Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2023 | Nov. 10, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38426 | |
Entity Registrant Name | Senmiao Technology Ltd | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 35-2600898 | |
Entity Address, Address Line One | 16F, Shihao Square, Middle Jiannan Blvd., | |
Entity Address, Address Line Two | High-Tech Zone | |
Entity Address, City or Town | Chengdu | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 610000 | |
City Area Code | +86 28 | |
Local Phone Number | 61554399 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AIHS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,568,040 | |
Entity Central Index Key | 0001711012 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 1,305,199 | $ 1,610,090 |
Restricted cash | 1,915 | |
Inventories | 0 | 6,678 |
Finance lease receivables, current portion | 104,989 | 146,114 |
Due from related parties, net, current portion | $ 2,123,301 | $ 1,488,914 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related party | Related party |
Total current assets | $ 5,263,710 | $ 4,854,786 |
Property and equipment, net | 2,945,230 | 3,343,457 |
Other assets | ||
Financing lease right-of-use assets, net | 468,928 | 623,714 |
Intangible assets, net | 673,509 | 774,324 |
Finance lease receivables, non-current | 75,214 | 71,133 |
Due from a related party, net, non-current | $ 2,144,893 | $ 3,640,206 |
Other Receivable, after Allowance for Credit Loss, Noncurrent, Related Party, Type [Extensible Enumeration] | Related party | Related party |
Other non-current assets | $ 633,224 | $ 716,407 |
Total other assets | 4,449,725 | 6,040,372 |
Total assets | 12,658,665 | 14,238,615 |
Current liabilities | ||
Borrowings from a financial institution, current | 105,733 | 8,813 |
Accounts payable | 357,322 | 183,645 |
Advances from customers | 151,149 | 148,188 |
Accrued expenses and other liabilities | 3,824,338 | 3,377,507 |
Due to a related party | $ 1,510 | $ 8,667 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related party | Related party |
Financing lease liabilities | $ 233,489 | $ 264,052 |
Derivative liabilities | 137,943 | 501,782 |
Current liabilities - discontinued operations | 459,186 | 487,829 |
Total current liabilities | 5,596,978 | 5,184,823 |
Other liabilities | ||
Borrowing from a financial institution, non-current | 140,977 | |
Financing lease liabilities, non-current | 247,048 | 388,064 |
Deferred tax liability | 40,409 | 42,930 |
Total other liabilities | 684,342 | 556,726 |
Total liabilities | 6,281,320 | 5,741,549 |
Commitments and contingencies (note 19) | ||
Mezzanine Equity | ||
Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 991 and 1,641 shares issued and outstanding at September 30, 2023 and March 31, 2023, respectively) | 234,364 | 269,386 |
Stockholders' equity | ||
Common stock (par value $0.0001 per share, 500,000,000 shares authorized; 8,068,040 and 7,743,040 shares issued and outstanding at September 30, 2023 and March 31, 2023, respectively) | 806 | 773 |
Additional paid-in capital | 43,390,823 | 43,355,834 |
Accumulated deficit | (39,069,079) | (37,715,294) |
Accumulated other comprehensive loss | (1,778,990) | (1,247,099) |
Total Senmiao Technology Limited stockholders' equity | 2,543,560 | 4,394,214 |
Non-controlling interests | 3,599,421 | 3,833,466 |
Total equity | 6,142,981 | 8,227,680 |
Total Liabilities, Mezzanine Equity and Equity | 12,658,665 | 14,238,615 |
Nonrelated Party | ||
Current assets | ||
Accounts receivable | 82,288 | 158,435 |
Prepayments, other receivables and other assets, net | 1,491,591 | 1,438,243 |
Other assets | ||
Operating lease right-of-use assets, net | 97,321 | 121,672 |
Current liabilities | ||
Operating lease liabilities | 32,822 | 60,878 |
Other liabilities | ||
Operating lease liabilities, non-current | 59,787 | 83,485 |
Related party | ||
Current assets | ||
Accounts receivable | 8,018 | 6,312 |
Prepayments, other receivables and other assets, net | 146,409 | |
Other assets | ||
Operating lease right-of-use assets, net | 356,636 | 92,916 |
Current liabilities | ||
Operating lease liabilities | 293,486 | 143,462 |
Other liabilities | ||
Operating lease liabilities, non-current | $ 196,121 | $ 42,247 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2023 | Mar. 31, 2023 |
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 8,068,040 | 7,743,040 |
Common stock, outstanding (in shares) | 8,068,040 | 7,743,040 |
Series A Convertible Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, authorized (in shares) | 5,000 | 5,000 |
Preferred stock, issued (in shares) | 991 | 1,641 |
Preferred stock, outstanding (in shares) | 991 | 1,641 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Revenues | $ 1,826,951 | $ 2,241,202 | $ 3,921,665 | $ 4,582,998 |
Cost of revenues | ||||
Cost of revenues | (1,452,840) | (1,932,384) | (2,965,614) | (3,814,200) |
Gross profit | 374,111 | 308,818 | 956,051 | 768,798 |
Operating expenses | ||||
Selling, general and administrative expenses | (1,102,733) | (1,527,731) | (2,346,022) | (3,447,078) |
Allowance for credit losses | (553,323) | (366,293) | (680,396) | (344,436) |
Impairments of inventories | (3,085) | |||
Total operating expenses | (1,656,056) | (1,894,024) | (3,026,418) | (3,794,599) |
Loss from operations | (1,281,945) | (1,585,206) | (2,070,367) | (3,025,801) |
Other income (expense) | ||||
Other income, net | 24,654 | 423,972 | 96,803 | 487,125 |
Interest expense | (2,233) | 0 | (2,758) | 0 |
Interest expense on finance leases | (7,594) | (1,153) | (16,316) | (8,301) |
Change in fair value of derivative liabilities | 59,666 | (17,417) | 363,839 | 1,611,093 |
Total other income, net | 74,493 | 405,402 | 441,568 | 2,089,917 |
Loss before income taxes | (1,207,452) | (1,179,804) | (1,628,799) | (935,884) |
Net Loss | (1,207,452) | (1,179,804) | (1,628,799) | (935,884) |
Net loss attributable to non-controlling interests from operations | 281,495 | 96,314 | 275,014 | 185,247 |
Net loss attributable to the Company's stockholders | (925,957) | (1,083,490) | (1,353,785) | (750,637) |
Other comprehensive loss | ||||
Foreign currency translation adjustment | (37,597) | (719,920) | (490,922) | (1,505,573) |
Comprehensive loss | (1,245,049) | (1,899,724) | (2,119,721) | (2,441,457) |
less: Total comprehensive income (loss) attributable to noncontrolling interests | (283,338) | 7,057 | (234,045) | (83,691) |
Total comprehensive loss attributable to stockholders | $ (961,711) | $ (1,906,781) | $ (1,885,676) | $ (2,357,766) |
Weighted average number of common stock | ||||
Basic (in shares) | 7,791,138 | 7,048,187 | 7,966,674 | 6,678,749 |
Diluted (in shares) | 7,791,138 | 7,048,187 | 7,966,674 | 6,678,749 |
Net earnings (loss) per share - basic | $ (0.12) | $ (0.15) | $ (0.17) | $ (0.11) |
Net earnings (loss) per share - diluted | $ (0.12) | $ (0.15) | $ (0.17) | $ (0.11) |
Nonrelated Party | ||||
Revenues | ||||
Revenues | $ 1,818,552 | $ 2,164,089 | $ 3,899,518 | $ 4,290,425 |
Cost of revenues | ||||
Cost of revenues | (1,270,675) | (1,830,224) | (2,573,270) | (3,665,698) |
Related party | ||||
Revenues | ||||
Revenues | 8,399 | 77,113 | 22,147 | 292,573 |
Cost of revenues | ||||
Cost of revenues | $ (182,165) | $ (102,160) | $ (392,344) | $ (148,502) |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Non-controlling interest | Total |
Beginning balance at Mar. 31, 2022 | $ 618 | $ 42,803,045 | $ (34,601,545) | $ (109,454) | $ 4,476,275 | $ 12,568,939 |
Beginning balance (in shares) at Mar. 31, 2022 | 6,186,783 | |||||
Net income (loss) | 332,853 | (88,933) | 243,920 | |||
Conversion of preferred stock into common stock | $ 14 | 85,349 | 85,363 | |||
Conversion of preferred stock into common stock (in shares) | 126,831 | |||||
Foreign currency translation adjustment | (783,838) | (1,815) | (785,653) | |||
Ending balance at Jun. 30, 2022 | $ 632 | 42,888,394 | (34,268,692) | (893,292) | 4,385,527 | 12,112,569 |
Ending balance (in shares) at Jun. 30, 2022 | 6,313,614 | |||||
Beginning balance at Mar. 31, 2022 | $ 618 | 42,803,045 | (34,601,545) | (109,454) | 4,476,275 | 12,568,939 |
Beginning balance (in shares) at Mar. 31, 2022 | 6,186,783 | |||||
Net income (loss) | (935,884) | |||||
Foreign currency translation adjustment | (1,505,573) | |||||
Ending balance at Sep. 30, 2022 | $ 770 | 43,337,891 | (35,352,182) | (1,716,583) | 4,392,584 | 10,662,480 |
Ending balance (in shares) at Sep. 30, 2022 | 7,682,908 | |||||
Beginning balance at Jun. 30, 2022 | $ 632 | 42,888,394 | (34,268,692) | (893,292) | 4,385,527 | 12,112,569 |
Beginning balance (in shares) at Jun. 30, 2022 | 6,313,614 | |||||
Net income (loss) | (1,083,490) | (96,314) | (1,179,804) | |||
Conversion of preferred stock into common stock | $ 138 | 449,497 | 449,635 | |||
Conversion of preferred stock into common stock (in shares) | 1,369,294 | |||||
Foreign currency translation adjustment | (823,291) | 103,371 | (719,920) | |||
Ending balance at Sep. 30, 2022 | $ 770 | 43,337,891 | (35,352,182) | (1,716,583) | 4,392,584 | 10,662,480 |
Ending balance (in shares) at Sep. 30, 2022 | 7,682,908 | |||||
Beginning balance at Mar. 31, 2023 | $ 773 | 43,355,834 | (37,715,294) | (1,247,099) | 3,833,466 | 8,227,680 |
Beginning balance (in shares) at Mar. 31, 2023 | 7,743,040 | |||||
Net income (loss) | (427,828) | 6,481 | (421,347) | |||
Conversion of preferred stock into common stock | $ 25 | 26,914 | 26,939 | |||
Conversion of preferred stock into common stock (in shares) | 250,000 | |||||
Foreign currency translation adjustment | (496,137) | 42,812 | (453,325) | |||
Ending balance at Jun. 30, 2023 | $ 798 | 43,382,748 | (38,143,122) | (1,743,236) | 3,882,759 | 7,379,947 |
Ending balance (in shares) at Jun. 30, 2023 | 7,993,040 | |||||
Beginning balance at Mar. 31, 2023 | $ 773 | 43,355,834 | (37,715,294) | (1,247,099) | 3,833,466 | 8,227,680 |
Beginning balance (in shares) at Mar. 31, 2023 | 7,743,040 | |||||
Net income (loss) | (1,628,799) | |||||
Foreign currency translation adjustment | (490,922) | |||||
Ending balance at Sep. 30, 2023 | $ 806 | 43,390,823 | (39,069,079) | (1,778,990) | 3,599,421 | 6,142,981 |
Ending balance (in shares) at Sep. 30, 2023 | 8,068,040 | |||||
Beginning balance at Jun. 30, 2023 | $ 798 | 43,382,748 | (38,143,122) | (1,743,236) | 3,882,759 | 7,379,947 |
Beginning balance (in shares) at Jun. 30, 2023 | 7,993,040 | |||||
Net income (loss) | (925,957) | (281,495) | (1,207,452) | |||
Conversion of preferred stock into common stock | $ 8 | 8,075 | 8,083 | |||
Conversion of preferred stock into common stock (in shares) | 75,000 | |||||
Foreign currency translation adjustment | (35,754) | (1,843) | (37,597) | |||
Ending balance at Sep. 30, 2023 | $ 806 | $ 43,390,823 | $ (39,069,079) | $ (1,778,990) | $ 3,599,421 | $ 6,142,981 |
Ending balance (in shares) at Sep. 30, 2023 | 8,068,040 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
Cash Flows from Operating Activities: | |||||||
Net loss | $ (1,207,452) | $ (421,347) | $ (1,179,804) | $ 243,920 | $ (1,628,799) | $ (935,884) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation of property and equipment | 223,595 | 317,935 | 458,567 | 606,482 | |||
Amortization of right-of-use assets | 214,120 | 417,836 | |||||
Amortization of intangible assets | 52,484 | 48,008 | 87,321 | 93,724 | |||
Allowance for credit losses | 680,396 | 344,436 | |||||
Impairments of inventories | 3,085 | ||||||
Gain on disposal of equipment | (27,125) | (350,967) | |||||
Change in fair value of derivative liabilities | (363,839) | (1,611,093) | $ 6 | ||||
Change in operating assets and liabilities | |||||||
Accounts receivable | 10,307 | 179,126 | |||||
Accounts receivable, a related party | (2,125) | (24,624) | |||||
Inventories | 64,539 | 324,140 | |||||
Finance lease receivables | 97,917 | 134,091 | |||||
Prepayments, other receivables and other assets | (137,549) | 766,235 | |||||
Prepayments, a related party | (149,845) | ||||||
Accounts payable | 188,790 | (9,860) | |||||
Advances from customers | 11,936 | 43,328 | |||||
Accrued expenses and other liabilities | 656,688 | 557,047 | |||||
Operating lease liabilities | (44,293) | (19,052) | |||||
Operating lease liabilities - related parties | (28,877) | (5,845) | |||||
Net Cash Provided by Operating Activities | 88,129 | 512,205 | |||||
Cash Flows from Investing Activities: | |||||||
Purchases of property and equipment | (357,909) | (1,900) | |||||
Cash received from disposal of property and equipment | 81,251 | 443,054 | |||||
Purchases of intangible assets | (26,893) | ||||||
Net Cash Provided by (Used in) Investing Activities | (276,658) | 414,261 | |||||
Cash Flows from Financing Activities: | |||||||
Borrowings from a financial institution, short-term | 99,724 | ||||||
Borrowings from a financial institution, long-term | 144,286 | ||||||
Borrowings from related parties and affiliates | 387,152 | ||||||
Repayments to related parties and affiliates | (122,824) | ||||||
Loan to related parties | (7,696) | ||||||
Repayments of current borrowings from a financial institution | (91,389) | ||||||
Principal payments of finance lease liabilities | (136,416) | (263,688) | |||||
Net Cash Provided by (Used in) Financing Activities | (22,926) | 32,075 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (91,521) | (178,230) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (302,976) | 780,311 | |||||
Cash, cash equivalents and restricted cash, beginning of the period | 1,610,090 | 1,185,221 | 1,610,090 | 1,185,221 | 1,185,221 | ||
Cash, cash equivalents and restricted cash, beginning of the period | 1,307,144 | 1,965,532 | 1,307,144 | 1,965,532 | $ 1,610,090 | ||
Cash and cash equivalents from continuing operations, end of period | $ 1,307,114 | $ 1,610,090 | $ 1,965,532 | $ 1,185,221 | 1,307,114 | 1,965,532 | |
Supplemental Cash Flow Information | |||||||
Cash paid for interest expense | 2,758 | ||||||
Non-cash Transaction in Investing and Financing Activities | |||||||
Recognition of right-of-use assets and lease liabilities | 170,025 | ||||||
Recognition of right-of-use assets and lease liabilities, related parties | $ 351,067 | $ 64,649 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
Cash and cash equivalents | $ 1,305,199 | $ 1,610,090 | $ 1,610,090 | $ 1,965,532 | $ 1,185,221 |
Restricted cash | 1,915 | ||||
Total cash, cash equivalent and restricted cash shown in the consolidated statements of cash flows, end of period | $ 1,307,114 | $ 1,610,090 | $ 1,965,532 | $ 1,185,221 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 6 Months Ended |
Sep. 30, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Senmiao Technology Limited (the “Company”) is a U.S. holding company incorporated in the State of Nevada on June 8, 2017. The Company operates its business in two segments: (i) (ii) Hunan Ruixi holds a business license for automobile sales and financial leasing and has been engaged in automobile financial leasing services and automobile sales since March 2019 and January 2019, respectively. Yicheng holds a business license for automobiles sale and has been engaged in automobile sales since June 2019. Yicheng used to have a license of financial leasing, which has been terminated since June 2022. The Company also has been engaged in operating leasing services through Hunan Ruixi and its equity investee company, Jinkailong since March 2019. Jinkailong used to facilitate automobile sales and financing transactions for its clients, who are primarily ride-hailing drivers and provides them operating lease and relevant after-transaction services. As of the issuance date of these unaudited condensed consolidated financial statements, Senmiao Consulting has made a cumulative capital contribution of RMB40.01 million (approximately $5.48 million) to XXTX and the remaining amount is expected to be paid before December 31, 2025. As of September 30, 2023, XXTX had nine wholly owned subsidiaries and two of them have operations. The following diagram illustrates the Company’s corporate structure, including its subsidiaries and equity investee company, as of the issuance date of these unaudited condensed consolidated financial statements: Former VIE Agreements with Sichuan Senmiao Senmiao Consulting, Sichuan Senmiao Ronglian Technology Co., Ltd. (“Sichuan Senmiao”) and all the shareholders of Sichuan Senmiao (the “Sichuan Senmiao Shareholders”) entered into an Equity Interest Pledge Agreement, an Exclusive Business Cooperation Agreement, an Exclusive Option Agreement, Power of Attorneys, and Timely Report Agreements in September 2017 (collectively, the “Sichuan Senmiao VIE Agreements”). For the details of such agreements, refer to the audited financial statements contained in the annual report on Form 10-K filed with the SEC on July 15, 2022. According to the VIE Agreements, Senmiao Consulting was the primary beneficiary of Sichuan Senmiao and the financial statements of Sichuan Senmiao are consolidated in the accompanying unaudited condensed consolidated financial statements. Sichuan Senmiao suffered accumulated loss of approximately $18.0 million as of March 31, 2022 with shareholders’ deficiency of $7.6 million. Due to such loss from Sichuan Senmiao, on March 23, 2022, Senmiao Consulting and other shareholders holding 94.5% equity interests of Sichuan Senmiao terminated the Sichuan Senmiao VIE Agreements and acquired Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. Sichuan Senmiao became the majority owned subsidiary of Senmiao Consulting accordingly. The termination of the Sichuan Senmiao VIE Agreements had no significant impact on the consolidated financial statements. Former Voting Agreements with Jinkailong’s Other Shareholders Hunan Ruixi entered into two voting agreements signed in August 2018 and February 2020, respectively, as amended (the “Voting Agreements”), with Jinkailong and other Jinkailong’s shareholders holding an aggregate of 65% equity interests. Pursuant to the Voting Agreements, all other Jinkailong’s shareholders will vote in concert with Hunan Ruixi on all fundamental corporate transactions in the event of a disagreement for periods of 20 years and 18 years, respectively, ending on August 25, 2038. On March 31, 2022, Ruixi entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Voting Agreements mentioned above was terminated as of the date of the Termination Agreement. The termination will not impair the past and future legitimate rights and interests of all parties in Jinkailong. As of September 30, 2023 and March 31, 2023, the parties no longer maintain a concerted action relationship with respect to the decision required to take concerted action at its shareholders meetings as stipulated in the Voting Agreements. Each party shall independently express opinions and exercise various rights such as voting rights and perform relevant obligations in accordance with the provisions of laws, regulations, normative documents and the Jinkailong’s articles of association. As a result of the Termination Agreement, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s Consolidated Financial Statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of September 30, 2023 and March 31, 2023, the paid-in capital of Jinkailong is zero. As of September 30, 2023, the Company has outstanding balance due from Jinkailong amounted to $4,250,553, net of allowance for credit loss, of which, $2,144,893 is to be repaid over a period from October 2024 to December 2026, classified as due from a related party, net, non-current portion. As of March 31, 2023, the Company has outstanding balance due from Jinkailong amounted to $5,106,100, net of allowance for credit loss, of which, $3,640,206 is to be repaid over a period from April 2024 to December 2026, classified as due from a related party, net, non-current portion (refer to Note 17). As of September 30, 2023 and March 31, 2023, allowance for credit loss due from Jinkailong amounted to $2,058,868 and $1,481,036, respectively. During the three and six months ended September 30, 2023, the Company recorded allowance for credit loss against the balance due from Jinkailong of $553,323 and $680,396, respectively. During the three and six months ended September 30, 2022, the Company recorded allowance for credit loss against the balance due from Jinkailong of $350,867. Former VIE Agreements with Youlu On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The terms of Youlu VIE Agreements were similar to the Sichuan Senmiao VIE Agreements. According to the Youlu VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the unaudited condensed consolidated financial statements. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Sep. 30, 2023 | |
GOING CONCERN | |
