Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 263

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 263
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 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 September 30, 2025 and March 31, 2025:Classification on Balance SheetSeptember 30, 2025March 31, 2025AssetsOperating lease assetsRight-of-use asset$37,103 $39,828 Total lease assets$37,103 $39,828 LiabilitiesOperating lease liabilityLease liability$38,804 $40,525 Total lease liability$38,804 $40,525 The following table presents as of September 30, 2025, the maturities of the lease liabilities:Leases maturing during the period ending March 31, 2026$8,951202715,782 202811,876 20295,654 20303,672 Thereafter2,077 Total payments48,012 Less: amounts representing interest(9,208)Lease liability, net$38,804 Weighted average remaining lease term (in months)27Weighted average discount rate15 %Lease commitments for short-term operating leases as of September 30, 2025 and September 30, 2024 was approximately $1,810 and $1,368, respectively. The Group's rent expense for office space was $2,969 and  for $5,658 the three and six months ended September 30, 2025 and $2,339 and $4,493 for the three and six months ended September 30, 2024, respectively.The Group has leases that involve variable payments tied to an index, which are