| Revision of Financial Statement |
When preparing the consolidated financial statements for the year
ended March 31, 2018, 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 Consolidated Statement of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2017 have
been revised as follows:
| |
|
As of 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, net |
|
|
- |
|
|
|
481 |
|
|
|
481 |
|
| Loans issued |
|
|
- |
|
|
|
65 |
|
|
|
65 |
|
| Deferred tax assets |
|
|
- |
|
|
|
1,026 |
|
|
|
1,026 |
|
| Fixed assets, net |
|
|
2 |
|
|
|
1,094 |
|
|
|
1,096 |
|
| Goodwill |
|
|
- |
|
|
|
981 |
|
|
|
981 |
|
| Other assets, net |
|
|
- |
|
|
|
772 |
|
|
|
772 |
|
| TOTAL ASSETS |
|
$ |
8,587 |
|
|
$ |
112,776 |
|
|
$ |
121,363 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liability |
|
$ |
- |
|
|
$ |
495 |
|
|
$ |
495 |
|
| Loans received |
|
|
- |
|
|
|
2 |
|
|
|
2 |
|
| Debt securities issued |
|
|
- |
|
|
|
3,459 |
|
|
|
3,459 |
|
| Customer liabilities |
|
|
- |
|
|
|
7,635 |
|
|
|
7,635 |
|
| Current income tax liability |
|
|
- |
|
|
|
149 |
|
|
|
149 |
|
| Trade payables |
|
|
206 |
|
|
|
334 |
|
|
|
540 |
|
| Deferred distribution payments |
|
|
8,534 |
|
|
|
- |
|
|
|
8,534 |
|
| Securities repurchase agreement obligation |
|
|
- |
|
|
|
56,289 |
|
|
|
56,289 |
|
| Other liabilities |
|
|
- |
|
|
|
373 |
|
|
|
373 |
|
| 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 loss |
|
|
- |
|
|
|
(6,937 |
) |
|
|
(6,937 |
) |
| TOTAL STOCKHOLDERS’ EQUITY/(DEFICIT) |
|
|
(153 |
) |
|
|
44,040 |
|
|
|
43,887 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
8,587 |
|
|
$ |
112,776 |
|
|
$ |
121,363 |
|
| |
|
For the year ended March 31, 2017 |
|
| STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (RECAST) |
|
As previously reported
|
|
|
Recast |
|
|
As recasted |
|
| |
|
|
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
|
|
| Fee and commission income |
|
$ |
- |
|
|
$ |
4,090 |
|
|
$ |
4,090 |
|
| Net gain on trading securities |
|
|
- |
|
|
|
10,806 |
|
|
|
10,806 |
|
| Interest income |
|
|
4 |
|
|
|
2,002 |
|
|
|
2,006 |
|
| Net gain on derivatives |
|
|
- |
|
|
|
1,905 |
|
|
|
1,905 |
|
| Net realized gain on investments available for sale |
|
|
- |
|
|
|
276 |
|
|
|
276 |
|
| Net gain on sale of fixed assets |
|
|
- |
|
|
|
29 |
|
|
|
29 |
|
| Net gain on foreign exchange operations |
|
|
- |
|
|
|
274 |
|
|
|
274 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL REVENUE, NET |
|
$ |
4 |
|
|
$ |
19,382 |
|
|
$ |
19,386 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
$ |
- |
|
|
$ |
3,807 |
|
|
$ |
3,807 |
|
| Fee and commission expense |
|
|
- |
|
|
|
346 |
|
|
|
346 |
|
| Operating expense |
|
|
582 |
|
|
|
8,669 |
|
|
|
9,251 |
|
| Other expense, net |
|
|
- |
|
|
|
210 |
|
|
|
210 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL EXPENSE |
|
$ |
582 |
|
|
$ |
13,032 |
|
|
$ |
13,614 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME/(LOSS) BEFORE INCOME TAX |
|
$ |
(578 |
) |
|
$ |
6,350 |
|
|
$ |
5,772 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax benefit |
|
|
- |
|
|
|
524 |
|
|
|
524 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME/(LOSS) BEFORE NONCONTROLLING INTERESTS |
|
$ |
(578 |
) |
|
$ |
6,874 |
|
|
$ |
6,296 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Net income attributable to noncontrolling interest in subsidiary |
|
|
- |
|
|
|
9 |
|
|
|
9 |
|
|
NET INCOME/(LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS
|
|
$ |
(578 |
) |
|
$ |
6,865 |
|
|
$ |
6,287 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in unrealized gain on investments available-for-sale, net of tax effect |
|
$ |
- |
|
|
$ |
7 |
|
|
$ |
7 |
|
| Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect |
|
|
- |
|
|
|
(276 |
) |
|
|
(276 |
) |
| Foreign currency translation adjustments, net of tax |
|
|
- |
|
|
|
4,465 |
|
|
|
4,465 |
|
| COMPREHENSIVE INCOME/(LOSS) BEFORE NONCONTROLLING INTERESTS |
|
$ |
(578 |
) |
|
$ |
11,070 |
|
|
$ |
10,492 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Comprehensive income attributable to noncontrolling interest in subsidiary |
|
|
- |
|
|
|
9 |
|
|
|
9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS
|
|
$ |
(578 |
) |
|
$ |
11,061 |
|
|
$ |
10,483 |
|
|