Cover
Cover - shares | 6 Months Ended | |
Sep. 30, 2022 | Nov. 13, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q/A | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 | 50040 | |
City Area Code | +7 727 | |
Local Phone Number | 311 10 64 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | FRHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,542,212 | |
Entity Central Index Key | 0000924805 | |
Amendment Flag | true | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Amendment Description | Explanatory NoteThis Amendment No. 1 on Form 10-Q/A (this "Quarterly Report on Form 10-Q/A") amends and restates certain items noted below in the Quarterly Report on Form 10-Q of Freedom Holding Corp. (the “Company”) for the quarterly period ended September 30, 2022, as originally filed with the Securities and Exchange Commission (“SEC”) on November 15, 2022 (the “Original Form 10-Q”). |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | [1] |
ASSETS | |||
Cash and cash equivalents | $ 790,390 | $ 225,464 | |
Restricted cash | 440,030 | 547,950 | |
Trading securities | 1,359,544 | 1,158,377 | |
Available-for-sale securities, at fair value | 168,175 | 161,364 | |
Brokerage and other receivables, net | 408,169 | 147,659 | |
Loans issued | 357,357 | 92,446 | |
Fixed assets, net | 36,857 | 17,823 | |
Intangible assets, net | 7,687 | 5,163 | |
Goodwill | 9,512 | 5,898 | |
Right-of-use asset | 13,602 | 7,431 | |
Deferred income tax assets | 2,673 | 908 | |
Insurance contract assets | 12,712 | 5,712 | |
Other assets | 62,042 | 26,136 | |
Assets held for sale | 1,115,615 | 825,419 | |
TOTAL ASSETS | 4,784,365 | 3,227,750 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Securities repurchase agreement obligations | 981,190 | 840,224 | |
Customer liabilities | 1,567,458 | 765,628 | |
Trade payables | 69,088 | 45,083 | |
Liabilities from insurance activity | 150,077 | 119,490 | |
Current income tax liability | 19,046 | 14,556 | |
Securities sold, not yet purchased – at fair value | 7,376 | 13,865 | |
Loans received | 5,425 | 3,538 | |
Debt securities issued | 51,798 | 34,390 | |
Lease liability | 13,348 | 7,504 | |
Deferred distribution payments | 8,534 | 8,534 | |
Other liabilities | 170,078 | 15,852 | |
Payable for acquisition | 29,736 | 0 | |
Liabilities held for sale | 1,089,880 | 812,478 | |
TOTAL LIABILITIES | 4,163,034 | 2,681,142 | |
Commitments and Contingent Liabilities (Note 26) | 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 shares issued and outstanding as of September 30, 2022, and March 31, 2022, respectively | 59 | 59 | |
Additional paid in capital | 155,635 | 174,745 | |
Retained earnings | 529,251 | 441,924 | |
Accumulated other comprehensive loss | (55,575) | (63,125) | |
TOTAL FRHC SHAREHOLDERS’ EQUITY | 629,370 | 553,603 | |
Non-controlling interest | (8,039) | (6,995) | |
TOTAL SHAREHOLDERS’ EQUITY | 621,331 | 546,608 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 4,784,365 | $ 3,227,750 | |
[1]* Please see Note 3 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) | Sep. 30, 2022 $ / shares shares |
Statement of Financial Position [Abstract] | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Preferred stock, authorized (in shares) | 20,000,000 |
Preferred stock, issued (in shares) | 0 |
Preferred stock, outstanding (in shares) | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 |
Common stock, issued (in shares) | 59,542,212 |
Common stock, outstanding (in shares) | 59,542,212 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Revenue: | ||||||
Fee and commission income | $ 83,157 | $ 93,025 | $ 172,603 | $ 171,140 | ||
Net gain on trading securities | 9,005 | 181,603 | 13,439 | 190,285 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 716 | (622) | 123 | (653) | ||
Investment Income, Interest | 58,999 | 26,619 | 107,562 | 48,857 | ||
Underwriting Income (Loss) | 26,200 | 16,022 | 50,440 | 30,098 | ||
Net gain on foreign exchange operations | 4,555 | 1,508 | 9,148 | 2,716 | ||
Net loss on derivative | (2,320) | (656) | (1,054) | (715) | ||
Total revenue, net | 180,312 | 317,499 | 352,261 | 441,728 | ||
Expense: | ||||||
Fee and commission expense | 18,439 | 22,651 | 41,754 | 43,844 | ||
Interest expense | 40,863 | 16,716 | 80,934 | 30,962 | ||
Insurance claims incurred, net of reinsurance | 17,475 | 13,513 | 34,167 | 24,809 | ||
Operating expense | 37,760 | 21,770 | 75,759 | 41,191 | ||
Provision for impairment losses | 3,726 | 978 | 6,154 | 1,245 | ||
Other expense/(income), net | 192 | 786 | (368) | 795 | ||
TOTAL EXPENSE | 118,455 | 76,414 | 238,400 | 142,846 | ||
INCOME BEFORE INCOME TAX | 61,857 | 241,085 | 113,861 | 298,882 | ||
Income tax expense | (12,619) | (32,094) | (21,498) | (37,220) | ||
INCOME FROM CONTINUING OPERATIONS | 49,238 | 208,991 | 92,363 | [1] | 261,662 | [1] |
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | (18,302) | (2,779) | 800 | 458 | ||
Income tax (expense)/benefit of discontinued operations | (3,724) | 529 | (6,880) | (9) | ||
Income/(loss) from discontinued operations | 22,026 | 2,250 | 6,080 | [1] | (449) | [1] |
NET INCOME | 27,212 | 206,741 | 86,283 | [1] | 262,111 | [1] |
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 950 | (20) | (1,044) | (72) | ||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 26,262 | 206,761 | 87,327 | 262,183 | ||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 1,477 | (1,601) | 2,343 | (726) | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | (716) | 622 | (123) | 653 | ||
Foreign currency translation adjustments, net of tax effect | (16,663) | 1,181 | 5,316 | 4,203 | ||
OTHER COMPREHENSIVE (LOSS)/ INCOME | (15,902) | 202 | 7,536 | 4,130 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 11,310 | 206,943 | 93,819 | 266,241 | ||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 950 | (20) | (1,043) | (72) | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 10,360 | $ 206,963 | $ 94,862 | $ 266,313 | ||
EARNINGS PER COMMON SHARE (In U.S. dollars): | ||||||
Earnings per basic share (in USD per share) | $ 0.82 | $ 3.51 | $ 1.59 | $ 4.42 | ||
Earnings per diluted share (in USD per share) | 0.81 | 3.51 | 1.57 | 4.42 | ||
Loss per share from discontinued operations per basic share (in USD per share) | (0.38) | (0.04) | (0.10) | 0.01 | ||
Loss per share from discontinued operations per diluted share (in USD per share) | (0.37) | (0.04) | (0.10) | 0.01 | ||
Earnings per common share-basic (in USD per share) | 0.45 | 3.47 | 1.49 | 4.43 | ||
Earnings per common share- diluted (in USD per share) | $ 0.44 | $ 3.47 | $ 1.46 | $ 4.43 | ||
Weighted average number of shares, basic (in shares) | 58,665,415,000 | 59,510,976,000 | 58,624,513,000 | 59,220,800,000 | ||
Weighted average number of shares, diluted (in shares) | 59,518,473,000 | 59,510,976,000 | 59,678,513,000 | 59,220,800,000 | ||
[1]* Please see Note 4 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Cash Flows From Operating Activities | |||
Net income | [1] | $ 86,283,000 | $ 262,111,000 |
Net (loss)/income from discontinued operations | [1] | (6,080,000) | 449,000 |
Net income from continued operations | [1] | 92,363,000 | 261,662,000 |
Adjustments to reconcile net income used in operating activities: | |||
Depreciation and amortization | [1] | 1,817,000 | 1,915,000 |
Noncash lease expense | [1] | 2,047,000 | 1,568,000 |
Change in deferred taxes | [1] | (1,763,000) | 2,431,000 |
Stock compensation expense | [1] | 3,581,000 | 3,365,000 |
Unrealized loss/(gain) on trading securities | [1] | 8,232,000 | (41,966,000) |
Net change in accrued interest | [1] | (20,855,000) | (21,137,000) |
Change in insurance reserves | [1] | 30,627,000 | 25,138,000 |
Allowances for receivables | [1] | 6,154,000 | 1,245,000 |
Changes in operating assets and liabilities: | |||
Trading securities | [1] | (223,540,000) | (181,734,000) |
Brokerage and other receivables | [1] | (263,107,000) | (189,970,000) |
Insurance contract assets | [1] | 706,000 | 443,000 |
Other assets | [1] | (33,322,000) | (4,316,000) |
Securities sold, not yet purchased – at fair value | [1] | (6,489,000) | 6,719,000 |
Brokerage customer liabilities | [1] | 329,496,000 | 110,815,000 |
Current income tax liability | [1] | 4,537,000 | 19,684,000 |
Trade payables | [1] | 20,490,000 | 26,575,000 |
Lease liabilities | [1] | (2,453,000) | (1,654,000) |
Liabilities from insurance activity | [1] | (8,032,000) | (5,355,000) |
Other liabilities | [1] | 4,521,000 | (186,000) |
Net cash flows from operating activities from continuing operations | [1] | (54,990,000) | 15,242,000 |
Net cash flows from operating activities from discontinued operations | [1] | 29,583,000 | 5,605,000 |
Net cash flows from operating activities | [1] | (25,407,000) | 20,847,000 |
Cash Flows Used In Investing Activities | |||
Purchase of fixed assets | [1] | (17,295,000) | (2,776,000) |
Proceeds from sale of fixed assets | [1] | 36,000 | 167,000 |
Insurance contract assets | [1] | (74,796,000) | (19,677,000) |
Loans sold to microfinance organization | [1] | 19,545,000 | 2,860,000 |
Net change in loans issued to customers | [1] | (228,570,000) | (5,726,000) |
Purchase of available-for-sale securities, at fair value | [1] | (167,450,000) | (147,479,000) |
Proceeds from sale of available-for-sale securities, at fair value | [1] | 157,420,000 | 106,850,000 |
Consideration paid for acquisition of London Almaty | [1] | (16,343,000) | 0 |
Prepayment on acquisition | [1] | 4,954,000 | 0 |
Cash, cash equivalents and restricted cash received from acquisitions | [1] | 11,385,000 | 0 |
Net cash flows used in investing activities from continuing operations | [1] | (311,114,000) | (65,781,000) |
Net cash flows used in investing activities from discontinued operations | [1] | (12,073,000) | (471,000) |
Net cash flows used from investing activities | [1] | (323,187,000) | (66,252,000) |
Cash Flows From Financing Activities | |||
Proceeds from securities repurchase agreement obligations | [1] | 168,565,000 | 172,234,000 |
Proceeds from issuance of debt securities | [1] | 17,240,000 | 0 |
Repurchase of debt securities | [1] | 0 | (10,134,000) |
Repurchase of mortgage loans under the State Program | [1] | (2,594,000) | 0 |
Funds received under state program for financing of mortgage loans | [1] | 152,184,000 | 0 |
Net change in bank customer deposits | [1] | 513,546,000 | 17,497,000 |
Capital contributions | [1] | 677,000 | 1,966,000 |
Exercise of options | [1] | 0 | 119,000 |
Proceeds from loans received | [1] | 1,863,000 | 69,000 |
Net cash flows from financing activities from continuing operations | [1] | 851,481,000 | 181,751,000 |
Net cash flows from/(used in) financing activities from discontinued operations | [1] | 44,203,000 | (28,884,000) |
Net cash flows from financing activities | [1] | 895,684,000 | 152,867,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from continued operations | [1] | (28,371,000) | 250,000 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | [1] | 212,557,000 | 23,276,000 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | [1] | 731,276,000 | 130,988,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM CONTINUED OPERATIONS | [1] | 773,414,000 | 659,498,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM DISCONTINUED OPERATIONS | [1] | 456,886,000 | 558,890,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | [1] | 1,230,300,000 | 1,218,388,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM CONTINUED OPERATIONS | [1] | 1,230,420,000 | 744,465,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM DISCONTINUED OPERATIONS | [1] | 731,156,000 | 604,911,000 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | [1] | 1,961,576,000 | 1,349,376,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 39,032,000 | 15,275,000 | |
Income tax paid | 18,803,000 | 20,107,000 | |
Supplemental non-cash disclosures: | |||
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | 5,706,000 | 2,424,000 | |
Cash and cash equivalents | 790,390,000 | 184,523,000 | |
Restricted cash | 440,030,000 | 559,942,000 | |
Total cash, cash equivalents and restricted cash shown as in the statement of cash flows | [1] | $ 1,230,420,000 | $ 744,465,000 |
[1]* Please see Note 4 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive (loss)/income | Non- controlling interest | |
Shares issued, beginning of period (in shares) at Mar. 31, 2021 | 58,443,212,000 | ||||||
Equity, beginning of period at Mar. 31, 2021 | $ 307,671 | $ 58 | $ 135,260 | $ 214,427 | $ (40,433) | $ (1,641) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 6,723 | $ 1 | 6,722 | ||||
Stock based compensation (in shares) | 1,031,500,000 | ||||||
Sale of Freedom Finance Ukraine LLC shares | 416 | (796) | 1,212 | ||||
Contribution of shareholder | 1,966 | 1,966 | |||||
Exercise of options (in shares) | 60,000,000 | ||||||
Exercise of options | 119 | 119 | 0 | ||||
Other comprehensive income | (74) | (74) | |||||
Translation difference | 4,203 | 4,203 | |||||
Net income | 262,111 | [1] | 262,183 | (72) | |||
Shares issued, end of period (in shares) at Sep. 30, 2021 | 59,534,712,000 | ||||||
Equity, end of period at Sep. 30, 2021 | 583,135 | $ 59 | 143,271 | 476,610 | (36,304) | (501) | |
Shares issued, beginning of period (in shares) at Jun. 30, 2021 | 59,474,712,000 | ||||||
Equity, beginning of period at Jun. 30, 2021 | 370,395 | $ 58 | 138,687 | 269,849 | (36,506) | (1,693) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 4,562 | $ 1 | 4,561 | ||||
Sale of Freedom Finance Ukraine LLC shares | 416 | (796) | 1,212 | ||||
Contribution of shareholder | 700 | 700 | |||||
Exercise of options (in shares) | 60,000,000 | ||||||
Exercise of options | 119 | 119 | 0 | ||||
Other comprehensive income | (979) | (979) | |||||
Translation difference | 1,181 | 1,181 | |||||
Net income | 206,741 | 206,761 | (20) | ||||
Shares issued, end of period (in shares) at Sep. 30, 2021 | 59,534,712,000 | ||||||
Equity, end of period at Sep. 30, 2021 | 583,135 | $ 59 | 143,271 | 476,610 | (36,304) | (501) | |
Shares issued, beginning of period (in shares) at Mar. 31, 2022 | 59,542,212 | ||||||
Equity, beginning of period at Mar. 31, 2022 | 546,608 | [2] | $ 59 | 174,745 | 441,924 | (63,125) | (6,995) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 6,801 | 6,801 | |||||
Contribution of shareholder | 677 | 677 | |||||
Acquisition of insurance companies | (26,588) | (26,588) | |||||
Other comprehensive income | 2,234 | 2,234 | |||||
Translation difference | 5,316 | 5,316 | |||||
Net income | 86,283 | [1] | 87,327 | (1,044) | |||
Shares issued, end of period (in shares) at Sep. 30, 2022 | 59,542,212 | ||||||
Equity, end of period at Sep. 30, 2022 | 621,331 | $ 59 | 155,635 | 529,251 | (55,575) | (8,039) | |
Shares issued, beginning of period (in shares) at Jun. 30, 2022 | 59,542,212 | ||||||
Equity, beginning of period at Jun. 30, 2022 | 606,918 | $ 59 | 152,532 | 502,989 | (39,673) | (8,989) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 3,103 | 3,103 | |||||
Contribution of shareholder | 0 | ||||||
Other comprehensive income | 761 | 761 | |||||
Translation difference | (16,663) | (16,663) | |||||
Net income | 27,212 | 26,262 | 950 | ||||
Shares issued, end of period (in shares) at Sep. 30, 2022 | 59,542,212 | ||||||
Equity, end of period at Sep. 30, 2022 | $ 621,331 | $ 59 | $ 155,635 | $ 529,251 | $ (55,575) | $ (8,039) | |
[1]* Please see Note 4[2]* Please see Note 3 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) (Parenthetical)) $ in Thousands | 6 Months Ended |
Sep. 30, 2022 USD ($) | |
Income Statement [Abstract] | |
Provision for impairment of discontinued operations | $ (41,464) |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Sep. 30, 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, commercial banking and insurance products. The Company is headquartered in Almaty, Kazakhstan, with supporting administrative office locations in Cyprus, the United States and Russia (with the Russian business classified as discontinued operations pending sale). The Company has retail locations in Kazakhstan, Russia (with the Russian business classified as discontinued operations pending sale), Ukraine, Uzbekistan, Kyrgyzstan, Azerbaijan, Armenia, Cyprus, the UK, Greece, Spain, France, Germany, United Arab Emirates and Turkey. The Company also owns a U.S. Securities and Exchange Commission ("SEC") registered broker dealer. The Company's common stock trades on the Nasdaq Capital Market. As of September 30, 2022, the Company owned directly, or through subsidiaries, the following companies: • 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 Life JSC, an Almaty, Kazakhstan-based life/health insurance company ("Freedom Life"); • Freedom Finance Insurance JSC, an Almaty, Kazakhstan-based general insurance company ("Freedom Insurance"); • 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 is also approved to engage in certain capital markets and investment banking activities ("PrimeEx"); • FFIN Securities, Inc., a currently-dormant Nevada corporation ("FFIN"); • Freedom Finance Ltd., a Dubai, United Arab Emirates-based financial intermediary company ("Freedom UAE"); • ITS Tech Limited, an Astana International Financial Centre-based, IT-support company ("ITS Tech"); • Ticketon Events LLP, an Almaty, Kazakhstan-based online ticket sales company ("Ticketon"); • Insurance Company London Almaty JSC, an Almaty, Kazakhstan-based general insurance company ("London Almaty"); • Waytrust Trading Ltd, a Cyprus-based asset management company ("Waytrust"); • Freedom Finance Turkey LLC, an Istanbul based financial consulting company ("Freedom TR"); • 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"); and • Freedom Finance Auto LLC, a Russia-based car loans company ("Freedom Auto"). 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 controlled 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 determined that Freedom UA is a variable interest entity ("VIE"). Accordingly, the Company consolidated Freedom UA into the financial statements of the Company. Prior to July 2021, the Company controlled approximately 32.9% of Freedom UA, but due to changes to Ukrainian regulations to restrict foreign ownership of registered Ukrainian broker-dealers, in July 2021, the Company was required to sell approximately 23.9% of its equity interest in Freedom UA to Mr. Tashtitov, reducing the Company's direct ownership interest in Freedom UA to approximately 9%. On October 17, 2022, the Company has 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 25 - 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 quarterly report on Form 10-Q/A. In addition, the Company intends to sell its Freedom Finance Auto LLC subsidiary, which is not material in the context of its operations. The sale of Freedom Finance Auto LLC by the Company is a condition precedent in the agreement to sell Freedom RU and Freedom Bank RU. Through its subsidiaries, the Company is a professional participant, with a license to provide one or more types of services, on a number of stock exchanges, including the Kazakhstan Stock Exchange (KASE), Astana International Stock Exchange (AIX), Moscow Exchange (MOEX), Saint-Petersburg Exchange (SPBX), Ukrainian Exchange (UX), Republican Stock Exchange of Tashkent (UZSE), Uzbek Republican Currency Exchange (UZCE) and is a member of the New York Stock Exchange (NYSE) and Nasdaq Stock Exchange (Nasdaq). The Company also own a 24.3% interest in the UX. Freedom EU provides 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 or contextually indicated, the “Company” refers to FRHC, together with its consolidated subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting principles The Company's accounting policies and accompanying condensed consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Basis of presentation and principles of consolidation The condensed consolidated financial statements present the condensed consolidated accounts of FRHC and its consolidated subsidiaries. In the opinion of management, all normal, recurring adjustments necessary for fair presentation of the condensed consolidated financial statements have been included. 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 subordinated financial support from other parties or whose equity holders at risk 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. The carrying amounts of the VIE’s consolidated assets and liabilities are as follows: September 30, 2022 March 31, 2022 Cash and cash equivalents 1,645 134 Restricted cash — 2,843 Trading securities 3,437 2,942 Brokerage and other receivables, net 273 435 Fixed assets, net 803 1,043 Intangible assets, net 147 205 Right-of-use asset 512 905 Other assets 92 127 Total assets 6,909 8,634 Customer liabilities 9,362 8,439 Securities repurchase agreement obligations — 3,267 Trade payables 5 35 Lease liability 538 914 Other liabilities 65 434 Total liabilities 9,970 13,089 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 Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of total revenue, net 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). 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 margin loans, loans issued, trading securities, available-for-sale securities and reverse repurchase agreement obligations is 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 the following portfolio segments: mortgages, uncollateralized bank customer loans, collateralized bank customer loans, car loans and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase real estate, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals and businesses, and retail unsecured banking loans provided to individuals. Collateralized bank customer loans consist of retail collateralized loans provided to individuals. Subordinated loans consist of uncollateralized loans provided to the legal entities to support their businesses, that ranks below other, more senior loans or securities with respect to claims on assets or earnings. 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, real wage index, inflation rate and retail trade 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 a component for loans collectively evaluated for impairment. 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 Kazakhstan tenge, Russian ruble, euro, U.S. dollar, Ukrainian hryvnia, Uzbekistani sum, Kyrgyzstani som, Azerbaijani manat, British pound sterling, Armenian dram, United Arab Emirates dirham and Turkish lira, 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 quarterly 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 shareholders' equity as "Accumulated other comprehensive loss". Cash and cash equivalents Cash and cash equivalents are generally comprised of certain highly liquid investments with original maturities of three months or less at the date of purchase. Cash and cash equivalents include those reverse repurchase agreements, where maturity is less than 90 days, and the credit risk of the counterparty is low, which are recorded at the amounts at which the securities were acquired 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 Condensed 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 Condensed Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Condensed 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 the 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 Condensed 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 accumulated other comprehensive (loss)/income is then reclassified to net realized gain/(loss) on investments available-for-sale in the Condensed 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 Condensed 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 Condensed 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 Condensed 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 these 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 Condensed Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Condensed 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. During the fiscal year ended March 31, 2022, the Company recognized write-off expenses of the client base that was recognized with the acquisition of Zerich in the amount of $3,125 due to economic uncertainty during the Company's fourth fiscal quarter stemming from the Russia/Ukraine Conflict. As of September 30, 2022, there were no write-offs performed. Impairment of goodwill As of September 30, 2022, and March 31, 2022, goodwill recorded in the Company’s Condensed Consolidated Balance Sheets totaled $9,512 and $5,898, respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The entity compares the fair value of a reporting unit with its carrying amount. The goodwill impairment charge recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment is recorded. 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 previously recognized for Freedom Bank RU, Freedom UA and Zerich is below of the carrying amount of the Company’s goodwill. The Company recognized impairment loss for the goodwill in the amount of $2,300 as of March 31, 2022, and presented goodwill, net of impairment loss in the Company's Condensed Consolidated Balance Sheets. The goodwill value as of September 30, 2022, increased compared to March 31, 2022, due to acquisition of London Almaty and Ticketon and as a result of foreign exchange currency translation. The changes in the carrying amount of goodwill as of March 31, 2022, and for the 6 months ended September 30, 2022, were as follows: Amount Balance as of March 31, 2022 (Recasted) $ 5,898 Acquisition of London Almaty 485 Acquisition of Ticketon 3,172 Foreign currency translation (43) Balance as of September 30, 2022 $ 9,512 Asset and Liabilities Held for Sale The Company classifies assets and liabilities (the "disposal group") 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 commitment to sell the disposal group in its 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. The Company recorded a provision for impairment of discontinued operations of $41,464 in the three months ended September 30, 2022. A disposal group that represents a strategic shift to the Company or is acquired with the intention to sell is reflected as a discontinued operation on the Condensed 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 Condensed Consolidated Financial Statements and related Notes reflect the securities brokerage and complementary banking operations in Russia as a discontinued operation in second quarter of 2023 fiscal year as the Company has entered into an agreement to divest these operations. The divestment transaction is subject to the approval of the Central Bank of the Russian Federation and and is expected to be completed within the next fiscal quarter. See Note 25 Assets and Liabilities held for sale , for more information on assets held for sale and discontinued 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 penalties arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of September 30, 2022, and March 31, 2022, the Company had no accrued interest or penalties related to uncertain tax positions. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Cuts and Jobs 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 Condensed Consolidated Balance Sheets as of September 30, 2022, and March 31, 2022, and in its Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2022, and 2021. Financial instruments 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 Condensed Consolidated Balance Sheets. Refer to Note 23 Leases , to the condensed 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 Insurance contract assets and liabilities Insurance and reinsurance receivable Insurance and reinsurance receivable is recognized when related income is earned and measured on initial recognition at the fair value of the consideration receivable. Subsequent to initial recognition, any insurance and reinsurance receivable is measured at cost net of any allowance for impairment losses. Insurance and reinsurance payable Payables on insurance business comprise advances received, amounts payable to insured (claims and premium refund payable) and amounts payable to agents and brokers, and advances received from insurers and reinsurers. Payables on reinsurance business comprise net amounts payable to reinsurers. Amounts payable to reinsurers include ceded reinsurance premiums, assumed premium refunds and claims on assumed reinsurance. Insurance and reinsurance payable are accounted for at amortized cost. Unearned premium reserve and claims Unearned premium is determined by the method of proportion for each contract, as the product of the insurance premium under the contract for the ratio of the expiration of the insurance cover (in days) to the balance sheet date (in days) from the date of recognition of the insurance premium in accounting as income until the end of the insurance coverage. The reinsurer's share in the unearned premium reserve is calculated separately for each insurance (reinsurance) contract and is determined as the ratio of the insurance premium under the reinsurance contract to the insurance premium under the insurance contract multiplied by the unearned premium reserve. Results of insurance activity includes net written insurance premiums reduced by the net change in the unearned premium reserve, commissions recognized from assumed insurance and reinsurance contracts, claims paid net and net change in the loss reserves. Net written insurance premiums represent gross written premiums less premiums ceded to reinsurers. Upon inception of a contract (except for classes of life and annuity insurance), premiums are recorded as written and are earned on a pro rata basis over the term of the related contract coverage. The unearned premium reserve represents the portion of the premiums written relating to the unexpired terms of coverage and is included in the accompanying statement of Condensed Consolidated Balance Sheets. Unearned premium reserve relates to non-life insurance products and, non-annuity insurance products. Claims are expensed to th e Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income as incurred. Loss reserves Non-life and annuity insurance Loss reserves are a summary of estimates of ultimate losses, and include both claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). RBNS is created for existing reported claims not settled at the reporting date. Estimates are made on the basis of information received by the Company during its investigation of insured events. IBNR is estimated by the Company based on its previous history of reported/settled claims using actuarial methods of calculation, which include claim development triangles. Reinsurance assets in IBNR are estimated applying the same actuarial method used in IBNR estimation. Life insurance Not incurred claims reserves (NIC) on life insurance contracts equal the NIC amount for all life insurance contracts valid as at the reporting date. NIC reserve on a separate contract of life insurance, except for the insurance contract with policyholder's participation in investments, is equal to the maximum value of the net level premium reserve and gross-premium reserve. Net level premium reserve is the present value of future benefits (excluding survival benefits) less present value of future net premiums. Gross-premium res |
RECAST
