SEGMENT REPORTING

6 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company historically organized its operations in a single operating segment. Following the divestiture of the Company's Russian subsidiaries and the related corporate restructuring, the Company elected to reorganize its operations geographically into regional segments. The Company currently organizes its operations into the following four regional segments: Central Asia and Eastern Europe, Europe Excluding Eastern Europe, the United States and Middle East/Caucasus. These operating segments are based on how the Company's CODM makes decisions about allocating resources and assessing performance.

The following tables summarize the Company's Statement of Operations by its geographic segments. There are no revenues from transactions between the segments and intercompany balances have been eliminated for separate disclosure:

	Three months ended September 30, 2023
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		The United States		Middle East/Caucasus		Total
Fee and commission income (1)	$	84,227	$	24,247	$	2,116	$	1,113	$	111,703
Net gain/(loss) on trading securities	51,078		221		(528)		—		50,771
Interest income	194,009		10,551		463		8,040		213,063
Insurance underwriting income	57,976		—		—		—		57,976
Net (loss)/gain on foreign exchange operations	(3,990)		626		(410)		78		(3,696)
Net gain on derivative	981		397		—		—		1,378
Other income/(expense)	2,918		1,487		(23)		4		4,386
TOTAL REVENUE, NET	387,199		37,529		1,618		9,235		435,581
Fee and commission expense	26,377		4,910		284		43		31,614
Interest expense	131,868		7,346		149		18		139,381
Insurance claims incurred, net of reinsurance	33,988		—		—		—		33,988
Payroll and bonuses	30,221		4,345		4,746		686		39,998
Professional services	588		1,597		9,687		79		11,951
Stock compensation expense	700		82		249		—		1,031
Advertising expense	3,888		4,402		179		170		8,639
General and administrative expense	22,039		5,057		2,213		321		29,630
Allowance for credit losses	4,067		594		1		—		4,662
TOTAL EXPENSE	253,736		28,333		17,508		1,317		300,894
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	133,463	$	9,196	$	(15,890)	$	7,918	$	134,687
Income tax expense	(161)		(7,295)		(11,204)		(548)		(19,208)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	133,302	$	1,901	$	(27,094)	$	7,370	$	115,479

	Six months ended September 30, 2023
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe	Europe, excluding Eastern Europe	The United States	Middle East/Caucasus	Total
Fee and commission income (1)	157,612	43,413	8,268	1,113	$	210,406
Net gain/(loss) on trading securities	82,672	435	(701)	181	82,587
Interest income	336,046	16,465	1,851	8,050	362,412
Insurance underwriting income	102,865	—	—	—	102,865
Net gain/(loss) on foreign exchange operations	15,931	307	(772)	139	15,605
Net (loss)/gain on derivative	(29,797)	570	—	—	(29,227)
Other income/(expense)	4,648	1,705	815	(25)	7,143
TOTAL REVENUE, NET	669,977	62,895	9,461	9,458	751,791
Fee and commission expense	50,175	9,483	548	92	60,298
Interest expense	218,532	14,158	1,719	18	234,427
Insurance claims incurred, net of reinsurance	55,502	—	—	—	55,502
Payroll and bonuses	54,388	9,099	7,039	1,102	71,628
Professional services	1,150	4,336	12,967	123	18,576
Stock compensation expense	1,529	173	562	—	2,264
Advertising expense	7,620	8,427	274	418	16,739
General and administrative expense	38,066	9,086	6,327	626	54,105
Allowance for credit losses	17,837	1,147	4	—	18,988
TOTAL EXPENSE	444,799	55,909	29,440	2,379	532,527
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	225,178	6,986	(19,979)	7,079	219,264
Income tax expense	(188)	(9,724)	(25,403)	(549)	(35,864)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	224,990	(2,738)	(45,382)	6,530	183,400

	Three months ended September 30, 2022
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		The United States		Middle East/Caucasus		Total
Fee and commission income (1)	$	19,067	$	63,040	$	1,050	$	—	$	83,157
Net gain/(loss) on trading securities	15,828		(7,210)		387		—		9,005
Interest income	46,275		10,177		2,547		—		58,999
Insurance underwriting income	26,200		—		—		—		26,200
Net gain/(loss) on foreign exchange operations	7,601		(2,400)		(665)		19		4,555
Net loss on derivative	(2,320)		—		—		—		(2,320)
Other income/(expense)	622		(101)		3		—		524
TOTAL REVENUE, NET	113,273		63,506		3,322		19		180,120
Fee and commission expense	11,812		6,474		144		9		18,439
Interest expense	34,562		2,964		3,337		—		40,863
Insurance claims incurred, net of reinsurance	17,475		—		—		—		17,475
Payroll and bonuses	12,301		2,830		1,838		260		17,229
Professional services	757		1,481		1,738		42		4,018
Stock compensation expense	1,035		135		533		—		1,703
Advertising expense	1,250		660		2		—		1,912
General and administrative expense	6,372		5,428		982		116		12,898
Allowance for credit losses/(recoveries)	3,732		(1)		(5)		—		3,726
TOTAL EXPENSE	89,296		19,971		8,569		427		118,263
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	23,977	$	43,535	$	(5,247)	$	(408)	$	61,857
Income tax (expense)/benefit	(534)		(6,623)		(5,472)		10		(12,619)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	23,443	$	36,912	$	(10,719)	$	(398)	$	49,238