GOING CONCERN | 2. GOING CONCERN In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized to finance the working capital requirements of the Company. The Company’s business is capital intensive. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) the net loss of approximately $1.6 million for the six months ended September 30, 2023; (2) accumulated deficit of approximately $39.1 million as of September 30, 2023; (3) the working capital deficit of approximately $0.3 million as of September 30, 2023; and (4) two purchase commitments of approximately $1.2 million for 120 automobiles. As of the issuance date of these unaudited condensed consolidated financial statements, the Company has entered into two purchase contracts with two automobile dealers to purchase a total of 150 automobiles in the amount of approximately $2.3 million, of which, 30 automobiles of approximately $0.5 million have been purchased in cash and delivered to the Company, and approximately $0.6 million has been remitted as purchase prepayments. The remaining purchase commitment of approximately $1.2 million shall be remitted in installment to be completed before December 31, 2023. Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to curtail or cease its operations. Management is trying to alleviate the going concern risk through the following sources: ● Equity financing to support its working capital; ● Other available sources of financing (including debt) from PRC banks and other financial institutions; and ● Financial support and credit guarantee commitments from the Company’s related parties. Based on the above considerations, management is of the opinion that the Company will probably not have sufficient funds to meet its working capital requirements and debt obligations as they become due one year from the issuance date of these unaudited condensed consolidated financial statements if the Company is unable to obtain additional financing. There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as (i) changes in the demand for the Company’s services, (ii) PRC government policies, (iii) economic conditions in China and worldwide, (iv) competitive pricing in the automobile transaction and related service and ride-hailing industries, (v) changes in the Company’s relationships with key business partners, (vi) the ability of financial institutions in China to provide continued financial support to the Company’s customers, and (vii) the perception of PRC-based companies in the U.S. capital markets. The Company’s inability to secure needed financing when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s ability to continue as a going concern and results of operations. The unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of such uncertainties. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of September 30, 2023 and for the three and six months ended September 30, 2023 and 2022 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The interim unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended March 31, 2023, which was filed with the SEC on July 13, 2023. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of September 30, 2023, its unaudited results of operations for the three and six months ended September 30, 2023 and 2022, and its unaudited cash flows for the six months ended September 30, 2023 and 2022, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. (b) Foreign currency translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates on the date of the balance sheet. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company and its subsidiaries and former VIEs is U.S. dollars (“US$”) and the unaudited condensed consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the unaudited condensed consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: September 30, March 31, 2023 2023 Balance sheet items, except for equity accounts – RMB: US$1: 7.2960 6.8676 For the three months ended September 30, 2023 2022 Items in the statements of operations and comprehensive loss, and cash flows – RMB: US$1: 7.2445 6.8520 For the six months ended September 30, 2023 2022 Items in the statements of operations and comprehensive loss, and cash flows – 7.1287 6.7312 (c) Use of estimates In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values of property and equipment, lease classification and liabilities, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for credit losses for receivables, due from related parties and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, valuation of derivative liabilities, allocation of fair value of derivative liabilities. (d) Fair values of financial instruments Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and March 31, 2023: Carrying Value as of Fair Value Measurement as of September 30, 2023 September 30, 2023 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 137,943 $ — $ — $ 137,943 Fair Value Measurement as of Carrying Value as of March 31, 2023 March 31, 2023 Level 1 Level 2 Level 3 Derivative liabilities $ 501,782 $ — $ — $ 501,782 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the six months ended September 30, 2023 and for the year ended March 31, 2023: August February 2020 2021 May 2021 2019 Registered Direct Underwritten Registered Registered Direct November 2021 Offering Public Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2022 $ 1,913 $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 Derivative liabilities recognized at grant date (1,912) (10,520) (36,131) (54,052) (616,527) (46,240) (879,170) (67,337) (1,711,889) Change in fair value of derivative liabilities — — — — — — (1,533) — (1,533) BALANCE as of March 31, 2023 1 5 8,450 11,491 161,961 12,147 284,762 $ 22,965 $ 501,782 Change in fair value of derivative liabilities — — (6,803) (9,280) (122,907) (9,218) (199,781) (15,844) (363,833) Warrant forfeited due to expiration (1) (5) — — — — — — (6) BALANCE as of September 30, 2023 (unaudited) $ — $ — $ 1,647 $ 2,211 $ 39,054 $ 2,929 $ 84,981 $ 7,121 $ 137,943 The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of September 30, 2023 and March 31, 2023. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of September 30, 2023 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 Exercise price $ 6.30 $ 13.8 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 Expected term (years) 1.85 2.37 2.37 2.62 2.62 3.12 3.12 Risk-free interest rate 5.09 % 4.94 % 4.94 % 4.89 % 4.89 % 4.78 % 4.78 % Expected volatility 117 % 117 % 117 % 117 % 117 % 117 % 117 % As of March 31, 2023 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.8 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 Expected term (years) 0.22 0.22 2.35 2.87 2.87 3.12 3.12 3.62 3.62 Risk-free interest rate 1.02 % 1.02 % 4.02 % 3.95 % 4.43 % 3.80 % 3.80 % 3.74 % 3.74 % Expected volatility 120 % 120 % 120 % 120 % 120 % 120 % 120 % 120 % 120 % * As of September 30, 2023 and March 31, 2023, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, restricted cash, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and current liabilities of borrowings from a financial institution, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of finance lease receivables, operating and financing lease liabilities and borrowings from a financial institution were recorded at the gross amount adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of September 30, 2023 and March 31, 2023. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. (e) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds received from automobile purchasers as payments for automobiles, funds received from automobile lessees as payments for rentals, which were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. (f) Restricted cash Restricted cash consists of fund held in the bank accounts of Corenel was frozen by a court order with a prior business partner whom Corenel had cooperation with. The restricted cash of Corenel was RMB13,867 (approximately $1,915) as of September 30, 2023. (g) Accounts receivable Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. The carrying value of accounts receivable is reduced by an allowance that reflects the Company’s best estimate of the amounts that will not be collected. An allowance for credit losses is recorded in the period when a loss is probable based on an assessment of specific evidence indicating collection is unlikely, historical bad debt rates, accounts aging, financial conditions of the customer and industry trends. Starting from April 1, 2023, the Company adopted ASU No.2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”). The Company used a modified retrospective approach, and the adoption does not have an impact on our unaudited condensed consolidated financial statements. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of September 30, 2023 and March 31, 2023, the Company did not record allowance for credit losses, against accounts receivable. (h) Finance lease receivables Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance for credit losses when necessary. Finance lease receivables is charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. As of September 30, 2023 and March 31, 2023, the Company determined no allowance for credit losses was necessary for finance lease receivables. As of September 30, 2023 and March 31, 2023, finance lease receivables consisted of the following: September 30, March 31, 2023 2023 (unaudited) Minimum lease payments receivable $ 247,527 $ 297,960 Less: Unearned interest (67,324) (80,713) Financing lease receivables $ 180,203 $ 217,247 Finance lease receivables, current portion $ 104,989 $ 146,114 Finance lease receivables, non-current portion $ 75,214 $ 71,133 Future scheduled minimum lease payments for investments in sales-type leases as of September 30, 2023 are as follows: Minimum future payments receivable Twelve months ending September 30, 2024 $ 132,636 Twelve months ending September 30, 2025 89,760 Twelve months ending September 30, 2026 25,131 Total $ 247,527 (i) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other equipment, which are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three and six months ended September 30, 2023 and 2022, the Company did not recognize impairment for property and equipment. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated statements of operations and comprehensive loss. (j) Loss per share Basic loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of outstanding shares of common stock, adjusted for outstanding shares of common stock that are subject to repurchase. For the calculation of diluted loss per share, net loss attributable to stockholders for basic loss per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net loss per share if their inclusion is anti-dilutive. As of September 30, 2023, the Company’s dilutive securities from the outstanding series A convertible preferred stock are convertible into approximately 495,706 shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. (k) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the unaudited condensed consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. (l) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is entered into by the parties, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of September 30, 2023, the Company had outstanding contracts for automobile transaction and related services amounting to $4,163, which is expected to be completed within twelve months after September 30, 2023. Disaggregated information of revenues by business lines are as follows: For the Three Months Ended For the Six Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services Operating lease revenues from automobile rentals $ 1,020,993 $ 937,234 $ 2,077,387 $ 1,789,749 - Financing revenues 11,340 11,295 24,940 22,359 - Service fees from automobile management and guarantee services 6,598 9,638 13,190 22,744 - Revenues from sales of automobiles 3,778 157,007 8,822 226,705 - Service fees from NEVs leasing 4,626 102,176 24,897 242,673 - Service fees from automobile purchase services — 6,794 12,232 21,582 - Other service fees 135,803 44,355 210,778 96,963 Total revenues from Automobile Transaction and Related Services 1,183,138 1,268,499 2,372,246 2,422,775 Online Ride-hailing Platform Services 643,813 972,703 1,549,419 2,160,223 Total Revenues $ 1,826,951 $ 2,241,202 $ 3,921,665 $ 4,582,998 Automobile transaction and related services Operating lease revenues from automobile rentals –The Company generates revenue from sub-leasing automobiles to some online ride-hailing drivers or third-parties and leasing its own automobiles. The Company recognizes revenue wherein an automobile is transferred to the lessees and the lessees has the ability to control the asset, is accounted for under ASC Topic 842. Rental transactions are satisfied over the rental period and is recognized over time. As the operating lease revenue are variable in nature which is based on online ride-hailing drivers or third-parties’ performance for a certain period, the Company recognized the revenue from operating lease by using the output method based on periodic settlement between the Company and the online ride-hailing drivers or third-parties when such revenue is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Rental periods are short term in nature, generally are twelve months or less. Financing revenues - Interest income from the lease arising from the Company’s sales-type leases and bundled lease arrangements are recognized as financing revenues over the lease term based on the effective rate of interest in the lease. Service fees from automobile management and guarantee services – Over 95% of the Company’s customers are online ride-hailing drivers. Some of the drivers sign affiliation agreements with the Company, pursuant to which the Company provides them with management and guarantee services during the affiliation period. Service fees for management and guarantee services are paid by such automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. The Company recognizes revenue over the affiliation period when performance obligations are completed. Sales of automobiles – The Company generated revenue from sales of automobiles to the customers of Hunan Ruixi. The control over the automobile is transferred to the purchaser along with the delivery of automobiles. The amount of the revenue is based on the sale price agreed by Hunan Ruixi and the customers. The Company recognizes revenues when an automobile is delivered and control is transferred to the purchaser at a point in time. Accounts receivable related to the revenue are being collected within 12 months. Service fees from NEVs leasing and automobile purchase services - Services fees from NEVs leasing and automobile purchase services are paid by some lessees who rent new energy electric vehicles from the Company or automobile purchasers for a series of the services provided to them throughout the purchase process such as credit assessment, installment of GPS devices, ride-hailing driver qualification and other administrative procedures. The amount of services fees for NEVs leasing is based on the product solutions while the fees for purchase is based on the sales price of the automobiles and relevant services provided. The Company recognizes revenue when all the services are completed and an automobile is delivered to the lessee or purchaser at a point in time. Accounts receivable related to the revenue from NEVs leasing and automobile purchase services is collected upon the NEVs are delivered to lessees or purchaser. Online ride-hailing platform services The Company generates revenue from providing services to online ride-hailing drivers (“Drivers”) to assist them in providing transportation services to riders (“Riders”) looking for taxi/ride-hailing services. The Company earns commissions for each completed ride in an amount equal to the difference between an upfront quoted fare and the amount earned by a Driver based on actual time and distance for the ride charged to the Rider. As a result, the Company bears a single performance obligation in the transaction of connecting Drivers with Riders to facilitate the completion of a successful transportation service for Riders. The Company recognizes revenue upon completion of a ride as the single performance obligation is satisfied and the Company has the right to receive payment for the services rendered upon the completion of the ride. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the service provided to the Rider and is the principal (i.e., “gross”), or it arranges for other parties to provide the service to the Rider and is an agent (i.e., “net”). Since the Company is not primarily responsible for ride-hailing services provided to Riders, it does not have discretion in establishing the price of the online ride-hailing service and inventory risk related to the services as the Company earns commissions for each completed order as the difference between an upfront quote fare and the amount earned by a driver based on actual time and distance for ride charged to the rider. Thus, the Company recognizes revenue at a net basis. Leases - Lessor The Company recognized revenue as lessor in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75)%; and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90)%. Automobiles included in arrangements meeting these conditions are accounted for as sales-type leases. Interest income from the lease is recognized in financing revenues over the lease term. Automobile included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. The Company excludes from the measurement of its lease revenues any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company considers the economic life of most of the automobiles to be three The Company’s lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon the local prevailing rates in the marketplace where its customer will be able to obtain an automobile loan under similar terms from the bank. The Company reassesses its pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. As of September 30, 2023, the Company’s pricing interest rate was 6.0% per annum. (m) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amounts as of the balance sheet dates. As of September 30, 2023 and March 31, 2023, approximately $24,000 and $79,000, respectively, were deposited with a bank in the United States which is insured by the U.S. government up to $250,000. As of September 30, 2023 and March 31, 2023, approximately $1,140,000 and $1,190,000, respectively, were deposited in financial institutions located in mainland China, which were insured by the government authority. Under the Deposit Insurance System in China, an enterprise’s deposits at one bank are insured for a maximum of approximately $69,000 (RMB500,000). To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out entirely in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the social, political, economic and legal environments in the PRC as well as by the general state of the PRC economy. In addition, the Company’s business may be influenced by changes in PRC government laws, rules and policies with respect to, among other matters, anti-inflationary measures, currency conversion and remittance of currency outside of Chin |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Sep. 30, 2022 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS Discontinued operations- Online P2P lending services On October 17, 2019, the Board approved the plan under which the Company has discontinued and is winding down its online P2P lending services business (the “Plan”). The Company determined that the operation of its online P2P lending services business was not viable in light of the tightened regulations on online peer-to-peer lending in China generally and the unofficial request from local regulator to reduce the Company’s online peer-to-peer lending transaction volume on a monthly basis. The Company also determined that the discontinuation of its online P2P lending services business would allow the Company to focus its resources on its automobile financing facilitation and transaction business. In connection with the Plan, the Company ceased facilitation of loan transactions on its online lending platform and assumed all the outstanding loans from investors on the platform. The decision and action taken by the Company of discontinuing the online lending services business represented a major shift that had a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The fair value of discontinued operations, determined as of October 17, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations including the assumption of all the outstanding loans from investors on the platform, $143,668 of accounts receivable, $3,760,599 of other receivables, and $143,943 of prepayments for impaired intangible assets were indicated as of the date the Company’s Board of Directors approved the Plan on October 17, 2019, and the Company recognized $4,048,210 provision for doubtful accounts as of December 31, 2019 related to the Company’s online lending services business, while the Company did not recognize any additional provision for doubtful accounts for the three and six months ended September 30, 2023. The following table sets forth the reconciliation of the carrying amounts of major classes liabilities from discontinued operations of Online P2P lending services in unaudited condensed consolidated balance sheet as of September 30, 2023 and consolidated balance sheets as of March 31, 2023. Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: September 30, March 31, 2023 2023 (Unaudited) Current liabilities Accrued expenses and other liabilities $ 459,186 $ 487,829 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Sep. 30, 2023 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 5. ACCOUNTS RECEIVABLE Accounts receivable include a portion of bundled lease arrangements on fixed minimum monthly payments to be paid by the automobile purchasers arising from automobile sales and services fees, net of unearned interest income, discounted using the Company’s lease pricing interest rates. It also includes online ride-hailing services fees due from online ride-hailing drivers and rental receivables due from operating lessees. As of September 30, 2023 and March 31, 2023, accounts receivable were comprised of the following: September 30, March 31, 2023 2023 (Unaudited) Receivables of automobile sales due from automobile purchasers $ 18,306 $ 76,106 Receivables of online ride hailing fees from online ride-hailing drivers 35,782 51,290 Receivables of operating lease 28,200 31,039 Less: Allowance for credit losses — — Accounts receivable $ 82,288 $ 158,435 Movement of allowance for credit losses for the six months ended September 30, 2023 and for the year ended March 31, 2023 are as follows: September 30, March 31, 2023 2023 (Unaudited) Beginning balance $ — $ 112,905 Addition — 3,394 Write off — (107,868) Translation adjustment — (8,431) Ending balance $ — $ — |
INVENTORIES
INVENTORIES | 6 Months Ended |
Sep. 30, 2023 | |
INVENTORIES | |
INVENTORIES | 6. INVENTORIES September 30, March 31, 2023 2023 (Unaudited) Automobiles (i) $ — $ 6,678 (i) As of March 31, 2023, the Company owned an automobile with a total value of $6,678 , net of impairment, for sale or sales-type leases. For the three and six months ended September 30, 2022, the Company recognized impairments of $0 and $3,085, respectively for certain automobiles for sale. |
PREPAYMENTS, OTHER RECEIVABLES
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET | 6 Months Ended |
