Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.23.1
SEGMENT REPORTING
 3 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 24 – SEGMENT REPORTING
The Company historically operated as a single operating segment. Subsequent to the initial issuance of these financial statements, with the planned restructuring of the Company's operations and divestiture of Russian subsidiaries, coupled with the continued expansion, there was an election to reorganize operations geographically into five regional segments: Central Asia, Europe, United States, Middle East/Caucasus and Russia. The Company's CODM do not review inter-segment revenues as part of Segment reporting.
Due to the restatements as discussed in Note 4, the Company has also restated its segment reporting to align with the changes in reportable segments subsequent to the initial issuance of these financial statements. Restated segment information was provided to CODM in their reports.
The following tables summarize the Company's Statement of Operations and Statements of Other Comprehensive Income by its geographic segments. Intercompany balances were eliminated for separate disclosure:
Three months ended December 31, 2021 (Restated)
STATEMENTS OF OPERATIONS
 Central Asia Europe U.S. Middle East/Caucasus Total
Fee and commission income (1)
$ 6,993  $ 83,162  $ 1,256  —  91,411 
Net gain on trading securities 6,432  481  101  —  7,014 
Interest income 19,845  4,940  14  —  24,799 
Net gain/(loss) on foreign exchange operations 1,747  (437) (209) 5  1,106 
Net (loss)/ gain on derivative (314) —  (314)
TOTAL REVENUE, NET 34,703  88,146  1,162  5  124,016 
Fee and commission expense 2,381  18,106  153  —  20,640 
Interest expense 14,097  3,919  418  —  18,434 
Operating expense / (income) 11,909  10,517  5,903  (86) 28,243 
Provision for impairment losses —  —  32  —  32 
Other income /(expense) , net (83) (13) 2  (94)
TOTAL EXPENSE 28,304  32,529  6,506  (84) 67,255 
NET INCOME BEFORE INCOME TAX $ 6,399  $ 55,617  $ (5,344) 89  $ 56,761 
Income tax expense 1,294  (7,176) 4,114  —  (1,768)
NET PROFIT/(LOSS) $ 7,693  $ 48,441  $ (1,230) 89  $ 54,993 
Nine months ended December 31, 2021 (Restated)
STATEMENTS OF OPERATIONS
 Central Asia Europe U.S. Middle East/Caucasus Total
Fee and commission income (1)
$ 18,258  $ 241,066  $ 3,391  —  262,715 
Net gain/(loss) on trading securities 16,102  179,473  (305) —  195,270 
Interest income 51,250  8,015  74  —  59,339 
Net gain/(loss) on foreign exchange operations 4,472  (497) (207) 5  3,773 
Net (loss)/ gain on derivative (1,028) —  —  —  (1,028)
TOTAL REVENUE, NET 89,054  428,057  2,953  5  520,069 
Fee and commission expense 3,797  56,946  503  —  61,246 
Interest expense 35,891  7,422  1,119  —  44,432 
Operating expense 29,099  20,089  14,275  81  63,544 
Provision for impairment losses 571  11  32  —  614 
Other income/(expense), net 503  (21) —  (2) 480 
TOTAL EXPENSE 69,861  84,447  15,929  79  170,316 
NET INCOME BEFORE INCOME TAX 19,193  343,610  (12,976) (74) 349,753 
Income tax (expense)/ benefit 1,324  (21,190) (19,114) —  (38,980)
NET PROFIT/(LOSS) 20,517  322,420  (32,090) (74) 310,773 
Three months ended December 31, 2020 (Restated)
STATEMENTS OF OPERATIONS
 Central Asia Europe U.S. Total
Fee and commission income 3,445  54,629  25  58,099 
Net gain on trading securities 6,768  28  7,176  13,972 
Interest income 2,980  2,031  213  5,224 
Net gain/(loss) on foreign exchange operations 295  88  (280) 103 
Net (loss)/ gain on derivative 946  —  —  946 
14,434  56,776  7,134  78,344 
TOTAL REVENUE, NET
Fee and commission expense 332  17,874  89  18,295 
Interest expense 1,603  1,096  524  3,223 
Operating expense 4,776  4,070  1,492  10,338 
Provision for impairment losses 952  —  —  952 
Other income/ (expense), net 16  (1) —  15 
TOTAL EXPENSE 7,679  23,039  2,105  32,823 
NET INCOME BEFORE INCOME TAX 6,755  33,737  5,029  45,521 
Income tax (expense)/benefit (3) (3,548) (3,048) (6,599)
NET PROFIT/(LOSS) 6,752  30,189  1,981  38,922 
Nine months ended December 31, 2020 (Restated)
STATEMENTS OF OPERATIONS
 Central Asia Europe U.S. Total
Fee and commission income 11,754  124,208  25  135,987 
Net gain on trading securities 12,117  87  7,039  19,243 
Interest income 8,379  2,731  652  11,762 
Net gain/(loss) on foreign exchange operations 605  (238) (225) 142 
Net (loss)/ gain on derivative 61  —  —  61 
TOTAL REVENUE, NET 32,916  126,788  7,491  167,195 
Fee and commission expense 618  44,927  226  45,771 
Interest expense 5,020  2,018  1,764  8,802 
Operating expense 12,640  6,671  2,925  22,236 
Provision for impairment losses 770  404  399  1,573 
Other income/(expense), net (41) (16) —  (57)
TOTAL EXPENSE 19,007  54,004  5,314  78,325 
NET INCOME BEFORE INCOME TAX 13,909  72,784  2,177  88,870 
Income tax (expense)/benefit (6) (7,381) (4,311) (11,698)
NET PROFIT/(LOSS) 13,903  65,403  (2,134) 77,172 
(1) All trading of U.S. and European exchange traded and OTC securities by all of the Company's securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at Freedom EU.
The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure:
December 31, 2021 (Restated)
Central Asia Europe U.S. Middle East/Caucasus Held for Sale Total
Total assets 1,157,484  622,309  27,219  387  919,592  2,726,991 
Total liabilities 905,796  344,521  75,279  178  809,727  2,135,501 
Net assets $ 251,688  $ 277,788  $ (48,060) $ 209  $ 109,865  $ 591,490 
March 31, 2021 (Restated)
Central Asia Europe U.S. Middle East/Caucasus Held for Sale Total
Total assets 714,380  591,072  46,682  140  748,048  2,100,322 
Total liabilities 557,747  530,227  60,117  3  676,568  1,824,662 
Net assets $ 156,633  $ 60,845  $ (13,435) $ 137  $ 71,480  $ 275,660