Special Note About Forward-Looking Information

The Central Asia segment accounted for approximately $98.9 million, or 44%, of our total revenue, net and approximately $82.2 million, or 53% of our total expense, during the three months ended June 30, 2022.

Divestiture of our Russian Subsidiaries

Key Factors Affecting Our Results of Operations

Growth of Retail Brokerage Activity In Our Key Markets

Historically we have been active in pursuing inorganic growth through mergers and acquisitions. We expect this trend to continue in the future.

Key Income Statement Line Items

Net Gain on Trading Securities

We earn interest income from trading securities, reverse repurchase transactions and loans to customers. Interest income on trading securities consists of interest earned from investments in debt securities and dividends earned on equity securities held in our proprietary trading account.

Net Loss on Foreign Exchange Operations

Interest expense includes the expenses associated with our short-term and long-term financing, which consist of interest on securities repurchase agreement obligations, customer accounts and deposits, debt securities issued and loans received.

Operating expense includes payroll and bonuses, advertising expenses, lease cost, professional expenses, depreciation and amortization, communication services, software support, stock compensation expense, representative expenses, business trip expenses, utilities, charity and other expenses.

Insurance Claims Incurred, Net of Reinsurance

Net Income/(Loss) Attributable to Non-controlling Interest

Comparison of the Three-month Periods Ended June 30, 2022 and 2021

The following comparison of our financial result for the three-month periods ended June 30, 2022 and 2021, is not necessarily indicative of future results.

The following table sets out information or our total revenue, net for the periods presented.

* Percentage of total revenue, net.

The following table presents our fee and commission income as a percentage of our total revenue by type for the periods presented.

Total fee and commission income as a percentage of total revenue

Net gain on trading securities

The following tables set forth information regarding our revenue from interest income for the periods presented.

Interest income on reverse repurchase $ 4,169 $ 1,041 $ 3,128

The following table sets out the information on our total expense for the periods presented.

Insurance claims incurred, net of reinsurance

Foreign currency translation adjustments, net of tax

•Total expense in our Middle East/Caucasus segment increased by 940% during the three months ended June 30, 2022, mainly due to the increase in payroll expenses.

We financed our operating activities primarily from cash flows from operations and short-term and long-term financing arrangements.

HAGERTY, INC. – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

DOMA HOLDINGS, INC. – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations

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