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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 reportedFF Life acquisitionElimi-nationsFF Insurance acquisitionElimi-nationsRecast discontinued operationsAs recasted
ASSETS
Cash and cash equivalents$625,547 $1,427 $(901)$371 $(82)$(400,898)$225,464 
Trading securities1,203,479 8,875 — 68,520 — (122,497)1,158,377 
Restricted cash553,680 — — — — (5,730)547,950 
Brokerage and other receivables, net357,567 173 (34)60 (20)(210,087)147,659 
Loans issued94,797 44 — — — (2,395)92,446 
Other assets25,707 7,244 — 399 — (7,214)26,136 
Fixed assets, net21,365 182 — 254 — (3,978)17,823 
Right-of-use asset15,669 532 — 152 — (8,922)7,431 
Deferred income tax assets12,018 23 — 28 — (11,161)908 
Intangible assets, net5,791 1,489 — 161 — (2,278)5,163 
Goodwill5,388 359 — 151 — — 5,898 
Available-for-sale securities, at fair value1 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 liabilities1,417,937 — (901)— (82)(651,326)765,628 
Trade payables45,229 — — 21 (20)(147)45,083 
Liabilities from insurance activity — 106,329 — 13,161 — — 119,490 
Current income tax liability14,556 — — — — — 14,556 
Securities sold, not yet purchased – at fair value14,103 — — — — (238)13,865 
Loans received3,538 — — — — — 3,538 
Debt securities issued99,027 — — — — (64,637)34,390 
Lease liability15,315 543 — 176 — (8,530)7,504 
Deferred income tax liabilities— — — — — — — 
Deferred distribution payments8,534 — — — — — 8,534 
Liabilities held for sale— — — — — 812,478 812,478 
Other liabilities19,917 550 (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 capital141,340 — 16,499 — 16,906 — 174,745 
Retained earnings426,563 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 reportedFF Life acquisitionElimi-nationsFF Insurance acquisitionElimi-nationsRecast discontinued operationsAs recasted
Revenue:
Fee and commission income$116,534 $— $(91)$28 $(77)$(21,179)$95,215 
Net gain on trading securities175,252 329 — 859 — 5,163 181,603 
Net realized loss on investments available for sale— (622)— — — — (622)
Interest income20,063 5,513 — 2,221 — (3,368)24,429 
Insurance underwriting income— 12,804 — 3,218 — — 16,022 
Net gain on foreign exchange operations1,622 (106)— (11)— 3 1,508 
Net loss on derivative(656)— — — — — (656)
TOTAL REVENUE, NET312,815 17,918 (91)6,315 (77)(19,381)317,499 
Expense:
Fee and commission expense22,968 1,836 (91)174 (77)(2,159)22,651 
Interest expense16,185 1,120 — 1,621 — (2,210)16,716 
Insurance claims incurred, net of reinsurance— 9,748 — 3,765 — — 13,513 
Operating expense36,569 1,336 — 1,630 — (17,765)21,770 
Provision for impairment losses366 — — 662 — (50)978 
Other expense, net653 110 — (1)— 24 786 
TOTAL EXPENSE76,741 14,150 (91)7,851 (77)(22,160)76,414 
INCOME BEFORE INCOME TAX236,074 3,768 — (1,536)— 2,779 241,085 
Income tax expense(31,562)(13)— 10 — — (32,094)
INCOME FROM CONTINUING OPERATIONS204,512 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 effect930 21 — 96 — 134 1,181 
OTHER COMPREHENSIVE INCOME930 (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 reportedFF Life acquisitionElimi-nationsFF Insurance acquisitionElimi-nationsRecast discontinued operationsAs recasted
Revenue:
Fee and commission income$213,940 $— $(91)$88 $(161)$(39,345)174,431 
Net gain on trading securities185,152 600 — 1,429 — 3,104 190,285 
Net realized loss on investments available for sale— (653)— — — — (653)
Interest income38,140 10,100 — 4,218 — (6,892)45,566 
Insurance underwriting income— 24,062 — 6,036 — — 30,098 
Net gain on foreign exchange operations434 38 — 10 — 2,234 2,716 
Net loss on derivative(715)— — — — — (715)
TOTAL REVENUE, NET436,951 34,147 (91)11,781 (161)(40,899)441,728 
Expense:
Fee and commission expense44,832 3,128 (91)362 (161)(4,226)43,844 
Interest expense30,457 1,998 — 2,966 — (4,459)30,962 
Insurance claims incurred, net of reinsurance— 18,616 — 6,193 — — 24,809 
Operating expense66,888 2,612 — 3,278 — (31,587)41,191 
Provision for impairment losses659 — — 663 — (77)1,245 
Other expense/(income), net664 225 — (2)— (92)795 
TOTAL EXPENSE143,500 26,579 (91)13,460 (161)(40,441)142,846 
INCOME BEFORE INCOME TAX293,451 7,568 — (1,679)— (458)298,882 
Income tax expense(37,231)(1)— (7)— — (37,220)
INCOME FROM CONTINUING OPERATIONS256,220 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 effect4,230 71 — — (98)— 4,203 
OTHER COMPREHENSIVE INCOME4,230 (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 SHAREHOLDERS260,522 7,565 — (1,686)(98)— 266,313