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v3.23.2

RECAST (Tables) | 12 Months Ended
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Mar. 31, 2023
Accounting Changes and Error Corrections [Abstract] |
Revision of prior period statements | The previously issued Consolidated Balance Sheet as of March 31, 2022, and Consolidated Statements of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022 and March 31, 2021, have been revised as follows:
| As of March 31, 2022
| As previously reported |  | FF Life acquisition |  | Elimi-nations |  | FF Insurance acquisition |  | Elimi-nations |  | As recasted
ASSETS |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 224,663 |  |  | $ | 1,429 |  |  | $ | (917) |  |  | $ | 371 |  |  | $ | (82) |  |  | $ | 225,464 |
Restricted cash | 547,950 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 547,950 |
Trading securities | 1,080,982 |  |  | 8,875 |  |  | — |  |  | 68,520 |  |  | — |  |  | 1,158,377 |
Available-for-sale securities, at fair value | 1 |  |  | 161,363 |  |  | — |  |  | — |  |  | — |  |  | 161,364 |
Margin lending, brokerage and other receivables, net | 147,480 |  |  | 172 |  |  | (34) |  |  | 61 |  |  | (20) |  |  | 147,659 |
Loans issued | 92,403 |  |  | 43 |  |  | — |  |  | — |  |  | — |  |  | 92,446 |
Fixed assets, net | 17,387 |  |  | 182 |  |  | — |  |  | 254 |  |  | — |  |  | 17,823 |
Intangible assets, net | 3,512 |  |  | 1,490 |  |  | — |  |  | 161 |  |  | — |  |  | 5,163 |
Goodwill | 5,388 |  |  | 359 |  |  | — |  |  | 151 |  |  | — |  |  | 5,898 |
Right-of-use asset | 6,747 |  |  | 532 |  |  | — |  |  | 152 |  |  | — |  |  | 7,431 |
Insurance contract assets | — |  |  | 3,555 |  |  | — |  |  | 2,157 |  |  | — |  |  | 5,712 |
Other assets, net | 19,351 |  |  | 9,863 |  |  | — |  |  | 427 |  |  | — |  |  | 29,641 |
Assets held for sale | 825,419 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 825,419 |
TOTAL ASSETS | $ | 2,971,283 |  |  | $ | 187,863 |  |  | $ | (951) |  |  | $ | 72,254 |  |  | $ | (102) |  |  | $ | 3,230,347 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |
Securities repurchase agreement obligations | $ | 742,710 |  |  | $ | 47,690 |  |  | $ | — |  |  | $ | 49,824 |  |  | $ | — |  |  | $ | 840,224 |
Customer liabilities | 766,627 |  |  | — |  |  | (917) |  |  | — |  |  | (82) |  |  | 765,628 |
Margin lending and trade payables | 45,082 |  |  | — |  |  | — |  |  | 21 |  |  | (20) |  |  | 45,083 |
Liabilities from insurance activity | — |  |  | 108,925 |  |  | — |  |  | 13,162 |  |  | — |  |  | 122,087 |
Current income tax liability | 14,556 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,556 |
Securities sold, not yet purchased – at fair value | 13,865 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,865 |
Debt securities issued | 34,390 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 34,390 |
Lease liability | 6,785 |  |  | 543 |  |  | — |  |  | 176 |  |  | — |  |  | 7,504 |
Liability arising from continuing involvement | 6,447 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,447 |
Other liabilities | 20,668 |  |  | 551 |  |  | (34) |  |  | 292 |  |  | — |  |  | 21,477 |
Liabilities held for sale | 812,478 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 812,478 |
TOTAL LIABILITIES | $ | 2,463,608 |  |  | $ | 157,709 |  |  | $ | (951) |  |  | $ | 63,475 |  |  | $ | (102) |  |  | $ | 2,683,739 |