Sep. 30, 2023 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET | 7. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET As of September 30, 2023 and March 31, 2023, the prepayments, other receivables and other assets, net were comprised of the following: September 30, March 31, 2023 2023 (Unaudited) Deposits (i) $ 766,111 $ 679,794 Prepaid expenses (ii) 378,745 334,297 Receivables from aggregation platforms (iii) 271,595 271,791 Value added tax (“VAT”) recoverable (iv) 35,393 86,051 Due from automobile purchasers, net (v) 10,001 45,489 Employee advances 7,241 11,482 Others 22,505 9,339 Total prepayments, other receivables and other assets, net $ 1,491,591 $ 1,438,243 (i) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (ii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense, etc. that will expire within one year. (iii) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. (iv) Value added tax (“VAT”) recoverable The balance represented the amount of VAT, which resulted from historical purchasing activities and could be further used for deducting future VAT in PRC. (v) Due from automobile purchasers, net The balance due from automobile purchasers represented the payments of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. As of September 30, 2023 and March 31, 2023, the Company did not record allowance for credit losses against receivables due from automobile purchasers. During the three and six months ended September 30, 2023, the Company did not record nor recover allowance against the balance from automobile purchasers. During the three and six months ended September 30, 2022, the Company recovered allowances against the balance due from automobile purchasers of $0 and $6,431, respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Sep. 30, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: September 30, March 31, 2023 2023 (Unaudited) Leasehold improvements $ 172,458 $ 183,216 Computer equipment 35,268 37,932 Office equipment, fixtures and furniture 73,771 78,372 Automobiles 4,590,503 4,679,927 Subtotal 4,872,000 4,979,447 Less: accumulated depreciation and amortization (1,926,770) (1,635,990) Total property and equipment, net $ 2,945,230 $ 3,343,457 Depreciation expense for the three and six months ended September 30, 2023 were amounted to $223,595 and $458,567, respectively. Depreciation expense for the three and six months ended September 30, 2022 were amounted to $317,935 and $606,482, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended |
Sep. 30, 2023 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: September 30, March 31, 2023 2023 (Unaudited) Software $ 790,834 $ 793,381 Online ride-hailing platform operating licenses 415,631 441,557 Subtotal 1,206,465 1,234,938 Less: accumulated amortization (532,956) (460,614) Total intangible assets, net $ 673,509 $ 774,324 Amortization expense for the three and six months ended September 30, 2023 were amounted to $52,484 and $87,321, respectively. Amortization expense for the three and six months ended September 30, 2022 were amounted to $48,008 and $93,724, respectively. The following table sets forth the Company’s amortization expense for the next five years ending: Amortization expenses Twelve months ending September 30, 2024 $ 179,607 Twelve months ending September 30, 2025 134,048 Twelve months ending September 30, 2026 89,638 Twelve months ending September 30, 2027 77,593 Twelve months ending September 30, 2028 77,364 Thereafter 115,259 Total $ 673,509 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 6 Months Ended |
Sep. 30, 2023 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 10. OTHER NON-CURRENT ASSETS September 30, March 31, 2023 2023 (Unaudited) Prepayments of automobiles purchased (i) $ 633,224 $ 716,407 (i) In September 2022 and March 2023, the Company entered into two automobile purchase agreements (“Purchase Agreements”) with two third parties to purchase a total of 150 automobiles which amounted to $2,301,261 . As of September 30, 2023, the Company has made prepayments of $633,224 towards the remaining purchase pertaining to the Purchase Agreements. The Company expects to complete the remaining purchase by December 31, 2023. |
BORROWINGS FROM A FINANCIAL INS
BORROWINGS FROM A FINANCIAL INSTITUTION | 6 Months Ended |
Sep. 30, 2023 | |
BORROWINGS FROM A FINANCIAL INSTITUTION | |
BORROWINGS FROM A FINANCIAL INSTITUTION | 11. BORROWINGS FROM A FINANCIAL INSTITUTION Interest September 30, March 31, Bank name Maturity date rate 2023 2023 WeBank* 09/11/2025 12.24 % $ 246,710 — SDIC Taikang Trust Co. Ltd Fully Repaid on 13.04 % — $ 8,813 Total $ 246,710 $ 8,813 Borrowing from a financial institution, current $ 105,733 $ 8,813 Borrowing from a financial institution, non-current $ 140,977 $ — * On September 11, 2023, the Company entered into a loan agreement (the “Loan Agreement”) with WeBank for a total amount of approximately $246,710. Pursuant to the Loan Agreement, the borrowing bears an interest rate of 12.24% per annum with monthly repayments consist of principal and interest for two years. As of September 30, 2023, the current portion of the loan principal balance to be repaid within the next twelve months was amounted to $105,733, while the noncurrent portion of the loan principal to be repaid after September 30, 2024 was amounted to $140,977. The total interest expense for the three and six months ended September 30, 2023 was $2,233 and $2,758, respectively. The interest expense for the three and six months ended September 30, 2022 was zero. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended |
Sep. 30, 2023 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 12. ACCRUED EXPENSES AND OTHER LIABILITIES September 30, March 31, 2023 2023 (Unaudited) Accrued payroll and welfare $ 1,669,082 $ 1,636,092 Payables to drivers from aggregation platforms (i) 1,221,391 1,103,892 Deposits (ii) 868,168 730,002 Accrued expenses 346,145 226,721 Payables for expenditures on automobile transaction and related services (iii) 26,525 31,719 Other taxes payable 85,023 83,432 Loan repayments received on behalf of financial institutions 7,139 16,130 Other payables 60,051 37,348 Total accrued expenses and other liabilities 4,283,524 3,865,336 Total accrued expenses and other liabilities – discontinued operations (459,186) (487,829) Total accrued expenses and other liabilities – continuing operations $ 3,824,338 $ 3,377,507 (i) Payables to drivers from aggregation platforms The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (ii) Deposits The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iii) Payables for expenditures on automobile transaction and related services The balance of payables for expenditures on automobile transaction and related services represented the payables balance to the miscellaneous expenses related to the daily operations of automobiles. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended |
Sep. 30, 2023 | |
EMPLOYEE BENEFIT PLAN | |
EMPLOYEE BENEFIT PLAN | 13. EMPLOYEE BENEFIT PLAN The Company has made employee benefit plan in accordance with relevant PRC regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The contributions made by the Company were $76,692 and $151,535 for the three and six months ended September 30, 2023, respectively, from operations of the Company. The contributions made by the Company were $104,577 and $230,641 for the three and six months ended September 30, 2022, respectively, for the Company’s operations. As of September 30, 2023 and March 31, 2023, the Company did not make adequate employee benefit contributions in the amount of $1,065,299 and $1,086,526, respectively. |
EQUITY
EQUITY | 6 Months Ended |
Sep. 30, 2023 | |
EQUITY | |
EQUITY | 14. EQUITY Warrants IPO Warrants The registration statement relating to the Company’s initial public offering also included the underwriters’ common stock purchase warrants to purchase 33,794 (337,940 pre reverse split) shares of common stock (“IPO Underwriter’s Warrants”). Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $48.0 ($4.80 before reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018. As of September 30, 2023, the remaining 3,794 warrants of the Company’s initial public offering has been forfeited due to expiration. Warrants in Offerings The Company adopted the provisions of ASC 815 on determining what types of instruments or embedded features in an instrument held by a reporting entity can be considered indexed to its own stock for the purpose of evaluating the first criteria of the scope exception in ASC 815. Warrants issued in connection with the direct equity offering with exercise prices denominated in US dollars are no longer considered indexed to the Company’s stock, as their exercise prices are not in the Company’s functional currency (RMB), and therefore no longer qualify for the scope exception and must be accounted for as a derivative. These warrants are classified as liabilities under the caption “Derivative liabilities” in the unaudited condensed consolidated statements of balance sheets and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. Changes in the liability from period to period are recorded in the unaudited condensed consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities.” 2019 Registered Direct Offering Warrants As of March 31, 2023, there were 16,841 2019 registered direct offering warrants outstanding with fair value of $6. During the six months ended September 30, 2023, the Company has forfeited the remaining 16,841 2019 registered direct offering warrants as it expired. During the three and six months ended September 30, 2022, the change of fair value was a gain of $922 and $11,696 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. August 2020 Underwriters’ Warrants As of September 30, 2023 and March 31, 2023, there were 31,808 underwriters’ warrants outstanding. During the three and six months ended September 30, 2023, the change of fair value was a gain of $1,122 and $6,803 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2023, respectively. During the three and six months ended September 30, 2022, the change of fair value was a gain of $2,218 and $33,346 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. As of September 30, 2023 and March 31, 2023, the fair value of the derivative instrument totaled $1,647 and $8,450, respectively. February 2021 Registered Direct Offering Warrants As of September 30, 2023 and March 31, 2023, there were 53,262 February 2021 registered direct offering warrants outstanding. During the three and six months ended September 30, 2023, the change of fair value was a gain of $1,496 and $9,280 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2023, respectively. During the three and six months ended September 30, 2022, the change of fair value was a gain of $3,138 and $49,629 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. As of September 30, 2023 and March 31, 2023, the fair value of the derivative instrument totaled $2,211 and $11,491, respectively. May 2021 Registered Direct Offering Warrants As of September 30, 2023, there were 594,682 May 2021 registered direct offering warrants outstanding. During the three and six months ended September 30, 2023, the change of fair value was a gain of $21,792 and $132,125 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2023. During the three and six months ended September 30, 2022, the change of fair value was a gain of $53,971 and $629,066 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022. As of September 30, 2023 and March 31, 2023, the fair value of the derivative instrument totaled $41,983 and $174,108, respectively. November 2021 Private Placement Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty (20) consecutive trading day period ending and including the trading day immediately preceding the sixteenth (16th) trading day after such Stock Combination Event date, divided by (y) five (5)) is less than the original exercise price of $0.82 then in effect, then on the sixteenth (16th) trading day immediately following such Stock Combination Event, the exercise price then in effect on such sixteenth (16th) trading day shall be reduced (but in no event increased) to the event market price. As the 1-for-10 As of September 30, 2023 and March 31, 2023, there were 5,365,911 for November 2021 Private Placement Warrants outstanding. During the three and six months ended September 30, 2023, the change of fair value was a gain of $35,256 and $215,625 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities, respectively. During the three and six months ended September 30, 2022, the change of fair value was a loss of $77,666 and a gain of $887,356 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022. On November 18, 2022, a holder of November 2021 private placement warrants exercised the warrants on a “cashless” basis. Upon exercise of above-mentioned warrants, the Company reduced the fair value of the warrants and increased the additional paid in capital by $1,533. As of September 30, 2023 and March 31, 2023, the fair value of the derivative instrument totaled $92,102 and $307,727, respectively Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2022 6,091,298 6,091,298 $ 2.28 4.32 Exercised (25,000) (25,000) — — Balance, March 31, 2023 6,066,298 6,066,298 $ 2.29 3.56 Forfeited (20,635) (20,635) — — Balance, September 30, 2023 (unaudited) 6,045,663 6,045,663 $ 2.25 3.06 Restricted Stock Units On October 29, 2020, the Board approved the issuance of an aggregate of 127,273 restricted stock units (“RSUs”) to directors, officers and certain employees as stock compensation for their services for the six months ended September 30, 2022. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $140,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee. As of the issuance date of these unaudited condensed consolidated financial statements, all installment of RSUs with an aggregate of 12,727 (127,273 pre reverse split) was vested and 9,545 (95,457 pre reverse split) was settled by the Company. The Company expects to settle the remaining vested RSUs by issuance of shares of common stock before December 31, 2023 and account for the vested RSUs as an addition to both expenses and additional paid-in capital. Equity Incentive Plan At the 2018 Annual Meeting of Stockholders of the Company held on November 8, 2018, the Company’s stockholders approved the Company’s 2018 Equity Incentive Plan for employees, officers, directors and consultants of the Company and its affiliates. At the 2022 Annual Meeting of Stockholders of Company held on March 30, 2023, the Company’s stockholders approved the amendment to the 2018 Equity Incentive Plan, to increase the number of shares of common stock reserved under the Plan to 1,500,000 shares. A committee consisting of at least two independent directors would be appointed by the Board or in the absence of such a committee, the board of directors, will be responsible for the general administration of the Equity Incentive Plan. All awards granted under the Equity Incentive Plan will be governed by separate award agreements between the Company and the participants. As of September 30, 2023, the Company has granted an aggregate of 30,379 RSUs and issued an aggregate of 26,447 shares under the Equity Incentive Plan and 750 RSUs were forfeited due to two directors ceased to serve on the board of the Company since November 8, 2018. 1-for- 10 shares reverse split on common stock The Company considered the above transactions after giving a retroactive effect to a 1-for-10 reverse stock split of its common stock which became effective on April 6, 2022. The Company believed it is appropriate to reflect the above transactions on a retroactive basis similar to those after a stock split or dividend pursuant to ASC 260. All shares and per share amounts used herein and in the accompanying unaudited condensed consolidated financial statements have been retroactively stated to reflect the effect of the reverse stock split. Upon execution of the 1-for-10 reverse stock split, the Company recognized additional 8,402 shares of common stock due to round up issue. Conversion Price Adjustment for November 2021 Preferred Shares Pursuant to the Certificate of Designation for the series A convertible preferred stock signed by the Company and certain institutional investors in November 2021 Private Placement, the initial conversion price of the series A Convertible Preferred Shares was $0.68. If as of the applicable date the conversion price then in effect is greater than the greater of (1) $0.41 (the “floor Price”) (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (2) 85% of the closing bid price on the applicable date (the “Adjustment Price”), the conversion price shall automatically lower to the Adjustment Price accordingly. As the 1-for-10 reverse stock split on the Company’s Common Stock became effective on April 6, 2022, the conversion price of the Preferred Shares was adjusted to $4.1. As of September 30, 2023 and March 31, 2023, there were 991 and 1,641 shares of Series A convertible preferred stock outstanding, respectively, valued at $234,364 and $269,386, recorded as mezzanine equity. As of September 30, 2023, 4,009 shares of Series A convertible preferred stock were converted into 1,871,125 shares of the Company’s common stock. Further, on August 9, 2022, the Company and the investors agreed to reduce the conversion price of the series A Convertible Preferred Shares from $4.10 to $2.00 and to increase the number of the shares of common stock that are available to be issued upon conversion of the Preferred Shares from 1,092,683 to 2,240,000. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Sep. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | 15. INCOME TAXES The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income taxes with tax rate of 21%. The State of Nevada does not impose any state corporate income tax. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Tax Act also stablished the Global Intangible Low-Taxed Income (GILTI), a new inclusion rule affecting non-routine income earned by foreign subsidiaries. For the six months ended September 30, 2023 and 2022, the Company’s foreign subsidiaries in China were operating at loss and as such, did not record a liability for GILTI tax. The Company’s net operating loss for U.S. income taxes from U.S for the six months ended September 30, 2023 and 2022 amounted to approximately $0.6 million and $0.8 million respectively. As of September 30, 2023 and March 31, 2023, the Company’s net operating loss carryforward for U.S. income taxes was approximately $7.8 million and $7.1 million, respectively. The net operating loss carryforward will not expire and is available to reduce future years’ taxable income, but limited to 80% of income until utilized. Management believes that the utilization of the benefit from this loss appears uncertain due to the Company’s operating history. Accordingly, the Company has recorded a 100% valuation allowance on the deferred tax asset to reduce the deferred tax assets to zero on the unaudited condensed consolidated balance sheets. As of September 30, 2023 and March 31, 2023, valuation allowances for deferred tax assets related to net operating loss carry forward for U.S. income taxes were approximately $1.6 million and $1.5 million, respectively. Management reviews the valuation allowance periodically and makes changes accordingly. PRC Senmiao Consulting, Sichuan Senmiao, Hunan Ruixi, Ruixi Leasing, Yicheng, Corenel, Jiekai and XXTX and its subsidiaries are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. The EIT rate for companies operating in the PRC is 25%. During the three and six months ended September 30, 2023 and 2022, no income taxes was recorded in those PRC companies. As of September 30, 2023 and March 31, 2023, the Company’s PRC entities from continuing operations had net operating loss carryforwards of approximately $11.2 million and $9.6 million, respectively, which will expire starting from 2025 and ending in 2027. In addition, allowance for credit losses must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The bad debt allowances are incurred in Company’s PRC subsidiaries and former VIEs which were operating at losses, the Company believes it is more likely than not that its PRC operations will be unable to fully utilize its deferred tax assets related to the net operating loss carryforwards in the PRC. As a result, the Company provided 100% allowance on all deferred tax assets on net operating loss carryforwards in the PRC of $2,585,096 and $2,403,785 related to its continuing operations in the PRC as of September 30, 2023 and March 31, 2023, respectively and provided 100% allowance on all deferred tax assets on allowance for doubtful account of $378,959 and $402,599 related to its continuing operations in the PRC as of September 30, 2023 and March 31, 2023, respectively. The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: September 30, March 31, 2023 2023 (Unaudited) Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,585,096 $ 2,403,785 Net operating loss carryforwards in the U.S. 1,633,296 1,499,607 Allowance for credit losses 378,959 402,599 Less: valuation allowance (4,597,351) (4,305,991) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 40,409 $ 42,930 Deferred tax liabilities, net $ 40,409 $ 42,930 As of September 30, 2023 and March 31, 2023, the Company’s PRC entities associated with discontinued operations had net operating loss carryforwards of approximately $1.8 million and $1.9 million, respectively which will start to expire from 2024 to 2027. Meanwhile, net operating loss carry forward as of September 30, 2023 in the PRC from discontinued operations was reduced due to certain adjustments by PRC tax authorities. In addition, allowance for credit losses must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will not be fully realized. As of September 30, 2023 and March 31, 2023, full valuation allowance is provided against the deferred tax assets related to the Company’s discontinued operations based upon management’s assessment as to their realization. The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: September 30, 2023 March 31, 2023 (Unaudited) Net operating loss carry forwards in the PRC $ 451,229 $ 479,377 Less: valuation allowance (451,229) (479,377) Total $ — $ — |
CONCENTRATION
CONCENTRATION | 6 Months Ended |
Sep. 30, 2023 | |
CONCENTRATION | |
