SRAX, Inc. (OTC:SRAX) Q4 2021 Results Conference Call June 6, 2022 10:30 AM ET Company Participants Morgan-Lea Fogg - Investor Relations Chris Miglino - Chief Executive Officer Mike Malone - Chief Financial Officer Conference Call Participants Jon Hickman - Ladenburg Thalmann Mike Crawford - B. Riley Morgan-Lea Fogg Hello, everyone. Welcome to the SRAX Full Year 2021 Conference Call. We appreciate you joining us today. I'm Morgan, Vice President of Community. This is our safe harbor statement, which I will ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2022 OR o 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) | Nevada | 30-0233726 | | --- ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended December 31, 2021, reflect significant growth in assets, liabilities, and equity, with substantial increases in total revenue and net income, though operating cash flow turned negative [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.68 billion** by December 31, 2021, primarily due to a rise in trading securities, while total shareholders' equity more than doubled to **$591.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Balance Sheet Item | Dec 31, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$2,679,951** | **$2,018,645** | | Cash and cash equivalents | $493,263 | $698,828 | | Trading securities | $1,348,656 | $736,188 | | **Total Liabilities** | **$2,088,461** | **$1,742,974** | | Securities repurchase agreement obligations | $710,284 | $426,715 | | Customer liabilities | $1,145,070 | $1,163,697 | | **Total Shareholders' Equity** | **$591,490** | **$275,671** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the nine months ended December 31, 2021, total net revenue surged 157% to **$582.6 million** and net income increased 241% to **$307.1 million**, driven by strong fee and commission income and trading gains Financial Performance Summary (in thousands USD) | Period | Metric | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | :--- | | **Three Months Ended Dec 31** | Total Revenue, Net | $145,684 | $100,233 | 45% | | | Net Income | $50,886 | $42,321 | 20% | | | Diluted EPS | $0.85 | $0.72 | 18% | | **Nine Months Ended Dec 31** | Total Revenue, Net | $582,635 | $226,358 | 157% | | | Net Income | $307,107 | $90,160 | 241% | | | Diluted EPS | $5.18 | $1.54 | 236% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities resulted in a net cash outflow of **$582.1 million** for the nine months ended December 31, 2021, a reversal from the prior year's inflow, primarily due to increased trading securities and receivables Cash Flow Summary (Nine Months Ended Dec 31, in thousands USD) | Cash Flow Category | 2021 | 2020 | | :--- | :--- | :--- | | Net cash flows (used in)/from operating activities | $(582,080) | $698,954 | | Net cash flows (used in)/from investing activities | $(6,110) | $98,418 | | Net cash flows from financing activities | $338,792 | $61,952 | | **Net Change in Cash, Cash Equivalents and Restricted Cash** | **$(238,805)** | **$863,111** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business operations, accounting policies, and financial item breakdowns, including trading securities, fair value, debt, and significant related party transactions for the Eurasian financial services provider - The company provides a wide range of financial services, including retail securities brokerage, investment banking, and banking services, primarily across Eurasia with headquarters in Almaty, Kazakhstan[19](index=19&type=chunk) Trading Securities Composition (in thousands USD) | Security Type | Dec 31, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | Corporate debt | $624,247 | $334,763 | | Non-US sovereign debt | $451,437 | $333,619 | | Corporate equity | $161,550 | $47,340 | | Exchange traded notes | $104,462 | $9,638 | | US sovereign debt | $6,960 | $10,828 | | **Total** | **$1,348,656** | **$736,188** | - For the nine months ended December 31, 2021, the company earned commission income of **$234.2 million** from related parties, primarily from brokerage services. Margin lending receivables with related parties also increased significantly to **$159.0 million**[119](index=119&type=chunk)[123](index=123&type=chunk) [Management's Discussion and Analysis (MD&A)](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes rapid growth to retail brokerage expansion, COVID-19 market volatility, and acquisitions, detailing significant revenue and net income increases, while also discussing liquidity, repurchase agreement reliance, and capital requirements [Overview and Key Factors](index=41&type=section&id=Overview%20and%20Key%20Factors) The company experienced rapid expansion, growing client accounts to **370,000** by December 