Quarterly report pursuant to Section 13 or 15(d)

3. Revision of Financial Statement

v3.8.0.1
3. Revision of Financial Statement
 6 Months Ended
Sep. 30, 2017
Revision Of Financial Statement  
Revision of Financial Statement

When preparing the condensed consolidated financial statements for the three and six months ended September 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 Condensed Consolidated Statement of Operations and Statements of Other Comprehensive income for the three-month and six-month period ended September 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                        
                         
Preferred stock     -       -       -  
Common stock     280       (269 )     11  
Additional paid in capital     776       32,488       33,264  
Retained earnings     (1,209 )     18,069       16,860  
Accumulated other comprehensive income     -       (6,899 )     (6,899 )
TOTAL STOCKHOLDERS’ EQUITY     (153 )     43,389       43,236  
                         
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 8,587     $ 111,725     $ 120,312  

 

    For the three months ended September 30, 2016  
STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (RECAST)   As previously reported     Revision     As reported  
                   
Revenue:                  
Fee and commission income   $ -     $ 898     $ 898  
Net gain on trading securities     -       3,700       3,700  
Interest income     1       248       249  
Net gain on sale of fixed assets     -       28       28  
Net gain on foreign exchange operations     -       344       344  
                         
TOTAL REVENUE     1       5,218       5,219  
                         
Expense:                        
Interest expense     -       782       782  
Fee and commission expense     -       70       70  
Operating expense     86       1,948       2,034  
Other expense, net     -       79       79  
                         
TOTAL EXPENSE     86       2,879       2,965  
                         
NET (LOSS)/INCOME BEFORE INCOME TAX     (85 )     2,339       2,254  
                         
Income tax benefit     -       84       84  
                         
NET (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (85 )   $ 2,423     $ 2,338  
                         
OTHER COMPREHENSIVE INCOME                        
Change in unrealized gain on investments available-for-sale, net of tax effect     -       3       3  
Foreign currency translation adjustments, net of tax     -       434       434  
                         
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (85 )   $ 2,860     $ 2,775  

 

    For the six months ended September 30, 2016  
STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (RECAST)   As previously reported     Revision     As reported  
                   
Revenue:                  
Fee and commission income   $ -     $ 1,393     $ 1,393  
Net gain on trading securities     -       3,419       3,419  
Interest income     2       984       986  
Net gain on sale of fixed assets     -       28       28  
Net gain on foreign exchange operations     -       434       434  
                         
TOTAL REVENUE     2       6,258       6,260  
                         
Expense:                        
Interest expense     -       1,352       1,352  
Fee and commission expense     -       134       134  
Operating expense     338       3,753       4,091  
Other expense, net     -       127       127  
                         
TOTAL EXPENSE     338       5,366       5,704  
                         
NET (LOSS)/INCOME BEFORE INCOME TAX     (336 )     892       556  
                         
Income tax benefit     -       547       547  
                         
NET (LOSS)/INCOME BEFORE NONCONTROLLING INTERESTS   $ (336 )   $ 1,439     $ 1,103  
                         
Less: Net income attributable to noncontrolling interest in subsidiary     -       7       7  
NET (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS     (336 )     1,432       1,096  
                         
OTHER COMPREHENSIVE INCOME                        
Change in unrealized gain on investments available-for-sale, net of tax effect     -       6       6  
Foreign currency translation adjustments, net of tax     -       1,481       1,481  
                         
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (336 )   $ 2,919     $ 2,583