Freedom Holding Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

3. Revision of Financial Statement

3. Revision of Financial Statement

3 Months Ended

Jun. 30, 2017

When preparing the consolidated financial statements for the three months ended June 30, 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, which was deemed to be an entity under common control with the Company. The previously issued Consolidated Balance Sheet as of March 31, 2017 and Consolidated Statement of Operations for the three-month period ended June 30, 2016 have been revised as follows:

	March 31, 2017
BALANCE SHEETS (RECAST)	As previously reported			Revision			As revised

ASSETS

Cash and cash equivalents	$	51		$	21,780		$	21,831
Restricted cash		8,534			4,085			12,619
Trading securities		-			81,575			81,575
Available-for-sale securities, at fair value		-			2			2
Brokerage and other receivables		-			481			481
Other assets		-			691			691
Deferred tax assets		-			1,026			1,026
Fixed assets		2			1,039			1,041
Goodwill		-			981			981
Loans issued		-			65			65

TOTAL ASSETS	$	8,587		$	111,725		$	120,312

LIABILITIES AND STOCKHOLDERS’ EQUITY

Derivative liability	$	-		$	495		$	495
Debt securities issued		-			3,459			3,459
Customer liabilities		-			7,543			7,543
Current income tax liability		-			149			149
Trade payables		206			29			235
Deferred distribution payments		8,534			-			8,534
Securities repurchase agreement obligation		-			56,289			56,289
Other liabilities		-			372			372
TOTAL LIABILITIES		8,740			68,336			77,076

STOCKHOLDERS’ EQUITY

Common stock		280			210			490
Preferred stock		-			-			-
Additional paid in capital		776			32,009			32,785
Retained earnings		(1,209	)		18,069			16,860
Accumulated other comprehensive income		-			(6,899	)		(6,899	)
TOTAL EQUITY		(153	)		43,389			43,236

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,587		$	111,725		$	120,312

	For the three months ended June 30, 2016
STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (RECAST)	As previously reported			Revision			As reported

*Revenue:*
Fee and commission income	$	-		$	495		$	495
Interest income		1			736			737
Net loss on trading securities		-			(281	)		(281	)
Net gain on foreign exchange operations		-			90			90

TOTAL REVENUE		1			1,040			1,041

*Expense:*
Interest expense		-			570			570
Fee and commission expense		-			64			64
Operating expense		251			1,806			2,057
Other expense, net		-			48			48

TOTAL EXPENSE		251			2,488			2,739

NET LOSS BEFORE INCOME TAX		(250	)		(1,448	)		(1,698	)

Income tax benefit		-			463			463

NET INCOME/(LOSS) BEFORE NONCONTROLING INTERESTS	$	(250	)	$	(985	)	$	(1,235	)

Less: Net income attributable to non-controlling interest in subsidiary		-			7			7
NET INCOME/ (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS		(250	)		(992	)		(1,242	)

OTHER COMPREHENSIVE INCOME/ (LOSS)
Change in unrealized gain on investments available-for-sale, net of tax effect	$	-		$	3		$	3
Foreign currency translation adjustments, net of tax		-			1,038			1,038

COMPREHENSIVE INCOME/ (LOSS) BEFORE NONCONTOLING INTEREST	$	(250	)	$	49		$	(201	)

Less: Comprehensive income attributable to non-controlling interest in subsidiary		-			7			7

COMPREHENSIVE INCOME/ (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS		(250	)		42			(208	)