Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2020 | Jul. 08, 2020 | Sep. 30, 2019 | |
Document And Entity Information | |||
Entity Registrant Name | Freedom Holding Corp. | ||
Entity Central Index Key | 0000924805 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | NV | ||
Entity File Number | 001-33034 | ||
Entity Public Float | $ 184,050,740 | ||
Entity Common Stock, Shares Outstanding | 58,358,212 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 63,208 | $ 49,960 |
Restricted cash | 66,597 | 38,460 |
Trading securities | 156,544 | 167,949 |
Available-for-sale securities, at fair value | 6,438 | 2 |
Brokerage and other receivables, net | 113,687 | 73,836 |
Loans issued | 10,461 | 2,525 |
Deferred tax assets | 570 | 1,265 |
Fixed assets, net | 6,384 | 5,563 |
Intangible assets, net | 3,422 | 4,226 |
Goodwill | 2,607 | 2,936 |
Right-of-use asset | 14,543 | 0 |
Other assets, net | 9,062 | 4,189 |
TOTAL ASSETS | 453,523 | 350,911 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Debt securities issued | 72,296 | 28,538 |
Customer liabilities | 168,432 | 82,032 |
Trade payables | 8,398 | 32,695 |
Deferred distribution payments | 8,534 | 8,534 |
Securities repurchase agreement obligations | 48,204 | 73,621 |
Current income tax liability | 1,407 | 754 |
Lease liability | 14,384 | 0 |
Loans received | 0 | 4,008 |
Other liabilities | 2,831 | 3,132 |
TOTAL LIABILITIES | 324,486 | 233,314 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 500,000,000 shares authorized; 58,358,212 and 58,043,212 shares issued and outstanding as of March 31, 2020 and 2019, respectively | 58 | 58 |
Additional paid in capital | 102,890 | 99,093 |
Retained earnings | 66,335 | 41,498 |
Accumulated other comprehensive loss | (37,974) | (23,052) |
TOTAL EQUITY ATTRIBUTABLE TO THE COMPANY | 131,309 | 117,597 |
Non-controlling interest | (2,272) | 0 |
TOTAL STOCKHOLDERS' EQUITY | 129,037 | 117,597 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 453,523 | $ 350,911 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Mar. 31, 2020 | Mar. 31, 2019 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, issued shares | 58,358,212 | 58,043,212 |
Common stock, outstanding shares | 58,358,212 | 58,043,212 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Fee and commission income | $ 92,668 | $ 44,316 |
Net gain on trading securities | 14,923 | 20,162 |
Interest income | 12,134 | 13,925 |
Net loss on derivatives | (138) | 0 |
Net gain/(loss) on foreign exchange operations | 2,315 | (4,118) |
TOTAL REVENUE, NET | 121,902 | 74,285 |
Expense: | ||
Interest expense | 12,399 | 14,649 |
Fee and commission expense | 21,936 | 6,238 |
Operating expense | 59,990 | 43,134 |
Provision for impairment (recoveries)/losses | (1,164) | 1,498 |
Other expense, net | 609 | 236 |
Loss from disposal of subsidiary | 0 | 15 |
TOTAL EXPENSE | 93,770 | 65,770 |
NET INCOME BEFORE INCOME TAX | 28,132 | 8,515 |
Income tax expense | (6,002) | (1,368) |
NET INCOME | 22,130 | 7,147 |
Less: Net loss attributable to noncontrolling interest in subsidiary | (2,707) | 0 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 24,837 | 7,147 |
OTHER COMPREHENSIVE INCOME/(LOSS) | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | (71) | 0 |
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 0 | 22 |
Foreign currency translation adjustments, net of tax | (14,851) | (15,517) |
COMPREHENSIVE INCOME/(LOSS) BEFORE NONCONTROLLING INTERESTS | 7,208 | (8,348) |
Less: Comprehensive loss attributable to noncontrolling interest in subsidiary | (2,707) | 0 |
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 9,915 | $ (8,348) |
BASIC NET INCOME PER COMMON SHARE (IN US DOLLARS) | $ 0.38 | $ 0.12 |
DILUTED NET INCOME PER COMMON SHARE (IN US DOLLARS) | $ 0.38 | $ 0.12 |
Weighted average number of shares (basic) | 58,163,691 | 58,037,102 |
Weighted average number of shares (diluted) | 58,251,588 | 58,237,123 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-Controlling Interest | Total |
Beginning balance, shares at Mar. 31, 2018 | 58,033,212 | |||||
Beginning balance, amount at Mar. 31, 2018 | $ 58 | $ 100,180 | $ 34,351 | $ (7,557) | $ 0 | $ 127,032 |
Capital contributions | 225 | 225 | ||||
Exercise of options, shares | 10,000 | |||||
Exercise of options, amount | 20 | 20 | ||||
Acquisition of Nettrader | (2,590) | (2,590) | ||||
Acquisition of Asyl Invest | (2,240) | (2,240) | ||||
Stock based compensation, amount | 3,498 | 3,498 | ||||
Reclassification adjustment relating to available-for-sale investments disposed of in the period, net of tax effect | 22 | 22 | ||||
Translation difference | (15,517) | (15,517) | ||||
Net income/(loss) | 7,147 | 7,147 | ||||
Ending balance, shares at Mar. 31, 2019 | 58,043,212 | |||||
Beginning balance, amount at Mar. 31, 2019 | $ 58 | 99,093 | 41,498 | (23,052) | 0 | 117,597 |
Beginning balance, amount at Mar. 31, 2019 | 117,597 | |||||
Exercise of options, shares | 230,000 | |||||
Exercise of options, amount | $ 0 | 455 | 455 | |||
Stock based compensation, amount | 2,625 | 2,625 | ||||
Share based payment, shares | 85,000 | |||||
Share based payment, amount | $ 0 | 1,052 | 1,052 | |||
Sale of Freedom UA shares | (335) | 435 | 100 | |||
Change in unrealized gain on available-for-sale securities, net of tax effect | (71) | (71) | ||||
Translation difference | (14,851) | (14,851) | ||||
Net income/(loss) | 24,837 | (2,707) | 22,130 | |||
Ending balance, shares at Mar. 31, 2020 | 58,358,212 | |||||
Beginning balance, amount at Mar. 31, 2020 | $ 58 | $ 102,890 | $ 66,335 | $ (37,974) | $ (2,272) | $ 129,037 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net income | $ 22,130 | $ 7,147 |
Adjustments to reconcile net income (used in)/from operating activities: | ||
Depreciation and amortization | 2,658 | 2,034 |
Noncash lease expense | 6,298 | 0 |
Loss on sale of fixed assets | 201 | 30 |
Change in deferred taxes | 545 | (580) |
Stock compensation expense | 2,625 | 3,498 |
Share based payment | 1,052 | 0 |
Unrealized loss on trading securities | 7,847 | 5,373 |
Net change in accrued interest | (816) | 322 |
Allowance for receivables | (1,164) | 1,498 |
Changes in operating assets and liabilities: | ||
Trading securities | (22,870) | 8,452 |
Brokerage and other receivables, net | (47,089) | (52,174) |
Loans issued | (7,787) | 5,536 |
Other assets, net | (5,619) | (244) |
Securities sold, but not yet purchased - at fair value | 0 | (1,063) |
Customer liabilities | 115,844 | 52,745 |
Current income tax liability | 650 | 754 |
Trade payables | (23,933) | 23,201 |
Changes in lease liability | (6,474) | 0 |
Other liabilities | 173 | 1,946 |
Net cash flows from/(used in) operating activities | 44,271 | 58,475 |
Cash Flows From Investing Activities | ||
Purchase of fixed assets | (4,631) | (4,987) |
Proceeds from sale of fixed assets | 285 | 264 |
(Purchase of)/proceeds from sale of available-for-sale securities, at fair value | (6,508) | 231 |
Consideration paid for Asyl Invest | 0 | (2,240) |
Net cash flows (used in)/from investing activities | (10,854) | (6,732) |
Cash Flows From Financing Activities | ||
Repurchase of securities repurchase agreement obligations | (16,730) | (59,663) |
Proceeds from issuance of debt securities | 62,970 | 34,287 |
Repurchase of debt securities | (9,578) | (14,786) |
Capital contributions | 0 | 225 |
Exercise of options | 455 | 20 |
Proceeds from loans received | 0 | 5,609 |
Repayment of loans received | (4,008) | (8,015) |
Net cash flows (used in)/from financing activities | 33,109 | (42,323) |
Effect of changes in foreign exchange rates on cash and cash equivalents | (25,141) | (8,693) |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 41,385 | 727 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 88,420 | 87,693 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 129,805 | 88,420 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | (9,538) | (13,323) |
Income tax paid | (5,286) | (1,287) |
Supplemental non-cash disclosures: | ||
Operating lease right-of-use assets obtained in exchange for operating lease obligations on adoption of new lease standard | 16,979 | 0 |
Operating lease right-of-use asset obtained/disposed of in exchange for operating lease obligations during the period, net | 4,722 | 0 |
Cash and cash equivalents | 63,208 | 49,960 |
Restricted cash | 66,597 | 38,460 |
Total cash, cash and cash equivalents and restricted cash shown in the statement of cash flows | $ 129,805 | $ 88,420 |
Description of Business
Description of Business | 12 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Overview Freedom Holding Corp. (the “Company” or “FRHC”) is a corporation organized in the United States under the laws of the State of Nevada that through its operating subsidiaries provides financial services including retail securities brokerage, research, investment counseling, securities trading, market making, corporate investment banking and underwriting services in Eastern Europe and Central Asia. The Company is headquartered in Almaty, Kazakhstan, with supporting administrative office locations in Russia, Cyprus and the United States. The Company has retail locations in Russia, Kazakhstan, Ukraine, Uzbekistan, Kyrgyzstan and Germany. The Company’s common stock trades on the Nasdaq Capital Market. The Company owns directly, or through subsidiaries, the following companies: LLC Investment Company Freedom Finance, a Moscow, Russia-based securities broker-dealer (“Freedom RU”); LLC FFIN Bank, a Moscow, Russia-based bank (“FFIN Bank”); JSC Freedom Finance, an Almaty, Kazakhstan-based securities broker-dealer (“Freedom KZ”); Freedom Finance Global, PLC, an Astana International Financial Centre-based securities broker-dealer, (“Freedom Global”); Freedom Finance Europe Limited, a Limassol, Cyprus-based broker-dealer (“Freedom CY”), formerly known as Freedom Finance Cyprus, Limited; Freedom Finance Germany TT GmbH, a Berlin, Germany-based tied agent (“Freedom GE”); LLC Freedom Finance Uzbekistan, a Tashkent, Uzbekistan-based broker-dealer (“Freedom UZ”); and FFIN Securities, Inc., a Nevada corporation (“FFIN”). The Company also owns a 32.88% interest in LLC Freedom Finance Ukraine, a Kiev, Ukraine-based broker-dealer (“Freedom UA”). The remaining 67.12% interest in Freedom UA is owned by Askar Tashtitov, the Company’s president. The Company has entered into a series of contractual arrangements with Freedom UA and Mr. Tashtitov, including a consulting services agreement, an operating agreement and an option agreement. Because such agreements obligate the Company to guarantee the performance of all Freedom UA obligations and provide Freedom UA sufficient funding to cover all Freedom UA operating losses and net capital requirements, enable the Company to receive 90% of the net profits of Freedom UA after tax, and require the Company to provide Freedom UA the management competence, operational support, and ongoing access to the Company’s significant assets, necessary technology resources and expertise to conduct the business of Freedom UA, the Company accounts for Freedom UA as a variable interest entity (“VIE”) under the accounting standards of the Financial Accounting Standards Board (“FASB”). Accordingly, the financial statements of Freedom UA are consolidated into the financial statements of the Company. The Company’s subsidiaries are participants on the Kazakhstan Stock Exchange (KASE), Astana Stock Exchange (AIX), Moscow Exchange (MOEX), Saint-Petersburg Exchange (SPBX), the Ukrainian Exchange (UX), and the Republican Stock Exchange of Tashkent (UZSE). Freedom CY serves to provide the Company’s clients with operations support and access to the investment opportunities, relative stability, and integrity of the U.S. and European securities markets, which under the regulatory regimes of many jurisdictions where the Company operates do not currently allow investors direct access to international securities markets. Unless otherwise specifically indicated or as is otherwise contextually required, FRHC, Freedom RU, FFIN Bank, Freedom KZ, Freedom Global, Freedom CY, Freedom GE, Freedom UZ, FFIN and Freedom UA are collectively referred to herein as the “Company”. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Accounting principles The Company’s accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (US GAAP). These financial statements have been prepared on the accrual basis of accounting. Basis of presentation and principles of consolidation The Company’s consolidated financial statements present the consolidated accounts of FRHC, Freedom RU, FFIN Bank, Freedom KZ, Freedom Global, Freedom CY, Freedom GE, Freedom UZ, Freedom GE, FFIN and Freedom UA. All significant inter-company balances and transactions have been eliminated from the consolidated financial statements. Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from those estimates. Revenue and expense recognition Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Company’s revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other US GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of non-interest income are as follows: ● Commissions on brokerage services; ● Commissions on banking services (money transfers, foreign exchange operations and other); and ● Commissions on investment banking services (underwriting, market making, and bondholders’ representation services). Under Topic 606, the Company is required to recognize incentive fees when they are probable and there is not a significant chance of reversal in the future. For the brokerage commission, banking service commission and investment banking services commission contracts in place at the time of adoption, this change in policy did not result in any actual change in revenue that had already been recognized and therefore there was no transition adjustment necessary. The Company recognizes revenue when five basic criteria have been met: ● The parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations. ● The entity can identify each party’s rights regarding the goods or services to be transferred. ● The entity can identify the payment terms for the goods or services to be transferred. ● The contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract). ● It is probable that the entity will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. Derivative financial instruments In the normal course of business, the Company invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. Functional currency Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company’s functional currencies are the Russian ruble, European euro, Ukrainian hryvnia, Uzbekistani som and Kazakhstani tenge, and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive loss”. Cash and cash equivalents Cash and cash equivalents are generally comprised of certain highly liquid investments with maturities of three months or less at the date of purchase. Cash and cash equivalents include reverse repurchase agreements which are recorded at the amounts at which the securities were acquired or sold plus accrued interest. Securities reverse repurchase and repurchase agreements A reverse repurchase agreement is a transaction in which the Company purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Company sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Company retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance its inventory positions. The Company enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. Available-for-sale securities Financial assets categorized as available-for-sale (“AFS”) are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Listed shares and listed redeemable notes held by the Company that are traded in an active market are classified as AFS and are stated at fair value. The Company has investments in unlisted shares that are not traded in an active market but that are also classified as investments AFS and stated at fair value (because Company management considers that fair value can be reliably measured). Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive income/(loss), with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, dividend income and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of other Comprehensive Income/(Loss). Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. Trading securities Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss) and included in net gain/(loss) on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss) and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss). Debt securities issued Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Company purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss). Brokerage and other receivables Brokerage and other receivables comprise commissions and receivables related to the securities brokerage and banking activity of the Company. At initial recognition, brokerage and other receivables are recognized at fair value. Subsequently, brokerage and other receivables are carried at cost net of any allowance for impairment losses. Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: ● The transferred financial assets have been isolated from the Company - put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership. ● The transferee has rights to pledge or exchange financial assets. ● The Company or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Company has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of March 31, 2020 and March 31, 2019, the Company had not recorded any charges for impairment of long-lived assets. Impairment of goodwill As of March 31, 2020 and March 31, 2019, goodwill recorded in the Company’s Consolidated Balance Sheets totaled $2,607 and $2,936, respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. In its annual goodwill impairment test, the Company estimated the fair value of the reporting unit based on the income approach (also known as the discounted cash flow method) and determined the fair value of the Company’s goodwill exceeded the carrying amount of the Company’s goodwill. The goodwill value as March 31, 2020 decreased compared to March 31, 2019 due to foreign exchange currency translation. The changes in the carrying amount of goodwill as of March 31, 2019 and for the year ended March 31, 2020 were as follows: Amount Balance as of March 31, 2019 $ 2,936 Foreign currency translation (329 ) Balance as of March 31, 2020 $ 2,607 Income taxes The Company recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company will include interest and fines arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of March 31, 2020 and March 31, 2019, the Company had no accrued interest or fines related to uncertain tax positions. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company has presented the deferred tax impacts of GILTI tax in its consolidated financial statements as of March 31, 2020 and March 31, 2019. Financial instruments Financial instruments are carried at fair value as described below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. Fair value is the current bid price for financial assets, current ask price for financial liabilities and the average of current bid and ask prices when the Company is both in short and long positions for the financial instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange or other institution and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases have been classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss). The new standard also requires disclosures that provide additional information on recorded lease arrangements. In July 2018, the FASB issued ASU 2018-11, Leases –Targeted Improvements, which provides an optional transition method that allows entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the provisions of ASU 2018-11, including the optional transition method, on April 1, 2019, and selected practical expedients package as follows: - An entity need not reassess whether any expired or existing contracts are or contain leases; - An entity need not reassess the lease classification for any expired or existing leases; - An entity need not reassess initial direct costs for any existing leases. Operating lease assets and corresponding lease liabilities were recognized on the Company’s consolidated balance sheets. Refer to Note 26 - Leases, within the notes to consolidated financial statements for additional disclosure and significant accounting policies affecting leases. Fixed assets Fixed assets are carried at cost, net of accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range between three and seven years. Segment information The Company operates in a single operating segment offering financial services to its customers in a single geographic region covering Central Asia and Eastern Europe. The Company’s financial services business provides retail securities brokerage, research, investment counseling, securities trading, market making, corporate investment banking and underwriting services to its customers. The Company generates revenue from customers primarily from fee and commission income and interest income. The Company does not use profitability reports or other information disaggregated on a regional, country or divisional basis for making business decisions. Advertising expense For the years ended March 31, 2020 and 2019, the Company had expenses related to advertising in the amount of $5,635 and $4,500, respectively. All costs associated with advertising are expensed in the period incurred. Recent accounting pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. In March 2014, the Board issued a proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, which the Board finalized on August 28, 2018. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments in this Update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect that the new guidance will significantly impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. Through that Update, the Board added Topic 326 and made several consequential amendments to the FASB Accounting Standards Codification. The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The effective date and transition requirements for the amendments in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update. The Company does not expect a material impact from the new guidance on its consolidated financial statements. In April 2019, FASB also issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and in May 2019, FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326). The ASU 2019-04 amendments affect a variety of Topics in the Codification and is part of the Board’s ongoing project on Codification improvement. The FASB received several agenda request letters asking that the Board consider amending the transition guidance for Update 2016-13. ASU 2019-05 addresses stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. For entities that have not yet adopted the amendments in Update 2016-13, the effective dates and transition requirements for the amendments related to ASU 2019-04 are the same as the effective dates and transition requirements in Update 2016-13. ASU 2019-05 is effective for entities that have adopted the amendments in Update 2016-13 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period after the issuance of this Update as long as an entity has adopted the amendments in Update 2016-13. The Company does not expect that the new guidance will significantly impact its consolidated financial statements. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization. One of the changes in the ASU requires a presentation of changes in stockholders’ equity in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. The Company presented changes in stockholders' equity as separate financial statements for the current and comparative year-to-date interim periods beginning on April 1, 2019. The additional elements of the ASU did not have a material impact on the Company's consolidated financial statements. This guidance was effective immediately upon issuance. In November 2019, the FASB issued ASU 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). On the basis of feedback obtained from outreach with stakeholders and monitoring of implementation, the Board has gained a greater understanding about the implementation challenges encountered by all types of entities when adopting a major Update. The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two). Those other entities include private companies, smaller public companies, not-for-profit organizations, and employee benefit plans. Under this philosophy, a major Update would first be effective for bucket-one entities, that is, public business entities that are Securities and Exchange Commission (SEC) filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC's definition. The Master Glossary of the Codification defines public business entities and SEC filers. All other entities, including SRCs, other public business entities, and nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, it is anticipated that the Board will consider requiring an effective date staggered at least two years after bucket one for major Updates. The Company is currently an SRC and according to the ASU 2019-10, qualifies for bucket two, ASU 2016-13, ASU 2017-12 and ASU 2016-02 is effective for fiscal years beginning after December 15, 2022. ASU 2016-02, Leases (Topic 842) was adopted by the Company beginning April 1, 2019. The Company is currently evaluating the impact that ASU 2019-10 will have on its consolidated financial statements and related disclosures. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced an expected credit loss model for the impairment of financial assets measured at amortized cost basis. That model replaces the probable, incurred loss model for those assets. Through the amendments in that Update, the Board added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. ASU 2019-11 is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the impacts of the provisions of ASU 2019-12 on its financial condition, results of operations, and cash flows. In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force) (“ASU 2020-01”). The amendments in this Update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative of a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted. The Company is currently evaluating the impact that ASU 2020-01 may have on its consolidated financial statements and related disclosures. In February 2020, the FASB issued Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). Generally, amendments included clarifications on SAB Topic 6.M, Financial Reporting Release No. 28 - Accounting for Loan Losses by Registrants Engaged in Lending Activities Subject to FASB ASC regarding measurement of current expected losses, development, governance and documentation of a systematic methodology, documentation of results of a systematic methodology and validation of a systematic methodology. In terms of amendments of Accounting Standards Update No. 2019-10, Financial Instruments-Credit Losse |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | March 31, 2020 March 31, 2019 Accounts with stock exchange $ 14,904 $ 10,507 Current account with commercial banks 14,462 6,656 Securities purchased under reverse repurchase agreements 9,645 7,887 Petty cash in bank vault and on hand 8,981 2,674 Current account in clearing organizations 6,590 5,887 Current accounts with brokers 4,051 10,220 Current account with Central Bank (Russia) 2,726 2,161 Current account with National Settlement Depository (Russia) 1,348 1,275 Current account with Central Depository (Kazakhstan) 501 2,693 Total cash and cash equivalents $ 63,208 $ 49,960 As of March 31, 2020, and March 31, 2019, with the exception of funds deposited with a bank in the United States which may qualify for FDIC insurance up to $250,000, cash and cash equivalents were not insured. As of March 31, 2020 and March 31, 2019, the cash and cash equivalents balance included collateralized securities received under reverse repurchase agreements on the terms presented below: March 31, 2020 Interest rates and remaining contractual maturity of the agreements Average Interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Corporate equity 14.08 % $ 9,212 $ 15 $ 9,227 Corporate debt 14.25 % 108 - 108 Non-US sovereign debt 17.18 % 53 257 310 Total $ 9,373 $ 272 $ 9,645 March 31, 2019 Interest rates and remaining contractual maturity of the agreements Average Interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Corporate equity 11.90 % $ 4,328 $ 804 $ 5,132 Corporate debt 14.00 % 120 - 120 Non-US sovereign debt 8.25 % 2,635 - 2,635 Total $ 7,083 $ 804 $ 7,887 The securities received by the Company as collateral under reverse repurchase agreements are liquid trading securities with market quotes and significant trading volume. The fair value of collateral received by the Company under reverse repurchase agreements as of March 31, 2020 and March 31, 2019, was $10,272 and $8,472, respectively. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Mar. 31, 2020 | |
Restricted Cash [Abstract] | |