RECAST | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recast | RECAST When preparing the condensed consolidated financial statements as of and for the three and six months ended September 30, 2022, management determined that certain amounts included in the Company’s condensed consolidated financial statements as of March 31, 2022, required revision due to the closing of the acquisition of Freedom Life and Freedom Insurance in May 2022, which were deemed to be entities under common control with the Company since 2018. On May 17, 2022, the Company acquired two insurance companies in Kazakhstan, a life insurance company, Freedom Life, and a direct insurance carrier, excluding life, health and medical, Freedom Insurance. Prior to acquiring these companies, each was wholly owned by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov, who had previously acquired the two entities from a non-related party. Freedom Life and Freedom Insurance were deemed to be under common control with the Company since February 28, 2018, and August 22, 2018, respectively, the dates, when two insurance companies were acquired by Timur Turlov. The Company acquired these companies from Mr. Turlov on May 17, 2022 at the historical cost paid by him plus amounts he has contributed as additional paid in capital since his purchase. The Company acquired the Freedom Life and Freedom Insurance to expand its presence in insurance segment. The purchase price for 100% of the outstanding shares of Freedom Insurance was $13,977 and the purchase price for 100% of the outstanding shares of Freedom Life was $12,611. The Company is required to make these payments to Timur Turlov by no later than December 31, 2022. As required by ASC 805 Business Combinations, acquisitions with parties under common control are required to have all previously presented periods recast to the date of acquisition. Accordingly, the financial results of Freedom Life and Freedom Insurance have been consolidated in the condensed consolidated financial statements as of and for the three and six months ended September 30, 2022, and in the corresponding periods of 2021 for comparative purposes, as if they had been acquired prior to such periods. In addition, because the assets and liabilities to be disposed of in connection with the planned sale of Freedom RU and Freedom Bank RU met the held for sale criteria as of September 30, 2022, such subsidiaries are presented as discontinued operations in accordance with ASC 205 and 360 in the the condensed consolidated financial statements as of and for the three and six months ended September 30, 2022 and in the corresponding periods of 2021 for comparative purposes. For additional information see Note 25 Assets and Liabilities held for sale to the condensed consolidated financial statements. The previously issued Condensed Consolidated Balance Sheet as of March 31, 2022, and Condensed Consolidated Statement of Operations and Statements of Other Comprehensive Income for the three and six months ended September 30, 2021, have been revised as follows: As of March 31, 2022 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations Recast discontinued operations As recasted ASSETS Cash and cash equivalents $ 625,547 $ 1,427 $ (901) $ 371 $ (82) $ (400,898) $ 225,464 Trading securities 1,203,479 8,875 — 68,520 — (122,497) 1,158,377 Restricted cash 553,680 — — — — (5,730) 547,950 Brokerage and other receivables, net 357,567 173 (34) 60 (20) (210,087) 147,659 Loans issued 94,797 44 — — — (2,395) 92,446 Other assets 25,707 7,244 — 399 — (7,214) 26,136 Fixed assets, net 21,365 182 — 254 — (3,978) 17,823 Right-of-use asset 15,669 532 — 152 — (8,922) 7,431 Deferred income tax assets 12,018 23 — 28 — (11,161) 908 Intangible assets, net 5,791 1,489 — 161 — (2,278) 5,163 Goodwill 5,388 359 — 151 — — 5,898 Available-for-sale securities, at fair value 1 161,363 — — — — 161,364 Insurance contract assets — 3,555 — 2,157 — — 5,712 Assets held for sale — — — — — 825,419 825,419 TOTAL ASSETS $ 2,921,009 $ 185,266 $ (935) $ 72,253 $ (102) $ 50,259 $ 3,227,750 LIABILITIES AND SHAREHOLDERS’ EQUITY Securities repurchase agreement obligations $ 775,178 $ 47,691 $ — $ 49,824 $ — $ (32,469) $ 840,224 Customer liabilities 1,417,937 — (901) — (82) (651,326) 765,628 Trade payables 45,229 — — 21 (20) (147) 45,083 Liabilities from insurance activity — 106,329 — 13,161 — — 119,490 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 15,315 543 — 176 — (8,530) 7,504 Deferred income tax liabilities — — — — — — — Deferred distribution payments 8,534 — — — — — 8,534 Liabilities held for sale — — — — — 812,478 812,478 Other liabilities 19,917 550 (35) 292 — (4,872) 15,852 TOTAL LIABILITIES $ 2,413,334 $ 155,113 $ (936) $ 63,474 $ (102) $ 50,259 $ 2,681,142 Commitments and Contingent Liabilities (Note 26) — — — — — — — 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 9,465 (9,465) 15,577 (15,577) — 59 Additional paid in capital 141,340 — 16,499 — 16,906 — 174,745 Retained earnings 426,563 28,131 (6,666) (4,811) (1,293) — 441,924 Accumulated other comprehensive loss (53,291) (7,443) (368) (1,987) (36) — (63,125) TOTAL FRHC SHAREHOLDERS’ EQUITY $ 514,671 $ 30,153 $ — $ 8,779 $ — $ — $ 553,603 Non-controlling interest (6,996) 1 — — — — (6,995) TOTAL SHAREHOLDERS’ EQUITY $ 507,675 $ 30,154 $ — $ 8,779 $ — $ — $ 546,608 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,921,009 $ 185,267 $ (936) $ 72,253 $ (102) $ 50,259 $ 3,227,750 Three months ended September 30, 2021 As previously reported* FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations Recast discontinued operations As recasted Revenue: Fee and commission income $ 114,344 $ — $ (91) $ 28 $ (77) $ (21,179) $ 93,025 Net gain on trading securities 175,252 329 — 859 — 5,163 181,603 Net realized loss on investments available for sale — (622) — — — — (622) Interest income 22,253 5,513 — 2,221 — (3,368) 26,619 Insurance underwriting income — 12,804 — 3,218 — — 16,022 Net gain on foreign exchange operations 1,622 (106) — (11) — 3 1,508 Net loss on derivative (656) — — — — — (656) TOTAL REVENUE, NET 312,815 17,918 (91) 6,315 (77) (19,381) 317,499 Expense: Fee and commission expense 22,968 1,836 (91) 174 (77) (2,159) 22,651 Interest expense 16,185 1,120 — 1,621 — (2,210) 16,716 Insurance claims incurred, net of reinsurance — 9,748 — 3,765 — — 13,513 Operating expense 36,569 1,336 — 1,630 — (17,765) 21,770 Provision for impairment losses 366 — — 662 — (50) 978 Other expense, net 653 110 — (1) — 24 786 TOTAL EXPENSE 76,741 14,150 (91) 7,851 (77) (22,160) 76,414 INCOME BEFORE INCOME TAX 236,074 3,768 — (1,536) — 2,779 241,085 Income tax expense (31,562) (13) — 10 — — (32,094) INCOME FROM CONTINUING OPERATIONS 204,512 3,755 — (1,526) — 2,779 208,991 Income/(loss) before income tax (expense)/benefit of discontinued operation — — — — — (2,779) (2,779) Income tax (expense)/benefit of discontinued operations — — — — — 529 529 Income from discontinued operation — — — — (2,250) (2,250) NET INCOME $ 204,512 $ 3,755 $ — $ (1,526) $ — $ — $ 206,741 Less: Net loss attributable to non-controlling interest in subsidiary (20) — — — — — (20) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 204,532 $ 3,755 $ — $ (1,526) $ — $ — $ 206,761 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (1,601) — — — — (1,601) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — 622 — — — — 622 Foreign currency translation adjustments, net of tax effect 930 21 — 96 — 134 1,181 OTHER COMPREHENSIVE INCOME 930 (958) — 96 — 134 202 COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 205,442 $ 2,797 $ — $ (1,430) $ — $ 134 $ 206,943 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (20) — — — — — (20) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 205,462 $ 2,797 $ — $ (1,430) $ — $ 134 $ 206,963 For the three months ended September 30, 2021, the Company’s EPS as reported was 3.44 for basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 3.51, (0.05), and 3.47 for basic and diluted EPS for continuing operations, discontinued operations, and total EPS, respectively. Six months ended September 30, 2021 As previously reported* FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations Recast discontinued operations As recasted Revenue: Fee and commission income $ 210,649 $ — $ (91) $ 88 $ (161) $ (39,345) 171,140 Net gain on trading securities 185,152 600 — 1,429 — 3,104 190,285 Net realized loss on investments available for sale — (653) — — — — (653) Interest income 41,431 10,100 — 4,218 — (6,892) 48,857 Insurance underwriting income — 24,062 — 6,036 — — 30,098 Net gain on foreign exchange operations 434 38 — 10 — 2,234 2,716 Net loss on derivative (715) — — — — — (715) TOTAL REVENUE, NET 436,951 34,147 (91) 11,781 (161) (40,899) 441,728 Expense: Fee and commission expense 44,832 3,128 (91) 362 (161) (4,226) 43,844 Interest expense 30,457 1,998 — 2,966 — (4,459) 30,962 Insurance claims incurred, net of reinsurance — 18,616 — 6,193 — — 24,809 Operating expense 66,888 2,612 — 3,278 — (31,587) 41,191 Provision for impairment losses 659 — — 663 — (77) 1,245 Other expense/(income), net 664 225 — (2) — (92) 795 TOTAL EXPENSE 143,500 26,579 (91) 13,460 (161) (40,441) 142,846 INCOME BEFORE INCOME TAX 293,451 7,568 — (1,679) — (458) 298,882 Income tax expense (37,231) (1) — (7) — — (37,220) INCOME FROM CONTINUING OPERATIONS 256,220 7,567 — (1,686) — (458) 261,662 Income/(loss) before income tax(expense)/benefit of discontinued operation — — — — — 458 458 Income tax (expense)/benefit of discontinued operations — — — — — (537) (9) Income from discontinued operation — — — — — (79) 449 NET INCOME $ 256,220 $ 7,567 $ — $ (1,686) $ — $ — $ 262,111 Less: Net loss attributable to non-controlling interest in subsidiary (72) — — — — — (72) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 256,292 7,567 — (1,686) — $ — $ 262,183 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (726) — — — — (726) Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect — 653 — — — — 653 Foreign currency translation adjustments, net of tax effect 4,230 71 — — (98) — 4,203 OTHER COMPREHENSIVE INCOME 4,230 (2) — — (98) — 4,130 COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 260,450 $ 7,565 $ — $ (1,686) $ (98) $ — $ 266,241 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (72) — — — — — (72) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS 260,522 7,565 — (1,686) (98) — 266,313 |
RESTATEMENT
RESTATEMENT | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENT | RESTATEMENTS During the course of the Company's preparation of Form 10-Q for the period ended September 30, 2022, it was determined that there was an error in the Company's quarterly report on Form 10-Q for the six months ended September 30, 2021 related to the classification of loans issued and bank customer accounts within the Company's Condensed Consolidated Statements of Cash Flows. 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". In addition, the Company identified 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". Subsequently to the issuance of the Form 10-Q for the period ended September 30, 2022, the Company determined that there was an error in the Company's quarterly report on Form 10-Q for the six months ended September 30, 2022 related to classification of funds received under the Kazakhstan state program within the Company's Condensed Consolidated Statements of Cash Flows. The Company identified 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". T he Company has evaluated the effect of the incorrect classification and concluded that restatement was necessa ry for the period ended September 30, 2022 while the adjustments for the period ended September 30, 2021 were not material . The Company determined that the restatement did not have any impact on the Company’s operating performance or any per-share amounts. The following table summarizes the impact of these correction of errors for the periods presented: Six months ended September 30, 2022 As previously reported Correction of errors related to classification of funds received for financing mortgage loans As restated Net cash flows from/(used in) operating activities $ 124,183 $ (149,590) $ (25,407) Net cash flows used in investing activities (323,187) — (323,187) Net cash flows from/(used in) financing activities 746,094 149,590 895,684 Effect of changes in foreign exchange rates on cash and cash equivalents 184,186 — 184,186 NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 731,276 $ — $ 731,276 Six months ended September 30, 2021 As previously reported FF Life and FF Insurance acquisitions Adjustments for discontinued operations As recasted Correction of errors related to the classification of loans issued and bank customer accounts As restated Net cash flows from/(used in) operating activities $ (146,141) $ 2,119 134,938 $ (9,084) $ 29,931 $ 20,847 Net cash flows used in investing activities (7,084) (37,220) — (44,304) (21,948) (66,252) Net cash flows from/(used in) financing activities 99,070 28,909 32,871 160,850 (7,983) 152,867 NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ (36,533) $ (96) $ 167,617 $ 130,988 $ — $ 130,988 The following table summarizes the impact of the correction of errors broken down by continuing and discontinued operations: Six months ended September 30, 2021 As recasted Correction of errors related to the classification of loans issued and bank customer accounts As restated Net cash flows from/(used in) operating activities from continuing operations $ (4,046) $ 19,288 $ 15,242 Net cash flows from/(used in) operating activities from discontinued operations (5,038) 10,643 5,605 Net cash flows (used in) investing activities from continuing operations (43,238) (22,543) (65,781) Net cash flows (used in)/from investing activities from discontinued operations (1,066) 595 (471) Net cash flows from financing activities from continuing operations 178,496 3,255 181,751 Net cash flows used in financing activities from discontinued operations (17,646) (11,238) (28,884) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 130,988 $ — $ 130,988 In the Company's previously issued condensed consolidated financial statements for the quarters ended September 30, 2022 and 2021, 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 clie nts. The following tables summarize the impact of corrections of the errors on the Condensed Consolidated Statement of Operation s for the periods presented: For the three months ended September 30, 2022 As recasted Correction of errors As restated Fee and commission income $ 93,123 $ (9,966) $ 83,157 Insurance underwriting income 26,200 — 26,200 Net realized gain/(loss) on investments available for sale 716 — 716 Net gain on trading securities 9,005 — 9,005 Interest income 49,033 9,966 58,999 Net loss on foreign exchange operations 4,555 — 4,555 Net gain/(loss) on derivative (2,320) — (2,320) TOTAL REVENUE, NET $ 180,312 $ — $ 180,312 For the six months ended September 30, 2022 As recasted Correction of errors As restated Fee and commission income $ 187,483 $ (14,880) $ 172,603 Insurance underwriting income 50,440 — 50,440 Net realized gain/(loss) on investments available for sale 123 — 123 Net gain on trading securities 13,439 — 13,439 Interest income 92,682 14,880 107,562 Net loss on foreign exchange operations 9,148 — 9,148 Net gain/(loss) on derivative (1,054) — (1,054) TOTAL REVENUE, NET $ 352,261 $ — $ 352,261 For the three months ended September 30, 2021 As recasted Correction of errors As restated Fee and commission income 95,215 (2,190) 93,025 Net gain on trading securities 181,603 — 181,603 Net realized gain/(loss) on investments available for sale (622) — (622) Interest income 24,429 2,190 26,619 Insurance underwriting income 16,022 — 16,022 Net gain on foreign exchange operations 1,508 — 1,508 Net loss on derivative (656) — (656) TOTAL REVENUE, NET $ 317,499 $ — $ 317,499 For the six months ended September 30, 2021 As recasted Correction of errors As restated Fee and commission income $ 174,431 $ (3,291) $ 171,140 Insurance underwriting income 30,098 — 30,098 Net realized gain/(loss) on investments available for sale (653) — (653) Net gain on trading securities 190,285 — 190,285 Interest income 45,566 3,291 48,857 Net loss on foreign exchange operations 2,716 — 2,716 Net gain/(loss) on derivative (715) — (715) TOTAL REVENUE, NET $ 441,728 $ — $ 441,728 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 3 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | CASH AND CASH EQUIVALENTS As of September 30, 2022, and March 31, 2022, cash and cash equivalents consisted of the following: September 30, 2022 March 31, 2022 (Recasted) Cash demand accounts in National Bank (Kazakhstan) $ 478,567 $ 42,517 Cash demand accounts in commercial banks 193,944 70,155 Securities purchased under reverse repurchase agreements 47,049 19,947 Cash demand accounts on brokerage accounts 45,653 71,061 Petty cash in bank vault and on hand 12,033 18,607 Cash in transit 8,301 35 Overnight deposits 2,776 — Cash demand accounts in stock exchanges 1,975 2,828 Cash demand accounts in the Central Depository (Kazakhstan) 92 314 Total cash and cash equivalents $ 790,390 $ 225,464 As of September 30, 2022, and March 31, 2022, cash and cash equivalents were not insured. As of September 30, 2022, and March 31, 2022, the cash and cash equivalents balance included collateralized securities received under reverse repurchase agreements on the terms presented below: September 30, 2022 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Corporate debt 15.81 % $ 25,608 $ — $ 25,608 Non-US sovereign debt 1.38 % 13,746 — 13,746 US sovereign debt 13.99 % 7,444 — 7,444 Corporate equity 12.25 % 228 23 251 Total securities sold under repurchase agreements $ 47,026 $ 23 $ 47,049 March 31, 2022 (Recasted) Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements US sovereign debt 16.38 % $ 9,952 $ — $ 9,952 Non-US sovereign debt 12.51 % 9,786 — 9,786 Corporate equity 16.90 % 152 — 152 Corporate debt 11.88 % 57 — 57 Total securities sold under repurchase agreements $ 19,947 $ — $ 19,947 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 September 30, 2022, and March 31, 2022, was $47,435 and $19,911, respectively. |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Sep. 30, 2022 | |
Restricted Cash [Abstract] | |
Restricted cash | RESTRICTED CASH Restricted cash for the periods ended September 30, 2022, and March 31, 2022, consisted of: September 30, 2022 March 31, 2022 (Recasted) Brokerage customers’ cash $ 428,540 $ 531,032 Deferred distribution payments 8,534 8,534 Guaranty deposits 2,956 5,540 Restricted bank accounts — 2,844 Total restricted cash $ 440,030 $ 547,950 As of September 30, 2022, and March 31, 2022, 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 of September 30, 2022, and March 31, 2022 , the deposited funds of $8,534 are qualified for FDIC insurance in the amount of $250. Restricted cash also included a deferred distribution payment amount, which is a cash 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 to claim his, her or its distribution payments. The Company has no control over when, or if, an entitled shareholder will submit the necessary documentation to claim their distribution payment. The deferred distribution payment amount was held in cash at September 30, 2022, and March 31, 2022. 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, no party has yet established legal and beneficial ownership of the distribution payment. The Company does not claim an ownership interest in the distribution payment. For additional information regarding this matter see Part II, Item 1 Legal Proceedings of this quarterly report on Form 10-Q/A. |
TRADING AND AVAILABLE-FOR-SALE
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | 6 Months Ended |
Sep. 30, 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 September 30, 2022, and March 31, 2022, trading and available-for-sale securities consisted of: September 30, 2022 March 31, 2022 (Recasted) Corporate debt $ 666,137 $ 712,133 Non-U.S. sovereign debt 634,056 360,570 Corporate equity 32,522 72,354 U.S. sovereign debt 23,883 10,435 Exchange traded notes 2,946 2,884 Total trading securities $ 1,359,544 $ 1,158,377 September 30, 2022 March 31, 2022 (Recasted) Corporate debt $ 155,529 $ 145,836 Non-U.S. sovereign debt 8,293 12,997 U.S. sovereign debt 4,352 2,530 Corporate equity 1 1 Total available-for-sale securities, at fair value $ 168,175 $ 161,364 The following tables present maturity analysis for available-for-sale securities as of September 30, 2022, and March 31, 2022: September 30, 2022 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Non-US sovereign debt — 430 850 7,013 8,293 Corporate debt 50,533 53,456 49,411 2,129 155,529 US sovereign debt — 1,389 1,694 1,269 4,352 Corporate equity — — — 1 1 Total available-for-sale securities, at fair value $ 50,533 $ 55,275 $ 51,955 $ 10,412 $ 168,175 March 31, 2022 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Non-US sovereign debt 1,692 864 1,086 9,355 12,997 Corporate debt 69,364 50,155 26,284 33 145,836 US sovereign debt — — — 2,530 2,530 Corporate equity — — — 1 1 Total available-for-sale securities, at fair value $ 71,056 $ 51,019 $ 27,370 $ 11,919 $ 161,364 As of September 30, 2022, the Company held debt securities of two issuers which individually exceeded 10% of the Company’s total trading securities - Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in the amount of $321,902 and the Ministry of Finance of the Republic of Kazakhstan (S&P Global: BBB- credit rating) in the amount of $622,251. 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 in the amounts of $357,343 and $506,472, respectively. The Company recognized no other-than-temporary impairment in accumulated other comprehensive loss. The fair value of securities 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 securities assets in the Сondensed Сonsolidated Balance Sheets or disclosed in the Notes to the condensed consolidated financial statements at fair value on a recurring basis as of September 30, 2022, and March 31, 2022: Weighted Average Total Fair Value Measurements as of September 30, 2022 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Corporate debt 10.90 % $ 666,137 $ 622,933 $ 42,689 $ 515 Non-U.S. sovereign debt 10.90 % 634,056 421,301 209,418 3,337 Corporate equity — % 32,522 19,986 12,213 323 U.S. sovereign debt 4.32 % 23,883 20,997 2,886 — Exchange traded notes — % 2,946 2,465 481 — Total trading securities $ 1,359,544 $ 1,087,682 $ 267,687 $ 4,175 Corporate debt 12.20 % $ 155,529 $ 147,582 $ 7,947 $ — Non-US sovereign debt 5.90 % 8,293 7,661 632 — US sovereign debt 4.05 % 4,352 3,510 842 — Corporate equity — % 1 — — 1 Total available-for-sale securities, at fair value $ 168,175 $ 158,753 $ 9,421 $ 1 Weighted Average Interest Rate Total Fair Value Measurements as of March 31, 2022 (Recasted) using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Corporate debt 9.09 % $ 712,133 $ 711,538 $ — $ 595 Non-U.S. sovereign debt 13.15 % 360,571 352,275 — 8,296 Corporate equity — 72,354 71,827 276 251 U.S. sovereign debt 2.35 % 10,435 10,435 — — Exchange traded notes — 2,884 2,884 — — Total trading securities $ 1,158,377 $ 1,148,959 $ 276 $ 9,142 Corporate debt 11.09 % $ 145,836 $ 145,836 $ — $ — Non-U.S. sovereign debt 5.51 % 12,997 12,551 — 446 U.S. sovereign debt 2.17 % 2,530 2,530 — — Corporate equity — 1 — — 1 Total available-for-sale securities, at fair value $ 161,364 $ 160,917 $ — $ 447 The tables below present the valuation techniques and significant level 3 inputs used in the valuation as of September 30, 2022, and March 31, 2022. The tables are not intended to be all inclusive, but instead capture the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of September 30, 2022 Significant Unobservable Inputs % Non-US sovereign debt DCF $ 3,337 Discount rate 48.8% Estimated number of years 11 years Corporate debt DCF 515 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 323 Discount rate 58.8% Estimated number of years 9 years Total $ 4,175 Type Valuation Technique FV as of March 31, 2022 Significant Unobservable Inputs % 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 Corporate debt DCF 595 Discount rate 45.0% Estimated number of years 3 months Corporate equity DCF 251 Discount rate 20.0% Estimated number of years 9 years Total $ 9,142 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended September 30, 2022, and the year ended March 31, 2022: Trading securities Available-for-sale securities Balance as of March 31, 2022 (Recasted) $ 9,142 $ 1 Purchase of investments that use Level 3 inputs 1,750 446 Reclassification to level 2 (1,267) — Sale (4,716) — Revaluation of investments that use Level 3 inputs (160) — Translation difference (574) — Balance as of September 30, 2022 (Recasted) $ 4,175 $ 447 Balance as of March 31, 2021 (Recasted) $ 19,032 $ 1 Reclassification to level 3 682 — Reclassification to level 1 (18,370) — Purchase of investments that use Level 3 inputs 10,812 — Revaluation of investments that use Level 3 inputs (3,014) — Balance as of March 31, 2022 (Recasted) $ 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 September 30, 2022, and March 31, 2022: September 30, 2022 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 152,826 $ (402) $ 3,105 $ 155,529 2022 - 2042 Non-US sovereign debt 10,002 — (1,709) 8,293 2024 - indefinite U.S. sovereign debt 5,035 — (683) 4,352 2024 - 2044 Corporate equity 1 — — 1 not applicable Total available-for-sale securities, at fair value $ 167,864 $ (402) $ 713 $ 168,175 March 31, 2022 (Recasted) Assets measured at amortized cost Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 146,111 $ (275) $ 145,836 2022 - 2035 Non-U.S. sovereign debt 13,784 (787) 12,997 2022 - indefinite U.S. sovereign debt 2,912 (382) 2,530 2044 Corporate equity 1 — 1 not applicable Total available-for-sale securities, at fair value $ 162,808 $ (1,444) $ 161,364 |
BROKERAGE AND OTHER RECEIVABLES
BROKERAGE AND OTHER RECEIVABLES, NET | 3 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Brokerage and other receivables, net | BROKERAGE AND OTHER RECEIVABLES, NET Brokerage and other receivables as of September 30, 2022, and March 31, 2022, consisted of: September 30, 2022 March 31, 2022 (Recasted) Margin lending receivables $ 399,857 $ 138,983 Receivables from brokerage clients 4,377 4,386 Long-term installments receivables 1,287 1,367 Receivable from sale of securities 866 884 Bonds coupon receivable 636 — Bank commissions receivable 499 598 Receivable for underwriting and market-making services 324 296 Dividends accrued 6 45 Other receivables 2,913 3,207 Allowance for receivables (2,596) (2,107) Total brokerage and other receivables, net $ 408,169 $ 147,659 Margin lending receivables allow customers to borrow against the value of qualifying securities, primarily for the purpose of purchasing additional securities, as well as to collateralize short positions. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage. Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and our right to call for margin when collateral values decline. As of September 30, 2022, and March 31, 2022, amounts due from a single related party customer were $327,487 and $102,680, respectively or 82% and 70% respectively, of total brokerage and other receivables, net. Approximately 97% and 95% of these balances were due from Freedom Securities Trading Inc. (formerly known as FFIN Brokerage Services, Inc.) (“FFIN Brokerage”), a company owned by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov. Based on historical data, the Company considers receivables due from related parties fully collectible. As of September 30, 2022, and March 31, 2022, using historical and statistical data, the Comp any recorded an allowance for brokerage receivables in the amounts of $2,596 and $2,107, respectively. |
LOANS ISSUED
LOANS ISSUED | 3 Months Ended |
Sep. 30, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans issued | LOANS ISSUED Loans issued as of September 30, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans $ 249,133 October, 2022 - September, 2047 9.16 % $ 250,228 KZT Uncollateralized bank customer loans 83,475 October, 2022 - September, 2042 18.85 % — KZT Car loans 11,531 October, 2022 - October, 2029 26.76 % 11,738 KZT Collateralized Bank customer loans 6,840 May, 2023 - September, 2023 1.55 % 6,840 KZT Subordinated loans 5,122 December, 2022-April, 2024 4.89 % — USD Subordinated loans 1,013 September, 2029 12.00 % — UAH Loans issued to policyholders 103 November, 2022 - June, 2023 14.55 % 180 KZT Other 140 May, 2022 - May, 2027 2.00 % — EUR Total loans issued $ 357,357 Freedom Bank KZ provides mortgage loans to borrowers on behalf of the JSC Kazakhstan Sustainability Fund ("Program Operator") related to the state mortgage program "7-20-25" and transfers the rights of claim on the loans to the Program Operator. Under this program, borrowers can receive a mortgage at an interest rate of 7%, for 20 years. In accordance with the program and trust management agreement, Freedom Bank KZ carries out trust management of transferred mortgage loans, and transfers all repayments of principal amounts of mortgages plus 3% of the 7% interest to the Program Operator. The remaining 4% of the 7% interest is retained by Freedom Bank KZ as margin. 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 or more. The repurchase of delinquent loans is performed at the loan nominal value. Since the Freedom Bank KZ sells those loans with recourse for uncollectible amounts, retains part of interest from those loans, and agrees to service those loans after the sale, Freedom Bank KZ has determined that it retains control over the mortgage loans transferred and continues recognizing the loans. As Freedom Bank KZ continues to recognize the loans, it also recognizes the associated liability in the amount of $150,340 as of September 30, 2022, which is included within other liabilities in the Condensed Consolidated Balance Sheets. As of March 31, 2022 the corresponding liability amounted to $6,447. As of September 30, 2022, mortgage loans include the state mortgage program "7-20-25" with a principal amount of $203,213. Microfinance organization Freedom Finance Credit (“FFIN Credit”) is a start-up created by the Company's controlling shareholder, chairman and chief executive officer, Timur 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 that the ownership of FFIN Credit will be transferred by Mr. Turlov to the Company. During the six months ended September 30, 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 received control over the transferred loans, with the exception of the amount it has the right to sell back to the transferor, accordingly the Company has recognized the loans on its Condensed Consolidated Balance Sheets. During the three and six months ended September 30, 2022, the Company purchased loans in the aggregate amount of $18,115 and $74,796 and sold back loans totaling $9,713 and $19,545 to the FFIN Credit, respectively. During the three and six months ended September 30, 2021, the Company purchased loans in the aggregate amount of $14,204 and $19,474 and sold back loans totaling $2,860 and $2,860 to the microfinance organization, resp ectively. As of September 30, 2022, the Company held outstanding loans purchased from the FFIN Credit totaling $87,543, net of an allowance of $4,137. Loans issued as of March 31, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans $ 51,924 April 2022 - March 2047 11.86 % 52,134 KZT Uncollateralized bank customer loans 34,067 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 Loans to policyholders 43 July 2022 - March 2023 12.02 % 284 KZT Total loans issued (recasted) $ 92,446 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 3 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | PROVISION FOR INCOME TAXES The Company is subject to taxation in Kazakhstan, Russia, Kyrgyzstan, Cyprus, Ukraine, Uzbekistan, Germany and the United States of America. The tax rates used for deferred tax assets and liabilities as of September 30, 2022, and March 31, 2022, were 21% for the U.S., 20% for Kazakhstan, the Russian Federation and 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. During the six months ended September 30, 2022, and 2021, the effective tax rate was equal to 18.9% and 12.5%, respectively. |
SECURITIES REPURCHASE AGREEMENT
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | 3 Months Ended |
Sep. 30, 2022 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Securities repurchase agreement obligations | SECURITIES REPURCHASE AGREEMENT OBLIGATIONS As of September 30, 2022, and March 31, 2022, trading securities included collateralized securities subject to repurchase agreements as described in the following table: September 30, 2022 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Corporate debt 14.48 % $ 508,658 $ 6,286 $ 514,944 Non-US sovereign debt 13.94 % 464,858 — 464,858 US sovereign debt 0.80 % 1,388 — 1,388 Total securities sold under repurchase agreements $ 974,904 $ 6,286 $ 981,190 March 31, 2022 (Recasted) Interest rate and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Corporate debt 11.96 % $ 609,405 $ 142 $ 609,547 Non-US sovereign debt 10.85 % 222,893 — 222,893 US sovereign debt 0.77 % 7,396 — 7,396 Corporate equity 14.00 % 388 — 388 Total securities sold under repurchase agreements $ 840,082 $ 142 $ 840,224 The fair value of collateral pledged under repurchase agreements as of September 30, 2022, and March 31, 2022, was $989,306 and $834,583, 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 | 3 Months Ended |
Sep. 30, 2022 | |
Contract with Customer, Liability [Abstract] | |
Customer liabilities | CUSTOMER LIABILITIES The Company recognizes customer liabilities associated with funds held by its brokerage and bank customers. As of September 30, 2022, and March 31, 2022 , customer liabilities consisted of: September 30, 2022 March 31, 2022 (Recasted) Brokerage customers $ 847,517 $ 519,344 Banking customers 719,941 246,284 Total customer liabilities $ 1,567,458 $ 765,628 As of September 30, 2022, banking customer liabilities consisted of demand deposits and term deposits of $356,092 and $363,849, respectively. As of March 31, 2022, banking customer liabilities consisted of demand deposits and term deposits of $155,494 and $90,790 , respectively. In accordance with Kazakhstan local law requirements, commercial banks conclude agreements with JSC Kazakhstan Deposit Insurance Fund ("KDIF"), under which banks have to pay commissions to KDIF on a recurring basis, the amount |
TRADE PAYABLES
TRADE PAYABLES | 3 Months Ended |
Sep. 30, 2022 | |
Accounts Payable [Abstract] | |
Trade payables | TRADE PAYABLES As of September 30, 2022, and March 31, 2022 , trade payables of the Company was comprised of the following: September 30, 2022 March 31, 2022 (Recasted) Margin lending payable $ 67,966 $ 39,250 Trade payable for securities operations 448 462 Payables to suppliers of goods and services 18 4,462 Other 656 909 Total trade payables $ 69,088 $ 45,083 On September 30, 2022, and March 31, 2022, trade payables due to a single re lated party were $5,650 or 8% an d $38,889 or 86%, respectively. |
