SEGMENT REPORTING | SEGMENT REPORTING The Company historically organized its operations in a single operating segment. Following the divestiture of the Company's Russian subsidiaries and the related corporate restructuring, the Company elected to reorganize its operations geographically into regional segments. The Company currently organizes its operations into the following four regional segments: Central Asia and Eastern Europe, Europe Excluding Eastern Europe, the United States and Middle East/Caucasus. These operating segments are based on how the Company's CODM makes decisions about allocating resources and assessing performance. The following tables summarize the Company's Statement of Operations by its geographic segments. There are no revenues from transactions between the segments and intercompany balances have been eliminated for separate disclosure: Three months ended December 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 82,554 $ 32,585 $ 4,166 $ 854 $ 120,159 Net (loss)/ gain on trading securities (5,778) (85) 769 5 (5,089) Interest income 207,168 7,571 586 11,120 226,445 Insurance underwriting income 79,017 — — — 79,017 Net gain/(loss) on foreign exchange operations 39,031 (367) 76 85 38,825 Net loss on derivative (42,568) — — — (42,568) Other income/(expense) 1,910 (200) (11) 146 1,845 TOTAL REVENUE, NET 361,334 39,504 5,586 12,210 418,634 Fee and commission expense 37,393 5,040 329 56 42,818 Interest expense 127,861 3,168 138 56 131,223 Insurance claims incurred, net of reinsurance 40,989 — — — 40,989 Payroll and bonuses 31,101 9,154 3,365 1,463 45,083 Professional services 614 1,995 3,521 87 6,217 Stock compensation expense 701 82 256 — 1,039 Advertising expense 4,551 5,671 392 452 11,066 General and administrative expense 22,765 2,743 5,290 1,308 32,106 (Recovery)/allowance for expected credit losses (7,381) 3,893 (38) — (3,526) TOTAL EXPENSE 258,594 31,746 13,253 3,422 307,015 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 102,740 $ 7,758 $ (7,667) $ 8,788 $ 111,619 Income tax expense (244) (8,890) (6,262) (148) (15,544) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 102,496 $ (1,132) $ (13,929) $ 8,640 $ 96,075 Nine months ended December 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) 240,165 75,999 12,434 1,967 $ 330,565 Net gain on trading securities 76,894 350 68 186 77,498 Interest income 543,214 24,036 2,437 19,170 588,857 Insurance underwriting income 181,882 — — — 181,882 Net gain/(loss) on foreign exchange operations 54,962 (60) (696) 224 54,430 Net (loss)/gain on derivative (72,365) 570 — — (71,795) Other income 6,558 1,505 804 121 8,988 TOTAL REVENUE, NET 1,031,310 102,400 15,047 21,668 1,170,425 Fee and commission expense 87,568 14,523 877 148 103,116 Interest expense 346,393 17,326 1,857 74 365,650 Insurance claims incurred, net of reinsurance 96,491 — — — 96,491 Payroll and bonuses 85,489 18,253 10,404 2,565 116,711 Professional services 1,764 6,331 16,488 210 24,793 Stock compensation expense 2,230 255 818 — 3,303 Advertising expense 12,171 14,098 666 870 27,805 General and administrative expense 60,831 11,829 11,617 1,934 86,211 Allowance/(recovery) for expected credit losses 10,456 5,040 (34) — 15,462 TOTAL EXPENSE 703,393 87,655 42,693 5,801 839,542 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS 327,917 14,745 (27,646) 15,867 330,883 Income tax expense (432) (18,614) (31,665) (697) (51,408) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 327,485 $ (3,869) $ (59,311) $ 15,170 $ 279,475 Three months ended December 31, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 31,248 $ 48,486 $ 1,149 $ — $ 80,883 Net gain/(loss) on trading securities 28,080 819 (3,443) — 25,456 Interest income 66,324 11,417 2,500 14 80,255 Insurance underwriting income 28,557 — — — 28,557 Net gain/(loss) on foreign exchange operations 20,402 313 152 (1) 20,866 Net loss on derivative (21,469) — — — (21,469) Other (expense)/income (647) 74 — 3 (570) TOTAL REVENUE, NET 152,495 61,109 358 16 213,978 Fee and commission expense 10,110 7,933 255 16 18,314 Interest expense 43,880 4,590 3,567 — 52,037 Insurance claims incurred, net of reinsurance 17,418 1 — — 17,419 Payroll and bonuses 13,937 5,795 1,563 315 21,610 Professional services 859 2,483 2,385 174 5,901 Stock compensation expense — — 2,939 — 2,939 Advertising expense 2,255 1,356 110 9 3,730 General and administrative expense 11,443 3,190 1,658 137 16,428 Allowance for expected credit losses 12,767 11,363 10 — 24,140 TOTAL EXPENSE 112,669 36,711 12,487 651 162,518 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 39,826 $ 24,398 $ (12,129) $ (635) $ 51,460 Income tax expense (95) (4,557) (398) (19) (5,069) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 39,731 $ 19,841 $ (12,527) $ (654) $ 46,391 Nine months ended December 31, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 56,715 $ 193,439 $ 3,332 $ — $ 253,486 Net gain/(loss) on trading securities 65,497 (21,815) (4,788) — 38,894 Interest income 154,300 24,014 9,489 14 187,817 Insurance underwriting income 78,998 — — — 78,998 Net gain/(loss) on foreign exchange operations 32,270 (1,517) (747) 8 30,014 Net loss on derivative (22,523) — — — (22,523) Other (expense)/income (116) (31) 8 60 (79) TOTAL REVENUE, NET 365,141 194,090 7,294 82 566,607 Fee and commission expense 32,638 26,834 551 45 60,068 Interest expense 110,410 10,250 12,311 — 132,971 Insurance claims incurred, net of reinsurance 51,585 1 — — 51,586 Payroll and bonuses 37,967 11,357 5,146 782 55,252 Professional services 2,337 5,236 6,329 272 14,174 Stock compensation expense 2,137 291 4,091 — 6,519 Advertising expense 5,654 3,697 119 9 9,479 General and administrative expense 22,880 14,342 3,330 391 40,943 Allowance for expected credit losses 18,930 11,362 2 30,294 TOTAL EXPENSE 284,538 83,370 31,879 1,499 401,286 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 80,603 $ 110,720 $ (24,585) $ (1,417) $ 165,321 Income tax (expense)/benefit (691) (18,403) (7,475) 2 (26,567) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 79,912 $ 92,317 $ (32,060) $ (1,415) $ 138,754 (1) All trading of U.S. and European exchange traded and OTC securities by all Freedom securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at subsidiary received the initial order from external client. The following tables summarize the Company's total assets and total liabilities by its geographic segments. Intercompany balances have been eliminated for separate disclosure: December 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Total assets $ 6,419,659 $ 422,348 $ 87,842 $ 519,194 $ 7,449,043 Total liabilities 5,795,495 561,395 30,223 22,680 6,409,793 Net assets $ 624,164 $ (139,047) $ 57,619 $ 496,514 $ 1,039,250 March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Total assets $ 4,303,126 $ 677,425 $ 101,365 $ 2,642 $ 5,084,558 Total liabilities 3,868,326 384,921 60,198 377 4,313,822 Net assets $ 434,800 $ 292,504 $ 41,167 $ 2,265 $ 770,736 Central Asia and Eastern Europe Segment Operations in Kazakhstan, Kyrgyzstan, Uzbekistan, along with the Company's headquarters in Kazakhstan, form the Central Asia and Eastern Europe segment. Within this segment, the Group conducts business under different securities licenses as required by the respective jurisdictions in the Central Asia and Eastern Europe region. Group companies in the Central Asia and Eastern Europe segment provide comprehensive financial solutions, including lending such as digital auto loans and digital mortgage loans, payments, asset management products, bank guarantees, on demand and time deposits, various types of insurance coverage to meet the needs of the Group's customers and small businesses. The Group's insurance offerings include life insurance, obligatory insurance, tourist medical health insurance and auto insurance. These insurance products are designed to offer comprehensive coverage and tailored solutions to protect individuals, property, auto and businesses in the event of unforeseen events or risks. The Group also has several businesses in Kazakhstan which complement its core financial services businesses, including recently established telecommunications and media businesses that are in a developmental stage. Europe Excluding Eastern Europe Segmen t Operations in Cyprus, United Kingdom and Germany. Companies in the Europe Excluding Eastern Europe segment offer a broad suite of market-making, prime brokerage, lending, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. Companies in this segment cater to clients from the European Union by offering comprehensive solutions to support their investment needs. The Group's services in this segment encompass direct access to the world's largest stock exchanges, providing its clients with a gateway to global investment opportunities. Additionally, the Group's offerings in this segment include professional securities analytics, empowering clients with valuable insights and market intelligence to make informed investment decisions. To ensure a seamless experience, it provides user-friendly trading applications that offer convenience and flexibility. United States Segment Companies in the United States segment offer a full array of investment banking and capital markets advisory services, including initial public offerings, mergers, and acquisitions, debt and equity financing, corporate banking, trading, hedging, and research, equity research, delivering in-depth analysis, insights into individual stocks and sectors. It provides macro-economic strategy research to help clients navigate the broader economic landscape and make informed investment decisions. To ensure clients are well-informed, companies in this segment offer a daily morning note that covers key market updates, trends, and potential opportunities. It also provides technical research, focusing on chart patterns and technical indicators to assist clients in identifying potential entry and exit points in the market. In addition, companies in the United States segment conduct research in specific sectors such as energy and consumer, offering valuable insights into industry trends and company analysis. It facilitates corporate access research, enabling clients to gain access to top management and industry experts for a deeper understanding of specific companies or sectors. Middle East/Caucasus Segment Companies in the Middle East/Caucasus segment offer securities broker-dealer services, financials educational center services, financial intermediary center services and financial consulting services. The segment is currently in the developmental stage and does not generate profit at the moment. As a developing segment, the focus is on establishing a strong presence, building strategic relationships, and expanding client base in the region. As of December 31, 2023 , the Group has provided its brokerage clients with margin lending in Middle East/Caucasus segment in the total amount of $498,897. This margin lending balance was financed through the Europe, excluding Eastern Europe segment of the Group, and upon collection of this receivable, funds will be transferred to the European segment. |