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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 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
STATEMENTS OF OPERATIONS
Central AsiaEuropeU.S.Middle East/CaucasusEliminationsTotal
Fee and commission income (1)
$19,067 $73,006 $1,050 $— $— $93,123 
Net gain on trading securities15,828 (7,210)387 — — 9,005 
Net realized gain on investments available for sale716 — — — — 716 
Interest income46,275 211 2,547 — — 49,033 
Insurance underwriting income26,200 — — — — 26,200 
Net gain/(loss) on foreign exchange operations7,601 (2,400)(665)19 — 4,555 
Net loss on derivative(2,320)— — — — (2,320)
TOTAL REVENUE, NET113,367 63,607 3,319 19 — 180,312 
Fee and commission expense11,812 6,474 144 9 — 18,439 
Interest expense34,562 2,964 3,337 — — 40,863 
Insurance claims incurred, net of reinsurance17,475 — — — — 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), net94 101 (3)— — 192 
TOTAL EXPENSE89,390 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
STATEMENTS OF OPERATIONS
Central AsiaEuropeU.S.Middle East/CaucasusEliminationsTotal
Fee and commission income (1)
$28,259 $157,040 $2,184 $— $— $187,483 
Net gain/(loss) on trading securities37,417 (22,634)(1,344)— — 13,439 
Net realized loss on investments available for sale123 — — — — 123 
Interest income85,185 508 6,989 — — 92,682 
Insurance underwriting income50,440 — — — — 50,440 
Net gain/(loss) on foreign exchange operations11,869 (1,830)(899)8 — 9,148 
Net gain on derivative(1,054)— — — — (1,054)
TOTAL REVENUE, NET212,239 133,084 6,930 8 — 352,261 
Fee and commission expense22,527 18,901 297 29 — 41,754 
Interest expense66,530 5,660 8,744 — — 80,934 
Insurance claims incurred, net of reinsurance34,167 — — — — 34,167 
Operating expense42,482 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 EXPENSE171,463 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 (Recasted)
STATEMENTS OF OPERATIONS
Central AsiaEuropeU.S.Middle East/CaucasusEliminationsTotal
Fee and commission income$5,266 $88,784 $1,165 $— $— $95,215 
Net gain/(loss) on trading securities2,756 178,951 (104)— — 181,603 
Net realized loss on investments available for sale(622)— — — — (622)
Interest income24,206 210 13 — — 24,429 
Insurance underwriting income16,022 — — — — 16,022 
Net gain on foreign exchange operations1,304 166 38 — — 1,508 
Net loss on derivative(656)— — — — (656)
TOTAL REVENUE, NET48,276 268,111 1,112 — — 317,499 
Fee and commission expense2,123 20,360 168 — — 22,651 
Interest expense14,490 1,805 421 — — 16,716 
Insurance claims incurred, net of reinsurance13,513 — — — — 13,513 
Operating expense12,206 4,952 4,583 29 — 21,770 
Provision for impairment losses 978 — — — — 978 
Other expense/(income), net794 (8)— — — 786 
TOTAL EXPENSE44,104 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 (Recasted)
STATEMENTS OF OPERATIONS
Central AsiaEuropeU.S.Middle East/CaucasusEliminationsTotal
Fee and commission income$11,522 $160,775 $2,134 $— $— $174,431 
Net gain/(loss) on trading securities11,698 178,993 (406)— — 190,285 
Net realized loss on investments available for sale(653)— — — — (653)
Interest income45,035 471 60 — — 45,566 
Income from insurance activity 30,098 — — — — 30,098 
Net gain/(loss) on foreign exchange operations2,774 (60)2 — — 2,716 
Net loss on derivative(715)— — — — (715)
TOTAL REVENUE, NET99,759 340,179 1,790 — — 441,728 
Fee and commission expense4,654 38,840 350 — — 43,844 
Interest expense26,758 3,503 701 — — 30,962 
Expense from insurance activity 24,809 — — — — 24,809 
Operating expense23,081 9,744 8,372 (6)— 41,191 
Provision for impairment losses 1,233 12 — — — 1,245 
Other expense, net800 (5)— — — 795 
TOTAL EXPENSE81,335 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,
20222021*20222021*
Central Asia$1,036 $1,384 $2,138 $2,032 
U.S.533 691 1,152 1,045 
Europe135 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 AsiaEuropeU.S.Russia (Discontinued operations)Middle East/CaucasusTotal
Total assets$2,837,687 $685,110 $143,833 $1,115,615 $2,120 $4,784,365 
Total liabilities2,561,607 373,466 137,716 1,089,880 365 4,163,034 
Net assets$276,080 $311,644 $6,117 $25,735 $1,755 $621,331 
March 31, 2022 (Recasted)
Central AsiaEuropeU.S.Russia (Discontinued operations)Middle East/CaucasusTotal
Total assets$1,423,539 $805,768 $172,679 $825,409 $355 $3,227,750 
Total liabilities1,203,486 489,883 175,136 812,465 172 2,681,142 
Net assets$220,053 $315,885 $(2,457)$12,944 $183 $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 offices, 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.