Commitments and Contingent Liabilities (Note 31) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
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; 59,542,212 shares issued and outstanding as of March 31, 2022 | 59 |  |  | 9,465 |  |  | (9,464) |  |  | 15,576 |  |  | (15,577) |  |  | 59 |
Additional paid in capital | 141,340 |  |  | — |  |  | 16,498 |  |  | — |  |  | 16,907 |  |  | 174,745 |
Retained earnings | 426,563 |  |  | 28,132 |  |  | (6,665) |  |  | (4,812) |  |  | (1,294) |  |  | 441,924 |
Accumulated other comprehensive loss | (53,291) |  |  | (7,444) |  |  | (369) |  |  | (1,985) |  |  | (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 | $ | 2,971,283 |  |  | $ | 187,863 |  |  | $ | (951) |  |  | $ | 72,254 |  |  | $ | (102) |  |  | $ | 3,230,347 |
| Year ended March 31, 2022
| As previously reported |  | FF Life acquisition |  | Elimi-nations |  | FF Insurance acquisition |  | Elimi-nations |  | As recasted
Revenue: |  |  |  |  |  |  |  |  |  |  |
Fee and commission income | $ | 335,444 |  |  | $ | — |  |  | $ | — |  |  | $ | 83 |  |  | $ | (316) |  |  | $ | 335,211 |
Net gain/(loss) on trading securities | 156,345 |  |  | (1,283) |  |  | — |  |  | 190 |  |  | — |  |  | 155,252 |
Interest income | 90,153 |  |  | 23,027 |  |  | — |  |  | 8,429 |  |  | — |  |  | 121,609 |
Insurance underwriting income | — |  |  | 60,526 |  |  | — |  |  | 12,455 |  |  | — |  |  | 72,981 |
Net gain on foreign exchange operations | 1,979 |  |  | 1,615 |  |  | — |  |  | 197 |  |  | — |  |  | 3,791 |
Net gain on derivatives | 946 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 946 |
TOTAL REVENUE, NET | 584,867 |  |  | 83,885 |  |  | — |  |  | 21,354 |  |  | (316) |  |  | 689,790 |
Expense: |  |  |  |  |  |  |  |  |  |  |
Fee and commission expense | 73,243 |  |  | 12,289 |  |  | — |  |  | 693 |  |  | (316) |  |  | 85,909 |
Interest expense | 65,449 |  |  | 5,194 |  |  | — |  |  | 6,304 |  |  | — |  |  | 76,947 |
Insurance claims incurred, net of reinsurance | — |  |  | 42,606 |  |  | — |  |  | 11,841 |  |  | — |  |  | 54,447 |
Payroll and bonuses | 39,779 |  |  | 3,624 |  |  | — |  |  | 2,885 |  |  | — |  |  | 46,288 |
Professional services | 12,123 |  |  | 106 |  |  | — |  |  | 453 |  |  | — |  |  | 12,682 |
Stock compensation expense | 7,859 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7,859 |
Advertising expense | 10,059 |  |  | — |  |  | — |  |  | 1,857 |  |  | — |  |  | 11,916 |
General and administrative expense | 18,744 |  |  | 3,516 |  |  | — |  |  | 1,273 |  |  | — |  |  | 23,533 |
Provision for impairment losses | 2,206 |  |  | — |  |  | — |  |  | 296 |  |  | — |  |  | 2,502 |
Other expense/(income), net | 1,312 |  |  | 2,708 |  |  | — |  |  | (6) |  |  | — |  |  | 4,014 |
TOTAL EXPENSE | 230,774 |  |  | 70,043 |  |  | — |  |  | 25,596 |  |  | (316) |  |  | 326,097 |
NET INCOME/(LOSS) BEFORE INCOME TAX | 354,093 |  |  | 13,842 |  |  | — |  |  | (4,242) |  |  | — |  |  | 363,693 |
Income tax (expense)/benefit | (38,529) |  |  | (54) |  |  | — |  |  | 13 |  |  | — |  |  | (38,570) |
INCOME/(LOSS) FROM CONTINUING OPERATIONS | 315,564 |  |  | 13,788 |  |  | — |  |  | (4,229) |  |  | — |  |  | 325,123 |
Loss before income tax (expense)/benefit of discontinued operations | (117,199) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (117,199) |
