Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Jul. 28, 2021 | Mar. 31, 2022 | |
Document Information [Line Items] | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2022 | |
Entity File Number | 001-38245 | |
Entity Registrant Name | Akso Health Group | |
Entity Incorporation, State or Country Code | E9 | |
Entity Address, Address Line One | Room 515, Floor 5, Jia No. 92-4 to 24 Jianguo Road | |
Entity Address, Address Line Two | Chaoyang District | |
Entity Address, City or Town | Beijing | |
Entity Address, Postal Zip Code | 100020 | |
Entity Address, Country | CN | |
Entity Common Stock, Shares Outstanding | 68,598,050 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Auditor Name | Wei, Wei & Co. LLP | OneStop Assurance PAC |
Auditor Location | Flushing, New York | Singapore |
Auditor Firm ID | 6732 | |
Document Fiscal Period Focus | FY | |
ICFR Auditor Attestation Flag | false | |
Entity Central Index Key | 0001702318 | |
Amendment Flag | false | |
Business Contact | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | Room 515, Floor 5, Jia No. 92-4 to 24 Jianguo Road | |
Entity Address, Address Line Two | Chaoyang District | |
Entity Address, City or Town | Beijing | |
Entity Address, Postal Zip Code | 100020 | |
Entity Address, Country | CN | |
Country Region | 86 | |
City Area Code | 10 | |
Local Phone Number | 5370 9902 | |
Contact Personnel Name | Rui (Kerrie) Zhang | |
Contact Personnel Email Address | ir@xiaobaimaimai.com | |
American depository shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | American depositary shares (one American depositary share representing three ordinary shares, par value US$0.0001 per share) | |
Trading Symbol | AHG | |
Security Exchange Name | NASDAQ | |
Common stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Ordinary shares, par value US$0.0001 per share | |
Security Exchange Name | NASDAQ | |
No Trading Symbol Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 21,925,322 | $ 15,128,719 |
Accounts receivable, net | 15,247 | 28,362 |
Loans receivable, net - current | 5,488,045 | |
Prepayments and other assets | 887,960 | 604,524 |
Inventories | 7,795,822 | |
Other receivable - current | 20,000,000 | 8,872,838 |
TOTAL CURRENT ASSETS | 50,624,351 | 30,122,488 |
Property and equipment, net | 55,433 | 66,887 |
Other receivable - non-current | 1,496,121 | |
TOTAL ASSETS | 50,679,784 | 31,685,496 |
CURRENT LIABILITIES: | ||
Accrued expenses and other current liabilities | 1,069,049 | 1,142,507 |
Taxes payable | 125,153 | 302,682 |
Amount due to related parties | 37,200,000 | 2,968,782 |
Note payable - current | 10,000,000 | |
TOTAL CURRENT LIABILITIES | 38,394,202 | 14,413,971 |
TOTAL LIABILITIES | 38,394,202 | 14,413,971 |
COMMITMENTS AND CONTINGENCIES (Note 23) | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary share ($0.0001 par value, 500,000,000 shares authorized, 69,763,933 and 50,016,457 shares issued, 68,598,050 and 48,850,574 shares outstanding as of March 31, 2022 and 2021, respectively) | 6,977 | 5,002 |
Additional paid-in capital | 71,021,898 | 60,615,048 |
Treasury stock (1,165,883 shares as of March 31, 2022 and 2021, respectively) | (3,988,370) | (3,988,370) |
Deficit | (53,107,676) | (36,256,612) |
Accumulated other comprehensive loss | (1,649,223) | (3,103,543) |
TOTAL SHAREHOLDERS' EQUITY | 12,283,606 | 17,271,525 |
Non-controlling interest | 1,976 | |
TOTAL EQUITY | 12,285,582 | 17,271,525 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 50,679,784 | $ 31,685,496 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Mar. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Ordinary shares, par value (in US dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in shares) | 69,763,933 | 50,016,457 |
