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v3.23.1

RECAST (Tables) | 6 Months Ended
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Sep. 30, 2022
Accounting Changes and Error Corrections [Abstract] |
Revision of prior period 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 reported |  | FF Life acquisition |  | Elimi-nations |  | FF Insurance acquisition |  | Elimi-nations |  | Recast discontinued operations |  | As recasted
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 625,547 |  |  | $ | 1,427 |  |  | $ | (901) |  |  | $ | 371 |  |  | $ | (82) |  |  | $ | (400,898) |  |  | $ | 225,464 |
Trading securities | 1,203,479 |  |  | 8,875 |  |  | — |  |  | 68,520 |  |  | — |  |  | (122,497) |  |  | 1,158,377 |
Restricted cash | 553,680 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,730) |  |  | 547,950 |
Brokerage and other receivables, net | 357,567 |  |  | 173 |  |  | (34) |  |  | 60 |  |  | (20) |  |  | (210,087) |  |  | 147,659 |
Loans issued | 94,797 |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  | (2,395) |  |  | 92,446 |
Other assets | 25,707 |  |  | 7,244 |  |  | — |  |  | 399 |  |  | — |  |  | (7,214) |  |  | 26,136 |
Fixed assets, net | 21,365 |  |  | 182 |  |  | — |  |  | 254 |  |  | — |  |  | (3,978) |  |  | 17,823 |
Right-of-use asset | 15,669 |  |  | 532 |  |  | — |  |  | 152 |  |  | — |  |  | (8,922) |  |  | 7,431 |
Deferred income tax assets | 12,018 |  |  | 23 |  |  | — |  |  | 28 |  |  | — |  |  | (11,161) |  |  | 908 |
Intangible assets, net | 5,791 |  |  | 1,489 |  |  | — |  |  | 161 |  |  | — |  |  | (2,278) |  |  | 5,163 |
Goodwill | 5,388 |  |  | 359 |  |  | — |  |  | 151 |  |  | — |  |  | — |  |  | 5,898 |
Available-for-sale securities, at fair value | 1 |  |  | 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 liabilities | 1,417,937 |  |  | — |  |  | (901) |  |  | — |  |  | (82) |  |  | (651,326) |  |  | 765,628 |
Trade payables | 45,229 |  |  | — |  |  | — |  |  | 21 |  |  | (20) |  |  | (147) |  |  | 45,083 |
Liabilities from insurance activity | — |  |  | 106,329 |  |  | — |  |  | 13,161 |  |  | — |  |  | — |  |  | 119,490 |
Current income tax liability | 14,556 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14,556 |
Securities sold, not yet purchased – at fair value | 14,103 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (238) |  |  | 13,865 |
Loans received | 3,538 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,538 |
Debt securities issued | 99,027 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (64,637) |  |  | 34,390 |
Lease liability | 15,315 |  |  | 543 |  |  | — |  |  | 176 |  |  | — |  |  | (8,530) |  |  | 7,504 |
Deferred income tax liabilities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Deferred distribution payments | 8,534 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,534 |
Liabilities held for sale | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 812,478 |  |  | 812,478 |
Other liabilities | 19,917 |  |  | 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 capital | 141,340 |  |  | — |  |  | 16,499 |  |  | — |  |  | 16,906 |  |  | — |  |  | 174,745 |
Retained earnings | 426,563 |  |  | 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 reported* |  | FF Life acquisition |  | Elimi-nations |  | FF Insurance acquisition |  | Elimi-nations |  | Recast discontinued operations |  | As recasted
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
Fee and commission income | $ | 114,344 |  |  | $ | — |  |  | $ | (91) |  |  | $ | 28 |  |  | $ | (77) |  |  | $ | (21,179) |  |  | $ | 93,025 |
Net gain on trading securities | 175,252 |  |  | 329 |  |  | — |  |  | 859 |  |  | — |  |  | 5,163 |  |  | 181,603 |
Net realized loss on investments available for sale | — |  |  | (622) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (622) |
Interest income | 22,253 |  |  | 5,513 |  |  | — |  |  | 2,221 |  |  | — |  |  | (3,368) |  |  | 26,619 |
Insurance underwriting income | — |  |  | 12,804 |  |  | — |  |  | 3,218 |  |  | — |  |  | — |  |  | 16,022 |
Net gain on foreign exchange operations | 1,622 |  |  | (106) |  |  | — |  |  | (11) |  |  | — |  |  | 3 |  |  | 1,508 |
Net loss on derivative | (656) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (656) |
TOTAL REVENUE, NET | 312,815 |  |  | 17,918 |  |  | (91) |  |  | 6,315 |  |  | (77) |  |  | (19,381) |  |  | 317,499 |