SECURITIES SOLD, NOT YET PURCHA
SECURITIES SOLD, NOT YET PURCHASED - AT FAIR VALUE | 3 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities sold not yet purchased - at fair value | SECURITIES SOLD, NOT YET PURCHASED – AT FAIR VALUE The following table provides a reconciliation of the beginning and ending balances for securities sold, not yet purchased - at fair value by the Company, as of September 30, 2022, and March 31, 2022: Total Balance as of March 31, 2021 (Recasted) $ 8,569 Short sales 7,055 Repurchase (346) Net gain on trading securities (1,413) Balance as of March 31, 2022 (Recasted) $ 13,865 Balance as of March 31, 2022 (Recasted) $ 13,865 Short sales 410 Repurchase (7,665) Net loss on trading securities 766 Balance as of September 30, 2022 $ 7,376 A short sale involves the sell of a security that is not owned with 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 | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Loans received | LOANS RECEIVED As of September 30, 2022, and March 31, 2022, loans received by the Company included: Company that received loan Lender September 30, 2022 March 31, 2022 Interest Rate Term Maturity dates (Recasted) Freedom Holding Corp. Non-Bank $ 3,622 $ 3,538 5 % 26 months 12/31/2022 Freedom Global Non-Bank 1,803 — 3 % 6 months 12/27/2022 Total loans received $ 5,425 $ 3,538 As of September 30, 2022, and March 31, 2022, the Company had loans received from a related p arty totaling $1,803 and $0, respectively. As of September 30, 2022, non-bank loans received were unsecured. As of September 30, 2022, and March 31, 2022, accrued interest on the loans amounted to $334 and $238, respectively. |
DEBT SECURITIES ISSUED
DEBT SECURITIES ISSUED | 6 Months Ended |
Sep. 30, 2022 | |
Debt Securities [Abstract] | |
Debt securities issued | DEBT SECURITIES ISSUED As of September 30, 2022, and March 31, 2022, outstanding debt securities of the Company included the following: Debt securities issued by: September 30, 2022 March 31, 2022 (Recasted) Freedom SPC $ 30,184 $ 13,203 Freedom Holding Corp. 20,500 20,499 Accrued interest 1,114 688 Total debt securities issued $ 51,798 $ 34,390 As of September 30, 2022, and March 31, 2022, the Company’s outstanding debt securities had fixed annual coupon rates ranging from 5.5% to 7% and maturity dates ranging from December 2022 to October 2026. The Company's debt securities i nclude $20,500 of FRHC notes issued from December 2019 to February 2020. The FRHC notes denominated in U.S. dollars, bear interest at an annual rate of 7% and are due in December 2022. The FRHC notes were issued under Astana International Financial Centre law and trade on the AIX. |
INSURANCE CONTRACTS ASSETS AND
INSURANCE CONTRACTS ASSETS AND LIABILITIES | 6 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Insurance contract assets and liabilities | INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES As of September 30, 2022, and March 31, 2022, insurance and reinsurance receivables of the Company was comprised of the following: September 30, 2022 March 31, 2022 Assets: (Recasted) Amounts due from policyholders $ 6,061 $ 3,500 Claims receivable from reinsurance 993 769 Amounts due from reinsured 61 23 Less provision for impairment losses (880) (343) Insurance and reinsurance receivables: 6,235 3,949 Unearned premium reserve, reinsurers’ share 4,714 143 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 1,763 1,620 Total $ 12,712 $ 5,712 As of September 30, 2022, and March 31, 2022, the premium receivables from policyholders increased due to the expansion of operations. As of September 30, 2022, and March 31, 2022, insurance and reinsurance payable of the Company was comprised of the following: September 30, 2022 March 31, 2022 Liabilities: (Recasted) Amounts payable to reinsurers $ 2,109 $ 402 Amounts payable to insured 1,768 685 Amounts payable to agents and brokers 734 1,981 Insurance and reinsurance payables: 4,611 3,068 Unearned premium reserve 31,535 17,985 Reserves for claims and claims’ adjustment expenses 113,931 98,437 Total $ 150,077 $ 119,490 As of September 30, 2022, and March 31, 2022, the amount payable to agents and brokers increased due to the expansion of operations. |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES | 3 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Net gain on trading securities | NET GAIN ON TRADING SECURITIES During the three and six months ended September 30, 2022, and September 30, 2021, net gain on trading securities was comprised of: Three Months Ended Three Months Ended (Restated) (Restated) Net gain recognized during the period on trading securities sold during the period $ 3,498 $ 36,395 Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 5,507 145,208 Net gain recognized during the period on trading securities $ 9,005 $ 181,603 Six Months Ended Six Months Ended (Restated) (Restated) Net (loss)/gain recognized during the period on trading securities sold during the period $ (8,232) $ 41,966 Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 21,671 148,319 Net gain recognized during the period on trading securities $ 13,439 $ 190,285 During the three months ended September 30, 2021, the Company exchanged approximately 11,500 shares of its stock of SPBX for units in the closed-end unit investment combined fund “SPB fund” (the “SPBX ETF”). In September 2021, the Company sold its SPBX ETF units to approximately 15,000 investors through placement agents for net proceeds of $155,673. As a result, during the three months ended September 30, 2021, the Company recognized gains on trading securities of $179,015, which included $141,067 of realized gain and $37,948 of net unrealized gain from revaluation of the SPBX shares the Company still held at September 30, 2021. |
FEE AND COMMISSION INCOME
FEE AND COMMISSION INCOME | 6 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
FEE AND COMMISSION INCOME/EXPENSE | FEE AND COMMISSION INCOME Fee and commission income is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any. The Company’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Company’s performance obligations are satisfied at a point in time and are typically collected from customers by debiting their brokerage account with the Company. Brokerage and bank services Commissions from brokerage services — The Company earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. Commissions from bank services — The Company earns bank commissions by executing client order for money transfer, purchase and sale of foreign currency, and other bank services. A substantial portion of the Company's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Trade execution and clearing services, when provided together, represent a single performance obligation, as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade date when the performance obligation is satisfied. Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities, options and commodities transactions. The Company records a receivable on the trade date and receives a payment on the settlement date. Investment Banking The Company earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on trade date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the transactions are completed. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are deferred and recognized in the same period as the related investment banking transaction revenue. Underwriting revenues and related expenses are presented gross on the condensed consolidated income statements. During the three and six months ended September 30, 2022, and September 30, 2021, fee and commission income was comprised of: Three months ended September 30, 2022 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 11,512 $ 62,781 $ 1,050 $ — $ 75,343 Bank services 5,779 — — — 5,779 Underwriting and market-making services 1,587 — — — 1,587 Other fee and commission income 189 259 — — 448 Total fee and commission income $ 19,067 $ 63,040 $ 1,050 $ — $ 83,157 Six months ended September 30, 2022 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 15,115 $ 141,644 $ 2,184 $ — $ 158,943 Bank services 9,592 — — — 9,592 Underwriting and market-making services 3,230 — — — 3,230 Other fee and commission income 322 516 — — 838 Total fee and commission income $ 28,259 $ 142,160 $ 2,184 $ — $ 172,603 Three months ended September 30, 2021 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 2,091 $ 86,057 $ 1,165 $ — $ 89,313 Bank services 1,029 — — — 1,029 Underwriting and market-making services 1,780 — — — 1,780 Other fee and commission income 366 537 — — 903 Total fee and commission income $ 5,266 $ 86,594 $ 1,165 $ — $ 93,025 Six months ended September 30, 2021 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 3,652 $ 156,762 $ 2,134 $ — $ 162,548 Bank services 1,733 — — — 1,733 Underwriting and market-making services 4,004 — — — 4,004 Other fee and commission income 2,133 722 — — 2,855 Total fee and commission income $ 11,522 $ 157,484 $ 2,134 $ — $ 171,140 Receivables and Contract Balances Receivables arise when the Company has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. Brokerage and other receivables are disclosed in Note 8 in the notes to condensed consolidated financial statements. Contract assets arise when the revenue associated with the contract is recognized before the Company’s unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. As of September 30, 2022 and March 31, 2022, contract asset balances were not material. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized either when a milestone is met triggering the contractual right to bill the customer or when the performance obligation is satisfied. As of September 30, 2022 and March 31, 2022, contract liability balances were not material. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | RELATED PARTY TRANSACTIONS During the three months ended September 30, 2022 and 2021, the Company earned commission income from related parties in the amounts of $61,149 and $80,627, respectively. Fee and commission income generated from FFIN Brokerage accounted for approximately 100% of the Company's total related party commission income for the three months ended September 30, 2022, as compared to approximately 96% of the Company's total related party commission income for the three months ended September 30, 2021. During the six months ended September 30, 2022 and 2021, the Company earned commission income from related parties in the amounts of $136,749 and $149,152, respectively. Fee and commission income generated from FFIN Brokerage accounted for approximately 92% and 56% of the Company's total related party commission income for the six months ended September 30, 2022, and 2021, Commission income earned from related parties is comprised primarily of brokerage commissions and commissions for money transfers by brokerage clients. During the three months ended September 30, 2022 and 2021, the Company paid commission expense to related parties in the amount of $196 and $5,227, respectively. Commission expense paid to FFIN Brokerage accounted for approximately 20% of the Company's total related party commission expense for the three months ended September 30, 2022, as compared to approximately 12% of the Company's total related party commission expense for three months ended September 30, 2021. During the six months ended September 30, 2022 and 2021, the Company paid commission expense to related parties in the amounts of $353 and $10,527, respectively. Commission expense paid to FFIN Brokerage accounted for approximately 21% and 31% of the Company's total related party commission expense for the six months ended September 30, 2022, and 2021. Interest income earned from related parties is comprised entirely of interest income from FFIN Brokerage, principally interest income from margin lending. During the three months ended September 30, 2022 and 2021, the Company earned interest income from related parties in the amounts of $7,392 and $1,109, respectively. During the six months ended September 30, 2022 and 2021, the Company earned interest income from related parties in the amounts of $10,920 and $1,264, respectively. Interest income generated from FFIN Brokerage accounted for approximately 100% of the Company's total related party interest income for each of the three and six months ended September 30, 2022 , and 2021, and the nine months ended September 30, 2022 and 2021 . During the three months ended September 30, 2022 and 2021, the Company recorded stock-based compensation expense for restricted stock grants to related parties in the amount of $302 and $385, respectively. During the six months ended September 30, 2022, and 2021, the Company recorded stock-based compensation expense for restricted stock grants to related parties in the amount of $683 and $565, respectively. As of September 30, 2022, and March 31, 2022 the Company had cash and cash equivalents held in brokerage accounts of related parties totaling $21,331 and $22,787 respectively. 100% and 100% of these balances were due to Wisdompoint Capital LTD. As of September 30, 2022, and March 31, 2022, the Company had bank commission receivables and receivables from brokerage clients from related parties totaling $64 and $190, respectively. Brokerage and other receivables from related parties result principally from commissions receivable on the brokerage operations of related parties. As of September 30, 2022, and March 31, 2022, the Company had margin lending receivables with related parties totaling $335,992 and $107,649, respectively. 97% and 95% of these balances were due from FFIN Brokerage. As of September 30, 2022, and March 31, 2022, the Company had margin lending payables to related parties, totaling $5,650 and $38,889, respectively. 100% of these balances were due to Wisdompoint Capital LTD, as of September 30, 2022, and March 31, 2022, respectively. As of September 30, 2022, and March 31, 2022, the Company had accounts payable due to a related party totaling $211 and $313, respectively. As of September 30, 2022, and March 31, 2022, the Company had amounts due to the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov related to the acquisition of the two insurance companies, Freedom Life and Freedom Insurance, totaling $23,751 and $15,852, respectively. As of September 30, 2022, and March 31, 2022, the Company had loans received from related party totaling $1,803 and $0, respectively. As of September 30, 2022, and March 31, 2022, the Company had financial liability with related parties totaling $0 and $1,637, respectively. As of September 30, 2022, and March 31, 2022, the Company had customer liabilities to related parties totaling $128,700 and $325,904, respectively. As of September 30, 2022, and March 31, 2022, 52% and 54%, respectively, of these balances were deposits from FFIN Brokerage. As of September 30, 2022, and March 31, 2022, the Company had restricted customer cash deposited in current and brokerage accounts with related parties in the amounts of $246,965 and $222,651. As of September 30, 2022, and March 31, 2022, 83% and 78%, respectively, of these balances were from FFIN Brokerage. During the the three and six months ended September 30, 2022, the Company purchased loans in the aggregate amount of $18,115 and $74,796 and sold back loans totaling $9,713 and $19,545 to FFIN Credit, respectively. In July 2021 the Company sold 23.88% of the outstanding equity interest of Freedom UA to Askar Tashtitov, the Company’s president, for $415 to comply with certain foreign ownership restrictions relating to registered Ukrainian broker-dealers. For additional information regarding this transaction, see Note 1 Description of Business to the condensed consolidated financial statements. Freedom Securities Trading Inc. (formerly known as FFIN Brokerage Services, Inc.) (“FFIN Brokerage”) is owned personally by Timur Turlov and is not part of the FRHC 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. 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 related parties pursuant to standard client account agreements and at standard market rates. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholder's equity | STOCKHOLDERS’ EQUITY During the six months ended September 30, 2022, and 2021, no outstanding non-qualified stock options were exercised. In May 2022, Freedom KZ completed the acquisition of two insurance companies, Freedom Life and Freedom Insurance. These two companies were 100% controlled by the Company’s chief executive officer, chairman and majority shareholder, Timur Turlov. The consideration for closing of the sale was $26,588. The Company is required to make these payments to Timur Turlov by no later than December 31, 2022. During the three and six months ended September 30, 2022, Timur Turlov made a capital contribution to the Company in the amount of $0 and $677, respectively. 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 The Company recorded stock-based compensation expense for restricted stock grants and stock options in the amount of $3,103 and $6,801 during the three and six months ended September 30, 2022. The Company recorded stock-based compensation expense for restricted stock grants and stock options in the amount of $4,561 and $6,722 during the three and six months ended September 30, 2021. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock based compensation | STOCK BASED COMPENSATION During the six months ended September 30, 2022, no restricted shares were awarded to key employees. The compensation expense related to restricted stock grants was $3,103 during the three months ended September 30, 2022, and $4,561 during the three months ended September 30, 2021. As of September 30, 2022 and March 31, 2022, there was $17,094 and $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 3.82 years. The Company has determined the fair value of restricted shares awarded as of grant date, 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 six months ended September 30, 2022: Shares Weighted Outstanding, at March 31, 2022 1,049,500 $ 40,303 Granted — — Vested (224,942) (7,688) Forfeited/cancelled/expired (32,000) (2,678) Outstanding, at September 30, 2022 792,558 $ 29,937 |
LEASES
LEASES | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | LEASESThe Company determines whether a contract contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When readily determinable, 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 Condensed Consolidated Balance Sheets as of September 30, 2022: Classification on Balance Sheet September 30, 2022 Assets Operating lease assets Right-of-use assets $ 13,602 Total lease assets $ 13,602 Liabilities Operating lease liability Lease liability $ 13,348 Total lease liability $ 13,348 The following table presents as of September 30, 2022, the annual maturities of the lease liabilities: Twelve months ending March 31, 2023 $ 2,505 2024 3,555 2025 2,922 2026 2,409 2027 1,681 Thereafter 3,607 Total payments 16,679 Less: amounts representing interest 3,331 Lease liability, net $ 13,348 Weighted average remaining lease term (in months) 23 Weighted average discount rate 12 % Lease commitments for short term operating leases as of September 30, 2022, was approximately $296. The Company’s lease expense for office sp ace was $573 and $1,116 for |
ACQUISITIONS AND DISPOSAL OF SU
ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES | 6 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and disposal of subsidiaries | ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES Acquisition of London-Almaty On September 1, 2022, the Company completed the acquisition of Insurance Company IC "London-Almaty", following receipt of the approval from the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market, by purchasing 100% of its outstanding shares. The Company acquired the London-Almaty to expand its presence in insurance segment. As of September 1, 2022, the date of the acquisition of IC "London-Almaty", the fair value of IC "London-Almaty" was $15,858. The total purchase price was allocated as follows: ASSETS Cash and cash equivalents $ 8,077 Due from banks 2,176 Trading securities 6,178 Value of business acquired 1,677 Assets from insurance activities 3,401 Fixed assets 806 Intangible assets 127 Other assets 1,505 TOTAL ASSETS 23,947 Insurance reserves 6,380 Liabilities from insurance activity 1,429 Other liabilities 280 TOTAL LIABILITIES 8,089 Net assets acquired 15,858 Goodwill 485 Total purchase price $ 16,343 Acquisition of Ticketon As of September 30, 2022, the date of the acquisition of Ticketon by purchasing 100% of its authorized capital. The Company acquired the Ticketon to accelerate our growth in fintech industry. The negative fair value of Ticketon was $172. The total purchase price was allocated as follows: ASSETS Cash and cash equivalents $ 3,029 Brokerage and other receivables 169 Fixed assets 20 Intangible assets 33 Right-of-use asset 63 Other assets 606 TOTAL ASSETS 3,920 Deferred income tax liabilities 34 Lease liability 63 Other liabilities 3,995 TOTAL LIABILITIES 4,092 Net assets acquired (172) Goodwill 3,172 Total purchase price $ 3,000 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | ASSETS AND LIABILITIES HELD FOR SALE In the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022, the Company announced its plans to divest its interests in its Russian securities brokerage and complementary banking operations in Russia ("Russian segment"). On October 17, 2022, the Company entered into an agreement with Maxim Povalishin for the sale of 100% of the share capital of its Russian segment. Maxim Povalishin, the purchaser, is currently the Deputy General Director and a member of the Board of Directors of Freedom RU. The transaction is subject to the approval of the Central Bank of the Russian Federation and is expected to be completed within the next fiscal quarter. The consideration for the purchase of the Russian Subsidiaries consists of the following: • Mr. Povalishin will be assigned the Company’s obligation to Freedom RU under an outstanding deferred payment in the amount of approximately RUB 6.6 billion (at foreign exchange rate on the reporting date approximately $115 million) (the “Deferred Payment Obligation”) which resulted from the purchase by the Company of 90.43% of the share capital of Freedom RU’s Kazakhstan subsidiary Freedom Finance JSC (“Freedom KZ”) (with its subsidiaries) from Freedom RU as part of a corporate restructuring, as a result of which the Company will become the 100% direct owner of Freedom KZ. The agreement for the purchase of Freedom KZ was entered on September 13, 2022. The transaction was approved by regulatory body and is expected to be finalized during November 2022; and • Mr. Povalishin will pay cash in an amount equal to (x) $140 million less (y) the amount of the Deferred Payment Obligation as translated into U.S. dollars at the official exchange rate on the closing date. The Company has classified the Russia business as discontinued operations as of September 30, 2022 and for the three and six months ended September 30, 2022, because the subsidiaries to be disposed of in this transaction met the held for sale criteria as of September 30, 2022. The cumulative translation adjustment attributable to the Russian segment of $642 is included within Accumulated Other Comprehensive Income within the Condensed Consolidated Balance Sheet as of September 30, 2022. In light of the Russia/Ukraine Conflict, and the consequent U.S., UK and EU economic sanctions and Russian countersanctions, we were seeking to sell our interests in our three Russian subsidiaries that resulted in a non-cash $41,464 impairment charge, which was recorded as of September 30, 2022, within the line item Net income from discontinued operation on the Condensed Consolidated Statements of Operations. The Company will continue to evaluate the Russian segment for changes in the valuation until it is sold. The Company has reported separately the discontinued operations in the condensed consolidated financial statements. The major classes of assets and liabilities from discontinued operations included the following: September 30, 2022 March 31, 2022 Cash and cash equivalents $ 712,116 $ 428,480 Restricted cash 19,040 28,406 Trading securities 120,162 122,497 Brokerage and other receivables, net 249,980 210,087 Loans issued 14,464 2,395 Other assets 41,317 33,554 Less: valuation allowance (41,464) — Total assets held for sale $ 1,115,615 $ 825,419 Customer liabilities $ 966,869 $ 701,584 Securities repurchase agreement obligations 30,961 32,469 Debt securities issued 64,647 64,637 Other liabilities 27,403 13,788 Total liabilities held for sale 1,089,880 812,478 The results of operations for discontinued operations consist of the following: For The Three Months Ended For The Six Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Fee and commission income $ 17,395 $ 19,432 $ 48,060 $ 36,450 Net gain/(loss) on trading securities 1,950 (5,164) 13,099 (3,105) Interest income 17,440 5,114 29,861 9,788 Net gain/(loss) on foreign exchange operations 19,989 (3) 20,414 (2,235) TOTAL REVENUE, NET 56,774 19,379 111,434 40,898 Fee and commission expense 2,324 2,159 4,250 4,226 Interest expense 4,261 2,210 10,019 4,459 Operating expense 26,072 17,764 53,540 31,587 Provision for impairment losses 212 50 582 76 Provision for impairment of discontinued operations 41,464 — 41,464 — Other expense/(income), net 743 (25) 779 92 TOTAL EXPENSE 75,076 22,158 110,634 40,440 INCOME/(LOSS) BEFORE INCOME TAX $ (18,302) $ (2,779) $ 800 $ 458 The net cash flows from/(used in) operating and investing activities for discontinued operations consist of the following: For the Six Months Ended September 30, 2022 2021* (Recasted) Cash Flows From Operating Activities Net income from discontinued operations $ (6,080) $ 449 Adjustments to reconcile net income used in operating activities: Depreciation and amortization 1,143 993 Noncash lease expense 3,289 2,453 Change in deferred taxes 6,234 (929) Stock compensation expense 3,220 3,358 Unrealized loss/(gain) on trading securities (20,382) 4,228 Net change in accrued interest 682 (1,203) Provision for impairment of discontinued operations 41,464 — Allowances for receivables 155 — Changes in operating assets and liabilities: Trading securities 81,229 (24,850) Brokerage and other receivables 56,513 (59,162) Other assets 360 (843) Securities sold, not yet purchased – at fair value 244 (24) Customer liabilities (142,647) 81,632 Current income tax liability — (582) Trade payables 93 2,725 Lease liabilities (3,721) (2,603) Other liabilities 7,787 (37) Net cash flows used in operating activities from discontinued operations 29,583 5,605 Cash Flows Used In Investing Activities Purchase of fixed assets (2,560) (1,066) Proceeds from sale of fixed assets 750 — Loans issued (10,263) 595 Net cash flows used in investing activities from discontinued operations (12,073) (471) The following table presents reconciliation of anticipated provision for impairment from sale of net assets held for sale as of disposal date: September 30, 2022 Pre-elimination balance Eliminations Post-elimination balance Cash and cash equivalents $ 712,116 $ — $ 712,116 Restricted cash 19,040 — 19,040 Trading securities 120,162 — 120,162 Brokerage and other receivables, net 249,980 — 249,980 Loans issued 14,464 — 14,464 Other assets 41,363 (46) 41,317 Investment in subsidiaries 114,957 (114,957) — Total assets held for sale $ 1,272,082 $ (115,003) $ 1,157,079 Customer liabilities $ 966,869 $ — $ 966,869 Securities repurchase agreement obligations 30,961 — 30,961 Debt securities issued 64,647 — 64,647 Other liabilities 27,499 (96) 27,403 Total liabilities held for sale $ 1,089,976 $ (96) $ 1,089,880 Net assets held for sale $ 182,106 $ 67,199 Unrealized gain from cumulative translation adjustment (642) Adjusted net assets held for sale $ 181,464 Expected selling price 140,000 Provision for impairment of discontinued operations $ (41,464) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 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 guarantees Unfunded commitments under 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 as of September 30, 2022, and March 31, 2022, were as follows: As of September 30, 2022 As of March 31, 2022 (Recasted) Unfunded commitments under lines of credits and guarantees $ 11,229 $ 11,292 Bank guarantees 3,541 6,384 Total $ 14,770 $ 17,676 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment reporting | SEGMENT REPORTING During the fourth quarter of 2022 fiscal year the Company's CODM restructured the way he views the Company's business from a single operating segment to five geographic regional segments including Central Asia, Europe, United States, Russia and Middle East/Caucasus. The Company has classified the Russia Segment as discontinued operations for the periods presented because the assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of September 30, 2022. The Company's CODM do not review inter-segment revenues as part of Segment reporting. The 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 Operations and Statements of Other Comprehensive Income by its geographic segments. Intercompany balances were eliminated for separate disclosure: Three months ended September 30, 2022 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income (1) $ 19,067 $ 63,040 $ 1,050 $ — $ 83,157 Net gain on trading securities 15,828 (7,210) 387 — 9,005 Net realized gain on investments available for sale 716 — — — 716 Interest income 46,275 10,177 2,547 — 58,999 Insurance underwriting income 26,200 — — — 26,200 Net gain/(loss) on foreign exchange operations 7,601 (2,400) (665) 19 4,555 Net loss on derivative (2,320) — — — (2,320) TOTAL REVENUE, NET 113,367 63,607 3,319 19 180,312 Fee and commission expense 11,812 6,474 144 9 18,439 Interest expense 34,562 2,964 3,337 — 40,863 Insurance claims incurred, net of reinsurance 17,475 — — — 17,475 Operating expense (2) 21,715 10,534 5,093 418 37,760 Provision for impairment losses/(recoveries) 3,732 (1) (5) — 3,726 Other expense/(income), net 94 101 (3) — 192 TOTAL EXPENSE 89,390 20,072 8,566 427 118,455 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 23,977 $ 43,535 $ (5,247) $ (408) $ 61,857 Income tax (expense)/benefit (534) (6,623) (5,472) 10 (12,619) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 23,443 $ 36,912 $ (10,719) $ (398) $ 49,238 Six months ended September 30, 2022 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income (1) $ 28,259 $ 142,160 $ 2,184 $ — $ 172,603 Net gain/(loss) on trading securities 37,417 (22,634) (1,344) — 13,439 Net realized loss on investments available for sale 123 — — — 123 Interest income 85,185 15,388 6,989 — 107,562 Insurance underwriting income 50,440 — — — 50,440 Net gain/(loss) on foreign exchange operations 11,869 (1,830) (899) 8 9,148 Net gain on derivative (1,054) — — — (1,054) TOTAL REVENUE, NET 212,239 133,084 6,930 8 352,261 Fee and commission expense 22,527 18,901 297 29 41,754 Interest expense 66,530 5,660 8,744 — 80,934 Insurance claims incurred, net of reinsurance 34,167 — — — 34,167 Operating expense 42,482 22,099 10,360 818 75,759 Provision for impairment losses/(recoveries) 6,164 (2) (8) — 6,154 Other (income)/expense, net (407) 97 (8) (50) (368) TOTAL EXPENSE 171,463 46,755 19,385 797 238,400 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 40,776 $ 86,329 $ (12,455) $ (789) $ 113,861 Income tax (expense)/benefit (596) (13,846) (7,077) 21 (21,498) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 40,180 $ 72,483 $ (19,532) $ (768) $ 92,363 Three months ended September 30, 2021 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income $ 5,266 $ 86,594 $ 1,165 $ — $ 93,025 Net gain/(loss) on trading securities 2,756 178,951 (104) — 181,603 Net realized loss on investments available for sale (622) — — — (622) Interest income 24,206 2,400 13 — 26,619 Insurance underwriting income 16,022 — — — 16,022 Net gain on foreign exchange operations 1,304 166 38 — 1,508 Net loss on derivative (656) — — — (656) TOTAL REVENUE, NET 48,276 268,111 1,112 — 317,499 Fee and commission expense 2,123 20,360 168 — 22,651 Interest expense 14,490 1,805 421 — 16,716 Insurance claims incurred, net of reinsurance 13,513 — — — 13,513 Operating expense 12,206 4,952 4,583 29 21,770 Provision for impairment losses 978 — — — 978 Other expense/(income), net 794 (8) — — 786 TOTAL EXPENSE 44,104 27,109 5,172 29 76,414 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 4,172 $ 241,002 $ (4,060) $ (29) $ 241,085 Income tax benefit/(expense) 135 (8,152) (24,077) — (32,094) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 4,307 $ 232,850 $ (28,137) $ (29) $ 208,991 Six months ended September 30, 2021 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income $ 11,522 $ 157,484 $ 2,134 $ — $ 171,140 Net gain/(loss) on trading securities 11,698 178,993 (406) — 190,285 Net realized loss on investments available for sale (653) — — — (653) Interest income 45,035 3,762 60 — 48,857 Income from insurance activity 30,098 — — — 30,098 Net gain/(loss) on foreign exchange operations 2,774 (60) 2 — 2,716 Net loss on derivative (715) — — — (715) TOTAL REVENUE, NET 99,759 340,179 1,790 — 441,728 Fee and commission expense 4,654 38,840 350 — 43,844 Interest expense 26,758 3,503 701 — 30,962 Expense from insurance activity 24,809 — — — 24,809 Operating expense 23,081 9,744 8,372 (6) 41,191 Provision for impairment losses 1,233 12 — — 1,245 Other expense, net 800 (5) — — 795 TOTAL EXPENSE 81,335 52,094 9,423 (6) 142,846 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 18,424 $ 288,085 $ (7,633) $ 6 $ 298,882 Income tax benefit/(expense) 22 (14,014) (23,228) — (37,220) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 18,446 $ 274,071 $ (30,861) $ 6 $ 261,662 (1) All trading of U.S. and European exchange traded and OTC securities by all of the Company's securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at Freedom EU. (2) Operating expense includes significant noncash items stock based compensation expenses. The following table summarizes the Company's stock based compensation by its geographic segments: Three Months Ended September 30, Six Months Ended September 30, 2022* 2021* 2022* 2021* Central Asia $ 1,036 $ 1,384 $ 2,138 $ 2,032 U.S. 533 691 1,152 1,045 Europe 135 196 291 288 Middle East/Caucasus — — — — Total stock based compensation $ 1,704 $ 2,271 $ 3,581 $ 3,365 The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure: September 30, 2022 Central Asia Europe U.S. Middle East/Caucasus Held for Sale Total Total assets $ 2,837,687 $ 685,110 $ 143,833 $ 2,120 $ 1,115,615 $ 4,784,365 Total liabilities 2,561,607 373,466 137,716 365 1,089,880 4,163,034 Net assets $ 276,080 $ 311,644 $ 6,117 $ 1,755 $ 25,735 $ 621,331 March 31, 2022 (Recasted) Central Asia Europe U.S. Middle East/Caucasus Held for Sale Total Total assets $ 1,423,529 $ 805,768 $ 172,679 $ 355 $ 825,419 $ 3,227,750 Total liabilities 1,203,473 489,883 175,136 172 812,478 2,681,142 Net assets $ 220,056 $ 315,885 $ (2,457) $ 183 $ 12,941 $ 546,608 Central Asia Segment Central Asia segment comprises Kazakhstan headquarters and operations in Kazakhstan (including the AIFC), Kyrgyzstan, Uzbekistan, Ukraine and Turkey. Recently acquired insurance companies, Freedom Insurance, Freedom Life, and London Almaty, are included within Central Asia segment. Europe Segment Cyprus securities brokerage firm, Freedom EU, oversees Europe segment operations (consisting of operations in Cyprus, the UK, Germany, Spain, Greece, and France). U.S. Segment U.S. segment currently consists of FRHC and our PrimeEx subsidiary. Middle East/Caucasus Segment As of September 30, 2022, our Middle East/Caucasus region consisted of three o ffices, in Azerbaijan, Armenia and the United Arab Emirates, that provide brokerage and investment education services. The Company entered into the Caucasus market during fiscal year 2022 by establishing subsidiaries in Azerbaijan and Armenia, and in April 2022, entered into the Middle East market by establishing a subsidiary in the United Arab Emirates. Russia Segment Russia segment, that was classifies as asset and liabilities held for sales, includes securities brokerage subsidiary Freedom RU and its subsidiaries Freedom Bank RU and Freedom Auto . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the time of filing this quarterly report on Form 10-Q/A with the SEC. During this period the Company did not have any additional material recognizable subsequent events other than as set forth below. On October 19, 2022, Freedom UA's brokerage license was suspended for a period of five years and its assets frozen by the Ukrainian authorities following its inclusion on a sanctions list of the Ukrainian government. As of September 30, 2022, Freedom UA's total assets and total liabilities were $6,909 and $9,970, respectively. The Company believes that the decision to include Freedom UA on such list was erroneous and it is in the process of appealing such decision. On November 11, 2022, the Company has finalized transaction for purchase of 90.43% of the share capital of Freedom KZ (with its subsidiaries) from Freedom RU as part of a corporate restructuring, as a result of which the Company became the 100% direct owner of Freedom KZ. The transaction was finalized after receipt of the regulatory approval in Kazakhstan. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
