RECAST (Tables)

12 Months Ended

Mar. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Revision of prior period statements

The previously issued Consolidated Balance Sheet as of March 31, 2022 and March 31, 2021, and Consolidated Statement of Operations and Statements of Other Comprehensive Income for the year ended March 31, 2022, March 31, 2021 and March 31, 2020, have been revised as follows:

	As of March 31, 2022
	As previously reported		Recast discontinued operations		As recast
ASSETS
Cash and cash equivalents	$	625,547	$	(400,884)	$	224,663
Restricted cash	553,680		(5,730)		547,950
Trading securities	1,203,479		(122,497)		1,080,982
Available-for-sale securities, at fair value	1		—		1
Brokerage and other receivables, net	357,567		(210,087)		147,480
Loans issued	94,797		(2,394)		92,403
Deferred tax assets	12,018		(11,161)		857
Fixed assets, net	21,365		(3,978)		17,387
Intangible assets, net	5,791		(2,279)		3,512
Goodwill	5,388		—		5,388
Right-of-use asset	15,669		(8,922)		6,747
Other assets, net	25,707		(7,213)		18,494
Assets held for sale	—		825,419		825,419
TOTAL ASSETS	$	2,921,009	$	50,274	$	2,971,283
LIABILITIES AND SHAREHOLDERS' EQUITY
Securities repurchase agreement obligations	$	775,178	$	(32,468)	$	742,710
Customer liabilities	1,417,937		(651,310)		766,627
Trade payables	45,229		(147)		45,082
Current income tax liability	14,556		—		14,556
Securities sold, not yet purchased - at fair value	14,103		(238)		13,865
Loans received	3,538		—		3,538
Debt securities issued	99,027		(64,637)		34,390
Lease liability	15,315		(8,530)		6,785
Deferred income tax liabilities	—		—		—
Deferred distribution payments	8,534		—		8,534
Other liabilities	19,917		(4,874)		15,043
Liabilities held for sale	—		812,478		812,478
TOTAL LIABILITIES	$	2,413,334	$	50,274	$	2,463,608
Commitments and Contingent Liabilities (Note 30)	—		—		—
SHAREHOLDERS' EQUITY
Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding	—		—		—
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 and 58,443,212 shares issued and outstanding as of March 31, 2022 and 2021, respectively	59		—		59
Additional paid in capital	141,340		—		141,340
Retained earnings	426,563		—		426,563
Accumulated other comprehensive loss	(53,291)		—		(53,291)
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY	$	514,671	$	—	$	514,671
Non-controlling interest	(6,996)		—		(6,996)
TOTAL SHAREHOLDERS' EQUITY	$	507,675	$	—	$	507,675
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,921,009	$	50,274	$	2,971,283

	As of March 31, 2021
	As previously reported		Recast discontinued operations		As recast
ASSETS
Cash and cash equivalents	$	698,828	$	(530,811)	$	168,017
Restricted cash	437,958		52,733		490,691
Trading securities	736,188		(148,642)		587,546
Available-for-sale securities, at fair value	1		—		1
Brokerage and other receivables, net	64,801		(15,283)		49,518
Loans issued	11,667		(2,041)		9,626
Fixed assets, net	18,385		(2,814)		15,571
Intangible assets, net	9,785		(5,883)		3,902
Goodwill	7,868		(731)		7,137
Right-of-use asset	13,262		(8,636)		4,626
Other assets	19,902		(4,263)		15,639
Assets held for sale	—		748,048		748,048
TOTAL ASSETS	$	2,018,645	$	81,677	$	2,100,322
LIABILITIES AND SHAREHOLDERS’ EQUITY
Securities repurchase agreement obligations	$	426,715	$	(51,997)	$	374,718
Customer liabilities	1,163,697		(491,872)		671,825
Trade payables	22,304		(302)		22,002
Current income tax liability	14,843		(644)		14,199
Securities sold, not yet purchased – at fair value	8,592		(23)		8,569
Loans received	3,373		—		3,373
Debt securities issued	68,443		(37,094)		31,349
Lease liability	13,249		(8,438)		4,811
Deferred income tax liabilities	4,385		(378)		4,007
Deferred distribution payments	8,534		—		8,534
Other liabilities	8,839		(4,143)		4,696
Liabilities held for sale	—		676,568		676,568
TOTAL LIABILITIES	$	1,742,974	$	81,677	$	1,824,651
Commitments and Contingent Liabilities (Note 30)	—		—		—
SHAREHOLDERS’ EQUITY
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding	—		—		—
Common stock - $0.001 par value; 500,000,000 shares authorized;	58		—		58
Additional paid in capital	104,672		—		104,672
Retained earnings	208,628		—		208,628
Accumulated other comprehensive loss	(36,046)		—		(36,046)
TOTAL FRHC SHAREHOLDERS’ EQUITY	$	277,312	$	—	$	277,312
Non-controlling interest	(1,641)		—		(1,641)
TOTAL SHAREHOLDERS’ EQUITY	$	275,671	$	—	$	275,671
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,018,645	$	81,677	$	2,100,322