Expense: |  |  |  |  |  |  |  |  |  |  |  |  |
Fee and commission expense | 22,968 |  |  | 1,836 |  |  | (91) |  |  | 174 |  |  | (77) |  |  | (2,159) |  |  | 22,651 |
Interest expense | 16,185 |  |  | 1,120 |  |  | — |  |  | 1,621 |  |  | — |  |  | (2,210) |  |  | 16,716 |
Insurance claims incurred, net of reinsurance | — |  |  | 9,748 |  |  | — |  |  | 3,765 |  |  | — |  |  | — |  |  | 13,513 |
Operating expense | 36,569 |  |  | 1,336 |  |  | — |  |  | 1,630 |  |  | — |  |  | (17,765) |  |  | 21,770 |
Provision for impairment losses | 366 |  |  | — |  |  | — |  |  | 662 |  |  | — |  |  | (50) |  |  | 978 |
Other expense, net | 653 |  |  | 110 |  |  | — |  |  | (1) |  |  | — |  |  | 24 |  |  | 786 |
TOTAL EXPENSE | 76,741 |  |  | 14,150 |  |  | (91) |  |  | 7,851 |  |  | (77) |  |  | (22,160) |  |  | 76,414 |
INCOME BEFORE INCOME TAX | 236,074 |  |  | 3,768 |  |  | — |  |  | (1,536) |  |  | — |  |  | 2,779 |  |  | 241,085 |
Income tax expense | (31,562) |  |  | (13) |  |  | — |  |  | 10 |  |  | — |  |  | — |  |  | (32,094) |
INCOME FROM CONTINUING OPERATIONS | 204,512 |  |  | 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 effect | 930 |  |  | 21 |  |  | — |  |  | 96 |  |  | — |  |  | 134 |  |  | 1,181 |
OTHER COMPREHENSIVE INCOME | 930 |  |  | (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 reported* |  | FF Life acquisition |  | Elimi-nations |  | FF Insurance acquisition |  | Elimi-nations |  | Recast discontinued operations |  | As recasted
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
Fee and commission income | $ | 210,649 |  |  | $ | — |  |  | $ | (91) |  |  | $ | 88 |  |  | $ | (161) |  |  | $ | (39,345) |  |  | 171,140 |
Net gain on trading securities | 185,152 |  |  | 600 |  |  | — |  |  | 1,429 |  |  | — |  |  | 3,104 |  |  | 190,285 |
Net realized loss on investments available for sale | — |  |  | (653) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (653) |
Interest income | 41,431 |  |  | 10,100 |  |  | — |  |  | 4,218 |  |  | — |  |  | (6,892) |  |  | 48,857 |
Insurance underwriting income | — |  |  | 24,062 |  |  | — |  |  | 6,036 |  |  | — |  |  | — |  |  | 30,098 |
Net gain on foreign exchange operations | 434 |  |  | 38 |  |  | — |  |  | 10 |  |  | — |  |  | 2,234 |  |  | 2,716 |
Net loss on derivative | (715) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (715) |
TOTAL REVENUE, NET | 436,951 |  |  | 34,147 |  |  | (91) |  |  | 11,781 |  |  | (161) |  |  | (40,899) |  |  | 441,728 |
Expense: |  |  |  |  |  |  |  |  |  |  |  |  |
Fee and commission expense | 44,832 |  |  | 3,128 |  |  | (91) |  |  | 362 |  |  | (161) |  |  | (4,226) |  |  | 43,844 |
Interest expense | 30,457 |  |  | 1,998 |  |  | — |  |  | 2,966 |  |  | — |  |  | (4,459) |  |  | 30,962 |
Insurance claims incurred, net of reinsurance | — |  |  | 18,616 |  |  | — |  |  | 6,193 |  |  | — |  |  | — |  |  | 24,809 |
Operating expense | 66,888 |  |  | 2,612 |  |  | — |  |  | 3,278 |  |  | — |  |  | (31,587) |  |  | 41,191 |
Provision for impairment losses | 659 |  |  | — |  |  | — |  |  | 663 |  |  | — |  |  | (77) |  |  | 1,245 |
Other expense/(income), net | 664 |  |  | 225 |  |  | — |  |  | (2) |  |  | — |  |  | (92) |  |  | 795 |
TOTAL EXPENSE | 143,500 |  |  | 26,579 |  |  | (91) |  |  | 13,460 |  |  | (161) |  |  | (40,441) |  |  | 142,846 |
INCOME BEFORE INCOME TAX | 293,451 |  |  | 7,568 |  |  | — |  |  | (1,679) |  |  | — |  |  | (458) |  |  | 298,882 |
Income tax expense | (37,231) |  |  | (1) |  |  | — |  |  | (7) |  |  | — |  |  | — |  |  | (37,220) |
INCOME FROM CONTINUING OPERATIONS | 256,220 |  |  | 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 effect | 4,230 |  |  | 71 |  |  | — |  |  | — |  |  | (98) |  |  | — |  |  | 4,203 |
OTHER COMPREHENSIVE INCOME | 4,230 |  |  | (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 SHAREHOLDERS | 260,522 |  |  | 7,565 |  |  | — |  |  | (1,686) |  |  | (98) |  |  | — |  |  | 266,313 |
For the six months ended September 30, 2021, the Company’s EPS as reported was 4.33 for basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 4.42, 0.01, and 4.43 for basic and diluted EPS for continuing operations, discontinued operations, and total EPS, respectively. *amounts with restatement in fee and commission income and interest income, for more information please see Note 4 Restatement.

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