Accounting principles | The Company's accounting policies and accompanying condensed consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). | |
Basis of presentation and principles of consolidation | The condensed consolidated financial statements present the condensed consolidated accounts of FRHC and its consolidated subsidiaries. In the opinion of management, all normal, recurring adjustments necessary for fair presentation of the condensed consolidated financial statements have been included. | |
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 subordinated financial support from other parties or whose equity holders at risk 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. The carrying amounts of the VIE’s consolidated assets and liabilities are as follows: September 30, 2022 March 31, 2022 Cash and cash equivalents 1,645 134 Restricted cash — 2,843 Trading securities 3,437 2,942 Brokerage and other receivables, net 273 435 Fixed assets, net 803 1,043 Intangible assets, net 147 205 Right-of-use asset 512 905 Other assets 92 127 Total assets 6,909 8,634 Customer liabilities 9,362 8,439 Securities repurchase agreement obligations — 3,267 Trade payables 5 35 Lease liability 538 914 Other liabilities 65 434 Total liabilities 9,970 13,089 | |
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 Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of total revenue, net 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). 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 margin loans, loans issued, trading securities, available-for-sale securities and reverse repurchase agreement obligations is 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 and loans acquired | The Company's loan portfolio is divided into the following portfolio segments: mortgages, uncollateralized bank customer loans, collateralized bank customer loans, car loans and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase real estate, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals and businesses, and retail unsecured banking loans provided to individuals. Collateralized bank customer loans consist of retail collateralized loans provided to individuals. Subordinated loans consist of uncollateralized loans provided to the legal entities to support their businesses, that ranks below other, more senior loans or securities with respect to claims on assets or earnings.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, real wage index, inflation rate and retail trade 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 a component for loans collectively evaluated for impairment. | |
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 Kazakhstan tenge, Russian ruble, euro, U.S. dollar, Ukrainian hryvnia, Uzbekistani sum, Kyrgyzstani som, Azerbaijani manat, British pound sterling, Armenian dram, United Arab Emirates dirham and Turkish lira, 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 quarterly 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 shareholders' equity as "Accumulated other comprehensive loss". | |
Cash and cash equivalents | Cash and cash equivalents are generally comprised of certain highly liquid investments with original maturities of three months or less at the date of purchase. Cash and cash equivalents include those reverse repurchase agreements, where maturity is less than 90 days, and the credit risk of the counterparty is low, which are recorded at the amounts at which the securities were acquired 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 Condensed 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 Condensed Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Condensed 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 the 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 Condensed 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 accumulated other comprehensive (loss)/income is then reclassified to net realized gain/(loss) on investments available-for-sale in the Condensed 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 Condensed 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 Condensed 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. | |
Margin lending | The Company engages in securities financing transactions with and for clients through margin lending. Under these 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 Condensed Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Condensed 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. During the fiscal year ended March 31, 2022, the Company recognized write-off expenses of the client base that was recognized with the acquisition of Zerich in the amount of $3,125 due to economic uncertainty during the Company's fourth fiscal quarter stemming from the Russia/Ukraine Conflict. As of September 30, 2022, there were no write-offs performed. | |
Impairment of goodwill | The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The entity compares the fair value of a reporting unit with its carrying amount. The goodwill impairment charge recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value. If fair value exceeds the carrying amount, no impairment is recorded. | |
Assets and liabilities held for sale | The Company classifies assets and liabilities (the "disposal group") 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 commitment to sell the disposal group in its 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. The Company recorded a provision for impairment of discontinued operations of $41,464 in the three months ended September 30, 2022. A disposal group that represents a strategic shift to the Company or is acquired with the intention to sell is reflected as a discontinued operation on the Condensed 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 Condensed Consolidated Financial Statements and related Notes reflect the securities brokerage and complementary banking operations in Russia as a discontinued operation in second quarter of 2023 fiscal year as the Company has entered into an agreement to divest these operations. The divestment transaction is subject to the approval of the Central Bank of the Russian Federation and and is expected to be completed within the next fiscal quarter. See Note 25 Assets and Liabilities held for sale , for more information on assets held for sale and discontinued 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 penalties arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of September 30, 2022, and March 31, 2022, the Company had no accrued interest or penalties related to uncertain tax positions. The Global Intangible Low-Taxed Income (“GILTI”) provisions of the Tax Cuts and Jobs 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 Condensed Consolidated Balance Sheets as of September 30, 2022, and March 31, 2022, and in its Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2022, and 2021. | |
Financial instruments | 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 Condensed Consolidated Balance Sheets. Refer to Note 23 Leases , to the condensed 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 | |
Insurance and reinsurance receivable | Insurance and reinsurance receivable is recognized when related income is earned and measured on initial recognition at the fair value of the consideration receivable. Subsequent to initial recognition, any insurance and reinsurance receivable is measured at cost net of any allowance for impairment losses. | |
Insurance and reinsurance payable | Payables on insurance business comprise advances received, amounts payable to insured (claims and premium refund payable) and amounts payable to agents and brokers, and advances received from insurers and reinsurers. Payables on reinsurance business comprise net amounts payable to reinsurers. Amounts payable to reinsurers include ceded reinsurance premiums, assumed premium refunds and claims on assumed reinsurance. Insurance and reinsurance payable are accounted for at amortized cost. | |
Unearned premium reserve and claims | Unearned premium is determined by the method of proportion for each contract, as the product of the insurance premium under the contract for the ratio of the expiration of the insurance cover (in days) to the balance sheet date (in days) from the date of recognition of the insurance premium in accounting as income until the end of the insurance coverage. The reinsurer's share in the unearned premium reserve is calculated separately for each insurance (reinsurance) contract and is determined as the ratio of the insurance premium under the reinsurance contract to the insurance premium under the insurance contract multiplied by the unearned premium reserve. Results of insurance activity includes net written insurance premiums reduced by the net change in the unearned premium reserve, commissions recognized from assumed insurance and reinsurance contracts, claims paid net and net change in the loss reserves. Net written insurance premiums represent gross written premiums less premiums ceded to reinsurers. Upon inception of a contract (except for classes of life and annuity insurance), premiums are recorded as written and are earned on a pro rata basis over the term of the related contract coverage. The unearned premium reserve represents the portion of the premiums written relating to the unexpired terms of coverage and is included in the accompanying statement of Condensed Consolidated Balance Sheets. Unearned premium reserve relates to non-life insurance products and, non-annuity insurance products. Claims are expensed to th e Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income as incurred. Loss reserves Non-life and annuity insurance Loss reserves are a summary of estimates of ultimate losses, and include both claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). RBNS is created for existing reported claims not settled at the reporting date. Estimates are made on the basis of information received by the Company during its investigation of insured events. IBNR is estimated by the Company based on its previous history of reported/settled claims using actuarial methods of calculation, which include claim development triangles. Reinsurance assets in IBNR are estimated applying the same actuarial method used in IBNR estimation. Life insurance Not incurred claims reserves (NIC) on life insurance contracts equal the NIC amount for all life insurance contracts valid as at the reporting date. NIC reserve on a separate contract of life insurance, except for the insurance contract with policyholder's participation in investments, is equal to the maximum value of the net level premium reserve and gross-premium reserve. Net level premium reserve is the present value of future benefits (excluding survival benefits) less present value of future net premiums. Gross-premium reserve is present value of benefits, expenses of the Company that are directly related to consideration, settlement, and determination of the benefit amount, operating expenses of the Company related to conducting of the business, less present value of future gross-premiums. Annuity insurance NIC reserve on annuity contracts is the sum of the present value of future benefits, the claims for annuity insurance and administrative expenses on annuity insurance contracts maintenance, less the present value of insurance contributions (in case of lump sum - insurance premium), which the Company is due to receive after the settlement date. The reserves are either based on current assumptions or calculated using the assumptions established at the time the contract was issued, in which case a margin for risk and adverse deviation is generally included. | |
Segment information | Historically, the Company's chief operating decision maker ("CODM"), who is its chief executive officer, viewed the Company as a single operating segment offering financial services to its customers in a single geographic region covering Eurasia . During the fourth quarter of the Company's fiscal year ended March 31, 2022, the CODM restructured the Company's operations into five geographical regions ("segments"). These regions include Central Asia, Europe, the U.S. Middle East/Causcasus and Russia. In order to determine appropriate segment disclosure as stated in ASC 280-10-55-26 the Company followed the steps outlined below: • 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; and | |
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 evaluating the impact that ASU 2016-13 and 2017-12 will have on its consolidated financial statements and related disclosures. 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 does not expect that the ASU 2021-06 will have a significant impact 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 company 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. 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 amendments in this Update apply to all nonpublic entities that issue equity-classified share-based awards and elect the practical expedient in this Update. Thus, ASU 2021-06 will not impact 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, 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. ASU 2022-01 will not have an impact on the Company's 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 write-offs 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 write-offs 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. In June 2022, FASB Issued Accounting Standard Updated No. 2022-03 “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The FASB has issued this standard to (1) clarify the guidance in Topic 820 – Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this Update affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2022-03 will have on its consolidated financial statements and related disclosures. In September 2022, the FASB issued Accounting Standards Update No. 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” to enhance the transparency of supplier finance programs. This requires all entities, which apply those programs in connection with the purchase of goods and services (buyer party), to disclose qualitative and quantitative information about the use of the finance programs to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. Accordingly, ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the impact that ASU 2022-04 will have on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
VIE, consolidated statements | The carrying amounts of the VIE’s consolidated assets and liabilities are as follows: September 30, 2022 March 31, 2022 Cash and cash equivalents 1,645 134 Restricted cash — 2,843 Trading securities 3,437 2,942 Brokerage and other receivables, net 273 435 Fixed assets, net 803 1,043 Intangible assets, net 147 205 Right-of-use asset 512 905 Other assets 92 127 Total assets 6,909 8,634 Customer liabilities 9,362 8,439 Securities repurchase agreement obligations — 3,267 Trade payables 5 35 Lease liability 538 914 Other liabilities 65 434 Total liabilities 9,970 13,089 | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill as of March 31, 2022, and for the 6 months ended September 30, 2022, were as follows: Amount Balance as of March 31, 2022 (Recasted) $ 5,898 Acquisition of London Almaty 485 Acquisition of Ticketon 3,172 Foreign currency translation (43) Balance as of September 30, 2022 $ 9,512 |
RECAST (Tables)
RECAST (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of prior period statements | The previously issued Condensed Consolidated Balance Sheet as of March 31, 2022, and Condensed Consolidated Statement of Operations and Statements of Other Comprehensive Income for the three and six months ended September 30, 2021, have been revised as follows: As of March 31, 2022 As previously reported FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations Recast discontinued operations As recasted ASSETS Cash and cash equivalents $ 625,547 $ 1,427 $ (901) $ 371 $ (82) $ (400,898) $ 225,464 Trading securities 1,203,479 8,875 — 68,520 — (122,497) 1,158,377 Restricted cash 553,680 — — — — (5,730) 547,950 Brokerage and other receivables, net 357,567 173 (34) 60 (20) (210,087) 147,659 Loans issued 94,797 44 — — — (2,395) 92,446 Other assets 25,707 7,244 — 399 — (7,214) 26,136 Fixed assets, net 21,365 182 — 254 — (3,978) 17,823 Right-of-use asset 15,669 532 — 152 — (8,922) 7,431 Deferred income tax assets 12,018 23 — 28 — (11,161) 908 Intangible assets, net 5,791 1,489 — 161 — (2,278) 5,163 Goodwill 5,388 359 — 151 — — 5,898 Available-for-sale securities, at fair value 1 161,363 — — — — 161,364 Insurance contract assets — 3,555 — 2,157 — — 5,712 Assets held for sale — — — — — 825,419 825,419 TOTAL ASSETS $ 2,921,009 $ 185,266 $ (935) $ 72,253 $ (102) $ 50,259 $ 3,227,750 LIABILITIES AND SHAREHOLDERS’ EQUITY Securities repurchase agreement obligations $ 775,178 $ 47,691 $ — $ 49,824 $ — $ (32,469) $ 840,224 Customer liabilities 1,417,937 — (901) — (82) (651,326) 765,628 Trade payables 45,229 — — 21 (20) (147) 45,083 Liabilities from insurance activity — 106,329 — 13,161 — — 119,490 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 15,315 543 — 176 — (8,530) 7,504 Deferred income tax liabilities — — — — — — — Deferred distribution payments 8,534 — — — — — 8,534 Liabilities held for sale — — — — — 812,478 812,478 Other liabilities 19,917 550 (35) 292 — (4,872) 15,852 TOTAL LIABILITIES $ 2,413,334 $ 155,113 $ (936) $ 63,474 $ (102) $ 50,259 $ 2,681,142 Commitments and Contingent Liabilities (Note 26) — — — — — — — 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 9,465 (9,465) 15,577 (15,577) — 59 Additional paid in capital 141,340 — 16,499 — 16,906 — 174,745 Retained earnings 426,563 28,131 (6,666) (4,811) (1,293) — 441,924 Accumulated other comprehensive loss (53,291) (7,443) (368) (1,987) (36) — (63,125) TOTAL FRHC SHAREHOLDERS’ EQUITY $ 514,671 $ 30,153 $ — $ 8,779 $ — $ — $ 553,603 Non-controlling interest (6,996) 1 — — — — (6,995) TOTAL SHAREHOLDERS’ EQUITY $ 507,675 $ 30,154 $ — $ 8,779 $ — $ — $ 546,608 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,921,009 $ 185,267 $ (936) $ 72,253 $ (102) $ 50,259 $ 3,227,750 Three months ended September 30, 2021 As previously reported* FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations Recast discontinued operations As recasted Revenue: Fee and commission income $ 114,344 $ — $ (91) $ 28 $ (77) $ (21,179) $ 93,025 Net gain on trading securities 175,252 329 — 859 — 5,163 181,603 Net realized loss on investments available for sale — (622) — — — — (622) Interest income 22,253 5,513 — 2,221 — (3,368) 26,619 Insurance underwriting income — 12,804 — 3,218 — — 16,022 Net gain on foreign exchange operations 1,622 (106) — (11) — 3 1,508 Net loss on derivative (656) — — — — — (656) TOTAL REVENUE, NET 312,815 17,918 (91) 6,315 (77) (19,381) 317,499 Expense: Fee and commission expense 22,968 1,836 (91) 174 (77) (2,159) 22,651 Interest expense 16,185 1,120 — 1,621 — (2,210) 16,716 Insurance claims incurred, net of reinsurance — 9,748 — 3,765 — — 13,513 Operating expense 36,569 1,336 — 1,630 — (17,765) 21,770 Provision for impairment losses 366 — — 662 — (50) 978 Other expense, net 653 110 — (1) — 24 786 TOTAL EXPENSE 76,741 14,150 (91) 7,851 (77) (22,160) 76,414 INCOME BEFORE INCOME TAX 236,074 3,768 — (1,536) — 2,779 241,085 Income tax expense (31,562) (13) — 10 — — (32,094) INCOME FROM CONTINUING OPERATIONS 204,512 3,755 — (1,526) — 2,779 208,991 Income/(loss) before income tax (expense)/benefit of discontinued operation — — — — — (2,779) (2,779) Income tax (expense)/benefit of discontinued operations — — — — — 529 529 Income from discontinued operation — — — — (2,250) (2,250) NET INCOME $ 204,512 $ 3,755 $ — $ (1,526) $ — $ — $ 206,741 Less: Net loss attributable to non-controlling interest in subsidiary (20) — — — — — (20) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 204,532 $ 3,755 $ — $ (1,526) $ — $ — $ 206,761 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (1,601) — — — — (1,601) Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect — 622 — — — — 622 Foreign currency translation adjustments, net of tax effect 930 21 — 96 — 134 1,181 OTHER COMPREHENSIVE INCOME 930 (958) — 96 — 134 202 COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 205,442 $ 2,797 $ — $ (1,430) $ — $ 134 $ 206,943 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (20) — — — — — (20) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 205,462 $ 2,797 $ — $ (1,430) $ — $ 134 $ 206,963 For the three months ended September 30, 2021, the Company’s EPS as reported was 3.44 for basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 3.51, (0.05), and 3.47 for basic and diluted EPS for continuing operations, discontinued operations, and total EPS, respectively. Six months ended September 30, 2021 As previously reported* FF Life acquisition Elimi-nations FF Insurance acquisition Elimi-nations Recast discontinued operations As recasted Revenue: Fee and commission income $ 210,649 $ — $ (91) $ 88 $ (161) $ (39,345) 171,140 Net gain on trading securities 185,152 600 — 1,429 — 3,104 190,285 Net realized loss on investments available for sale — (653) — — — — (653) Interest income 41,431 10,100 — 4,218 — (6,892) 48,857 Insurance underwriting income — 24,062 — 6,036 — — 30,098 Net gain on foreign exchange operations 434 38 — 10 — 2,234 2,716 Net loss on derivative (715) — — — — — (715) TOTAL REVENUE, NET 436,951 34,147 (91) 11,781 (161) (40,899) 441,728 Expense: Fee and commission expense 44,832 3,128 (91) 362 (161) (4,226) 43,844 Interest expense 30,457 1,998 — 2,966 — (4,459) 30,962 Insurance claims incurred, net of reinsurance — 18,616 — 6,193 — — 24,809 Operating expense 66,888 2,612 — 3,278 — (31,587) 41,191 Provision for impairment losses 659 — — 663 — (77) 1,245 Other expense/(income), net 664 225 — (2) — (92) 795 TOTAL EXPENSE 143,500 26,579 (91) 13,460 (161) (40,441) 142,846 INCOME BEFORE INCOME TAX 293,451 7,568 — (1,679) — (458) 298,882 Income tax expense (37,231) (1) — (7) — — (37,220) INCOME FROM CONTINUING OPERATIONS 256,220 7,567 — (1,686) — (458) 261,662 Income/(loss) before income tax(expense)/benefit of discontinued operation — — — — — 458 458 Income tax (expense)/benefit of discontinued operations — — — — — (537) (9) Income from discontinued operation — — — — — (79) 449 NET INCOME $ 256,220 $ 7,567 $ — $ (1,686) $ — $ — $ 262,111 Less: Net loss attributable to non-controlling interest in subsidiary (72) — — — — — (72) NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 256,292 7,567 — (1,686) — $ — $ 262,183 OTHER COMPREHENSIVE INCOME Change in unrealized gain on investments available-for-sale, net of tax effect — (726) — — — — (726) Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect — 653 — — — — 653 Foreign currency translation adjustments, net of tax effect 4,230 71 — — (98) — 4,203 OTHER COMPREHENSIVE INCOME 4,230 (2) — — (98) — 4,130 COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 260,450 $ 7,565 $ — $ (1,686) $ (98) $ — $ 266,241 Less: Comprehensive loss attributable to non-controlling interest in subsidiary (72) — — — — — (72) COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS 260,522 7,565 — (1,686) (98) — 266,313 For the six months ended September 30, 2021, the Company’s EPS as reported was 4.33 for basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 4.42, 0.01, and 4.43 for basic and diluted EPS for continuing operations, discontinued operations, and total EPS, respectively. *amounts with restatement in fee and commission income and interest income, for more information please see Note 4 Restatement. |
RESTATEMENT (Tables)
RESTATEMENT (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of prior period statements | The following table summarizes the impact of these correction of errors for the periods presented: Six months ended September 30, 2022 As previously reported Correction of errors related to classification of funds received for financing mortgage loans As restated Net cash flows from/(used in) operating activities $ 124,183 $ (149,590) $ (25,407) Net cash flows used in investing activities (323,187) — (323,187) Net cash flows from/(used in) financing activities 746,094 149,590 895,684 Effect of changes in foreign exchange rates on cash and cash equivalents 184,186 — 184,186 NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 731,276 $ — $ 731,276 Six months ended September 30, 2021 As previously reported FF Life and FF Insurance acquisitions Adjustments for discontinued operations As recasted Correction of errors related to the classification of loans issued and bank customer accounts As restated Net cash flows from/(used in) operating activities $ (146,141) $ 2,119 134,938 $ (9,084) $ 29,931 $ 20,847 Net cash flows used in investing activities (7,084) (37,220) — (44,304) (21,948) (66,252) Net cash flows from/(used in) financing activities 99,070 28,909 32,871 160,850 (7,983) 152,867 NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ (36,533) $ (96) $ 167,617 $ 130,988 $ — $ 130,988 The following table summarizes the impact of the correction of errors broken down by continuing and discontinued operations: Six months ended September 30, 2021 As recasted Correction of errors related to the classification of loans issued and bank customer accounts As restated Net cash flows from/(used in) operating activities from continuing operations $ (4,046) $ 19,288 $ 15,242 Net cash flows from/(used in) operating activities from discontinued operations (5,038) 10,643 5,605 Net cash flows (used in) investing activities from continuing operations (43,238) (22,543) (65,781) Net cash flows (used in)/from investing activities from discontinued operations (1,066) 595 (471) Net cash flows from financing activities from continuing operations 178,496 3,255 181,751 Net cash flows used in financing activities from discontinued operations (17,646) (11,238) (28,884) NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ 130,988 $ — $ 130,988 For the three months ended September 30, 2022 As recasted Correction of errors As restated Fee and commission income $ 93,123 $ (9,966) $ 83,157 Insurance underwriting income 26,200 — 26,200 Net realized gain/(loss) on investments available for sale 716 — 716 Net gain on trading securities 9,005 — 9,005 Interest income 49,033 9,966 58,999 Net loss on foreign exchange operations 4,555 — 4,555 Net gain/(loss) on derivative (2,320) — (2,320) TOTAL REVENUE, NET $ 180,312 $ — $ 180,312 For the six months ended September 30, 2022 As recasted Correction of errors As restated Fee and commission income $ 187,483 $ (14,880) $ 172,603 Insurance underwriting income 50,440 — 50,440 Net realized gain/(loss) on investments available for sale 123 — 123 Net gain on trading securities 13,439 — 13,439 Interest income 92,682 14,880 107,562 Net loss on foreign exchange operations 9,148 — 9,148 Net gain/(loss) on derivative (1,054) — (1,054) TOTAL REVENUE, NET $ 352,261 $ — $ 352,261 For the three months ended September 30, 2021 As recasted Correction of errors As restated Fee and commission income 95,215 (2,190) 93,025 Net gain on trading securities 181,603 — 181,603 Net realized gain/(loss) on investments available for sale (622) — (622) Interest income 24,429 2,190 26,619 Insurance underwriting income 16,022 — 16,022 Net gain on foreign exchange operations 1,508 — 1,508 Net loss on derivative (656) — (656) TOTAL REVENUE, NET $ 317,499 $ — $ 317,499 For the six months ended September 30, 2021 As recasted Correction of errors As restated Fee and commission income $ 174,431 $ (3,291) $ 171,140 Insurance underwriting income 30,098 — 30,098 Net realized gain/(loss) on investments available for sale (653) — (653) Net gain on trading securities 190,285 — 190,285 Interest income 45,566 3,291 48,857 Net loss on foreign exchange operations 2,716 — 2,716 Net gain/(loss) on derivative (715) — (715) TOTAL REVENUE, NET $ 441,728 $ — $ 441,728 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of September 30, 2022, and March 31, 2022, cash and cash equivalents consisted of the following: September 30, 2022 March 31, 2022 (Recasted) Cash demand accounts in National Bank (Kazakhstan) $ 478,567 $ 42,517 Cash demand accounts in commercial banks 193,944 70,155 Securities purchased under reverse repurchase agreements 47,049 19,947 Cash demand accounts on brokerage accounts 45,653 71,061 Petty cash in bank vault and on hand 12,033 18,607 Cash in transit 8,301 35 Overnight deposits 2,776 — Cash demand accounts in stock exchanges 1,975 2,828 Cash demand accounts in the Central Depository (Kazakhstan) 92 314 Total cash and cash equivalents $ 790,390 $ 225,464 |