2021, driven by retail investment market growth, increased client activity during the pandemic, and strategic acquisitions - The company's client base has grown rapidly, increasing from ~**290,000** accounts as of March 31, 2021, to ~**370,000** as of December 31, 2021[161](index=161&type=chunk) - Key growth drivers identified by management include: - Rapid growth of retail brokerage activity in Russia and Kazakhstan - Increased client trading volume and account openings during the COVID-19 pandemic - A strategy of pursuing inorganic growth through mergers and acquisitions[162](index=162&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk)[170](index=170&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Detailed financial results show nine-month revenue grew 157% to **$582.6 million**, driven by fee and commission income and trading gains, with total expenses rising 99% due to business growth Revenue Breakdown (Nine Months Ended Dec 31, in thousands USD) | Revenue Source | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Fee and commission income | $336,178 | $171,949 | 96% | | Net gain on trading securities | $185,554 | $36,330 | 411% | | Interest income | $61,047 | $16,571 | 268% | | **Total revenue, net** | **$582,635** | **$226,358** | **157%** | - The significant increase in net gain on trading securities was primarily due to the sale of SPBX stock and SPBX ETF units, which management does not consider to be indicative of a future trend[206](index=206&type=chunk)[208](index=208&type=chunk) Expense Breakdown (Nine Months Ended Dec 31, in thousands USD) | Expense Category | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Fee and commission expense | $67,547 | $50,068 | 35% | | Interest expense | $51,256 | $15,092 | 240% | | Operating expense | $117,384 | $52,214 | 125% | | **Total expense** | **$237,491** | **$119,298** | **99%** | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash and operations, with **$493.3 million** in cash and equivalents, while short-term financing heavily relies on **$710.3 million** in repurchase agreements, and regulated subsidiaries met their **$29.3 million** capital requirements - Short-term financing is primarily obtained through securities repurchase arrangements, with obligations totaling **$710.3 million** as of December 31, 2021, collateralized by trading securities[231](index=231&type=chunk) - The company's regulated subsidiaries must maintain minimum net capital, with an aggregate requirement of approximately **$29.3 million** as of December 31, 2021, which was exceeded[238](index=238&type=chunk) [Market Risk Disclosures](index=58&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rate, foreign currency, and equity price risks, with a 100 basis point interest rate increase potentially causing a **$47.8 million** portfolio decline, alongside significant credit risk from **$291.2 million** in margin lending receivables - A hypothetical 100 basis point increase in interest rates would result in a **$47.8 million** decline in the fair market value of the company's investment portfolio as of December 31, 2021[257](index=257&type=chunk) - A 10% adverse change in the value of the U.S. dollar against other currencies would have increased net income before tax by **$16.5 million** as of December 31, 2021[258](index=258&type=chunk) - The company faces significant credit risk from its margin lending activities, with margin lending receivables totaling **$291.2 million** as of December 31, 2021[263](index=263&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of December 31, 2021, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[271](index=271&type=chunk) [PART II — OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in a legal dispute with the Estate of Toleush Tolmakov regarding the distribution of at least **$8.38 million** in cash and **250,079** shares of company stock - The company is in a legal dispute with the Estate of Toleush Tolmakov over the distribution of assets, including no less than **$8.38 million** in cash and **250,079** shares of common stock[275](index=275&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors previously disclosed in the company's annual and prior quarterly reports - There have been no material changes from the risk factors previously disclosed in the company's annual and prior quarterly reports[276](index=276&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including offering documents for bond issuances and CEO/CFO certifications - The report includes exhibits such as offering terms for bonds due in 2026, CEO/CFO certifications, and financial statements formatted in inline XBRL[277](index=277&type=chunk)

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 ...