Ordinary shares, shares outstanding (in shares) | 68,598,050 | 48,850,574 |
Treasury stock (in shares) | 1,165,883 | 1,165,883 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
REVENUES | |||
REVENUES | $ 6,311,725 | $ 1,772,502 | $ 6,959,372 |
Tax and surcharges | (633) | (17,567) | (44,898) |
Net Revenues | 6,311,092 | 1,754,935 | 6,914,474 |
Cost of goods sold | 5,394,866 | ||
Gross Profit | 916,226 | 1,754,935 | 6,914,474 |
OPERATING EXPENSE | |||
Service and development | 421,186 | 544,572 | 1,032,562 |
Sales and marketing | 240,927 | 1,087,009 | 1,462,798 |
General and administrative | 14,996,104 | 27,217,613 | 20,488,796 |
Impairment charge on long-term investments | 0 | 1,600,000 | 29,189,836 |
Finance cost | 804,138 | 2,154,621 | 2,498,706 |
Share-based compensation | 391,625 | 55,468 | 347,466 |
Total Operating Expenses | 16,853,980 | 32,659,283 | 55,020,164 |
LOSS FROM CONTINUING OPERATIONS | (15,937,754) | (30,904,348) | (48,105,690) |
OTHER INCOME (EXPENSE) | |||
Other income | 40,776 | 100,067 | 1,239,705 |
Other expense | (821,322) | (264,985) | (7,545) |
Total Other Income (Expense), net | (780,546) | (164,918) | 1,232,160 |
(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (16,718,300) | (31,069,266) | (46,873,530) |
PROVISION FOR INCOME TAXES | 131,433 | 482,976 | 489,955 |
NET (LOSS) FROM CONTINUING OPERATIONS | (16,849,733) | (31,552,242) | (47,363,485) |
Net loss income from discontinued operations, net of income taxes | (6,439,549) | (23,834,894) | |
Gain from disposal of discontinued operations, net of income taxes | 3,164,802 | ||
Total loss from discontinued operations | (3,274,747) | (23,834,894) | |
NET (LOSS) | (16,849,733) | (34,826,989) | (71,198,379) |
Less: net income attributable to non-controlling interest | 1,331 | ||
NET (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | (16,851,064) | (34,826,989) | (71,198,379) |
OTHER COMPREHENSIVE (LOSS) | |||
Foreign currency translation adjustment | 1,454,336 | 3,942,157 | (5,288,742) |
COMPREHENSIVE (LOSS) | (15,395,397) | (30,884,832) | (76,487,121) |
Less: comprehensive income attributable to non-controlling interest | 17 | ||
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | $ (15,395,414) | $ (30,884,832) | $ (76,487,121) |
Net (loss) per share | |||
Continuing operations - basic (in dollars per share) | $ (0.28) | $ (0.64) | $ (0.97) |
Continuing operations - diluted (in dollars per share) | (0.28) | (0.64) | (0.97) |
Discontinuing operations - basic (in dollars per share) | (0.07) | (0.49) | |
Discontinuing operations - diluted (in dollars per share) | (0.07) | (0.49) | |
Basic (in dollars per share) | (0.28) | (0.71) | (1.46) |
Diluted (in dollars per share) | $ (0.28) | $ (0.71) | $ (1.46) |
Weighted average shares | |||
Basic (in shares) | 59,612,152 | 48,837,977 | 48,757,199 |
Diluted (in shares) | 59,612,152 | 48,837,977 | 48,757,199 |
Commissions from online marketplace service | |||
REVENUES | |||
REVENUES | $ 96,332 | $ 82,054 | |
Recommendation service and other | |||
REVENUES | |||
REVENUES | $ 3,916,276 | ||
Sale of medical devices | |||
REVENUES | |||
REVENUES | 6,000,000 | ||
Interest income | |||
REVENUES | |||
REVENUES | $ 215,393 | $ 1,690,448 | $ 3,043,096 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Common stock USD ($) shares | Additional Paid-in capital USD ($) | Treasury stock USD ($) shares | Treasury stock USN ($) shares | Retained Earnings (Deficit) USD ($) | Accumulated Other Comprehensive (Loss) USD ($) | Noncontrolling interests USD ($) | USD ($) shares |
Balance at the beginning of the year at Mar. 31, 2019 | $ 4,963 | $ 59,806,865 | $ (1,320,468) | $ 69,768,756 | $ (1,756,958) | $ 126,503,158 | ||
