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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from ________ to _________
Commission File Number 001-33034
FREEDOM HOLDING CORP.
(Exact name of registrant as specified in its charter)
Nevada30-0233726
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
“Esentai Tower” BC, Floor 7
77/7 Al Farabi Ave
Almaty, Kazakhstan
50040
(Address of principal executive offices)(Zip Code)
+7 727 311 10 64
(Registrant's telephone number, including area code)
Securities registered under Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareFRHC
The Nasdaq Capital Market
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x   No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x  No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerxAccelerated filer o
Non-accelerated fileroSmaller reporting company o
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)
Yes   No x
As of November 13, 2022, the registrant had 59,542,212 shares of common stock, par value $0.001, issued and outstanding.



FREEDOM HOLDING CORP.
FORM 10-Q
TABLE OF CONTENTS
Pages
Condensed Consolidated Balance Sheets as of September 30, 2022, and March 31, 2022
 


2




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
September 30, 2022
March 31, 2022*
(Recasted)
ASSETS
Cash and cash equivalents$790,390 $225,464 
Restricted cash440,030 547,950 
Trading securities1,359,544 1,158,377 
Available-for-sale securities, at fair value168,175 161,364 
Brokerage and other receivables, net408,169 147,659 
Loans issued357,357 92,446 
Fixed assets, net 36,857 17,823 
Intangible assets, net 7,687 5,163 
Goodwill 9,512 5,898 
Right-of-use asset 13,602 7,431 
Deferred income tax assets2,673 908 
Insurance contract assets12,712 5,712 
Other assets62,042 26,136 
Assets held for sale1,115,615 825,419 
TOTAL ASSETS$4,784,365 $3,227,750 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Securities repurchase agreement obligations$981,190 $840,224 
Customer liabilities1,567,458 765,628 
Trade payables 69,088 45,083 
Liabilities from insurance activity150,077 119,490 
Current income tax liability 19,046 14,556 
Securities sold, not yet purchased – at fair value7,376 13,865 
Loans received5,425 3,538 
Debt securities issued51,798 34,390 
Lease liability13,348 7,504 
Deferred distribution payments 8,534 8,534 
Other liabilities170,078 15,852 
Payable for acquisition29,736  
Liabilities held for sale1,089,880 812,478 
TOTAL LIABILITIES $4,163,034 $2,681,142 
Commitments and Contingent Liabilities (Note 26)  
SHAREHOLDERS’ EQUITY
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding
  
Common stock - $0.001 par value; 500,000,000 shares authorized; 59,542,212 shares issued and outstanding as of September 30, 2022, and March 31, 2022, respectively
59 59 
Additional paid in capital155,635 174,745 
Retained earnings529,251 441,924 
Accumulated other comprehensive loss(55,575)(63,125)
TOTAL FRHC SHAREHOLDERS’ EQUITY$629,370 $553,603 
Non-controlling interest(8,039)(6,995)
TOTAL SHAREHOLDERS’ EQUITY$621,331 $546,608 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$4,784,365 $3,227,750 
The accompanying notes are an integral part of these condensed consolidated financial statements
* Please see Note 3
3




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)`

Three Months Ended September 30,Six Months Ended September 30,
20222021*20222021*
(Recasted)(Recasted)
Revenue:
Fee and commission income$93,123 $95,215 $187,483 $174,431 
Net gain on trading securities9,005 181,603 13,439 190,285 
Net realized gain/(loss) on investments available for sale716 (622)123 (653)
Interest income49,033 24,429 92,682 45,566 
Insurance underwriting income26,200 16,022 50,440 30,098 
Net gain on foreign exchange operations4,555 1,508 9,148 2,716 
Net loss on derivative(2,320)(656)(1,054)(715)
TOTAL REVENUE, NET180,312 317,499 352,261 441,728 
Expense:
Fee and commission expense18,439 22,651 41,754 43,844 
Interest expense40,863 16,716 80,934 30,962 
Insurance claims incurred, net of reinsurance17,475 13,513 34,167 24,809 
Operating expense37,760 21,770 75,759 41,191 
Provision for impairment losses3,726 978 6,154 1,245 
Other expense/(income), net192 786 (368)795 
TOTAL EXPENSE118,455 76,414 238,400 142,846 
INCOME BEFORE INCOME TAX61,857 241,085 113,861 298,882 
Income tax expense(12,619)(32,094)(21,498)(37,220)
INCOME FROM CONTINUING OPERATIONS49,238 208,991 92,363 261,662 
Income/(loss) before income tax (expense)/benefit of discontinued operations (including loss on disposal of $41,464, see Note 25)
(18,302)(2,779)800 458 
Income tax (expense)/benefit of discontinued operations(3,724)529 (6,880)(9)
Income/(loss) from discontinued operations(22,026)(2,250)(6,080)449 
NET INCOME27,212 206,741 86,283 262,111 
Less: Net income/(loss) attributable to non-controlling interest in subsidiary950 (20)(1,044)(72)
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$26,262 $206,761 $87,327 $262,183 
OTHER COMPREHENSIVE INCOME
Change in unrealized gain on investments available-for-sale, net of tax effect1,477 (1,601)2,343 (726)
Reclassification adjustment for net realized gain on available-for-sale investments disposed of in the period, net of tax effect(716)622 (123)653 
Foreign currency translation adjustments, net of tax effect(16,663)1,181 5,316 4,203 

4




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)`

OTHER COMPREHENSIVE (LOSS)/ INCOME(15,902)202 7,536 4,130 
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS$11,310 $206,943 $93,819 $266,241 
Less: Comprehensive income/(loss) attributable to non-controlling interest in subsidiary950 (20)(1,043)(72)
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS$10,360 $206,963 $94,862 $266,313 
EARNINGS PER COMMON SHARE (In U.S. dollars):
Earnings from continuing operations per common share - basic0.82 3.51 1.59 4.42 
Earnings from continuing operations per common share - diluted0.81 3.51 1.57 4.42 
(Loss)/earnings from discontinued operations per common share - basic(0.38)(0.04)(0.10)0.01 
(Loss)/earnings from discontinued operations per common share - diluted(0.37)(0.04)(0.10)0.01 
Earnings per common share - basic0.45 3.47 1.49 4.43 
Earnings per common share - diluted0.44 3.47 1.46 4.43 
Weighted average number of shares (basic)58,665,415 59,510,976 58,624,513 59,220,800 
Weighted average number of shares (diluted)59,518,473 59,510,976 59,678,513 59,220,800 

The accompanying notes are an integral part of these condensed consolidated financial statements.
5




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)

For the Six Months Ended September 30,
20222021*
(Restated)
Cash Flows From Operating Activities
Net income$86,283 $262,111 
Net (loss)/income from discontinued operations$(6,080)$449 
Net income from continued operations$92,363 $261,662 
Adjustments to reconcile net income used in operating activities:
Depreciation and amortization1,817 1,915 
Noncash lease expense2,047 1,568 
Change in deferred taxes(1,763)2,431 
Stock compensation expense3,581 3,365 
Unrealized loss/(gain) on trading securities8,232 (41,966)
Net change in accrued interest(20,855)(21,137)
Change in insurance reserves30,627 25,138 
Allowances for receivables6,154 1,245 
Changes in operating assets and liabilities:
Trading securities(223,540)(181,734)
Brokerage and other receivables(263,107)(189,970)
Insurance contract assets706 443 
Other assets(33,322)(4,316)
Securities sold, not yet purchased – at fair value(6,489)6,719 
Customer liabilities329,496 110,815 
Current income tax liability4,537 19,684 
Trade payables20,490 26,575 
Lease liabilities(2,453)(1,654)
Liabilities from insurance activity(8,032)(5,355)
Other liabilities154,111 (186)
Net cash flows from operating activities from continuing operations94,600 15,242 
Net cash flows from operating activities from discontinued operations29,583 5,605 
Net cash flows from operating activities124,183 20,847 
Cash Flows Used In Investing Activities
Purchase of fixed assets(17,295)(2,776)
Proceeds from sale of fixed assets36 167 
Loans purchased from microfinance organization(74,796)(19,677)
Loans sold to microfinance organization19,545 2,860 
Loans issued(228,570)(5,726)
Purchase of available-for-sale securities, at fair value(167,450)(147,479)
Proceeds from sale of available-for-sale securities, at fair value157,420 106,850 
Consideration paid for acquisition of London Almaty(16,343) 
Prepayment on acquisition4,954  
Cash, cash equivalents and restricted cash received from acquisitions11,385  
Net cash flows used in investing activities from continuing operations(311,114)(65,781)
6




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
Net cash flows used in investing activities from discontinued operations(12,073)(471)
Net cash flows used in investing activities(323,187)(66,252)
Cash Flows From Financing Activities
Proceeds from securities repurchase agreement obligations168,565 172,234 
Proceeds from issuance of debt securities17,240  
Repurchase of debt securities (10,134)
Net change in bank customer deposits513,546 17,497 
Capital contributions677 1,966 
Exercise of options 119 
Proceeds from loans received1,863 69 
Net cash flows from financing activities from continuing operations701,891 181,751 
Net cash flows from/(used in) financing activities from discontinued operations44,203 (28,884)
Net cash flows from financing activities746,094 152,867 
Effect of changes in foreign exchange rates on cash and cash equivalents from continued operations(28,371)250 
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations212,557 23,276 
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH731,276 130,988 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM CONTINUED OPERATIONS773,414 659,498 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM DISCONTINUED OPERATIONS456,886 558,890 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD1,230,300 1,218,388 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM CONTINUED OPERATIONS$1,230,420 $744,465 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM DISCONTINUED OPERATIONS$731,156 $604,911 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD$1,961,576 $1,349,376 

For The Six Months Ended September 30,
2022
September 30, 2021*
(Restated)
Supplemental disclosure of cash flow information:
Cash paid for interest$39,032 $15,275 
Income tax paid$18,803 $20,107 
Supplemental non-cash disclosures:
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net$5,706 $2,424 


* Please see Note 4
7




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows:
September 30, 2022
September 30, 2021
(Restated)
Cash and cash equivalents$790,390 $184,523 
Restricted cash440,030 559,942 
Total cash, cash equivalents and restricted cash shown as in the statement of cash flows$1,230,420 $744,465 
The accompanying notes are an integral part of these condensed consolidated financial statements.
8




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)
(All amounts in thousands of United States dollars, except share data, unless otherwise stated)
Common StockAdditional
paid
in capital
Retained
earnings
Accumulated
other
comprehensive
(loss)/income
Non-
controlling
interest
Total
SharesAmount
Balance As At June 30, 202259,542,212 $59 $152,532 $502,989 $(39,673)$(8,989)$606,918 
Stock based compensation— — 3,103 — — — 3,103 
Sale of Freedom Finance Ukraine LLC shares— — — — — — — 
Contribution of shareholder— — — — — — — 
Acquisition of insurance companies— — — — — — — 
Other comprehensive income— — — — 761 — 761 
Translation difference— — — — (16,663)— (16,663)
Net income— — — 26,262 — 950 27,212 
Balance As At September 30, 202259,542,212 $59 $155,635 $529,251 $(55,575)$(8,039)$621,331 
Balance As At March 31, 202259,542,212 $59 $174,745 $441,924 $(63,125)$(6,995)$546,608 
Stock based compensation— — 6,801 — — — 6,801 
Sale of Freedom Finance Ukraine LLC shares— — — — — — — 
Contribution of shareholder— — 677 — — — 677 
Acquisition of insurance companies— — (26,588)— — — (26,588)
Other comprehensive income— — — — 2,234 — 2,234 
Translation difference— — — — 5,316 — 5,316 
Net income/(loss)— — — 87,327 — (1,044)86,283 
Balance As At September 30, 202259,542,212 $59 $155,635 $529,251 $(55,575)$(8,039)$621,331 
The accompanying notes are an integral part of these condensed consolidated financial statements.

9




FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)
(All amounts in thousands of United States dollars, except share data, unless otherwise stated)
Common StockAdditional
paid
in capital
Retained
earnings
Accumulated
other
comprehensive
(loss)/income
Non-
controlling
interest
Total
SharesAmount
Balance As At June 30, 2021 (Recasted)59,474,712 $58 $138,687 $269,849 $(36,506)$(1,693)$370,395 
Stock based compensation— 1 4,561 — — — 4,562 
Sale of Freedom Finance Ukraine LLC shares— — (796)— — 1,212 416 
Contribution of shareholder— — 700 — — — 700 
Exercise of options60,000 — 119 —  — 119 
Other comprehensive loss  — — — (979)— (979)
Translation difference— — — — 1,181 — 1,181 
Net income/(loss)— — — 206,761 — (20)206,741 
Balance As At September 30, 202159,534,712 $59 $143,271 $476,610 $(36,304)$(501)$583,135 
Balance As At March 2021 (Recasted)58,443,212 $58 $135,260 $214,427 $(40,433)$(1,641)$307,671 
Stock based compensation1,031,500 1 6,722 — — — 6,723 
Sale of Freedom Finance Ukraine LLC shares— — (796)— — 1,212 416 
Contribution of shareholder— — 1,966 — — — 1,966 
Exercise of options60,000 — 119 —  — 119 
Other comprehensive loss— — — — (74)— (74)
Translation difference— — — — 4,203 — 4,203 
Net income/(loss)— — — 262,183 — (72)262,111 
Balance As At September 30, 202159,534,712 $59 $143,271 $476,610 $(36,304)$(501)$583,135 
The accompanying notes are an integral part of these condensed consolidated financial statements.
10

FREEDOM HOLDING CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, except share data, unless otherwise stated)

NOTE 1 – 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, retail banking, corporate investment banking and underwriting services, commercial banking and insurance products. The Company is headquartered in Almaty, Kazakhstan, with supporting administrative office locations in Cyprus, the United States and Russia (with the Russian business classified as discontinued operations pending sale). The Company has retail locations in Kazakhstan, Russia (with the Russian business classified as discontinued operations pending sale), Ukraine, Uzbekistan, Kyrgyzstan, Azerbaijan, Armenia, Cyprus, the UK, Greece, Spain, France, Germany, United Arab Emirates and Turkey. The Company also owns a U.S. Securities and Exchange Commission ("SEC") registered broker dealer. The Company's common stock trades on the Nasdaq Capital Market.

As of September 30, 2022, the Company owned directly, or through subsidiaries, the following companies:

Freedom Finance JSC, an Almaty, Kazakhstan-based securities broker-dealer ("Freedom KZ");
Freedom Finance Global PLC, an Astana International Financial Centre-based securities broker-dealer ("Freedom Global");
Bank Freedom Finance Kazakhstan JSC, an Almaty, Kazakhstan-based bank ("Freedom Bank KZ");
Freedom Finance Life JSC, an Almaty, Kazakhstan-based life/health insurance company ("Freedom Life");
Freedom Finance Insurance JSC, an Almaty, Kazakhstan-based general insurance company ("Freedom Insurance");
Freedom Finance Special Purpose Company LTD, an Astana International Financial Centre-based special purpose company ("Freedom SPC");
Freedom Finance Commercial LLP, a Kazakhstan-based sales consulting company ("Freedom Commercial");
Freedom Finance Europe Limited, a Limassol, Cyprus-based broker-dealer ("Freedom EU");
Freedom Finance Technologies Ltd, a Limassol, Cyprus-based IT development company ("Freedom Technologies");
Freedom Finance Germany GmbH, a Berlin, Germany-based tied agent of Freedom EU ("Freedom GE");
Freedom UK Prime Limited, a London, United Kingdom-based financial intermediary company ("Prime UK");
Freedom Finance Uzbekistan LLC, a Tashkent, Uzbekistan-based broker-dealer ("Freedom UZ");
Freedom Finance Azerbaijan LLC, an Azerbaijan-based financial educational center ("Freedom AZ");
Freedom Finance Armenia LLC, an Armenia-based broker-dealer ("Freedom AR");
Prime Executions, Inc., a New York City, New York-based NYSE institutional brokerage, that is also approved to engage in certain capital markets and investment banking activities ("PrimeEx");
FFIN Securities, Inc., a currently-dormant Nevada corporation ("FFIN");
Freedom Finance Ltd., a Dubai, United Arab Emirates-based financial intermediary company ("Freedom UAE");
ITS Tech Limited, an Astana International Financial Centre-based, IT-support company ("ITS Tech");
Ticketon Events LLP, an Almaty, Kazakhstan-based online ticket sales company ("Ticketon");
Insurance Company London Almaty JSC, an Almaty, Kazakhstan-based general insurance company ("London Almaty");
Waytrust Trading Ltd, a Cyprus-based asset management company ("Waytrust");
Freedom Finance Turkey LLC, an Istanbul based financial consulting company ("Freedom TR");
Investment Company Freedom Finance LLC, a Moscow, Russia-based securities broker-dealer ("Freedom RU");
FFIN Bank LLC, a Moscow, Russia-based bank ("Freedom Bank RU"); and
Freedom Finance Auto LLC, a Russia-based car loans company ("Freedom Auto").

The Company also owns a 9% interest in Freedom Finance Ukraine LLC, a Kiev, Ukraine-based broker-dealer ("Freedom UA"). The remaining 91% interest in Freedom UA is controlled 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
11

FREEDOM HOLDING CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, except share data, unless otherwise stated)
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 determined that Freedom UA is a variable interest entity ("VIE"). Accordingly, the Company consolidated Freedom UA into the financial statements of the Company.

Prior to July 2021, the Company controlled approximately 32.9% of Freedom UA, but due to changes to Ukrainian regulations to restrict foreign ownership of registered Ukrainian broker-dealers, in July 2021, the Company was required to sell approximately 23.9% of its equity interest in Freedom UA to Mr. Tashtitov, reducing the Company's direct ownership interest in Freedom UA to approximately 9%.

The Company has entered into an agreement to sell its Russian subsidiaries, Freedom RU and Freedom Bank RU. For financial information regarding the Company's Russian subsidiaries see Note 25 - Assets and Liabilities held for sale and Divestiture of our Russian Subsidiaries in the Overview section of Management's Discussion and Analysis of Financial Condition and Results of Operations in this quarterly report on Form 10-Q. In addition, the Company intends to sell its Freedom Finance Auto LLC subsidiary, which is not material in the context of its operations. The sale of Freedom Finance Auto LLC by the Company is a condition precedent in the agreement to sell Freedom RU and Freedom Bank RU.
Through its subsidiaries, the Company is a professional participant, with a license to provide one or more types of services, on a number of stock exchanges, including the Kazakhstan Stock Exchange (KASE), Astana International Stock Exchange (AIX), Moscow Exchange (MOEX), Saint-Petersburg Exchange (SPBX), Ukrainian Exchange (UX), Republican Stock Exchange of Tashkent (UZSE), Uzbek Republican Currency Exchange (UZCE) and is a member of the New York Stock Exchange (NYSE) and Nasdaq Stock Exchange (Nasdaq). The Company also own a 24.3% interest in the UX. Freedom EU provides 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.
Unless otherwise specifically or contextually indicated, the “Company” refers to FRHC, together with its consolidated subsidiaries.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting principles
The Company's accounting policies and accompanying condensed consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP).
Basis of presentation and principles of consolidation
The condensed consolidated financial statements present the condensed consolidated accounts of FRHC and its consolidated subsidiaries. In the opinion of management, all normal, recurring adjustments necessary for fair presentation of the condensed consolidated financial statements have been included.
Consolidation of variable interest entities
In accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional subordinated financial support from other parties or whose equity holders at risk 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.
The carrying amounts of the VIE’s consolidated assets and liabilities are as follows:
12

FREEDOM HOLDING CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(All amounts in thousands of United States dollars, except share data, unless otherwise stated)
September 30, 2022
March 31, 2022
Cash and cash equivalents1,645 134 
Restricted cash 2,843 
Trading securities3,437 2,942 
Brokerage and other receivables, net273 435 
Fixed assets, net803 1,043 
Intangible assets, net147