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RECAST (Tables)

12 Months Ended

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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- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

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Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
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-Section 45
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-URI https://asc.fasb.org/extlink&oid=126900757&loc=d3e765-108305

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI https://asc.fasb.org/extlink&oid=126900757&loc=d3e725-108305

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

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