Income tax benefit of discontinued operations | 13,004 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13,004 |
Loss from discontinued operations | (104,195) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (104,195) |
NET INCOME/(LOSS) | $ | 211,369 |  |  | $ | 13,788 |  |  | $ | — |  |  | $ | (4,229) |  |  | $ | — |  |  | $ | 220,928 |
Less: Net loss attributable to non-controlling interest in subsidiary | (6,566) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,566) |
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 217,935 |  |  | $ | 13,788 |  |  | $ | — |  |  | $ | (4,229) |  |  | $ | — |  |  | $ | 227,494 |
OTHER COMPREHENSIVE INCOME |  |  |  |  |  |  |  |  |  |  |
Change in unrealized gain on investments available-for-sale, net of tax effect | — |  |  | (4,292) |  |  | — |  |  | — |  |  | — |  |  | (4,292) |
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | — |  |  | 2,222 |  |  | — |  |  | — |  |  | — |  |  | 2,222 |
Foreign currency translation adjustments | (17,245) |  |  | (2,014) |  |  | — |  |  | (1,363) |  |  | — |  |  | (20,622) |
OTHER COMPREHENSIVE (LOSS)/INCOME | (17,245) |  |  | (4,084) |  |  | — |  |  | (1,363) |  |  | — |  |  | (22,692) |
COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS | $ | 194,124 |  |  | $ | 9,704 |  |  | $ | — |  |  | $ | (5,592) |  |  | $ | — |  |  | $ | 198,236 |
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | (6,566) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,566) |
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 200,690 |  |  | $ | 9,704 |  |  | $ | — |  |  | $ | (5,592) |  |  | $ | — |  |  | $ | 204,802 |
For the year ended March 31, 2022, the Company’s EPS as reported was 5.43 for both basic and diluted EPS for continuing operations, (1.75) for both basic and diluted EPS for discontinued operations, and 3.67 for both basic and diluted total EPS. Due to the items noted above, the Company’s EPS has been recast to 5.59 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.84 for both basic and diluted total EPS.
| Year ended March 31, 2021
| As previously reported |  | FF Life acquisition |  | Elimi-nations |  | FF Insurance acquisition |  | Elimi-nations |  | As recasted
Revenue: |  |  |  |  |  |  |  |  |  |  |
Fee and commission income | $ | 215,996 |  |  | $ | — |  |  | $ | — |  |  | $ | 188 |  |  | $ | (176) |  |  | $ | 216,008 |
Net gain on trading securities | 25,911 |  |  | 966 |  |  | — |  |  | 1,930 |  |  | — |  |  | 28,807 |
Interest income | 22,815 |  |  | 11,818 |  |  | — |  |  | 3,841 |  |  | — |  |  | 38,474 |
Insurance underwriting income | — |  |  | 54,412 |  |  | — |  |  | 8,539 |  |  | — |  |  | 62,951 |
Net gain/(loss) on foreign exchange operations | 1,143 |  |  | (443) |  |  | — |  |  | (143) |  |  | — |  |  | 557 |
Net gain on derivatives | 86 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 86 |
TOTAL REVENUE, NET | 265,951 |  |  | 66,753 |  |  | — |  |  | 14,355 |  |  | (176) |  |  | 346,883 |
Expense: |  |  |  |  |  |  |  |  |  |  |
Fee and commission expense | 65,978 |  |  | 4,383 |  |  | — |  |  | 352 |  |  | (176) |  |  | 70,537 |
Interest expense | 18,606 |  |  | 1,605 |  |  | — |  |  | 2,233 |  |  | — |  |  | 22,444 |
Insurance claims incurred, net of reinsurance | — |  |  | 46,754 |  |  | — |  |  | 5,651 |  |  | — |  |  | 52,405 |
