain on foreign exchange operations | 1,979 | 1,143 | 288 |
Net gain on derivatives | 946 | 86 | 0 |
TOTAL REVENUE, NET | 584,867 | 265,951 | 83,393 |
Correction of errors | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Fee and commission income | (14,164) | (3,163) | (5,195) |
Net gain on trading securities | 0 | 0 | 0 |
Interest income | 14,164 | 3,163 | 5,195 |
Net (loss)/gain on foreign exchange operations | 0 | 0 | 0 |
Net gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | $ 0 | $ 0 | $ 0 |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ (224,663) | $ (168,017) | $ (11,242) |
Securities purchased under reverse repurchase agreements | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | (19,725) | (11,917) | |
Current accounts with commercial banks | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | (69,982) | (61,203) | |
Current accounts with brokers | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | (70,830) | (37,324) | |
Current account with National Bank (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | (42,517) | (36,726) | |
Petty cash in bank vault and on hand | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | (18,467) | (14,916) | |
Accounts with stock exchange | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | (2,828) | (5,873) | |
Current account with Central Depository (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ (314) | $ (58) |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
FDIC insurance | $ 250,000 | $ 250,000 |
Fair value of collateral received by the company under reverse repurchase agreements | $ 19,691 | $ 12,123 |
CASH AND CASH EQUIVALENTS - S_2
CASH AND CASH EQUIVALENTS - Schedule of collateralized securities received under reverse repurchase agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining contractual maturity: up to 30 days | $ 742,568 | $ 374,718 |
Total | 742,710 | 374,718 |
Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining contractual maturity: up to 30 days | 19,725 | 11,917 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total | $ 19,725 | $ 11,917 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 13.47% | 9.29% |
Remaining contractual maturity: up to 30 days | $ 201,666 | $ 229,122 |
Total | $ 201,666 | $ 229,122 |
Non-US sovereign debt | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 16.90% | 0.88% |
Remaining contractual maturity: up to 30 days | $ 152 | $ 1,785 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total | $ 152 | $ 1,785 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 14.22% | 9.23% |
Remaining contractual maturity: up to 30 days | $ 534,546 | $ 138,029 |
Total | $ 534,688 | $ 138,029 |
Corporate debt | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 16.38% | 10.15% |
Remaining contractual maturity: up to 30 days | $ 9,952 | $ 8,460 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total | $ 9,952 | $ 8,460 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 14% | 3.78% |
Remaining contractual maturity: up to 30 days | $ 388 | $ 5,757 |
Total | $ 388 | $ 5,757 |
Corporate equity | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 12.45% | 13.09% |
Remaining contractual maturity: up to 30 days | $ 9,565 | $ 110 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total | $ 9,565 | $ 110 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 0.77% | 0.40% |
Remaining contractual maturity: up to 30 days | $ 5,968 | $ 1,810 |
Total | $ 5,968 | $ 1,810 |
US sovereign debt | Cash and Cash Equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average Interest rate | 11.88% | 0.50% |
Remaining contractual maturity: up to 30 days | $ 56 | $ 1,562 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total | $ 56 | $ 1,562 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 547,950 | $ 490,691 |
Brokerage customers' cash | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 531,032 | 482,136 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 8,534 | 8,534 |
Guaranty deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 5,540 | 21 |
Restricted bank accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 2,844 | $ 0 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 547,950 | $ 490,691 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 8,534 | $ 8,534 |
TRADING AND AVAILABLE-FOR-SAL_3
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 1,080,982 | $ 587,546 |
Fair value of equity securities | 1 | 1 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 662,416 | 301,899 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 342,786 | 239,630 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 64,023 | 39,279 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 10,306 | 4,661 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,451 | 2,077 |
Equity securities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity securities | $ 1 | $ 1 |
TRADING AND AVAILABLE-FOR-SAL_4
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Narrative (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 USD ($) issuer | Mar. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of issuers | issuer | 2 | |
Ministry of Finance of the Republic of Kazakhstan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities (in percent) | 10% | 10% |
Debt securities | $ 328,951 | $ 232,958 |
Kazakhstan Sustainability Fund JSC | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities (in percent) | 10% | 10% |
Debt securities | $ 396,680 | $ 232,601 |
TRADING AND AVAILABLE-FOR-SAL_5
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of present securities assets at fair value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 1,080,982 | $ 587,546 |
Fair value of equity securities | 1 | 1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,071,565 | 568,513 |
Fair value of equity securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 275 | 0 |
Fair value of equity securities | 0 | 0 |
Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 9,142 | 19,033 |
Fair value of equity securities | $ 1 | $ 1 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 9.61% | 9.22% |
