SRAX, Inc. (OTC:SRAX) Q3 2021 Earnings Conference Call November 15, 2021 4:30 PM ET Company Participants Christopher Miglino - Founder and CEO Michael Malone - CFO Randy Clark - COO Conference Call Participants Mike Crawford - B. Riley Financial John Hickman - Ladenburg Thalmann & Co. Christopher Miglino Welcome to the SRAX Q3 2021 Earnings Call. We had another amazing quarter at SRAX. First, I would like to start with a list of some of our major accomplishments for the quarter. In the third quarter, we con ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION 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. (Address of principal executive offices) (Zip Code) +7 727 311 10 64 (Registrant's telep ...

SRAX, Inc. (OTC:SRAX) Q2 2021 Earnings Conference Call August 12, 2021 5:00 PM ET Company Participants Christopher Miglino - Founder and CEO Michael Malone - CFO Randy Clark - COO Conference Call Participants John Hickman - Ladenburg Thalmann & Co. Christopher Miglino Hi, everybody, and welcome to the Q2 SRAX Conference Call. Appreciate you taking the time to join us today. We have some really good news for you today. We had another amazing quarter, probably one of our best quarters ever, in fact, it was ou ...

[PART I — FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Unaudited condensed consolidated financial statements for the three months ended June 30, 2021, detailing financial position, operations, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Metric | June 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$2,127,343** | **$2,018,645** | | Cash and cash equivalents | $674,076 | $698,828 | | Trading securities | $825,364 | $736,188 | | **Total Liabilities** | **$1,794,502** | **$1,742,974** | | Customer liabilities | $1,067,864 | $1,163,697 | | **Total Shareholders' Equity** | **$332,841** | **$275,671** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (in thousands USD, except per share data) | Metric | Three months ended June 30, 2021 | Three months ended June 30, 2020 | | :--- | :--- | :--- | | **Total Revenue, Net** | **$124,137** | **$56,415** | | Fee and commission income | $97,406 | $43,339 | | **Total Expense** | **$66,760** | **$27,534** | | **Net Income** | **$51,708** | **$24,276** | | Net Income Attributable to Common Shareholders | $51,760 | $23,853 | | **Basic EPS (USD)** | **$0.87** | **$0.42** | | **Diluted EPS (USD)** | **$0.87** | **$0.42** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (in thousands USD) | Metric | Three months ended June 30, 2021 | Three months ended June 30, 2020 | | :--- | :--- | :--- | | Net cash flows (used in)/from operating activities | $(70,941) | $690,726 | | Net cash flows (used in)/from investing activities | $(2,583) | $5,234 | | Net cash flows from/(used in) financing activities | $6,687 | $(980) | | **Net Change in Cash, Cash Equivalents and Restricted Cash** | **$(43,664)** | **$708,870** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company provides **financial services** including retail securities brokerage, research, investment counseling, securities trading, and banking services primarily in **Eurasia**, headquartered in Almaty, Kazakhstan[16](index=16&type=chunk) - As of June 30, 2021, the company held a **32.88% interest** in Freedom Finance Ukraine (Freedom UA) but consolidates it as a VIE due to contractual control over **90% of net profits**[18](index=18&type=chunk) - On May 18, 2021, the company awarded restricted stock grants totaling **1,031,500 shares** to 56 employees, with stock-based compensation expense for the quarter at **$2.16 million**[110](index=110&type=chunk)[112](index=112&type=chunk) - Total lending-related commitments, including bank guarantees and unfunded lines of credit, amounted to **$10.34 million** as of June 30, 2021[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2022 financial performance, highlighting significant revenue and net income growth, liquidity, and capital resources [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q1 FY2022 vs Q1 FY2021 Performance (in thousands USD) | Metric | Q1 FY2022 (ended June 30, 2021) | Q1 FY2021 (ended June 30, 2020) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue, Net** | **$124,137** | **$56,415** | **+120%** | | Fee and commission income | $97,406 | $43,339 | +125% | | Interest income | $18,077 | $4,249 | +325% | | **Total Expense** | **$66,760** | **$27,534** | **+142%** | | **Net Income** | **$51,708** | **$24,276** | **+113%** | - The **125% increase** in fee and commission income was primarily driven by a **$50.7 