Company: FRHC
Filing Date: 2025-07-29
Form Type: ARS
Source: 0000924805-25-000027
Chunk: 235

Company: Freedom Holding Corp.
Filing Date: 2025-07-29
Form: ARS
Chunk 235
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 the Company's collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any 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, Table of Contents FREEDOM HOLDING CORP. NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2024 (All amounts in thousands of United States dollars, except share data, unless otherwise stated) 161

and the Company assess 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 right-of-use 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 consolidated balance sheets as of March 31, 2025 and March 31, 2024: Classification on Balance Sheet March 31, 2025 March 31, 2024 Assets Operating lease assets Right-of-use assets $ 39,828 $ 36,324 Total lease assets $ 39,828 $ 36,324 Liabilities Operating lease liability Lease liability $ 40,525 $ 35,794 Total lease liability $ 40,525 $ 35,794 The following table presents as of March 31, 2025, the annual maturities of the lease liabilities: Leases maturing during twelve months ended March 31, 2026 $ 16,028 2027 14,796 2028 10,504 2029 4,405 2030 2,530 Thereafter 2,000 Total payments 50,263 Less: amounts representing interest (9,738) Lease liability, net $ 40,525 Weighted average remaining lease term (in months) 31 Weighted average discount rate 15 % Lease commitments for short-term operating leases as of March 31, 2025 and March 31, 2024 was approximately $2,