Trading securities | $ 662,416 | $ 301,899 |
Corporate debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 661,821 | 301,539 |
Corporate debt | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Corporate debt | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 595 | $ 360 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 13.11% | 8.06% |
Trading securities | $ 342,786 | $ 239,630 |
Non-US sovereign debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 334,491 | 239,630 |
Non-US sovereign debt | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Non-US sovereign debt | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 8,296 | $ 0 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 0% | 0% |
Trading securities | $ 64,023 | $ 39,279 |
Corporate equity | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 63,496 | 20,606 |
Corporate equity | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 275 | 0 |
Corporate equity | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 251 | $ 18,673 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 2.36% | 1.68% |
Trading securities | $ 10,306 | $ 4,661 |
US sovereign debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 10,306 | 4,661 |
US sovereign debt | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
US sovereign debt | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 0 | $ 0 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average interest rate (in percent) | 0% | 0% |
Trading securities | $ 1,451 | $ 2,077 |
Exchange traded notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,451 | 2,077 |
Exchange traded notes | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Exchange traded notes | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 0 | $ 0 |
Equity securities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total available-for-sale securities, Weighted average interest rate (in percent) | 0% | 0% |
Fair value of equity securities | $ 1 | $ 1 |
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity securities | 0 | 0 |
Equity securities | Significant Other Observable Inputs (Level 2) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity securities | 0 | 0 |
Equity securities | Significant unobservable units (Level 3) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of equity securities | $ 1 | $ 1 |
TRADING AND AVAILABLE-FOR-SAL_6
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of valuation techniques and significant level 3 inputs used in the valuation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 9,142 | $ 19,033 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 0 | 18,370 |
Fair value input (in percent) | 10.60% | |
Estimated number of years | 9 years | |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 251 | 303 |
Fair value input (in percent) | 20% | |
Estimated number of years | 9 years | |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 595 | 360 |
Fair value input (in percent) | 45% | |
Estimated number of years | 3 months | |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 7,524 | 0 |
Fair value input (in percent) | 69% | |
Estimated number of years | 11 years | |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 772 | $ 0 |
Fair value input (in percent) | 13.90% | |
Estimated number of years | 1 year |
TRADING AND AVAILABLE-FOR-SAL_7
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of reconciliation of the beginning and ending balance for investments that use Level 3 inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Available-for-sale securities, beginning balance | $ 1 | |
Available-for-sale securities, ending balance | 1 | $ 1 |
Available-for-sale securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Available-for-sale securities, beginning balance | 1 | 1 |
Sale of investments that use Level 3 inputs | 0 | |
Reclassification to level 3 | 0 | |
Reclassification to level 1 | ||
Purchase of investments that use Level 3 inputs | 0 | 0 |
Revaluation of investments that use Level 3 inputs | 0 | 0 |
Foreign currency translation | 0 | 0 |
Available-for-sale securities, ending balance | 1 | 1 |
Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Investments beginning | 19,033 | 11,259 |
Sale of investments that use Level 3 inputs | (2) | |
Reclassification to level 3 | (682) | |
Reclassification to level 1 | 18,371 | |
Purchase of investments that use Level 3 inputs | 10,812 | 736 |
Revaluation of investments that use Level 3 inputs | (3,014) | 7,040 |
Foreign currency translation | 0 | 0 |
Investments ending | $ 9,142 | $ 19,033 |
TRADING AND AVAILABLE-FOR-SAL_8
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE - Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | $ 1 | $ 1 |
Unrealized loss accumulated in other comprehensive income | 0 | 0 |
Assets measured at fair value | 1 | 1 |
Equity securities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 1 | 1 |
Unrealized loss accumulated in other comprehensive income | 0 | 0 |
Assets measured at fair value | $ 1 | $ 1 |
BROKERAGE AND OTHER RECEIVABL_3
BROKERAGE AND OTHER RECEIVABLES, NET - Schedule of brokerage and other receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | $ 147,480 | $ 49,518 |
Margin lending receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 138,983 | 43,138 |
Receivables from brokerage clients | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 4,439 | 3,896 |
Long-term installments receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 1,367 | 1,280 |
Receivable from sale of securities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 884 | 484 |
Bank commissions receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 598 | 697 |
Receivable for underwriting and market-making services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 296 | 564 |
Dividends accrued | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 45 | 1,392 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | 2,975 | 48 |
Allowance for receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Brokerage and other receivables, net | $ 2,107 | $ 1,981 |
