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SEGMENT REPORTING | 3 Months Ended
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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 segment reporting was restated for the errors described in Note 4, and restated segment information was provided to CODM in their reports. 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 (Restated)
STATEMENTS OF OPERATIONS | Central Asia |  | Europe |  | U.S. |  | Middle East/Caucasus |  | Total
Fee and commission income (1) | $ | 19,067 |  |  | $ | 63,040 |  |  | $ | 1,050 |  |  | $ | — |  |  | $ | 83,157 |
Net gain on trading securities | 15,828 |  |  | (7,210) |  |  | 387 |  |  | — |  |  | 9,005 |
Net realized gain on investments available for sale | 716 |  |  | — |  |  | — |  |  | — |  |  | 716 |
Interest income | 46,275 |  |  | 10,177 |  |  | 2,547 |  |  | — |  |  | 58,999 |
Insurance underwriting income | 26,200 |  |  | — |  |  | — |  |  | — |  |  | 26,200 |
Net gain/(loss) on foreign exchange operations | 7,601 |  |  | (2,400) |  |  | (665) |  |  | 19 |  |  | 4,555 |
Net loss on derivative | (2,320) |  |  | — |  |  | — |  |  | — |  |  | (2,320) |
TOTAL REVENUE, NET | 113,367 |  |  | 63,607 |  |  | 3,319 |  |  | 19 |  |  | 180,312 |
Fee and commission expense | 11,812 |  |  | 6,474 |  |  | 144 |  |  | 9 |  |  | 18,439 |
Interest expense | 34,562 |  |  | 2,964 |  |  | 3,337 |  |  | — |  |  | 40,863 |
Insurance claims incurred, net of reinsurance | 17,475 |  |  | — |  |  | — |  |  | — |  |  | 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), net | 94 |  |  | 101 |  |  | (3) |  |  | — |  |  | 192 |
TOTAL EXPENSE | 89,390 |  |  | 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 (Restated)
STATEMENTS OF OPERATIONS | Central Asia |  | Europe |  | U.S. |  | Middle East/Caucasus |  | Total
Fee and commission income (1) | $ | 28,259 |  |  | $ | 142,160 |  |  | $ | 2,184 |  |  | $ | — |  |  | $ | 172,603 |
Net gain/(loss) on trading securities | 37,417 |  |  | (22,634) |  |  | (1,344) |  |  | — |  |  | 13,439 |
Net realized loss on investments available for sale | 123 |  |  | — |  |  | — |  |  | — |  |  | 123 |
Interest income | 85,185 |  |  | 15,388 |  |  | 6,989 |  |  | — |  |  | 107,562 |
Insurance underwriting income | 50,440 |  |  | — |  |  | — |  |  | — |  |  | 50,440 |
Net gain/(loss) on foreign exchange operations | 11,869 |  |  | (1,830) |  |  | (899) |  |  | 8 |  |  | 9,148 |
Net gain on derivative | (1,054) |  |  | — |  |  | — |  |  | — |  |  | (1,054) |
TOTAL REVENUE, NET | 212,239 |  |  | 133,084 |  |  | 6,930 |  |  | 8 |  |  | 352,261 |
Fee and commission expense | 22,527 |  |  | 18,901 |  |  | 297 |  |  | 29 |  |  | 41,754 |
Interest expense | 66,530 |  |  | 5,660 |  |  | 8,744 |  |  | — |  |  | 80,934 |
Insurance claims incurred, net of reinsurance | 34,167 |  |  | — |  |  | — |  |  | — |  |  | 34,167 |
Operating expense | 42,482 |  |  | 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 EXPENSE | 171,463 |  |  | 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 (Restated)
STATEMENTS OF OPERATIONS | Central Asia |  | Europe |  | U.S. |  | Middle East/Caucasus |  | Total
Fee and commission income | $ | 5,266 |  |  | $ | 86,594 |  |  | $ | 1,165 |  |  | $ | — |  |  | $ | 93,025 |
Net gain/(loss) on trading securities | 2,756 |  |  | 178,951 |  |  | (104) |  |  | — |  |  | 181,603 |
Net realized loss on investments available for sale | (622) |  |  | — |  |  | — |  |  | — |  |  | (622) |
Interest income | 24,206 |  |  | 2,400 |  |  | 13 |  |  | — |  |  | 26,619 |
Insurance underwriting income | 16,022 |  |  | — |  |  | — |  |  | — |  |  | 16,022 |