CONCENTRATION | 16. CONCENTRATION Major Suppliers For the three months ended September 30, 2023, four suppliers accounted for approximately 19.2%, 12.8%, 13.3%, and 11.1% of the total costs of revenue from operations of the Company. For the six months ended September 30, 2023, four suppliers accounted for approximately 21.5%, 13.2%, 13.1%, and 12.4% of the total cost of revenues. For the three months ended September 30, 2022, two suppliers accounted for approximately 20.2% and 10.4% of the total costs of revenue. For the six months ended September 30, 2022, two suppliers accounted for approximately 21.1% and 12.3% of the total cost of revenues. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 6 Months Ended |
Sep. 30, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | 17. RELATED PARTY TRANSACTIONS AND BALANCES 1. Related Party Balances 1) Accounts receivable, a related party As of September 30, 2023 and March 31, 2023, accounts receivable from a related party amounted to $8,018 and $6,312, respectively, represented balance due from operating lease revenue recognized from Jinkailong, the Company’s equity investee company. 2) Prepayments to a related party As of September 30, 2023 and March 31, 2023, the balance of prepayment to a related party represented automobile lease prepayment made by the Company to Jinkailong, the Company’s equity investee company, with amount of $146,409 and $0, respectively. 3) Due from related parties As of September 30, 2023 and March 31, 2023, balances due from related parties from the Company’s operations were comprised of the following: September 30, March 31, 2023 2023 (Unaudited) Total due from related parties $ 6,327,062 $ 6,610,156 Less: Allowance for credit losses (2,058,868) (1,481,036) Due from related parties, net $ 4,268,194 $ 5,129,120 Due from related parties, net, current portion $ 2,123,301 $ 1,488,914 Due from a related party, net, non-current portion $ 2,144,893 $ 3,640,206 As of September 30, 2023, balances due from Jinkailong, the Company’s equity investee company of $4,250,553, net of allowance for credit losses, of which, $2,144,893 is to be repaid over a period from October 2024 to December 2026, which was classified as due from a related party, net, non-current. The balances due from Jinkailong consist of outstanding balance of $3,772,437 as a result of Jinkailong’s deconsolidation on March 31, 2022 and $478,116 represents revenue collected by Jinkailong on behalf of the Company’s subsidiary, Jiekai. As of March 31, 2023, balances due from Jinkailong of $5,106,100, represented balance due from Jinkailong as result of Jinkailong’s deconsolidation on March 31, 2022, of which, $3,640,206 is to be repaid over a period from April 2023 to December 2026, which was classified as due from a related party, non-current. Movement of allowance for credit losses due from Jinkailong for September 30, 2023 and March 31, 2023 are as follows: September 30, March 31, 2023 2023 (Unaudited) Beginning balance $ 1,481,036 $ — Addition 680,396 1,484,495 Translation adjustment (102,564) (3,459) Ending balance $ 2,058,868 $ 1,481,036 As of September 30, 2023 and March 31, 2023, balance due from Youlu, the Company’s former VIE as result of Youlu’s deconsolidation in March 2022 were amounted to $17,641 and $23,020, respectively. 4) Due to a related party September 30, March 31, 2023 2023 (Unaudited) Loan payable to a related party (i) $ 1,510 $ 8,667 (i) As of September 30, 2023 and March 31, 2023, the balances represented borrowings from Xi Wen, the CEO of the Company, of which, $1,510 and $8,667 are unsecured, interest free and due on demand, respectively. 5) Operating lease right-of-use assets, net, related parties and Operating lease liabilities - related parties September 30, March 31, 2023 2023 (Unaudited) Lease I (i) $ 287,660 $ — Lease II (ii) 68,976 92,916 Total Operating lease right-of-use assets - related parties $ 356,636 $ 92,916 September 30, March 31, 2023 2023 (Unaudited) Lease I (i) $ 242,392 $ 82,069 Lease II (ii) 51,094 61,393 Total Operating lease liabilities, current - related parties $ 293,486 $ 143,462 September 30, March 31, 2023 2023 (Unaudited) Lease I (i) $ 175,949 $ — Lease II (ii) 20,172 42,247 Total Operating lease liabilities, non-current - related parties $ 196,121 $ 42,247 (i) On March 31, 2023, the Company entered into two office lease agreements with Hong Li, supervisor of Sichuan Senmiao, with a leasing term from April 1, 2023 to March 31, 2026. On March 1, 2021, the Company entered into an office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. In October 2022, the Company terminated the leases signed on March 1, 2021 and April 1, 2021. (ii) In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed on June 2022 which extended the original lease to May 2025. 2. Related Party Transactions For the three and six months ended September 30, 2023, the Company incurred $29,956 and $60,283, respectively, in rental expenses to Hong Li, supervisor of Sichuan Senmiao, pursuant to three office lease agreements. For the three and six months ended September 30, 2022, the Company incurred $47,023 and $108,509, respectively, in rental expenses to Hong Li, supervisor of Sichuan Senmiao, pursuant to three office lease agreements. For the three and six months ended September 30, 2023, the Company incurred $10,481 and $20,618, respectively, in rental expenses to Dingchentai, a company where one of the Company’s independent directors serves as legal representative and general manager. For the three and six months ended September 30, 2022, the Company incurred $20,327 and $34,870, respectively, in rental expenses to this related party. The Company had reached cooperation with Jinkailong, the Company’s equity investee company, that the drivers who leased automobile from Jinkailong completed their online ride-hailing requests and orders through the company’s ride-hailing platform, and the company will pay Jinkailong a certain promotion service fee. During the three and six months ended September 30, 2023, the company incurred promotion fee of $0 and $11,434 payable to Jinkailong. During the three and six months ended September 30, 2022, the company incurred promotion fee of $24,026 and $68,209 from Jinkailong, respectively. During the three and six months ended September 30, 2023, Corenel leased automobiles to Jinkailong and generated revenue of $8,399 and $22,147, while Jiekai leased automobiles from Jinkailong and had a rental cost of $182,165 and $392,344 respectively. During the three and six months ended September 30, 2022, Corenel leased automobiles to Jinkailong and generated revenues of $77,113 and $292,573, and Jiekai leased automobiles from Jinkailong and had a rental cost of $102,160 and $148,502, respectively. |
LEASES
LEASES | 6 Months Ended |
Sep. 30, 2023 | |
LEASES | |
LEASES | 18. LEASES Lessor The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. Revenue recognition section of Note 3 (r), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the six months ended September 30, 2023. Lessee As of September 30, 2023 and March 31, 2023, the Company has engaged in offices and showroom leases which were classified as operating leases. The Company leased automobiles under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. In addition, the Company had automobiles leases which were classified as finance lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on a straight-line basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using effective interest rate of 4.0% to 6.0%, which is determined using an incremental borrowing rate with similar term in the PRC. As of September 30, 2023, the weighted-average remaining operating and finance lease term of its existing leases is approximately 2.45 and 2.03 years, respectively. Operating and finance lease expenses consist of the following: For the Three Months Ended For the Six Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Classification (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost Automobile lease costs Cost of revenues $ 544,982 $ 521,632 $ 1,060,856 $ 1,057,955 Lease expenses Selling, general and administrative 60,486 107,434 125,772 225,260 Finance lease cost Amortization of leased asset Cost of revenue 58,991 58,630 120,659 129,053 Amortization of leased asset General and administrative — 82,245 282 134,635 Interest on lease liabilities Interest expenses on finance leases 7,594 1,153 16,316 8,301 Total lease expenses $ 672,053 $ 771,094 $ 1,323,885 $ 1,555,204 Operating lease costs for automobiles totaled $544,982 and $521,632 for the three months ended September 30, 2023 and 2022, respectively. Operating lease cost for automobiles totaled $1,060,856 and $1,057,955 for the six months ended September 30, 2023 and 2022, respectively. Operating lease expenses for offices and showroom leases totaled $60,486 and $107,434 for the three months ended September 30, 2023 and 2022, respectively, of which $45,509 and $58,515 were amortization of leased asset for operating leases for the three months ended September 30, 2023 and 2022, respectively. Operating lease expense for office and showroom leases totaled $125,772 and $225,260 for the six months ended September 30, 2023 and 2022 respectively, of which $93,179 and $154,148 were amortization of leased asset for operating leases for the six months ended September 30, 2023 and 2022, respectively Interest expenses on finance leases totaled $7,594 and $16,316 for the three and six months ended September 30, 2023, respectively. Interest expenses on finance leases totaled $1,153 and $8,301 for the three and six months ended September 30, 2022, respectively. The following table sets forth the Company’s minimum lease payments in future periods: *Operating lease Finance lease payments payments Total Twelve months ending September 30, 2024 $ 333,926 $ 255,360 $ 589,286 Twelve months ending September 30, 2025 188,616 254,934 443,550 Twelve months ending September 30, 2026 83,943 — 83,943 Total lease payments 606,485 510,294 1,116,779 Less: discount (24,269) (29,757) (54,026) Present value of lease liabilities $ 582,216 $ 480,537 $ 1,062,753 * |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Contingencies In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers’ default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance, when necessary, as the Company is the guarantor of the loans. Purchase commitments On September 23, 2022, the Company entered into a purchase contract with an automobile dealer to purchase a total of 100 automobiles for the amount of approximately $1.5 million. As of the issuance date of these unaudited condensed consolidated financial statements, the Company has remitted approximately $0.6 million as purchase prepayments, and expects to fulfill the purchase commitment before December 31, 2023. On March 28, 2023, the Company entered into a purchase contract with an automobile dealer to purchase a total of 50 automobiles for the amount of approximately $0.8 million. As of the issuance date of these unaudited condensed consolidated financial statements, 30 automobiles of approximately $0.5 million have been purchased in cash and delivered to the Company, and the Company expects to fulfill the purchase commitment before December 31, 2023. Contingent liabilities for automobile purchasers Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. In December 2019, a novel strain of coronavirus, or COVID-19, surfaced and it has spread rapidly to many parts of China and other parts of the world, including the United States. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Because substantially all of the Company’s operations are conducted in China, the COVID-19 outbreak has materially and adversely affected the Company’s business operations, financial condition and operating results for 2021 and 2022, including but not limited to decrease in revenues, slower collection of accounts receivable and additional allowance for credit losses. Some of the Company’s customers exited the ride-hailing business and rendered their automobiles to the Company for sublease or sale to generate income or proceeds to cover payments owed to financial institutions and the Company. For the six months ended September 30, 2023 and 2022, the Company recognized an estimated provision loss of approximately $501 and $7,418 respectively, for drivers who exited the ride-hailing business were not able to make the monthly payments from operations. As of September 30, 2023, there was no contingent liabilities Hunan Ruixi had for the automobile purchasers. Contingent liability of Jinkailong Despite that the Company holds 35% of equity interest of Jinkailong through Hunan Ruixi, and has not make any consideration towards to the investment, the Company will be subjected to the maximum amount of RMB3.5 million (approximately $480,000) of which is equivalent to 35% of liabilities in case Jinkailong is liquidated in accordance with PRC’s company registry compliance. As of September 30, 2023, the maximum contingent liabilities of Jinkailong, the Company’s equity investee company and former VIE, would be exposed to was approximately $3.1 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. Jinkailong estimated the fair market value of the collateral to be approximately $1.5 million as of September 30, 2023, based on the market price and the useful life of such collateral, which represents approximately 48% of the maximum contingent liabilities. Meanwhile, approximately $2.1 million, including interests of approximately $187,000, due to financial institutions, of all the automobile purchases Jinkailong serviced were past due mainly due to the COVID-19 pandemic in China in prior years. Besides, as of September 30, 2023, due to Jinkailong has undertaken the joint and several liability guarantee for all loans of Langyue Automobile Service Co., Ltd. from Chengdu Industrial Impawn Co., Ltd (“Impawn”) for certain historical business, Jinkailong may be required to pay all the outstanding balance of approximately $821,000 to Impawn in the future. From time to time, the Company and its equity investee company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. The total amount of reasonable possible losses with the respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Sep. 30, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 20. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. By assessing the qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, the Company considers itself to be operating in two reportable segments which comprise of automobile transaction and related services and online ride-hailing platform. The segments are organized based on type of service offered. The following tables present the summary of each segment’s revenue, loss from operations, loss before income taxes and net loss which is considered as a segment operating performance measure, for the three and six months ended September 30, 2023 and 2022: For the three months ended September 30, 2023 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues 1,183,138 643,813 — 1,826,951 Interest income 118 34 6 158 Depreciation and amortization 345,583 15,359 19,637 380,579 Loss from operations (847,276) (124,296) (310,373) (1,281,945) Loss before income taxes (817,080) (139,665) (250,707) (1,207,452) Net loss (817,080) (139,665) (250,707) (1,207,452) Capital expenditure — — — — For the six months ended September 30, 2023 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 2,372,246 $ 1,549,419 $ — $ 3,921,665 Interest income $ 267 $ 61 $ 9 $ 337 Depreciation and amortization $ 689,715 $ 29,628 $ 40,665 $ 760,008 Loss from operations $ (1,182,242) $ (196,928) $ (691,197) $ (2,070,367) Loss before income taxes $ (1,083,272) $ (218,169) $ (327,358) $ (1,628,799) Net loss $ (1,083,272) $ (218,169) $ (327,358) $ (1,628,799) Capital expenditure $ 357,909 $ — $ — $ 357,909 For the three months ended September 30, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 1,268,499 $ 972,703 $ — $ 2,241,202 Interest income $ 332 $ 51 $ 15 $ 398 Depreciation and amortization $ 507,122 $ 18,987 $ 39,224 $ 565,333 Loss from operations $ (866,265) $ (371,293) $ (347,648) $ (1,585,206) Loss before income taxes $ (189,360) $ (625,379) $ (365,065) $ (1,179,804) Net loss $ (189,360) $ (625,379) $ (365,065) $ (1,179,804) Capital Expenditure $ 493 $ 26,893 $ — $ 27,386 For the six months ended September 30, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 2,422,775 $ 2,160,223 $ — $ 4,582,998 Interest income $ 825 $ 104 $ 44 $ 973 Depreciation and amortization $ 1,040,916 $ 35,466 $ 41,660 $ 1,118,042 Loss from operations $ (1,158,053) $ (888,645) $ (979,103) $ (3,025,801) Income (loss) before income taxes $ (242,608) $ (1,325,266) $ 631,990 $ (935,884) Net income (loss) $ (242,608) $ (1,325,266) $ 631,990 $ (935,884) Capital expenditure $ 1,900 $ 26,893 $ — $ 28,793 The accounting principles for the Company’s revenue by segment are set out in Note 3(h). As of September 30, 2023, the Company’s total assets were comprised of $10,856,726 for automobile transaction and related services, $899,967 for online ride-hailing platform services and $901,972 for unallocated. As of March 31, 2023, the Company’s total assets were comprised of $12,579,764 for automobile transaction and related services, $937,400 for online ride-hailing platform services and $721,451 unallocated. As substantially all of the Company’s long-lived assets are located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical information is presented. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Sep. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Company evaluated all events and transactions that occurred after September 30, 2023 up through the date the Company filed these unaudited condensed consolidated financial statements. No other events require adjustment to or disclosure in the unaudited condensed consolidated financial statements other than the following: Lawsuit On October 12, 2023, Chengdu Green Sichuan Automobile Service Co., Ltd. (the “Plaintiff”) filed a lawsuit against Corenel, Senmiao Consulting and Jinkailong, collectively known as the “Defendants,” in Chengdu Wuhou District Court for breaching the automobile lease contracts signed in February 2021 and December 2021. The Plaintiff requests that the Defendants be held responsible for a total amount of $380,582, which consists of overdue lease payments, early lease return penalties, and the cost of vehicle damage upon return. As of September 30, 2023, the Company has assumed full responsibility for remitting the lease payments, netting off the deposits, which amounted to approximately RMB860,000 ($118,000). On November 3, 2023, the Plaintiff and Defendants signed a settlement agreement, pursuant to which, Defendants shall pay Plaintiff approximately $76,000, netting off the deposits which Corenel and Jinkailong paid to the Plaintiff, as the final settlement by three installments before December 31, 2023. On the other hand, since Jinkailong was the ultimate lessee of the automobile lease from the Plaintiff, the Company and Jinkailong are in agreement that Jinkailong would be responsible for the early lease return penalty and damage cost of the returned vehicle. As of the issuance date of these unaudited condensed consolidated financial statements, Jinkailong has remitted the first installment, which amounted to approximately RMB 200,000 ($27,412) to the Plaintiff. Common stock issued for consulting services In October 2023, the Company entered into three different consulting and services agreements (the “Consulting Agreements”) with three consultants (the “Consultants”), pursuant to which the Company engaged the Consultant to provide certain merger and acquisition consulting service, market research and business development advisory services, and financial consulting services, respectively. As compensation for the services, the Company agreed to issue the Consultants an aggregate of 1,500,000 shares of its common stock, par value $0.0001, payable within ten working days from the signing of those Consulting Agreements. On November 7, 2023, the issuance of 1,500,000 shares of the Company’s common stock has been completed. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of September 30, 2023 and for the three and six months ended September 30, 2023 and 2022 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The interim unaudited financial information should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended March 31, 2023, which was filed with the SEC on July 13, 2023. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of September 30, 2023, its unaudited results of operations for the three and six months ended September 30, 2023 and 2022, and its unaudited cash flows for the six months ended September 30, 2023 and 2022, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Foreign currency translation | (b) Foreign currency translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates on the date of the balance sheet. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company and its subsidiaries and former VIEs is U.S. dollars (“US$”) and the unaudited condensed consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the unaudited condensed consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: September 30, March 31, 2023 2023 Balance sheet items, except for equity accounts – RMB: US$1: 7.2960 6.8676 For the three months ended September 30, 2023 2022 Items in the statements of operations and comprehensive loss, and cash flows – RMB: US$1: 7.2445 6.8520 For the six months ended September 30, 2023 2022 Items in the statements of operations and comprehensive loss, and cash flows – 7.1287 6.7312 |
Use of estimates | (c) Use of estimates In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values of property and equipment, lease classification and liabilities, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for credit losses for receivables, due from related parties and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, valuation of derivative liabilities, allocation of fair value of derivative liabilities. |