BROKERAGE AND OTHER RECEIVABL_4
BROKERAGE AND OTHER RECEIVABLES, NET - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amounts due from single related party customer | $ 102,669 | $ 8,948 |
Due from related party customer (in percent) | 70% | 14% |
Other Receivables | $ (147,480) | $ (49,518) |
Allowance for receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other Receivables | $ (2,107) | $ (1,981) |
LOANS ISSUED (Details)
LOANS ISSUED (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 92,403 | $ 9,626 |
Fair Value of Collateral | 52,134 | 729 |
Option to sell back loan, limit | 36,010 | |
Outstanding loans purchased from the microfinance organization | 35,388 | |
Outstanding loans purchased from the microfinance organization, allowance | 1,321 | |
FFIN Credit | ||
Financing Receivable, Past Due [Line Items] | ||
Payments to Acquire Loans and Leases Held-for-investment | 59,839 | |
Proceeds from Sale of Loans Held-for-sale | 12,106 | |
Subordinated loan | UAH | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 51,923 | |
Average Interest Rate (in percent) | 11.86% | |
Fair Value of Collateral | $ 52,134 | |
Uncollateralized bank customer loans | UAH | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 34,068 | |
Average Interest Rate (in percent) | 17.56% | |
Fair Value of Collateral | $ 0 | |
Uncollateralized bank customer loans | USD | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 0 | |
Average Interest Rate (in percent) | 0% | |
Fair Value of Collateral | $ 0 | |
Uncollateralized bank customer loans | USD | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 2,382 | |
Average Interest Rate (in percent) | 3% | |
Fair Value of Collateral | $ 0 | |
Mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Debt instrument face amount | 21,310 | |
Mortgage loans | KZT | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 1,256 | $ 1,331 |
Average Interest Rate (in percent) | 7% | 7% |
Fair Value of Collateral | $ 0 | $ 0 |
Mortgage loans | USD | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 5,033 | $ 5,033 |
Average Interest Rate (in percent) | 4.89% | 3.69% |
Fair Value of Collateral | $ 0 | $ 0 |
Subordinated loan | UAH | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 880 | |
Average Interest Rate (in percent) | 15.41% | |
Fair Value of Collateral | $ 729 | |
Subordinated loan | USD | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 0 | |
Average Interest Rate (in percent) | 0% | |
Fair Value of Collateral | $ 0 | |
Other | USD | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 123 | |
Average Interest Rate (in percent) | 2.50% | |
Fair Value of Collateral | $ 0 |
DEFERRED TAX (LIABILITIES)_AS_3
DEFERRED TAX (LIABILITIES)/ASSETS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net income before income tax | $ 354,093 | $ 144,503 | |
Effective income tax rate (in percent) | (10.90%) | (16.20%) | 17% |
Tax losses carryforward | $ 679 | $ 316 | |
US | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 21% | 21% | |
RUSSIAN FEDERATION | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 20% | 20% | |
Kazakhstan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 20% | 20% | |
Kyrgyzstan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 10% | 10% | |
Germany | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 31% | 31% | |
Cyprus | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 12.50% | 12.50% | |
Azerbaijan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 20% | 20% | |
UKRAINE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 18% | 18% | |
United Kingdom | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 25% | 25% | |
Armenia | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 18% | 18% | |
Tax losses carryforward | $ 679 | ||
Uzbekistan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Income tax rates used for deferred tax assets and liabilities (in percent) | 15% | 15% |
DEFERRED TAX (LIABILITIES)_AS_4
DEFERRED TAX (LIABILITIES)/ASSETS - Schedule of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Deferred tax assets: | ||
Tax losses carryforward | $ 679 | $ 316 |
Accrued liabilities | 776 | 109 |
Depreciation | 0 | 16 |
Revaluation on trading securities | 0 | 0 |
Stock compensation expenses | 0 | 0 |
Valuation allowance | 0 | (316) |
Deferred tax assets | 1,455 | 125 |
Deferred tax liabilities: | ||
Revaluation on trading securities | 210 | 2,041 |
Fixed and Intangible Assets | 0 | 1,568 |
Subordinated debt | 0 | 523 |
Other liabilities | 388 | 0 |
Deferred tax liabilities | 598 | 4,132 |
Net deferred tax (liabilities)/assets | $ 857 | |
Net deferred tax (liabilities)/assets | $ (4,007) |
DEFERRED TAX (LIABILITIES)_AS_5
DEFERRED TAX (LIABILITIES)/ASSETS - Schedule of federal income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Profit before tax at 21% | $ 74,359 | $ 30,346 | $ 6,109 |
Global intangible low taxed income | 31,194 | 18,451 | 4,803 |
Stock based compensation | 3,090 | 348 | 551 |
Losses carried forward adjustment | 0 | 0 | 0 |
Other differences | 0 | 0 | 20 |
Provision for impairment losses | (75) | 128 | (245) |
Valuation allowance | (316) | (361) | 416 |
Non-taxable interest income | (659) | 0 | 0 |
Permanent differences | (5,165) | (2,209) | (605) |
Foreign tax credit | (16,200) | (10,155) | (3,503) |
Foreign tax rate differential | (18,448) | (9,418) | (2,884) |
Nontaxable gains | (29,251) | (3,768) | 271 |
Income tax provision | $ 38,529 | $ 23,362 | $ 4,933 |
DEFERRED TAX (LIABILITIES)_AS_6
DEFERRED TAX (LIABILITIES)/ASSETS - Schedule of income tax expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current income tax charge | $ 42,525 | $ 21,811 | $ 4,753 |
Deferred income tax charge | (3,996) | 1,551 | 180 |
Income tax provision | $ 38,529 | $ 23,362 | $ 4,933 |
FIXED ASSETS, NET - Schedule of
FIXED ASSETS, NET - Schedule of fixed assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (3,972) | $ (2,104) |
Total fixed assets, net | 17,387 | 15,571 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,770 | 8,014 |
Processing and storage data centers | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,729 | 2,289 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,368 | 2,498 |