million increase** from brokerage and banking services due to customer expansion and higher client activity[153](index=153&type=chunk)[154](index=154&type=chunk) - The **281% increase** in interest expense was mainly due to a **$7.7 million rise** in short-term financing costs and a **$3.2 million increase** in interest on client deposits[165](index=165&type=chunk) - Operating expenses rose by **$15.9 million (110%)**, largely due to a **$7.2 million increase** in payroll and bonus expense from workforce expansion[168](index=168&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Key Liquidity Metrics (in thousands USD) | Metric | June 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $674,076 | $698,828 | | Trading securities | $825,364 | $736,188 | | Total assets | $2,127,343 | $2,018,645 | - Short-term financing is primarily obtained through securities repurchase arrangements, with **$460.5 million (56%)** of trading securities subject to these obligations as of June 30, 2021[182](index=182&type=chunk) - The aggregate minimum net capital requirement for regulated subsidiaries was approximately **$30.1 million** as of June 30, 2021, exceeded by all subsidiaries[188](index=188&type=chunk)[189](index=189&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) Outlines primary market risk exposures, including interest rate, foreign currency, equity price, and credit risk, with quantitative disclosures - A hypothetical **100 basis point increase** in interest rates would result in a **$45.3 million decline** in the investment portfolio's fair market value[207](index=207&type=chunk) - A **10% adverse change** in the U.S. dollar's value would result in an estimated **$2.3 million reduction** in pre-tax net income[210](index=210&type=chunk) - As of June 30, 2021, the company had **$113.0 million** in margin lending receivables, exposing it to customer credit risk[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting - The principal executive and financial officers concluded that disclosure controls and procedures were **effective** as of June 30, 2021[225](index=225&type=chunk) - **No material changes** to internal control over financial reporting occurred during the three months ended June 30, 2021[226](index=226&type=chunk) [PART II — OTHER INFORMATION](index=52&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to routine legal proceedings and regulatory inquiries, which management believes will not materially affect its financial condition or operations - The company is subject to routine legal proceedings and regulatory inquiries inherent to the financial services industry[228](index=228&type=chunk) - Management does **not expect current routine legal matters to have a material adverse effect** on the company's financial condition or operations[229](index=229&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No additions to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2021 - There are **no additions** to the risk factors disclosed in the company's annual report on Form 10-K for the year ended March 31, 2021[230](index=230&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in inline XBRL format - The exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act sections, and financial data in inline XBRL format[231](index=231&type=chunk) [Signatures](index=54&type=section&id=Signatures)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2021 OR ☐ TRANSITION 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) (State or other jurisdiction of (I.R.S. Employe ...

SRAX, Inc. (OTC:SRAX) Q1 2021 Results Earnings Conference Call May 17, 2021 4:30 PM ET Company Participants Christopher Miglino - Founder and Chief Executive Officer Michael Malone - Chief Financial Officer Conference Call Participants Michael Crawford - B. Riley Operator Thanks for joining us today for the SRAX first quarter 2021 earnings call. It was another record quarter for SRAX and our Sequire platform. First, I want to cover some of the major accomplishments for the quarter. Revenue growth was up 1,4 ...

SRAX, Inc. (OTC:SRAX) Q4 2020 Results Earnings Conference Call March 29, 2021 4:30 PM ET Company Participants Chris Miglino - Founder and CEO Mike Malone - Chief Financial Officer Conference Call Participants Mike Crawford - B. Riley Jon Hickman - Ladenburg Thalmann & Co. Dave Lavigne - Trickle Research Chris Miglino Hello. My name is Chris Miglino and I am the Founder and CEO at SRAX. I’m very excited to be with you today to talk to you about the fourth quarter and the full year financial results, and give ...