Payroll and bonuses | 17,941 |  |  | 3,172 |  |  | — |  |  | 2,322 |  |  |  |  | 23,435 |
Professional services | 3,980 |  |  | 148 |  |  | — |  |  | 302 |  |  |  |  | 4,430 |
Stock compensation expense | 114 |  |  | — |  |  | — |  |  | — |  |  |  |  | 114 |
Advertising expense | 5,027 |  |  | 119 |  |  | — |  |  | 1,944 |  |  |  |  | 6,971 |
General and administrative expense | 8,391 |  |  | 1,304 |  |  | — |  |  | 1,314 |  |  | (10) |  |  | 11,118 |
Provision for impairment losses | 1,517 |  |  | 73 |  |  | — |  |  | — |  |  | — |  |  | 1,590 |
Other (income)/expense, net | (106) |  |  | 2,359 |  |  | — |  |  | (229) |  |  | 10 |  |  | 2,034 |
TOTAL EXPENSE | 121,448 |  |  | 59,917 |  |  | — |  |  | 13,889 |  |  | (176) |  |  | 195,078 |
NET INCOME BEFORE INCOME TAX | 144,503 |  |  | 6,836 |  |  | — |  |  | 466 |  |  | — |  |  | 151,805 |
Income tax (expense)/benefit | (23,362) |  |  | 8 |  |  | — |  |  | 47 |  |  | — |  |  | (23,307) |
INCOME FROM CONTINUING OPERATIONS | 121,141 |  |  | 6,844 |  |  | — |  |  | 513 |  |  | — |  |  | 128,498 |
Income before income tax expense of discontinued operation | 28,518 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 28,518 |
Income tax expense of discontinued operations | (6,735) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,735) |
Income from discontinued operations | 21,783 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21,783 |
NET INCOME | $ | 142,924 |  |  | $ | 6,844 |  |  | $ | — |  |  | $ | 513 |  |  | $ | — |  |  | $ | 150,281 |
Less: Net income attributable to non-controlling interest in subsidiary | 631 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 631 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 142,293 |  |  | $ | 6,844 |  |  | $ | — |  |  | $ | 513 |  |  | $ | — |  |  | $ | 149,650 |
OTHER COMPREHENSIVE INCOME |  |  |  |  |  |  |  |  |  |  |
Change in unrealized gain on investments available-for-sale, net of tax effect | — |  |  | (304) |  |  | — |  |  | — |  |  | — |  |  | (304) |
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect | 71 |  |  | 2,021 |  |  | — |  |  | — |  |  | — |  |  | 2,092 |
Foreign currency translation adjustments, net of tax effect | 1,857 |  |  | 10,866 |  |  | — |  |  | (9,936) |  |  | — |  |  | 2,787 |
OTHER COMPREHENSIVE INCOME/(LOSS) | 1,928 |  |  | 12,583 |  |  | — |  |  | (9,936) |  |  | — |  |  | 4,575 |
COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS | $ | 144,852 |  |  | $ | 19,427 |  |  | $ | — |  |  | $ | (9,423) |  |  | $ | — |  |  | $ | 154,856 |
Less: Comprehensive income attributable to non-controlling interest in subsidiary | 631 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 631 |
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 144,221 |  |  | $ | 19,427 |  |  | $ | — |  |  | $ | (9,423) |  |  | $ | — |  |  | $ | 154,225 |
For the year ended March 31, 2021, the Company’s EPS as reported was 2.06 for both basic and diluted EPS for continuing operations, 0.37 for both basic and diluted EPS for discontinued operations, 2.44 for basic total EPS, and 2.43 for diluted total EPS. Due to the items noted above, the Company’s EPS has been recast to 2.19 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.56 for both basic and diluted total EPS, respectively.

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