Capital expenditures on leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,239 | 793 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,653 | 1,079 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 362 | 264 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,564 | 1,533 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 674 | $ 1,205 |
FIXED ASSETS, NET - Narrative (
FIXED ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,020 | $ 1,634 | $ 746 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Goodwill [Line Items] | ||
Less: Accumulated amortization | $ (2,022) | $ (1,428) |
Intangible assets, net | 3,512 | 3,902 |
Client base | ||
Goodwill [Line Items] | ||
Intangible assets, gross | 1,843 | 2,023 |
Software | ||
Goodwill [Line Items] | ||
Intangible assets, gross | 1,389 | 1,930 |
Trading platform | ||
Goodwill [Line Items] | ||
Intangible assets, gross | 9 | 0 |
Licenses | ||
Goodwill [Line Items] | ||
Intangible assets, gross | 2,252 | 1,377 |
Other Intangible Assets | ||
Goodwill [Line Items] | ||
Intangible assets, gross | $ 41 | $ 0 |
INTANGIBLE ASSETS, NET - Narrat
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 594 | $ 445 | $ 359 |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total other assets | $ 18,494 | $ 15,639 |
Allowance for other assets | 0 | 0 |
Other assets, net | 18,494 | 15,639 |
Current income tax asset | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 2,261 | 910 |
Due from financial institutions | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 4,764 | 2,094 |
Advances paid | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 4,082 | 6,196 |
Prepayments on future acquisitions | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 4,069 | 0 |
Taxes other than income taxes | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 1,686 | 786 |
Outstanding settlement operations | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 43 | 4,233 |
Rent guarantee deposit | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | 759 | 389 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total other assets | $ 830 | $ 1,031 |
SECURITIES REPURCHASE AGREEME_3
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Schedule of trading securities including collateralized securities subject to repurchase agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Remaining contractual maturity: up to 30 days | $ 742,568 | $ 374,718 |
Remaining contractual maturity: 30 - 90 days | 142 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total | $ 742,710 | $ 374,718 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 13.47% | 9.29% |
Remaining contractual maturity: up to 30 days | $ 201,666 | $ 229,122 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total | $ 201,666 | $ 229,122 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 14.22% | 9.23% |
Remaining contractual maturity: up to 30 days | $ 534,546 | $ 138,029 |
Remaining contractual maturity: 30 - 90 days | 142 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total | $ 534,688 | $ 138,029 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 14% | 3.78% |
Remaining contractual maturity: up to 30 days | $ 388 | $ 5,757 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total | $ 388 | $ 5,757 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate (in percent) | 0.77% | 0.40% |
Remaining contractual maturity: up to 30 days | $ 5,968 | $ 1,810 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total | $ 5,968 | $ 1,810 |
SECURITIES REPURCHASE AGREEME_4
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Fair value of collateral pledged under repurchase agreements | $ 737,364 | $ 374,610 |
CUSTOMER LIABILITIES - Schedule
CUSTOMER LIABILITIES - Schedule of customer liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Revenue, Major Customer [Line Items] | ||
Customer liabilities | $ 766,627 | $ 671,825 |
Brokerage customers | ||
Revenue, Major Customer [Line Items] | ||
Customer liabilities | 519,516 | 547,349 |
Banking customers | ||
Revenue, Major Customer [Line Items] | ||
Customer liabilities | $ 247,111 | $ 124,476 |
CUSTOMER LIABILITIES - Narrativ
CUSTOMER LIABILITIES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Contract with Customer, Liability [Abstract] | ||
Banking customer liabilities, current accounts | $ 91,617 | $ 48,058 |
Banking customer liabilities, deposits | $ 155,494 | $ 76,418 |
TRADE PAYABLES - Schedule of Tr
TRADE PAYABLES - Schedule of Trade Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Regulatory Liabilities [Line Items] | ||
Trade payables | $ 45,082 | $ 22,002 |
Margin lending payable | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 39,250 | 20,148 |
Payables to suppliers of goods and services | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 4,463 | 1,383 |
Trade payable for securities purchased | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 462 | 264 |
Guarantee fee received | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 33 | 31 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | $ 874 | $ 176 |
TRADE PAYABLES - Narrative (Det
TRADE PAYABLES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Related Party Transaction [Line Items] | ||
Trade payables | $ 91,617 | $ 48,058 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Trade payables | $ 38,889 | $ 13,810 |
Trade payables due (in percent) | 86% | 62% |
SECURITIES SOLD, NOT YET PURC_2
SECURITIES SOLD, NOT YET PURCHASED AT FAIR VALUE (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities sold, not yet purchased at fair value | $ 13,864 | $ 8,569 |
Proceeds from sale of shares, other | 7,056 | 8,508 |
Loss on the change in the fair value | $ 1,415 | $ 78 |
LOANS RECEIVED - Schedule of lo
LOANS RECEIVED - Schedule of loans received (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Amount outstanding | $ 3,538 | $ 3,373 |
Interest rate (in percent) | 5% | |
Term | 26 months | |
Total amount outstanding | $ 3,538 | $ 3,373 |
LOANS RECEIVED - Narrative (Det
