Quarterly report pursuant to Section 13 or 15(d)

RECAST

v3.22.2
RECAST
 3 Months Ended
Jun. 30, 2022
Accounting Changes and Error Corrections [Abstract]  
Recast RECAST
When preparing the condensed consolidated financial statements as of and for the three months ended June 30, 2022, management determined that certain amounts included in the Company’s condensed consolidated financial statements as of March 31, 2022, required revision due to the closing of the acquisition of Freedom Life and Freedom Insurance in May 2022, which were deemed to be entities under common control with the Company since 2018. For additional information see Note 22 Acquisitions and Disposals of Subsidiaries to the condensed consolidated financial statements.

As required by ASC 805 Business Combinations, acquisitions with parties under common control are required to have all previously presented periods recast to the date of acquisition.

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 months ended June 30, 2022, have been revised as follows:
As of March 31, 2022
As previously reported Recast As recasted
ASSETS
Cash and cash equivalents $ 625,547  $ 816  $ 626,363 
Restricted cash 553,680  —  553,680 
Trading securities 1,203,479  77,395  1,280,874 
Available-for-sale securities, at fair value 1  161,363  161,364 
Brokerage and other receivables, net 357,567  179  357,746 
Loans issued 94,797  43  94,840 
Fixed assets, net 21,365  437  21,802 
Intangible assets, net 5,791  1,650  7,441 
Goodwill 5,388  510  5,898 
Right-of-use asset 15,669  684  16,353 
Deferred tax assets 12,018  51  12,069 
Assets from insurance activity —  5,712  5,712 
Other assets, net 25,707  7,643  33,350 
TOTAL ASSETS $ 2,921,009  $ 256,483  $ 3,177,492 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Securities repurchase agreement obligations $ 775,178  $ 97,514  $ 872,692 
Customer liabilities 1,417,937  (983) 1,416,954 
Trade payables 45,229  1  45,230 
Liabilities from insurance activity —  119,490  119,490 
Current income tax liability 14,556  —  14,556 
Securities sold, not yet purchased – at fair value 14,103  —  14,103 
Loans received 3,538  —  3,538 
Debt securities issued 99,027  —  99,027 
Lease liability 15,315  720  16,035 
Deferred distribution payments 8,534  —  8,534 
Other liabilities 19,917  808  20,725 
TOTAL LIABILITIES 2,413,334  217,550  2,630,884 
Commitments and Contingent Liabilities (Note 20) —  —  — 
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  —  59 
Additional paid in capital 141,340  33,406  174,746 
Retained earnings 426,563  15,360  441,923 
Accumulated other comprehensive loss (53,291) (9,834) (63,125)
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY 514,671  38,932  553,603 
Less: Net (loss)/income attributable to noncontrolling interest in subsidiary (6,996) 1  (6,995)
TOTAL SHAREHOLDERS’ EQUITY 507,675  38,933  546,608 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 2,921,009  $ 256,483  $ 3,177,492 
Three months ended June 30, 2021
As previously reported Recast As recasted
Revenue:
Fee and commission income $ 97,406  $ (23) $ 97,383 
Net gain on trading securities 9,900  841  10,741 
Net realized loss on investments available for sale —  (31) (31)
Interest income 18,077  6,585  24,662 
Income from insurance activity —  14,076  14,076 
Net gain/(loss) on foreign exchange operations (1,187) 163  (1,024)
Net loss on derivative (59) (1) (60)
TOTAL REVENUE, NET 124,137  21,610  145,747 
Expense:
Fee and commission expense 21,863  1,397  23,260 
Interest expense 14,272  2,223  16,495 
Expense from insurance activity —  11,296  11,296 
Operating expense 30,318  2,926  33,244 
Provision for impairment losses 293  —  293 
Other expense, net 14  111  125 
TOTAL EXPENSE 66,760  17,953  84,713 
NET INCOME BEFORE INCOME TAX $ 57,377  $ 3,657  $ 61,034 
Income tax expense (5,669) 5  (5,664)
NET INCOME $ 51,708  $ 3,662  $ 55,370 
Less: Net loss attributable to non-controlling interest in subsidiary (52) —  (52)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS 51,760  3,662  55,422 
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect —  874  874 
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect —  31  31 
Foreign currency translation adjustments, net of tax effect 3,300  (278) 3,022 
OTHER COMPREHENSIVE INCOME 3,300  627  3,927 
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS $ 55,008  $ 4,289  $ 59,297 
Less: Comprehensive loss attributable to non-controlling interest in subsidiary (52) —  (52)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 55,060  $ 4,289  $ 59,349