SEGMENT REPORTING

9 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

During the fourth quarter of 2022 fiscal year, the Company's CODM restructured the way he views the Company's business from a single operating segment to five geographic regional segments including Central Asia, Europe, United States, Russia and Middle East/Caucasus. The Company has classified the Russia segment as discontinued operations for the periods presented because the assets and liabilities to be disposed of in connection with this transaction met the held for sale criteria as of December 31, 2022. The Company's CODM do not review inter-segment revenues as part of segment reporting.

The following tables summarize the Company's Statement of Operations and Statements of Other Comprehensive Income by its geographic segments. Intercompany balances were eliminated for separate disclosure:

	Three months ended December 31, 2022
STATEMENTS OF OPERATIONS	Central Asia		Europe		U.S.		Middle East/Caucasus		Total
Fee and commission income (1)	$	31,248	$	48,486	$	1,149	$	—	$	80,883
Net gain/(loss) on trading securities	28,080		819		(3,443)		—		25,456
Interest income	66,324		11,417		2,500		14		80,255
Insurance underwriting income	28,557		—		—		—		28,557
Net gain/(loss) on foreign exchange operations	20,402		313		152		(1)		20,866
Net loss on derivative	(21,469)		—		—		—		(21,469)
TOTAL REVENUE, NET	153,142		61,035		358		13		214,548
Fee and commission expense	10,110		7,933		255		16		18,314
Interest expense	43,880		4,590		3,567		—		52,037
Insurance claims incurred, net of reinsurance	17,418		1		—		—		17,419
Operating expense (2)	28,494		12,824		8,655		635		50,608
Provision for impairment losses	12,767		11,363		10		—		24,140
Other expense/(income), net	647		(74)		—		(3)		570
TOTAL EXPENSE	113,316		36,637		12,487		648		163,088
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	39,826	$	24,398	$	(12,129)	$	(635)	$	51,460
Income tax expense	(95)		(4,557)		(398)		(19)		(5,069)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	39,731	$	19,841	$	(12,527)	$	(654)	$	46,391

	Nine months ended December 31, 2022
STATEMENTS OF OPERATIONS	Central Asia		Europe		U.S.		Middle East/Caucasus		Total
Fee and commission income (1)	$	56,715	$	193,439	$	3,332	$	—	253,486
Net gain/(loss) on trading securities	65,497		(21,815)		(4,788)		—		38,894
Interest income	154,300		24,014		9,489		14		187,817
Insurance underwriting income	78,998		—		—		—		78,998
Net gain/(loss) on foreign exchange operations	32,270		(1,517)		(747)		8		30,014
Net loss on derivative	(22,523)		—		—		—		(22,523)
TOTAL REVENUE, NET	365,257		194,121		7,286		22		566,686
Fee and commission expense	32,638		26,834		551		45		60,068
Interest expense	110,410		10,250		12,311		—		132,971
Insurance claims incurred, net of reinsurance	51,585		1		—		—		51,586
Operating expense	70,975		34,923		19,015		1,454		126,367
Provision for impairment losses/(recoveries)	18,930		11,362		2		—		30,294
Other expense/(income), net	116		31		(8)		(60)		79
TOTAL EXPENSE	284,654		83,401		31,871		1,439		401,365
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	80,603	$	110,720	$	(24,585)	$	(1,417)	165,321
Income tax expense	(691)		(18,403)		(7,475)		2		(26,567)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	79,912	$	92,317	$	(32,060)	$	(1,415)	138,754

	Three months ended December 31, 2021 (Restated)
STATEMENTS OF OPERATIONS	Central Asia		Europe		U.S.		Middle East/Caucasus		Total
Fee and commission income	$	6,990	$	83,162	$	1,256	$	—	$	91,408
Net gain on trading securities	7,081		481		101		—		7,663
Interest income	28,703		4,940		14		—		33,657
Insurance underwriting income	21,394		—		—		—		21,394
Net gain/(loss) on foreign exchange operations	2,002		(437)		(209)		5		1,361
Net loss on derivative	(314)		—		—		—		(314)
TOTAL REVENUE, NET	65,856		88,146		1,162		5		155,169
Fee and commission expense	6,523		18,106		153		—		24,782
Interest expense	17,553		3,919		418		—		21,890
Insurance claims incurred, net of reinsurance	16,286		—		—		—		16,286
Operating expense	15,247		10,517		5,903		(86)		31,581
Provision for impairment (recoveries)/losses	(365)		—		32		—		(333)
Other expense/(income), net	990		(13)				2		979
TOTAL EXPENSE	56,234		32,529		6,506		(84)		95,185
INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	9,622	$	55,617	$	(5,344)	$	89	59,984
Income tax benefit/(expense)	1,256		(7,176)		4,114		—		(1,806)
INCOME FROM CONTINUING OPERATIONS	$	10,878	$	48,441	$	(1,230)	$	89	$	58,178