LOANS RECEIVED - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Debt Disclosure [Abstract] | ||
Accrued interest on loans | $ 238 | $ 73 |
DEBT SECURITIES ISSUED - Schedu
DEBT SECURITIES ISSUED - Schedule of outstanding debt securities of company (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt securities issued | $ 34,390 | $ 31,349 |
Debt securities issued denominated in USD | ||
Debt Instrument [Line Items] | ||
Debt securities issued | 33,700 | 30,700 |
Accrued interest | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 690 | $ 649 |
DEBT SECURITIES ISSUED - Narrat
DEBT SECURITIES ISSUED - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Oct. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2019 |
FRHC notes | ||||
Debt Instrument [Line Items] | ||||
Fixed annual coupon rates (in percent) | 7% | |||
Debt instrument face amount | $ 20,500 | |||
SPC Notes | ||||
Debt Instrument [Line Items] | ||||
Fixed annual coupon rates (in percent) | 5.50% | |||
Debt instrument face amount | $ 13,200 | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Fixed annual coupon rates (in percent) | 5.50% | 7% |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
Risks and Uncertainties [Abstract] | ||
Liability arising from continuing involvement | $ 6,447,000 | $ 0 |
Salaries and other employee benefits | 1,902,000 | 550,000 |
Payable to suppliers | 3,162,000 | 1,470,000 |
Vacation reserve | 990,000 | 790,000 |
Outstanding settlements operations | 292,000 | 1,128,000 |
Taxes payable other than income tax | 567,000 | 118,000 |
Other | 1,683,000 | 640,000 |
Other liabilities | $ 15,043,000 | $ 4,696,000 |
FEE AND COMMISSION INCOME_(EX_3
FEE AND COMMISSION INCOME/(EXPENSE) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Fee and commission income: | |||
Brokerage services | $ 319,015 | $ 204,057 | $ 60,130 |
Bank services | 6,727 | 699 | 0 |
Underwriting services | 5,963 | 6,451 | 1,031 |
Other commission income | 3,739 | 4,789 | 31 |
Total fee and commission income | 335,444 | 215,996 | 61,192 |
Fee and commission expense: | |||
Brokerage services | 61,941 | 62,487 | 18,314 |
Bank services | 7,546 | 1,653 | 158 |
Stock exchange services | 1,669 | 807 | 466 |
Central Depository services | 329 | 247 | 399 |
Other commission expense | 1,758 | 784 | 78 |
Total fee and commission expense | $ 73,243 | $ 65,978 | $ 19,415 |
NET GAIN ON TRADING SECURITIE_2
NET GAIN ON TRADING SECURITIES (Details) | 12 Months Ended | ||
Mar. 31, 2022 USD ($) investor shares | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Net gain recognized during the period on trading securities sold during the period | $ 206,238,000 | $ 19,478,000 | $ 18,884,000 |
Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date | (49,893,000) | 6,433,000 | (10,552,000) |
Net gain recognized during the period on trading securities | 156,345,000 | 25,911,000 | $ 8,332,000 |
Equity securities FVNI portfolio shares SPBX | $ 40,441,000 | $ 18,408,000 | |
Number of equity securities exchanged (in shares) | shares | 12,500,000,000 | ||
Number of investors | investor | 15,490,000 | ||
Proceeds from the sale of equity securities FVNI | $ 167,011,000 | ||
Gain on sale of equity securities | 165,693 | ||
Realized gain on sale of equity securities | 215,586 | ||
Equity securities, FV-NI, unrealized loss | 49,893,000 | ||
Exchange Traded | |||
Debt Securities, Available-for-sale [Line Items] | |||
Gain on sale of equity securities | 179,216,000 | ||
Realized gain on sale of equity securities | 177,146,000 | ||
Equity securities, FV-NI, unrealized loss | $ 54,238,000 |
NET INTEREST INCOME_ (EXPENSE_2
NET INTEREST INCOME/ (EXPENSE) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Interest income: | |||
Interest income on securities repurchased under reverse repurchase agreements and amounts due from banks | $ 1,385,000 | $ 900,000 | $ 898,000 |
Interest and Fee Income, Loans and Leases | 14,164,000 | 3,163,000 | 5,195,000 |
Interest income on loans to customers | 4,612,000 | 384,000 | 328,000 |
Total interest income on financial assets recorded at amortized cost | 20,161,000 | 4,447,000 | 6,421,000 |
Interest income on trading securities | 69,992,000 | 18,368,000 | 7,160,000 |
Total interest income on financial assets recorded in consolidated statements of operations and other comprehensive income | 69,992,000 | 18,368,000 | 7,160,000 |
Total interest income | 90,153,000 | 22,815,000 | 13,581,000 |
Interest expense: | |||
Interest expense on securities repurchase agreement obligations | 46,731,000 | 10,497,000 | 7,074,000 |
Interest expense on customer accounts and deposits | 16,336,000 | 5,591,000 | 755,000 |
Interest expense on debt securities issued | 1,822,000 | 2,363,000 | 2,016,000 |
Interest expense on loans received | 539,000 | 133,000 | 355,000 |
Other interest expense | 21,000 | 22,000 | 0 |
Total interest expense on financial liabilities recorded at amortized cost | 65,449,000 | 18,606,000 | 10,200,000 |
Total interest expense | $ 65,449,000 | $ 18,606,000 | $ 10,200,000 |
NET GAIN ON FOREIGN EXCHANGE _3
NET GAIN ON FOREIGN EXCHANGE OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Research and Development [Abstract] | |||
Sales and purchases of foreign currency, dealing | $ 7,856 | $ 99 | $ 148 |
Translation difference | (5,877) | 1,044 | 140 |
Total net gain on foreign exchange operations | $ 1,979 | $ 1,143 | $ 288 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Separate Account Investment [Line Items] | ||||
Commission income | $ 291,163,000 | $ 184,725,000 | $ 56,247,000 | |
Proportion of fee and commission income to related party commission income | 94% | 34% | 86% | |
Commission expenses | $ 16,307,000 | $ 20,291,000 | $ 3,668,000 | |
Proportion of related party commission expense to related party commission expense | 58% | 15% | 80% | |
Interest Income, Related Party | $ 10,191 | $ 2,250,000 | ||
Loans issued to related parties | $ 1,329,000 | $ 0 | ||
Cash and cash equivalents due to wisdompoint capital LTD | 100% | 100% | ||
Bank commission receivables form brokerage client from related parties | $ 244,000 | $ 960,000 | ||