Schedule of repurchase agreements | As of September 30, 2022, and March 31, 2022, the cash and cash equivalents balance included collateralized securities received under reverse repurchase agreements on the terms presented below: September 30, 2022 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Corporate debt 15.81 % $ 25,608 $ — $ 25,608 Non-US sovereign debt 1.38 % 13,746 — 13,746 US sovereign debt 13.99 % 7,444 — 7,444 Corporate equity 12.25 % 228 23 251 Total securities sold under repurchase agreements $ 47,026 $ 23 $ 47,049 March 31, 2022 (Recasted) Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements US sovereign debt 16.38 % $ 9,952 $ — $ 9,952 Non-US sovereign debt 12.51 % 9,786 — 9,786 Corporate equity 16.90 % 152 — 152 Corporate debt 11.88 % 57 — 57 Total securities sold under repurchase agreements $ 19,947 $ — $ 19,947 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Restricted Cash [Abstract] | |
Schedule of restrictions on cash | Restricted cash for the periods ended September 30, 2022, and March 31, 2022, consisted of: September 30, 2022 March 31, 2022 (Recasted) Brokerage customers’ cash $ 428,540 $ 531,032 Deferred distribution payments 8,534 8,534 Guaranty deposits 2,956 5,540 Restricted bank accounts — 2,844 Total restricted cash $ 440,030 $ 547,950 |
TRADING AND AVAILABLE-FOR-SAL_2
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE (Tables) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | ||
Schedule of trading and available-for-sale securities | As of September 30, 2022, and March 31, 2022, trading and available-for-sale securities consisted of: September 30, 2022 March 31, 2022 (Recasted) Corporate debt $ 666,137 $ 712,133 Non-U.S. sovereign debt 634,056 360,570 Corporate equity 32,522 72,354 U.S. sovereign debt 23,883 10,435 Exchange traded notes 2,946 2,884 Total trading securities $ 1,359,544 $ 1,158,377 September 30, 2022 March 31, 2022 (Recasted) Corporate debt $ 155,529 $ 145,836 Non-U.S. sovereign debt 8,293 12,997 U.S. sovereign debt 4,352 2,530 Corporate equity 1 1 Total available-for-sale securities, at fair value $ 168,175 $ 161,364 | |
Schedule of maturity of available for sale securities | The following tables present maturity analysis for available-for-sale securities as of September 30, 2022, and March 31, 2022: September 30, 2022 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Non-US sovereign debt — 430 850 7,013 8,293 Corporate debt 50,533 53,456 49,411 2,129 155,529 US sovereign debt — 1,389 1,694 1,269 4,352 Corporate equity — — — 1 1 Total available-for-sale securities, at fair value $ 50,533 $ 55,275 $ 51,955 $ 10,412 $ 168,175 March 31, 2022 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Non-US sovereign debt 1,692 864 1,086 9,355 12,997 Corporate debt 69,364 50,155 26,284 33 145,836 US sovereign debt — — — 2,530 2,530 Corporate equity — — — 1 1 Total available-for-sale securities, at fair value $ 71,056 $ 51,019 $ 27,370 $ 11,919 $ 161,364 | |
Schedule of present securities assets at fair value | The following tables present securities assets in the Сondensed Сonsolidated Balance Sheets or disclosed in the Notes to the condensed consolidated financial statements at fair value on a recurring basis as of September 30, 2022, and March 31, 2022: Weighted Average Total Fair Value Measurements as of September 30, 2022 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Corporate debt 10.90 % $ 666,137 $ 622,933 $ 42,689 $ 515 Non-U.S. sovereign debt 10.90 % 634,056 421,301 209,418 3,337 Corporate equity — % 32,522 19,986 12,213 323 U.S. sovereign debt 4.32 % 23,883 20,997 2,886 — Exchange traded notes — % 2,946 2,465 481 — Total trading securities $ 1,359,544 $ 1,087,682 $ 267,687 $ 4,175 Corporate debt 12.20 % $ 155,529 $ 147,582 $ 7,947 $ — Non-US sovereign debt 5.90 % 8,293 7,661 632 — US sovereign debt 4.05 % 4,352 3,510 842 — Corporate equity — % 1 — — 1 Total available-for-sale securities, at fair value $ 168,175 $ 158,753 $ 9,421 $ 1 Weighted Average Interest Rate Total Fair Value Measurements as of March 31, 2022 (Recasted) using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Corporate debt 9.09 % $ 712,133 $ 711,538 $ — $ 595 Non-U.S. sovereign debt 13.15 % 360,571 352,275 — 8,296 Corporate equity — 72,354 71,827 276 251 U.S. sovereign debt 2.35 % 10,435 10,435 — — Exchange traded notes — 2,884 2,884 — — Total trading securities $ 1,158,377 $ 1,148,959 $ 276 $ 9,142 Corporate debt 11.09 % $ 145,836 $ 145,836 $ — $ — Non-U.S. sovereign debt 5.51 % 12,997 12,551 — 446 U.S. sovereign debt 2.17 % 2,530 2,530 — — Corporate equity — 1 — — 1 Total available-for-sale securities, at fair value $ 161,364 $ 160,917 $ — $ 447 | |
Schedule of valuation techniques and significant level 3 inputs | The tables below present the valuation techniques and significant level 3 inputs used in the valuation as of September 30, 2022, and March 31, 2022. The tables are not intended to be all inclusive, but instead capture the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of September 30, 2022 Significant Unobservable Inputs % Non-US sovereign debt DCF $ 3,337 Discount rate 48.8% Estimated number of years 11 years Corporate debt DCF 515 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 323 Discount rate 58.8% Estimated number of years 9 years Total $ 4,175 Type Valuation Technique FV as of March 31, 2022 Significant Unobservable Inputs % 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 Corporate debt DCF 595 Discount rate 45.0% Estimated number of years 3 months Corporate equity DCF 251 Discount rate 20.0% Estimated number of years 9 years Total $ 9,142 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the six months ended September 30, 2022, and the year ended March 31, 2022: Trading securities Available-for-sale securities Balance as of March 31, 2022 (Recasted) $ 9,142 $ 1 Purchase of investments that use Level 3 inputs 1,750 446 Reclassification to level 2 (1,267) — Sale (4,716) — Revaluation of investments that use Level 3 inputs (160) — Translation difference (574) — Balance as of September 30, 2022 (Recasted) $ 4,175 $ 447 Balance as of March 31, 2021 (Recasted) $ 19,032 $ 1 Reclassification to level 3 682 — Reclassification to level 1 (18,370) — Purchase of investments that use Level 3 inputs 10,812 — Revaluation of investments that use Level 3 inputs (3,014) — Balance as of March 31, 2022 (Recasted) $ 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 September 30, 2022, and March 31, 2022: September 30, 2022 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 152,826 $ (402) $ 3,105 $ 155,529 2022 - 2042 Non-US sovereign debt 10,002 — (1,709) 8,293 2024 - indefinite U.S. sovereign debt 5,035 — (683) 4,352 2024 - 2044 Corporate equity 1 — — 1 not applicable Total available-for-sale securities, at fair value $ 167,864 $ (402) $ 713 $ 168,175 March 31, 2022 (Recasted) Assets measured at amortized cost Unrealized gain/(loss) accumulated in other comprehensive Assets Maturity Date Corporate debt $ 146,111 $ (275) $ 145,836 2022 - 2035 Non-U.S. sovereign debt 13,784 (787) 12,997 2022 - indefinite U.S. sovereign debt 2,912 (382) 2,530 2044 Corporate equity 1 — 1 not applicable Total available-for-sale securities, at fair value $ 162,808 $ (1,444) $ 161,364 |
BROKERAGE AND OTHER RECEIVABL_2
BROKERAGE AND OTHER RECEIVABLES, NET (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of brokerage and other receivables | Brokerage and other receivables as of September 30, 2022, and March 31, 2022, consisted of: September 30, 2022 March 31, 2022 (Recasted) Margin lending receivables $ 399,857 $ 138,983 Receivables from brokerage clients 4,377 4,386 Long-term installments receivables 1,287 1,367 Receivable from sale of securities 866 884 Bonds coupon receivable 636 — Bank commissions receivable 499 598 Receivable for underwriting and market-making services 324 296 Dividends accrued 6 45 Other receivables 2,913 3,207 Allowance for receivables (2,596) (2,107) Total brokerage and other receivables, net $ 408,169 $ 147,659 |
LOAN ISSUED (Tables)
LOAN ISSUED (Tables) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Schedule of loans issued | Loans issued as of September 30, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans $ 249,133 October, 2022 - September, 2047 9.16 % $ 250,228 KZT Uncollateralized bank customer loans 83,475 October, 2022 - September, 2042 18.85 % — KZT Car loans 11,531 October, 2022 - October, 2029 26.76 % 11,738 KZT Collateralized Bank customer loans 6,840 May, 2023 - September, 2023 1.55 % 6,840 KZT Subordinated loans 5,122 December, 2022-April, 2024 4.89 % — USD Subordinated loans 1,013 September, 2029 12.00 % — UAH Loans issued to policyholders 103 November, 2022 - June, 2023 14.55 % 180 KZT Other 140 May, 2022 - May, 2027 2.00 % — EUR Total loans issued $ 357,357 | Loans issued as of March 31, 2022, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans $ 51,924 April 2022 - March 2047 11.86 % 52,134 KZT Uncollateralized bank customer loans 34,067 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 Loans to policyholders 43 July 2022 - March 2023 12.02 % 284 KZT Total loans issued (recasted) $ 92,446 |
SECURITIES REPURCHASE AGREEME_2
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of securities under repurchase agreement obligations | As of September 30, 2022, and March 31, 2022, trading securities included collateralized securities subject to repurchase agreements as described in the following table: September 30, 2022 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Corporate debt 14.48 % $ 508,658 $ 6,286 $ 514,944 Non-US sovereign debt 13.94 % 464,858 — 464,858 US sovereign debt 0.80 % 1,388 — 1,388 Total securities sold under repurchase agreements $ 974,904 $ 6,286 $ 981,190 March 31, 2022 (Recasted) Interest rate and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Corporate debt 11.96 % $ 609,405 $ 142 $ 609,547 Non-US sovereign debt 10.85 % 222,893 — 222,893 US sovereign debt 0.77 % 7,396 — 7,396 Corporate equity 14.00 % 388 — 388 Total securities sold under repurchase agreements $ 840,082 $ 142 $ 840,224 |
CUSTOMER LIABILITIES (Tables)
CUSTOMER LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Contract with Customer, Liability [Abstract] | |
Schedule of customer liabilities | The Company recognizes customer liabilities associated with funds held by its brokerage and bank customers. As of September 30, 2022, and March 31, 2022 , customer liabilities consisted of: September 30, 2022 March 31, 2022 (Recasted) Brokerage customers $ 847,517 $ 519,344 Banking customers 719,941 246,284 Total customer liabilities $ 1,567,458 $ 765,628 |
TRADE PAYABLES (Tables)
TRADE PAYABLES (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | As of September 30, 2022, and March 31, 2022 , trade payables of the Company was comprised of the following: September 30, 2022 March 31, 2022 (Recasted) Margin lending payable $ 67,966 $ 39,250 Trade payable for securities operations 448 462 Payables to suppliers of goods and services 18 4,462 Other 656 909 Total trade payables $ 69,088 $ 45,083 |
SECURITIES SOLD, NOT YET PURC_2
SECURITIES SOLD, NOT YET PURCHASED AT FAIR VALUE (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities sold, not yet purchased | The following table provides a reconciliation of the beginning and ending balances for securities sold, not yet purchased - at fair value by the Company, as of September 30, 2022, and March 31, 2022: Total Balance as of March 31, 2021 (Recasted) $ 8,569 Short sales 7,055 Repurchase (346) Net gain on trading securities (1,413) Balance as of March 31, 2022 (Recasted) $ 13,865 Balance as of March 31, 2022 (Recasted) $ 13,865 Short sales 410 Repurchase (7,665) Net loss on trading securities 766 Balance as of September 30, 2022 $ 7,376 |
LOANS RECEIVED (Tables)
LOANS RECEIVED (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of loans received | As of September 30, 2022, and March 31, 2022, loans received by the Company included: Company that received loan Lender September 30, 2022 March 31, 2022 Interest Rate Term Maturity dates (Recasted) Freedom Holding Corp. Non-Bank $ 3,622 $ 3,538 5 % 26 months 12/31/2022 Freedom Global Non-Bank 1,803 — 3 % 6 months 12/27/2022 Total loans received $ 5,425 $ 3,538 |
DEBT SECURITIES ISSUED (Tables)
DEBT SECURITIES ISSUED (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Debt Securities [Abstract] | |
Schedule of outstanding debt securities of the company | As of September 30, 2022, and March 31, 2022, outstanding debt securities of the Company included the following: Debt securities issued by: September 30, 2022 March 31, 2022 (Recasted) Freedom SPC $ 30,184 $ 13,203 Freedom Holding Corp. 20,500 20,499 Accrued interest 1,114 688 Total debt securities issued $ 51,798 $ 34,390 |
INSURANCE CONTRACTS ASSETS AN_2
INSURANCE CONTRACTS ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Insurance [Abstract] | |
Insurance and reinsurance receivables | As of September 30, 2022, and March 31, 2022, insurance and reinsurance receivables of the Company was comprised of the following: September 30, 2022 March 31, 2022 Assets: (Recasted) Amounts due from policyholders $ 6,061 $ 3,500 Claims receivable from reinsurance 993 769 Amounts due from reinsured 61 23 Less provision for impairment losses (880) (343) Insurance and reinsurance receivables: 6,235 3,949 Unearned premium reserve, reinsurers’ share 4,714 143 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 1,763 1,620 Total $ 12,712 $ 5,712 |
Insurance and reinsurance payables | As of September 30, 2022, and March 31, 2022, insurance and reinsurance payable of the Company was comprised of the following: September 30, 2022 March 31, 2022 Liabilities: (Recasted) Amounts payable to reinsurers $ 2,109 $ 402 Amounts payable to insured 1,768 685 Amounts payable to agents and brokers 734 1,981 Insurance and reinsurance payables: 4,611 3,068 Unearned premium reserve 31,535 17,985 Reserves for claims and claims’ adjustment expenses 113,931 98,437 Total $ 150,077 $ 119,490 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net gain on trading securities | During the three and six months ended September 30, 2022, and September 30, 2021, net gain on trading securities was comprised of: Three Months Ended Three Months Ended (Restated) (Restated) Net gain recognized during the period on trading securities sold during the period $ 3,498 $ 36,395 Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 5,507 145,208 Net gain recognized during the period on trading securities $ 9,005 $ 181,603 Six Months Ended Six Months Ended (Restated) (Restated) Net (loss)/gain recognized during the period on trading securities sold during the period $ (8,232) $ 41,966 Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 21,671 148,319 Net gain recognized during the period on trading securities $ 13,439 $ 190,285 |
FEE AND COMMISSION INCOME (Tabl
FEE AND COMMISSION INCOME (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Disclosure of fee and commission income | During the three and six months ended September 30, 2022, and September 30, 2021, fee and commission income was comprised of: Three months ended September 30, 2022 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 11,512 $ 62,781 $ 1,050 $ — $ 75,343 Bank services 5,779 — — — 5,779 Underwriting and market-making services 1,587 — — — 1,587 Other fee and commission income 189 259 — — 448 Total fee and commission income $ 19,067 $ 63,040 $ 1,050 $ — $ 83,157 Six months ended September 30, 2022 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 15,115 $ 141,644 $ 2,184 $ — $ 158,943 Bank services 9,592 — — — 9,592 Underwriting and market-making services 3,230 — — — 3,230 Other fee and commission income 322 516 — — 838 Total fee and commission income $ 28,259 $ 142,160 $ 2,184 $ — $ 172,603 Three months ended September 30, 2021 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 2,091 $ 86,057 $ 1,165 $ — $ 89,313 Bank services 1,029 — — — 1,029 Underwriting and market-making services 1,780 — — — 1,780 Other fee and commission income 366 537 — — 903 Total fee and commission income $ 5,266 $ 86,594 $ 1,165 $ — $ 93,025 Six months ended September 30, 2021 (Restated) Central Asia Europe U.S. Middle East/Caucasus Total Brokerage services $ 3,652 $ 156,762 $ 2,134 $ — $ 162,548 Bank services 1,733 — — — 1,733 Underwriting and market-making services 4,004 — — — 4,004 Other fee and commission income 2,133 722 — — 2,855 Total fee and commission income $ 11,522 $ 157,484 $ 2,134 $ — $ 171,140 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of fair value of restricted shares awarded using the monte carlo valuation model | The Company has determined the fair value of restricted shares awarded as of grant date, 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 the activity of the company's restricted stock outstanding | The table below summarizes the activity for the Company’s restricted stock outstanding during the six months ended September 30, 2022: Shares Weighted Outstanding, at March 31, 2022 1,049,500 $ 40,303 Granted — — Vested (224,942) (7,688) Forfeited/cancelled/expired (32,000) (2,678) Outstanding, at September 30, 2022 792,558 $ 29,937 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Sep. 30, 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 Condensed Consolidated Balance Sheets as of September 30, 2022: Classification on Balance Sheet September 30, 2022 Assets Operating lease assets Right-of-use assets $ 13,602 Total lease assets $ 13,602 Liabilities Operating lease liability Lease liability $ 13,348 Total lease liability $ 13,348 |
Disclosure of lease obligations | The following table presents as of September 30, 2022, the annual maturities of the lease liabilities: Twelve months ending March 31, 2023 $ 2,505 2024 3,555 2025 2,922 2026 2,409 2027 1,681 Thereafter 3,607 Total payments 16,679 Less: amounts representing interest 3,331 Lease liability, net $ 13,348 Weighted average remaining lease term (in months) 23 Weighted average discount rate 12 % |
ACQUISITIONS AND DISPOSAL OF _2
ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | As of September 1, 2022, the date of the acquisition of IC "London-Almaty", the fair value of IC "London-Almaty" was $15,858. The total purchase price was allocated as follows: ASSETS Cash and cash equivalents $ 8,077 Due from banks 2,176 Trading securities 6,178 Value of business acquired 1,677 Assets from insurance activities 3,401 Fixed assets 806 Intangible assets 127 Other assets 1,505 TOTAL ASSETS 23,947 Insurance reserves 6,380 Liabilities from insurance activity 1,429 Other liabilities 280 TOTAL LIABILITIES 8,089 Net assets acquired 15,858 Goodwill 485 Total purchase price $ 16,343 As of September 30, 2022, the date of the acquisition of Ticketon by purchasing 100% of its authorized capital. The Company acquired the Ticketon to accelerate our growth in fintech industry. The negative fair value of Ticketon was $172. The total purchase price was allocated as follows: ASSETS Cash and cash equivalents $ 3,029 Brokerage and other receivables 169 Fixed assets 20 Intangible assets 33 Right-of-use asset 63 Other assets 606 TOTAL ASSETS 3,920 Deferred income tax liabilities 34 Lease liability 63 Other liabilities 3,995 TOTAL LIABILITIES 4,092 Net assets acquired (172) Goodwill 3,172 Total purchase price $ 3,000 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, including discontinued operations | The major classes of assets and liabilities from discontinued operations included the following: September 30, 2022 March 31, 2022 Cash and cash equivalents $ 712,116 $ 428,480 Restricted cash 19,040 28,406 Trading securities 120,162 122,497 Brokerage and other receivables, net 249,980 210,087 Loans issued 14,464 2,395 Other assets 41,317 33,554 Less: valuation allowance (41,464) — Total assets held for sale $ 1,115,615 $ 825,419 Customer liabilities $ 966,869 $ 701,584 Securities repurchase agreement obligations 30,961 32,469 Debt securities issued 64,647 64,637 Other liabilities 27,403 13,788 Total liabilities held for sale 1,089,880 812,478 The results of operations for discontinued operations consist of the following: For The Three Months Ended For The Six Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Fee and commission income $ 17,395 $ 19,432 $ 48,060 $ 36,450 Net gain/(loss) on trading securities 1,950 (5,164) 13,099 (3,105) Interest income 17,440 5,114 29,861 9,788 Net gain/(loss) on foreign exchange operations 19,989 (3) 20,414 (2,235) TOTAL REVENUE, NET 56,774 19,379 111,434 40,898 Fee and commission expense 2,324 2,159 4,250 4,226 Interest expense 4,261 2,210 10,019 4,459 Operating expense 26,072 17,764 53,540 31,587 Provision for impairment losses 212 50 582 76 Provision for impairment of discontinued operations 41,464 — 41,464 — Other expense/(income), net 743 (25) 779 92 TOTAL EXPENSE 75,076 22,158 110,634 40,440 INCOME/(LOSS) BEFORE INCOME TAX $ (18,302) $ (2,779) $ 800 $ 458 The net cash flows from/(used in) operating and investing activities for discontinued operations consist of the following: For the Six Months Ended September 30, 2022 2021* (Recasted) Cash Flows From Operating Activities Net income from discontinued operations $ (6,080) $ 449 Adjustments to reconcile net income used in operating activities: Depreciation and amortization 1,143 993 Noncash lease expense 3,289 2,453 Change in deferred taxes 6,234 (929) Stock compensation expense 3,220 3,358 Unrealized loss/(gain) on trading securities (20,382) 4,228 Net change in accrued interest 682 (1,203) Provision for impairment of discontinued operations 41,464 — Allowances for receivables 155 — Changes in operating assets and liabilities: Trading securities 81,229 (24,850) Brokerage and other receivables 56,513 (59,162) Other assets 360 (843) Securities sold, not yet purchased – at fair value 244 (24) Customer liabilities (142,647) 81,632 Current income tax liability — (582) Trade payables 93 2,725 Lease liabilities (3,721) (2,603) Other liabilities 7,787 (37) Net cash flows used in operating activities from discontinued operations 29,583 5,605 Cash Flows Used In Investing Activities Purchase of fixed assets (2,560) (1,066) Proceeds from sale of fixed assets 750 — Loans issued (10,263) 595 Net cash flows used in investing activities from discontinued operations (12,073) (471) The following table presents reconciliation of anticipated provision for impairment from sale of net assets held for sale as of disposal date: September 30, 2022 Pre-elimination balance Eliminations Post-elimination balance Cash and cash equivalents $ 712,116 $ — $ 712,116 Restricted cash 19,040 — 19,040 Trading securities 120,162 — 120,162 Brokerage and other receivables, net 249,980 — 249,980 Loans issued 14,464 — 14,464 Other assets 41,363 (46) 41,317 Investment in subsidiaries 114,957 (114,957) — Total assets held for sale $ 1,272,082 $ (115,003) $ 1,157,079 Customer liabilities $ 966,869 $ — $ 966,869 Securities repurchase agreement obligations 30,961 — 30,961 Debt securities issued 64,647 — 64,647 Other liabilities 27,499 (96) 27,403 Total liabilities held for sale $ 1,089,976 $ (96) $ 1,089,880 Net assets held for sale $ 182,106 $ 67,199 Unrealized gain from cumulative translation adjustment (642) Adjusted net assets held for sale $ 181,464 Expected selling price 140,000 Provision for impairment of discontinued operations $ (41,464) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Total lending related commitments outstanding as of September 30, 2022, and March 31, 2022, were as follows: As of September 30, 2022 As of March 31, 2022 (Recasted) Unfunded commitments under lines of credits and guarantees $ 11,229 $ 11,292 Bank guarantees 3,541 6,384 Total $ 14,770 $ 17,676 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables summarize the Company's Statement of Operations and Statements of Other Comprehensive Income by its geographic segments. Intercompany balances were eliminated for separate disclosure: Three months ended September 30, 2022 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income (1) $ 19,067 $ 63,040 $ 1,050 $ — $ 83,157 Net gain on trading securities 15,828 (7,210) 387 — 9,005 Net realized gain on investments available for sale 716 — — — 716 Interest income 46,275 10,177 2,547 — 58,999 Insurance underwriting income 26,200 — — — 26,200 Net gain/(loss) on foreign exchange operations 7,601 (2,400) (665) 19 4,555 Net loss on derivative (2,320) — — — (2,320) TOTAL REVENUE, NET 113,367 63,607 3,319 19 180,312 Fee and commission expense 11,812 6,474 144 9 18,439 Interest expense 34,562 2,964 3,337 — 40,863 Insurance claims incurred, net of reinsurance 17,475 — — — 17,475 Operating expense (2) 21,715 10,534 5,093 418 37,760 Provision for impairment losses/(recoveries) 3,732 (1) (5) — 3,726 Other expense/(income), net 94 101 (3) — 192 TOTAL EXPENSE 89,390 20,072 8,566 427 118,455 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 23,977 $ 43,535 $ (5,247) $ (408) $ 61,857 Income tax (expense)/benefit (534) (6,623) (5,472) 10 (12,619) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 23,443 $ 36,912 $ (10,719) $ (398) $ 49,238 Six months ended September 30, 2022 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income (1) $ 28,259 $ 142,160 $ 2,184 $ — $ 172,603 Net gain/(loss) on trading securities 37,417 (22,634) (1,344) — 13,439 Net realized loss on investments available for sale 123 — — — 123 Interest income 85,185 15,388 6,989 — 107,562 Insurance underwriting income 50,440 — — — 50,440 Net gain/(loss) on foreign exchange operations 11,869 (1,830) (899) 8 9,148 Net gain on derivative (1,054) — — — (1,054) TOTAL REVENUE, NET 212,239 133,084 6,930 8 352,261 Fee and commission expense 22,527 18,901 297 29 41,754 Interest expense 66,530 5,660 8,744 — 80,934 Insurance claims incurred, net of reinsurance 34,167 — — — 34,167 Operating expense 42,482 22,099 10,360 818 75,759 Provision for impairment losses/(recoveries) 6,164 (2) (8) — 6,154 Other (income)/expense, net (407) 97 (8) (50) (368) TOTAL EXPENSE 171,463 46,755 19,385 797 238,400 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 40,776 $ 86,329 $ (12,455) $ (789) $ 113,861 Income tax (expense)/benefit (596) (13,846) (7,077) 21 (21,498) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 40,180 $ 72,483 $ (19,532) $ (768) $ 92,363 Three months ended September 30, 2021 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income $ 5,266 $ 86,594 $ 1,165 $ — $ 93,025 Net gain/(loss) on trading securities 2,756 178,951 (104) — 181,603 Net realized loss on investments available for sale (622) — — — (622) Interest income 24,206 2,400 13 — 26,619 Insurance underwriting income 16,022 — — — 16,022 Net gain on foreign exchange operations 1,304 166 38 — 1,508 Net loss on derivative (656) — — — (656) TOTAL REVENUE, NET 48,276 268,111 1,112 — 317,499 Fee and commission expense 2,123 20,360 168 — 22,651 Interest expense 14,490 1,805 421 — 16,716 Insurance claims incurred, net of reinsurance 13,513 — — — 13,513 Operating expense 12,206 4,952 4,583 29 21,770 Provision for impairment losses 978 — — — 978 Other expense/(income), net 794 (8) — — 786 TOTAL EXPENSE 44,104 27,109 5,172 29 76,414 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 4,172 $ 241,002 $ (4,060) $ (29) $ 241,085 Income tax benefit/(expense) 135 (8,152) (24,077) — (32,094) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 4,307 $ 232,850 $ (28,137) $ (29) $ 208,991 Six months ended September 30, 2021 (Restated) STATEMENTS OF OPERATIONS Central Asia Europe U.S. Middle East/Caucasus Total Fee and commission income $ 11,522 $ 157,484 $ 2,134 $ — $ 171,140 Net gain/(loss) on trading securities 11,698 178,993 (406) — 190,285 Net realized loss on investments available for sale (653) — — — (653) Interest income 45,035 3,762 60 — 48,857 Income from insurance activity 30,098 — — — 30,098 Net gain/(loss) on foreign exchange operations 2,774 (60) 2 — 2,716 Net loss on derivative (715) — — — (715) TOTAL REVENUE, NET 99,759 340,179 1,790 — 441,728 Fee and commission expense 4,654 38,840 350 — 43,844 Interest expense 26,758 3,503 701 — 30,962 Expense from insurance activity 24,809 — — — 24,809 Operating expense 23,081 9,744 8,372 (6) 41,191 Provision for impairment losses 1,233 12 — — 1,245 Other expense, net 800 (5) — — 795 TOTAL EXPENSE 81,335 52,094 9,423 (6) 142,846 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 18,424 $ 288,085 $ (7,633) $ 6 $ 298,882 Income tax benefit/(expense) 22 (14,014) (23,228) — (37,220) NET INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 18,446 $ 274,071 $ (30,861) $ 6 $ 261,662 (1) All trading of U.S. and European exchange traded and OTC securities by all of the Company's securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at Freedom EU. (2) Operating expense includes significant noncash items stock based compensation expenses. The following table summarizes the Company's stock based compensation by its geographic segments: Three Months Ended September 30, Six Months Ended September 30, 2022* 2021* 2022* 2021* Central Asia $ 1,036 $ 1,384 $ 2,138 $ 2,032 U.S. 533 691 1,152 1,045 Europe 135 196 291 288 Middle East/Caucasus — — — — Total stock based compensation $ 1,704 $ 2,271 $ 3,581 $ 3,365 The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure: September 30, 2022 Central Asia Europe U.S. Middle East/Caucasus Held for Sale Total Total assets $ 2,837,687 $ 685,110 $ 143,833 $ 2,120 $ 1,115,615 $ 4,784,365 Total liabilities 2,561,607 373,466 137,716 365 1,089,880 4,163,034 Net assets $ 276,080 $ 311,644 $ 6,117 $ 1,755 $ 25,735 $ 621,331 March 31, 2022 (Recasted) Central Asia Europe U.S. Middle East/Caucasus Held for Sale Total Total assets $ 1,423,529 $ 805,768 $ 172,679 $ 355 $ 825,419 $ 3,227,750 Total liabilities 1,203,473 489,883 175,136 172 812,478 2,681,142 Net assets $ 220,056 $ 315,885 $ (2,457) $ 183 $ 12,941 $ 546,608 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | 1 Months Ended | ||
Jul. 31, 2021 | Sep. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Percent of net profits of Freedom UA after tax company is entitled to receive (in percent) | 90% | ||
Ownership interest sold during the period | 23.88% | ||
LLC Freedom Finance Ukraine | |||
Related Party Transaction [Line Items] | |||
Ownership percentage, non-controlling interest | 9% | 9% | 32.90% |
Ownership percentage, controlling interest | 91% | ||
Ownership interest sold during the period | 23.90% | ||
UX | |||
Related Party Transaction [Line Items] | |||
Ownership percentage, non-controlling interest | 24.30% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Mar. 31, 2022 | ||
Property, Plant and Equipment [Line Items] | |||
Impairment of intangible assets | $ 3,125 | ||
Goodwill | $ 9,512 | 5,898 | [1] |
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 | 65 years | ||
[1]* Please see Note 3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of VIE’s consolidated assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Cash and cash equivalents | $ 790,390 | $ 225,464 | [1] |
Restricted cash | 440,030 | 547,950 | [1] |
Trading securities | 1,359,544 | 1,158,377 | [1] |
Brokerage and other receivables, net | 408,169 | 147,659 | [1] |
Fixed assets, net | 36,857 | 17,823 | [1] |
Intangible assets, net | 7,687 | 5,163 | [1] |
Right-of-use asset | 13,602 | 7,431 | [1] |
Other assets | 62,042 | 26,136 | [1] |
TOTAL ASSETS | 4,784,365 | 3,227,750 | [1] |
Customer liabilities | 1,567,458 | 765,628 | [1] |
Securities repurchase agreement obligations | 981,190 | 840,224 | [1] |
Trade payables | 69,088 | 45,083 | [1] |
Lease liability | 13,348 | 7,504 | [1] |
Other liabilities | 170,078 | 15,852 | [1] |
TOTAL LIABILITIES | 4,163,034 | 2,681,142 | [1] |
Variable interest entity, primary beneficiary | |||
Cash and cash equivalents | 1,645 | 134 | |
Restricted cash | 0 | 2,843 | |
Trading securities | 3,437 | 2,942 | |
Brokerage and other receivables, net | 273 | 435 | |
Fixed assets, net | 803 | 1,043 | |
Intangible assets, net | 147 | 205 | |
Right-of-use asset | 512 | 905 | |
Other assets | 92 | 127 | |
TOTAL ASSETS | 6,909 | 8,634 | |
Customer liabilities | 9,362 | 8,439 | |
Securities repurchase agreement obligations | 0 | 3,267 | |
Trade payables | 5 | 35 | |
Lease liability | 538 | 914 | |
Other liabilities | 65 | 434 | |
TOTAL LIABILITIES | $ 9,970 | $ 13,089 | |
[1]* Please see Note 3 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of changes in the carrying amount of goodwill (Details) $ in Thousands | 6 Months Ended | |
Sep. 30, 2022 USD ($) | ||
Goodwill [Roll Forward] | ||
Balance as of March 31, 2022 (Recasted) | $ 5,898 | [1] |
Foreign currency translation | (43) | |
Balance as of September 30, 2022 | 9,512 | |
London Almaty | ||
Goodwill [Roll Forward] | ||
Acquisitions | 485 | |
Ticketon | ||
Goodwill [Roll Forward] | ||
Acquisitions | 3,172 | |
Balance as of September 30, 2022 | $ 3,172 | |
[1]* Please see Note 3 |
RECAST - Narrative (Details)
RECAST - Narrative (Details) $ in Thousands | May 17, 2022 USD ($) |
Freedom Insurance | |
Change in Accounting Estimate [Line Items] | |
Business acquisition, percentage of outstanding shares | 100% |
Total purchase price | $ 13,977 |
Freedom Life | |