Fair values of financial instruments | (d) Fair values of financial instruments Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and March 31, 2023: Carrying Value as of Fair Value Measurement as of September 30, 2023 September 30, 2023 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 137,943 $ — $ — $ 137,943 Fair Value Measurement as of Carrying Value as of March 31, 2023 March 31, 2023 Level 1 Level 2 Level 3 Derivative liabilities $ 501,782 $ — $ — $ 501,782 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the six months ended September 30, 2023 and for the year ended March 31, 2023: August February 2020 2021 May 2021 2019 Registered Direct Underwritten Registered Registered Direct November 2021 Offering Public Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2022 $ 1,913 $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 Derivative liabilities recognized at grant date (1,912) (10,520) (36,131) (54,052) (616,527) (46,240) (879,170) (67,337) (1,711,889) Change in fair value of derivative liabilities — — — — — — (1,533) — (1,533) BALANCE as of March 31, 2023 1 5 8,450 11,491 161,961 12,147 284,762 $ 22,965 $ 501,782 Change in fair value of derivative liabilities — — (6,803) (9,280) (122,907) (9,218) (199,781) (15,844) (363,833) Warrant forfeited due to expiration (1) (5) — — — — — — (6) BALANCE as of September 30, 2023 (unaudited) $ — $ — $ 1,647 $ 2,211 $ 39,054 $ 2,929 $ 84,981 $ 7,121 $ 137,943 The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of September 30, 2023 and March 31, 2023. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of September 30, 2023 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 Exercise price $ 6.30 $ 13.8 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 Expected term (years) 1.85 2.37 2.37 2.62 2.62 3.12 3.12 Risk-free interest rate 5.09 % 4.94 % 4.94 % 4.89 % 4.89 % 4.78 % 4.78 % Expected volatility 117 % 117 % 117 % 117 % 117 % 117 % 117 % As of March 31, 2023 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.8 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 Expected term (years) 0.22 0.22 2.35 2.87 2.87 3.12 3.12 3.62 3.62 Risk-free interest rate 1.02 % 1.02 % 4.02 % 3.95 % 4.43 % 3.80 % 3.80 % 3.74 % 3.74 % Expected volatility 120 % 120 % 120 % 120 % 120 % 120 % 120 % 120 % 120 % * As of September 30, 2023 and March 31, 2023, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, restricted cash, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and current liabilities of borrowings from a financial institution, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of finance lease receivables, operating and financing lease liabilities and borrowings from a financial institution were recorded at the gross amount adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of September 30, 2023 and March 31, 2023. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. |
Cash and cash equivalents | (e) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds received from automobile purchasers as payments for automobiles, funds received from automobile lessees as payments for rentals, which were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. |
Restricted cash | (f) Restricted cash Restricted cash consists of fund held in the bank accounts of Corenel was frozen by a court order with a prior business partner whom Corenel had cooperation with. The restricted cash of Corenel was RMB13,867 (approximately $1,915) as of September 30, 2023. |
Accounts receivable | (g) Accounts receivable Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. The carrying value of accounts receivable is reduced by an allowance that reflects the Company’s best estimate of the amounts that will not be collected. An allowance for credit losses is recorded in the period when a loss is probable based on an assessment of specific evidence indicating collection is unlikely, historical bad debt rates, accounts aging, financial conditions of the customer and industry trends. Starting from April 1, 2023, the Company adopted ASU No.2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”). The Company used a modified retrospective approach, and the adoption does not have an impact on our unaudited condensed consolidated financial statements. Management also periodically evaluates individual customer’s financial condition, credit history, and the current economic conditions to make adjustments in the allowance when it is considered necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s management continues to evaluate the reasonableness of the valuation allowance policy and update it if necessary. As of September 30, 2023 and March 31, 2023, the Company did not record allowance for credit losses, against accounts receivable. |
Finance lease receivables | (h) Finance lease receivables Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance for credit losses when necessary. Finance lease receivables is charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. As of September 30, 2023 and March 31, 2023, the Company determined no allowance for credit losses was necessary for finance lease receivables. As of September 30, 2023 and March 31, 2023, finance lease receivables consisted of the following: September 30, March 31, 2023 2023 (unaudited) Minimum lease payments receivable $ 247,527 $ 297,960 Less: Unearned interest (67,324) (80,713) Financing lease receivables $ 180,203 $ 217,247 Finance lease receivables, current portion $ 104,989 $ 146,114 Finance lease receivables, non-current portion $ 75,214 $ 71,133 Future scheduled minimum lease payments for investments in sales-type leases as of September 30, 2023 are as follows: Minimum future payments receivable Twelve months ending September 30, 2024 $ 132,636 Twelve months ending September 30, 2025 89,760 Twelve months ending September 30, 2026 25,131 Total $ 247,527 |
Property and equipment, net | (i) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other equipment, which are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three and six months ended September 30, 2023 and 2022, the Company did not recognize impairment for property and equipment. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated statements of operations and comprehensive loss. |
Loss per share | (j) Loss per share Basic loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of outstanding shares of common stock, adjusted for outstanding shares of common stock that are subject to repurchase. For the calculation of diluted loss per share, net loss attributable to stockholders for basic loss per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net loss per share if their inclusion is anti-dilutive. As of September 30, 2023, the Company’s dilutive securities from the outstanding series A convertible preferred stock are convertible into approximately 495,706 shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. |
Derivative liabilities | (k) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the unaudited condensed consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. |
Revenue recognition | (l) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is entered into by the parties, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of September 30, 2023, the Company had outstanding contracts for automobile transaction and related services amounting to $4,163, which is expected to be completed within twelve months after September 30, 2023. Disaggregated information of revenues by business lines are as follows: For the Three Months Ended For the Six Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services Operating lease revenues from automobile rentals $ 1,020,993 $ 937,234 $ 2,077,387 $ 1,789,749 - Financing revenues 11,340 11,295 24,940 22,359 - Service fees from automobile management and guarantee services 6,598 9,638 13,190 22,744 - Revenues from sales of automobiles 3,778 157,007 8,822 226,705 - Service fees from NEVs leasing 4,626 102,176 24,897 242,673 - Service fees from automobile purchase services — 6,794 12,232 21,582 - Other service fees 135,803 44,355 210,778 96,963 Total revenues from Automobile Transaction and Related Services 1,183,138 1,268,499 2,372,246 2,422,775 Online Ride-hailing Platform Services 643,813 972,703 1,549,419 2,160,223 Total Revenues $ 1,826,951 $ 2,241,202 $ 3,921,665 $ 4,582,998 Automobile transaction and related services Operating lease revenues from automobile rentals –The Company generates revenue from sub-leasing automobiles to some online ride-hailing drivers or third-parties and leasing its own automobiles. The Company recognizes revenue wherein an automobile is transferred to the lessees and the lessees has the ability to control the asset, is accounted for under ASC Topic 842. Rental transactions are satisfied over the rental period and is recognized over time. As the operating lease revenue are variable in nature which is based on online ride-hailing drivers or third-parties’ performance for a certain period, the Company recognized the revenue from operating lease by using the output method based on periodic settlement between the Company and the online ride-hailing drivers or third-parties when such revenue is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Rental periods are short term in nature, generally are twelve months or less. Financing revenues - Interest income from the lease arising from the Company’s sales-type leases and bundled lease arrangements are recognized as financing revenues over the lease term based on the effective rate of interest in the lease. Service fees from automobile management and guarantee services – Over 95% of the Company’s customers are online ride-hailing drivers. Some of the drivers sign affiliation agreements with the Company, pursuant to which the Company provides them with management and guarantee services during the affiliation period. Service fees for management and guarantee services are paid by such automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. The Company recognizes revenue over the affiliation period when performance obligations are completed. Sales of automobiles – The Company generated revenue from sales of automobiles to the customers of Hunan Ruixi. The control over the automobile is transferred to the purchaser along with the delivery of automobiles. The amount of the revenue is based on the sale price agreed by Hunan Ruixi and the customers. The Company recognizes revenues when an automobile is delivered and control is transferred to the purchaser at a point in time. Accounts receivable related to the revenue are being collected within 12 months. Service fees from NEVs leasing and automobile purchase services - Services fees from NEVs leasing and automobile purchase services are paid by some lessees who rent new energy electric vehicles from the Company or automobile purchasers for a series of the services provided to them throughout the purchase process such as credit assessment, installment of GPS devices, ride-hailing driver qualification and other administrative procedures. The amount of services fees for NEVs leasing is based on the product solutions while the fees for purchase is based on the sales price of the automobiles and relevant services provided. The Company recognizes revenue when all the services are completed and an automobile is delivered to the lessee or purchaser at a point in time. Accounts receivable related to the revenue from NEVs leasing and automobile purchase services is collected upon the NEVs are delivered to lessees or purchaser. Online ride-hailing platform services The Company generates revenue from providing services to online ride-hailing drivers (“Drivers”) to assist them in providing transportation services to riders (“Riders”) looking for taxi/ride-hailing services. The Company earns commissions for each completed ride in an amount equal to the difference between an upfront quoted fare and the amount earned by a Driver based on actual time and distance for the ride charged to the Rider. As a result, the Company bears a single performance obligation in the transaction of connecting Drivers with Riders to facilitate the completion of a successful transportation service for Riders. The Company recognizes revenue upon completion of a ride as the single performance obligation is satisfied and the Company has the right to receive payment for the services rendered upon the completion of the ride. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the service provided to the Rider and is the principal (i.e., “gross”), or it arranges for other parties to provide the service to the Rider and is an agent (i.e., “net”). Since the Company is not primarily responsible for ride-hailing services provided to Riders, it does not have discretion in establishing the price of the online ride-hailing service and inventory risk related to the services as the Company earns commissions for each completed order as the difference between an upfront quote fare and the amount earned by a driver based on actual time and distance for ride charged to the rider. Thus, the Company recognizes revenue at a net basis. Leases - Lessor The Company recognized revenue as lessor in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75)%; and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90)%. Automobiles included in arrangements meeting these conditions are accounted for as sales-type leases. Interest income from the lease is recognized in financing revenues over the lease term. Automobile included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. The Company excludes from the measurement of its lease revenues any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company considers the economic life of most of the automobiles to be three The Company’s lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon the local prevailing rates in the marketplace where its customer will be able to obtain an automobile loan under similar terms from the bank. The Company reassesses its pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. As of September 30, 2023, the Company’s pricing interest rate was 6.0% per annum. |
Significant risks and uncertainties | (m) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amounts as of the balance sheet dates. As of September 30, 2023 and March 31, 2023, approximately $24,000 and $79,000, respectively, were deposited with a bank in the United States which is insured by the U.S. government up to $250,000. As of September 30, 2023 and March 31, 2023, approximately $1,140,000 and $1,190,000, respectively, were deposited in financial institutions located in mainland China, which were insured by the government authority. Under the Deposit Insurance System in China, an enterprise’s deposits at one bank are insured for a maximum of approximately $69,000 (RMB500,000). To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out entirely in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the social, political, economic and legal environments in the PRC as well as by the general state of the PRC economy. In addition, the Company’s business may be influenced by changes in PRC government laws, rules and policies with respect to, among other matters, anti-inflationary measures, currency conversion and remittance of currency outside of China, rates and methods of taxation and other factors. b. In measuring the credit risk of accounts receivable due from the automobile purchasers (the “customers”), the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the risk exposures to the customer and its likely future development. Historically, most of the automobile purchasers would pay the Company their previously defaulted amounts within one to three months. As a result, the Company would provide full provisions on accounts receivable if the customers default on repayments for over three months. As of September 30, 2023 and March 31, 2023, the Company did not record allowance for credit losses against accounts receivable. 2) Foreign currency risk As of September 30, 2023 and March 31, 2023, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $24,000 and $79,000, respectively, in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the People’s Bank of China (the “PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significantly affected. RMB depreciated from 6.87 RMB into US$1.00 on March 31, 2023 to 7.30 RMB into US$1.00 on September 30, 2023. |
Recent accounting pronouncements adopted and not yet adopted | (n) In March 2023, the FASB issued new accounting guidance, ASU 2023-01, for leasehold improvements associated with common control leases, which is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been made available for issuance. The new guidance introduced two issues: terms and conditions to be considered with leases between related parties under common control and accounting for leasehold improvements. The goals for the new issues are to reduce the cost associated with implementing and applying Topic 842 and to promote diversity in practice by entities within the scope when applying lease accounting requirements. ASU 2023-01 is effective for the Company for annual and interim reporting periods beginning April 1, 2024. The Company is currently evaluating the impact ASU 2023-01 may have on its unaudited condensed consolidated financial statements. (o) The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”), the Company meets the definition of an emerging growth company and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. In June 2016, the FASB issued new accounting guidance ASU 2016-13 for recognition of credit losses on financial instruments, which is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. In November 2019, the FASB issued ASU No. 2019-10, which is to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has adopted this update on April 1, 2023, and the adoption does not have material impact on Company’s consolidated financial statements and related disclosures. CECL adoption will have broad impact on the financial statements of financial services firms, which will affect key profitability and solvency measures. Some of the more notable expected changes include: - Higher allowance on financial guarantee reserve and finance lease receivable levels and related deferred tax assets. While different asset types will be impacted differently, the expectation is that reserve levels will generally increase across the board for all financial firms. - Increased reserve levels may lead to a reduction in capital levels. - As a result of higher reserving levels, the expectation is that CECL will reduce cyclicality in financial firms’ results, as higher reserving in “good times” will mean that less dramatic reserve increases will be loan related income (which will continue to be recognized on a periodic basis based on the effective interest method) and the related credit losses (which will be recognized up front at origination). This will make periods of loan expansion seem less profitable due to the immediate recognition of expected credit losses. Periods of stable or declining loan levels will look comparatively profitable as the income trickles in for loans, where losses had been previously recognized. Although the Company has automobile financing business, the Company reserves the allowance for doubtful account such as accounts receivable balance based on historical collection rate, current economic environment, and credit worthy of specific customers, along with individual assessment on specific accounts. As these approvals are aligned with the CECL model, the Company does not believe the adoption of CECL model have material impact on Company’s unaudited condensed consolidated financial statements and related disclosures. Further, The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the unaudited condensed consolidated financial position, statements of operations and cash flows of the Company. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of translation of amounts from RMB into US$ | September 30, March 31, 2023 2023 Balance sheet items, except for equity accounts – RMB: US$1: 7.2960 6.8676 For the three months ended September 30, 2023 2022 Items in the statements of operations and comprehensive loss, and cash flows – RMB: US$1: 7.2445 6.8520 For the six months ended September 30, 2023 2022 Items in the statements of operations and comprehensive loss, and cash flows – 7.1287 6.7312 |
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | Carrying Value as of Fair Value Measurement as of September 30, 2023 September 30, 2023 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 137,943 $ — $ — $ 137,943 Fair Value Measurement as of Carrying Value as of March 31, 2023 March 31, 2023 Level 1 Level 2 Level 3 Derivative liabilities $ 501,782 $ — $ — $ 501,782 |
Schedule of reconciliation of beginning and ending balance of the assets and liabilities measured at fair value on recurring basis | August February 2020 2021 May 2021 2019 Registered Direct Underwritten Registered Registered Direct November 2021 Offering Public Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2022 $ 1,913 $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 Derivative liabilities recognized at grant date (1,912) (10,520) (36,131) (54,052) (616,527) (46,240) (879,170) (67,337) (1,711,889) Change in fair value of derivative liabilities — — — — — — (1,533) — (1,533) BALANCE as of March 31, 2023 1 5 8,450 11,491 161,961 12,147 284,762 $ 22,965 $ 501,782 Change in fair value of derivative liabilities — — (6,803) (9,280) (122,907) (9,218) (199,781) (15,844) (363,833) Warrant forfeited due to expiration (1) (5) — — — — — — (6) BALANCE as of September 30, 2023 (unaudited) $ — $ — $ 1,647 $ 2,211 $ 39,054 $ 2,929 $ 84,981 $ 7,121 $ 137,943 |
Schedule of estimates of fair value to warrants using Black Scholes valuation model | June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of September 30, 2023 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 9/30/2023 Exercise price $ 6.30 $ 13.8 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 Expected term (years) 1.85 2.37 2.37 2.62 2.62 3.12 3.12 Risk-free interest rate 5.09 % 4.94 % 4.94 % 4.89 % 4.89 % 4.78 % 4.78 % Expected volatility 117 % 117 % 117 % 117 % 117 % 117 % 117 % As of March 31, 2023 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 3/31/2023 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.8 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 Expected term (years) 0.22 0.22 2.35 2.87 2.87 3.12 3.12 3.62 3.62 Risk-free interest rate 1.02 % 1.02 % 4.02 % 3.95 % 4.43 % 3.80 % 3.80 % 3.74 % 3.74 % Expected volatility 120 % 120 % 120 % 120 % 120 % 120 % 120 % 120 % 120 % * |
