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v3.22.2

RECAST | 3 Months Ended
--- | ---
Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract] |
Recast | RECAST When preparing the condensed consolidated financial statements as of and for the three months ended June 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. For additional information see Note 22 Acquisitions and Disposals of Subsidiaries to the condensed consolidated financial statements. 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. 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 months ended June 30, 2022, have been revised as follows:
| As of March 31, 2022
| As previously reported |  | Recast |  | As recasted
ASSETS |  |  |  |  |
Cash and cash equivalents | $ | 625,547 |  |  | $ | 816 |  |  | $ | 626,363 |
Restricted cash | 553,680 |  |  | — |  |  | 553,680 |
Trading securities | 1,203,479 |  |  | 77,395 |  |  | 1,280,874 |
Available-for-sale securities, at fair value | 1 |  |  | 161,363 |  |  | 161,364 |
Brokerage and other receivables, net | 357,567 |  |  | 179 |  |  | 357,746 |
Loans issued | 94,797 |  |  | 43 |  |  | 94,840 |
Fixed assets, net | 21,365 |  |  | 437 |  |  | 21,802 |
Intangible assets, net | 5,791 |  |  | 1,650 |  |  | 7,441 |
Goodwill | 5,388 |  |  | 510 |  |  | 5,898 |
Right-of-use asset | 15,669 |  |  | 684 |  |  | 16,353 |
Deferred tax assets | 12,018 |  |  | 51 |  |  | 12,069 |
Assets from insurance activity | — |  |  | 5,712 |  |  | 5,712 |
Other assets, net | 25,707 |  |  | 7,643 |  |  | 33,350 |
TOTAL ASSETS | $ | 2,921,009 |  |  | $ | 256,483 |  |  | $ | 3,177,492 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |
Securities repurchase agreement obligations | $ | 775,178 |  |  | $ | 97,514 |  |  | $ | 872,692 |
Customer liabilities | 1,417,937 |  |  | (983) |  |  | 1,416,954 |
Trade payables | 45,229 |  |  | 1 |  |  | 45,230 |
Liabilities from insurance activity | — |  |  | 119,490 |  |  | 119,490 |
Current income tax liability | 14,556 |  |  | — |  |  | 14,556 |
Securities sold, not yet purchased – at fair value | 14,103 |  |  | — |  |  | 14,103 |
Loans received | 3,538 |  |  | — |  |  | 3,538 |
Debt securities issued | 99,027 |  |  | — |  |  | 99,027 |
Lease liability | 15,315 |  |  | 720 |  |  | 16,035 |
Deferred distribution payments | 8,534 |  |  | — |  |  | 8,534 |
Other liabilities | 19,917 |  |  | 808 |  |  | 20,725 |
TOTAL LIABILITIES | 2,413,334 |  |  | 217,550 |  |  | 2,630,884 |
Commitments and Contingent Liabilities (Note 20) | — |  |  | — |  |  | — |
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 |  |  | — |  |  | 59 |
Additional paid in capital | 141,340 |  |  | 33,406 |  |  | 174,746 |
Retained earnings | 426,563 |  |  | 15,360 |  |  | 441,923 |
Accumulated other comprehensive loss | (53,291) |  |  | (9,834) |  |  | (63,125) |
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY | 514,671 |  |  | 38,932 |  |  | 553,603 |
Less: Net (loss)/income attributable to noncontrolling interest in subsidiary | (6,996) |  |  | 1 |  |  | (6,995) |
TOTAL SHAREHOLDERS’ EQUITY | 507,675 |  |  | 38,933 |  |  | 546,608 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 2,921,009 |  |  | $ | 256,483 |  |  | $ | 3,177,492 |
| Three months ended June 30, 2021
| As previously reported |  | Recast |  | As recasted
Revenue: |  |  |  |  |
Fee and commission income | $ | 97,406 |  |  | $ | (23) |  |  | $ | 97,383 |
Net gain on trading securities | 9,900 |  |  | 841 |  |  | 10,741 |
Net realized loss on investments available for sale | — |  |  | (31) |  |  | (31) |
Interest income | 18,077 |  |  | 6,585 |  |  | 24,662 |
Income from insurance activity | — |  |  | 14,076 |  |  | 14,076 |
Net gain/(loss) on foreign exchange operations | (1,187) |  |  | 163 |  |  | (1,024) |
Net loss on derivative | (59) |  |  | (1) |  |  | (60) |
TOTAL REVENUE, NET | 124,137 |  |  | 21,610 |  |  | 145,747 |
Expense: |  |  |  |  |
Fee and commission expense | 21,863 |  |  | 1,397 |  |  | 23,260 |
Interest expense | 14,272 |  |  | 2,223 |  |  | 16,495 |
Expense from insurance activity | — |  |  | 11,296 |  |  | 11,296 |
Operating expense | 30,318 |  |  | 2,926 |  |  | 33,244 |
Provision for impairment losses | 293 |  |  | — |  |  | 293 |
Other expense, net | 14 |  |  | 111 |  |  | 125 |
TOTAL EXPENSE | 66,760 |  |  | 17,953 |  |  | 84,713 |
NET INCOME BEFORE INCOME TAX | $ | 57,377 |  |  | $ | 3,657 |  |  | $ | 61,034 |
Income tax expense | (5,669) |  |  | 5 |  |  | (5,664) |
NET INCOME | $ | 51,708 |  |  | $ | 3,662 |  |  | $ | 55,370 |
Less: Net loss attributable to non-controlling interest in subsidiary | (52) |  |  | — |  |  | (52) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 51,760 |  |  | 3,662 |  |  | 55,422 |
OTHER COMPREHENSIVE INCOME |  |  |  |  |
Change in unrealized gain on investments available-for-sale, net of tax effect | — |  |  | 874 |  |  | 874 |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | — |  |  | 31 |  |  | 31 |
Foreign currency translation adjustments, net of tax effect | 3,300 |  |  | (278) |  |  | 3,022 |
OTHER COMPREHENSIVE INCOME | 3,300 |  |  | 627 |  |  | 3,927 |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | $ | 55,008 |  |  | $ | 4,289 |  |  | $ | 59,297 |
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | (52) |  |  | — |  |  | (52) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 55,060 |  |  | $ | 4,289 |  |  | $ | 59,349 |

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