NOTE 16 – RELATED PARTY TRANSACTIONS

During the three months ended September 30, 2021, and 2020, the Company earned commission income from related parties in the amounts of $84,444 and $41,167, respectively. During the six months ended September 30, 2021, and 2020, the Company earned commission income from related parties in the amounts of $150,416 and $71,957, respectively. Commission income earned from related parties is comprised primarily of brokerage commissions and commissions for money transfers by brokerage clients.

During the three months ended September 30, 2021, and 2020, the Company recorded stock-based compensation expense for restricted stock grants to related parties in the amount of $385 and $0, respectively. During the six months ended September 30, 2021, and 2020, the Company recorded stock-based compensation expense for restricted stock grants to related parties in the amount of $566 and $0, respectively.

As of September 30, 2021, and March 31, 2021, the Company had cash and cash equivalents held in brokerage accounts of related parties totaling $22,890 and $12,256, respectively.

As of September 30, 2021, and March 31, 2021, the Company had bank commission receivables and receivables from brokerage clients from related parties totaling $268 and $962, respectively. Brokerage and other receivables from related parties result principally from commissions receivable on the brokerage operations of related parties.

As of September 30, 2021, and March 31, 2021, the Company had margin lending receivables with related parties totaling $216,171 and $9,886, respectively.

As of September 30, 2021, and March 31, 2021, the Company had margin lending payables to related parties, totaling $44,327 and $13,810, respectively.

As of September 30, 2021, and March 31, 2021, the Company had accounts payable due to a related party totaling $240 and $339, respectively.

As of September 30, 2021, and March 31, 2021, the Company had financial liability with related parties totaling $1,876 and $1,707, respectively.

As of September 30, 2021, and March 31, 2021, the Company had customer liabilities to related parties totaling $359,384 and $327,610, respectively.

As of September 30, 2021, and March 31, 2021, the Company had restricted customer cash deposited in current and brokerage accounts with related parties in the amounts of $248,371 and $156,878.

During the six months ended September 30, 2021, the Company purchased loans from a related party microfinance organization in the aggregate amount of $19,474 and sold back loans totaling $2,860. As of September 30, 2021, and March 31, 2021, the Company held loans purchased from related parties, net of alloances in the amounts of $13,428 and $0.

In July 2021, to comply with certain foreign ownership restrictions relating to registered Ukrainian broker-dealers, the Company sold 23.88% of the outstanding equity interest of Freedom UA to Askar Tashtitov, the Company’s president, for $416. For additional information regarding this transaction, see Note 1 – Description of Business.

Brokerage and related banking services, including margin lending, were provided to related parties pursuant to standard client account agreements and at standard market rates.