Schedule of finance lease receivables | September 30, March 31, 2023 2023 (unaudited) Minimum lease payments receivable $ 247,527 $ 297,960 Less: Unearned interest (67,324) (80,713) Financing lease receivables $ 180,203 $ 217,247 Finance lease receivables, current portion $ 104,989 $ 146,114 Finance lease receivables, non-current portion $ 75,214 $ 71,133 |
Schedule of future scheduled minimum lease payments for investments in sales-type leases | Minimum future payments receivable Twelve months ending September 30, 2024 $ 132,636 Twelve months ending September 30, 2025 89,760 Twelve months ending September 30, 2026 25,131 Total $ 247,527 |
Schedule of property and equipment | Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years |
Schedule of disaggregated information of revenues | For the Three Months Ended For the Six Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services Operating lease revenues from automobile rentals $ 1,020,993 $ 937,234 $ 2,077,387 $ 1,789,749 - Financing revenues 11,340 11,295 24,940 22,359 - Service fees from automobile management and guarantee services 6,598 9,638 13,190 22,744 - Revenues from sales of automobiles 3,778 157,007 8,822 226,705 - Service fees from NEVs leasing 4,626 102,176 24,897 242,673 - Service fees from automobile purchase services — 6,794 12,232 21,582 - Other service fees 135,803 44,355 210,778 96,963 Total revenues from Automobile Transaction and Related Services 1,183,138 1,268,499 2,372,246 2,422,775 Online Ride-hailing Platform Services 643,813 972,703 1,549,419 2,160,223 Total Revenues $ 1,826,951 $ 2,241,202 $ 3,921,665 $ 4,582,998 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Online P2P Lending Services | |
Schedule of disposal Groups including discontinued operations | September 30, March 31, 2023 2023 (Unaudited) Current liabilities Accrued expenses and other liabilities $ 459,186 $ 487,829 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivables | September 30, March 31, 2023 2023 (Unaudited) Receivables of automobile sales due from automobile purchasers $ 18,306 $ 76,106 Receivables of online ride hailing fees from online ride-hailing drivers 35,782 51,290 Receivables of operating lease 28,200 31,039 Less: Allowance for credit losses — — Accounts receivable $ 82,288 $ 158,435 |
Schedule of movement of allowance for credit losses | September 30, March 31, 2023 2023 (Unaudited) Beginning balance $ — $ 112,905 Addition — 3,394 Write off — (107,868) Translation adjustment — (8,431) Ending balance $ — $ — |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
INVENTORIES | |
Schedule of inventories | September 30, March 31, 2023 2023 (Unaudited) Automobiles (i) $ — $ 6,678 (i) As of March 31, 2023, the Company owned an automobile with a total value of $6,678 , net of impairment, for sale or sales-type leases. |
PREPAYMENTS, OTHER RECEIVABLE_2
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET | |
Schedule of prepayments, other receivables and other assets | September 30, March 31, 2023 2023 (Unaudited) Deposits (i) $ 766,111 $ 679,794 Prepaid expenses (ii) 378,745 334,297 Receivables from aggregation platforms (iii) 271,595 271,791 Value added tax (“VAT”) recoverable (iv) 35,393 86,051 Due from automobile purchasers, net (v) 10,001 45,489 Employee advances 7,241 11,482 Others 22,505 9,339 Total prepayments, other receivables and other assets, net $ 1,491,591 $ 1,438,243 (i) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (ii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense, etc. that will expire within one year. (iii) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. (iv) Value added tax (“VAT”) recoverable The balance represented the amount of VAT, which resulted from historical purchasing activities and could be further used for deducting future VAT in PRC. (v) Due from automobile purchasers, net The balance due from automobile purchasers represented the payments of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. As of September 30, 2023 and March 31, 2023, the Company did not record allowance for credit losses against receivables due from automobile purchasers. During the three and six months ended September 30, 2023, the Company did not record nor recover allowance against the balance from automobile purchasers. During the three and six months ended September 30, 2022, the Company recovered allowances against the balance due from automobile purchasers of $0 and $6,431, respectively. |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment | September 30, March 31, 2023 2023 (Unaudited) Leasehold improvements $ 172,458 $ 183,216 Computer equipment 35,268 37,932 Office equipment, fixtures and furniture 73,771 78,372 Automobiles 4,590,503 4,679,927 Subtotal 4,872,000 4,979,447 Less: accumulated depreciation and amortization (1,926,770) (1,635,990) Total property and equipment, net $ 2,945,230 $ 3,343,457 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | September 30, March 31, 2023 2023 (Unaudited) Software $ 790,834 $ 793,381 Online ride-hailing platform operating licenses 415,631 441,557 Subtotal 1,206,465 1,234,938 Less: accumulated amortization (532,956) (460,614) Total intangible assets, net $ 673,509 $ 774,324 |
Schedule of amortization expense | Amortization expenses Twelve months ending September 30, 2024 $ 179,607 Twelve months ending September 30, 2025 134,048 Twelve months ending September 30, 2026 89,638 Twelve months ending September 30, 2027 77,593 Twelve months ending September 30, 2028 77,364 Thereafter 115,259 Total $ 673,509 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other current assets | September 30, March 31, 2023 2023 (Unaudited) Prepayments of automobiles purchased (i) $ 633,224 $ 716,407 (i) In September 2022 and March 2023, the Company entered into two automobile purchase agreements (“Purchase Agreements”) with two third parties to purchase a total of 150 automobiles which amounted to $2,301,261 . As of September 30, 2023, the Company has made prepayments of $633,224 towards the remaining purchase pertaining to the Purchase Agreements. The Company expects to complete the remaining purchase by December 31, 2023. |
BORROWINGS FROM A FINANCIAL I_2
BORROWINGS FROM A FINANCIAL INSTITUTION (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
BORROWINGS FROM A FINANCIAL INSTITUTION | |
Schedule of borrowings from a financial institution | Interest September 30, March 31, Bank name Maturity date rate 2023 2023 WeBank* 09/11/2025 12.24 % $ 246,710 — SDIC Taikang Trust Co. Ltd Fully Repaid on 13.04 % — $ 8,813 Total $ 246,710 $ 8,813 Borrowing from a financial institution, current $ 105,733 $ 8,813 Borrowing from a financial institution, non-current $ 140,977 $ — * On September 11, 2023, the Company entered into a loan agreement (the “Loan Agreement”) with WeBank for a total amount of approximately $246,710. Pursuant to the Loan Agreement, the borrowing bears an interest rate of 12.24% per annum with monthly repayments consist of principal and interest for two years. As of September 30, 2023, the current portion of the loan principal balance to be repaid within the next twelve months was amounted to $105,733, while the noncurrent portion of the loan principal to be repaid after September 30, 2024 was amounted to $140,977. |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Schedule of accrued expenses and other liabilities | September 30, March 31, 2023 2023 (Unaudited) Accrued payroll and welfare $ 1,669,082 $ 1,636,092 Payables to drivers from aggregation platforms (i) 1,221,391 1,103,892 Deposits (ii) 868,168 730,002 Accrued expenses 346,145 226,721 Payables for expenditures on automobile transaction and related services (iii) 26,525 31,719 Other taxes payable 85,023 83,432 Loan repayments received on behalf of financial institutions 7,139 16,130 Other payables 60,051 37,348 Total accrued expenses and other liabilities 4,283,524 3,865,336 Total accrued expenses and other liabilities – discontinued operations (459,186) (487,829) Total accrued expenses and other liabilities – continuing operations $ 3,824,338 $ 3,377,507 (i) Payables to drivers from aggregation platforms The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (ii) Deposits The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iii) Payables for expenditures on automobile transaction and related services The balance of payables for expenditures on automobile transaction and related services represented the payables balance to the miscellaneous expenses related to the daily operations of automobiles. |
EQUITY (Tables)
EQUITY (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
EQUITY | |
Summary of outstanding warrants | Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2022 6,091,298 6,091,298 $ 2.28 4.32 Exercised (25,000) (25,000) — — Balance, March 31, 2023 6,066,298 6,066,298 $ 2.29 3.56 Forfeited (20,635) (20,635) — — Balance, September 30, 2023 (unaudited) 6,045,663 6,045,663 $ 2.25 3.06 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
Continuing operations | |
Schedule of tax effects of temporary differences | September 30, March 31, 2023 2023 (Unaudited) Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,585,096 $ 2,403,785 Net operating loss carryforwards in the U.S. 1,633,296 1,499,607 Allowance for credit losses 378,959 402,599 Less: valuation allowance (4,597,351) (4,305,991) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 40,409 $ 42,930 Deferred tax liabilities, net $ 40,409 $ 42,930 |
Discontinued operations | |
Schedule of tax effects of temporary differences | September 30, 2023 March 31, 2023 (Unaudited) Net operating loss carry forwards in the PRC $ 451,229 $ 479,377 Less: valuation allowance (451,229) (479,377) Total $ — $ — |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of amounts payable to stockholders, related parties and affiliates | September 30, March 31, 2023 2023 (Unaudited) Total due from related parties $ 6,327,062 $ 6,610,156 Less: Allowance for credit losses (2,058,868) (1,481,036) Due from related parties, net $ 4,268,194 $ 5,129,120 Due from related parties, net, current portion $ 2,123,301 $ 1,488,914 Due from a related party, net, non-current portion $ 2,144,893 $ 3,640,206 September 30, March 31, 2023 2023 (Unaudited) Beginning balance $ 1,481,036 $ — Addition 680,396 1,484,495 Translation adjustment (102,564) (3,459) Ending balance $ 2,058,868 $ 1,481,036 |
Schedule of detailed information on transactions and related parties | September 30, March 31, 2023 2023 (Unaudited) Loan payable to a related party (i) $ 1,510 $ 8,667 (i) As of September 30, 2023 and March 31, 2023, the balances represented borrowings from Xi Wen, the CEO of the Company, of which, $1,510 and $8,667 are unsecured, interest free and due on demand, respectively. September 30, March 31, 2023 2023 (Unaudited) Lease I (i) $ 287,660 $ — Lease II (ii) 68,976 92,916 Total Operating lease right-of-use assets - related parties $ 356,636 $ 92,916 September 30, March 31, 2023 2023 (Unaudited) Lease I (i) $ 242,392 $ 82,069 Lease II (ii) 51,094 61,393 Total Operating lease liabilities, current - related parties $ 293,486 $ 143,462 September 30, March 31, 2023 2023 (Unaudited) Lease I (i) $ 175,949 $ — Lease II (ii) 20,172 42,247 Total Operating lease liabilities, non-current - related parties $ 196,121 $ 42,247 (i) On March 31, 2023, the Company entered into two office lease agreements with Hong Li, supervisor of Sichuan Senmiao, with a leasing term from April 1, 2023 to March 31, 2026. On March 1, 2021, the Company entered into an office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. In October 2022, the Company terminated the leases signed on March 1, 2021 and April 1, 2021. (ii) In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed on June 2022 which extended the original lease to May 2025. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
LEASES | |
Schedule of operating and finance lease expenses | For the Three Months Ended For the Six Months Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Classification (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost Automobile lease costs Cost of revenues $ 544,982 $ 521,632 $ 1,060,856 $ 1,057,955 Lease expenses Selling, general and administrative 60,486 107,434 125,772 225,260 Finance lease cost Amortization of leased asset Cost of revenue 58,991 58,630 120,659 129,053 Amortization of leased asset General and administrative — 82,245 282 134,635 Interest on lease liabilities Interest expenses on finance leases 7,594 1,153 16,316 8,301 Total lease expenses $ 672,053 $ 771,094 $ 1,323,885 $ 1,555,204 |
Schedule of minimum lease payments in future periods | *Operating lease Finance lease payments payments Total Twelve months ending September 30, 2024 $ 333,926 $ 255,360 $ 589,286 Twelve months ending September 30, 2025 188,616 254,934 443,550 Twelve months ending September 30, 2026 83,943 — 83,943 Total lease payments 606,485 510,294 1,116,779 Less: discount (24,269) (29,757) (54,026) Present value of lease liabilities $ 582,216 $ 480,537 $ 1,062,753 * |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Sep. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of each segment's revenue, loss from operations, loss before income taxes and net loss | For the three months ended September 30, 2023 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues 1,183,138 643,813 — 1,826,951 Interest income 118 34 6 158 Depreciation and amortization 345,583 15,359 19,637 380,579 Loss from operations (847,276) (124,296) (310,373) (1,281,945) Loss before income taxes (817,080) (139,665) (250,707) (1,207,452) Net loss (817,080) (139,665) (250,707) (1,207,452) Capital expenditure — — — — For the six months ended September 30, 2023 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 2,372,246 $ 1,549,419 $ — $ 3,921,665 Interest income $ 267 $ 61 $ 9 $ 337 Depreciation and amortization $ 689,715 $ 29,628 $ 40,665 $ 760,008 Loss from operations $ (1,182,242) $ (196,928) $ (691,197) $ (2,070,367) Loss before income taxes $ (1,083,272) $ (218,169) $ (327,358) $ (1,628,799) Net loss $ (1,083,272) $ (218,169) $ (327,358) $ (1,628,799) Capital expenditure $ 357,909 $ — $ — $ 357,909 For the three months ended September 30, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 1,268,499 $ 972,703 $ — $ 2,241,202 Interest income $ 332 $ 51 $ 15 $ 398 Depreciation and amortization $ 507,122 $ 18,987 $ 39,224 $ 565,333 Loss from operations $ (866,265) $ (371,293) $ (347,648) $ (1,585,206) Loss before income taxes $ (189,360) $ (625,379) $ (365,065) $ (1,179,804) Net loss $ (189,360) $ (625,379) $ (365,065) $ (1,179,804) Capital Expenditure $ 493 $ 26,893 $ — $ 27,386 For the six months ended September 30, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 2,422,775 $ 2,160,223 $ — $ 4,582,998 Interest income $ 825 $ 104 $ 44 $ 973 Depreciation and amortization $ 1,040,916 $ 35,466 $ 41,660 $ 1,118,042 Loss from operations $ (1,158,053) $ (888,645) $ (979,103) $ (3,025,801) Income (loss) before income taxes $ (242,608) $ (1,325,266) $ 631,990 $ (935,884) Net income (loss) $ (242,608) $ (1,325,266) $ 631,990 $ (935,884) Capital expenditure $ 1,900 $ 26,893 $ — $ 28,793 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) ¥ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Mar. 23, 2022 USD ($) | Feb. 29, 2020 | Aug. 31, 2018 | Sep. 30, 2023 USD ($) subsidiary | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) subsidiary segment | Sep. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) subsidiary | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Company incorporated in the State | Nevada | |||||||||
Date of entity incorporation | Jun. 08, 2017 | |||||||||
Number of operating segments | segment | 2 | |||||||||
Accumulated loss | $ (39,069,079) | $ (39,069,079) | $ (37,715,294) | |||||||
Shareholders' deficiency | 2,543,560 | 2,543,560 | 4,394,214 | |||||||
Jinkailong | Discontinued operations | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Related party receivable as a result of deconsolidation | 4,250,553 | 4,250,553 | ||||||||
Related party receivable noncurrent as a result of deconsolidation | 2,144,893 | 2,144,893 | ||||||||
Due to related party excluded upon deconsolidation | 5,106,100 | |||||||||
Jinkailong | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Allowance for doubtful accounts | $ 553,323 | $ 350,867 | $ 680,396 | $ 350,867 | ||||||
Sichuan Senmiao's | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Accumulated loss | $ 18,000,000 | |||||||||
Shareholders' deficiency | $ 7,600,000 | |||||||||
Total purchase price | $ 0 | |||||||||
Senmiao Consulting | Nonconsolidated investees, other | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Percentage of equity interest ownership | 94.50% | |||||||||
Voting Agreement with Jinkailongs other shareholders | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Business agreement term | 18 years | 20 years | ||||||||
Voting Agreement with Jinkailongs other shareholders | Nonconsolidated investees, other | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Percentage of equity interest ownership | 65% | 35% | 35% | 35% | ||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Senmiao Consulting | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Capital contribution | $ 5,480,000 | $ 5,480,000 | ¥ 40,010 | |||||||
Sichuan Senmiao's | Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Number of wholly owned subsidiaries | subsidiary | 9 | 9 | 9 | |||||||
Number of wholly owned subsidiaries that has operations | subsidiary | 2 | 2 | 2 | |||||||
Equity investee | Continuing operations | Jinkailong | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Outstanding balance, net of allowance | $ 3,640,206 | $ 3,640,206 | ||||||||
Related party | Jinkailong | ||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||
Allowance for doubtful accounts | $ 2,058,868 | $ 2,058,868 | $ 1,481,036 |
GOING CONCERN (Details)
GOING CONCERN (Details) | 3 Months Ended | 6 Months Ended | |||||||
Mar. 28, 2023 USD ($) item | Sep. 30, 2023 USD ($) item | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Sep. 23, 2022 USD ($) item | |
GOING CONCERN | |||||||||
Net loss | $ 1,207,452 | $ 421,347 | $ 1,179,804 | $ (243,920) | $ 1,628,799 | $ 935,884 | |||
Accumulated deficit | 39,069,079 | 39,069,079 | $ 37,715,294 | ||||||
Working capital deficit | 300,000 | 300,000 | |||||||
Purchase commitments | $ 800,000 | $ 1,200,000 | $ 1,200,000 | ||||||
Total number of automobiles | item | 50 | 150 | 150 | 100 | |||||
Total amount of automobiles | $ 2,300,000 | $ 2,300,000 | |||||||
Number of automobiles is required to purchase in cash | item | 30 | 30 | |||||||
Amount of automobiles is required to purchase in cash | 500,000 | $ 500,000 | $ 1,500,000 | ||||||
Amount of automobiles is required to purchase commitment | 1,200,000 | 1,200,000 | |||||||
Purchase deposit | $ 500,000 | $ 600,000 | $ 600,000 | $ 600,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translation (Details) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Balance sheet items, except for equity accounts | 7.2960 | 7.2960 | 6.8676 | ||
Items in the statements of operations and comprehensive loss, and cash flows - RMB: US$1: | 7.2445 | 6.8520 | 7.1287 | 6.7312 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value on a recurring basis (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Derivative liabilities | $ 137,943 | $ 501,782 | $ 2,215,204 |
Carrying Value | Fair Value Measurements | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Derivative liabilities | 137,943 | 501,782 | |
Level 1 | Fair Value | Fair Value Measurements | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Derivative liabilities | 0 | 0 | |
Level 2 | Fair Value | Fair Value Measurements | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Derivative liabilities | 0 | 0 | |
Level 3 | Fair Value | Fair Value Measurements | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Derivative liabilities | $ 137,943 | $ 501,782 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of assets and liabilities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | $ 501,782 | $ 2,215,204 |
Derivative liabilities recognized at grant date | (1,711,889) | |
Change in fair value of derivative liabilities | (363,833) | (1,533) |
Warrant forfeited due to expiration | (6) | |
Ending balance | 137,943 | 501,782 |
2019 | Registered Direct Offering Series A Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 1 | 1,913 |
Derivative liabilities recognized at grant date | (1,912) | |
Warrant forfeited due to expiration | (1) | |
Ending balance | 1 | |
2019 | Registered Direct Offering Placement Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 5 | 10,525 |
Derivative liabilities recognized at grant date | (10,520) | |
Warrant forfeited due to expiration | (5) | |
Ending balance | 5 | |
August 2020 | Underwritten Public Offering Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 8,450 | 44,581 |
Derivative liabilities recognized at grant date | (36,131) | |
Change in fair value of derivative liabilities | (6,803) | |
Ending balance | 1,647 | 8,450 |
February 2021 | Registered Direct Offering Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 11,491 | 65,543 |
Derivative liabilities recognized at grant date | (54,052) | |
Change in fair value of derivative liabilities | (9,280) | |
Ending balance | 2,211 | 11,491 |
May 2021 | Registered Direct Offering Investors Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 161,961 | 778,488 |
Derivative liabilities recognized at grant date | (616,527) | |
Change in fair value of derivative liabilities | (122,907) | |
Ending balance | 39,054 | 161,961 |
May 2021 | Registered Direct Offering Placement Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 12,147 | 58,387 |
Derivative liabilities recognized at grant date | (46,240) | |
Change in fair value of derivative liabilities | (9,218) | |
Ending balance | 2,929 | 12,147 |
November 2021 | Private Placement Investors Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 284,762 | 1,165,465 |
Derivative liabilities recognized at grant date | (879,170) | |
Change in fair value of derivative liabilities | (199,781) | (1,533) |
Ending balance | 84,981 | 284,762 |
