NOTE 12– SECURITIES SOLD, NOT YET PURCHASED - AT FAIR VALUE

As of December 31, 2020, and March 31, 2020, the Company’s securities sold, not yet purchased at fair value was $9,078 and $0, respectively.

During the nine months ended December 31, 2020, the Company sold shares that were not owned by the Company in the amount of $8,508. During the nine months ended December 31, 2020, the Company recognized a loss on the change in the fair value and foreign exchange of financial liabilities in the amounts of $346 and $224, respectively, in the Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income.

A short sale involves the sale of a security that is not owned in the expectation of purchasing the same security (or a security exchangeable) at a later date at a lower price. A short sale involves the risk of a theoretically unlimited increase in the market price of the security that would result in a theoretically unlimited loss.