Change in Accounting Estimate [Line Items] | |
Business acquisition, percentage of outstanding shares | 100% |
Total purchase price | $ 12,611 |
RECAST - Condensed Consolidated
RECAST - Condensed Consolidated Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Change in Accounting Estimate [Line Items] | |||||||
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 | |||||
ASSETS | |||||||
Cash and cash equivalents | $ 790,390 | $ 225,464 | [1] | ||||
Trading securities | 1,359,544 | 1,158,377 | [1] | ||||
Restricted cash | 440,030 | 547,950 | [1] | ||||
Brokerage and other receivables, net | 408,169 | 147,659 | [1] | ||||
Loans issued | 357,357 | 92,446 | [1] | ||||
Other assets | 62,042 | 26,136 | [1] | ||||
Fixed assets, net | 36,857 | 17,823 | [1] | ||||
Right-of-use asset | 13,602 | 7,431 | [1] | ||||
Deferred income tax assets | 2,673 | 908 | [1] | ||||
Intangible assets, net | 7,687 | 5,163 | [1] | ||||
Goodwill | 9,512 | 5,898 | [1] | ||||
Available-for-sale securities, at fair value | 168,175 | 161,364 | [1] | ||||
Insurance contract assets | 12,712 | 5,712 | [1] | ||||
Assets held for sale | 1,115,615 | 825,419 | [1] | ||||
TOTAL ASSETS | 4,784,365 | 3,227,750 | [1] | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 981,190 | 840,224 | [1] | ||||
Customer liabilities | 1,567,458 | 765,628 | [1] | ||||
Trade payables | 69,088 | 45,083 | [1] | ||||
Liabilities from insurance activity | 150,077 | 119,490 | [1] | ||||
Current income tax liability | 19,046 | 14,556 | [1] | ||||
Securities sold, not yet purchased – at fair value | 7,376 | 13,865 | [1] | $ 8,569 | |||
Loans received | 5,425 | 3,538 | [1] | ||||
Debt securities issued | 51,798 | 34,390 | [1] | ||||
Lease liability | 13,348 | 7,504 | [1] | ||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 8,534 | 8,534 | [1] | ||||
Liabilities held for sale | 1,089,880 | 812,478 | [1] | ||||
Other liabilities | 170,078 | 15,852 | [1] | ||||
TOTAL LIABILITIES | 4,163,034 | 2,681,142 | [1] | ||||
Commitments and Contingent Liabilities (Note 26) | 0 | 0 | [1] | ||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 | [1] | ||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | 59 | 59 | [1] | ||||
Additional paid in capital | 155,635 | 174,745 | [1] | ||||
Retained earnings | 529,251 | 441,924 | [1] | ||||
Accumulated other comprehensive loss | (55,575) | (63,125) | [1] | ||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 629,370 | 553,603 | [1] | ||||
Non-controlling interest | (8,039) | (6,995) | [1] | ||||
TOTAL SHAREHOLDERS’ EQUITY | 621,331 | $ 606,918 | 546,608 | [1] | $ 583,135 | $ 370,395 | $ 307,671 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 4,784,365 | 3,227,750 | [1] | ||||
Discontinued operations | |||||||
ASSETS | |||||||
Cash and cash equivalents | 712,116 | 428,480 | |||||
Trading securities | 120,162 | 122,497 | |||||
Restricted cash | 19,040 | 28,406 | |||||
Brokerage and other receivables, net | 249,980 | 210,087 | |||||
Loans issued | 14,464 | 2,395 | |||||
Other assets | 41,317 | 33,554 | |||||
TOTAL ASSETS | 1,115,615 | 825,419 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 30,961 | 32,469 | |||||
Customer liabilities | 966,869 | 701,584 | |||||
Debt securities issued | 64,647 | 64,637 | |||||
Other liabilities | 27,403 | 13,788 | |||||
TOTAL LIABILITIES | $ 1,089,880 | 812,478 | |||||
As previously reported | |||||||
ASSETS | |||||||
Cash and cash equivalents | 625,547 | ||||||
Trading securities | 1,203,479 | ||||||
Restricted cash | 553,680 | ||||||
Brokerage and other receivables, net | 357,567 | ||||||
Loans issued | 94,797 | ||||||
Other assets | 25,707 | ||||||
Fixed assets, net | 21,365 | ||||||
Right-of-use asset | 15,669 | ||||||
Deferred income tax assets | 12,018 | ||||||
Intangible assets, net | 5,791 | ||||||
Goodwill | 5,388 | ||||||
Available-for-sale securities, at fair value | 1 | ||||||
Insurance contract assets | 0 | ||||||
Assets held for sale | 0 | ||||||
TOTAL ASSETS | 2,921,009 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 775,178 | ||||||
Customer liabilities | 1,417,937 | ||||||
Trade payables | 45,229 | ||||||
Liabilities from insurance activity | 0 | ||||||
Current income tax liability | 14,556 | ||||||
Securities sold, not yet purchased – at fair value | 14,103 | ||||||
Loans received | 3,538 | ||||||
Debt securities issued | 99,027 | ||||||
Lease liability | 15,315 | ||||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 8,534 | ||||||
Liabilities held for sale | 0 | ||||||
Other liabilities | 19,917 | ||||||
TOTAL LIABILITIES | 2,413,334 | ||||||
Commitments and Contingent Liabilities (Note 26) | 0 | ||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | 59 | ||||||
Additional paid in capital | 141,340 | ||||||
Retained earnings | 426,563 | ||||||
Accumulated other comprehensive loss | (53,291) | ||||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 514,671 | ||||||
Non-controlling interest | (6,996) | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 507,675 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,921,009 | ||||||
Revision of prior period, adjustment | Discontinued operations | |||||||
ASSETS | |||||||
Cash and cash equivalents | (400,898) | ||||||
Trading securities | (122,497) | ||||||
Restricted cash | (5,730) | ||||||
Brokerage and other receivables, net | (210,087) | ||||||
Loans issued | (2,395) | ||||||
Other assets | (7,214) | ||||||
Fixed assets, net | (3,978) | ||||||
Right-of-use asset | (8,922) | ||||||
Deferred income tax assets | (11,161) | ||||||
Intangible assets, net | (2,278) | ||||||
Goodwill | 0 | ||||||
Available-for-sale securities, at fair value | 0 | ||||||
Insurance contract assets | 0 | ||||||
Assets held for sale | 825,419 | ||||||
TOTAL ASSETS | 50,259 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | (32,469) | ||||||
Customer liabilities | (651,326) | ||||||
Trade payables | (147) | ||||||
Liabilities from insurance activity | 0 | ||||||
Current income tax liability | 0 | ||||||
Securities sold, not yet purchased – at fair value | (238) | ||||||
Loans received | 0 | ||||||
Debt securities issued | (64,637) | ||||||
Lease liability | (8,530) | ||||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 0 | ||||||
Liabilities held for sale | 812,478 | ||||||
Other liabilities | (4,872) | ||||||
TOTAL LIABILITIES | 50,259 | ||||||
Commitments and Contingent Liabilities (Note 26) | 0 | ||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | 0 | ||||||
Additional paid in capital | 0 | ||||||
Retained earnings | 0 | ||||||
Accumulated other comprehensive loss | 0 | ||||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 0 | ||||||
Non-controlling interest | 0 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 0 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 50,259 | ||||||
Revision of prior period, adjustment | FF Life Acquisition | |||||||
ASSETS | |||||||
Cash and cash equivalents | 1,427 | ||||||
Trading securities | 8,875 | ||||||
Restricted cash | 0 | ||||||
Brokerage and other receivables, net | 173 | ||||||
Loans issued | 44 | ||||||
Other assets | 7,244 | ||||||
Fixed assets, net | 182 | ||||||
Right-of-use asset | 532 | ||||||
Deferred income tax assets | 23 | ||||||
Intangible assets, net | 1,489 | ||||||
Goodwill | 359 | ||||||
Available-for-sale securities, at fair value | 161,363 | ||||||
Insurance contract assets | 3,555 | ||||||
Assets held for sale | 0 | ||||||
TOTAL ASSETS | 185,266 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 47,691 | ||||||
Customer liabilities | 0 | ||||||
Trade payables | 0 | ||||||
Liabilities from insurance activity | 106,329 | ||||||
Current income tax liability | 0 | ||||||
Securities sold, not yet purchased – at fair value | 0 | ||||||
Loans received | 0 | ||||||
Debt securities issued | 0 | ||||||
Lease liability | 543 | ||||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 0 | ||||||
Liabilities held for sale | 0 | ||||||
Other liabilities | 550 | ||||||
TOTAL LIABILITIES | 155,113 | ||||||
Commitments and Contingent Liabilities (Note 26) | 0 | ||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | 9,465 | ||||||
Additional paid in capital | 0 | ||||||
Retained earnings | 28,131 | ||||||
Accumulated other comprehensive loss | (7,443) | ||||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 30,153 | ||||||
Non-controlling interest | 1 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 30,154 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 185,267 | ||||||
Revision of prior period, adjustment | FF Life Acquisition | Elimination adjustment of business combination | |||||||
ASSETS | |||||||
Cash and cash equivalents | (901) | ||||||
Trading securities | 0 | ||||||
Restricted cash | 0 | ||||||
Brokerage and other receivables, net | (34) | ||||||
Loans issued | 0 | ||||||
Other assets | 0 | ||||||
Fixed assets, net | 0 | ||||||
Right-of-use asset | 0 | ||||||
Deferred income tax assets | 0 | ||||||
Intangible assets, net | 0 | ||||||
Goodwill | 0 | ||||||
Available-for-sale securities, at fair value | 0 | ||||||
Insurance contract assets | 0 | ||||||
Assets held for sale | 0 | ||||||
TOTAL ASSETS | (935) | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 0 | ||||||
Customer liabilities | (901) | ||||||
Trade payables | 0 | ||||||
Liabilities from insurance activity | 0 | ||||||
Current income tax liability | 0 | ||||||
Securities sold, not yet purchased – at fair value | 0 | ||||||
Loans received | 0 | ||||||
Debt securities issued | 0 | ||||||
Lease liability | 0 | ||||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 0 | ||||||
Liabilities held for sale | 0 | ||||||
Other liabilities | (35) | ||||||
TOTAL LIABILITIES | (936) | ||||||
Commitments and Contingent Liabilities (Note 26) | 0 | ||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | (9,465) | ||||||
Additional paid in capital | 16,499 | ||||||
Retained earnings | (6,666) | ||||||
Accumulated other comprehensive loss | (368) | ||||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 0 | ||||||
Non-controlling interest | 0 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 0 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (936) | ||||||
Revision of prior period, adjustment | Insurance acquisitions | |||||||
ASSETS | |||||||
Cash and cash equivalents | 371 | ||||||
Trading securities | 68,520 | ||||||
Restricted cash | 0 | ||||||
Brokerage and other receivables, net | 60 | ||||||
Loans issued | 0 | ||||||
Other assets | 399 | ||||||
Fixed assets, net | 254 | ||||||
Right-of-use asset | 152 | ||||||
Deferred income tax assets | 28 | ||||||
Intangible assets, net | 161 | ||||||
Goodwill | 151 | ||||||
Available-for-sale securities, at fair value | 0 | ||||||
Insurance contract assets | 2,157 | ||||||
Assets held for sale | 0 | ||||||
TOTAL ASSETS | 72,253 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 49,824 | ||||||
Customer liabilities | 0 | ||||||
Trade payables | 21 | ||||||
Liabilities from insurance activity | 13,161 | ||||||
Current income tax liability | 0 | ||||||
Securities sold, not yet purchased – at fair value | 0 | ||||||
Loans received | 0 | ||||||
Debt securities issued | 0 | ||||||
Lease liability | 176 | ||||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 0 | ||||||
Liabilities held for sale | 0 | ||||||
Other liabilities | 292 | ||||||
TOTAL LIABILITIES | 63,474 | ||||||
Commitments and Contingent Liabilities (Note 26) | 0 | ||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | 15,577 | ||||||
Additional paid in capital | 0 | ||||||
Retained earnings | (4,811) | ||||||
Accumulated other comprehensive loss | (1,987) | ||||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 8,779 | ||||||
Non-controlling interest | 0 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 8,779 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 72,253 | ||||||
Revision of prior period, adjustment | Insurance acquisitions | Elimination adjustment of business combination | |||||||
ASSETS | |||||||
Cash and cash equivalents | (82) | ||||||
Trading securities | 0 | ||||||
Restricted cash | 0 | ||||||
Brokerage and other receivables, net | (20) | ||||||
Loans issued | 0 | ||||||
Other assets | 0 | ||||||
Fixed assets, net | 0 | ||||||
Right-of-use asset | 0 | ||||||
Deferred income tax assets | 0 | ||||||
Intangible assets, net | 0 | ||||||
Goodwill | 0 | ||||||
Available-for-sale securities, at fair value | 0 | ||||||
Insurance contract assets | 0 | ||||||
Assets held for sale | 0 | ||||||
TOTAL ASSETS | (102) | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Securities repurchase agreement obligations | 0 | ||||||
Customer liabilities | (82) | ||||||
Trade payables | (20) | ||||||
Liabilities from insurance activity | 0 | ||||||
Current income tax liability | 0 | ||||||
Securities sold, not yet purchased – at fair value | 0 | ||||||
Loans received | 0 | ||||||
Debt securities issued | 0 | ||||||
Lease liability | 0 | ||||||
Deferred income tax liabilities | 0 | ||||||
Deferred distribution payments | 0 | ||||||
Liabilities held for sale | 0 | ||||||
Other liabilities | 0 | ||||||
TOTAL LIABILITIES | (102) | ||||||
Commitments and Contingent Liabilities (Note 26) | 0 | ||||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | ||||||
Common stock - $0.001 par value; 500,000,000 shares authorized; | (15,577) | ||||||
Additional paid in capital | 16,906 | ||||||
Retained earnings | (1,293) | ||||||
Accumulated other comprehensive loss | (36) | ||||||
TOTAL FRHC SHAREHOLDERS’ EQUITY | 0 | ||||||
Non-controlling interest | 0 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 0 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ (102) | ||||||
[1]* Please see Note 3 |
RECAST- Condensed Consolidated
RECAST- Condensed Consolidated Statement of Operations and Other Comprehensive Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Revenue: | ||||||
Fee and commission income | $ 83,157 | $ 93,025 | $ 172,603 | $ 171,140 | ||
Debt Securities, Trading, Gain (Loss) | 9,005 | 181,603 | 13,439 | 190,285 | ||
Net realized loss on investments available for sale | 716 | (622) | 123 | (653) | ||
Investment Income, Interest | 58,999 | 26,619 | 107,562 | 48,857 | ||
Underwriting Income (Loss) | 26,200 | 16,022 | 50,440 | 30,098 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 4,555 | 1,508 | 9,148 | 2,716 | ||
Derivative, Gain (Loss) on Derivative, Net | (2,320) | (656) | (1,054) | (715) | ||
Total revenue, net | 180,312 | 317,499 | 352,261 | 441,728 | ||
Expense: | ||||||
Fee and commission expense | 18,439 | 22,651 | 41,754 | 43,844 | ||
Interest expense | 40,863 | 16,716 | 80,934 | 30,962 | ||
Insurance claims incurred, net of reinsurance | 17,475 | 13,513 | 34,167 | 24,809 | ||
Operating expense | 37,760 | 21,770 | 75,759 | 41,191 | ||
Provision for impairment losses | 3,726 | 978 | 6,154 | 1,245 | ||
Other expense, net | 192 | 786 | (368) | 795 | ||
TOTAL EXPENSE | 118,455 | 76,414 | 238,400 | 142,846 | ||
INCOME BEFORE INCOME TAX | 61,857 | 241,085 | 113,861 | 298,882 | ||
Income tax expense | (12,619) | (32,094) | (21,498) | (37,220) | ||
INCOME FROM CONTINUING OPERATIONS | 49,238 | 208,991 | 92,363 | [1] | 261,662 | [1] |
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | (18,302) | (2,779) | 800 | 458 | ||
Income tax (expense)/benefit of discontinued operations | (3,724) | 529 | (6,880) | (9) | ||
Income from discontinued operation | (22,026) | (2,250) | (6,080) | [1] | 449 | [1] |
NET INCOME | 27,212 | 206,741 | 86,283 | [1] | 262,111 | [1] |
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 950 | (20) | (1,044) | (72) | ||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 26,262 | 206,761 | 87,327 | 262,183 | ||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 1,477 | (1,601) | 2,343 | (726) | ||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | (716) | 622 | (123) | 653 | ||
Translation difference | (16,663) | 1,181 | 5,316 | 4,203 | ||
OTHER COMPREHENSIVE (LOSS)/ INCOME | (15,902) | 202 | 7,536 | 4,130 | ||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 11,310 | 206,943 | 93,819 | 266,241 | ||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 950 | (20) | (1,043) | (72) | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 10,360 | $ 206,963 | $ 94,862 | $ 266,313 | ||
Earnings per basic share (in USD per share) | $ 0.82 | $ 3.51 | $ 1.59 | $ 4.42 | ||
Earnings per diluted share (in USD per share) | 0.81 | 3.51 | 1.57 | 4.42 | ||
Earnings per common share-basic (in USD per share) | 0.45 | 3.47 | 1.49 | 4.43 | ||
Earnings per common share- diluted (in USD per share) | $ 0.44 | $ 3.47 | $ 1.46 | $ 4.43 | ||
Weighted average number of shares, basic (in shares) | 58,665,415,000 | 59,510,976,000 | 58,624,513,000 | 59,220,800,000 | ||
Weighted average number of shares, diluted (in shares) | 59,518,473,000 | 59,510,976,000 | 59,678,513,000 | 59,220,800,000 | ||
Central Asia | ||||||
Revenue: | ||||||
Fee and commission income | $ 19,067 | $ 5,266 | $ 28,259 | $ 11,522 | ||
Debt Securities, Trading, Gain (Loss) | 15,828 | 2,756 | 37,417 | 11,698 | ||
Net realized loss on investments available for sale | 716 | (622) | 123 | (653) | ||
Investment Income, Interest | 46,275 | 24,206 | 85,185 | 45,035 | ||
Underwriting Income (Loss) | 26,200 | 16,022 | 50,440 | 30,098 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 7,601 | 1,304 | 11,869 | 2,774 | ||
Derivative, Gain (Loss) on Derivative, Net | (2,320) | (656) | (1,054) | (715) | ||
Total revenue, net | 113,367 | 48,276 | 212,239 | 99,759 | ||
Expense: | ||||||
Fee and commission expense | 11,812 | 2,123 | 22,527 | 4,654 | ||
Interest expense | 34,562 | 14,490 | 66,530 | 26,758 | ||
Insurance claims incurred, net of reinsurance | 17,475 | 13,513 | 34,167 | 24,809 | ||
Operating expense | 21,715 | 12,206 | 42,482 | 23,081 | ||
Provision for impairment losses | 3,732 | 978 | 6,164 | 1,233 | ||
Other expense, net | 94 | 794 | (407) | 800 | ||
TOTAL EXPENSE | 89,390 | 44,104 | 171,463 | |||
INCOME BEFORE INCOME TAX | 23,977 | 4,172 | 40,776 | 18,424 | ||
Income tax expense | (534) | 135 | (596) | 22 | ||
INCOME FROM CONTINUING OPERATIONS | 23,443 | 4,307 | 40,180 | 18,446 | ||
Europe | ||||||
Revenue: | ||||||
Fee and commission income | 63,040 | 86,594 | 142,160 | 157,484 | ||
Debt Securities, Trading, Gain (Loss) | (7,210) | 178,951 | (22,634) | 178,993 | ||
Net realized loss on investments available for sale | 0 | 0 | 0 | 0 | ||
Investment Income, Interest | 10,177 | 2,400 | 15,388 | 3,762 | ||
Underwriting Income (Loss) | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | (2,400) | 166 | (1,830) | (60) | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 | ||
Total revenue, net | 63,607 | 268,111 | 133,084 | 340,179 | ||
Expense: | ||||||
Fee and commission expense | 6,474 | 20,360 | 18,901 | 38,840 | ||
Interest expense | 2,964 | 1,805 | 5,660 | 3,503 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 | ||
Operating expense | 10,534 | 4,952 | 22,099 | 9,744 | ||
Provision for impairment losses | (1) | 0 | (2) | 12 | ||
Other expense, net | 101 | (8) | 97 | (5) | ||
TOTAL EXPENSE | 20,072 | 27,109 | 46,755 | |||
INCOME BEFORE INCOME TAX | 43,535 | 241,002 | 86,329 | 288,085 | ||
Income tax expense | (6,623) | (8,152) | (13,846) | (14,014) | ||
INCOME FROM CONTINUING OPERATIONS | 36,912 | 232,850 | 72,483 | 274,071 | ||
U.S. | ||||||
Revenue: | ||||||
Fee and commission income | 1,050 | 1,165 | 2,184 | 2,134 | ||
Debt Securities, Trading, Gain (Loss) | 387 | (104) | (1,344) | (406) | ||
Net realized loss on investments available for sale | 0 | 0 | 0 | 0 | ||
Investment Income, Interest | 2,547 | 13 | 6,989 | 60 | ||
Underwriting Income (Loss) | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | (665) | 38 | (899) | 2 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 | ||
Total revenue, net | 3,319 | 1,112 | 6,930 | 1,790 | ||
Expense: | ||||||
Fee and commission expense | 144 | 168 | 297 | 350 | ||
Interest expense | 3,337 | 421 | 8,744 | 701 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 | ||
Operating expense | 5,093 | 4,583 | 10,360 | 8,372 | ||
Provision for impairment losses | (5) | 0 | (8) | 0 | ||
Other expense, net | (3) | 0 | (8) | 0 | ||
TOTAL EXPENSE | 8,566 | 5,172 | 19,385 | |||
INCOME BEFORE INCOME TAX | (5,247) | (4,060) | (12,455) | (7,633) | ||
Income tax expense | (5,472) | (24,077) | (7,077) | (23,228) | ||
INCOME FROM CONTINUING OPERATIONS | (10,719) | (28,137) | (19,532) | (30,861) | ||
Middle East/Caucasus | ||||||
Revenue: | ||||||
Fee and commission income | 0 | 0 | 0 | 0 | ||
Debt Securities, Trading, Gain (Loss) | 0 | 0 | 0 | 0 | ||
Net realized loss on investments available for sale | 0 | 0 | 0 | 0 | ||
Investment Income, Interest | 0 | 0 | 0 | 0 | ||
Underwriting Income (Loss) | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 19 | 0 | 8 | 0 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 | ||
Total revenue, net | 19 | 0 | 8 | 0 | ||
Expense: | ||||||
Fee and commission expense | 9 | 0 | 29 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 | ||
Operating expense | 418 | 29 | 818 | |||
Provision for impairment losses | 0 | 0 | 0 | 0 | ||
Other expense, net | 0 | 0 | (50) | 0 | ||
TOTAL EXPENSE | 427 | 29 | 797 | |||
INCOME BEFORE INCOME TAX | (408) | (29) | (789) | 6 | ||
Income tax expense | 10 | 0 | 21 | 0 | ||
INCOME FROM CONTINUING OPERATIONS | (398) | (29) | (768) | 6 | ||
Discontinued operations | ||||||
Revenue: | ||||||
Fee and commission income | 17,395 | 19,432 | 48,060 | 36,450 | ||
Debt Securities, Trading, Gain (Loss) | 1,950 | (5,164) | 13,099 | (3,105) | ||
Investment Income, Interest | 17,440 | 5,114 | 29,861 | 9,788 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 19,989 | (3) | 20,414 | (2,235) | ||
Total revenue, net | 56,774 | 19,379 | 111,434 | 40,898 | ||
Expense: | ||||||
Fee and commission expense | 2,324 | 2,159 | 4,250 | 4,226 | ||
Interest expense | 4,261 | 2,210 | 10,019 | 4,459 | ||
Operating expense | 26,072 | 17,764 | 53,540 | 31,587 | ||
Provision for impairment losses | 212 | 50 | 582 | 76 | ||
Other expense, net | 743 | (25) | 779 | 92 | ||
TOTAL EXPENSE | 75,076 | 22,158 | 110,634 | 40,440 | ||
INCOME BEFORE INCOME TAX | $ (18,302) | (2,779) | 800 | 458 | ||
Income from discontinued operation | $ (6,080) | 449 | ||||
As previously reported | ||||||
Revenue: | ||||||
Fee and commission income | 114,344 | 210,649 | ||||
Debt Securities, Trading, Gain (Loss) | 175,252 | 185,152 | ||||
Net realized loss on investments available for sale | 0 | 0 | ||||
Investment Income, Interest | 22,253 | 41,431 | ||||
Underwriting Income (Loss) | 0 | 0 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | 1,622 | 434 | ||||
Derivative, Gain (Loss) on Derivative, Net | (656) | (715) | ||||
Total revenue, net | 312,815 | 436,951 | ||||
Expense: | ||||||
Fee and commission expense | 22,968 | 44,832 | ||||
Interest expense | 16,185 | 30,457 | ||||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||||
Operating expense | 36,569 | 66,888 | ||||
Provision for impairment losses | 366 | 659 | ||||
Other expense, net | 653 | 664 | ||||
TOTAL EXPENSE | 76,741 | 143,500 | ||||
INCOME BEFORE INCOME TAX | 236,074 | 293,451 | ||||
Income tax expense | (31,562) | (37,231) | ||||
INCOME FROM CONTINUING OPERATIONS | 204,512 | 256,220 | ||||
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | 0 | 0 | ||||
Income tax (expense)/benefit of discontinued operations | 0 | 0 | ||||
Income from discontinued operation | 0 | 0 | ||||
NET INCOME | 204,512 | 256,220 | ||||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | (20) | (72) | ||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 204,532 | 256,292 | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||||
Translation difference | 930 | 4,230 | ||||
OTHER COMPREHENSIVE (LOSS)/ INCOME | 930 | 4,230 | ||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 205,442 | 260,450 | ||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | (20) | (72) | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 205,462 | $ 260,522 | ||||
Earnings per basic share (in USD per share) | $ 3.44 | $ 4.33 | ||||
Revision of prior period, adjustment | Discontinued operations | ||||||
Revenue: | ||||||
Fee and commission income | $ (21,179) | $ (39,345) | ||||
Debt Securities, Trading, Gain (Loss) | 5,163 | 3,104 | ||||
Net realized loss on investments available for sale | 0 | 0 | ||||
Investment Income, Interest | (3,368) | (6,892) | ||||
Underwriting Income (Loss) | 0 | 0 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | 3 | 2,234 | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||||
Total revenue, net | (19,381) | (40,899) | ||||
Expense: | ||||||
Fee and commission expense | (2,159) | (4,226) | ||||
Interest expense | (2,210) | (4,459) | ||||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||||
Operating expense | (17,765) | (31,587) | ||||
Provision for impairment losses | (50) | (77) | ||||
Other expense, net | 24 | (92) | ||||
TOTAL EXPENSE | (22,160) | (40,441) | ||||
INCOME BEFORE INCOME TAX | 2,779 | (458) | ||||
Income tax expense | 0 | 0 | ||||
INCOME FROM CONTINUING OPERATIONS | 2,779 | (458) | ||||
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | (2,779) | 458 | ||||
Income tax (expense)/benefit of discontinued operations | 529 | (537) | ||||
Income from discontinued operation | (2,250) | (79) | ||||
NET INCOME | 0 | 0 | ||||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||||
Translation difference | 134 | 0 | ||||
OTHER COMPREHENSIVE (LOSS)/ INCOME | 134 | 0 | ||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 134 | 0 | ||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 134 | $ 0 | ||||
Earnings per basic share (in USD per share) | $ (0.05) | $ 0.01 | ||||
Revision of prior period, adjustment | FF Life Acquisition | ||||||
Revenue: | ||||||
Fee and commission income | $ 0 | $ 0 | ||||
Debt Securities, Trading, Gain (Loss) | 329 | 600 | ||||
Net realized loss on investments available for sale | (622) | (653) | ||||
Investment Income, Interest | 5,513 | 10,100 | ||||
Underwriting Income (Loss) | 12,804 | 24,062 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (106) | 38 | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||||
Total revenue, net | 17,918 | 34,147 | ||||
Expense: | ||||||
Fee and commission expense | 1,836 | 3,128 | ||||
Interest expense | 1,120 | 1,998 | ||||
Insurance claims incurred, net of reinsurance | 9,748 | 18,616 | ||||
Operating expense | 1,336 | 2,612 | ||||
Provision for impairment losses | 0 | 0 | ||||
Other expense, net | 110 | 225 | ||||
TOTAL EXPENSE | 14,150 | 26,579 | ||||
INCOME BEFORE INCOME TAX | 3,768 | 7,568 | ||||
Income tax expense | (13) | (1) | ||||
INCOME FROM CONTINUING OPERATIONS | 3,755 | 7,567 | ||||
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | 0 | 0 | ||||
Income tax (expense)/benefit of discontinued operations | 0 | 0 | ||||
Income from discontinued operation | 0 | 0 | ||||
NET INCOME | 3,755 | 7,567 | ||||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 3,755 | 7,567 | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | (1,601) | (726) | ||||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 622 | 653 | ||||
Translation difference | 21 | 71 | ||||
OTHER COMPREHENSIVE (LOSS)/ INCOME | (958) | (2) | ||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 2,797 | 7,565 | ||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 2,797 | 7,565 | ||||
Revision of prior period, adjustment | FF Life Acquisition | Elimination adjustment of business combination | ||||||
Revenue: | ||||||
Fee and commission income | (91) | (91) | ||||
Debt Securities, Trading, Gain (Loss) | 0 | 0 | ||||
Net realized loss on investments available for sale | 0 | 0 | ||||
Investment Income, Interest | 0 | 0 | ||||
Underwriting Income (Loss) | 0 | 0 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||||
Total revenue, net | (91) | (91) | ||||
Expense: | ||||||
Fee and commission expense | (91) | (91) | ||||
Interest expense | 0 | 0 | ||||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||||
Operating expense | 0 | 0 | ||||
Provision for impairment losses | 0 | 0 | ||||
Other expense, net | 0 | 0 | ||||
TOTAL EXPENSE | (91) | (91) | ||||
INCOME BEFORE INCOME TAX | 0 | 0 | ||||
Income tax expense | 0 | 0 | ||||
INCOME FROM CONTINUING OPERATIONS | 0 | 0 | ||||
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | 0 | 0 | ||||
Income tax (expense)/benefit of discontinued operations | 0 | 0 | ||||
Income from discontinued operation | 0 | 0 | ||||
NET INCOME | 0 | 0 | ||||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||||
Translation difference | 0 | 0 | ||||
OTHER COMPREHENSIVE (LOSS)/ INCOME | 0 | 0 | ||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 0 | 0 | ||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 | ||||
Revision of prior period, adjustment | Insurance acquisitions | ||||||
Revenue: | ||||||
Fee and commission income | 28 | 88 | ||||
Debt Securities, Trading, Gain (Loss) | 859 | 1,429 | ||||
Net realized loss on investments available for sale | 0 | 0 | ||||
Investment Income, Interest | 2,221 | 4,218 | ||||
Underwriting Income (Loss) | 3,218 | 6,036 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (11) | 10 | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||||
Total revenue, net | 6,315 | 11,781 | ||||
Expense: | ||||||
Fee and commission expense | 174 | 362 | ||||
Interest expense | 1,621 | 2,966 | ||||
Insurance claims incurred, net of reinsurance | 3,765 | 6,193 | ||||
Operating expense | 1,630 | 3,278 | ||||
Provision for impairment losses | 662 | 663 | ||||
Other expense, net | (1) | (2) | ||||
TOTAL EXPENSE | 7,851 | 13,460 | ||||
INCOME BEFORE INCOME TAX | (1,536) | (1,679) | ||||
Income tax expense | 10 | (7) | ||||
INCOME FROM CONTINUING OPERATIONS | (1,526) | (1,686) | ||||
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | 0 | 0 | ||||
Income tax (expense)/benefit of discontinued operations | 0 | 0 | ||||
Income from discontinued operation | 0 | 0 | ||||
NET INCOME | (1,526) | (1,686) | ||||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | (1,526) | (1,686) | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||||
Translation difference | 96 | 0 | ||||
OTHER COMPREHENSIVE (LOSS)/ INCOME | 96 | 0 | ||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | (1,430) | (1,686) | ||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | (1,430) | (1,686) | ||||
Revision of prior period, adjustment | Insurance acquisitions | Elimination adjustment of business combination | ||||||
Revenue: | ||||||
Fee and commission income | (77) | (161) | ||||
Debt Securities, Trading, Gain (Loss) | 0 | 0 | ||||
Net realized loss on investments available for sale | 0 | 0 | ||||
Investment Income, Interest | 0 | 0 | ||||
Underwriting Income (Loss) | 0 | 0 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | ||||
Total revenue, net | (77) | (161) | ||||
Expense: | ||||||
Fee and commission expense | (77) | (161) | ||||
Interest expense | 0 | 0 | ||||
Insurance claims incurred, net of reinsurance | 0 | 0 | ||||
Operating expense | 0 | 0 | ||||
Provision for impairment losses | 0 | 0 | ||||
Other expense, net | 0 | 0 | ||||
TOTAL EXPENSE | (77) | (161) | ||||
INCOME BEFORE INCOME TAX | 0 | 0 | ||||
Income tax expense | 0 | 0 | ||||
INCOME FROM CONTINUING OPERATIONS | 0 | 0 | ||||
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25) | 0 | 0 | ||||
Income tax (expense)/benefit of discontinued operations | 0 | 0 | ||||
Income from discontinued operation | 0 | |||||
NET INCOME | 0 | 0 | ||||
Less: Net income/(loss) attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 0 | 0 | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Change in unrealized gain on investments available-for-sale, net of tax effect | 0 | 0 | ||||
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 0 | 0 | ||||
Translation difference | 0 | (98) | ||||
OTHER COMPREHENSIVE (LOSS)/ INCOME | 0 | (98) | ||||
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 0 | (98) | ||||
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | 0 | 0 | ||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 0 | $ (98) | ||||
[1]* Please see Note 4 |
RESTATEMENT - Adjustments (Deta
RESTATEMENT - Adjustments (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Net cash flows from operating activities from continuing operations | [1] | $ (25,407) | $ 20,847 |
Net cash flows used from investing activities | [1] | (323,187) | (66,252) |
Net cash flows from/(used in) financing activities | [1] | 895,684 | 152,867 |
Effect of Exchange Rate on Cash and Cash Equivalents | 184,186 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | [1] | 731,276 | 130,988 |
FF Life and FF Insurance acquisitions | |||
Net cash flows from operating activities from continuing operations | (9,084) | ||
Net cash flows used from investing activities | (44,304) | ||
Net cash flows from/(used in) financing activities | 160,850 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 130,988 | ||
As previously reported | |||
Net cash flows from operating activities from continuing operations | 124,183 | (146,141) | |
Net cash flows used from investing activities | (323,187) | (7,084) | |
