| Schedule of Error Corrections and Prior Period Adjustments |
The following tables summarizes the impact of these correction of errors for the three months ended June 30, 2022 and 2021:
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For the three months ended June 30, 2022
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As previously reported |
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Adjustments for discontinued operations |
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As recasted |
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Correction of errors related to classification of loans and bank customer accounts |
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Correction of errors related to classification of funds received for financing mortgage loans |
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As restated |
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| Net cash flows from operating activities |
$ |
(229,714) |
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$ |
31,393 |
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$ |
(198,321) |
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$ |
(11,849) |
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$ |
(55,252) |
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$ |
(265,422) |
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| Net cash flows from investing activities |
(57,621) |
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— |
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(57,621) |
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(126,638) |
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— |
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(184,259) |
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| Net cash flows from financing activities |
146,434 |
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(1,983) |
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|
144,451 |
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|
138,487 |
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55,252 |
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338,190 |
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| Effect of changes in foreign exchange rates on cash and cash equivalents |
241,661 |
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|
13,482 |
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255,143 |
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— |
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— |
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255,143 |
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| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
$ |
100,760
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$ |
42,892
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$ |
143,652
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$ |
—
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$ |
—
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$ |
143,652
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For the three months ended June 30, 2021 |
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As previously reported |
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Adjustments for discontinued operations |
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As recasted |
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Correction of errors related to classification of loans and bank customer accounts |
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As restated |
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| Net cash flows from operating activities |
$ |
(72,465) |
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$ |
1,341 |
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$ |
(71,124) |
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$ |
8,737 |
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$ |
(62,387) |
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| Net cash flows from investing activities |
(5,787) |
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(1) |
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(5,788) |
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(1,941) |
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(7,729) |
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| Net cash flows from financing activities |
14,658 |
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(2,614) |
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12,044 |
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(6,796) |
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5,248 |
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| Effect of changes in foreign exchange rates on cash and cash equivalents |
23,782 |
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|
1,275 |
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25,057 |
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— |
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25,057 |
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| NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
$ |
(39,812) |
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$ |
1
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$ |
(39,811) |
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$ |
—
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$ |
(39,811) |
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In addition, it was determined that in the Company's previously issued condensed consolidated financial statements for the period ended June 30, 2022, 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. The following tables summarize the impact of correction of the error on the Condensed Consolidated Statements of Operations and Other Comprehensive Income for the periods presented:
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For the three months ended June 30, 2022
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Issued |
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Adjustments for discontinued operations |
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As recasted |
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Correction of error |
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As restated |
| Fee and commission income |
$ |
131,641 |
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$ |
(37,281) |
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$ |
94,360 |
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$ |
(4,914) |
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$ |
89,446 |
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| Net gain on trading securities |
15,582 |
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(11,149) |
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|
4,433 |
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4,433 |
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| Net realized loss on investments available for sale |
(593) |
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— |
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(593) |
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— |
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(593) |
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| Interest income |
49,453 |
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(5,804) |
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43,649 |
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4,914 |
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48,563 |
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| Insurance underwriting income |
24,241 |
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— |
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24,241 |
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— |
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24,241 |
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| Net gain/(loss) on foreign exchange operations |
5,019 |
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(426) |
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4,593 |
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4,593 |
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| Net gain/(loss) on derivative |
1,265 |
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1 |
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1,266 |
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— |
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1,266 |
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| TOTAL REVENUE, NET |
$ |
226,608
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$ |
(54,659) |
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$ |
171,949
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$ |
—
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$ |
171,949
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For the three months ended June 30, 2021 |
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Issued |
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FF Life and FF Insurance acquisition |
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Adjustments for discontinued operations |
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As recasted |
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Correction of error |
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As restated |
| Fee and commission income |
$ |
97,407 |
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$ |
(24) |
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$ |
(18,167) |
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$ |
79,216 |
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$ |
(1,101) |
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$ |
78,115 |
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| Net gain on trading securities |
9,900 |
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|
841 |
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(2,059) |
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8,682 |
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8,682 |
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| Net realized loss on investments available for sale |
— |
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(31) |
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— |
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(31) |
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— |
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(31) |
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| Interest income |
18,077 |
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6,585 |
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(3,525) |
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21,137 |
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1,101 |
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22,238 |
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| Insurance underwriting income |
— |
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14,076 |
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— |
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14,076 |
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— |
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14,076 |
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| Net gain/(loss) on foreign exchange operations |
(1,187) |
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|
163 |
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|
2,232 |
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|
1,208 |
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1,208 |
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| Net gain/(loss) on derivative |
(59) |
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(1) |
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1 |
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(59) |
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— |
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(59) |
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| TOTAL REVENUE, NET |
$ |
124,138
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$ |
21,609
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$ |
(21,518) |
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$ |
124,229
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$ |
—
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$ |
124,229
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