Margin lending receivables | $ 107,649,000 | $ 9,866,000 | ||
Margin lending receivables due from FFIN brokerage | 95% | 83% | ||
Lending payables | $ 38,889,000 | $ 13,810,000 | ||
Margin lending payables due to wisdompoint capital LTD | 100% | 100% | ||
Accounts payable due to a related party | $ 313,000 | $ 299,000 | ||
Customer liabilities on brokerage and bank accounts | $ 325,904,000 | $ 235,460,000 | ||
Customer liabilities related to deposits from FFIN brokerage | 75% | 126% | ||
Restricted customer cash deposits related to customers of FFIN brokerage | 78% | 94% | ||
Payments to acquire loans classified as operating activities | $ (59,839,000) | |||
Proceeds from sale of securities, operating activities | $ 12,107,000 | |||
Ownership interest sold during the period | 23.88% | |||
Proceeds from Issuance or sale of equity | $ 416,000 | |||
FFIN Brokerage Services, Inc. | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Percentage Of Interest Income, Related Party | 100% | 100% | ||
Brokerage accounts | ||||
Fair Value, Separate Account Investment [Line Items] | ||||
Cash and cash equivalents | $ 22,787,000 | $ 12,237,000 | ||
Financial liability due to a related party | 1,637,000 | 1,707,000 | ||
Restricted customer cash | $ 222,651,000 | $ 156,878,000 |
ASSETS AND LIABILITIES HELD F_3
ASSETS AND LIABILITIES HELD FOR SALE - Narrative (Details) - RUSSIAN FEDERATION - Subsequent Event | Oct. 17, 2022 |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Stock, Percentage of Ownership before Transaction | 100% |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sale of Stock, Percentage of Ownership before Transaction | 100% |
ASSETS AND LIABILITIES HELD F_4
ASSETS AND LIABILITIES HELD FOR SALE - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $ 825,419 | $ 748,048 |
Total liabilities held for sale | 812,478 | 676,568 |
As recast | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 428,480 | 531,791 |
Restricted cash | 28,406 | 27,594 |
Trading securities | 122,497 | 148,642 |
Brokerage and other receivables, net | 210,087 | 15,575 |
Loans issued | 2,395 | 2,041 |
Other assets | 33,554 | 22,405 |
Total assets held for sale | 825,419 | 748,048 |
Customer liabilities | 701,584 | 573,181 |
Debt securities issued | 64,637 | 37,095 |
Securities repurchase agreement obligations | 32,469 | 51,997 |
Other liabilities | 13,788 | 14,295 |
Total liabilities held for sale | $ 812,478 | $ 676,568 |
ASSETS AND LIABILITIES HELD F_5
ASSETS AND LIABILITIES HELD FOR SALE - Income Statement (Details) - As recast - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Fee and commission income | $ 69,742 | $ 52,780 | $ 24,390 |
Net (loss)/gain on trading securities | (78,674) | 20,275 | 6,591 |
Interest income | 28,399 | 11,221 | 5,639 |
Net gain/(loss) on foreign exchange operations | (39,672) | 2,285 | 2,027 |
Net gain/(loss) on derivative | 0 | 39 | (138) |
Total revenue, net | (20,205) | 86,600 | 38,509 |
Fee and commission expense | 7,988 | 7,122 | 2,521 |
Interest expense | 10,450 | 8,760 | 2,199 |
Operating expense | 73,029 | 41,981 | 34,312 |
Provision for impairment losses | 779 | 45 | 90 |
Other (income)/expense, net | 4,748 | 174 | 345 |
Total expense | 96,994 | 58,082 | 39,467 |
(Loss)/Income before income tax | $ (117,199) | $ 28,518 | $ (958) |
ASSETS AND LIABILITIES HELD F_6
ASSETS AND LIABILITIES HELD FOR SALE - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net (loss)/income from discontinued operations | $ (104,195) | $ 21,783 | $ (2,028) |
Noncash lease expense | 3,214 | 2,310 | 2,728 |
Change in deferred taxes | (4,820) | 1,569 | 182 |
Stock compensation expense | 7,858 | 114 | 423 |
Unrealized loss/(gain) on trading securities | 49,893 | (6,433) | 10,552 |
Net change in accrued interest | (12,933) | (11,153) | (278) |
Allowance/(recovery) for receivables | 2,206 | 1,516 | (1,254) |
Trading securities | (600,959) | (405,785) | (14,543) |
Brokerage and other receivables | (103,183) | 20,878 | (16,946) |
Other assets | (5,686) | (6,871) | (4,924) |
Securities sold, but not yet purchased - at fair value | 5,296 | 8,508 | 0 |
Brokerage customer liabilities | (23,237) | 431,926 | 69,817 |
Current income tax liability | 357 | 10,653 | 654 |
Trade payables | 26,124 | 16,445 | (21,715) |
Changes in lease liability | (3,351) | (2,134) | (2,711) |
Other liabilities | 9,704 | 2,140 | 176 |
Net cash flows (used in)/from operating activities from discontinued operations | (112,500) | 347,017 | 34,145 |
Purchase of fixed assets | (4,964) | (2,026) | (1,996) |
Proceeds from sale of fixed assets | 116 | 15 | 1 |
Purchase of intangible assets | (271) | 0 | 0 |
Net cash flows (used in)/from investing activities from discontinued operations | (4,383) | (2,232) | (3,459) |
As recast | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net (loss)/income from discontinued operations | (104,195) | 21,783 | (2,028) |
Depreciation and amortization | 2,035 | 1,745 | 1,553 |
Noncash lease expense | 4,932 | 3,826 | 3,570 |
Impairment of Freedom Bank RU goodwill | 723 | 0 | 0 |
Impairment of Zerich goodwill | 810 | 0 | 0 |
Loss on sale of fixed assets | 0 | 0 | 201 |
Client base write-off | 3,125 | 0 | 0 |
Change in deferred taxes | (12,634) | 1,170 | 371 |
Stock compensation expense | 7,887 | 1,033 | 2,202 |
Unrealized loss/(gain) on trading securities | 51,652 | (425) | (2,705) |
Net change in accrued interest | 354 | (1,921) | 396 |
Allowance/(recovery) for receivables | 771 | 41 | 96 |
Trading securities | (39,354) | (100,133) | (2,159) |
Brokerage and other receivables | (218,852) | 28,845 | (30,967) |
Other assets | (3,684) | (1,292) | (442) |
Securities sold, but not yet purchased - at fair value | 239 | 23 | 0 |
Brokerage customer liabilities | 198,608 | 392,855 | 70,146 |
Current income tax liability | (637) | 658 | 0 |
Trade payables | (370) | 230 | (2,311) |
Changes in lease liability | (5,166) | (3,854) | (3,768) |
Other liabilities | 1,256 | 2,433 | (10) |
Net cash flows (used in)/from operating activities from discontinued operations | (112,500) | 347,017 | 34,145 |
Purchase of fixed assets | (2,881) | (2,137) | (2,766) |