Restricted Cash | As of March 31, 2020 and March 31, 2019, the Company’s restricted cash consisted of the cash portion of the funds allocated for deferred distribution payments, cash segregated in a special custody account for the exclusive benefit of our brokerage customers and required reserves with the Central Bank of the Russian Federation which represents cash on hand balance requirements. In June 2019 the Company invested a portion of the deferred distribution payments into certain financial instruments. For additional information regarding that portion of the funds held for deferred distribution payments that have been invested into certain financial instruments, see Note 5 - Trading and Available-For-Sale Securities at Fair Value. Restricted cash consisted of: March 31, 2020 March 31, 2019 Brokerage customers’ cash $ 63,506 $ 28,931 Deferred distribution payments 2,097 8,534 Guaranty deposits 518 732 Reserve with Central Bank of Russia 476 263 Total restricted cash $ 66,597 $ 38,460 |
Trading and Available-For-Sale
Trading and Available-For-Sale Securities at Fair Value | 12 Months Ended |
Mar. 31, 2020 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Trading and Available-For-Sale Securities at Fair Value | As of March 31, 2020, and March 31, 2019, trading and available-for-sale securities consisted of: March 31, 2020 March 31, 2019 Debt securities $ 87,014 $ 62,691 Equity securities 69,530 105,017 Mutual investment funds - 241 Total trading securities $ 156,544 $ 167,949 Certificate of deposit $ 5,076 $ - Mutual investment funds 672 - Debt securities 405 - Preferred shares 284 - Equity securities 1 2 Total available-for-sale securities, at fair value $ 6,438 $ 2 The Company recognized no other than temporary impairment in accumulated other comprehensive income. The fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Company utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Company is valuing and the selected benchmark. Depending on the type of securities owned by the Company, other valuation methodologies may be required. Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels: ● Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets. ● Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured. ● Level 3 - Valuation inputs are unobservable and significant to the fair value measurement. The following tables present trading securities assets in the Consolidated Financial Statements or disclosed in the Notes to the Consolidated Financial Statements at fair value on a recurring basis as of March 31, 2020 and March 31, 2019: Fair Value Measurements at March 31, 2020 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant unobservable units March 31, 2020 (Level 1) (Level 2) (Level 3) Debt securities $ 87,014 $ 87,014 $ - $ - Equity securities 69,530 58,271 - 11,259 Total trading securities $ 156,544 $ 145,285 $ - $ 11,259 Equity securities $ 1 $ - $ - $ 1 Debt securities 405 - 405 - Certificate of deposit 5,076 - 5,076 - Mutual investment funds 672 672 - - Preferred shares 284 - 284 - Total available-for-sale securities, at fair value $ 6,438 $ 672 $ 5,765 $ 1 Fair Value Measurements at March 31, 2019 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant unobservable units March 31, 2019 (Level 1) (Level 2) (Level 3) Equity securities $ 105,017 $ 105,017 $ - $ - Debt securities 62,691 62,187 - 504 Mutual investment funds 241 241 - - Total trading securities $ 167,949 $ 167,445 $ - $ 504 Equity securities $ 2 $ - $ - $ 2 Total available-for-sale securities, at fair value $ 2 $ - $ - $ 2 The table below presents the Valuation Techniques and Significant Level 3 Inputs used in the valuation as of March 31, 2020 and 2019. The table is not intended to be all inclusive, but instead captures the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of March 31, 2020 FV as of March 31, 2019 Significant Unobservable Inputs % Corporate bonds DCF - $ 504 Discount rate 11.3% Equity securities DCF $11,259 - Discount rate 9.5% Estimated number of years 9 years The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the year ended March 31, 2020: Trading securities Available-for-sale securities Balance as of March 31, 2019 $ 504 $ 2 Sale of investments that use Level 3 inputs (497 ) - Purchase of investments that use Level 3 inputs 10,430 - Revaluation of investments that use Level 3 inputs 829 - Foreign currency translation (7 ) - Balance as of March 31, 2020 $ 11,259 $ 2 March 31, 2020 Assets measured at amortized cost Unrealized loss accumulated in other comprehensive income/(loss) Assets measured at fair value Certificate of deposit $ 5,050 $ 26 $ 5,076 Mutual investment funds 696 (24 ) 672 Debt securities 456 (51 ) 405 Preferred shares 306 (22 ) 284 Equity securities 1 - 1 Balance as of March 31, 2020 $ 6,509 $ (71) $ 6,438 March 31, 2019 Assets measured at amortized cost Unrealized loss accumulated in other comprehensive income/(loss) Assets measured at fair value Equity securities $ 1 $ 1 $ 2 Balance as of March 31, 2019 $ 1 $ 1 $ 2 In connection with the 2011 sale of the Company’s oil and gas exploration and production operations the Company declared distributions to its shareholders. Certain shareholders, however, never completed and submitted the necessary documentation to establish their right to receive the distributions. The total amount held in reserve by the Company on behalf of such shareholders is equal to available-for-sale securities, at fair value, less equity securities, plus the of amount identified as “deferred distribution payments” in Note 4 – Restricted Cash. These funds are currently payable. The Company has no control over when, or if, any entitled shareholder will submit the necessary documentation to establish their claim to receive their distribution payment. |
Brokerage and Other Receivables
Brokerage and Other Receivables, Net | 12 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Brokerage and Other Receivables, Net | March 31, 2020 March 31, 2019 Marginal lending receivables $ 107,770 $ 46,716 Receivables from brokerage clients 4,396 824 Receivable from sale of securities 1,498 27,684 Bank commissions receivable 218 17 Receivable for underwriting and market-making services 67 88 Dividends accrued 1 108 Other receivables 50 25 Allowance for receivables (313 ) (1,626 ) Total brokerage and other receivables, net $ 113,687 $ 73,836 On March 31, 2020 and March 31, 2019, amounts due from a single related party customer were $90,696 and $31,792, respectively or 80% and 43%, respectively of total brokerage and other receivables, net. Based on historical data, the Company considers receivables due from related parties fully collectible. As of March 31, 2020 and 2019, using historical and statistical data, the Company recorded an allowance for brokerage receivables in the amount of $313 and $1,626, respectively. |
Loans Issued
Loans Issued | 12 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Issued | Loans issued as of March 31, 2020, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Subordinated loan $ 5,042 December, 2022-April, 2024 3.69 % — USD Uncollateralized non-bank loan 2,313 January, 2021 - February, 2021 3.00 % — USD Bank customer loans 1,635 July, 2020 - May, 2044 14.31 % 258 RUB Subordinated loan 1,333 September, 2029 7.00 % — UAH Uncollateralized non-bank loan 129 March, 2021 6.00 % — RUB Loans to key employees 9 December, 2020 4.50 % — EUR $ 10,461 Loans issued as of March 31, 2019, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Collateralized brokerage loans $ 1,888 December, 2019 4.75 % 4,718 USD Bank customer loans 637 May 2019 - Jan. 2039 13.34 % — RUB $ 2,525 |
Deferred Tax Assets
Deferred Tax Assets | 12 Months Ended |
Mar. 31, 2020 | |
Deferred Tax Assets, Net [Abstract] | |
Deferred Tax Assets | The Company is subject to taxation in the Russian Federation, Kazakhstan, Kyrgyzstan, Cyprus, Ukraine, Uzbekistan, Germany and the United States of America. The tax rates used for deferred tax assets and liabilities for the years ended March 31, 2020 and 2019, were 21% for the U.S., 20% for the Russian Federation, Kazakhstan, Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 18% for Ukraine and 12% for Uzbekistan. Deferred tax assets and liabilities of the Company are comprised of the following: March 31, 2020 March 31, 2019 Deferred tax assets: Tax losses carryforward $ 1,691 $ 2,376 Revaluation on trading securities 72 2,095 Accrued liabilities 7 35 Stock compensation expenses 4 - Valuation allowance (677 ) (3,241 ) Deferred tax assets $ 1,097 $ 1,265 Deferred tax liabilities: Revaluation on trading securities $ 513 $ - Other liabilities 14 - Deferred tax liabilities $ 527 $ - Net deferred tax assets $ 570 $ 1,265 The Company is subject to the U.S. federal income taxes at a rate of 21%. The reconciliation of the provision for income taxes at the 21% tax rate compared to the Company’s income tax expense as reported is as follows: Year ended March 31, 2020 Year ended March 31, 2019 Profit before tax at 21% and 34% $ 5,908 $ 1,788 Global Intangible Low Taxed Income 4,803 573 Permanent differences 793 430 Stock based compensation 551 309 Valuation allowance 416 808 Nontaxable gains 401 (3,811 ) Other differences 20 418 Losses carried forward adjustment (154 ) 1,678 Provision for impairment losses (295 ) 386 Foreign tax rate differential (2,938 ) (1,211 ) Foreign tax credit (3,503 ) - Income tax provision $ 6,002 $ 1,368 The income tax expense comprises: Year ended March 31, 2020 Year ended March 31, 2019 Current income tax charge $ 5,307 $ 1,817 Deferred income tax charge/(benefit) 695 (449 ) Income tax provision $ 6,002 $ 1,368 During the years ended March 31, 2020 and 2019, the Company realized net income before income tax of $28,132 and $8,515, respectively. During the same periods, the Company’s effective tax rate was equal to 21.34% and 16.07%, respectively. This increase in income tax expense was primarily attributable to a $43,231 increase in commissions earned by Freedom CY during the fiscal year ended March 31, 2020. Tax losses carryforward as of March 31, 2020 was $1,691 and is subject to income tax in US, Russia, Ukraine and Uzbekistan. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | March 31, 2020 March 31, 2019 Office equipment $ 2,184 $ 1,452 Capital expenditures on leasehold improvements 1,968 1,724 Furniture 1,865 1,713 Processing and storage data centers 960 679 Land 778 394 Vehicles 378 353 Other 476 457 Less: Accumulated depreciation (2,225 ) (1,209 ) Total fixed assets $ 6,384 $ 5,563 Depreciation expense totaled $1,407 and $790 for the years ended March 31, 2020 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | March 31, 2020 March 31, 2019 Trading platform $ 2,542 $ 3,052 Client base 2,185 2,502 Other intangible assets 1,838 1,062 Less: Accumulated amortization (3,143 ) (2,390 ) Total intangible assets $ 3,422 $ 4,226 Amortization expense totaled $1,251 and $1,244 for the years ended March 31, 2020 and 2019, respectively. |
Other Assets, Net
Other Assets, Net | 12 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets, Net | March 31, 2020 March 31, 2019 Advances paid $ 5,830 $ 1,851 Rent guarantee deposit 1,355 714 Current income tax asset 851 502 Outstanding settlement operations 310 429 Taxes other than income taxes 310 149 Guaranty deposit 67 69 Prepaid insurance 22 21 Other 338 516 Total other assets 9,083 4,251 Allowance for other assets (21 ) (62 ) Other assets, net $ 9,062 $ 4,189 |
Securities Sold, Not Yet Purcha
Securities Sold, Not Yet Purchased - At Fair Value | 12 Months Ended |
Mar. 31, 2020 | |
Financial Instruments Sold, Not yet Purchased, at Fair Value [Abstract] | |
Securities Sold, Not Yet Purchased - At Fair Value | As of March 31, 2020, and March 31, 2019, the Company’s securities sold, not yet purchased – at fair value was $0. During the year ended March 31, 2020, the Company sold shares received as pledges under reverse repurchase agreements and recognized financial liabilities at fair value in the amount $3,155 and closed short positions in the amount of $3,118 by purchasing securities from third parties, reducing its financial liability. During the year ended March 31, 2020, the Company recognized a gain on the change in the fair value of financial liabilities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss) in the amount of $37, with no foreign exchange translation gains/(loss). During the year ended March 31, 2020, the Company sold shares that were not owned by the Company and recognized relevant financial liabilities at fair value in the amount of $3,550 and closed short positions in the amount of $4,377 reducing its financial liability. During the year ended March 31, 2020, the Company recognized a loss on the change in fair value of financial liabilities at fair value in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss) in the amount of $827 with no foreign exchange translation gain/(loss). A short sale involves the sale of a security that is not owned in the expectation of purchasing the same security (or a security exchangeable) at a later date at a lower price. A short sale involves the risk of a theoretically unlimited increase in the market price of the security that would result in a theoretically unlimited loss. |
Debt Securities Issued
Debt Securities Issued | 12 Months Ended |
Mar. 31, 2020 | |
Debt Securities [Abstract] | |
Debt Securities Issued | March 31, 2020 March 31, 2019 Debt securities issued denominated in USD $ 64,783 $ 20,265 Debt securities issued denominated in RUB 6,432 7,724 Accrued interest 1,081 549 Total $ 72,296 $ 28,538 As of March 31, 2020, and March 31, 2019, the Company had debt securities issued in the amount of $72,296 and $28,538 respectively. As of March 31, 2020, the Company’s outstanding debt securities had fixed annual coupon rates ranging from 6.5% to 12% and maturity dates ranging from June 2020 to January 2023. The Company’s debt securities include bonds of Freedom KZ and RU issued under Kazakhstani and Russian Federation law, which trade on the Kazakhstan Stock Exchange and the Moscow Exchange, respectively. The Company’s debt securities also include $20.5 million in the aggregate number of notes of FRHC issued from December 2019 to February 2020. The FRHC issued notes, denominated in USD, which have minimum denominations of $100,000, bear interest at an annual rate of 7% and are due in 2022. The FRHC notes were sold only in Kazakhstan to non-U.S. persons in compliance with Astana International Financial Centre law and trade on the Astana International Exchange. Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Debt securities issued as of March 31, 2020 and March 31, 2019, included $1,081 and $549 accrued interest, respectively. The FRHC notes are actively traded on AIX, KASE and MOEX. |
Customer Liabilities
Customer Liabilities | 12 Months Ended |