	Six months ended September 30, 2022
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		The United States		Middle East/Caucasus		Total
Fee and commission income (1)	28,259		142,160		2,184		—		$	172,603
Net gain/(loss) on trading securities	37,417		(22,634)		(1,344)		—		13,439
Interest income	85,185		15,388		6,989		—		107,562
Insurance underwriting income	50,440		—		—		—		50,440
Net gain/(loss) on foreign exchange operations	11,869		(1,830)		(899)		8		9,148
Net gain on derivative	(1,054)		—		—		—		(1,054)
Other (expense)/income	530		(97)		8		50		491
TOTAL REVENUE, NET	212,646		132,987		6,938		58		352,629
Fee and commission expense	22,527		18,901		297		29		41,754
Interest expense	66,530		5,660		8,744		—		80,934
Insurance claims incurred, net of reinsurance	34,167		—		—		—		34,167
Payroll and bonuses	24,031		5,562		3,583		466		33,642
Professional services	1,478		2,753		3,944		98		8,273
Stock compensation expense	2,136		291		1,152		—		3,579
Advertising expense	3,399		2,341		9		—		5,749
General and administrative expense	11,438		11,152		1,672		254		24,516
Allowance for credit losses/(recoveries)	6,164		(2)		(8)		—		6,154
TOTAL EXPENSE	171,870		46,658		19,393		847		238,768
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	40,776	$	86,329	$	(12,455)	$	(789)	$	113,861
Income tax (expense)/benefit	(596)		(13,846)		(7,077)		21		(21,498)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	40,180		72,483		(19,532)		(768)		92,363

(1) All trading of U.S. and European exchange traded and OTC securities by all Freedom 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 subsidiary received the initial order from external client.

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

	September 30, 2023
	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		The United States		Middle East/Caucasus		Total
Total assets	$	5,878,010	$	733,404	$	86,732	$	440,159	$	7,138,305
Total liabilities	5,690,420		491,016		31,298		11,140		6,223,874
Net assets	$	187,590	$	242,388	$	55,434	$	429,019	$	914,431

	March 31, 2023
	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		The United States		Middle East/Caucasus		Total
Total assets	$	4,303,126	$	677,425	$	101,365	$	2,642	$	5,084,558
Total liabilities	3,868,326		384,921		60,198		377		4,313,822
Net assets	$	434,800	$	292,504	$	41,167	$	2,265	$	770,736

Central Asia and Eastern Europe Segment

Operations in Kazakhstan, Kyrgyzstan, Uzbekistan, along with the Company's headquarters in Kazakhstan, form the Central Asia and Eastern Europe segment. Within this segment, the Group conducts business under different securities licenses as required by the respective jurisdictions in the Central Asia and Eastern Europe region.

Group companies in the Central Asia and Eastern Europe segment provide comprehensive financial solutions, including lending such as digital auto loans and digital mortgage loans, payments, asset management products, bank guarantees, on demand and time deposits, various types of insurance coverage to meet the needs of the Group's customers and small businesses. The Group's insurance offerings include life insurance, obligatory insurance, tourist medical health insurance and auto insurance. These insurance products are designed to offer comprehensive coverage and tailored solutions to protect individuals, property, auto and businesses in the event of unforeseen events or risks.

Europe Excluding Eastern Europe Segment    

Operations in Cyprus, United Kingdom and Germany. Companies in the Europe Excluding Eastern Europe segment offer a broad suite of market-making, prime brokerage, lending, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities.

Companies in this segment cater to clients from the European Union by offering comprehensive solutions to support their investment needs. The Group's services in this segment encompass direct access to the world's largest stock exchanges, providing its clients with a gateway to global investment opportunities. Additionally, the Group's offerings in this segment include professional securities analytics, empowering clients with valuable insights and market intelligence to make informed investment decisions. To ensure a seamless experience, it provides user-friendly trading applications that offer convenience and flexibility.

United States Segment

Companies in the United States segment offer a full array of investment banking and capital markets advisory services, including initial public offerings, mergers, and acquisitions, debt and equity financing, corporate banking, trading, hedging, and research, equity research, delivering in-depth analysis, insights into individual stocks and sectors. It provides macro-economic strategy research to help clients navigate the broader economic landscape and make informed investment decisions.

To ensure clients are well-informed, companies in this segment offer a daily morning note that covers key market updates, trends, and potential opportunities. It also provides technical research, focusing on chart patterns and technical indicators to assist clients in identifying potential entry and exit points in the market.

In addition, companies in the United States segment conduct research in specific sectors such as energy and consumer, offering valuable insights into industry trends and company analysis. It facilitates corporate access research, enabling clients to gain access to top management and industry experts for a deeper understanding of specific companies or sectors.

Middle East/Caucasus Segment

Companies in the Middle East/Caucasus segment offer securities broker-dealer services, financials educational center services, financial intermediary center services and financial consulting services. The segment is currently in the developmental stage and does not generate profit at the moment. As a developing segment, the focus is on establishing a strong presence, building strategic relationships, and expanding client base in the region.

As of September 30, 2023, the Group has provided its brokerage clients with margin lending in Middle East/Caucasus segment in the total amount of $433,368. This margin lending balance was financed through the Europe, excluding Eastern Europe segment of the Group, and upon collection of this receivable, funds will be transferred to the European segment.