	Year ended March 31, 2022
	As previously reported*		Recast discontinued operations		As recast
Revenue:
Fee and commission income	$	417,774	$	(82,330)	$	335,444
Net gain on trading securities	77,671		78,674		156,345
Interest income	105,965		(15,812)		90,153
Net loss on foreign exchange operations	(37,693)		39,672		1,979
Net gain on derivative	946		—		946
TOTAL REVENUE, NET	564,663		20,204		584,867
Expense:
Fee and commission expense	81,231		(7,988)		73,243
Interest expense	75,899		(10,450)		65,449
Operating expense	161,593		(73,029)		88,564
Provision for impairment losses	2,985		(779)		2,206
Other expense, net	6,061		(4,749)		1,312
TOTAL EXPENSE	327,769		(96,995)		230,774
INCOME BEFORE INCOME TAX	236,894		117,199		354,093
Income tax expense	(25,525)		(13,004)		(38,529)
INCOME FROM CONTINUING OPERATIONS	211,369		104,195		315,564
Income/(loss) before income tax (expense)/benefit of discontinued operations	—		(117,199)		(117,199)
Income tax (expense)/benefit of discontinued operations	—		13,004		13,004
Income/(loss) from discontinued operations	—		(104,195)		(104,195)
NET INCOME	211,369		—		211,369
Less: Net loss attributable to non-controlling interest in subsidiary	(6,566)		—		(6,566)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	217,935	$	—	$	217,935
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect	—		—		—
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect	—		—		—
Foreign currency translation adjustments, net of tax effect	(17,245)		—		(17,245)
OTHER COMPREHENSIVE INCOME/(LOSS)	(17,245)		—		(17,245)
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS	$	194,124	$	—	$	194,124
Less: Comprehensive loss attributable to non-controlling interest in subsidiary	(6,566)		—		(6,566)

COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 200,690  $ —  $ 200,690 

For the year ended March 31, 2022, the Company’s EPS as reported was 3.56 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 5.43 for both basic and diluted EPS for continuing operations, to (1.75) for both basic and diluted EPS for discontinued operations, and to 3.67 for both basic and diluted total EPS.

	Year ended March 31, 2021
	As previously reported*		Recast discontinued operations		As recast
Revenue:
Fee and commission income	$	268,776	$	(52,780)	$	215,996
Net gain on trading securities	46,186		(20,275)		25,911
Interest income	34,036		(11,221)		22,815
Net gain on foreign exchange operations	3,428		(2,285)		1,143
Net gain on derivative	125		(39)		86
TOTAL REVENUE, NET	352,551		(86,600)		265,951
Expense:
Fee and commission expense	73,100		(7,122)		65,978
Interest expense	27,366		(8,760)		18,606
Operating expense	77,434		(41,981)		35,453
Provision for impairment losses	1,561		(44)		1,517
Other expense/(income), net	68		(174)		(106)
TOTAL EXPENSE	179,529		(58,081)		121,448
INCOME BEFORE INCOME TAX	173,022		(28,519)		144,503
Income tax expense	(30,098)		6,736		(23,362)
INCOME FROM CONTINUING OPERATIONS	142,924		(21,783)		121,141
Income before income tax expense of discontinued operations	—		28,518		28,518
Income tax expense of discontinued operations	—		(6,735)		(6,735)
Income from discontinued operations	—		21,783		21,783
NET INCOME	142,924		—		142,924
Less: Net income attributable to non-controlling interest in subsidiary	631		—		631
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	142,293	$	—	$	142,293
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect	—		—		—
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect	71		—		71
Foreign currency translation adjustments, net of tax effect	1,857		—		1,857
OTHER COMPREHENSIVE INCOME	1,928		—		1,928

COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS	$	144,852	$	—	$	144,852
Less: Comprehensive income attributable to non-controlling interest in subsidiary	631		—		631
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	144,221	$	—	$	144,221

For the year ended March 31, 2021, the Company’s EPS as reported was 2.45 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 2.06 for both basic and diluted EPS for continuing operations, to 0.37 for both basic and diluted EPS for discontinued operations, and to 2.44 and 2.43 for basic and diluted total EPS, respectively.

	Year ended March 31, 2020
	As previously reported*		Recast discontinued operations		As recast
Revenue:
Fee and commission income	$	87,473	$	(26,281)	$	61,192
Net gain on trading securities	14,923		(6,591)		8,332
Interest income	17,329		(3,748)		13,581
Net gain/(loss) on foreign exchange operations	2,315		(2,027)		288
Net loss on derivative	(138)		138		—
TOTAL REVENUE, NET	121,902		(38,509)		83,393
Expense:
Fee and commission expense	21,936		(2,521)		19,415
Interest expense	12,399		(2,199)		10,200
Operating expense	59,990		(34,312)		25,678
Provision for impairment recoveries	(1,164)		(90)		(1,254)
Other expense, net	609		(346)		263
TOTAL EXPENSE	93,770		(39,468)		54,302
INCOME BEFORE INCOME TAX	28,132		959		29,091
Income tax expense	(6,002)		1,069		(4,933)
INCOME FROM CONTINUING OPERATIONS	22,130		2,028		24,158
Income/(loss) before income tax (expense)/benefit of discontinued operations	—		(958)		(958)
Income tax expense of discontinued operations	—		(1,070)		(1,070)
Income/(loss) from discontinued operations	—		(2,028)		(2,028)
NET INCOME	22,130		—		22,130
Less: Net loss attributable to non-controlling interest in subsidiary	(2,707)		—		(2,707)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	24,837	$	—	$	24,837

OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect	(71)		—		(71)
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect	—		—		—
Foreign currency translation adjustments, net of tax effect	(14,851)		—		(14,851)
OTHER COMPREHENSIVE INCOME/(LOSS)	(14,922)		—		(14,922)
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS	$	7,208	$	—	$	7,208
Less: Comprehensive loss attributable to non-controlling interest in subsidiary	(2,707)		—		(2,707)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	9,915	$	—	$	9,915

For the year ended March 31, 2020, the Company’s EPS as reported was 0.38 for both basic and diluted EPS. Due to the items noted above, the Company’s EPS has been recast to 0.46 for both basic and diluted EPS for continuing operations, to (0.03) for both basic and diluted EPS for discontinued operations, and to 0.43 for both basic and diluted total EPS.

*amounts with restatement in fee and commission income and interest income, for more information please see Note 4 - Restatement.