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RECAST (Tables) | 12 Months Ended
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Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract] |
Revision of prior period statements | The following table illustrates the impact of ASC 326.
| March 31, 2023 |  | ASC 326 Adoption Impact |  | April 1, 2023
Allowance for credit losses for loans |  |  |  |  |
Mortgage loans | $ | 554 |  |  | $ | 2,216 |  |  | $ | 2,770 |
Car loans | 759 |  |  | 6,462 |  |  | 7,221 |
Collateralized bank customer loans | — |  |  | 35 |  |  | 35 |
Uncollateralized banks customer loans | 233 |  |  | 7,436 |  |  | 7,669 |
Right of claim for purchased retail loans | 1,246 |  |  | 9,046 |  |  | 10,292 |
Allowance for credit losses for other financial assets | — |  |  | 249 |  |  | 249 |
Total allowance for credit losses | $ | 2,792 |  |  | $ | 25,444 |  |  | $ | 28,236 |
Retained earnings |  |  |  |  |
Total allowance increase |  |  | 25,444 |  |  |
Decrease to retained earnings, pre-tax |  |  | 25,444 |  |  |
Tax effect |  |  | (2,671) |  |  |
Foreign currency translation difference effect |  |  | (1) |  |  |
Decrease to retained earnings, net of tax effect |  |  | $ | 22,772 |  |  |
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 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 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
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 CONTROLLING INTEREST | $ | 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 |

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