Quarterly report pursuant to Section 13 or 15(d)

3. Revision of Financial Statement

v3.8.0.1
3. Revision of Financial Statement
 9 Months Ended
Dec. 31, 2017
Revision Of Financial Statement  
Revision of Financial Statement

When preparing the condensed consolidated financial statements for the three and nine months ended December 31, 2017, management determined that certain amounts included in the Company’s March 31, 2017, consolidated financial statements required revision, due to closing of the acquisition of Freedom RU on June 29, 2017, and Freedom CY on November 1, 2017, which were deemed to be entities under common control with the Company. The previously issued Consolidated Balance Sheet as of March 31, 2017, and Condensed Consolidated Statement of Operations and Statements of Other Comprehensive Income/(Loss) for the three-month and nine-month periods ended December 31, 2016 have been revised as follows:

 

 

    March 31, 2017  
 BALANCE SHEETS (RECAST)   As previously reported     Recast     As recasted  
                   

ASSETS

 

                  
Cash and cash equivalents   $ 51     $ 22,565     $ 22,616  
Restricted cash     8,534       4,215       12,749  
Trading securities     -       81,575       81,575  
Available-for-sale securities, at fair value     -       2       2  
Brokerage and other receivables     -       514       514  
Loans issued     -       65       65  
Deferred tax assets     -       1,026       1,026  
Fixed assets     2       1,094       1,096  
Goodwill     -       981       981  
Other assets     -       739       739  
TOTAL ASSETS   $ 8,587     $ 112,776     $ 121,363  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)                        
                         
Derivative liability   $ -     $ 495     $ 495  
Debt securities issued     -       3,459       3,459  
Customer liabilities     -       7,635       7,635  
Current income tax liability     -       149       149  
Trade payables     206       339       545  
Deferred distribution payments     8,534       -       8,534  
Securities repurchase agreement obligation     -       56,289       56,289  
Other liabilities     -       370       370  
TOTAL LIABILITIES     8,740       68,736       77,476  
                         
STOCKHOLDERS’ EQUITY/(DEFICIT)                        
                         
Preferred Stock     -       -       -  
Common stock     280       (269 )     11  
Additional paid in capital     776       33,883       34,659  
Retained earnings/Accumulated deficit     (1,209 )     17,363       16,154  
Accumulated other comprehensive income     -       (6,937 )     (6,937 )
TOTAL STOCKHOLDERS’ EQUITY/(DEFICIT)     (153 )     44,040       43,887  
                         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)   $ 8,587     $ 112,776     $ 121,363  

  

    For the three months ended December 31, 2016  
STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME/(LOSS) (RECAST)   As previously reported     Recast     As recasted  
                   
Revenue:                  
Fee and commission income   $ -     $ 1,116     $ 1,116  
Net gain on trading securities     -       1,164       1,164  
Interest income, net     1       723       724  
Net loss on foreign exchange operations     -       (138 )     (138 )
                         
TOTAL REVENUE     1       2,865       2,866  
                         
Expense:                        
Interest expense     -       1,120       1,120  
Fee and commission expense     -       129       129  
Operating expense     100       2,361       2,461  
Other expense, net     -       141       141  
                         
TOTAL EXPENSE     100       3,751       3,851  
                         
NET LOSS BEFORE INCOME TAX     (99 )     (886 )     (985 )
                         
Income tax benefit     -       413       413  
                         
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (99 )   $ (473 )   $ (572 )
                         
OTHER COMPREHENSIVE INCOME                        
Change in unrealized gain on investments available-for-sale, net of tax effect     -       (276 )     (276 )
Foreign currency translation adjustments, net of tax     -       453       453  
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (99 )   $ (296 )   $ (395 )
                         

 

    For the nine months ended December 31, 2016  
STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME/(LOSS) (RECAST)   As previously reported     Recast     As recasted  
                   
Revenue:                  
Fee and commission income   $ -     $ 2,462     $ 2,462  
Interest income     3       1,707       1,710  
Net gain on trading securities     -       4,583       4,583  
Net gain on sale of fixed assets     -       28       28  
Net gain on foreign exchange operations     -       296       296  
                         
TOTAL REVENUE     3       9,076       9,079  
                         
Expense:                        
Interest expense     -       2,472       2,472  
Fee and commission expense     -       216       216  
Operating expense     438       6,256       6,694  
Other expense, net     -       267       267  
                         
TOTAL EXPENSE     438       9,211       9,649  
                         
NET LOSS BEFORE INCOME TAX     (435 )     (135 )     (570 )
                         
Income tax benefit     -       960       960  
                         
NET (LOSS)/INCOME BEFORE NONCONTROLLING INTERESTS   $ (435 )   $ 825     $ 390  
                         
Less: Net income attributable to noncontrolling interest in subsidiary     -       7       7  
NET (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS     (435 )     818       383  
                         
OTHER COMPREHENSIVE INCOME                        
Change in unrealized gain on investments available-for-sale, net of tax effect     -       (270 )     (270 )
Foreign currency translation adjustments, net of tax     -       1,933       1,933  
                         
COMPREHENSIVE INCOME/(LOSS) BEFORE NONCONTROLLING INTERESTS     (435 )     2,488       2,053  
                         
Less: Comprehensive income attributable to noncontrolling interest in subsidiary     -       7       7  
                         
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (435 )   $ 2,481     $ 2,046