	Nine months ended December 31, 2021 (Restated)
STATEMENTS OF OPERATIONS	Central Asia		Europe		U.S.		Middle East/Caucasus		Total
Fee and commission income	$	18,092	$	241,066	$	3,391	$	—	$	262,549
Net gain/(loss) on trading securities	18,779		179,473		(305)		—		197,947
Interest income	74,425		8,015		74		—		82,514
Income from insurance activity	51,491		—		—		—		51,491
Net gain/(loss) on foreign exchange operations	4,775		(497)		(207)		5		4,076
Net loss on derivative	(1,028)		—		—		—		(1,028)
TOTAL REVENUE, NET	166,534		428,057		2,953		5		597,549
Fee and commission expense	11,177		56,946		503		—		68,626
Interest expense	44,311		7,422		1,119		—		52,852
Insurance claims incurred, net of reinsurance	41,096		—		—		—		41,096
Operating expense	38,327		20,089		14,275		81		72,772
Provision for impairment losses	868		11		32		—		911
Other expense/(income), net	2,449		(21)		—		(2)		2,426
TOTAL EXPENSE	138,228		84,447		15,929		79		238,683
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	28,306	$	343,610	$	(12,976)	$	(74)	$	358,866
Income tax benefit/(expense)	1,278		(21,190)		(19,114)		—		(39,026)
NET INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	29,584	$	322,420	$	(32,090)	$	(74)	$	319,840

(1) All trading of U.S. and European exchange traded and OTC securities by all of the Company's securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at Freedom EU.

(2) Operating expense includes significant noncash items stock based compensation expenses. The following table summarizes the Company's stock based compensation by its geographic segments:

	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021*		2022		2021*
Central Asia	$	2,077	$	1,384	$	4,215	$	3,414
U.S.	717		691		1,869		1,737
Europe	145		196		436		485
Total stock based compensation	$	2,939	$	2,271	$	6,520	$	5,636

The following tables summarize the Company's total asset and total liabilities by its geographic segments. Intercompany balances were eliminated for separate disclosure:

	December 31, 2022
	Central Asia		Europe		U.S.		Russia (Discontinued operations)		Middle East/Caucasus		Total
Total assets	$	3,770,032	$	519,760	$	114,609	$	961,566	$	2,167	$	5,368,134
Total liabilities	3,071,804		607,536		74,618		931,484		361		4,685,803
Net assets	$	698,228	$	(87,776)	$	39,991	$	30,082	$	1,806	$	682,331

	March 31, 2022 (Recasted)
	Central Asia		Europe		U.S.		Russia (Discontinued operations)		Middle East/Caucasus		Total
Total assets	$	1,423,529	$	805,768	$	172,679	$	825,419	$	355	$	3,227,750
Total liabilities	1,203,473		489,883		175,136		812,478		172		2,681,142
Net assets	$	220,056	$	315,885	$	(2,457)	$	12,941	$	183	$	546,608

Central Asia Segment

The Central Asia segment comprises the Kazakhstan headquarters and operations in Kazakhstan (including in the AIFC), Kyrgyzstan, Uzbekistan, Ukraine and Turkey.

Recently acquired insurance companies, Freedom Insurance, Freedom Life, and London Almaty, are included within Central Asia segment.

Europe Segment

The Cyprus securities brokerage firm, Freedom EU, oversees the Europe segment operations (consisting of operations in Cyprus, the UK, Germany, Spain, Greece, and France).

U.S. Segment

The U.S. segment currently consists of FRHC and the Company's PrimeEx subsidiary.

Middle East/Caucasus Segment

As of December 31, 2022, the Middle East/Caucasus segment consisted of four offices, in Azerbaijan, Armenia and the United Arab Emirates, that provide brokerage and investment education services. The Company entered into the Caucasus market during fiscal year 2022 by establishing subsidiaries in Azerbaijan and Armenia, and in April 2022 it entered into the Middle East market by establishing a subsidiary in the United Arab Emirates.

Russia Segment

The Russia segment, that was classified as assets and liabilities held for sale, includes the securities brokerage subsidiary Freedom RU and its subsidiaries Freedom Bank RU and Freedom Auto.