SEGMENT REPORTING

9 Months Ended

Dec. 31, 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 December 31, 2023
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		United States		Middle East/Caucasus		Total
Fee and commission income (1)	$	82,554	$	32,585	$	4,166	$	854	$	120,159
Net (loss)/ gain on trading securities	(5,778)		(85)		769		5		(5,089)
Interest income	207,168		7,571		586		11,120		226,445
Insurance underwriting income	79,017		—		—		—		79,017
Net gain/(loss) on foreign exchange operations	39,031		(367)		76		85		38,825
Net loss on derivative	(42,568)		—		—		—		(42,568)
Other income/(expense)	1,910		(200)		(11)		146		1,845
TOTAL REVENUE, NET	361,334		39,504		5,586		12,210		418,634
Fee and commission expense	37,393		5,040		329		56		42,818
Interest expense	127,861		3,168		138		56		131,223
Insurance claims incurred, net of reinsurance	40,989		—		—		—		40,989
Payroll and bonuses	31,101		9,154		3,365		1,463		45,083
Professional services	614		1,995		3,521		87		6,217
Stock compensation expense	701		82		256		—		1,039
Advertising expense	4,551		5,671		392		452		11,066
General and administrative expense	22,765		2,743		5,290		1,308		32,106
(Recovery)/allowance for expected credit losses	(7,381)		3,893		(38)		—		(3,526)
TOTAL EXPENSE	258,594		31,746		13,253		3,422		307,015
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	102,740	$	7,758	$	(7,667)	$	8,788	$	111,619
Income tax expense	(244)		(8,890)		(6,262)		(148)		(15,544)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	102,496	$	(1,132)	$	(13,929)	$	8,640	$	96,075

	Nine months ended December 31, 2023
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		United States		Middle East/Caucasus		Total
Fee and commission income (1)	240,165		75,999		12,434		1,967		$	330,565
Net gain on trading securities	76,894		350		68		186		77,498
Interest income	543,214		24,036		2,437		19,170		588,857
Insurance underwriting income	181,882		—		—		—		181,882
Net gain/(loss) on foreign exchange operations	54,962		(60)		(696)		224		54,430
Net (loss)/gain on derivative	(72,365)		570		—		—		(71,795)
Other income	6,558		1,505		804		121		8,988
TOTAL REVENUE, NET	1,031,310		102,400		15,047		21,668		1,170,425
Fee and commission expense	87,568		14,523		877		148		103,116
Interest expense	346,393		17,326		1,857		74		365,650
Insurance claims incurred, net of reinsurance	96,491		—		—		—		96,491
Payroll and bonuses	85,489		18,253		10,404		2,565		116,711
Professional services	1,764		6,331		16,488		210		24,793
Stock compensation expense	2,230		255		818		—		3,303
Advertising expense	12,171		14,098		666		870		27,805
General and administrative expense	60,831		11,829		11,617		1,934		86,211
Allowance/(recovery) for expected credit losses	10,456		5,040		(34)		—		15,462
TOTAL EXPENSE	703,393		87,655		42,693		5,801		839,542
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	327,917		14,745		(27,646)		15,867		330,883
Income tax expense	(432)		(18,614)		(31,665)		(697)		(51,408)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	327,485	$	(3,869)	$	(59,311)	$	15,170	$	279,475

	Three months ended December 31, 2022
STATEMENTS OF OPERATIONS	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		United States		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)
Other (expense)/income	(647)		74		—		3		(570)
TOTAL REVENUE, NET	152,495		61,109		358		16		213,978
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
Payroll and bonuses	13,937		5,795		1,563		315		21,610
Professional services	859		2,483		2,385		174		5,901
Stock compensation expense	—		—		2,939		—		2,939
Advertising expense	2,255		1,356		110		9		3,730
General and administrative expense	11,443		3,190		1,658		137		16,428
Allowance for expected credit losses	12,767		11,363		10		—		24,140
TOTAL EXPENSE	112,669		36,711		12,487		651		162,518
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 and Eastern Europe		Europe, excluding Eastern Europe		United States		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)
Other (expense)/income	(116)		(31)		8		60		(79)
TOTAL REVENUE, NET	365,141		194,090		7,294		82		566,607
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
Payroll and bonuses	37,967		11,357		5,146		782		55,252
Professional services	2,337		5,236		6,329		272		14,174
Stock compensation expense	2,137		291		4,091		—		6,519
Advertising expense	5,654		3,697		119		9		9,479
General and administrative expense	22,880		14,342		3,330		391		40,943
Allowance for expected credit losses	18,930		11,362		2				30,294
TOTAL EXPENSE	284,538		83,370		31,879		1,499		401,286
INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS	$	80,603	$	110,720	$	(24,585)	$	(1,417)	$	165,321
Income tax (expense)/benefit	(691)		(18,403)		(7,475)		2		(26,567)
INCOME/(LOSS) FROM CONTINUING OPERATIONS	$	79,912	$	92,317	$	(32,060)	$	(1,415)	$	138,754

(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:

	December 31, 2023
	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		United States		Middle East/Caucasus		Total
Total assets	$	6,419,659	$	422,348	$	87,842	$	519,194	$	7,449,043
Total liabilities	5,795,495		561,395		30,223		22,680		6,409,793
Net assets	$	624,164	$	(139,047)	$	57,619	$	496,514	$	1,039,250

	March 31, 2023
	Central Asia and Eastern Europe		Europe, excluding Eastern Europe		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. The Group also has several businesses in Kazakhstan which complement its core financial services businesses, including recently established telecommunications and media businesses that are in a developmental stage.

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 December 31, 2023, the Group has provided its brokerage clients with margin lending in Middle East/Caucasus segment in the total amount of $498,897. 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.