[PART I — FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited consolidated financial statements present Freedom Holding Corp.'s financial position, operations, and cash flows, showing significant growth driven by customer activity and acquisitions [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets significantly increased to **$1.47 billion**, driven by cash and trading securities, while liabilities surged due to customer deposits, leading to a **75%** rise in equity Condensed Consolidated Balance Sheet Highlights (in thousands of USD) | Account | Dec 31, 2020 | March 31, 2020 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,473,654** | **$453,523** | **+225%** | | Cash and cash equivalents | $624,572 | $63,208 | +888% | | Restricted cash | $368,344 | $66,597 | +453% | | Trading securities | $345,313 | $156,544 | +121% | | **Total Liabilities** | **$1,248,096** | **$324,486** | **+285%** | | Customer liabilities | $967,256 | $168,432 | +474% | | Securities repurchase agreement obligations | $144,402 | $48,204 | +199% | | **Total Stockholders' Equity** | **$225,558** | **$129,037** | **+75%** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net revenue for the nine months ended December 31, 2020, surged **147%** to **$226.4 million**, driven by fee and commission income, resulting in a **308%** increase in net income to **$89.9 million** Statement of Operations Summary (in thousands of USD, except per share data) | Metric | Nine Months Ended Dec 31, 2020 | Nine Months Ended Dec 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Fee and commission income | $171,949 | $69,538 | +147% | | **Total Revenue, Net** | **$226,358** | **$91,809** | **+147%** | | **Total Expense** | **$119,298** | **$66,617** | **+79%** | | **Net Income** | **$90,160** | **$20,900** | **+331%** | | Net Income Attributable to Common Stockholders | $89,917 | $22,020 | +308% | | **Diluted EPS** | **$1.54** | **$0.36** | **+328%** | Quarterly Performance (Q3 2020 vs Q3 2019, in thousands of USD) | Metric | Three Months Ended Dec 31, 2020 | Three Months Ended Dec 31, 2019 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue, Net** | **$100,233** | **$29,570** | **+239%** | | **Net Income** | **$42,321** | **$4,050** | **+945%** | | **Diluted EPS** | **$0.72** | **$0.07** | **+929%** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$699.0 million**, primarily due to higher net income and increased customer liabilities, while investing activities turned positive due to acquisitions Cash Flow Summary (in thousands of USD) | Cash Flow Activity | Nine Months Ended Dec 31, 2020 | Nine Months Ended Dec 31, 2019 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | **$698,954** | **$68,645** | | Net cash flows from/(used in) investing activities | $98,418 | $(10,595) | | Net cash flows from/(used in) financing activities | $61,952 | $(8,372) | | **Net Change in Cash, Cash Equivalents, and Restricted Cash** | **$863,111** | **$54,959** | - The primary driver for the increase in operating cash flow was a **$647.0 million** increase in customer liabilities[14](index=14&type=chunk) - Investing activities were significantly impacted by cash received from acquisitions (**$157.5 million**), offset by cash paid for acquisitions of Zerich (**$7.1 million**), Prime Executions (**$2.5 million**), and Freedom Bank KZ (**$53.1 million**)[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's financial services in Eurasia, significant acquisitions, financial instrument composition, and related party transactions, providing context for the consolidated statements - The company provides financial services including retail securities brokerage, research, investment counseling, securities trading, market making, and corporate investment banking in Eurasia, with headquarters in Almaty, Kazakhstan[20](index=20&type=chunk) - The company completed three key acquisitions: Zerich Capital Management in July 2020 for **$7.1 million**, Prime Executions in December 2020 for **$2.5 million**, and Freedom Bank KZ in December 2020 for **$53.1 million**[24](index=24&type=chunk)[128](index=128&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - As of December 31, 2020, related parties accounted for a significant portion of business, including **35%** of margin lending receivables (**$20.8 million**), **51%** of trade payables (**$9.7 million**), and substantial commission income (**$128.2 million** for the nine months)[90](index=90&type=chunk)[103](index=103&type=chunk)[108](index=108&type=chunk) - The company's trading securities portfolio increased to **$345.3 million**, with **83%** in debt securities, including Level 3 assets valued at **$18.7 million** using a Discounted Cash Flow (DCF) model[79](index=79&type=chunk)[84](index=84&type=chunk)[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes significant revenue and net income growth to increased customer trading, organic expansion, and strategic acquisitions, while maintaining strong liquidity despite acknowledging unique market conditions [Executive Summary and Significant Events](index=39&type=section&id=Executive%20Summary%20and%20Significant%20Events) The company serviced over **229,000** client accounts and completed key acquisitions of Freedom Bank KZ and Prime Executions, expanding services and entering the U.S. market, while S&P revised subsidiary ratings outlooks to positive - Serviced more than **229,000** client accounts as of December 31, 2020, with about **68,000** considered active during the quarter[145](index=145&type=chunk) - Acquired Freedom Bank KZ for **$53.1 