Mar. 31, 2020 | |
Contract with Customer, Liability [Abstract] | |
Customer Liabilities | The Company recognizes customer liabilities associated with funds held by our brokerage and bank customers. Customer liabilities consist of: March 31, 2020 March 31, 2019 Brokerage customers $ 115,922 $ 47,686 Banking customers 52,510 34,346 Total $ 168,432 $ 82,032 As of March 31, 2020, banking customer liabilities consisted of current accounts and deposits of $25,384 and $27,126, respectively. As of March 31, 2019, banking customer liabilities consisted of current accounts and deposits of $12,383 and $21,963, respectively. |
Trade Payables
Trade Payables | 12 Months Ended |
Mar. 31, 2020 | |
Accounts Payable [Abstract] | |
Trade Payables | March 31, 2020 March 31, 2019 Margin lending payable $ 6,101 $ 29,081 Trade payable for securities purchased 1,860 2,939 Payables to suppliers of goods and services 202 555 Other 235 120 Total $ 8,398 $ 32,695 On March 31, 2020 and March 31, 2019, amounts due to a single related party $4,306 or 51% and $938 or 3%, respectively. |
Securities Repurchase Agreement
Securities Repurchase Agreement Obligations | 12 Months Ended |
Mar. 31, 2020 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Securities Repurchase Agreement Obligations | As of March 31, 2020 and March 31, 2019, trading securities included collateralized securities subject to repurchase agreements as described in the following table: March 31, 2020 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Over 90 days Total Securities sold under repurchase agreements Corporate equity 12.16 % $ 20,711 $ - $ - $ 20,711 Corporate debt 13.27 % 15,974 - - 15,974 Non-US sovereign debt 13.00 % 11,519 - - 11,519 Total securities sold under repurchase agreements $ 48,204 $ - $ - $ 48,204 March 31, 2019 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Over 90 days Total Securities sold under repurchase agreements Corporate equity 12.06 % $ 49,048 $ - $ 2,146 $ 51,194 Corporate debt 10.38 % 13,548 - - 13,548 Non-US sovereign debt 8.62 % 8,879 - - 8,879 Total securities sold under repurchase agreements $ 71,475 $ - $ 2,146 $ 73,621 The fair value of collateral pledged under repurchase agreements as of March 31, 2020 and March 31, 2019, was $54,222 and $105,842, respectively. Securities pledged as collateral by the Company under repurchase agreements are liquid trading securities with market quotes and significant trading volume. |
Loans Received
Loans Received | 12 Months Ended |
Mar. 31, 2020 | |
Loans Received | |
Loans Received | Company Lender March 31, 2020 March 31, 2019 Interest rate Term Maturity dates Freedom Holding Corp. Non-Bank $ - $ 3,917 3 % 1-2 year 04/30/2019 - 12/31/2019 Freedom Finance Europe Limited Non-Bank - 91 1 % 2 year 12/11/2019 Total $ - $ 4,008 Non-bank loans received are unsecured. As of March 31, 2020 and March 31, 2019, accrued interest on the loans totaled $0 and $52, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Mar. 31, 2020 | |
Other Liabilities [Abstract] | |
Other Liabilities | March 31, 2020 March 31, 2019 Salaries and other employee benefits $ 999 $ 1,307 Vacation reserve 933 942 Payable to suppliers 353 212 Outstanding settlements operations 307 314 Taxes payable other than income tax 38 127 Other 201 230 Total $ 2,831 $ 3,132 |
Fee and Commission Income_ (Exp
Fee and Commission Income/ (Expense) | 12 Months Ended |
Mar. 31, 2020 | |
Fee And Commission Income | |
Fee and Commission Income/(Expense) | Year ended March 31, 2020 Year ended March 31, 2019 Fee and commission income: Brokerage services $ 82,800 $ 36,810 Bank services 7,240 6,133 Underwriting services 2,360 861 Other commission income 268 512 Total fee and commission income $ 92,668 $ 44,316 Fee and commission expense: Brokerage services $ 18,673 $ 4,164 Bank services 1,299 919 Central Depository services 775 301 Exchange services 710 574 Other commission expense 479 280 Total fee and commission expense $ 21,936 $ 6,238 |
Net Gain on Trading Securities
Net Gain on Trading Securities | 12 Months Ended |
Mar. 31, 2020 | |
Gain (Loss) on Investments [Abstract] | |
Net Gain on Trading Securities | Year ended March 31, 2020 Year ended March 31, 2019 Net gain recognized during the period on trading securities sold during the period $ 22,770 $ 25,535 Net unrealized loss recognized during the reporting period on trading securities still held at the reporting date (7,847 ) (5,373 ) Net gain recognized during the period on trading securities $ 14,923 $ 20,162 |
Net Interest Income_Expense
Net Interest Income/Expense | 12 Months Ended |
Mar. 31, 2020 | |
Interest Income (Expense), Net [Abstract] | |
Net Interest Income/(Expense) | Year ended March 31, 2020 Year ended March 31, 2019 Interest income: Interest income on financial assets recorded at amortized cost comprises: Interest income on reverse repurchase agreements and amounts due from banks $ 1,586 $ 2,290 Interest income on loans to customers 572 264 Total interest income on financial assets recorded at amortized cost 2,158 2,554 Interest income on financial assets recorded at fair value through profit or loss comprises: Interest income on trading securities 9,976 11,371 Total interest income on financial assets recorded at fair value through profit or loss 9,976 11,371 Total interest income $ 12,134 $ 13,925 Year ended March 31, 2020 Year ended March 31, 2019 Interest expense: Interest expense on financial liabilities recorded at amortized cost comprises: Interest expense on securities repurchase agreement obligations $ 7,140 $ 11,113 Interest expense on debt securities issued 3,220 1,907 Interest expense on customer accounts and deposits 1,598 1,305 Interest expense on loans received 437 324 Other interest expense 4 - Total interest expense on financial liabilities recorded at amortized cost 12,399 14,649 Total interest expense $ 12,399 $ 14,649 |
Net Gain_(Loss) on Foreign Exch
Net Gain/(Loss) on Foreign Exchange Operations | 12 Months Ended |
Mar. 31, 2020 | |
Net Gainloss On Foreign Exchange Operations | |
Net Gain on Foreign Exchange Operations | Year ended March 31, 2020 Year ended March 31, 2019 Sales and purchases of foreign currency, dealing $ 1,197 $ (3 ) Translation difference 1,118 (4,115 ) Total net gain/(loss) on foreign exchange operations $ 2,315 $ (4,118 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | During the years ended March 31, 2020 and 2019, the Company earned commission income from related parties in the amounts of $79,143 and $38,974, respectively. Commission income earned from related parties is comprised primarily of brokerage commissions and commissions for money transfers by brokerage clients. During the years ended March 31, 2020 and 2019, the Company paid commission expense to related parties in the amount of $3,668 and $0, respectively. As of March 31, 2020 and March 31, 2019, the Company had cash and cash equivalents held in brokerage accounts of related parties totaling $212 and $8,444, respectively. As of March 31, 2020 and March 31, 2019, the Company had loans issued to related parties totaling $1,477 and $1,888, respectively. As of March 31, 2020 and March 31, 2019, the Company had bank commission receivables and receivables from brokerage clients from related parties totaling $3,611 and $192, respectively. Brokerage and other receivables from related parties result principally from commissions receivable on the brokerage operations of related parties. As of March 31, 2020 and March 31, 2019, the Company had margin lending receivables with related parties totaling $105,892 and $43,720, respectively. As of March 31, 2020 and March 31, 2019, the Company had margin lending payables to related parties, totaling $4,306 and $1,090, respectively. As of March 31, 2020, and March 31, 2019, the Company had loans received from a related party totaling $0 and $3,957, respectively. As of March 31, 2020, and March 31, 2019, the Company had accounts payable due to a related party totaling $1,879 and $345, respectively. As of March 31, 2020, and March 31, 2019, the Company had consideration due to a related party for the Nettrader acquisition totaling $0 and $2,590, respectively. As of March 31, 2020, and March 31, 2019, the Company had customer liabilities on brokerage accounts and bank accounts of related parties totaling $26,150 and $29,904, respectively and held restricted customer cash on brokerage accounts of related parties totaling $8,410 and $13,999, respectively. Brokerage and related banking services, including margin lending, were provided to such related parties pursuant standard client account agreements and at standard market rates. In August 2019, to comply with certain foreign ownership restrictions relating to registered Ukrainian broker-dealers, the Company sold 67.12% of the outstanding equity interest of Freedom UA to Askar Tashtitov, the Company’s president, for $100. The Company retained the remaining 32.88% of the outstanding equity interests in Freedom UA. In connection with this transaction, the Company also entered into a series of contractual arrangements with Freedom UA and Mr. Tashtitov, including a consulting services agreement, an operating agreement and an option agreement. For additional information regarding this transaction, see Note 1 – Description of Business. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholder's Equity | During the years ended March 31, 2020 and 2019, shareholders made capital contributions of $0 and $225 to FRHC, respectively. During the years ended March 31, 2020 and 2019 awarded nonqualified stock options were exercised in the amount of $455 and $20, respectively. On October 6, 2017, the Company awarded restricted stock grants totaling 3,900,000 shares of its common stock to 16 employees and awarded nonqualified stock options to purchase an aggregate of 360,000 shares of its common stock to two employees. Of the 3,900,000 shares awarded pursuant to the restricted stock grant awards, 1,200,000 shares are subject to two-year vesting conditions and 2,700,000 shares are subject to three-year vesting conditions. All of the nonqualified stock options are subject to three-year vesting conditions. The Company recorded stock compensation expense for restricted stock grants and stock options in the amount of $2,625 during the year ended March 31, 2020. The Company recorded stock-based compensation expense for restricted stock grants and stock options in the amount of $3,498 during year ended March 31, 2019, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | During the year ended March 31, 2020, no stock options were granted. Total compensation expense related to options granted was $216 for the year ended March 31, 2020 and $215 for the year ended March 31, 2019. As of March 31, 2020, there was total remaining compensation expense of $112 related to stock options, which will be recorded over a weighted average period of approximately 0.52 years. During the year ended March 31, 2020, options to purchase a total of 230,000 shares were exercised. As disclosed in Note 24, on October 6, 2017, the Company issued restricted stock awards totaling 3,900,000 shares of its common stock to 16 employees and awarded nonqualified stock options to purchase an aggregate of 360,000 shares of its common stock at a strike price of $1.98 per share to two employees. Shares of restricted stock have the same dividend and voting rights as common stock while options do not. All awards were issued at the fair value of the underlying shares at the grant date. The Company has determined fair value of stock options using the Black-Scholes option valuation model based on the following key assumptions: Term (years) 3 Volatility 165.33 % Risk-free rate 1.66 % Stock-based compensation expense for the cost of the awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company's employee stock options. The following is a summary of stock option activity for year ended March 31, 2020: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, March 31, 2019 350,000 $ 1.98 8.52 $ 2,342 Granted - - - - Exercised (230,000 ) 1.98 - 2,630 Forfeited/cancelled/expired - - - - Outstanding, at March 31, 2020 120,000 $ 1.98 7.52 1,466 Exercisable, at March 31, 2020 - $ - - $ - During the year ended March 31, 2020, no restricted shares were awarded. The compensation expense related to restricted stock awards was $2,409 during the year ended March 31, 2020, and $3,283 during the year ended March 31, 2019. As of March 31, 2020, there was $977 of total unrecognized compensation cost related to non-vested shares of restricted stock granted. The cost is expected to be recognized over a weighted average period of 0.52 years. The table below summarizes the activity for the Company's restricted stock outstanding during the year ended March 31, 2020: Shares Weighted Average Fair Value Outstanding, March 31, 2019 2,275,000 $ 4,777 Granted - - Vested - - Forfeited/cancelled/expired - - Outstanding, at March 31, 2020 2,275,000 $ 4,777 During the year ended March 31, 2020, the Company recorded expenses for share based payments in the amount of $1,052. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate. The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of March 31, 2020: Classification on Balance Sheet March 31, 2020 Assets Operating lease assets Right-of-use assets $ 14,543 Total lease assets $ 14,543 Liabilities Operating lease liability Operating lease obligations $ 14,384 Total lease liability $ 14,384 Lease obligations at March 31, 2020, consisted of the following: Twelve months ending March 31, 2021 $ 5,966 2022 5,562 2023 4,371 2024 949 2025 219 Total payments 17,067 Less: amounts representing interest (2,683 ) Lease obligation, net 14,384 Weighted average remaining lease term (in months) 29 Weighted average discount rate 12 % Lease commitments for short-term operating leases as of March 31, 2020 was approximately $354. The Company’s rent expense for office space was $1,147 for the year ended March 31, 2020 and $4,819 for the year ended March 31, 2019, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | The Company has performed an evaluation of subsequent events through the time of filing this annual report on Form 10K with the SEC. Other than as disclosed below, during this period the Company did not have any additional material recognizable subsequent events. On July 6, 2020, the Company announced that the Company has concluded the acquisition of IC ZERICH Capital Management JSC following receipt of approval from the Russian Federal Antimonopoly Service. Zerich Capital commenced business in 1995 and is one of the oldest securities brokerage firms in Russia, currently ranking as the 19th largest brokerage house in Russia in terms of clients. On July 2, 2020, the Company announced that it had retired debt securities denominated in USD which had a fixed annual coupon rate of 8% and a carrying value of $6,175 including interest accrued of $124 as of March 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting principles | The Company’s accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (US GAAP). These financial statements have been prepared on the accrual basis of accounting. |
