On October 26, 2017, Freedom KZ sold shares received as a pledge under reverse repurchase agreements and recognized financial liabilities at fair value in the amount of $1,435. On January 30, 2018, Freedom KZ partially closed short positions in amount of $723 by purchasing securities from a third party reducing the financial liability. During the period from October 26, 2017 to March 31, 2018, Freedom KZ recognized a gain on the change in fair value of financial liabilities at fair value through the Consolidated Statements of Operations and Statements of Other Comprehensive Income in the amount of $183 with a foreign exchange translation loss of $56. As of March 31, 2018, Freedom KZ’s financial liabilities at fair value was $585.

On January 30, 2018, FRHC sold shares pledged under reverse repurchase agreements and recognized financial liabilities at fair value in the amount $543. During the period from January 30, 2018 to March 31, 2018, the Company recognized a foreign exchange translation loss in the amount of $7. As of March 31, 2018, the Company’s financial liabilities at fair value was $550.

A short sale involves the sale of a security that are not owned in the expectation of purchasing the same security (or a security exchangeable) at a later date at a lower price. A short sale involves the risk of a theoretically unlimited increase in the market price of the security that would result in a theoretically unlimited loss.