million** on December 28, 2020, to expand banking services in Kazakhstan[147](index=147&type=chunk) - Acquired Prime Executions, a NYSE floor broker, for **$2.5 million** on December 29, 2020, to enter the U.S. market and provide an additional execution avenue for clients[150](index=150&type=chunk)[152](index=152&type=chunk) - On November 30, 2020, S&P revised the ratings outlook of subsidiaries Freedom KZ and Freedom RU from 'stable' to 'positive'[154](index=154&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Net revenue for the nine months ended December 31, 2020, increased **147%** to **$226.4 million**, driven by higher fee and commission income, resulting in a **331%** increase in net income to **$90.2 million** Revenue Comparison (Nine Months Ended Dec 31, in thousands of USD) | Revenue Source | 2020 | 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fee and commission income | $171,949 | $69,538 | +$102,411 | +147% | | Net gain on trading securities | $36,330 | $12,957 | +$23,373 | +180% | | Interest income | $16,571 | $8,999 | +$7,572 | +84% | | **Total revenue, net** | **$226,358** | **$91,809** | **+$134,549** | **+147%** | Expense Comparison (Nine Months Ended Dec 31, in thousands of USD) | Expense Category | 2020 | 2019 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Fee and commission expense | $50,068 | $14,068 | +$36,000 | +256% | | Operating expense | $52,214 | $44,576 | +$7,638 | +17% | | Interest expense | $15,092 | $8,614 | +$6,478 | +75% | | **Total expense** | **$119,298** | **$66,617** | **+$52,681** | **+79%** | - The increase in fee and commission income was attributed to significantly increased trading volume and customer activity, as well as ongoing efforts to expand the customer base organically and through acquisitions[190](index=190&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly strengthened with cash and equivalents rising to **$624.6 million**, driven by increased customer deposits, supporting an aggressive growth strategy while management deems current resources sufficient for the next 12 months - As of Dec 31, 2020, cash and cash equivalents were **$624.6 million** and restricted cash was **$368.3 million**, a substantial increase from March 31, 2020[209](index=209&type=chunk) - The trading securities portfolio grew to **$345.3 million**, with **83%** in debt securities, of which **$144.7 million** (**42%**) was subject to securities repurchase obligations[210](index=210&type=chunk)[211](index=211&type=chunk) - The company has pursued an aggressive growth strategy and anticipates continuing to expand via future acquisitions, which may require additional equity or debt financing[217](index=217&type=chunk) - Management believes current cash, expected cash from operations, and returns from proprietary trading will be sufficient to meet working capital needs for the next 12 months[219](index=219&type=chunk) [Qualitative and Quantitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) The company, as a smaller reporting company, is not required to provide the information for this item - As a smaller reporting company, Freedom Holding Corp. is not required to provide qualitative and quantitative disclosures about market risk[226](index=226&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of December 31, 2020, the company's disclosure controls and procedures were effective[227](index=227&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended December 31, 2020[228](index=228&type=chunk) [PART II — OTHER INFORMATION](index=56&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company and its subsidiaries are party to various routine legal proceedings, claims, and regulatory inquiries arising from the ordinary course of business - The company is subject to routine legal proceedings and regulatory inquiries inherent in the highly regulated financial services industry[229](index=229&type=chunk) - Management believes that the results of these routine matters will not have a material adverse effect on the company's financial condition or operations[230](index=230&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) There are no additions to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended March 31, 2020, and the Quarterly Report on Form 10-Q for the period ended September 30, 2020 - No new risk factors have been added since the company's previous 10-K and 10-Q filings[231](index=231&type=chunk) [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including acquisition agreements and officer certifications required by the Sarbanes-Oxley Act - Exhibits filed include agreements for the acquisitions of Bank Kassa Nova JSC (now Freedom Bank KZ) and related subordinated loans[232](index=232&type=chunk) - Certifications by the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[232](index=232&type=chunk)

SRAX, Inc. (OTC:SRAX) Q3 2020 Earnings Conference Call November 16, 2020 12:00 PM ET Company Participants Chris Miglino - Chief Executive Officer Michael Malone - Chief Financial Officer Conference Call Participants Operator [Operator Instructions] Chris Miglino [Call starts abruptly] Q3 Conference Call. We appreciate you joining the call today. There's still a few people getting into the call, so we'll go ahead and slowly start here. We're excited for the quarter. We think we had a really good and exciting ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION 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 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR FREEDOM HOLDING CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ( ...