RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the years ended March 31, 2022, 2021 and 2020, the Company earned fee and commission income from related parties in the amounts of $291,163, $184,725 and $56,247, respectively. Fee and commission income generated from FFIN Brokerage accounted for approximately 94% of our total related party commission income for the year ended March 31, 2022, as compared to approximately 34% of our total related party commission income for the year ended March 31, 2021, and 86% of our total related party commission income for the year ended March 31, 2020. Commission income earned from related parties is comprised primarily of brokerage commissions and commissions for money transfers by brokerage clients.
During the years ended March 31, 2022, 2021 and 2020, the Company paid commission expense to related parties in the amount of $16,307, $20,291 and $3,668, respectively. Commission expense paid to FFIN Brokerage accounted for approximately 58% of our total related party commission expense for the year ended March 31, 2022, as compared to approximately 15% of our total related party commission expense for the year ended March 31, 2021, and 80% of our total related party commission expense for the year ended March 31, 2020.
Interest income earned from related parties is comprised entirely of interest income from FFIN Brokerage, principally interest income from margin lending. During the years ended March 31, 2022 and 2021, the Company earned interest income from related parties in the amounts of $10,191 and $2,250, respectively. Interest income generated from FFIN Brokerage accounted for approximately 100% of the Company's total related party interest income for each of the years ended March 31, 2022 and 2021.
During the years ended March 31, 2022 and 2021 the Company recorded stock-based compensation expense for restricted stock grants to related parties in the amount of $1,329 and $0, respectively.
As of March 31, 2022 and 2021, the Company had cash and cash equivalents held in brokerage accounts of related parties totaling $22,787 and $12,237, respectively. 100% and 100% of these balances were due to Wisdompoint Capital LTD.
As of March 31, 2022 and 2021, the Company had bank commission receivables and receivables from brokerage clients from related parties totaling $244 and $960, respectively. Brokerage and other receivables from related parties result principally from commissions receivable on the brokerage operations of related parties.
As of March 31, 2022 and 2021, the Company had margin lending receivables with related parties totaling $107,649 and $9,866, respectively. 95% and 83% of these balances were due from FFIN Brokerage.
As of March 31, 2022 and 2021, the Company had margin lending payables to related parties, totaling $38,889 and $13,810, respectively. 100% and 100% of these balances were due to Wisdompoint Capital LTD.
As of March 31, 2022 and 2021, the Company had accounts payable due to a related party totaling $313 and $299, respectively.
As of March 31, 2022 and 2021, the Company had financial liability due to a related party totaling $1,637 and $1,707, respectively.
As of March 31, 2022 and 2021, the Company had customer liabilities on brokerage accounts and bank accounts of related parties totaling $325,904 and $235,460, respectively. 75% and 126%, of these balances were deposits from FFIN Brokerage.
As of March 31, 2022 and 2021, the Company had restricted customer cash deposited in current and brokerage accounts with related parties in the amounts of $222,651 and $156,878. 78% and 94%, of these balances were from FFIN Brokerage.
During the year ended March 31, 2022, the Company purchased loans in the aggregate amount of $59,839 and sold back loans totaling $12,107 to FFIN Credit.
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.
FFIN Brokerage is owned personally by Timur Turlov and is not part of our group of companies. FFIN Brokerage has its own brokerage customers, which include individuals and market-maker institutions and conducts business with the Company through a client omnibus account at Freedom EU. For additional information, see "Legacy Operations and Key Relationships" in "Business" in Part I Item 1 of the Company's Annual Report on Form 10-K.
Wisdompoint Capital LTD is a party related to Freedom EU through common management. Wisdompoint Capital LTD provides brokerage services to the Company.
Brokerage and related banking services, including margin lending, were provided to such related parties pursuant standard client account agreements and at standard market rates.
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