November 2021 | Private Placement Placement Warrants | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning balance | 22,965 | 90,302 |
Derivative liabilities recognized at grant date | (67,337) | |
Change in fair value of derivative liabilities | (15,844) | |
Ending balance | $ 7,121 | $ 22,965 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value of warrants (Details) | Sep. 30, 2023 Y $ / shares shares | Mar. 31, 2023 $ / shares Y shares | Nov. 10, 2021 Y $ / shares shares | May 13, 2021 $ / shares Y shares | Feb. 10, 2021 Y $ / shares shares | Aug. 04, 2020 $ / shares Y shares | Jun. 20, 2019 $ / shares Y shares |
Series A Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 2,590 | 133,602 | |||||
Series B Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 111,632 | ||||||
Placement Agent Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 14,251 | 14,251 | |||||
Placement Agent Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 38,044 | 38,044 | 38,044 | ||||
Placement Agent Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 41,490 | 41,490 | |||||
Placement Agent Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 55,148 | 55,148 | 55,148 | ||||
Placement Agent Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 41,490 | ||||||
Underwriter Warrants | August 4, 2020 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 31,808 | 31,808 | 56,800 | ||||
ROFR Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 15,218 | 15,218 | 15,218 | ||||
Investor Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 553,192 | 553,192 | |||||
Investor Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 5,310,763 | 5,310,763 | 5,310,763 | ||||
Investor Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Class of warrant number of securities called by warrants | shares | 553,192 | ||||||
Exercise price | Series A Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 5 | 37.20 | |||||
Exercise price | Series B Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 37.20 | ||||||
Exercise price | Placement Agent Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 5 | 33.80 | |||||
Exercise price | Placement Agent Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 13.8 | 13.8 | 13.80 | ||||
Exercise price | Placement Agent Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 10.50 | 10.50 | |||||
Exercise price | Placement Agent Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 6.80 | 6.80 | 6.80 | ||||
Exercise price | Placement Agent Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 10.50 | ||||||
Exercise price | Underwriter Warrants | August 4, 2020 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 6.30 | 6.30 | 6.30 | ||||
Exercise price | ROFR Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 17.30 | 17.30 | 17.30 | ||||
Exercise price | Investor Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 10.50 | 10.50 | |||||
Exercise price | Investor Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 1.13 | 1.13 | 1.13 | ||||
Exercise price | Investor Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 10.50 | ||||||
Stock price | Series A Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.90 | 28 | |||||
Stock price | Series B Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 28 | ||||||
Stock price | Placement Agent Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.90 | 28 | |||||
Stock price | Placement Agent Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 0.90 | 16.30 | ||||
Stock price | Placement Agent Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 7.20 | |||||
Stock price | Placement Agent Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 0.90 | 6.70 | ||||
Stock price | Placement Agent Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.90 | ||||||
Stock price | Underwriter Warrants | August 4, 2020 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 0.90 | 5.10 | ||||
Stock price | ROFR Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 0.90 | 16.30 | ||||
Stock price | Investor Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 7.20 | |||||
Stock price | Investor Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.50 | 0.90 | 6.70 | ||||
Stock price | Investor Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.90 | ||||||
Expected term (years) | Series A Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 0.22 | 4 | |||||
Expected term (years) | Series B Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 1 | ||||||
Expected term (years) | Placement Agent Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 0.22 | 4 | |||||
Expected term (years) | Placement Agent Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 2.37 | 2.87 | 5 | ||||
Expected term (years) | Placement Agent Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 2.62 | 5 | |||||
Expected term (years) | Placement Agent Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 3.12 | 3.62 | 5 | ||||
Expected term (years) | Placement Agent Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 3.12 | ||||||
Expected term (years) | Underwriter Warrants | August 4, 2020 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 1.85 | 2.35 | 5 | ||||
Expected term (years) | ROFR Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 2.37 | 2.87 | 5 | ||||
Expected term (years) | Investor Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 2.62 | 5 | |||||
Expected term (years) | Investor Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 3.12 | 3.62 | 5 | ||||
Expected term (years) | Investor Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | Y | 3.12 | ||||||
Risk-free interest rate | Series A Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0102 | 0.0177 | |||||
Risk-free interest rate | Series B Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0191 | ||||||
Risk-free interest rate | Placement Agent Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0102 | 0.0177 | |||||
Risk-free interest rate | Placement Agent Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0494 | 0.0395 | 0.0046 | ||||
Risk-free interest rate | Placement Agent Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0489 | 0.0084 | |||||
Risk-free interest rate | Placement Agent Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0478 | 0.0374 | 0.0123 | ||||
Risk-free interest rate | Placement Agent Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0380 | ||||||
Risk-free interest rate | Underwriter Warrants | August 4, 2020 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0509 | 0.0402 | 0.0019 | ||||
Risk-free interest rate | ROFR Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0494 | 0.0443 | 0.0046 | ||||
Risk-free interest rate | Investor Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0489 | 0.0084 | |||||
Risk-free interest rate | Investor Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0478 | 0.0374 | 0.0123 | ||||
Risk-free interest rate | Investor Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 0.0380 | ||||||
Expected volatility | Series A Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 120 | 86 | |||||
Expected volatility | Series B Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 91 | ||||||
Expected volatility | Placement Agent Warrants | June 20, 2019 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 120 | 86 | |||||
Expected volatility | Placement Agent Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 120 | 132 | ||||
Expected volatility | Placement Agent Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 131 | |||||
Expected volatility | Placement Agent Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 120 | 126 | ||||
Expected volatility | Placement Agent Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 120 | ||||||
Expected volatility | Underwriter Warrants | August 4, 2020 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 120 | 129 | ||||
Expected volatility | ROFR Warrants | February 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 120 | 132 | ||||
Expected volatility | Investor Warrants | May 13, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 131 | |||||
Expected volatility | Investor Warrants | November 10, 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 117 | 120 | 126 | ||||
Expected volatility | Investor Warrants | May 2021 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Warrants measurement input | 120 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finance lease receivables, net (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Allowance for doubtful on finance lease receivables | $ 0 | $ 0 |
Finance lease receivables | ||
Minimum lease payments receivable | 247,527 | 297,960 |
Less: Unearned interest | (67,324) | (80,713) |
Financing lease receivables | 180,203 | 217,247 |
Finance lease receivables, current portion | 104,989 | 146,114 |
Finance lease receivables, non-current portion | 75,214 | $ 71,133 |
Future scheduled minimum lease payments for investments | ||
Twelve months ending September 30, 2024 | 132,636 | |
Twelve months ending September 30, 2025 | 89,760 | |
Twelve months ending September 30, 2026 | 25,131 | |
Total | $ 247,527 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) | Sep. 30, 2023 |
Computer equipment | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Useful life | 2 years |
Computer equipment | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Useful life | 5 years |
Office equipment, fixture and furniture | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Useful life | 3 years |
Office equipment, fixture and furniture | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Useful life | 5 years |
Automobiles | Minimum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Useful life | 3 years |
Automobiles | Maximum | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregated information of revenues (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | $ 1,183,138 | $ 1,268,499 | $ 2,372,246 | $ 2,422,775 |
Online Ride-hailing Platform Services | 643,813 | 972,703 | 1,549,419 | 2,160,223 |
Total revenues | 1,826,951 | 2,241,202 | 3,921,665 | 4,582,998 |
Operating lease revenues from automobile rentals | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | 1,020,993 | 937,234 | 2,077,387 | 1,789,749 |
Financing revenues | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | 11,340 | 11,295 | 24,940 | 22,359 |
Service fees from automobile management and guarantee services | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | 6,598 | 9,638 | 13,190 | 22,744 |
Revenues from sales of automobiles | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | 3,778 | 157,007 | 8,822 | 226,705 |
Service fees from NEVs leasing | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | 4,626 | 102,176 | 24,897 | 242,673 |
Service fees from automobile purchase services | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | 6,794 | 12,232 | 21,582 | |
Other service fees | ||||
Automobile Transaction and Related Services | ||||
Total revenues from Automobile Transaction and Related Services | $ 135,803 | $ 44,355 | $ 210,778 | $ 96,963 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) shares | Mar. 31, 2023 USD ($) | Sep. 30, 2023 CNY (¥) shares | Mar. 31, 2022 USD ($) | Nov. 30, 2021 shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Restricted cash | $ 1,915 | ||||
Allowance for credit losses against accounts receivable | 0 | $ 0 | $ 112,905 | ||
Contract receivable for automobile transaction and related services | $ 4,163 | ||||
Percentage of customers to which the company provides them with management and guarantee services | 95% | ||||
Percentage of remaining economic life of underlying asset | 75% | ||||
Percentage of equal or exceeds lease payment | 90% | ||||
Company's pricing interest rate per annum | 6% | ||||
Cash deposit | $ 24,000 | $ 79,000 | |||
Foreign currency exchange rate (RMB into US$) | 7.30 | 6.87 | 7.30 | ||
Corenel | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Restricted cash | $ 1,915 | ¥ 13,867 | |||
series A convertible preferred stock | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Number of shares issued upon conversion | shares | 495,706 | 495,706 | 1,871,125 | ||
Continuing operations | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Allowance for credit losses against accounts receivable | $ 0 | $ 0 | |||
Automobiles | Minimum | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Useful life | 3 years | 3 years | |||
Automobiles | Maximum | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Useful life | 5 years | 5 years | |||
China | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Deposits | $ 1,140,000 | 1,190,000 | |||
Maximum insurance claim deposit | 69,000 | ¥ 500,000 | |||
United States | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Deposits | $ 24,000 | $ 79,000 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - Discontinued operations, abandonment - Online P2P Lending Services - USD ($) | Dec. 31, 2019 | Oct. 17, 2019 |
DISCONTINUED OPERATIONS | ||
Accounts receivable | $ 143,668 | |
Other receivables | 3,760,599 | |
Prepayments for impaired intangible assets | $ 143,943 | |
Provision for doubtful accounts | $ 4,048,210 |
DISCONTINUED OPERATIONS - Carry
DISCONTINUED OPERATIONS - Carrying amounts of major classes of liabilities (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Discontinued operations, abandonment | Online P2P Lending Services | ||
Current liabilities | ||
Accrued expenses and other liabilities | $ 459,186 | $ 487,829 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
ACCOUNTS RECEIVABLE | |||
Less: Allowance for credit losses | $ 0 | $ 0 | $ (112,905) |
Accounts receivable | 82,288 | 158,435 | |
Receivables of automobile sales due from automobile purchasers | |||
ACCOUNTS RECEIVABLE | |||
Total due from related parties | 18,306 | 76,106 | |
Receivables of online ride hailing fees from online ride-hailing drivers | |||
ACCOUNTS RECEIVABLE | |||
Total due from related parties | 35,782 | 51,290 | |
Receivables of operating lease | |||
ACCOUNTS RECEIVABLE | |||
Total due from related parties | $ 28,200 | $ 31,039 |
ACCOUNTS RECEIVABLE - Movement
ACCOUNTS RECEIVABLE - Movement of allowance for credit losses (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
ACCOUNTS RECEIVABLE | ||
Beginning balance | $ 0 | $ 112,905 |
Addition | 3,394 | |
Write off | (107,868) | |
Translation adjustment | (8,431) | |
Ending balance | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
INVENTORIES | ||
Inventories | $ 0 | $ 6,678 |
Automobiles | ||
INVENTORIES | ||
Inventories | $ 0 | $ 6,678 |
INVENTORIES - Additional inform
INVENTORIES - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Mar. 31, 2023 | |
Automobiles for sale or sales-type leases | |||
INVENTORIES | |||
Inventory net available for sale | $ 6,678 | ||
Automobiles held for sale | |||
INVENTORIES | |||
Impairment of inventories | $ 0 | $ 3,085 |
PREPAYMENTS, OTHER RECEIVABLE_3
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET | ||
Deposits | $ 766,111 | $ 679,794 |
Prepaid expenses | 378,745 | 334,297 |
Receivables from aggregation platforms | 271,595 | 271,791 |
Value added tax ("VAT") recoverable | 35,393 | 86,051 |
Due from automobile purchasers, net | 10,001 | 45,489 |
Employee advances | 7,241 | 11,482 |
Others | 22,505 | 9,339 |
Total prepayments, other receivables and other assets, net | $ 1,491,591 | $ 1,438,243 |
PREPAYMENTS, OTHER RECEIVABLE_4
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET - Additional information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS, NET | ||||
Allowance recovered for credit losses | $ 0 | $ 0 | $ 0 | $ 6,431 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | |||||
Subtotal | $ 4,872,000 | $ 4,872,000 | $ 4,979,447 | ||
Less: accumulated depreciation and amortization | (1,926,770) | (1,926,770) | (1,635,990) | ||
Total property and equipment, net | 2,945,230 | 2,945,230 | 3,343,457 | ||
Depreciation expense | 223,595 | $ 317,935 | 458,567 | $ 606,482 | |
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Subtotal | 172,458 | 172,458 | 183,216 | ||
Computer equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Subtotal | 35,268 | 35,268 | 37,932 | ||
Office equipment, fixture and furniture | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Subtotal | 73,771 | 73,771 | 78,372 | ||
Automobiles | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Subtotal | $ 4,590,503 | $ 4,590,503 | $ 4,679,927 |
INTANGIBLE ASSETS, NET - Intang
INTANGIBLE ASSETS, NET - Intangible assets (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
INTANGIBLE ASSETS, NET | ||
Subtotal | $ 1,206,465 | $ 1,234,938 |
Less: accumulated amortization | (532,956) | (460,614) |
Total intangible assets, net | 673,509 | 774,324 |
Software | ||
INTANGIBLE ASSETS, NET | ||
Subtotal | 790,834 | 793,381 |
Online ride-hailing platform operating licenses | ||
INTANGIBLE ASSETS, NET | ||
Subtotal | $ 415,631 | $ 441,557 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization expense (Details) | Sep. 30, 2023 USD ($) |
INTANGIBLE ASSETS, NET | |
Twelve months ending September 30, 2024 | $ 179,607 |
Twelve months ending September 30, 2025 | 134,048 |
Twelve months ending September 30, 2026 | 89,638 |
Twelve months ending September 30, 2027 | 77,593 |
Twelve months ending September 30, 2028 | 77,364 |
Thereafter | 115,259 |
Total | $ 673,509 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INTANGIBLE ASSETS, NET | ||||
Amortization expense | $ 52,484 | $ 48,008 | $ 87,321 | $ 93,724 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) | 1 Months Ended | ||
Mar. 31, 2023 USD ($) agreement | Sep. 30, 2022 USD ($) agreement | Sep. 30, 2023 USD ($) | |
OTHER NON-CURRENT ASSETS | |||
Outstanding balance of operating lease payments | $ 489,607 | ||
Purchase Agreements | |||
OTHER NON-CURRENT ASSETS | |||
Number of automobiles purchased | agreement | 150 | 150 | |
Outstanding balance of operating lease payments | $ 2,301,261 | $ 2,301,261 | |
Prepayments of automobiles purchased | $ 716,407 | $ 633,224 |
BORROWINGS FROM A FINANCIAL I_3
BORROWINGS FROM A FINANCIAL INSTITUTION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 11, 2023 | Mar. 31, 2023 | |
BORROWINGS FROM A FINANCIAL INSTITUTION | ||||||
Total | $ 246,710 | $ 246,710 | $ 8,813 | |||
Borrowing from a financial institution, current | 105,733 | 105,733 | 8,813 | |||
Borrowing from a financial institution, non-current | 140,977 | 140,977 | ||||
Interest expense | $ 2,233 | $ 0 | $ 2,758 | $ 0 | ||
WeBank | ||||||
BORROWINGS FROM A FINANCIAL INSTITUTION | ||||||
Interest rate | 12.24% | 12.24% | 12.24% | |||
Total | $ 246,710 | $ 246,710 | $ 246,710 | |||
SDIC Taikang Trust Co. Ltd | ||||||
BORROWINGS FROM A FINANCIAL INSTITUTION | ||||||
Interest rate | 13.04% | 13.04% | ||||
Total | $ 8,813 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued payroll and welfare | $ 1,669,082 | $ 1,636,092 |
Payables to drivers from aggregation platforms | 1,221,391 | 1,103,892 |
Deposits | 868,168 | 730,002 |
Accrued expenses | 346,145 | 226,721 |
Payables for expenditures on automobile transaction and related services | 26,525 | 31,719 |
Other taxes payable | 85,023 | 83,432 |
Loan repayments received on behalf of financial institutions | 7,139 | 16,130 |
Other payables | 60,051 | 37,348 |
Total accrued expenses and other liabilities | 4,283,524 | 3,865,336 |
Continuing operations | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Total accrued expenses and other liabilities | 3,824,338 | 3,377,507 |
Discontinued operations | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Total accrued expenses and other liabilities | $ 459,186 | $ 487,829 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - Continuing operations - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
EMPLOYEE BENEFIT PLAN | |||||
Defined contribution cost | $ 76,692 | $ 104,577 | $ 151,535 | $ 230,641 | |
Defined benefit obligation | $ 1,065,299 | $ 1,065,299 | $ 1,086,526 |
EQUITY - IPO Warrants (Details)
EQUITY - IPO Warrants (Details) | 6 Months Ended |
Sep. 30, 2023 $ / shares shares | |
IPO Warrants | |
EQUITY | |
Total number of shares | 3,794 |
Common stock | |
EQUITY | |
Shares in a unit | 1 |
Price per share | $ / shares | $ 48 |
Warrant Exercisable Term | Mar. 16, 2018 |
Common stock | Reverse split | |
EQUITY | |
Price per share | $ / shares | $ 4.80 |
Common stock | IPO Warrants | |
EQUITY | |
Warrants to purchase shares of common stock | 33,794 |
Common stock | IPO Warrants | Pre reverse split | |
EQUITY | |
Warrants to purchase shares of common stock | 337,940 |
EQUITY - 2019 Registered Direct
EQUITY - 2019 Registered Direct Offering Warrants (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
EQUITY | ||||
Change in fair value of derivative liabilities | $ (363,839) | $ (1,611,093) | $ 6 | |
2019 Registered Direct Offering Warrants | ||||
EQUITY | ||||
Total number of shares | 16,841 | |||
Change in fair value of derivative liabilities | $ 922 | $ 16,841 | $ 11,696 |
EQUITY - August 2020 Underwrite
EQUITY - August 2020 Underwriters' Warrants (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
EQUITY | |||||
Change in fair value of derivative liabilities | $ (363,839) | $ (1,611,093) | $ 6 | ||
August 2020 Underwriters' Warrants | |||||
EQUITY | |||||
Total number of shares | 31,808 | 31,808 | 31,808 | ||
Change in fair value of derivative liabilities | $ 1,122 | $ 2,218 | $ 6,803 | $ 33,346 | |
Fair value of the derivative instrument | $ 1,647 | $ 1,647 | $ 8,450 |
EQUITY - February 2021 Register
EQUITY - February 2021 Registered Direct Offering Warrants (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
EQUITY | |||||
Change in fair value of derivative liabilities | $ (363,839) | $ (1,611,093) | $ 6 | ||
February 2021 Registered Direct Offering Warrants | |||||
EQUITY | |||||
Total number of shares | 53,262 | 53,262 | 53,262 | ||
Change in fair value of derivative liabilities | $ 1,496 | $ 3,138 | $ 9,280 | $ 49,629 | |
Fair value of the derivative instrument | $ 2,211 | $ 2,211 | $ 11,491 |
EQUITY - May 2021 Registered Di
EQUITY - May 2021 Registered Direct Offering Warrants (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
EQUITY | |||||
Change in fair value of derivative liabilities | $ (363,839) | $ (1,611,093) | $ 6 | ||
May 2021 Registered Direct Offering Warrants | |||||
EQUITY | |||||
Total number of shares | 594,682 | 594,682 | |||