Net cash flows from/(used in) financing activities | 746,094 | 99,070 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 184,186 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 731,276 | (36,533) | |
As previously reported | FF Life and FF Insurance acquisitions | |||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 130,988 | ||
Revision of prior period, adjustment | |||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 0 | ||
Revision of prior period, adjustment | Discontinued operations | |||
Net cash flows from operating activities from continuing operations | 134,938 | ||
Net cash flows used from investing activities | 0 | ||
Net cash flows from/(used in) financing activities | 32,871 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 167,617 | ||
Revision of prior period, adjustment | FF Life and FF Insurance acquisitions | |||
Net cash flows from operating activities from continuing operations | 2,119 | ||
Net cash flows used from investing activities | (37,220) | ||
Net cash flows from/(used in) financing activities | 28,909 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (96) | ||
Correction of errors related to classification of funds received for financing mortgage loans | |||
Net cash flows from operating activities from continuing operations | (149,590) | ||
Net cash flows used from investing activities | 0 | ||
Net cash flows from/(used in) financing activities | 149,590 | ||
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ 0 | ||
Correction of errors | |||
Net cash flows from operating activities from continuing operations | 29,931 | ||
Net cash flows used from investing activities | (21,948) | ||
Net cash flows from/(used in) financing activities | (7,983) | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ 0 | ||
[1]* Please see Note 4 |
RESTATEMENT - Adjustments, Cont
RESTATEMENT - Adjustments, Continuing and Discontinued Operations (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Net cash flows from operating activities from continuing operations | [1] | $ (54,990) | $ 15,242 |
Net cash flows from operating activities from discontinued operations | [1] | 29,583 | 5,605 |
Net cash flows used in investing activities from continuing operations | [1] | (311,114) | (65,781) |
Net cash flows used in investing activities from discontinued operations | [1] | (12,073) | (471) |
Net cash flows from financing activities from continuing operations | [1] | 851,481 | 181,751 |
Net cash flows from/(used in) financing activities from discontinued operations | [1] | 44,203 | (28,884) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | [1] | 731,276 | 130,988 |
FF Life and FF Insurance acquisitions | |||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 130,988 | ||
As previously reported | |||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ 731,276 | (36,533) | |
As previously reported | FF Life and FF Insurance acquisitions | |||
Net cash flows from operating activities from continuing operations | (4,046) | ||
Net cash flows from operating activities from discontinued operations | (5,038) | ||
Net cash flows used in investing activities from continuing operations | (43,238) | ||
Net cash flows used in investing activities from discontinued operations | (1,066) | ||
Net cash flows from financing activities from continuing operations | 178,496 | ||
Net cash flows from/(used in) financing activities from discontinued operations | (17,646) | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 130,988 | ||
Revision of prior period, adjustment | |||
Net cash flows from operating activities from continuing operations | 19,288 | ||
Net cash flows from operating activities from discontinued operations | 10,643 | ||
Net cash flows used in investing activities from continuing operations | (22,543) | ||
Net cash flows used in investing activities from discontinued operations | 595 | ||
Net cash flows from financing activities from continuing operations | 3,255 | ||
Net cash flows from/(used in) financing activities from discontinued operations | (11,238) | ||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ 0 | ||
[1]* Please see Note 4 |
RESTATEMENT - Adjustment to Con
RESTATEMENT - Adjustment to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fee and commission income | $ 83,157 | $ 93,025 | $ 172,603 | $ 171,140 |
Underwriting Income (Loss) | 26,200 | 16,022 | 50,440 | 30,098 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 716 | (622) | 123 | (653) |
Debt Securities, Trading, Gain (Loss) | 9,005 | 181,603 | 13,439 | 190,285 |
Investment Income, Interest | 58,999 | 26,619 | 107,562 | 48,857 |
Foreign Currency Transaction Gain (Loss), before Tax | 4,555 | 1,508 | 9,148 | 2,716 |
Derivative, Gain (Loss) on Derivative, Net | (2,320) | (656) | (1,054) | (715) |
TOTAL REVENUE, NET | 180,312 | 317,499 | 352,261 | 441,728 |
As Recasted | ||||
Fee and commission income | 93,123 | 95,215 | 187,483 | 174,431 |
Underwriting Income (Loss) | 26,200 | 16,022 | 50,440 | 30,098 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 716 | (622) | 123 | (653) |
Debt Securities, Trading, Gain (Loss) | 9,005 | 181,603 | 13,439 | 190,285 |
Investment Income, Interest | 49,033 | 24,429 | 92,682 | 45,566 |
Foreign Currency Transaction Gain (Loss), before Tax | 4,555 | 1,508 | 9,148 | 2,716 |
Derivative, Gain (Loss) on Derivative, Net | (2,320) | (656) | (1,054) | (715) |
TOTAL REVENUE, NET | 180,312 | 317,499 | 352,261 | 441,728 |
Correction of errors | ||||
Fee and commission income | (9,966) | (2,190) | (14,880) | (3,291) |
Underwriting Income (Loss) | 0 | 0 | 0 | 0 |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 0 | 0 | 0 | 0 |
Debt Securities, Trading, Gain (Loss) | 0 | 0 | 0 | 0 |
Investment Income, Interest | 9,966 | 2,190 | 14,880 | 3,291 |
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 0 | 0 | 0 |
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 |
TOTAL REVENUE, NET | $ 0 | $ 0 | $ 0 | $ 0 |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 790,390 | $ 225,464 | $ 184,523 |
Cash demand accounts in National Bank (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 478,567 | 42,517 | |
Cash demand accounts in commercial banks | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 193,944 | 70,155 | |
Securities purchased under reverse repurchase agreements | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 47,049 | 19,947 | |
Cash demand accounts on brokerage accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 45,653 | 71,061 | |
Petty cash in bank vault and on hand | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 12,033 | 18,607 | |
Cash in transit | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 8,301 | 35 | |
Overnight deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 2,776 | 0 | |
Cash demand accounts in stock exchanges | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 1,975 | 2,828 | |
Cash demand accounts in the Central Depository (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 92 | $ 314 |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of collateral received by the company under reverse repurchase agreements | $ 47,435 | $ 19,911 |
CASH AND CASH EQUIVALENTS - S_2
CASH AND CASH EQUIVALENTS - Schedule of collateralized securities received under reverse repurchase agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | $ 974,904 | $ 840,082 |
30-90 days | 6,286 | 142 |
Total contractual maturity | 981,190 | 840,224 |
Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 47,026 | 19,947 |
30-90 days | 23 | 0 |
Total contractual maturity | 47,049 | 19,947 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 508,658 | 609,405 |
30-90 days | 6,286 | 142 |
Total contractual maturity | $ 514,944 | $ 609,547 |
Corporate debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 15.81% | 11.88% |
Up to 30 days | $ 25,608 | $ 57 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 25,608 | $ 57 |
Non-US sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 1.38% | 12.51% |
Up to 30 days | $ 13,746 | $ 9,786 |
30-90 days | 0 | 0 |
Total contractual maturity | 13,746 | 9,786 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 1,388 | 7,396 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 1,388 | $ 7,396 |
US sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.99% | 16.38% |
Up to 30 days | $ 7,444 | $ 9,952 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 7,444 | 9,952 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 388 | |
30-90 days | 0 | |
Total contractual maturity | $ 388 | |
Corporate equity | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 12.25% | 16.90% |
Up to 30 days | $ 228 | $ 152 |
30-90 days | 23 | 0 |
Total contractual maturity | $ 251 | $ 152 |
RESTRICTED CASH - Schedule of r
RESTRICTED CASH - Schedule of restricted cash (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 440,030 | $ 547,950 |
Brokerage customers’ cash | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 428,540 | 531,032 |
Deferred distribution payments | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 8,534 | 8,534 |
Guaranty deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 2,956 | 5,540 |
Restricted bank accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 0 | $ 2,844 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 440,030 | $ 547,950 |
Funds qualified for FDIC insurance | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 250 | 250 |
Deferred distribution payments | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 8,534 | $ 8,534 |
TRADING AND AVAILABLE FOR SALE
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 1,359,544 | $ 1,158,377 |
Fair value of equity securities | 168,175 | 161,364 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 666,137 | 712,133 |
Fair value of equity securities | 155,529 | 145,836 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 634,056 | 360,570 |
Fair value of equity securities | 8,293 | 12,997 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 32,522 | 72,354 |
Fair value of equity securities | 1 | 1 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 23,883 | 10,435 |
Fair value of equity securities | 4,352 | 2,530 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 2,946 | $ 2,884 |
TRADING AND AVAILABLE FOR SAL_2
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of maturity of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | $ 168,175 | $ 161,364 |
Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 8,293 | 12,997 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 155,529 | 145,836 |
US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 4,352 | 2,530 |
Corporate equity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 1 | 1 |
Up to 1 year | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 50,533 | 71,056 |
Up to 1 year | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 1,692 |
Up to 1 year | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 50,533 | 69,364 |
Up to 1 year | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 0 |
Up to 1 year | Corporate equity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 0 |
1-5 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 55,275 | 51,019 |
1-5 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 430 | 864 |
1-5 years | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 53,456 | 50,155 |
1-5 years | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 1,389 | 0 |
1-5 years | Corporate equity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 0 |
5-10 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 51,955 | 27,370 |
5-10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 850 | 1,086 |
5-10 years | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 49,411 | 26,284 |
5-10 years | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 1,694 | 0 |
5-10 years | Corporate equity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 0 |
More than 10 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 10,412 | 11,919 |
More than 10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 7,013 | 9,355 |
More than 10 years | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 2,129 | 33 |
More than 10 years | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 1,269 | 2,530 |
More than 10 years | Corporate equity | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | $ 1 | $ 1 |
TRADING AND AVAILABLE FOR SAL_3
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Narrative (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) issuer | Mar. 31, 2022 USD ($) issuer | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of issuers | issuer | 2 | 2 |
Kazakhstan Sustainability Fund JSC | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities | 10% | 10% |
Debt securities | $ 321,902 | $ 506,472 |
Ministry of Finance of the Republic of Kazakhstan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities | 10% | 10% |
Debt securities | $ 622,251 | $ 357,343 |
TRADING AND AVAILABLE FOR SAL_4
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 | 6 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 1,359,544 | $ 1,158,377 |
Fair value of equity securities | 168,175 | 161,364 |
Fair value | 4,175 | 9,142 |
Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,359,544 | 1,158,377 |
Fair value of equity securities | 168,175 | 161,364 |
Fair value, recurring | Level 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,087,682 | 1,148,959 |
Fair value of equity securities | 158,753 | 160,917 |
Fair value, recurring | Level 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 267,687 | 276 |
Fair value of equity securities | 9,421 | 0 |
Fair value, recurring | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 4,175 | 9,142 |
Fair value of equity securities | 1 | 447 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 666,137 | 712,133 |
Fair value of equity securities | 155,529 | 145,836 |
Fair value | $ 515 | $ 595 |
Fair value input | 74% | 45% |
Estimated number of years | 3 months | 3 months |
Corporate debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 10.90% | 9.09% |
Trading securities | $ 666,137 | $ 712,133 |
Total available-for-sale securities, weighted average interest rate | 12.20% | 11.09% |
Fair value of equity securities | $ 155,529 | $ 145,836 |
Corporate debt | Fair value, recurring | Level 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 622,933 | 711,538 |
Fair value of equity securities | 147,582 | 145,836 |
Corporate debt | Fair value, recurring | Level 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 42,689 | 0 |
Fair value of equity securities | 7,947 | 0 |
Corporate debt | Fair value, recurring | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 515 | 595 |
Fair value of equity securities | 0 | 0 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 634,056 | 360,570 |
Fair value of equity securities | 8,293 | 12,997 |
Fair value | $ 3,337 | $ 7,524 |
Fair value input | 48.80% | 69% |
Estimated number of years | 11 years | 11 years |
Non-U.S. sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 10.90% | 13.15% |
Trading securities | $ 634,056 | $ 360,571 |
Total available-for-sale securities, weighted average interest rate | 5.90% | 5.51% |
Fair value of equity securities | $ 8,293 | $ 12,997 |
Non-U.S. sovereign debt | Fair value, recurring | Level 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 421,301 | 352,275 |
Fair value of equity securities | 7,661 | 12,551 |
Non-U.S. sovereign debt | Fair value, recurring | Level 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 209,418 | 0 |
Fair value of equity securities | 632 | 0 |
Non-U.S. sovereign debt | Fair value, recurring | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 3,337 | 8,296 |
Fair value of equity securities | 0 | 446 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 32,522 | 72,354 |
Fair value of equity securities | 1 | 1 |
Fair value | $ 323 | $ 251 |
Fair value input | 58.80% | 20% |
Estimated number of years | 9 years | 9 years |
Corporate equity | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 0% | 0% |
Trading securities | $ 32,522 | $ 72,354 |
Total available-for-sale securities, weighted average interest rate | 0% | 0% |
Fair value of equity securities | $ 1 | $ 1 |
Corporate equity | Fair value, recurring | Level 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 19,986 | 71,827 |
Fair value of equity securities | 0 | 0 |
Corporate equity | Fair value, recurring | Level 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 12,213 | 276 |
Fair value of equity securities | 0 | 0 |
Corporate equity | Fair value, recurring | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 323 | 251 |
Fair value of equity securities | 1 | 1 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 23,883 | 10,435 |
Fair value of equity securities | $ 4,352 | $ 2,530 |
US sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 4.32% | 2.35% |
Trading securities | $ 23,883 | $ 10,435 |
Total available-for-sale securities, weighted average interest rate | 4.05% | 2.17% |
Fair value of equity securities | $ 4,352 | $ 2,530 |
US sovereign debt | Fair value, recurring | Level 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 20,997 | 10,435 |
Fair value of equity securities | 3,510 | 2,530 |
US sovereign debt | Fair value, recurring | Level 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,886 | 0 |
Fair value of equity securities | 842 | 0 |
US sovereign debt | Fair value, recurring | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Fair value of equity securities | 0 | 0 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 2,946 | $ 2,884 |
Exchange traded notes | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 0% | 0% |
Trading securities | $ 2,946 | $ 2,884 |
Exchange traded notes | Fair value, recurring | Level 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,465 | 2,884 |
Exchange traded notes | Fair value, recurring | Level 2 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 481 | 0 |
Exchange traded notes | Fair value, recurring | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 0 | 0 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 772 | |
Fair value input | 13.90% | |
Estimated number of years | 1 year |
TRADING AND AVAILABLE FOR SAL_5
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 | 6 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Available-for-sale securities, beginning balance | $ 161,364 | |
Available-for-sale securities, ending balance | 168,175 | $ 161,364 |
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 |
Purchase of investments that use Level 3 inputs | 446 | 0 |
Reclassification to level 2 | 0 | |
Sale of investments that use Level 3 inputs | 0 | |
Revaluation of investments that use Level 3 inputs | 0 | 0 |
Translation difference | 0 | |
Reclassification to level 3 | 0 | |
Reclassification to level 1 | 0 | |
Available-for-sale securities, ending balance | 447 | 1 |
Trading securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Investments beginning | 9,142 | 19,032 |
Purchase of investments that use Level 3 inputs | 1,750 | 10,812 |
Reclassification to level 2 | (1,267) | |
Sale of investments that use Level 3 inputs | (4,716) | |
Revaluation of investments that use Level 3 inputs | (160) | (3,014) |
Translation difference | (574) | |
Reclassification to level 3 | 682 | |
Reclassification to level 1 | (18,370) | |
Investments ending | $ 4,175 | $ 9,142 |
TRADING AND AVAILABLE FOR SAL_6
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 | Sep. 30, 2022 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | $ 167,864 | $ 162,808 |
Recognized impairment loss in Income Statement | (402) | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | 713 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (1,444) | |
Assets measured at fair value | 168,175 | 161,364 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 152,826 | 146,111 |
Recognized impairment loss in Income Statement | (402) | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | 3,105 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (275) | |
Assets measured at fair value | 155,529 | 145,836 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 10,002 | 13,784 |
Recognized impairment loss in Income Statement | 0 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (1,709) | (787) |
Assets measured at fair value | 8,293 | 12,997 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 5,035 | 2,912 |
Recognized impairment loss in Income Statement | 0 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | (683) | (382) |
Assets measured at fair value | 4,352 | 2,530 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 1 | 1 |
Recognized impairment loss in Income Statement | 0 | |
Unrealized gain/(loss) accumulated in other comprehensive income/(loss) | 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 | Sep. 30, 2022 | Mar. 31, 2022 |
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 408,169 | $ 147,659 |
Margin lending receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 399,857 | 138,983 |
Receivables from brokerage clients | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 4,377 | 4,386 |
Long-term installments receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 1,287 | 1,367 |
Receivable from sale of securities | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 866 | 884 |
Bonds coupon receivable | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 636 | 0 |
Bank commissions receivable | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 499 | 598 |
Receivable for underwriting and market-making services | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 324 | 296 |
Dividends accrued | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 6 | 45 |
Other receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 2,913 | 3,207 |
Allowance for receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 2,596 | $ 2,107 |
BROKERAGE AND OTHER RECEIVABL_4
BROKERAGE AND OTHER RECEIVABLES NET - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Brokerage and other receivables due from related party | $ 327,487 | $ 102,680 |
Due from related party customer (in percent) | 82% | 70% |
Other receivables | $ (408,169) | $ (147,659) |
Allowance for receivables | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Other receivables | $ (2,596) | $ (2,107) |
LOANS ISSUED - Summary of loans
LOANS ISSUED - Summary of loans issued (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 357,357 | $ 92,446 | [1] |
Mortgage loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 249,133 | $ 51,924 | |
Weighted average interest rate | 9.16% | 11.86% | |
Fair Value of Collateral | $ 250,228 | $ 52,134 | |
Uncollateralized bank customer loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 83,475 | $ 34,067 | |
Weighted average interest rate | 18.85% | 17.56% | |
Fair Value of Collateral | $ 0 | $ 0 | |
Car loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 11,531 | ||
Weighted average interest rate | 26.76% | ||
Fair Value of Collateral | $ 11,738 | ||
Collateralized Bank customer loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 6,840 | ||
Weighted average interest rate | 1.55% | ||
Fair Value of Collateral | $ 6,840 | ||
Subordinated loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 5,122 | $ 1,256 | |
Weighted average interest rate | 4.89% | 7% | |
Fair Value of Collateral | $ 0 | $ 0 | |
Subordinated loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 1,013 | $ 5,033 | |
Weighted average interest rate | 12% | 4.89% | |
Fair Value of Collateral | $ 0 | $ 0 | |
Loans issued to policyholders | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 103 | $ 43 | |
Weighted average interest rate | 14.55% | 12.02% | |
Fair Value of Collateral | $ 180 | $ 284 | |
Other | |||
Financing Receivable, Past Due [Line Items] | |||
Loans issued | $ 140 | $ 123 | |
Weighted average interest rate | 2% | 2.50% | |
Fair Value of Collateral | $ 0 | $ 0 | |
[1]* Please see Note 3 |
LOANS ISSUED - Narrative (Detai
LOANS ISSUED - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | ||
Financing Receivable, Past Due [Line Items] | ||||||
Debt, weighted average interest rate, period term | 20 years | |||||
Other liabilities | $ 128,700,000 | $ 128,700,000 | $ 325,904,000 | |||
Loans issued | 357,357,000 | 357,357,000 | 92,446,000 | [1] | ||
Freedom Bank KZ | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Other liabilities | 150,340,000 | 150,340,000 | 6,447,000 | |||
FFIN Credit | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Payments to acquire loans | 18,115,000 | $ 14,204,000 | 74,796,000 | $ 19,474,000 | ||
Proceeds from Sale of Loans Held-for-sale | 9,713,000 | $ 2,860,000 | 19,545,000 | $ 2,860,000 | ||
Loans receivable | 87,543,000 | 87,543,000 | ||||
Loans receivable, allowance for credit loss | $ 4,137,000 | $ 4,137,000 | ||||
Bank customer loans loan | State mortgage program "7-20-25" | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Weighted average interest rate, over 20 year term | 7% | 7% | ||||
Weighted average interest rate, over 20 year term, transferred to program operator | 3% | 3% | ||||
Weighted average interest rate, over 20 year term, retained | 4% | 4% | ||||
Loans issued | $ 203,213,000 | $ 203,213,000 | ||||
Uncollateralized bank customer loans | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans issued | 83,475,000 | 83,475,000 | $ 34,067,000 | |||
Maximum amount of loans purchased, allowed to be sold back | $ 36,010,000 | $ 36,010,000 | ||||
[1]* Please see Note 3 |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Effective income tax rate | 18.90% | 12.50% | |
U.S. | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 21% | 21% | |
Russia | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 20% | 20% | |
Kazakhstan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 20% | 20% | |
Azerbaijan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 20% | 20% | |
Kyrgyzstan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 10% | 10% | |
Germany | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 31% | 31% | |
Cyprus | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 12.50% | 12.50% | |
Ukraine | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 18% | 18% | |
United Kingdom | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 25% | 25% | |
Armenia | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 18% | 18% | |
Uzbekistan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 15% | 15% |
SECURITIES REPURCHASE AGREEME_3
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Schedule of trading securities including collateralized securities subject to repurchase agreements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | $ 974,904 | $ 840,082 |
30-90 days | 6,286 | 142 |
Total contractual maturity | $ 981,190 | $ 840,224 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 14.48% | 11.96% |
Up to 30 days | $ 508,658 | $ 609,405 |
30-90 days | 6,286 | 142 |
Total contractual maturity | $ 514,944 | $ 609,547 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.94% | 10.85% |
Up to 30 days | $ 464,858 | $ 222,893 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 464,858 | $ 222,893 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 0.80% | 0.77% |
Up to 30 days | $ 1,388 | $ 7,396 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 1,388 | $ 7,396 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 14% | |
Up to 30 days | $ 388 | |
30-90 days | 0 | |
Total contractual maturity | $ 388 |
SECURITIES REPURCHASE AGREEME_4
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Fair value of collateral pledged under repurchase agreements | $ 989,306 | $ 834,583 |
CUSTOMER LIABILITIES - Schedule
CUSTOMER LIABILITIES - Schedule of customer liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Revenue, Major Customer [Line Items] | ||
Customer liabilities | $ 1,567,458 | $ 765,628 |
Brokerage customers | ||
Revenue, Major Customer [Line Items] | ||
Customer liabilities | 847,517 | 519,344 |
Banking customers | ||
Revenue, Major Customer [Line Items] | ||
Customer liabilities | $ 719,941 | $ 246,284 |
CUSTOMER LIABILITIES - Narrativ
CUSTOMER LIABILITIES - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Revenue, Major Customer [Line Items] | ||
Banking customer liabilities, current accounts | $ 356,092 | $ 155,494 |
Banking customer liabilities, deposits | 363,849 | 90,790 |
Freedom Bank KZ | ||
Revenue, Major Customer [Line Items] | ||
Insured bank deposits, price per client | 42 | |
Insured bank deposits | $ 96,785 | $ 42,697 |
TRADE PAYABLES - Schedule of Tr
TRADE PAYABLES - Schedule of Trade Payables (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Regulatory Liabilities [Line Items] | ||
Trade payables | $ 69,088 | $ 45,083 |
Margin lending payable | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 67,966 | 39,250 |
Trade payable for securities operations | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 448 | 462 |
Payables to suppliers of goods and services | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 18 | 4,462 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | $ 656 | $ 909 |
TRADE PAYABLES - Narrative (Det
TRADE PAYABLES - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Related Party Transaction [Line Items] | ||
Trade payables | $ 356,092 | $ 155,494 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Trade payables | $ 5,650 | $ 38,889 |
Trade payables due (in percent) | 8% | 86% |
SECURITIES SOLD, NOT YET PURC_3
SECURITIES SOLD, NOT YET PURCHASED AT FAIR VALUE - Schedule of Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Mar. 31, 2022 | |||
Investments, Debt and Equity Securities [Abstract] | ||||
Securities sold, not yet purchased at fair value, beginning balance | $ 13,865 | [1] | $ 8,569 | |
Short sales | 410 | 7,055 | ||
Repurchase | (7,665) | (346) | ||
Net gain on trading securities | 766 | (1,413) | ||
Securities sold, not yet purchased at fair value, ending balance | $ 7,376 | $ 13,865 | [1] | |
[1]* Please see Note 3 |
LOANS RECEIVED (Details)
LOANS RECEIVED (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2022 | Mar. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Amounts due from a single related party customer | $ 0 | |
Freedom Holding Corp. | ||
Line of Credit Facility [Line Items] | ||
Amounts due from a single related party customer | $ 3,622 | 3,538 |
Interest rate | 5% | |
Term | 26 months | |
Freedom Global | ||
Line of Credit Facility [Line Items] | ||
Amounts due from a single related party customer | $ 1,803 | 0 |
Interest rate | 3% | |
Term | 6 months | |
Freedom Finance Global and Freedom Holding Corp | ||
Line of Credit Facility [Line Items] | ||
Amounts due from a single related party customer | $ 5,425 | $ 3,538 |
LOANS RECEIVED - Narrative (Det
LOANS RECEIVED - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Line of Credit Facility [Line Items] | ||
Amounts due from a single related party customer | $ 0 | |
Accrued interest on loans | $ 334 | 238 |
Freedom Global | ||
Line of Credit Facility [Line Items] | ||
Amounts due from a single related party customer | $ 1,803 | $ 0 |
DEBT SECURITIES ISSUED - Summar
DEBT SECURITIES ISSUED - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt securities issued | $ 51,798 | $ 34,390 | [1] |
Freedom SPC | |||
Debt Instrument [Line Items] | |||
Debt securities issued | 30,184 | 13,203 | |
Freedom Holding Corp. | |||
Debt Instrument [Line Items] | |||
Debt securities issued | 20,500 | 20,499 | |
Accrued interest | |||
Debt Instrument [Line Items] | |||
Debt securities issued | $ 1,114 | $ 688 | |
[1]* Please see Note 3 |
DEBT SECURITIES ISSUED - Narrat
DEBT SECURITIES ISSUED - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
FRHC notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 7% | |
Debt instrument face amount | $ 20,500 | |
SPC Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument face amount | $ 30,184 | |
FRHC Loan | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | 5.50% |
Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 7% |
INSURANCE CONTRACTS ASSETS AN_3
INSURANCE CONTRACTS ASSETS AND LIABILITIES - Schedule of Insurance Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance receivables: | $ 6,235 | $ 3,949 | |
Less provision for impairment losses | (880) | (343) | |
Unearned premium reserve, reinsurers’ share | 4,714 | 143 | |
Reserves for claims and claims’ adjustment expenses, reinsurers’ share | 1,763 | 1,620 | |
Total | 12,712 | 5,712 | [1] |
Amounts due from policyholders | |||
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance receivable, gross | 6,061 | 3,500 | |
Claims receivable from reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance receivable, gross | 993 | 769 | |
Amounts due from reinsured | |||
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance receivable, gross | $ 61 | $ 23 | |
[1]* Please see Note 3 |
INSURANCE CONTRACTS ASSETS AN_4
INSURANCE CONTRACTS ASSETS AND LIABILITIES -Schedule of Insurance Payables (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance payables: | $ 4,611 | $ 3,068 | |
Unearned premium reserve | 31,535 | 17,985 | |
Reserves for claims and claims’ adjustment expenses | 113,931 | 98,437 | |