Net gain on foreign exchange operations | 1,304 |  |  | 166 |  |  | 38 |  |  | — |  |  | 1,508 |
Net loss on derivative | (656) |  |  | — |  |  | — |  |  | — |  |  | (656) |
TOTAL REVENUE, NET | 48,276 |  |  | 268,111 |  |  | 1,112 |  |  | — |  |  | 317,499 |
Fee and commission expense | 2,123 |  |  | 20,360 |  |  | 168 |  |  | — |  |  | 22,651 |
Interest expense | 14,490 |  |  | 1,805 |  |  | 421 |  |  | — |  |  | 16,716 |
Insurance claims incurred, net of reinsurance | 13,513 |  |  | — |  |  | — |  |  | — |  |  | 13,513 |
Operating expense | 12,206 |  |  | 4,952 |  |  | 4,583 |  |  | 29 |  |  | 21,770 |
Provision for impairment losses | 978 |  |  | — |  |  | — |  |  | — |  |  | 978 |
Other expense/(income), net | 794 |  |  | (8) |  |  | — |  |  | — |  |  | 786 |
TOTAL EXPENSE | 44,104 |  |  | 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 (Restated)
STATEMENTS OF OPERATIONS | Central Asia |  | Europe |  | U.S. |  | Middle East/Caucasus |  | Total
Fee and commission income | $ | 11,522 |  |  | $ | 157,484 |  |  | $ | 2,134 |  |  | $ | — |  |  | $ | 171,140 |
Net gain/(loss) on trading securities | 11,698 |  |  | 178,993 |  |  | (406) |  |  | — |  |  | 190,285 |
Net realized loss on investments available for sale | (653) |  |  | — |  |  | — |  |  | — |  |  | (653) |
Interest income | 45,035 |  |  | 3,762 |  |  | 60 |  |  | — |  |  | 48,857 |
Income from insurance activity | 30,098 |  |  | — |  |  | — |  |  | — |  |  | 30,098 |
Net gain/(loss) on foreign exchange operations | 2,774 |  |  | (60) |  |  | 2 |  |  | — |  |  | 2,716 |
Net loss on derivative | (715) |  |  | — |  |  | — |  |  | — |  |  | (715) |
TOTAL REVENUE, NET | 99,759 |  |  | 340,179 |  |  | 1,790 |  |  | — |  |  | 441,728 |
Fee and commission expense | 4,654 |  |  | 38,840 |  |  | 350 |  |  | — |  |  | 43,844 |
Interest expense | 26,758 |  |  | 3,503 |  |  | 701 |  |  | — |  |  | 30,962 |
Expense from insurance activity | 24,809 |  |  | — |  |  | — |  |  | — |  |  | 24,809 |
Operating expense | 23,081 |  |  | 9,744 |  |  | 8,372 |  |  | (6) |  |  | 41,191 |
Provision for impairment losses | 1,233 |  |  | 12 |  |  | — |  |  | — |  |  | 1,245 |
Other expense, net | 800 |  |  | (5) |  |  | — |  |  | — |  |  | 795 |
TOTAL EXPENSE | 81,335 |  |  | 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,
| 2022* |  | 2021* |  | 2022* |  | 2021*
Central Asia | $ | 1,036 |  |  | $ | 1,384 |  |  | $ | 2,138 |  |  | $ | 2,032 |
U.S. | 533 |  |  | 691 |  |  | 1,152 |  |  | 1,045 |
Europe | 135 |  |  | 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 Asia |  | Europe |  | U.S. |  | Middle East/Caucasus |  | Held for Sale |  | Total
Total assets | $ | 2,837,687 |  |  | $ | 685,110 |  |  | $ | 143,833 |  |  | $ | 2,120 |  |  | $ | 1,115,615 |  |  | $ | 4,784,365 |
Total liabilities | 2,561,607 |  |  | 373,466 |  |  | 137,716 |  |  | 365 |  |  | 1,089,880 |  |  | 4,163,034 |
Net assets | $ | 276,080 |  |  | $ | 311,644 |  |  | $ | 6,117 |  |  | $ | 1,755 |  |  | $ | 25,735 |  |  | $ | 621,331 |
| March 31, 2022 (Recasted)
| Central Asia |  | Europe |  | U.S. |  | Middle East/Caucasus |  | Held for Sale |  | Total
Total assets | $ | 1,423,529 |  |  | $ | 805,768 |  |  | $ | 172,679 |  |  | $ | 355 |  |  | $ | 825,419 |  |  | $ | 3,227,750 |
Total liabilities | 1,203,473 |  |  | 489,883 |  |  | 175,136 |  |  | 172 |  |  | 812,478 |  |  | 2,681,142 |
Net assets | $ | 220,056 |  |  | $ | 315,885 |  |  | $ | (2,457) |  |  | $ | 183 |  |  | $ | 12,941 |  |  | $ | 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 o ffices, 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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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