Basis of presentation and principles of consolidation | The Company’s consolidated financial statements present the consolidated accounts of FRHC, Freedom RU, FFIN Bank, Freedom KZ, Freedom Global, Freedom CY, Freedom GE, Freedom UZ, Freedom GE, FFIN and Freedom UA. All significant inter-company balances and transactions have been eliminated from the consolidated financial statements. |
Consolidation of variable interest entities | In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. |
Use of estimates | The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing its financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Revenue and expense recognition | Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Company’s revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other US GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Company’s revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of non-interest income are as follows: ● Commissions on brokerage services; ● Commissions on banking services (money transfers, foreign exchange operations and other); and ● Commissions on investment banking services (underwriting, market making, and bondholders’ representation services). Under Topic 606, the Company is required to recognize incentive fees when they are probable and there is not a significant chance of reversal in the future. For the brokerage commission, banking service commission and investment banking services commission contracts in place at the time of adoption, this change in policy did not result in any actual change in revenue that had already been recognized and therefore there was no transition adjustment necessary. The Company recognizes revenue when five basic criteria have been met: ● The parties to the contract have approved the contract (in writing, orally, or in accordance with other customary business practices) and are committed to perform their respective obligations. ● The entity can identify each party’s rights regarding the goods or services to be transferred. ● The entity can identify the payment terms for the goods or services to be transferred. ● The contract has commercial substance (that is, the risk, timing, or amount of the entity’s future cash flows is expected to change as a result of the contract). ● It is probable that the entity will collect substantially all of the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. |
Derivative financial instruments | In the normal course of business, the Company invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. |
Functional currency | Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company’s functional currencies are the Russian ruble, European euro, Ukrainian hryvnia, Uzbekistani som and Kazakhstani tenge, and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive loss”. |
Cash and cash equivalents | Cash and cash equivalents are generally comprised of certain highly liquid investments with maturities of three months or less at the date of purchase. Cash and cash equivalents include reverse repurchase agreements which are recorded at the amounts at which the securities were acquired or sold plus accrued interest. |
Securities reverse repurchase and repurchase agreements | A reverse repurchase agreement is a transaction in which the Company purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Company sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Company retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Company enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers’ needs and to finance its inventory positions. The Company enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. |
Available-for-sale securities | Financial assets categorized as available-for-sale (“AFS”) are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Listed shares and listed redeemable notes held by the Company that are traded in an active market are classified as AFS and are stated at fair value. The Company has investments in unlisted shares that are not traded in an active market but that are also classified as investments AFS and stated at fair value (because Company management considers that fair value can be reliably measured). Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive income/(loss), with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, dividend income and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of other Comprehensive Income/(Loss). Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. |
Trading securities | Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss) and included in net gain/(loss) on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss) and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss). |
Debt securities issued | Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Company purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss). |
Brokerage and other receivables | Brokerage and other receivables comprise commissions and receivables related to the securities brokerage and banking activity of the Company. At initial recognition, brokerage and other receivables are recognized at fair value. Subsequently, brokerage and other receivables are carried at cost net of any allowance for impairment losses. |
Derecognition of financial assets | A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: ● The transferred financial assets have been isolated from the Company - put presumptively beyond the reach of the Company and its creditors, even in bankruptcy or other receivership. ● The transferee has rights to pledge or exchange financial assets. ● The Company or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Company has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. |
Impairment of long lived assets | In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Company periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. As of March 31, 2020 and March 31, 2019, the Company had not recorded any charges for impairment of long-lived assets. |
Impairment of goodwill | As of March 31, 2020 and March 31, 2019, goodwill recorded in the Company’s Consolidated Balance Sheets totaled $2,607 and $2,936, respectively. The Company performs an impairment review at least annually unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. In its annual goodwill impairment test, the Company estimated the fair value of the reporting unit based on the income approach (also known as the discounted cash flow method) and determined the fair value of the Company’s goodwill exceeded the carrying amount of the Company’s goodwill. The goodwill value as March 31, 2020 decreased compared to March 31, 2019 due to foreign exchange currency translation. The changes in the carrying amount of goodwill as of March 31, 2019 and for the year ended March 31, 2020 were as follows: Amount Balance as of March 31, 2019 $ 2,936 Foreign currency translation (329 ) Balance as of March 31, 2020 $ 2,607 |
Income taxes | The Company recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. The Company accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Company will include interest and fines arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of March 31, 2020 and March 31, 2019, the Company had no accrued interest or fines related to uncertain tax positions. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company has presented the deferred tax impacts of GILTI tax in its consolidated financial statements as of March 31, 2020 and March 31, 2019. |
Financial instruments | Financial instruments are carried at fair value as described below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. Fair value is the current bid price for financial assets, current ask price for financial liabilities and the average of current bid and ask prices when the Company is both in short and long positions for the financial instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange or other institution and those prices represent actual and regularly occurring market transactions on an arm’s length basis. |
Leases | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases have been classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statements of Operations and Statements of Other Comprehensive Income/(Loss). The new standard also requires disclosures that provide additional information on recorded lease arrangements. In July 2018, the FASB issued ASU 2018-11, Leases –Targeted Improvements, which provides an optional transition method that allows entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted the provisions of ASU 2018-11, including the optional transition method, on April 1, 2019, and selected practical expedients package as follows: - An entity need not reassess whether any expired or existing contracts are or contain leases; - An entity need not reassess the lease classification for any expired or existing leases; - An entity need not reassess initial direct costs for any existing leases. Operating lease assets and corresponding lease liabilities were recognized on the Company’s consolidated balance sheets. Refer to Note 26 - Leases, within the notes to consolidated financial statements for additional disclosure and significant accounting policies affecting leases. |
Fixed assets | Fixed assets are carried at cost, net of accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range between three and seven years. |
Segment information | The Company operates in a single operating segment offering financial services to its customers in a single geographic region covering Central Asia and Eastern Europe. The Company’s financial services business provides retail securities brokerage, research, investment counseling, securities trading, market making, corporate investment banking and underwriting services to its customers. The Company generates revenue from customers primarily from fee and commission income and interest income. The Company does not use profitability reports or other information disaggregated on a regional, country or divisional basis for making business decisions. |
Advertising expense | For the years ended March 31, 2020 and 2019, the Company had expenses related to advertising in the amount of $5,635 and $4,500, respectively. All costs associated with advertising are expensed in the period incurred. |
Recent accounting pronouncements | In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. In March 2014, the Board issued a proposed FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, which the Board finalized on August 28, 2018. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP. The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments in this Update apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect that the new guidance will significantly impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. Through that Update, the Board added Topic 326 and made several consequential amendments to the FASB Accounting Standards Codification. The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The effective date and transition requirements for the amendments in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update. The Company does not expect a material impact from the new guidance on its consolidated financial statements. In April 2019, FASB also issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments and in May 2019, FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326). The ASU 2019-04 amendments affect a variety of Topics in the Codification and is part of the Board’s ongoing project on Codification improvement. The FASB received several agenda request letters asking that the Board consider amending the transition guidance for Update 2016-13. ASU 2019-05 addresses stakeholders’ concerns by providing an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For those entities, the targeted transition relief will increase comparability of financial statement information by providing an option to align measurement methodologies for similar financial assets. Furthermore, the targeted transition relief also may reduce the costs for some entities to comply with the amendments in Update 2016-13 while still providing financial statement users with decision-useful information. For entities that have not yet adopted the amendments in Update 2016-13, the effective dates and transition requirements for the amendments related to ASU 2019-04 are the same as the effective dates and transition requirements in Update 2016-13. ASU 2019-05 is effective for entities that have adopted the amendments in Update 2016-13 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period after the issuance of this Update as long as an entity has adopted the amendments in Update 2016-13. The Company does not expect that the new guidance will significantly impact its consolidated financial statements. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization. One of the changes in the ASU requires a presentation of changes in stockholders’ equity in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. The Company presented changes in stockholders' equity as separate financial statements for the current and comparative year-to-date interim periods beginning on April 1, 2019. The additional elements of the ASU did not have a material impact on the Company's consolidated financial statements. This guidance was effective immediately upon issuance. In November 2019, the FASB issued ASU 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). On the basis of feedback obtained from outreach with stakeholders and monitoring of implementation, the Board has gained a greater understanding about the implementation challenges encountered by all types of entities when adopting a major Update. The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two). Those other entities include private companies, smaller public companies, not-for-profit organizations, and employee benefit plans. Under this philosophy, a major Update would first be effective for bucket-one entities, that is, public business entities that are Securities and Exchange Commission (SEC) filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC's definition. The Master Glossary of the Codification defines public business entities and SEC filers. All other entities, including SRCs, other public business entities, and nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, it is anticipated that the Board will consider requiring an effective date staggered at least two years after bucket one for major Updates. The Company is currently an SRC and according to the ASU 2019-10, qualifies for bucket two, ASU 2016-13, ASU 2017-12 and ASU 2016-02 is effective for fiscal years beginning after December 15, 2022. ASU 2016-02, Leases (Topic 842) was adopted by the Company beginning April 1, 2019. The Company is currently evaluating the impact that ASU 2019-10 will have on its consolidated financial statements and related disclosures. