XML 37 R28.htm IDEA: XBRL DOCUMENT v3.22.2

ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES

3 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions and disposals of subsidiaries

ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES

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 controlling shareholder, chairman and chief executive officer, Timur Turlov, who acquired the two entities from a non-related party. The Company acquired these companies from him at the historical cost paid by him plus amounts he has contributed as additional paid in capital since his purchase. These companies were not initially acquired directly by the Company because at the time they were put on the market for sale by their prior owner they did not have audit reports conforming to U.S. GAAP standards and had not demonstrated sustained profitability. The purchase price for Freedom Insurance was $13,977 and the purchase price for Freedom Life was $12,611. The Company is required to make these payments to Timur Turlov by no later than September 16, 2022.

Acquisition of Freedom Life

When preparing the condensed consolidated financial statements for the quarter ended June 30, 2022, management determined that certain amounts included in the Company’s condensed consolidated financial statements as of March 31, 2022, and for the three months ended June 30, 2022, as stated by ASC 805 Business Combinations required revision. The acquisition from Timur Turlov was deemed to be under common control with the Company since it was acquired on February 28, 2018. The transaction has been accounted for as a restructuring transaction and all the assets and liabilities of Freedom Life were transferred to the Company at their respective carrying amounts on the date of transaction.

As of the acquisition date by Timur Turlov, the fair value of Freedom Life was $12,076. The total purchase price was allocated as follows:

			Purchase price allocation As of February 28, 2018
ASSETS
Cash and cash equivalents			$	3,494
Due from banks			2,514
Loans issued			2
Other assets			1,671
Assets from insurance activity			3,729
Deferred acquisition costs			542
Available-for-sale securities, at fair value			15,842
Fixed assets			171
Intangible assets			5,823
Deferred tax assets			141
TOTAL ASSETS			33,929
Deferred income tax liabilities			47
Other liabilities			139
Liabilities from insurance activity			21,667
TOTAL LIABILITIES			21,853
Net assets acquired			12,076
Goodwill			526
Total purchase price			$	7,009
Fair value of non-controlling interest at acquisition			5,593

Acquisition of Freedom Insurance

When preparing the condensed consolidated financial statements for the quarter ended June 30, 2022, management determined that certain amounts included in the Company’s condensed consolidated financial statements as of March 31, 2022, and for the three months ended June 30, 2022, as stated by ASC 805 Business Combinations required revision. The acquisition from Timur Turlov was deemed to be an entity under common control with the Company since it was acquired on August 22, 2018. The transaction has been accounted for as a restructuring transaction and all the assets and liabilities of Freedom Insurance were transferred to the Company at their respective carrying amounts on the date of transaction.

As of the acquisition date by Timur Turlov, the fair value of Freedom Insurance was $4,101. The total purchase price was allocated as follows:

			Purchase price allocation As of August 22, 2018
ASSETS:
Cash and cash equivalents			$	1,224
Due from banks			1,041
Other assets			17
Assets from insurance activity			45
Current income tax asset			5
Available-for-sale securities, at fair value			1,846
Fixed assets			2
Intangible assets			207
Deferred tax assets			2
TOTAL ASSETS			4,389
LIABILITIES:
Other liabilities			214
Liabilities from insurance activity			74
TOTAL LIABILITIES			288
Net assets acquired			4,101
Goodwill			187
Total purchase price			$	4,288

X

- References

No definition available.

+ Details

Name:	us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-URI http://asc.fasb.org/topic&trid=2303972

+ Details

Name:	us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration