Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 229

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 229
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 lease prepayments made, plus initial direct costs incurred, less any lease incentives received. The Company recognizes fixed lease costs on a straight-line basis throughout the lease term in the Consolidated Statement of Income. Certain of these leases also have extension or termination options, 

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

and the Company assesses the likelihood of exercising such options. If it is reasonably certain that the Group will exercise the options to extend, then we include the impact in the measurement of our ROU assets and lease liabilities.When readily determinable, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the rate implicit on most of the Group's leases are not readily determinable. 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 Condensed Consolidated Balance Sheets as of December 31, 2024:Classification on Balance SheetDecember 31, 2024March 31, 2024AssetsOperating lease assetsRight-of-use asset$39,242 $36,324 Total lease assets$39,242 $36,324 LiabilitiesOperating lease liabilityLease liability$40,401 $35,794 Total lease liability$40,401 $35,794 The following table presents as of December 31, 2024, the maturities of the lease liabilities:Leases maturing during the period ending March 31, 2025$4,874202614,825 202713,217 20289,121 20293,986 Thereafter4,267 Total payments50,290 Less: amounts representing interest(9,889)Lease liability, net$40,401 Weighted average remaining lease term (in months)33Weighted average discount rate15 %Lease commitments for short-term operating leases as of December 31, 2024 and December 31, 2023 was approximately $862 and $576, respectively. The Group's rent expense for office space was $2,365 and $6,858 for the three and nine months ended December 31, 2024 and $725 and $2,344 for the three and nine months ended December 31,