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced an expected credit loss model for the impairment of financial assets measured at amortized cost basis. That model replaces the probable, incurred loss model for those assets. Through the amendments in that Update, the Board added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. The amendments apply to all reporting entities within the scope of the affected accounting guidance. ASU 2019-11 is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2021. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently evaluating the impacts of the provisions of ASU 2019-12 on its financial condition, results of operations, and cash flows. In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the Emerging Issues Task Force) (“ASU 2020-01”). The amendments in this Update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative of a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted. The Company is currently evaluating the impact that ASU 2020-01 may have on its consolidated financial statements and related disclosures. In February 2020, the FASB issued Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842). Generally, amendments included clarifications on SAB Topic 6.M, Financial Reporting Release No. 28 - Accounting for Loan Losses by Registrants Engaged in Lending Activities Subject to FASB ASC regarding measurement of current expected losses, development, governance and documentation of a systematic methodology, documentation of results of a systematic methodology and validation of a systematic methodology. In terms of amendments of Accounting Standards Update No. 2019-10, Financial Instruments-Credit Losses (Table of Contents link Topic 326), Derivatives and Hedging (Table of Contents link Topic 815), and Leases (Table of Contents link Topic 842), SEC staff announced that it would not object to a public business entity that otherwise would not meet the definition of a public business entity except for a requirement to include or the inclusion of its financial statements or financial information in another entity's filing with the SEC adopting Table of Contents link Topic 842 for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Those dates are consistent with the effective dates for Table of Contents link Topic 842 as amended in Update 2019-10. The Company is currently evaluating the impact these Updates may have on its consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2030-20 Codification Improvements to Financial Instruments, An Amendment of the FASB Accounting Standards Codification: a)in ASU No. 2016-01, b) in Subtopic 820-10, c) for depository and lending institutions clarification in disclosure requirements, d) in Subtopic 470-50, e) in Subtopic 820-10, f) Interaction of Topic 842 and Topic 326, g) Interaction of the guidance in Topic 326 and Subtopic 860-20.The amendments in this Update represent changes to clarify or improve the Codification. The amendments make the Codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. For public business entities updates under the following paragraphs: a), b), d) and e) are effective upon issuance of this final update. The effective date for c) is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect that the new guidance will significantly impact its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Goodwill | Amount Balance as of March 31, 2019 $ 2,936 Foreign currency translation (329 ) Balance as of March 31, 2020 $ 2,607 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and cash equivalents | March 31, 2020 March 31, 2019 Accounts with stock exchange $ 14,904 $ 10,507 Current account with commercial banks 14,462 6,656 Securities purchased under reverse repurchase agreements 9,645 7,887 Petty cash in bank vault and on hand 8,981 2,674 Current account in clearing organizations 6,590 5,887 Current accounts with brokers 4,051 10,220 Current account with Central Bank (Russia) 2,726 2,161 Current account with National Settlement Depository (Russia) 1,348 1,275 Current account with Central Depository (Kazakhstan) 501 2,693 Total cash and cash equivalents $ 63,208 $ 49,960 |
Securities purchased under agreement to resell | March 31, 2020 Interest rates and remaining contractual maturity of the agreements Average Interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Corporate equity 14.08 % $ 9,212 $ 15 $ 9,227 Corporate debt 14.25 % 108 - 108 Non-US sovereign debt 17.18 % 53 257 310 Total $ 9,373 $ 272 $ 9,645 March 31, 2019 Interest rates and remaining contractual maturity of the agreements Average Interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Corporate equity 11.90 % $ 4,328 $ 804 $ 5,132 Corporate debt 14.00 % 120 - 120 Non-US sovereign debt 8.25 % 2,635 - 2,635 Total $ 7,083 $ 804 $ 7,887 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Restricted Cash [Abstract] | |
Schedule of restricted cash | March 31, 2020 March 31, 2019 Brokerage customers’ cash $ 63,506 $ 28,931 Deferred distribution payments 2,097 8,534 Guaranty deposits 518 732 Reserve with Central Bank of Russia 476 263 Total restricted cash $ 66,597 $ 38,460 |
Trading and Available-For-Sal_2
Trading and Available-For-Sale Securities at Fair Value (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Schedule of trading securities | March 31, 2020 March 31, 2019 Debt securities $ 87,014 $ 62,691 Equity securities 69,530 105,017 Mutual investment funds - 241 Total trading securities $ 156,544 $ 167,949 Certificate of deposit $ 5,076 $ - Mutual investment funds 672 - Debt securities 405 - Preferred shares 284 - Equity securities 1 2 Total available-for-sale securities, at fair value $ 6,438 $ 2 |
Assets at fair value on a recurring basis | Fair Value Measurements at March 31, 2020 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant unobservable units March 31, 2020 (Level 1) (Level 2) (Level 3) Debt securities $ 87,014 $ 87,014 $ - $ - Equity securities 69,530 58,271 - 11,259 Total trading securities $ 156,544 $ 145,285 $ - $ 11,259 Equity securities $ 1 $ - $ - $ 1 Debt securities 405 - 405 - Certificate of deposit 5,076 - 5,076 - Mutual investment funds 672 672 - - Preferred shares 284 - 284 - Total available-for-sale securities, at fair value $ 6,438 $ 672 $ 5,765 $ 1 Fair Value Measurements at March 31, 2019 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant unobservable units March 31, 2019 (Level 1) (Level 2) (Level 3) Equity securities $ 105,017 $ 105,017 $ - $ - Debt securities 62,691 62,187 - 504 Mutual investment funds 241 241 - - Total trading securities $ 167,949 $ 167,445 $ - $ 504 Equity securities $ 2 $ - $ - $ 2 Total available-for-sale securities, at fair value $ 2 $ - $ - $ 2 |
Level 3 inputs and valuation techniques | Type Valuation Technique FV as of March 31, 2020 FV as of March 31, 2019 Significant Unobservable Inputs % Corporate bonds DCF - $ 504 Discount rate 11.3% Equity securities DCF $11,259 - Discount rate 9.5% Estimated number of years 9 years |
Reconciliation of beginning and ending balances for investments using level 3 inputs | Trading securities Available-for-sale securities Balance as of March 31, 2019 $ 504 $ 2 Sale of investments that use Level 3 inputs (497 ) - Purchase of investments that use Level 3 inputs 10,430 - Revaluation of investments that use Level 3 inputs 829 - Foreign currency translation (7 ) - Balance as of March 31, 2020 $ 11,259 $ 2 |
Available for sale securities | March 31, 2020 Assets measured at amortized cost Unrealized loss accumulated in other comprehensive income/(loss) Assets measured at fair value Certificate of deposit $ 5,050 $ 26 $ 5,076 Mutual investment funds 696 (24 ) 672 Debt securities 456 (51 ) 405 Preferred shares 306 (22 ) 284 Equity securities 1 - 1 Balance as of March 31, 2020 $ 6,509 $ (71) $ 6,438 March 31, 2019 Assets measured at amortized cost Unrealized loss accumulated in other comprehensive income/(loss) Assets measured at fair value Equity securities $ 1 $ 1 $ 2 Balance as of March 31, 2019 $ 1 $ 1 $ 2 |
Brokerage and Other Receivabl_2
Brokerage and Other Receivables, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Brokerage and other receivables | March 31, 2020 March 31, 2019 Marginal lending receivables $ 107,770 $ 46,716 Receivables from brokerage clients 4,396 824 Receivable from sale of securities 1,498 27,684 Bank commissions receivable 218 17 Receivable for underwriting and market-making services 67 88 Dividends accrued 1 108 Other receivables 50 25 Allowance for receivables (313 ) (1,626 ) Total brokerage and other receivables, net $ 113,687 $ 73,836 |
Loans Issued (Tables)
Loans Issued (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans issued | Loans issued as of March 31, 2020, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Subordinated loan $ 5,042 December, 2022-April, 2024 3.69 % — USD Uncollateralized non-bank loan 2,313 January, 2021 - February, 2021 3.00 % — USD Bank customer loans 1,635 July, 2020 - May, 2044 14.31 % 258 RUB Subordinated loan 1,333 September, 2029 7.00 % — UAH Uncollateralized non-bank loan 129 March, 2021 6.00 % — RUB Loans to key employees 9 December, 2020 4.50 % — EUR $ 10,461 Loans issued as of March 31, 2019, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Collateralized brokerage loans $ 1,888 December, 2019 4.75 % 4,718 USD Bank customer loans 637 May 2019 - Jan. 2039 13.34 % — RUB $ 2,525 |
Deferred Tax Assets (Tables)
Deferred Tax Assets (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Deferred Tax Assets, Net [Abstract] | |
Deferred tax assets and liabilities | March 31, 2020 March 31, 2019 Deferred tax assets: Tax losses carryforward $ 1,691 $ 2,376 Revaluation on trading securities 72 2,095 Accrued liabilities 7 35 Stock compensation expenses 4 - Valuation allowance (677 ) (3,241 ) Deferred tax assets $ 1,097 $ 1,265 Deferred tax liabilities: Revaluation on trading securities $ 513 $ - Other liabilities 14 - Deferred tax liabilities $ 527 $ - Net deferred tax assets $ 570 $ 1,265 |
Schedule of income tax expense/benefit | Year ended March 31, 2020 Year ended March 31, 2019 Profit before tax at 21% and 34% $ 5,908 $ 1,788 Global Intangible Low Taxed Income 4,803 573 Permanent differences 793 430 Stock based compensation 551 309 Valuation allowance 416 808 Nontaxable gains 401 (3,811 ) Other differences 20 418 Losses carried forward adjustment (154 ) 1,678 Provision for impairment losses (295 ) 386 Foreign tax rate differential (2,938 ) (1,211 ) Foreign tax credit (3,503 ) - Income tax provision $ 6,002 $ 1,368 |
Income tax expense | Year ended March 31, 2020 Year ended March 31, 2019 Current income tax charge $ 5,307 $ 1,817 Deferred income tax charge/(benefit) 695 (449 ) Income tax provision $ 6,002 $ 1,368 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | March 31, 2020 March 31, 2019 Office equipment $ 2,184 $ 1,452 Capital expenditures on leasehold improvements 1,968 1,724 Furniture 1,865 1,713 Processing and storage data centers 960 679 Land 778 394 Vehicles 378 353 Other 476 457 Less: Accumulated depreciation (2,225 ) (1,209 ) Total fixed assets $ 6,384 $ 5,563 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of intangible assets | March 31, 2020 March 31, 2019 Trading platform $ 2,542 $ 3,052 Client base 2,185 2,502 Other intangible assets 1,838 1,062 Less: Accumulated amortization (3,143 ) (2,390 ) Total intangible assets $ 3,422 $ 4,226 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Other Assets [Abstract] | |
Schedule of other assets | March 31, 2020 March 31, 2019 Advances paid $ 5,830 $ 1,851 Rent guarantee deposit 1,355 714 Current income tax asset 851 502 Outstanding settlement operations 310 429 Taxes other than income taxes 310 149 Guaranty deposit 67 69 Prepaid insurance 22 21 Other 338 516 Total other assets 9,083 4,251 Allowance for other assets (21 ) (62 ) Other assets, net $ 9,062 $ 4,189 |
Debt Securities Issued (Tables)
Debt Securities Issued (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Debt Securities [Abstract] | |
Debt securities issued | March 31, 2020 March 31, 2019 Debt securities issued denominated in USD $ 64,783 $ 20,265 Debt securities issued denominated in RUB 6,432 7,724 Accrued interest 1,081 549 Total $ 72,296 $ 28,538 |
Customer Liabilities (Tables)
Customer Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Contract with Customer, Liability [Abstract] | |
Customer liabilities | March 31, 2020 March 31, 2019 Brokerage customers $ 115,922 $ 47,686 Banking customers 52,510 34,346 Total $ 168,432 $ 82,032 |
Trade Payables (Tables)
Trade Payables (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | March 31, 2020 March 31, 2019 Margin lending payable $ 6,101 $ 29,081 Trade payable for securities purchased 1,860 2,939 Payables to suppliers of goods and services 202 555 Other 235 120 Total $ 8,398 $ 32,695 |
Securities Repurchase Agreeme_2
Securities Repurchase Agreement Obligation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Securities under repurchase agreement obligations | March 31, 2020 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Over 90 days Total Securities sold under repurchase agreements Corporate equity 12.16 % $ 20,711 $ - $ - $ 20,711 Corporate debt 13.27 % 15,974 - - 15,974 Non-US sovereign debt 13.00 % 11,519 - - 11,519 Total securities sold under repurchase agreements $ 48,204 $ - $ - $ 48,204 March 31, 2019 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Over 90 days Total Securities sold under repurchase agreements Corporate equity 12.06 % $ 49,048 $ - $ 2,146 $ 51,194 Corporate debt 10.38 % 13,548 - - 13,548 Non-US sovereign debt 8.62 % 8,879 - - 8,879 Total securities sold under repurchase agreements $ 71,475 $ - $ 2,146 $ 73,621 |
Loans Received (Tables)
Loans Received (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Loans Received | |
