Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT

v3.22.4
RESTATEMENT
 9 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT RESTATEMENT
As previously disclosed in our quarterly report on Form 10-Q for the three and six months ended September 30, 2022, it was determined that there was an error in the Company's accounting related to the classification of loans issued and bank customer accounts in the Company's Condensed Consolidated Statement of Cash Flows, and during the course of the Company's preparation of quarterly report on Form 10-Q for the three months ended December 31, 2022, it was determined that there was an error in the Company's quarterly report on Form 10-Q for the three months ended December 31, 2021 related to the classification of interest income from margin lending to clients on the Company's Condensed Consolidated Statement of Operations.


Specifically, the Company identified that activities related to certain loans had been classified within "Cash flows from operating activities" and should have been classified within "Cash flows from investing activities". In addition, the Company identified that activities related to bank customer accounts had been classified within "Cash flows from operating activities" and should have been classified within "Cash flows from financing activities". On the Condensed Consolidated Statement of Operations, the Company's interest income from margin lending to clients had been classified within fee and commission income and should have been classified within interest income.

The Company has evaluated the effect of the foregoing incorrect classifications and concluded that restatement of previously filed consolidated financial statements as of and for the years ended March 31, 2022, 2021 and 2020 and for each of the quarterly periods ended June 30, 2022 and September 30, 2022 was necessary. The Company determined that the incorrect classifications did not have any impact on the Company’s net income or any per-share amounts.
The following table summarizes the impact of the correction of the errors on the Condensed Consolidated Statement of Cash Flows for the period presented:
Nine months ended December 31, 2021
As previously reported FF Life and FF Insurance acquisitions Adjustments for discontinued operations As recasted Correction of errors As restated
Net cash flows (used in)/from operating activities $ (582,080) $ 25,782  (34,465) $ (590,763) $ (21,090) $ (611,853)
Net cash flows used in investing activities (6,110) (52,276) —  (58,386) (34,709) (93,095)
Net cash flows (used in)/from financing activities 338,792  47,203  —  385,995  55,799  441,794 
Effect of changes in foreign exchange rates on cash and cash equivalents 10,593  (2,221) (1,998) 6,374  —  6,374 
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ (238,805) $ 18,488  $ (36,463) $ (256,780) $ —  $ (256,780)
The following table summarizes the impact of the correction of errors broken down by continuing and discontinued operations:
Nine months ended December 31, 2021
As restated Correction of errors As restated
Net cash flows used in operating activities from continuing operations $ (256,764) $ (132,188) $ (388,952)
Net cash flows (used in)/from operating activities from discontinued operations (333,999) 111,098  (222,901)
Net cash flows used in investing activities from continuing operations (56,167) (34,138) (90,305)
Net cash flows used in investing activities from discontinued operations (2,219) (571) (2,790)
Net cash flows from financing activities from continuing operations 320,364  83,448  403,812 
Net cash flows from/used in financing activities from discontinued operations 65,631  (27,649) 37,982 
Effect of changes in foreign exchange rates on cash and cash equivalents from continuing operations (7,321) —  (7,321)
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations 13,695  —  13,695 
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH $ (256,780) $ —  $ (256,780)
In the Company's previously issued condensed consolidated financial statements, interest income from margin lending to clients had been erroneously classified within fee and commission income from brokerage services. Such income has been reclassified to interest income as a separate sub-line item within interest income entitled interest income from margin lending to clients. For additional information see Note 19 Net interest income/(expense) to the condensed consolidated financial statements. The following tables summarize the impact of corrections of the errors on the Condensed Consolidated Statement of Operations for the periods presented:
For the three months ended December 31, 2021
Issued FF Life and FF Insurance acquisition Adjustments for discontinued operations As restated Correction of errors As restated
Fee and commission income $ 122,237  $ (3) $ (25,905) $ 96,329  $ (4,921) $ 91,408 
Net gain on trading securities 403  649  6,611  7,663  —  7,663 
Interest income 22,907  8,858  (3,029) 28,736  4,921  33,657 
Insurance underwriting income —  21,394  —  21,394  —  21,394 
Net gain on foreign exchange operations 451  255  655  1,361  —  1,361 
Net loss on derivative (314) —  —  (314) —  (314)
TOTAL REVENUE, NET 145,684  31,153  (21,668) 155,169  —  155,169 

For the nine months ended December 31, 2021
Issued FF Life and FF Insurance acquisition Adjustments for discontinued operations As restated Correction of errors As restated
Fee and commission income $ 336,178  $ (166) $ (65,251) $ 270,761  $ (8,212) $ 262,549 
Net gain on trading securities $ 185,554  2,677  9,716  197,947  —  197,947 
Interest income 61,047  23,175  (9,920) 74,302  8,212  82,514 
Insurance underwriting income —  51,491  —  51,491  —  51,491 
Net gain on foreign exchange operations 885  303  2,888  4,076  —  4,076 
Net loss on derivative (1,028) —  —  (1,028) —  (1,028)
TOTAL REVENUE, NET 582,636  77,480  (62,567) 597,549  —  597,549