Change in fair value of derivative liabilities | $ 21,792 | $ 53,971 | $ 132,125 | $ 629,066 | |
Fair value of the derivative instrument | $ 41,983 | $ 41,983 | $ 174,108 |
EQUITY - November 2021 Private
EQUITY - November 2021 Private Placement Warrants (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 06, 2022 | Nov. 30, 2021 item D $ / shares shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Nov. 18, 2022 $ / shares | |
EQUITY | ||||||||
Exercise price of warrants | $ 0.82 | |||||||
Original exercise price | $ 0.82 | |||||||
Change in fair value of derivative liabilities | $ | $ (363,839) | $ (1,611,093) | $ 6 | |||||
November 2021 Private Placement Warrants | ||||||||
EQUITY | ||||||||
Number of lowest trading days | D | 5 | |||||||
Consecutive trading day period | 20 days | |||||||
Number of volume weighted average price | item | 5 | |||||||
Exercise price of warrants | $ 1.13 | $ 1,533 | ||||||
Reverse stock split | 0.1 | |||||||
Original exercise price | $ 1.13 | $ 1,533 | ||||||
Total number of shares | shares | 5,335,763 | 92,102 | 92,102 | |||||
Change in fair value of derivative liabilities | $ | $ 35,256 | $ 77,666 | $ 215,625 | $ 887,356 | $ 307,727 |
EQUITY - Warrants Outstanding (
EQUITY - Warrants Outstanding (Details) - Warrant - $ / shares | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2021 | |
Warrants Outstanding | |||
Balance at the beginning | 6,066,298 | ||
Exercised | (25,000) | ||
Forfeited | (20,635) | ||
Balance at the end | 6,045,663 | 6,066,298 | 6,091,298 |
Warrants Exercisable | |||
Balance at the beginning | 6,066,298 | ||
Exercised | (25,000) | ||
Forfeited | (20,635) | ||
Balance at the end | 6,045,663 | 6,066,298 | 6,091,298 |
Weighted Average Exercise Price | |||
Balance at the beginning | $ 2.29 | ||
Balance at the end | $ 2.25 | $ 2.29 | $ 2.28 |
Average remaining contractual life | 3 years 21 days | 3 years 6 months 21 days | 4 years 3 months 25 days |
EQUITY - Restricted Stock Units
EQUITY - Restricted Stock Units (Details) - Restricted stock units | Oct. 29, 2021 installment | Oct. 29, 2020 USD ($) shares |
EQUITY | ||
Granted | 127,273 | |
Aggregate fair value | $ | $ 140,000 | |
Number of quarterly installments | installment | 4 | |
Vested | 12,727 | |
Settled | 9,545 | |
Pre reverse split | ||
EQUITY | ||
Vested | 127,273 | |
Settled | 95,457 |
EQUITY - Equity Incentive Plan
EQUITY - Equity Incentive Plan (Details) | 6 Months Ended | ||
Oct. 29, 2020 shares | Nov. 08, 2018 director shares | Sep. 30, 2023 shares | |
RSU | |||
EQUITY | |||
Grants of RSUs | 127,273 | ||
Equity Incentive Plan | |||
EQUITY | |||
Number of directors ceased to serve | director | 2 | ||
Common stock to be issued | 1,500,000 | ||
Aggregate RSU | 26,447 | ||
Equity Incentive Plan | RSU | |||
EQUITY | |||
Grants of RSUs | 30,379 | ||
Forfeited RSUs | 750 |
EQUITY - 1-for- 10 shares rever
EQUITY - 1-for- 10 shares reverse split on common stock (Details) | 6 Months Ended |
Sep. 30, 2023 shares | |
EQUITY | |
Additional shares of common stock round up issue | 8,402 |
EQUITY - Conversion Price Adjus
EQUITY - Conversion Price Adjustment for November 2021 Preferred Shares (Details) - USD ($) | 6 Months Ended | ||||
Sep. 30, 2023 | Mar. 31, 2023 | Aug. 09, 2022 | Apr. 06, 2022 | Nov. 30, 2021 | |
EQUITY | |||||
Floor Price | $ 0.41 | ||||
Threshold percentage on closing bid price | 85% | ||||
Exercise price of warrants | $ 0.82 | ||||
Series A convertible preferred stock | $ 234,364 | $ 269,386 | |||
Private Placement | |||||
EQUITY | |||||
Initial conversion price | $ 2 | $ 4.10 | |||
Exercise price of warrants | $ 4.1 | ||||
Number of common stock that are available to be issued upon conversion of the Preferred Shares | 2,240,000 | 1,092,683 | |||
Series A Convertible Preferred Stock | |||||
EQUITY | |||||
Preferred stock, shares outstanding | 991 | 1,641 | |||
Number of shares converted | 4,009 | ||||
Number of shares issued upon conversion | 495,706 | 1,871,125 | |||
Series A Convertible Preferred Stock | Private Placement | |||||
EQUITY | |||||
Initial conversion price | $ 0.68 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
INCOME TAXES | |||
Net operating loss included in operating loss carryforwards | $ 600,000 | $ 800,000 | |
Deferred tax assets operating loss carryforwards | $ 7,800,000 | $ 7,100,000 | |
Percentage on income tax rate reconciliation | 80% | ||
Valuation allowance percentage on deferred tax asset | 100% | 100% | |
Valuation allowances for deferred tax asset | $ 1,600,000 | $ 1,500,000 | |
U.S. federal corporate income tax rate | 21% | ||
Operating loss carryforwards | $ 11,200,000 | 9,600,000 | |
Operating loss carryforwards expiration year | 2025 | ||
Net operating loss carryforwards in the PRC | $ 2,585,096 | 2,403,785 | |
Allowance for credit losses | 378,959 | 402,599 | |
Continuing operations | |||
INCOME TAXES | |||
Valuation allowances for deferred tax asset | 4,597,351 | 4,305,991 | |
Net operating loss carryforwards in the PRC | 2,585,096 | 2,403,785 | |
Allowance for credit losses | 378,959 | 402,599 | |
Discontinued operations | |||
INCOME TAXES | |||
Valuation allowances for deferred tax asset | 451,229 | 479,377 | |
Operating loss carryforwards | 1,800,000 | 1,900,000 | |
Net operating loss carryforwards in the PRC | $ 451,229 | $ 479,377 | |
State Administration of Taxation, China | |||
INCOME TAXES | |||
PRC statutory tax rate | 25% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
INCOME TAXES | ||
Net operating loss carryforwards in the PRC | $ 2,585,096 | $ 2,403,785 |
Allowance for credit losses | 378,959 | 402,599 |
Less: valuation allowance | (1,600,000) | (1,500,000) |
Continuing operations | ||
INCOME TAXES | ||
Net operating loss carryforwards in the PRC | 2,585,096 | 2,403,785 |
Net operating loss carryforwards in the U.S. | 1,633,296 | 1,499,607 |
Allowance for credit losses | 378,959 | 402,599 |
Less: valuation allowance | (4,597,351) | (4,305,991) |
Deferred tax assets, net | 0 | 0 |
Deferred tax liabilities: | ||
Capitalized intangible assets cost | 40,409 | 42,930 |
Deferred tax liabilities, net | 40,409 | 42,930 |
Discontinued operations | ||
INCOME TAXES | ||
Net operating loss carryforwards in the PRC | 451,229 | 479,377 |
Less: valuation allowance | (451,229) | (479,377) |
Deferred tax assets, net | $ 0 | $ 0 |
CONCENTRATION (Details)
CONCENTRATION (Details) - item | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONCENTRATION | ||||
Number of suppliers | 4 | 4 | ||
Continuing operations | ||||
CONCENTRATION | ||||
Number of suppliers | 2 | 2 | ||
Revenue | Supplier Concentration Risk | Suppliers One | ||||
CONCENTRATION | ||||
Percentage of total costs of revenue | 19.20% | 21.50% | ||
Revenue | Supplier Concentration Risk | Suppliers One | Continuing operations | ||||
CONCENTRATION | ||||
Percentage of total costs of revenue | 20.20% | 21.10% | ||
Revenue | Supplier Concentration Risk | Supplier Two | ||||
CONCENTRATION | ||||
Percentage of total costs of revenue | 12.80% | 13.20% | ||
Revenue | Supplier Concentration Risk | Supplier Two | Continuing operations | ||||
CONCENTRATION | ||||
Percentage of total costs of revenue | 10.40% | 12.30% | ||
Revenue | Supplier Concentration Risk | Suppliers Three | ||||
CONCENTRATION | ||||
Percentage of total costs of revenue | 13.30% | 13.10% | ||
Revenue | Supplier Concentration Risk | Suppliers Four | ||||
CONCENTRATION | ||||
Percentage of total costs of revenue | 11.10% | 12.40% |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 USD ($) agreement | Nov. 30, 2018 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Related party | Jinkailong | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Accounts receivable, a related party | $ 6,312 | |||
Related party | Youlu | Discontinued operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Balance due from related party | $ 17,641 | $ 17,641 | ||
Related party | Hong Li, supervisor of Sichuan Senmiao | Lease I | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Number of lease agreements entered | agreement | 2 | |||
Related party | Hong Li, supervisor of Sichuan Senmiao | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Operating lease rental expenses | 29,956 | 60,283 | ||
Related party | Hunan Dingchentai Investment Co., Ltd | Lease II | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Operating leases annual rental payments | $ 44,250 | |||
Related party | Hunan Dingchentai Investment Co., Ltd | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Operating lease rental expenses | 10,481 | 20,618 | ||
Equity investee | Jinkailong | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Balance due from related party | 3,640,206 | 3,640,206 | ||
Accounts receivable, a related party | $ 8,018 | $ 8,018 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Due from related parties from the Company's continuing operations (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Less: Allowance for credit losses | $ 0 | $ 0 | $ (112,905) |
Due from related parties, net | 82,288 | 158,435 | |
Continuing operations | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Less: Allowance for credit losses | 0 | 0 | |
Related party | Jinkailong | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Due from related parties, net | 4,250,553 | ||
Accounts receivable, net, noncurrent | 478,116 | ||
Related party | Continuing operations | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Due from related parties, net | 3,772,437 | 5,106,100 | |
Related party | Continuing operations | Jinkailong | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Total due from related parties | 6,327,062 | 6,610,156 | |
Less: Allowance for credit losses | (2,058,868) | (1,481,036) | |
Due from related parties, net | 4,268,194 | 5,129,120 | |
Due from related parties, net, current portion | 2,123,301 | 1,488,914 | |
Accounts receivable, net, noncurrent | $ 2,144,893 | $ 3,640,206 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Movement of allowance for doubtful accounts (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Beginning balance | $ 0 | $ 112,905 | $ 112,905 |
Addition | 680,396 | $ 344,436 | |
Translation adjustment | (8,431) | ||
Ending balance | 0 | 0 | |
Continuing operations | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Related party | Continuing operations | Jinkailong | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Beginning balance | 1,481,036 | ||
Addition | 680,396 | 1,484,495 | |
Translation adjustment | (102,564) | (3,459) | |
Ending balance | 2,058,868 | 1,481,036 | |
Related party | Continuing operations | Youlu | |||
RELATED PARTY TRANSACTIONS AND BALANCES | |||
Balance due from related party | $ 17,641 | $ 23,020 |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND BALANCES - Prepayment related party (Details) - Related party - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Prepayment - a related party | $ 146,409 | |
Jinkailong | ||
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Prepayment - a related party | $ 146,409 | $ 0 |
RELATED PARTY TRANSACTIONS AN_7
RELATED PARTY TRANSACTIONS AND BALANCES - Due to related parties and affiliates (Details) - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
Related Party Transaction [Line Items] | ||
Loan payable to related parties | $ 7,139 | $ 16,130 |
Related Party [Member] | Xi Wen [Member] | ||
Related Party Transaction [Line Items] | ||
Loan payable to related parties | $ 1,510 | $ 8,667 |
RELATED PARTY TRANSACTIONS AN_8
RELATED PARTY TRANSACTIONS AND BALANCES - Operating lease right-of-use assets, net, related parties and Operating lease liabilities - related party (Details) - Related Party. [Member] - USD ($) | Sep. 30, 2023 | Mar. 31, 2023 |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Operating lease right-of-use assets - related parties | $ 356,636 | $ 92,916 |
Operating lease liabilities, current - related parties | 293,486 | 143,462 |
Operating lease liabilities, non-current - related parties | 196,121 | 42,247 |
Lease I [Member] | ||
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Operating lease right-of-use assets - related parties | 287,660 | |
Operating lease liabilities, current - related parties | 242,392 | 82,069 |
Operating lease liabilities, non-current - related parties | 175,949 | |
Lease II [Member] | ||
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Operating lease right-of-use assets - related parties | 68,976 | 92,916 |
Operating lease liabilities, current - related parties | 51,094 | 61,393 |
Operating lease liabilities, non-current - related parties | $ 20,172 | $ 42,247 |
RELATED PARTY TRANSACTIONS AN_9
RELATED PARTY TRANSACTIONS AND BALANCES - Related Party Transactions (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) agreement | Sep. 30, 2022 USD ($) | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Revenues | $ 1,826,951 | $ 2,241,202 | $ 3,921,665 | $ 4,582,998 |
Rental cost | 1,452,840 | 1,932,384 | 2,965,614 | 3,814,200 |
Jinkailong | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Revenues | 8,399 | 77,113 | 22,147 | 292,573 |
Rental cost | 182,165 | 102,160 | $ 392,344 | 148,502 |
Related party | Hong Li, supervisor of Sichuan Senmiao | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Number of lease agreements entered | agreement | 3 | |||
Operating lease rental expenses | 47,023 | 108,509 | ||
Related party | Hunan Dingchentai Investment Co., Ltd | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Operating lease rental expenses | 20,327 | 34,870 | ||
Equity investee | Jinkailong | Continuing operations | ||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||
Promotion fee | $ 0 | $ 24,026 | $ 11,434 | $ 68,209 |
LEASES - Operating and finance
LEASES - Operating and finance lease expenses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finance lease cost | ||||
Amortization of leased asset | $ 214,120 | $ 417,836 | ||
Total lease expenses | $ 672,053 | $ 771,094 | 1,323,885 | 1,555,204 |
Continuing operations | ||||
Finance lease cost | ||||
Interest on lease liabilities | 7,594 | 1,153 | 16,316 | 8,301 |
Cost of revenues | ||||
Operating lease cost | ||||
Automobile lease costs | 544,982 | 521,632 | 1,060,856 | 1,057,955 |
Finance lease cost | ||||
Amortization of leased asset | 58,991 | 58,630 | 120,659 | 129,053 |
Selling, general and administrative | ||||
Operating lease cost | ||||
Lease expenses | 60,486 | 107,434 | 125,772 | 225,260 |
General and administrative | ||||
Finance lease cost | ||||
Amortization of leased asset | 82,245 | 282 | 134,635 | |
Interest expenses on finance leases | ||||
Finance lease cost | ||||
Interest on lease liabilities | $ 7,594 | $ 1,153 | $ 16,316 | $ 8,301 |
LEASES - Lease obligations in f
LEASES - Lease obligations in future periods (Details) | Sep. 30, 2023 USD ($) |
Operating lease payments | |
Twelve months ending September 30, 2024 | $ 333,926 |
Twelve months ending September 30, 2025 | 188,616 |
Twelve months ending September 30, 2026 | 83,943 |
Total lease payments | 606,485 |
Less: discount | (24,269) |
Present value of lease liabilities | 582,216 |
Finance lease payments | |
Twelve months ending September 30, 2024 | 255,360 |
Twelve months ending September 30, 2025 | 254,934 |
Total lease payments | 510,294 |
Less: discount | (29,757) |
Present value of lease liabilities | 480,537 |
Lease payments | |
Twelve months ending September 30, 2024 | 589,286 |
Twelve months ending September 30, 2025 | 443,550 |
Twelve months ending September 30, 2026 | 83,943 |
Total lease payments | 1,116,779 |
Less: discount | (54,026) |
Present value of lease liabilities | 1,062,753 |
Outstanding balance of operating lease payments | $ 489,607 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases | ||||
Remaining operating lease term | 2 years 5 months 12 days | 2 years 5 months 12 days | ||
Remaining finance lease term | 2 years 10 days | 2 years 10 days | ||
Minimum | ||||
Leases | ||||
Effective interest rate | 4% | 4% | ||
Maximum | ||||
Leases | ||||
Effective interest rate | 6% | 6% | ||
Continuing operations | ||||
Leases | ||||
Interest expense on finance leases | $ 7,594 | $ 1,153 | $ 16,316 | $ 8,301 |
Continuing operations | Operating lease for automobiles | ||||
Leases | ||||
Operating lease rental expenses | 544,982 | 521,632 | 1,060,856 | 1,057,955 |
Continuing operations | Operating lease from offices and showroom | ||||
Leases | ||||
Operating lease rental expenses | 60,486 | 107,434 | 125,772 | 225,260 |
Amortization expense of leased asset | $ 45,509 | $ 58,515 | $ 93,179 | $ 154,148 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Millions | 6 Months Ended | ||||
Mar. 28, 2023 USD ($) item | Sep. 30, 2023 USD ($) item | Sep. 30, 2022 USD ($) | Sep. 30, 2023 CNY (¥) item | Sep. 23, 2022 USD ($) item | |
COMMITMENTS AND CONTINGENCIES | |||||
Number of automobiles is required to purchase in cash | item | 30 | 30 | |||
Amount of automobiles is required to purchase in cash | $ 500,000 | $ 1,500,000 | |||
Total number of automobiles | item | 50 | 150 | 150 | 100 | |
Aggregate purchase price | $ 800,000 | $ 1,200,000 | |||
Purchase deposit | $ 500,000 | 600,000 | $ 600,000 | ||
Loss contingency accrual, provision | 501 | $ 7,418 | |||
Amount of automobiles is required to purchase commitment | 1,200,000 | ||||
Chengdu Industrial Impawn Co | Master Contact | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Loss contingency, amount past due including interest to financial institutions | 821,000 | ||||
Jinkailong | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Amount to be remitted for the overdue lease payment | $ 3,100,000 | ||||
Percentage of contingent liabilities | 48% | ||||
Percentage of equity interest ownership | 35% | 35% | |||
Maximum amount of obligation if liquidated | $ 480,000 | ¥ 3.5 | |||
Liabilities (in percent) | 35% | ||||
Fair market value of the collateral | $ 1,500,000 | ||||
Loss contingency, amount past due including interest to financial institutions | 2,100,000 | ||||
Loss contingency, amount of interest past due to financial institutions | $ 187,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
SEGMENT INFORMATION | ||||||
Revenues | $ 1,826,951 | $ 2,241,202 | $ 3,921,665 | $ 4,582,998 | ||
Interest income | 158 | 398 | 337 | 973 | ||
Depreciation and amortization | 380,579 | 565,333 | 760,008 | 1,118,042 | ||
Loss from operations | (1,281,945) | (1,585,206) | (2,070,367) | (3,025,801) | ||
Loss before income taxes | (1,207,452) | (1,179,804) | (1,628,799) | (935,884) | ||
Net income (loss) | (1,207,452) | $ (421,347) | (1,179,804) | $ 243,920 | (1,628,799) | (935,884) |
Capital Expenditure | 27,386 | 357,909 | 28,793 | |||
Corporate Non Segment | ||||||
SEGMENT INFORMATION | ||||||
Interest income | 6 | 15 | 9 | 44 | ||
Depreciation and amortization | 19,637 | 39,224 | 40,665 | 41,660 | ||
Loss from operations | (310,373) | (347,648) | (691,197) | (979,103) | ||
Loss before income taxes | (250,707) | (365,065) | (327,358) | 631,990 | ||
Net income (loss) | (250,707) | (365,065) | (327,358) | 631,990 | ||
Automobile Transaction and Related Services | Operating Segments | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 1,183,138 | 1,268,499 | 2,372,246 | 2,422,775 | ||
Interest income | 118 | 332 | 267 | 825 | ||
Depreciation and amortization | 345,583 | 507,122 | 689,715 | 1,040,916 | ||
Loss from operations | (847,276) | (866,265) | (1,182,242) | (1,158,053) | ||
Loss before income taxes | (817,080) | (189,360) | (1,083,272) | (242,608) | ||
Net income (loss) | (817,080) | (189,360) | (1,083,272) | (242,608) | ||
Capital Expenditure | 493 | 357,909 | 1,900 | |||
Online Ride-hailing Platform Services | Operating Segments | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 643,813 | 972,703 | 1,549,419 | 2,160,223 | ||
Interest income | 34 | 51 | 61 | 104 | ||
Depreciation and amortization | 15,359 | 18,987 | 29,628 | 35,466 | ||
Loss from operations | (124,296) | (371,293) | (196,928) | (888,645) | ||
Loss before income taxes | (139,665) | (625,379) | (218,169) | (1,325,266) | ||
Net income (loss) | $ (139,665) | (625,379) | $ (218,169) | (1,325,266) | ||
Capital Expenditure | $ 26,893 | $ 26,893 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional information (Details) | 6 Months Ended | |
Sep. 30, 2023 USD ($) segment | Mar. 31, 2023 USD ($) | |
SEGMENT INFORMATION | ||
Number of reportable segments | segment | 2 | |
Total assets | $ 12,658,665 | $ 14,238,615 |
Automobile transaction and related services | ||
SEGMENT INFORMATION | ||
Total assets | 10,856,726 | 12,579,764 |
Online Ride-hailing Platform Services | ||
SEGMENT INFORMATION | ||
Total assets | 899,967 | 937,400 |
Unallocated | ||
SEGMENT INFORMATION | ||
Total assets | $ 901,972 | $ 721,451 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 6 Months Ended | |||||||
Nov. 07, 2023 shares | Nov. 03, 2023 USD ($) | Oct. 12, 2023 USD ($) | Nov. 30, 2023 installment | Oct. 31, 2023 D item $ / shares shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2023 CNY (¥) | Nov. 03, 2023 CNY (¥) | Mar. 31, 2023 $ / shares | |
SUBSEQUENT EVENTS | |||||||||
Common stock, par value (in dollar per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Jinkailong | |||||||||
SUBSEQUENT EVENTS | |||||||||
Amount to be remitted for the overdue lease payment | $ 3,100,000 | ||||||||
Litigation in Chengdu Wuhou District Court for breaching the automobile lease contracts | Chengdu Green Sichuan Automobile Service Co., Ltd | Jinkailong | |||||||||
SUBSEQUENT EVENTS | |||||||||
Lease payments | $ 118,000 | ¥ 860,000 | |||||||
Subsequent event | Consulting Agreements | Consultants | |||||||||
SUBSEQUENT EVENTS | |||||||||
Number of consultant | item | 3 | ||||||||
Common stock to be issued | shares | 1,500,000 | ||||||||
Common stock, par value (in dollar per share) | $ / shares | $ 0.0001 | ||||||||
Common stock issuance payable number of days | D | 10 | ||||||||
Common stock issued | shares | 1,500,000 | ||||||||
Subsequent event | Litigation in Chengdu Wuhou District Court for breaching the automobile lease contracts | Chengdu Green Sichuan Automobile Service Co., Ltd | Jinkailong | |||||||||
SUBSEQUENT EVENTS | |||||||||
Amount sought | $ 380,582 | ||||||||
Settlement amount agreed to be paid | $ 76,000 | ||||||||
Settlement amount installments | installment | 3 | ||||||||
Amount to be remitted for the overdue lease payment | $ 27,412 | ¥ 200,000 |