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SEGMENT REPORTING
 12 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company historically operated as a single operating segment. With the planned restructuring of the Company's operations and divestiture of Russian subsidiaries, coupled with the continued expansion, there was an election to reorganize operations geographically into five regional segments: Central Asia, Europe, United States, Middle East/Caucasus, and Russia (until completion of the planned divestiture). Moving forward after completion of the divestiture of the Company's Russian subsidiaries, the Company will manage its operations in the remaining four regional segments. These operating segments are based on how our CODM will be making decisions about allocating resources and assessing performance.
The following tables summarize the Company's Statement of operation by its geographic segments. Intercompany balances were eliminated for separate disclosure:
Year ended March 31, 2022
STATEMENTS OF OPERATIONS
Central AsiaEuropeUSRussiaMiddle East/CaucasusTotal
Fee and commission income(1)
$25,253 $319,810 $4,545 $82,330 — $431,938 
Net gain/(loss) on trading securities11,604 122,238 2,546 (58,717)— 77,671 
Interest income74,251 1,256 483 15,811 — 91,801 
Net gain/(loss) on foreign exchange operations6,012 (5,598)1,565 (39,672)— (37,693)
Net gain/(loss) on derivative947 — — (1)— 946 
TOTAL REVENUE, NET118,067 437,706 9,139 (249)— 564,663 
Interest expense$54,894 $8,747 $1,808 $10,450 — $75,899 
Fee and commission expense7,945 64,518 780 7,988 — 81,231 
Operating expense46,807 27,746 13,727 73,030 283 161,593 
Provision for impairment losses/(recoveries)2,180 60 — 745 — 2,985 
Other expense/(income), net490 7 819 4,748 (3)6,061 
TOTAL EXPENSE112,316 101,078 17,134 96,961 280 327,769 
NET INCOME BEFORE INCOME TAX$5,751 $336,628 $(7,995)$(97,210)(280)$236,894 
Income tax (expense)/benefit1,237 (26,785)(12,989)13,003 9 (25,525)
NET PROFIT/(LOSS)$6,988 $309,843 $(20,984)$(84,207)(271)$211,369 
Year ended March 31, 2021
STATEMENTS OF OPERATIONS
Central AsiaEuropeUSRussiaMiddle East CaucasusTotal
Fee and commission income(1)
$17,088 $200,975 $1,130 $52,746 — $271,939 
Net gain on financial instruments through profit and loss18,414 8 7,489 20,275 — 46,186 
Interest income18,465 505 682 11,221 — 30,873 
Net gain/(loss) on foreign exchange operations1,669 (300)(215)2,274 — 3,428 
Net gain on derivative86 — — 39 — 125 
TOTAL REVENUE, NET$55,722 $201,188 $9,086 $86,555 — $352,551 
Interest expense$12,770 $3,663 $2,173 $8,760 — $27,366 
Fee and commission expense1,211 64,487 246 7,156 — 73,100 
Operating expense19,677 10,921 4,843 41,978 15 77,434 
Provision for impairment losses 1,013 108 395 45 — 1,561 
Other (expense)/income, net(39)(3)(15)125 — 68 
TOTAL EXPENSE$34,632 $79,176 $7,642 $58,064 15 $179,529 
NET INCOME BEFORE INCOME TAX$21,090 $122,012 $1,444 $28,491 (15)$173,022 
Income tax (expense)/benefit56 (14,013)(9,559)(6,582)— (30,098)
NET PROFIT/(LOSS)$21,146 $107,999 $(8,115)$21,909 (15)$142,924 
Year ended March 31, 2020
STATEMENTS OF OPERATIONS
Central AsiaEuropeUSRussiaMiddle East CaucasusTotal
Fee and commission income(1)
$2,689 $63,577 $— $26,402 — $92,668 
Net gain/(loss) on financial instruments through profit and loss8,121 257 (46)6,591 — 14,923 
Interest income7,932 260 198 3,744 — 12,134 
Net gain/(loss) on foreign exchange operations479 (313)84 2,065 — 2,315 
Net gain/(loss) on derivative— — — (138)— (138)
TOTAL REVENUE, NET$19,221 $63,781 $236 $38,664 — $121,902 
Interest expense$8,889 $343 $324 $2,843 — $12,399 
Fee and commission expense750 18,600 186 2,400 — 21,936 
Operating expense18,262 3,500 3,921 34,307 — 59,990 
Provision for impairment losses (1,254)— — 90 — (1,164)
Other (expense)/income, net280 (11)(8)348 — 609 
TOTAL EXPENSE$26,927 $22,432 $4,423 $39,988 — $93,770 
NET INCOME BEFORE INCOME TAX$(7,706)$41,349 $(4,187)$(1,324)— $28,132 
Income tax (expense)/benefit(15)(4,467)(450)(1,070)— (6,002)
NET PROFIT/(LOSS)$(7,721)$36,882 $(4,637)$(2,394)— $22,130 
(1) All trading of U.S. and European exchange traded and OTC securities by all Freedom 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.
During fiscal 2022 total revenue, net in our Russia region decreased by $86,804, or 100%, to ($249) generating a negative net revenues for fiscal year 2022, as compared to total revenue, net of $86,555 during fiscal year 2021.
The decrease in fiscal 2022 was driven by an increase in net loss on trading securities as a result of the negative revaluation of certain securities held by Freedom RU, and a net loss on foreign currency exchange operations resulting from the depreciation of the Russian ruble against U.S. dollar by 11%. the decreases were only partially offset by increased fee and commission income resulting from growth of Freedom RU's customer base, coupled with greater customer transaction volume.
During fiscal 2021, total revenue, net in our Russian region increased by $47,891, or 124%, to $86,555, as compared to $38,664 during fiscal year 2020. The increase in total revenue, net during fiscal 2021 compared to fiscal 2020 was the result of overall expansion of our business in our Russian region, both in terms of size of our customer base and trading volume.
The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure:
March 31, 2022
Central AsiaEuropeUSRussiaMiddle East CaucasusTotal
Total assets$1,166,428 $777,117 $170,149 $806,960 $355 $2,921,009 
Total liabilities$985,936 $471,435 $175,136 $780,655 $172 $2,413,334 
Net assets$180,492 $305,682 $(4,987)$26,305 $183 $507,675 
March 31, 2021
Central AsiaEuropeUSRussiaMiddle East CaucasusTotal
Total assets714,117 511,366 46,100 746,922 140 2,018,645 
Total liabilities557,713 462,616 60,043 662,598 3 1,742,974 
Net assets156,404 48,750 (13,943)84,324 137 275,671