Proceeds from sale of fixed assets | 0 | 76 | 284 |
Purchase of intangible assets | (557) | 0 | 0 |
Net change in loans issued to customers | (945) | (171) | (977) |
Net cash flows (used in)/from investing activities from discontinued operations | $ (4,383) | $ (2,232) | $ (3,459) |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Mar. 30, 2022 shares | May 18, 2021 individual shares | Dec. 30, 2020 shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate shares purchase (in shares) | 60,000 | 60,000 | |||
Sale of stock (in dollars per share) | $ / shares | $ 1.98 | $ 1.98 | |||
Proceeds from warrant exercises | $ | $ 119 | $ 118 | |||
Restricted stock grants (in shares) | 7,500,000 | 1,031,500,000 | 15,000 | ||
Stock-based compensation expense | $ | 15,745 | $ 1,147 | |||
Capital contributions | $ | 21,600 | ||||
Additional paid in capital | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Capital contributions | $ | $ 21,600 | ||||
Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of individuals | individual | 2 | ||||
Employees and Awarded | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of individuals | individual | 56 | ||||
Share-based payment arrangement, tranche one | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock grants (in shares) | 3,000,000 | 200,942 | 4,500 | ||
Vesting period (in years) | 1 year | 1 year | |||
Share-based payment arrangement, tranche two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock grants (in shares) | 1,500,000 | 211,658 | 4,500 | ||
Vesting period (in years) | 2 years | 2 years | |||
Share-based payment arrangement, tranche three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock grants (in shares) | 1,500,000 | 206,300 | 6,000 | ||
Vesting period (in years) | 4 years | 3 years | |||
Share-based payment arrangement, tranche three | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Share-based payment arrangement, tranche three | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 5 years | ||||
Share Based Payment Arrangement Tranche Four Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock grants (in shares) | 1,500,000 |
STOCK BASED COMPENSATIONS - Nar
STOCK BASED COMPENSATIONS - Narrative (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||
Restricted stock (in shares) | 1,039,000,000 | |
Restricted stock grants | $ 15,745,000 | $ 1,147,000 |
Unrecognized compensation cost | $ 24,731,000 | |
Weighted average period (in years) | 4 years 25 days | |
Compensation expense | $ 0 | 112,000 |
Shares based compensation for consulting services | $ 0 | $ 517,000 |
STOCK BASED COMPENSATIONS - Sch
STOCK BASED COMPENSATIONS - Schedule of fair value of such stock options using the Monte Carlo and Black-Scholes option valuation (Details) | 12 Months Ended |
Mar. 31, 2022 | |
Monte Carlo valuation model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term (years) | 5 years |
Volatility (in percent) | 41.50% |
Risk-free rate (in percent) | 0.06% |
Black-Scholes option valuation model | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Term (years) | 3 years |
Volatility (in percent) | 165.33% |
Risk-free rate (in percent) | 1.66% |
STOCK BASED COMPENSATIONS - S_2
STOCK BASED COMPENSATIONS - Schedule of the activity of the company's restricted stock outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares | ||
Restricted stock outstanding, beginning balance (in shares) | 15,000,000 | |
Granted (in shares) | 1,039,000,000 | |
Vested (in shares) | (4,500,000) | |
Forfeited/cancelled/expired (in shares) | 0 | |
Restricted stock outstanding, ending balance (in shares) | 1,049,500,000 | |
Weighted Average Fair Value | ||
Weighted average fair value, beginning balance | $ 775 | |
Weighted average exercise price granted | $ 39,760 | |
Weighted average exercise price vested | (233) | |
Weighted average exercise price forfeited/cancelled/expired | 0 | |
Weighted average fair value, ending balance | $ 40,303 |
STOCK BASED COMPENSATIONS - S_3
STOCK BASED COMPENSATIONS - Schedule of stock option activity (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares | ||
Number of options outstanding, beginning (in shares) | 60,000 | |
Number of options granted (in shares) | 0 | |
Number of options exercised (in shares) | (60,000) | |
Number of options forfeited/cancelled/expired (in shares) | 0 | |
Number of options outstanding, ending (in shares) | 0 | |
Number of options exercisable (in shares) | 0 | |
Weighted Average Exercise Price | ||
Weighted average exercise price outstanding, beginning (in dollars per share) | $ 1.98 | |
Weighted average exercise price granted (in dollars per share) | 0 | |
Weighted average exercise price, exercised (in dollars per share) | 1.98 | |
Weighted average exercise price forfeited/cancelled/expired (in dollars per share) | 0 | |
Weighted average exercise price outstanding, ending (in dollars per share) | 0 | |
Weighted average exercise price, exercisable (in dollars per share) | $ 0 | |
Weighted average remaining contractual term, outstanding (in years) | 6 years 6 months 7 days | |
Weighted average remaining contractual term, exercised (in years) | 6 years 6 months 7 days | |
Aggregate intrinsic value outstanding, beginning | $ 3,083,000 | |
Aggregate intrinsic value, granted | 0 | |
Aggregate intrinsic value, exercised | 3,742,000 | |
Aggregate intrinsic value, forfeited/cancelled/expired | 0 | |
Aggregate intrinsic value outstanding, ending | 0 | |
Aggregate intrinsic value exercisable | $ 0 |
LEASES - Schedule of lease rela
LEASES - Schedule of lease related assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Assets | ||
Right-of-use asset | $ 6,747 | $ 4,626 |
Liabilities | ||
Operating lease obligations | $ 6,785 | $ 4,811 |
LEASES - Schedule of lease obli
LEASES - Schedule of lease obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2023 | $ 3,725 | |
2024 | 1,683 | |
2025 | 1,271 | |
2026 | 1,064 | |
2027 | 244 | |
Thereafter | ||
Total payments | 7,987 | |
Less: amounts representing interest | (1,202) | |
Lease liability | $ 6,785 | $ 4,811 |
Weighted average remaining lease term (in months) | 23 months | |