Schedule of loans received | Company Lender March 31, 2020 March 31, 2019 Interest rate Term Maturity dates Freedom Holding Corp. Non-Bank $ - $ 3,917 3 % 1-2 year 04/30/2019 - 12/31/2019 Freedom Finance Europe Limited Non-Bank - 91 1 % 2 year 12/11/2019 Total $ - $ 4,008 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Other Liabilities [Abstract] | |
Schedule of other liabilities | March 31, 2020 March 31, 2019 Salaries and other employee benefits $ 999 $ 1,307 Vacation reserve 933 942 Payable to suppliers 353 212 Outstanding settlements operations 307 314 Taxes payable other than income tax 38 127 Other 201 230 Total $ 2,831 $ 3,132 |
Fee and Commission Income_(Expe
Fee and Commission Income/(Expense) (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Fee And Commission Income | |
Schedule of fee and commission income/expense | Year ended March 31, 2020 Year ended March 31, 2019 Fee and commission income: Brokerage services $ 82,800 $ 36,810 Bank services 7,240 6,133 Underwriting services 2,360 861 Other commission income 268 512 Total fee and commission income $ 92,668 $ 44,316 Fee and commission expense: Brokerage services $ 18,673 $ 4,164 Bank services 1,299 919 Central Depository services 775 301 Exchange services 710 574 Other commission expense 479 280 Total fee and commission expense $ 21,936 $ 6,238 |
Net Gain on Trading Securities
Net Gain on Trading Securities (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Gain (Loss) on Investments [Abstract] | |
Schedule of net gains on trading securities | Year ended March 31, 2020 Year ended March 31, 2019 Net gain recognized during the period on trading securities sold during the period $ 22,770 $ 25,535 Net unrealized loss recognized during the reporting period on trading securities still held at the reporting date (7,847 ) (5,373 ) Net gain recognized during the period on trading securities $ 14,923 $ 20,162 |
Net Interest Income_(Expense) (
Net Interest Income/(Expense) (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Interest Income (Expense), Net [Abstract] | |
Schedule of interest income/expense | Year ended March 31, 2020 Year ended March 31, 2019 Interest income: Interest income on financial assets recorded at amortized cost comprises: Interest income on reverse repurchase agreements and amounts due from banks $ 1,586 $ 2,290 Interest income on loans to customers 572 264 Total interest income on financial assets recorded at amortized cost 2,158 2,554 Interest income on financial assets recorded at fair value through profit or loss comprises: Interest income on trading securities 9,976 11,371 Total interest income on financial assets recorded at fair value through profit or loss 9,976 11,371 Total interest income $ 12,134 $ 13,925 Year ended March 31, 2020 Year ended March 31, 2019 Interest expense: Interest expense on financial liabilities recorded at amortized cost comprises: Interest expense on securities repurchase agreement obligations $ 7,140 $ 11,113 Interest expense on debt securities issued 3,220 1,907 Interest expense on customer accounts and deposits 1,598 1,305 Interest expense on loans received 437 324 Other interest expense 4 - Total interest expense on financial liabilities recorded at amortized cost 12,399 14,649 Total interest expense $ 12,399 $ 14,649 |
Net Gain_(Loss) on Foreign Ex_2
Net Gain/(Loss) on Foreign Exchange Operations (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Net Gainloss On Foreign Exchange Operations | |
Schedule of net gain on foreign exchange operations | Year ended March 31, 2020 Year ended March 31, 2019 Sales and purchases of foreign currency, dealing $ 1,197 $ (3 ) Translation difference 1,118 (4,115 ) Total net gain/(loss) on foreign exchange operations $ 2,315 $ (4,118 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Assumptions used | Term (years) 3 Volatility 165.33 % Risk-free rate 1.66 % |
Stock option activity | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, March 31, 2019 350,000 $ 1.98 8.52 $ 2,342 Granted - - - - Exercised (230,000 ) 1.98 - 2,630 Forfeited/cancelled/expired - - - - Outstanding, at March 31, 2020 120,000 $ 1.98 7.52 1,466 Exercisable, at March 31, 2020 - $ - - $ - |
Restricted stock activity | Shares Weighted Average Fair Value Outstanding, March 31, 2019 2,275,000 $ 4,777 Granted - - Vested - - Forfeited/cancelled/expired - - Outstanding, at March 31, 2020 2,275,000 $ 4,777 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease related assets and liabilities | Classification on Balance Sheet March 31, 2020 Assets Operating lease assets Right-of-use assets $ 14,543 Total lease assets $ 14,543 Liabilities Operating lease liability Operating lease obligations $ 14,384 Total lease liability $ 14,384 |
Summary of lease obligations | Twelve months ending March 31, 2021 $ 5,966 2022 5,562 2023 4,371 2024 949 2025 219 Total payments 17,067 Less: amounts representing interest (2,683 ) Lease obligation, net 14,384 Weighted average remaining lease term (in months) 29 Weighted average discount rate 12 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | ||
Goodwill, beginning | $ 2,936 | $ 3,288 |
Foreign currency translation | (329) | (352) |
Goodwill, ending | $ 2,607 | $ 2,936 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Accounting Policies [Abstract] | |||
Goodwill | $ 2,607 | $ 2,936 | $ 3,288 |
Advertising expense | $ 5,635 | $ 4,500 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Total cash and cash equivalents | $ 63,208 | $ 49,960 | $ 65,731 |
Accounts with stock exchange | |||
Total cash and cash equivalents | 14,904 | 10,507 | |
Current account with commercial banks | |||
Total cash and cash equivalents | 14,462 | 6,656 | |
Securities purchased under reverse repurchase agreements | |||
Total cash and cash equivalents | 9,645 | 7,887 | |
Petty cash in bank vault and on hand | |||
Total cash and cash equivalents | 8,981 | 2,674 | |
Current account in clearing organizations | |||
Total cash and cash equivalents | 6,590 | 5,887 | |
Current accounts with brokers | |||
Total cash and cash equivalents | 4,051 | 10,220 | |
Current account with Central Bank (Russia) | |||
Total cash and cash equivalents | 2,726 | 2,161 | |
Current account with National Settlement Depository (Russia) | |||
Total cash and cash equivalents | 1,348 | 1,275 | |
Current account with Central Depository (Kazakhstan) | |||
Total cash and cash equivalents | $ 501 | $ 2,693 |
Cash and Cash Equivalents (De_2
Cash and Cash Equivalents (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Remaining contractual maturity: up to 30 days | $ 9,373 | $ 7,083 |
Remaining contractual maturity: 30 - 90 days | 272 | 804 |
Total contractual maturity | $ 9,645 | $ 7,887 |
Corporate equity | ||
Average interest rate | 14.08% | 11.90% |
Remaining contractual maturity: up to 30 days | $ 9,212 | $ 4,328 |
Remaining contractual maturity: 30 - 90 days | 15 | 804 |
Total contractual maturity | $ 9,227 | $ 5,132 |
Corporate debt | ||
Average interest rate | 14.25% | 14.00% |
Remaining contractual maturity: up to 30 days | $ 108 | $ 120 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Total contractual maturity | $ 108 | $ 120 |
Non-US sovereign debt | ||
Average interest rate | 17.18% | 8.25% |
Remaining contractual maturity: up to 30 days | $ 53 | $ 2,635 |
Remaining contractual maturity: 30 - 90 days | 257 | 0 |
Total contractual maturity | $ 310 | $ 2,635 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Restricted cash | $ 66,597 | $ 38,460 | $ 21,962 |
Brokerage customers' cash | |||
Restricted cash | 63,506 | 28,931 | |
Deferred distribution payments | |||
Restricted cash | 2,097 | 8,534 | |
Guaranty deposits | |||
Restricted cash | 518 | 732 | |
Reserve with Central Bank of Russia | |||
Restricted cash | $ 476 | $ 263 |
Trading and Available-For-Sal_3
Trading and Available-For-Sale Securities at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Trading securities | $ 156,544 | $ 167,949 |
Available-for-sale securities, at fair value | 6,438 | 2 |
Debt securities | ||
Trading securities | 87,014 | 62,691 |
Available-for-sale securities, at fair value | 405 | 0 |
Equity securities | ||
Trading securities | 69,530 | 105,017 |
Available-for-sale securities, at fair value | 1 | 2 |
Mutual investment funds | ||
Trading securities | 0 | 241 |
Available-for-sale securities, at fair value | 672 | 0 |
Certificates of Deposit | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 5,076 | 0 |
Preferred Shares | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | $ 284 | $ 0 |
Trading and Available-For-Sal_4
Trading and Available-For-Sale Securities at Fair Value (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Trading securities | $ 156,544 | $ 167,949 |
Available-for-sale securities, at fair value | 6,438 | 2 |
Level 1 | ||
Trading securities | 145,285 | 167,445 |
Available-for-sale securities, at fair value | 672 | 0 |
Level 2 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 5,765 | 0 |
Level 3 | ||
Trading securities | 11,259 | 504 |
Available-for-sale securities, at fair value | 1 | 2 |
Debt securities | ||
Trading securities | 87,014 | 62,691 |
Available-for-sale securities, at fair value | 405 | 0 |
Debt securities | Level 1 | ||
Trading securities | 87,014 | 62,187 |
Available-for-sale securities, at fair value | 0 | 0 |
Debt securities | Level 2 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 405 | 0 |
Debt securities | Level 3 | ||
Trading securities | 0 | 504 |
Available-for-sale securities, at fair value | 0 | 0 |
Equity securities | ||
Trading securities | 69,530 | 105,017 |
Available-for-sale securities, at fair value | 1 | 2 |
Equity securities | Level 1 | ||
Trading securities | 58,271 | 105,017 |
Available-for-sale securities, at fair value | 0 | 0 |
Equity securities | Level 2 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 |
Equity securities | Level 3 | ||
Trading securities | 11,259 | 0 |
Available-for-sale securities, at fair value | 1 | 2 |
Mutual investment funds | ||
Trading securities | 0 | 241 |
Available-for-sale securities, at fair value | 672 | 0 |
Mutual investment funds | Level 1 | ||
Trading securities | 0 | 241 |
Available-for-sale securities, at fair value | 672 | 0 |
Mutual investment funds | Level 2 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 |
Mutual investment funds | Level 3 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 |
Certificates of Deposit | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 5,076 | 0 |
Certificates of Deposit | Level 1 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 |
Certificates of Deposit | Level 2 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 5,076 | 0 |
Certificates of Deposit | Level 3 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 |
Preferred Shares | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 284 | 0 |
Preferred Shares | Level 1 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 0 | 0 |
Preferred Shares | Level 2 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | 284 | 0 |
Preferred Shares | Level 3 | ||
Trading securities | 0 | 0 |
Available-for-sale securities, at fair value | $ 0 | $ 0 |
Trading And Available-For-Sal_5
Trading And Available-For-Sale Securities At Fair Value (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Corporate debt | ||
Valuation Technique | DCF | |
Fair Value | $ 0 | $ 504 |
Significant Unobservable Inputs | Discount rate | |
Discount Rate | 11.30% | |
Equity securities | ||
Valuation Technique | DCF | |
Fair Value | $ 11,259 | $ 0 |
Significant Unobservable Inputs | Discount rate | |
Discount Rate | 9.50% | |
Estimated number of years | 9 years |
Trading and Available-For-Sal_6
Trading and Available-For-Sale Securities at Fair Value (Details 3) $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($) | |
Trading securities, beginning | $ 167,949 |
Trading securities, ending | 156,544 |
Available for sale securities, beginning | 2 |
Available for sale securities, ending | 6,438 |
Level 3 | |
Trading securities, beginning | 504 |
Sale of investments that use Level 3 inputs | (497) |
Purchase of investments that use Level 3 inputs | 10,430 |
Revaluation of investments that use Level 3 inputs | 829 |
Foreign currency translation | (7) |
Trading securities, ending | 11,259 |
Available for sale securities, beginning | 2 |
Sale of investments that use Level 3 inputs | 0 |
Purchase of investments that use Level 3 inputs | 0 |
Revaluation of investments that use Level 3 inputs | 0 |
Foreign currency translation | 0 |
Available for sale securities, ending | $ 1 |
Trading and Available-For-Sal_7
Trading and Available-For-Sale Securities at Fair Value (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Assets measured at amortized cost | $ 6,509 | $ 1 |
Unrealized gain accumulated in other comprehensive income | (71) | 1 |
Assets measured at fair value | 6,438 | 2 |
Certificates of Deposit | ||
Assets measured at amortized cost | 5,050 | |
Unrealized gain accumulated in other comprehensive income | 26 | |
Assets measured at fair value | 5,076 | 0 |
Mutual Funds | ||
Assets measured at amortized cost | 696 | |
Unrealized gain accumulated in other comprehensive income | (24) | |
Assets measured at fair value | 672 | |
Debt securities | ||
Assets measured at amortized cost | 456 | |
Unrealized gain accumulated in other comprehensive income | (51) | |
Assets measured at fair value | 405 | 0 |
Preferred Shares | ||
Assets measured at amortized cost | 306 | |
Unrealized gain accumulated in other comprehensive income | (22) | |
Assets measured at fair value | 284 | 0 |
Equity securities | ||
Assets measured at amortized cost | 1 | 1 |
Unrealized gain accumulated in other comprehensive income | 0 | 1 |
Assets measured at fair value | $ 1 | $ 2 |
Brokerage and Other Receivabl_3
Brokerage and Other Receivables, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Brokerage and other receivables, net | $ 113,687 | $ 73,836 |
Margin lending receivables | ||
Brokerage and other receivables, net | 107,770 | 46,716 |
Receivables from brokerage clients | ||
Brokerage and other receivables, net | 4,396 | 824 |
Receivable from purchase or sale of securities | ||
Brokerage and other receivables, net | 1,498 | 27,684 |
Bank commissions receivable | ||
Brokerage and other receivables, net | 218 | 17 |
Receivable for underwriting market-making services | ||
Brokerage and other receivables, net | 67 | 88 |
Dividends accrued | ||
Brokerage and other receivables, net | 1 | 108 |
Other receivables | ||
Brokerage and other receivables, net | 50 | 25 |
Allowance for receivables | ||
Brokerage and other receivables, net | $ (313) | $ (1,626) |
Loans Issued (Details)