Liabilities from insurance activity | 150,077 | 119,490 | [1] |
Amounts payable to insured | |||
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance payables: | 1,768 | 685 | |
Amounts payable to reinsurers | |||
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance payables: | 2,109 | 402 | |
Amounts payable to agents and brokers | |||
Effects of Reinsurance [Line Items] | |||
Insurance and reinsurance payables: | $ 734 | $ 1,981 | |
[1]* Please see Note 3 |
NET GAIN ON TRADING SECURITIE_2
NET GAIN ON TRADING SECURITIES - Summary of net gain on trading securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Investments, Debt and Equity Securities [Abstract] | ||||||
Net gain recognized during the period on trading securities sold during the period | $ 3,498 | $ 36,395 | $ (8,232) | [1] | $ 41,966 | [1] |
Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date | 5,507 | 145,208 | 21,671 | 148,319 | ||
Net gain recognized during the period on trading securities | $ 9,005 | $ 181,603 | $ 13,439 | $ 190,285 | ||
[1]* Please see Note 4 |
NET GAIN ON TRADING SECURITIE_3
NET GAIN ON TRADING SECURITIES - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Number of equity securities exchanged | 11,500 | |
Sale of stock, number of shares issued in transaction (in shares) | 15,000 | |
Proceeds from issuance of private placement (in shares) | $ 155,673,000 | |
Gain on sale of equity securities | $ 179,015 | |
Realized gain on the sale of equity securities | 141,067 | |
Unrealized gain on the sale of equity securities | $ 37,948 |
FEE AND COMMISSION INCOME_EXPEN
FEE AND COMMISSION INCOME/EXPENSE-Schedule of commission income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Brokerage services | $ 75,343 | $ 89,313 | $ 158,943 | $ 162,548 |
Bank services | 5,779 | 1,029 | 9,592 | 1,733 |
Underwriting and market-making services | 1,587 | 1,780 | 3,230 | 4,004 |
Other fee and commission income | 448 | 903 | 838 | 2,855 |
Total fee and commission income | 83,157 | 93,025 | 172,603 | 171,140 |
Central Asia | ||||
Brokerage services | 11,512 | 2,091 | 15,115 | 3,652 |
Bank services | 5,779 | 1,029 | 9,592 | 1,733 |
Underwriting and market-making services | 1,587 | 1,780 | 3,230 | 4,004 |
Other fee and commission income | 189 | 366 | 322 | 2,133 |
Total fee and commission income | 19,067 | 5,266 | 28,259 | 11,522 |
Europe | ||||
Brokerage services | 62,781 | 86,057 | 141,644 | 156,762 |
Bank services | 0 | 0 | 0 | 0 |
Underwriting and market-making services | 0 | 0 | 0 | 0 |
Other fee and commission income | 259 | 537 | 516 | 722 |
Total fee and commission income | 63,040 | 86,594 | 142,160 | 157,484 |
U.S. | ||||
Brokerage services | 1,050 | 1,165 | 2,184 | 2,134 |
Bank services | 0 | 0 | 0 | 0 |
Underwriting and market-making services | 0 | 0 | 0 | 0 |
Other fee and commission income | 0 | 0 | 0 | 0 |
Total fee and commission income | 1,050 | 1,165 | 2,184 | 2,134 |
Middle East/Caucasus | ||||
Brokerage services | 0 | 0 | 0 | 0 |
Bank services | 0 | 0 | 0 | 0 |
Underwriting and market-making services | 0 | 0 | 0 | 0 |
Other fee and commission income | 0 | 0 | 0 | 0 |
Total fee and commission income | $ 0 | $ 0 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) issuer | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | ||
Fair Value, Separate Account Investment [Line Items] | |||||||
Commission income | $ 61,149 | $ 80,627 | $ 136,749 | $ 149,152 | |||
Fee and commission income from related party as a percentage of related party commission income | 96% | ||||||
Commission expenses | 196 | 5,227 | 353 | $ 10,527 | |||
Interest Income, Related Party | 7,392 | 1,109 | 10,920 | 1,264 | |||
Restricted stock based compensation expense | 302 | 385 | 683 | 565 | |||
Cash and cash equivalents | 790,390 | $ 184,523 | 790,390 | 184,523 | $ 225,464 | ||
Bank commission receivables and receivables from brokerage clients from related parties | 64 | 190 | |||||
Margin lending receivables | 335,992 | 335,992 | 107,649 | ||||
Lending payables | 5,650 | 5,650 | 38,889 | ||||
Accounts payable due to a related party | 211 | $ 211 | 313 | ||||
Number of businesses acquired | issuer | 2 | ||||||
Amounts due from a single related party customer | 0 | ||||||
Customer liabilities | 128,700 | $ 128,700 | 325,904 | ||||
Payments to acquire loans held-for-investment | [1] | 74,796 | $ 19,677 | ||||
Ownership interest sold during the period | 23.88% | ||||||
Proceeds from equity interest | $ 415 | ||||||
Brokerage accounts | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Financial liability with related parties | 0 | 0 | 1,637 | ||||
Restricted customer cash | $ 246,965 | $ 246,965 | $ 222,651 | ||||
FFIN Brokerage | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Fee and commission income from related party as a percentage of related party commission income | 100% | 92% | 56% | ||||
Commission expense from related party as a percentage of related party commission expense | 20% | 12% | 21% | 31% | |||
Margin lending receivables from related party as a percentage of related party margin lending receivables | 97% | 97% | 95% | ||||
Margin lending payables from related party as a percentage of related party margin lending payables | 100% | 100% | 100% | ||||
Other liabilities from related party as a percentage of related party other liabilities | 52% | 52% | 54% | ||||
Restricted customer cash from related party as a percentage of related party Restricted customer cash | 83% | 83% | 78% | ||||
Freedom Life and Freedom Insurance | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Due to related parties | $ 23,751 | $ 23,751 | $ 15,852 | ||||
Freedom Global | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Amounts due from a single related party customer | (1,803) | (1,803) | 0 | ||||
FFIN Credit | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Payments to acquire loans held-for-investment | 74,796 | ||||||
Proceeds from Sale of Loans Held-for-sale | 19,545 | ||||||
Wisdompoint Capital LTD | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Cash and cash equivalents | $ 21,331 | $ 21,331 | $ 22,787 | ||||
Related party, cash and cash equivalents held in brokerage, percent | 100% | 100% | 100% | ||||
FFIN Brokerage Services, Inc. | |||||||
Fair Value, Separate Account Investment [Line Items] | |||||||
Percentage Of Interest Income, Related Party | 100% | 100% | |||||
[1]* Please see Note 4 |
STOCKHOLDERS EQUITY (Details)
STOCKHOLDERS EQUITY (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 30, 2022 individual shares | May 18, 2021 issuer individual shares | May 31, 2022 company | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of companies acquired | company | 2 | ||||||
Sale of Freedom Finance Ukraine LLC shares | $ 416 | $ 416 | |||||
Contribution of shareholder | 700 | $ 677 | 1,966 | ||||
Restricted stock grants (in shares) | shares | 7,500 | 1,031,500 | |||||
Number of individuals | 1 | 56 | |||||
Stock based compensation | $ 3,103 | 4,562 | 6,801 | 6,723 | |||
Compensation expense | 3,103 | 4,561 | |||||
Executive officers | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of individuals | individual | 2 | ||||||
Share-based payment arrangement, tranche one | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | shares | 3,000 | 200,942 | |||||
Vesting period (in years) | 1 year | ||||||
Share-based payment arrangement, tranche two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | shares | 1,500 | 211,658 | |||||
Vesting period (in 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) | shares | 1,500 | 206,300 | |||||
Vesting period (in years) | 4 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 compensation award tranche four | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | shares | 1,500 | ||||||
Additional paid in capital | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Sale of Freedom Finance Ukraine LLC shares | (796) | (796) | |||||
Contribution of shareholder | 0 | 700 | 677 | 1,966 | |||
Stock based compensation | $ 3,103 | $ 4,561 | $ 6,801 | $ 6,722 | |||
Freedom Life | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of voting interests acquired | 100% | ||||||
Freedom Insurance | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of voting interests acquired | 100% |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||
Compensation expense | $ 3,103 | $ 4,561 | ||
Unrecognized compensation cost | $ 17,094 | $ 17,094 | $ 24,731 | |
Weighted average period | 3 years 9 months 25 days |
STOCK BASED COMPENSATION - Sche
STOCK BASED COMPENSATION - Schedule of fair value of restricted shares awarded using the Monte Carlo valuation model (Details) - Monte Carlo | 6 Months Ended |
Sep. 30, 2022 | |
Class of Warrant or Right [Line Items] | |
Term (years) | 5 years |
Volatility | 41.50% |
Risk-free rate | 0.06% |
STOCK BASED COMPENSATION - Sc_2
STOCK BASED COMPENSATION - Schedule of the activity of the company's restricted stock outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | |
Shares | |||
Restricted stock outstanding, beginning balance (in shares) | 1,049,500 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (224,942) | ||
Forfeited/cancelled/expired (in shares) | (32,000) | ||
Restricted stock outstanding, ending balance (in shares) | 792,558 | 792,558 | |
Weighted Average Fair Value | |||
Weighted average fair value, beginning balance | $ 40,303 | ||
Weighted average exercise price granted | $ 0 | ||
Weighted average exercise price vested | (7,688) | ||
Weighted average exercise price forfeited/cancelled/expired | $ (2,678) | ||
Weighted average fair value, ending balance | $ 29,937 |
LEASES - Schedule of lease rela
LEASES - Schedule of lease related assets and liabilities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 13,602 |
Operating lease liability | $ 13,348 |
LEASES - Schedule of lease obli
LEASES - Schedule of lease obligations (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2023 | $ 2,505 |
2024 | 3,555 |
2025 | 2,922 |
2026 | 2,409 |
2027 | 1,681 |
Thereafter | 3,607 |
Total payments | 16,679 |
Less: amounts representing interest | 3,331 |
Lease liability, net | $ 13,348 |
Weighted average remaining lease term (in months) | 23 months |
Weighted average discount rate | 12% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Short term operating lease | $ 296 | |||
Rent expense for office space | $ 573 | $ 398 | $ 1,116 | $ 550 |
ACQUISITIONS AND DISPOSAL OF _3
ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 01, 2022 |
London Almaty | ||
Asset Acquisition [Line Items] | ||
Business acquisition, percentage of outstanding shares | 100% | |
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ 15,858 | |
Ticketon | ||
Asset Acquisition [Line Items] | ||
Business acquisition, percentage of outstanding shares | 100% | |
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ (172) |
ACQUISITIONS AND DISPOSAL OF _4
ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES - Schedule of Net Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 01, 2022 | Mar. 31, 2022 | [1] |
ASSETS | ||||
Goodwill | $ 9,512 | $ 5,898 | ||
London Almaty | ||||
ASSETS | ||||
Cash and cash equivalents | $ 8,077 | |||
Due from banks | 2,176 | |||
Trading securities | 6,178 | |||
Value of business acquired | 1,677 | |||
Assets from insurance activities | 3,401 | |||
Fixed assets | 806 | |||
Intangible assets | 127 | |||
Other assets | 1,505 | |||
TOTAL ASSETS | 23,947 | |||
Insurance reserves | 6,380 | |||
Liabilities from insurance activity | 1,429 | |||
Other liabilities | 280 | |||
TOTAL LIABILITIES | 8,089 | |||
Net assets acquired | 15,858 | |||
Goodwill | 485 | |||
Total purchase price | $ 16,343 | |||
Ticketon | ||||
ASSETS | ||||
Cash and cash equivalents | 3,029 | |||
Brokerage and other receivables | 169 | |||
Fixed assets | 20 | |||
Intangible assets | 33 | |||
Right-of-use asset | 63 | |||
Other assets | 606 | |||
TOTAL ASSETS | 3,920 | |||
Other liabilities | 3,995 | |||
Deferred income tax liabilities | 34 | |||
Lease liability | 63 | |||
TOTAL LIABILITIES | 4,092 | |||
Net assets acquired | (172) | |||
Goodwill | 3,172 | |||
Total purchase price | $ 3,000 | |||
[1]* Please see Note 3 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Thousands, ₽ in Billions | 3 Months Ended | 6 Months Ended | |||||
Oct. 17, 2022 USD ($) | Oct. 17, 2022 RUB (₽) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Translation difference | $ (16,663) | $ 1,181 | $ 5,316 | $ 4,203 | |||
Discontinued operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Less: valuation allowance | $ (41,464) | (41,464) | $ 0 | ||||
Subsequent event | Freedom Finance JSC | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Subsidiary ownership interest | 90.43% | 90.43% | |||||
Subsequent event | Freedom KZ | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Subsidiary ownership interest | 100% | 100% | |||||
Freedom RU | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Translation difference | $ 642 | ||||||
Freedom RU | Subsequent event | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Discontinued operation, equity method investment retained after disposal, ownership interest prior to disposal | 100% | 100% | |||||
Discontinued operations, outstanding deferred payment | $ 115,000 | ₽ 6.6 | |||||
Cash payment | $ 140,000 |
Discontinued Operations - Balan
Discontinued Operations - Balance sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 790,390 | $ 225,464 | [1] |
Restricted cash | 440,030 | 547,950 | [1] |
Trading securities | 1,359,544 | 1,158,377 | [1] |
Brokerage and other receivables, net | 408,169 | 147,659 | [1] |
Loans issued | 357,357 | 92,446 | [1] |
Other assets | 62,042 | 26,136 | [1] |
TOTAL ASSETS | 4,784,365 | 3,227,750 | [1] |
Customer liabilities | 1,567,458 | 765,628 | [1] |
Securities repurchase agreement obligations | 981,190 | 840,224 | [1] |
Debt securities issued | 51,798 | 34,390 | [1] |
Other liabilities | 170,078 | 15,852 | [1] |
TOTAL LIABILITIES | 4,163,034 | 2,681,142 | [1] |
Discontinued operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 712,116 | 428,480 | |
Restricted cash | 19,040 | 28,406 | |
Trading securities | 120,162 | 122,497 | |
Brokerage and other receivables, net | 249,980 | 210,087 | |
Loans issued | 14,464 | 2,395 | |
Other assets | 41,317 | 33,554 | |
Less: valuation allowance | (41,464) | 0 | |
TOTAL ASSETS | 1,115,615 | 825,419 | |
Customer liabilities | 966,869 | 701,584 | |
Securities repurchase agreement obligations | 30,961 | 32,469 | |
Debt securities issued | 64,647 | 64,637 | |
Other liabilities | 27,403 | 13,788 | |
TOTAL LIABILITIES | 1,089,880 | $ 812,478 | |
Discontinued operations | Pre-elimination balance | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 712,116 | ||
Restricted cash | 19,040 | ||
Trading securities | 120,162 | ||
Brokerage and other receivables, net | 249,980 | ||
Loans issued | 14,464 | ||
Other assets | 41,363 | ||
TOTAL ASSETS | 1,272,082 | ||
Customer liabilities | 966,869 | ||
Securities repurchase agreement obligations | 30,961 | ||
Debt securities issued | 64,647 | ||
Other liabilities | 27,499 | ||
TOTAL LIABILITIES | $ 1,089,976 | ||
[1]* Please see Note 3 |
Discontinued Operations - Resul
Discontinued Operations - Results of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fee and commission income | $ 83,157 | $ 93,025 | $ 172,603 | $ 171,140 |
Debt Securities, Trading, Gain (Loss) | 9,005 | 181,603 | 13,439 | 190,285 |
Investment Income, Interest | 58,999 | 26,619 | 107,562 | 48,857 |
Foreign Currency Transaction Gain (Loss), before Tax | 4,555 | 1,508 | 9,148 | 2,716 |
Total revenue, net | 180,312 | 317,499 | 352,261 | 441,728 |
Fee and commission expense | 18,439 | 22,651 | 41,754 | 43,844 |
Interest expense | 40,863 | 16,716 | 80,934 | 30,962 |
Operating expense | 37,760 | 21,770 | 75,759 | 41,191 |
Provision for impairment losses/(recoveries) | 3,726 | 978 | 6,154 | 1,245 |
Provision for impairment of discontinued operations | 41,464 | |||
Other expense, net | 192 | 786 | (368) | 795 |
TOTAL EXPENSE | 118,455 | 76,414 | 238,400 | 142,846 |
INCOME BEFORE INCOME TAX | 61,857 | 241,085 | 113,861 | 298,882 |
Discontinued operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fee and commission income | 17,395 | 19,432 | 48,060 | 36,450 |
Debt Securities, Trading, Gain (Loss) | 1,950 | (5,164) | 13,099 | (3,105) |
Investment Income, Interest | 17,440 | 5,114 | 29,861 | 9,788 |
Foreign Currency Transaction Gain (Loss), before Tax | 19,989 | (3) | 20,414 | (2,235) |
Total revenue, net | 56,774 | 19,379 | 111,434 | 40,898 |
Fee and commission expense | 2,324 | 2,159 | 4,250 | 4,226 |
Interest expense | 4,261 | 2,210 | 10,019 | 4,459 |
Operating expense | 26,072 | 17,764 | 53,540 | 31,587 |
Provision for impairment losses/(recoveries) | 212 | 50 | 582 | 76 |
Provision for impairment of discontinued operations | 41,464 | 0 | 41,464 | 0 |
Other expense, net | 743 | (25) | 779 | 92 |
TOTAL EXPENSE | 75,076 | 22,158 | 110,634 | 40,440 |
INCOME BEFORE INCOME TAX | $ (18,302) | $ (2,779) | $ 800 | $ 458 |
Discontinued Operations - Cash
Discontinued Operations - Cash flow statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||||
Cash Flows From Operating Activities | |||||||
Net (loss)/income from discontinued operations | $ (22,026) | $ (2,250) | $ (6,080) | [1] | $ 449 | [1] | |
Depreciation and amortization | [1] | 1,817 | 1,915 | ||||
Noncash lease expense | [1] | 2,047 | 1,568 | ||||
Change in deferred taxes | [1] | (1,763) | 2,431 | ||||
Stock compensation expense | [1] | 3,581 | 3,365 | ||||
Net gain recognized during the period on trading securities sold during the period | $ 3,498 | $ 36,395 | (8,232) | [1] | 41,966 | [1] | |
Net change in accrued interest | [1] | (20,855) | (21,137) | ||||
Change in insurance reserves | [1] | 30,627 | 25,138 | ||||
Allowances for receivables | [1] | 6,154 | 1,245 | ||||
Trading securities | [1] | (223,540) | (181,734) | ||||
Brokerage and other receivables | [1] | (263,107) | (189,970) | ||||
Other assets | [1] | (33,322) | (4,316) | ||||
Securities sold, not yet purchased – at fair value | [1] | (6,489) | 6,719 | ||||
Customer liabilities | [1] | 329,496 | 110,815 | ||||
Current income tax liability | [1] | 4,537 | 19,684 | ||||
Trade payables | [1] | 20,490 | 26,575 | ||||
Lease liabilities | [1] | (2,453) | (1,654) | ||||
Other liabilities | [1] | 4,521 | (186) | ||||
Net cash flows from operating activities from discontinued operations | [1] | 29,583 | 5,605 | ||||
Cash Flows Used In Investing Activities | |||||||
Purchase of fixed assets | [1] | (17,295) | (2,776) | ||||
Proceeds from sale of fixed assets | [1] | 36 | 167 | ||||
Net cash flows used in investing activities from continuing operations | [1] | (311,114) | (65,781) | ||||
Discontinued operations | |||||||
Cash Flows From Operating Activities | |||||||
Net (loss)/income from discontinued operations | (6,080) | 449 | |||||
Depreciation and amortization | 1,143 | 993 | |||||
Noncash lease expense | 3,289 | 2,453 | |||||
Change in deferred taxes | 6,234 | (929) | |||||
Stock compensation expense | 3,220 | 3,358 | |||||
Net gain recognized during the period on trading securities sold during the period | (20,382) | 4,228 | |||||
Net change in accrued interest | 682 | (1,203) | |||||
Change in insurance reserves | 41,464 | 0 | |||||
Allowances for receivables | 155 | 0 | |||||
Trading securities | 81,229 | (24,850) | |||||
Brokerage and other receivables | 56,513 | (59,162) | |||||
Other assets | 360 | (843) | |||||
Securities sold, not yet purchased – at fair value | 244 | (24) | |||||
Customer liabilities | (142,647) | 81,632 | |||||
Current income tax liability | 0 | (582) | |||||
Trade payables | 93 | 2,725 | |||||
Lease liabilities | (3,721) | (2,603) | |||||
Other liabilities | 7,787 | (37) | |||||
Net cash flows from operating activities from discontinued operations | 29,583 | 5,605 | |||||
Cash Flows Used In Investing Activities | |||||||
Purchase of fixed assets | (2,560) | (1,066) | |||||
Proceeds from sale of fixed assets | 750 | 0 | |||||
Loans issued | (10,263) | 595 | |||||
Net cash flows used in investing activities from continuing operations | $ (12,073) | $ (471) | |||||
[1]* Please see Note 4 |
Discontinued Operations - Provi
Discontinued Operations - Provision for impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash and cash equivalents | $ 790,390 | $ 790,390 | $ 225,464 | [1] | ||
Restricted cash | 440,030 | 440,030 | 547,950 | [1] | ||
Trading securities | 1,359,544 | 1,359,544 | 1,158,377 | [1] | ||
Brokerage and other receivables, net | 408,169 | 408,169 | 147,659 | [1] | ||
Loans issued | 357,357 | 357,357 | 92,446 | [1] | ||
Other assets | 62,042 | 62,042 | 26,136 | [1] | ||
TOTAL ASSETS | 4,784,365 | 4,784,365 | 3,227,750 | [1] | ||
Customer liabilities | 1,567,458 | 1,567,458 | 765,628 | [1] | ||
Securities repurchase agreement obligations | 981,190 | 981,190 | 840,224 | [1] | ||
Debt securities issued | 51,798 | 51,798 | 34,390 | [1] | ||
Other liabilities | 170,078 | 170,078 | 15,852 | [1] | ||
TOTAL LIABILITIES | 4,163,034 | 4,163,034 | 2,681,142 | [1] | ||
Unrealized gain from cumulative translation adjustment | (642) | (642) | ||||
Adjusted net assets held for sale | 181,464 | 181,464 | ||||
Expected selling price | 140,000 | 140,000 | ||||
Provision for impairment of discontinued operations | (41,464) | |||||
Pre-elimination balance | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net assets held for sale | 182,106 | 182,106 | ||||
Post-elimination balance | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net assets held for sale | 67,199 | 67,199 | ||||
Discontinued operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash and cash equivalents | 712,116 | 712,116 | 428,480 | |||
Restricted cash | 19,040 | 19,040 | 28,406 | |||
Trading securities | 120,162 | 120,162 | 122,497 | |||
Brokerage and other receivables, net | 249,980 | 249,980 | 210,087 | |||
Loans issued | 14,464 | 14,464 | 2,395 | |||
Other assets | 41,317 | 41,317 | 33,554 | |||
TOTAL ASSETS | 1,115,615 | 1,115,615 | 825,419 | |||
Customer liabilities | 966,869 | 966,869 | 701,584 | |||
Securities repurchase agreement obligations | 30,961 | 30,961 | 32,469 | |||
Debt securities issued | 64,647 | 64,647 | 64,637 | |||
Other liabilities | 27,403 | 27,403 | 13,788 | |||
TOTAL LIABILITIES | 1,089,880 | 1,089,880 | $ 812,478 | |||
Provision for impairment of discontinued operations | (41,464) | $ 0 | (41,464) | $ 0 | ||
Discontinued operations | Pre-elimination balance | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash and cash equivalents | 712,116 | 712,116 | ||||
Restricted cash | 19,040 | 19,040 | ||||
Trading securities | 120,162 | 120,162 | ||||
Brokerage and other receivables, net | 249,980 | 249,980 | ||||
Loans issued | 14,464 | 14,464 | ||||
Other assets | 41,363 | 41,363 | ||||
Investment in subsidiaries | 114,957 | 114,957 | ||||
TOTAL ASSETS | 1,272,082 | 1,272,082 | ||||
Customer liabilities | 966,869 | 966,869 | ||||
Securities repurchase agreement obligations | 30,961 | 30,961 | ||||
Debt securities issued | 64,647 | 64,647 | ||||
Other liabilities | 27,499 | 27,499 | ||||
TOTAL LIABILITIES | 1,089,976 | 1,089,976 | ||||
Discontinued operations | Eliminations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Trading securities | 0 | 0 | ||||
Brokerage and other receivables, net | 0 | 0 | ||||
Loans issued | 0 | 0 | ||||
Other assets | (46) | (46) | ||||
Investment in subsidiaries | (114,957) | (114,957) | ||||
TOTAL ASSETS | (115,003) | (115,003) | ||||
Customer liabilities | 0 | 0 | ||||
Securities repurchase agreement obligations | 0 | 0 | ||||
Debt securities issued | 0 | 0 | ||||
Other liabilities | (96) | (96) | ||||
TOTAL LIABILITIES | (96) | (96) | ||||
Discontinued operations | Post-elimination balance | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash and cash equivalents | 712,116 | 712,116 | ||||
Restricted cash | 19,040 | 19,040 | ||||
Trading securities | 120,162 | 120,162 | ||||
Brokerage and other receivables, net | 249,980 | 249,980 | ||||
Loans issued | 14,464 | 14,464 | ||||
Other assets | 41,317 | 41,317 | ||||
Investment in subsidiaries | 0 | 0 | ||||
TOTAL ASSETS | 1,157,079 | 1,157,079 | ||||
Customer liabilities | 966,869 | 966,869 | ||||
Securities repurchase agreement obligations | 30,961 | 30,961 | ||||
Debt securities issued | 64,647 | 64,647 | ||||
Other liabilities | 27,403 | 27,403 | ||||
TOTAL LIABILITIES | $ 1,089,880 | $ 1,089,880 | ||||
[1]* Please see Note 3 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments under lines of credits and guarantees | $ 11,229 | $ 11,292 |
Bank guarantees | 3,541 | 6,384 |
Total | $ 14,770 | $ 17,676 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2022 office segment | Mar. 31, 2022 segment | |
Segment Reporting Information [Line Items] | ||
Number of segments | segment | 1 | 5 |
Middle East/Caucasus | ||
Segment Reporting Information [Line Items] | ||
Number of offices | office | 3 |
SEGMENT REPORTING - Results by
SEGMENT REPORTING - Results by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |||
Segment Reporting Information [Line Items] | ||||||
Fee and commission income | $ 83,157 | $ 93,025 | $ 172,603 | $ 171,140 | ||
Debt Securities, Trading, Gain (Loss) | 9,005 | 181,603 | 13,439 | 190,285 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 716 | (622) | 123 | (653) | ||
Investment Income, Interest | 58,999 | 26,619 | 107,562 | 48,857 | ||
Insurance underwriting income | 26,200 | 16,022 | 50,440 | 30,098 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 4,555 | 1,508 | 9,148 | 2,716 | ||
Derivative, Gain (Loss) on Derivative, Net | (2,320) | (656) | (1,054) | (715) | ||
Total revenue, net | 180,312 | 317,499 | 352,261 | 441,728 | ||
Fee and commission expense | 18,439 | 22,651 | 41,754 | 43,844 | ||
Interest expense | 40,863 | 16,716 | 80,934 | 30,962 | ||
Insurance claims incurred, net of reinsurance | 17,475 | 13,513 | 34,167 | 24,809 | ||
Operating expense | 37,760 | 21,770 | 75,759 | 41,191 | ||
Provision for impairment losses/(recoveries) | 3,726 | 978 | 6,154 | 1,245 | ||
Other expense/(income), net | 192 | 786 | (368) | 795 | ||
TOTAL EXPENSE | 142,846 | |||||
TOTAL EXPENSE | 118,455 | 76,414 | 238,400 | 142,846 | ||
INCOME BEFORE INCOME TAX | 61,857 | 241,085 | 113,861 | 298,882 | ||
Income tax expense | (12,619) | (32,094) | (21,498) | (37,220) | ||
INCOME FROM CONTINUING OPERATIONS | 49,238 | 208,991 | 92,363 | [1] | 261,662 | [1] |
Total stock based compensation | 1,704 | 2,271 | 3,581 | 3,365 | ||
Central Asia | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and commission income | 19,067 | 5,266 | 28,259 | 11,522 | ||
Debt Securities, Trading, Gain (Loss) | 15,828 | 2,756 | 37,417 | 11,698 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 716 | (622) | 123 | (653) | ||
Investment Income, Interest | 46,275 | 24,206 | 85,185 | 45,035 | ||
Insurance underwriting income | 26,200 | 16,022 | 50,440 | 30,098 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 7,601 | 1,304 | 11,869 | 2,774 | ||
Derivative, Gain (Loss) on Derivative, Net | (2,320) | (656) | (1,054) | (715) | ||
Total revenue, net | 113,367 | 48,276 | 212,239 | 99,759 | ||
Fee and commission expense | 11,812 | 2,123 | 22,527 | 4,654 | ||
Interest expense | 34,562 | 14,490 | 66,530 | 26,758 | ||
Insurance claims incurred, net of reinsurance | 17,475 | 13,513 | 34,167 | 24,809 | ||
Operating expense | 21,715 | 12,206 | 42,482 | 23,081 | ||
Provision for impairment losses/(recoveries) | 3,732 | 978 | 6,164 | 1,233 | ||
Other expense/(income), net | 94 | 794 | (407) | 800 | ||
TOTAL EXPENSE | 81,335 | |||||
TOTAL EXPENSE | 89,390 | 44,104 | 171,463 | |||
INCOME BEFORE INCOME TAX | 23,977 | 4,172 | 40,776 | 18,424 | ||
Income tax expense | (534) | 135 | (596) | 22 | ||
INCOME FROM CONTINUING OPERATIONS | 23,443 | 4,307 | 40,180 | 18,446 | ||
Total stock based compensation | 1,036 | 1,384 | 2,138 | 2,032 | ||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and commission income | 63,040 | 86,594 | 142,160 | 157,484 | ||
Debt Securities, Trading, Gain (Loss) | (7,210) | 178,951 | (22,634) | 178,993 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 0 | 0 | 0 | 0 | ||
Investment Income, Interest | 10,177 | 2,400 | 15,388 | 3,762 | ||
Insurance underwriting income | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | (2,400) | 166 | (1,830) | (60) | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 | ||
Total revenue, net | 63,607 | 268,111 | 133,084 | 340,179 | ||
Fee and commission expense | 6,474 | 20,360 | 18,901 | 38,840 | ||
Interest expense | 2,964 | 1,805 | 5,660 | 3,503 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 | ||
Operating expense | 10,534 | 4,952 | 22,099 | 9,744 | ||
Provision for impairment losses/(recoveries) | (1) | 0 | (2) | 12 | ||
Other expense/(income), net | 101 | (8) | 97 | (5) | ||
TOTAL EXPENSE | 52,094 | |||||
TOTAL EXPENSE | 20,072 | 27,109 | 46,755 | |||
INCOME BEFORE INCOME TAX | 43,535 | 241,002 | 86,329 | 288,085 | ||
Income tax expense | (6,623) | (8,152) | (13,846) | (14,014) | ||
INCOME FROM CONTINUING OPERATIONS | 36,912 | 232,850 | 72,483 | 274,071 | ||
Total stock based compensation | 135 | 196 | 291 | 288 | ||
U.S. | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and commission income | 1,050 | 1,165 | 2,184 | 2,134 | ||
Debt Securities, Trading, Gain (Loss) | 387 | (104) | (1,344) | (406) | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 0 | 0 | 0 | 0 | ||
Investment Income, Interest | 2,547 | 13 | 6,989 | 60 | ||
Insurance underwriting income | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | (665) | 38 | (899) | 2 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 | ||
Total revenue, net | 3,319 | 1,112 | 6,930 | 1,790 | ||
Fee and commission expense | 144 | 168 | 297 | 350 | ||
Interest expense | 3,337 | 421 | 8,744 | 701 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 | ||
Operating expense | 5,093 | 4,583 | 10,360 | 8,372 | ||
Provision for impairment losses/(recoveries) | (5) | 0 | (8) | 0 | ||
Other expense/(income), net | (3) | 0 | (8) | 0 | ||
TOTAL EXPENSE | 9,423 | |||||
TOTAL EXPENSE | 8,566 | 5,172 | 19,385 | |||
INCOME BEFORE INCOME TAX | (5,247) | (4,060) | (12,455) | (7,633) | ||
Income tax expense | (5,472) | (24,077) | (7,077) | (23,228) | ||
INCOME FROM CONTINUING OPERATIONS | (10,719) | (28,137) | (19,532) | (30,861) | ||
Total stock based compensation | 533 | 691 | 1,152 | 1,045 | ||
Middle East/Caucasus | ||||||
Segment Reporting Information [Line Items] | ||||||
Fee and commission income | 0 | 0 | 0 | 0 | ||
Debt Securities, Trading, Gain (Loss) | 0 | 0 | 0 | 0 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 0 | 0 | 0 | 0 | ||
Investment Income, Interest | 0 | 0 | 0 | 0 | ||
Insurance underwriting income | 0 | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), before Tax | 19 | 0 | 8 | 0 | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 | 0 | ||
Total revenue, net | 19 | 0 | 8 | 0 | ||
Fee and commission expense | 9 | 0 | 29 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 | ||
Operating expense | 418 | 29 | 818 | |||
Operating expense | (6) | |||||
Provision for impairment losses/(recoveries) | 0 | 0 | 0 | 0 | ||
Other expense/(income), net | 0 | 0 | (50) | 0 | ||
TOTAL EXPENSE | (6) | |||||
TOTAL EXPENSE | 427 | 29 | 797 | |||
INCOME BEFORE INCOME TAX | (408) | (29) | (789) | 6 | ||
Income tax expense | 10 | 0 | 21 | 0 | ||
INCOME FROM CONTINUING OPERATIONS | (398) | (29) | (768) | 6 | ||
Total stock based compensation | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1]* Please see Note 4 |
SEGMENT REPORTING - Net assets
SEGMENT REPORTING - Net assets by segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 4,784,365 | $ 3,227,750 | [1] |
Total liabilities | 4,163,034 | 2,681,142 | [1] |
Net assets | 621,331 | 546,608 | |
Central Asia | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,837,687 | 1,423,529 | |
Total liabilities | 2,561,607 | 1,203,473 | |
Net assets | 276,080 | 220,056 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total assets | 685,110 | 805,768 | |
Total liabilities | 373,466 | 489,883 | |
Net assets | 311,644 | 315,885 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Total assets | 143,833 | 172,679 | |
Total liabilities | 137,716 | 175,136 | |
Net assets | 6,117 | (2,457) | |
Russia | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,115,615 | 825,419 | |
Total liabilities | 1,089,880 | 812,478 | |
Net assets | 25,735 | 12,941 | |
Middle East/Caucasus | |||
Segment Reporting Information [Line Items] | |||
Total assets | 2,120 | 355 | |
Total liabilities | 365 | 172 | |
Net assets | $ 1,755 | $ 183 | |
[1]* Please see Note 3 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Oct. 19, 2022 | Nov. 11, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | [1] |
Subsequent Event [Line Items] | |||||
Total assets | $ 4,784,365 | $ 3,227,750 | |||
Total liabilities | $ 4,163,034 | $ 2,681,142 | |||
Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Period of suspended brokerage license | 5 years | ||||
Subsequent event | Freedom KZ | |||||
Subsequent Event [Line Items] | |||||
Percentage of voting interests acquired | 90.43% | ||||
[1]* Please see Note 3 |