Weighted average discount rate (in percent) | 12% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
Short term operating lease | $ 74 | ||
Rent expense for office space | $ 637 | $ 451 | $ 151 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Bank guarantees | $ 6,384 | $ 6,594 |
Unfunded commitments under lines of credit | 11,292 | 182 |
Total | $ 17,676 | $ 6,776 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 12 Months Ended |
Mar. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 5 |
SEGMENT REPORTING - Income Stat
SEGMENT REPORTING - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Fee and commission income | $ 335,444 | $ 215,996 | $ 61,192 |
Net gain on trading securities | 156,345 | 25,911 | 8,332 |
Interest income | 90,153 | 22,815 | 13,581 |
Net (loss)/gain on foreign exchange operations | 1,979 | 1,143 | 288 |
Net gain on derivatives | 946 | 86 | 0 |
TOTAL REVENUE, NET | 584,867 | 265,951 | 83,393 |
Interest expense | 65,449 | 18,606 | 10,200 |
Fee and commission expense | 73,243 | 65,978 | 19,415 |
Operating expense | 88,564 | 35,453 | 25,678 |
Provision for impairment losses/(recoveries) | 2,206 | 1,517 | (1,254) |
Other expense/(income), net | 1,312 | (106) | 263 |
TOTAL EXPENSE | 230,774 | 121,448 | 54,302 |
INCOME BEFORE INCOME TAX | 354,093 | 144,503 | 29,091 |
Income tax expense | (38,529) | (23,362) | (4,933) |
INCOME FROM CONTINUING OPERATIONS | 315,564 | 121,141 | 24,158 |
Central Asia | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income | 24,374 | 17,055 | 2,810 |
Net gain on trading securities | 11,604 | 18,414 | 8,121 |
Interest income | 75,130 | 18,498 | 7,932 |
Net (loss)/gain on foreign exchange operations | 6,012 | 1,658 | 517 |
Net gain on derivatives | 946 | 86 | 0 |
TOTAL REVENUE, NET | 118,066 | 55,711 | 19,380 |
Interest expense | 54,894 | 12,770 | 9,533 |
Fee and commission expense | 7,945 | 1,211 | 629 |
Operating expense | 42,076 | 19,674 | 18,262 |
Provision for impairment losses/(recoveries) | 2,149 | 1,014 | (1,254) |
Other expense/(income), net | 489 | (88) | 282 |
TOTAL EXPENSE | 107,553 | 34,581 | 27,452 |
INCOME BEFORE INCOME TAX | 10,513 | 21,130 | (8,072) |
Income tax expense | 1,237 | 210 | (16) |
INCOME FROM CONTINUING OPERATIONS | 11,750 | 21,340 | (8,088) |
Europe | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income | 306,525 | 197,844 | 58,382 |
Net gain on trading securities | 142,195 | 8 | 257 |
Interest income | 14,540 | 3,635 | 5,451 |
Net (loss)/gain on foreign exchange operations | (5,598) | (300) | (313) |
Net gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | 457,662 | 201,187 | 63,777 |
Interest expense | 8,747 | 3,663 | 343 |
Fee and commission expense | 64,518 | 64,521 | 18,600 |
Operating expense | 27,069 | 10,921 | 3,500 |
Provision for impairment losses/(recoveries) | 57 | 108 | 0 |
Other expense/(income), net | 7 | (3) | (11) |
TOTAL EXPENSE | 100,398 | 79,210 | 22,432 |
INCOME BEFORE INCOME TAX | 357,264 | 121,977 | 41,345 |
Income tax expense | (26,786) | (14,013) | (4,467) |
INCOME FROM CONTINUING OPERATIONS | 330,478 | 107,964 | 36,878 |
US | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income | 4,545 | 1,097 | 0 |
Net gain on trading securities | 2,546 | 7,489 | (46) |
Interest income | 483 | 682 | 198 |
Net (loss)/gain on foreign exchange operations | 1,565 | (215) | 84 |
Net gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | 9,139 | 9,053 | 236 |
Interest expense | 1,808 | 2,173 | 324 |
Fee and commission expense | 780 | 246 | 186 |
Operating expense | 19,136 | 4,843 | 3,916 |
Provision for impairment losses/(recoveries) | 0 | 395 | 0 |
Other expense/(income), net | 819 | (15) | (8) |
TOTAL EXPENSE | 22,543 | 7,642 | 4,418 |
INCOME BEFORE INCOME TAX | (13,404) | 1,411 | (4,182) |
Income tax expense | (12,989) | (9,559) | (450) |
INCOME FROM CONTINUING OPERATIONS | (26,393) | (8,148) | (4,632) |
Middle East/Caucasus | |||
Segment Reporting Information [Line Items] | |||
Fee and commission income | 0 | 0 | 0 |
Net gain on trading securities | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 |
Net (loss)/gain on foreign exchange operations | 0 | 0 | 0 |
Net gain on derivatives | 0 | 0 | 0 |
TOTAL REVENUE, NET | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Fee and commission expense | 0 | 0 | 0 |
Operating expense | 283 | 15 | 0 |
Provision for impairment losses/(recoveries) | 0 | 0 | 0 |
Other expense/(income), net | (3) | 0 | 0 |
TOTAL EXPENSE | 280 | 15 | 0 |
INCOME BEFORE INCOME TAX | (280) | (15) | 0 |
Income tax expense | 9 | 0 | 0 |
INCOME FROM CONTINUING OPERATIONS | $ (271) | $ (15) | $ 0 |
SEGMENT REPORTING - Balance She
SEGMENT REPORTING - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Mar. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,971,283 | $ 2,100,322 |
Total liabilities | 2,463,608 | 1,824,651 |
Net assets | 507,675 | 275,671 |
Central Asia | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,207,149 | 714,380 |
Total liabilities | 985,938 | 557,747 |
Net assets | 221,211 | 156,633 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 765,699 | 591,072 |
Total liabilities | 489,899 | 530,227 |
Net assets | 275,800 | 60,845 |
US | ||
Segment Reporting Information [Line Items] | ||
Total assets | 172,661 | 46,682 |
Total liabilities | 175,121 | 60,106 |
Net assets | (2,460) | (13,424) |
RUSSIAN FEDERATION | ||
Segment Reporting Information [Line Items] | ||
Total assets | 825,419 | 748,048 |
Total liabilities | 812,478 | 676,568 |
Net assets | 12,941 | 71,480 |
Middle East/Caucasus | ||
Segment Reporting Information [Line Items] | ||
Total assets | 355 | 140 |
Total liabilities | 172 | 3 |
Net assets | $ 183 | $ 137 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Thousands | May 17, 2022 USD ($) issuer |
Subsequent Event [Line Items] | |
Number of companies acquired | issuer | 2 |
Freedom Insurance | |
Subsequent Event [Line Items] | |
Consideration paid for the outstanding common shares | $ 12,440 |
Freedom Life | |
Subsequent Event [Line Items] | |
Consideration paid for the outstanding common shares | $ 12,100 |