Loans Issued (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Loans issued | $ 10,461 | $ 2,525 |
Subordinated loan | ||
Loans issued | $ 5,042 | 0 |
Due dates | December, 2022 - April, 2024 | |
Weighted average interest rate | 3.69% | |
Fair value of collateral | $ 0 | 0 |
Uncollateralized non-bank loan | ||
Loans issued | $ 2,313 | 0 |
Due dates | January, 2021 - February, 2021 | |
Weighted average interest rate | 3.00% | |
Fair value of collateral | $ 0 | 0 |
Bank customer loans | ||
Loans issued | $ 1,635 | $ 637 |
Due dates | July, 2020 - May, 2044 | May 2019 - Jan. 2039 |
Weighted average interest rate | 14.31% | 13.34% |
Fair value of collateral | $ 258 | $ 0 |
Subordinated loan | ||
Loans issued | $ 1,333 | |
Due dates | September, 2029 | |
Weighted average interest rate | 7.00% | |
Fair value of collateral | $ 0 | 0 |
Uncollateralized non-bank loan | ||
Loans issued | $ 129 | 0 |
Due dates | March, 2021 | |
Weighted average interest rate | 6.00% | |
Fair value of collateral | $ 0 | |
Loans to key employees | ||
Loans issued | $ 9 | 0 |
Due dates | December, 2020 | |
Weighted average interest rate | 4.50% | |
Fair value of collateral | $ 0 | 0 |
Collateralized brokerage loans | ||
Loans issued | 0 | $ 1,888 |
Due dates | Dec. 2019 | |
Weighted average interest rate | 4.75% | |
Fair value of collateral | $ 0 | $ 4,718 |
Deferred Tax Assets (Details)
Deferred Tax Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Deferred tax asset: | ||
Tax losses carryforward | $ 1,691 | $ 2,376 |
Revaluation on trading securities | 72 | 2,095 |
Accrued liabilities | 7 | 35 |
Stock compensation expenses | 4 | 0 |
Valuation allowance | (677) | (3,241) |
Deferred tax assets | 1,097 | 1,265 |
Deferred tax liabilities: | ||
Revaluation on trading securities | 513 | 0 |
Other liabilities | 14 | 0 |
Deferred tax liabilities | 527 | 0 |
Net deferred tax assets | $ 570 | $ 1,265 |
Deferred Tax Assets (Details 1)
Deferred Tax Assets (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Deferred Tax Assets, Net [Abstract] | ||
Profit before tax at 21% and 34% | $ 5,908 | $ 1,788 |
Global Intangible Low Taxed Income | 4,803 | 573 |
Permanent differences | 793 | 430 |
Stock based compensation | 551 | 309 |
Valuation allowance | 416 | 808 |
Nontaxable gains | 401 | (3,811) |
Other differences | 20 | 418 |
Losses carried forward adjustment | (154) | 1,678 |
Provision for impairment losses | (295) | 386 |
Foreign tax rate differential | (2,938) | (1,211) |
Foreign tax credit | (3,503) | 0 |
Income tax provision | $ 6,002 | $ 1,368 |
Deferred Tax Assets (Details 2)
Deferred Tax Assets (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Deferred Tax Assets, Net [Abstract] | ||
Current income tax charge | $ 5,307 | $ 1,817 |
Deferred income tax charge/(benefit) | 695 | (449) |
Income tax provision | $ 6,002 | $ 1,368 |
Deferred Tax Assets (Details Na
Deferred Tax Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
NET INCOME BEFORE INCOME TAX | $ 28,132 | $ 8,515 |
United States | ||
Income tax rates used for deferred tax assets and liabilities | 21.00% | 21.00% |
Russian Federation | ||
Income tax rates used for deferred tax assets and liabilities | 20.00% | 20.00% |
Germany | ||
Income tax rates used for deferred tax assets and liabilities | 31.00% | 31.00% |
Cyprus | ||
Income tax rates used for deferred tax assets and liabilities | 12.50% | 12.50% |
Ukraine | ||
Income tax rates used for deferred tax assets and liabilities | 18.00% | 18.00% |
Uzbekistan | ||
Income tax rates used for deferred tax assets and liabilities | 12.00% | 12.00% |
Kazakhstan | ||
Income tax rates used for deferred tax assets and liabilities | 20.00% | 20.00% |
Kyrgyzstan | ||
Income tax rates used for deferred tax assets and liabilities | 20.00% | 20.00% |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Less: Accumulated depreciation and amortization | $ (2,225) | $ (1,209) |
Fixed assets, net | 6,384 | 5,563 |
Office equipment | ||
Fixed assets, gross | 2,184 | 1,452 |
Capital expenditures on lease improvement | ||
Fixed assets, gross | 1,968 | 1,724 |
Furniture | ||
Fixed assets, gross | 1,865 | 1,713 |
Processing and storage data centers | ||
Fixed assets, gross | 960 | 679 |
Land | ||
Fixed assets, gross | 778 | 394 |
Vehicles | ||
Fixed assets, gross | 378 | 353 |
Other | ||
Fixed assets, gross | $ 476 | 457 |
Buildings | ||
Fixed assets, gross | $ 0 |
Fixed Assets, Net (Details Narr
Fixed Assets, Net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 1,407 | $ 790 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Less: Accumulated amortization | $ (3,143) | $ (2,390) |
Intangible assets, net | 3,422 | 4,226 |
Trading platform | ||
Intangible assets, gross | 2,542 | 3,052 |
Client base | ||
Intangible assets, gross | 2,185 | 2,502 |
Other intangible assets | ||
Intangible assets, gross | $ 1,838 | $ 1,062 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Amortization expense | $ 1,251 | $ 1,244 |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Other assets, gross | $ 9,083 | $ 4,251 |
Allowance for other assets | (21) | (62) |
Other assets, net | 9,062 | 4,189 |
Advances paid | ||
Other assets, gross | 5,830 | 1,851 |
Rent guarantee deposit | ||
Other assets, gross | 1,355 | 714 |
Current income tax asset | ||
Other assets, gross | 851 | 502 |
Outstanding settlement operations | ||
Other assets, gross | 310 | 429 |
Taxes other than income taxes | ||
Other assets, gross | 310 | 149 |
Guaranty deposit | ||
Other assets, gross | 67 | 69 |
Prepaid Insurance | ||
Other assets, gross | 22 | 21 |
Other | ||
Other assets, gross | $ 338 | $ 516 |
Debt Securities Issued (Details
Debt Securities Issued (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Debt Securities [Abstract] | ||
Debt securities issued denominated in USD | $ 64,783 | $ 20,265 |
Debt securities issued denominated in RUB | 6,432 | 7,724 |
Accrued interest | 1,081 | 549 |
Total | $ 72,296 | $ 28,538 |
Customer Liabilities (Details)
Customer Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Customer liabilities | $ 168,432 | $ 82,032 |
Brokerage customers | ||
Customer liabilities | 115,922 | 47,686 |
Banking customers | ||
Customer liabilities | $ 52,510 | $ 34,346 |
Trade Payables (Details)
Trade Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Trade payables | $ 8,398 | $ 32,695 |
Margin lending payable | ||
Trade payables | 6,101 | 29,081 |
Trade payable for securities purchased | ||
Trade payables | 1,860 | 2,939 |
Payables to suppliers of goods and services | ||
Trade payables | 202 | 555 |
Other | ||
Trade payables | $ 235 | $ 120 |
Securities Repurchase Agreeme_3
Securities Repurchase Agreement Obligation (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Remaining contractual maturity: up to 30 days | $ 48,204 | $ 71,475 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 2,146 |
Total contractual maturity | $ 48,204 | $ 73,621 |
Corporate equity | ||
Average interest rate | 12.16% | 12.06% |
Remaining contractual maturity: up to 30 days | $ 20,711 | $ 49,048 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 2,146 |
Total contractual maturity | $ 20,711 | $ 51,194 |
Corporate debt | ||
Average interest rate | 13.27% | 10.38% |
Remaining contractual maturity: up to 30 days | $ 15,974 | $ 13,548 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total contractual maturity | $ 15,974 | $ 13,548 |
Non-US sovereign debt | ||
Average interest rate | 13.00% | 8.62% |
Remaining contractual maturity: up to 30 days | $ 11,519 | $ 8,879 |
Remaining contractual maturity: 30 - 90 days | 0 | 0 |
Remaining contractual maturity: Over 90 days | 0 | 0 |
Total contractual maturity | $ 11,519 | $ 8,879 |
Loans Received (Details)
Loans Received (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2020 | |
Loans received | $ 4,008 | $ 0 |
Freedom Holding Corp. | ||
Lender | Non-bank | |
Loans received | $ 3,917 | $ 0 |
Interest rate | 3.00% | |
Freedom Holding Corp. | Minimum | ||
Term | 1 year | |
Maturity date | Apr. 30, 2019 | |
Freedom Holding Corp. | Maximum | ||
Term | 2 years | |
Maturity date | Dec. 31, 2019 | |
Freedom Finance Europe Limited | ||
Loans received | $ 91 | |
Interest rate | 1.00% | |
Term | 2 years | |
Maturity date | Dec. 11, 2019 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Other liabilities | $ 2,831 | $ 3,132 |
Salaries and other employee benefits | ||
Other liabilities | 999 | 1,307 |
Vacation reserve | ||
Other liabilities | 933 | 942 |
Payable to suppliers | ||
Other liabilities | 353 | 212 |
Outstanding settlements operations | ||
Other liabilities | 307 | 314 |
Taxes payable other than income tax | ||
Other liabilities | 38 | 127 |
Other | ||
Other liabilities | $ 201 | $ 230 |
Fee and Commission Income_(Ex_2
Fee and Commission Income/(Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fee and commission income | $ 92,668 | $ 44,316 |
Fee and commission expense | 21,936 | 6,238 |
Brokerage services | ||
Fee and commission income | 82,800 | 36,810 |
Fee and commission expense | 18,673 | 4,164 |
Bank services | ||
Fee and commission income | 7,240 | 6,133 |
Fee and commission expense | 1,299 | 919 |
Underwriting services | ||
Fee and commission income | 2,360 | 861 |
Fee and commission expense | 0 | 0 |
Other commission income | ||
Fee and commission income | 268 | 512 |
Fee and commission expense | 479 | 280 |
Central Depository services | ||
Fee and commission income | 0 | 0 |
Fee and commission expense | 775 | 301 |
Exchange services | ||
Fee and commission income | 0 | 0 |
Fee and commission expense | $ 710 | $ 574 |
Net Gain on Trading Securitie_2
Net Gain on Trading Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gain (Loss) on Investments [Abstract] | ||
Net gain recognized during the period on trading securities sold during the period | $ 22,770 | $ 25,535 |
Net unrealized gain/loss recognized during the reporting period on trading securities still held at the reporting date | (7,847) | (5,373) |
Net gain recognized during the period on trading securities | $ 14,923 | $ 20,162 |
Net Interest Income_(Expense)_2
Net Interest Income/(Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | $ 12,134 | $ 13,925 |
Interest expense | 12,399 | 14,649 |
Net interest expense | 12,399 | 14,649 |
Amortized cost | ||
Interest income | 2,158 | 2,554 |
Interest expense | 12,399 | 14,649 |
Amortized cost | Reverse repurchase agreements and amounts due from banks | ||
Interest income | 1,586 | 2,290 |
Amortized cost | Loans to customers | ||
Interest income | 572 | 264 |
Amortized cost | Securities repurchase agreements | ||
Interest expense | 7,140 | 11,113 |
Amortized cost | Debt securities issued | ||
Interest expense | 3,220 | 1,907 |
Amortized cost | Customer accounts and deposits | ||
Interest expense | 1,598 | 1,305 |
Amortized cost | Loans received | ||
Interest expense | 437 | 324 |
Amortized cost | Other | ||
Interest expense | 4 | 0 |
Fair value through profit or loss | ||
Interest income | 9,976 | 11,371 |
Fair value through profit or loss | Trading securities | ||
Interest income | $ 9,976 | $ 11,371 |
Net Gain_(Loss) on Foreign Ex_3
Net Gain/(Loss) on Foreign Exchange Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Gainloss On Foreign Exchange Operations | ||
Sales and purchases of foreign currency, dealing | $ 1,197 | $ (3) |
Translation difference | 1,118 | (4,115) |
Total net gain/(loss) on foreign exchange operations | $ 2,315 | $ (4,118) |
Stock Based Compensation (Detai
Stock Based Compensation (Details) | 12 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Term (years) | 3 years |
Volatility | 165.33% |
Risk-free rate | 1.66% |
Stock Based Compensation (Det_2
Stock Based Compensation (Details 1) $ / shares in Units, $ in Thousands | 12 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Number of options outstanding, beginning | shares | 350,000 |
Number of options granted | shares | 0 |
Number of options exercised | shares | (230,000) |
Number of options forfeited/cancelled/expired | shares | 0 |
Number of options outstanding, ending | shares | 120,000 |
Number of options exercisable | shares | 0 |
Weighted average exercise price outstanding, beginning | $ 1.98 |
Weighted average exercise price granted | 0 |
Weighted average exercise price exercised | 1.98 |
Weighted average exercise price forfeited/cancelled/expired | 0 |
Weighted average exercise price outstanding, ending | 1.98 |
Weighted average exercise price exercisable | $ 0 |
Weighted average remaining contractual term outstanding, beginning | 8 years 6 months 7 days |
Weighted average remaining contractual term outstanding, ending | 7 years 6 months 7 days |
Aggregate intrinsic value outstanding, beginning | $ | $ 2,342 |
Aggregate intrinsic value granted | $ 0 |
Aggregate intrinsic value exercised | $ | $ 2,630 |
Aggregate intrinsic value forfeited/cancelled/expired | $ 0 |
Aggregate intrinsic value outstanding, ending | $ | $ 1,466 |
Aggregate intrinsic value exercisable | $ | $ 0 |
Stock Based Compensation (Det_3
Stock Based Compensation (Details 2) | 12 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Restricted stock outstanding, beginning | shares | 2,275,000 |
Restricted stock granted | shares | 0 |
Restricted stock vested | shares | 0 |
Restricted stock forfeited/cancelled/expired | shares | 0 |
Number of restricted stock units outstanding, ending | shares | 2,275,000 |
Weighted average exercise price outstanding, beginning | $ / shares | $ 4,777 |
Weighted average exercise price granted | $ / shares | 0 |
Weighted average exercise price vested | $ / shares | 0 |
Weighted average exercise price forfeited/cancelled/expired | $ / shares | 0 |
Weighted average exercise price outstanding, ending | $ / shares | $ 4,777 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Leases [Abstract] | ||
Operating lease assets - Right-of-use assets | $ 14,543 | $ 0 |
Total lease assets | 14,543 | |
Operating lease liability | 14,384 | |
Total lease liability | $ 14,384 | $ 0 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Mar. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 5,966 | |
2022 | 5,562 | |
2023 | 4,371 | |
2024 | 949 | |
2025 | 219 | |
Total payments | 17,067 | |
Less: amounts representing interest | (2,683) | |
Lease obligation, net | $ 14,384 | $ 0 |
Weighted average remaining lease term (in months) | 29 months | |
Weighted average discount rate | 12.00% |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Rent expense | $ 1,147 | $ 4,819 |
Uncategorized Items - frhc-2020
Label | Element | Value |
Total cash, cash and cash equivalents and restricted cash shown in the statement of cash flows | us-gaap_CashCashEquivalentsAndShortTermInvestments | $ 87,693,000 |