| Revision of Financial Statement |
When preparing the consolidated financial statements for the year
ended March 31, 2019, management determined that certain amounts included in the Company’s March 31, 2018, consolidated financial
statements required revision, due to the closing of the acquisition of Freedom RU on June 29, 2017 the closing of the acquisition
of Freedom CY on November 1, 2017, and the completion of the mergers of Nettrader in May 2018, and Asyl in April 2018, which were
deemed to be entities under common control with the Company.
Certain reclassifications also have been made to the prior year’s
consolidated financial statements to enhance comparability with the current year’s consolidated financial statements following
the increase in intangible assets of the Company related to acquisition of the Tradernet trading platform. As a result, certain
line items have been amended in the Consolidated Balance Sheets. Comparative figures have been adjusted to conform to the current
period’s presentation.
The previously issued Consolidated Balance Sheet as of March 31,
2018, and Consolidated Statement of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2018 have
been revised as follows:
| |
|
As of March 31, 2018 |
| BALANCE SHEETS (RECAST) |
|
As previously reported |
|
Recast |
|
As recasted |
| |
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ 64,531 |
|
$ 1,200 |
|
$ 65,731 |
| Restricted cash |
|
13,671 |
|
8,291 |
|
21,962 |
| Trading securities |
|
212,319 |
|
276 |
|
212,595 |
| Available-for-sale securities, at fair value |
|
2 |
|
238 |
|
240 |
| Brokerage and other receivables, net |
|
21,109 |
|
3,776 |
|
24,885 |
| Loans issued |
|
8,754 |
|
- |
|
8,754 |
| Deferred tax assets |
|
1,046 |
|
(274) |
|
772 |
| Fixed assets, net |
|
2,362 |
|
48 |
|
2,410 |
| Intangible assets, net |
|
- |
|
5,692 |
|
5,692 |
| Goodwill |
|
1,798 |
|
1,490 |
|
3,288 |
| Other assets, net |
|
4,494 |
|
79 |
|
4,573 |
| TOTAL ASSETS |
|
$ 330,086 |
|
$ 20,816 |
|
$ 350,902 |
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Securities sold, not yet purchased - at fair value |
|
$ 1,135 |
|
$ - |
|
$ 1,135 |
| Loans received |
|
7,143 |
|
- |
|
7,143 |
| Debt securities issued |
|
10,840 |
|
382 |
|
11,222 |
| Customer liabilities |
|
21,855 |
|
8,817 |
|
30,672 |
| Trade payables |
|
8,998 |
|
15 |
|
9,013 |
| Deferred distribution payments |
|
8,534 |
|
- |
|
8,534 |
| Securities repurchase agreement obligations |
|
154,775 |
|
- |
|
154,775 |
| Deferred income tax liabilities |
|
387 |
|
(387) |
|
- |
| Other liabilities |
|
1,319 |
|
57 |
|
1,376 |
| TOTAL LIABILITIES |
|
214,986 |
|
8,884 |
|
223,870 |
| |
|
|
|
|
|
|
| STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Preferred stock |
|
- |
|
- |
|
- |
| Common stock |
|
58 |
|
- |
|
58 |
| Additional paid in capital |
|
87,049 |
|
13,131 |
|
100,180 |
| Retained earnings |
|
35,387 |
|
(1,036) |
|
34,351 |
| Accumulated other comprehensive loss |
|
(7,394) |
|
(163) |
|
(7,557) |
| TOTAL STOCKHOLDERS’ EQUITY |
|
115,100 |
|
11,932 |
|
127,032 |
| |
|
|
|
|
|
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ 330,086 |
|
$ 20,816 |
|
$ 350,902 |
| |
|
For the year ended March 31, 2018 |
| STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (RECAST) |
|
As previously reported
|
|
Recast |
|
As recasted |
| |
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
| Fee and commission income |
|
$ 10,796 |
|
$ 1,378 |
|
$ 12,174 |
| Net gain on trading securities |
|
33,746 |
|
481 |
|
34,227 |
| Interest income |
|
8,184 |
|
651 |
|
8,835 |
| Net gain on derivatives |
|
643 |
|
- |
|
643 |
| Net gain on sale of fixed assets |
|
5 |
|
(5) |
|
- |
| Net gain on foreign exchange operations |
|
1,850 |
|
28 |
|
1,878 |
| |
|
|
|
|
|
|
| TOTAL REVENUE, NET |
|
55,224 |
|
2,533 |
|
57,757 |
| |
|
|
|
|
|
|
| Expense: |
|
|
|
|
|
|
| Interest expense |
|
14,244 |
|
491 |
|
14,735 |
| Fee and commission expense |
|
2,066 |
|
222 |
|
2,288 |
| Operating expense |
|
18,927 |
|
2,773 |
|
21,700 |
| Provision for impairment losses |
|
- |
|
423 |
|
423 |
| Other (income)/expense, net |
|
275 |
|
(279) |
|
(4) |
| |
|
|
|
|
|
|
| TOTAL EXPENSE |
|
35,512 |
|
3,630 |
|
39,142 |
| |
|
|
|
|
|
|
| NET INCOME BEFORE INCOME TAX |
|
19,712 |
|
(1,097) |
|
18,615 |
| |
|
|
|
|
|
|
| Income tax expense |
|
(479) |
|
61 |
|
(418) |
| |
|
|
|
|
|
|
| NET INCOME |
|
$ 19,233 |
|
$ (1,036) |
|
$ 18,197 |
| |
|
|
|
|
|
|
| OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
| Changes in unrealized gain on investments available-for-sale, net of tax effect |
|
- |
|
(76) |
|
(76) |
| Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect |
|
- |
|
54 |
|
54 |
| Foreign currency translation adjustments, net of tax |
|
(457) |
|
(141) |
|
(598) |
| |
|
|
|
|
|
|
| COMPREHENSIVE INCOME |
|
$ 18,776 |
|
$ (1,199) |
|
$ 17,577 |
|