Balance at the beginning of the year (in shares) at Mar. 31, 2019 | shares | 49,625,303 | (421,220) | (421,220) | |||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||
Share-based compensation | 347,466 | 347,466 | ||||||
Exercise of share options | $ 32 | 281,585 | 281,617 | |||||
Exercise of share options (in shares) | shares | 320,020 | |||||||
Exercise of RSU | $ 4 | (4) | ||||||
Exercise of RSU (in shares) | shares | 38,900 | |||||||
Repurchase of ordinary shares | $ (2,667,902) | (2,667,902) | ||||||
Repurchase of ordinary shares (in shares) | shares | (744,663) | (744,663) | ||||||
Net (loss) income | (71,198,379) | (71,198,379) | ||||||
Shareholder's contribution | 123,671 | 123,671 | ||||||
Foreign currency translation adjustment | (5,288,742) | (5,288,742) | ||||||
Balance at the end of the year at Mar. 31, 2020 | $ 4,999 | 60,559,583 | $ (3,988,370) | (1,429,623) | (7,045,700) | 48,100,889 | ||
Balance at the end of the year (in shares) at Mar. 31, 2020 | shares | 49,984,223 | (1,165,883) | (1,165,883) | |||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||
Share-based compensation | 55,468 | 55,468 | ||||||
Exercise of RSU | $ 3 | (3) | ||||||
Exercise of RSU (in shares) | shares | 32,234 | |||||||
Net (loss) income | (34,826,989) | (34,826,989) | ||||||
Foreign currency translation adjustment | 3,942,157 | 3,942,157 | ||||||
Balance at the end of the year at Mar. 31, 2021 | $ 5,002 | 60,615,048 | $ (3,988,370) | (36,256,612) | (3,103,543) | $ 17,271,525 | ||
Balance at the end of the year (in shares) at Mar. 31, 2021 | shares | 50,016,457 | (1,165,883) | (1,165,883) | 48,850,574 | ||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||
Private placement | $ 1,902 | 10,015,298 | $ 10,017,200 | |||||
Private placement (in shares) | shares | 19,020,000 | |||||||
Share-based compensation | 391,625 | 391,625 | ||||||
Capital contribution from non-controlling interest | $ 628 | 628 | ||||||
Exercise of RSU | $ 73 | (73) | ||||||
Exercise of RSU (in shares) | shares | 727,476 | |||||||
Net (loss) income | (16,851,064) | 1,331 | (16,849,733) | |||||
Foreign currency translation adjustment | 1,454,320 | 17 | 1,454,336 | |||||
Balance at the end of the year at Mar. 31, 2022 | $ 6,977 | $ 71,021,898 | $ (3,988,370) | $ (1,165,883) | $ (53,107,676) | $ (1,649,223) | $ 1,976 | $ 12,285,582 |
Balance at the end of the year (in shares) at Mar. 31, 2022 | shares | 69,763,933 | 68,598,050 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income from discontinued operations | $ (3,274,747) | $ (23,834,894) | |
Net (loss) from continuing operations | $ (16,849,733) | (31,552,242) | (47,363,485) |
Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: | |||
Gain from disposal of discontinued operations | (3,164,802) | ||
Depreciation and amortization | 18,390 | 15,161 | 120,520 |
Loss on disposal of property, equipment, and software | 17,137 | 15,993 | |
Share-based compensation | 391,625 | 55,468 | 347,466 |
Allowance for uncollectible loans receivable | 10,375,499 | 22,159,416 | 14,225,449 |
Allowance for accounts receivable and contract assets | 63,849 | ||
Impairment on long-term investments | 0 | 1,600,000 | 29,189,836 |
Changes in operating assets and liabilities: | |||
Accounts receivable and contract assets | 13,893 | (25,427) | (65,765) |
Prepayments and other assets | (506,821) | (112,562) | 109,106 |
Other receivables | 6,013,074 | 23,195,854 | (32,265,179) |
Inventories | (7,795,822) | ||
Deferred tax assets/liabilities | 3,308,297 | ||
Right-of-use assets | 700,148 | (984,818) | |
Accounts payable, accrued expenses and other current liabilities | (104,240) | (82,096) | (176,600) |
Interest payments on unsecured senior notes and short-term bank loan | (2,114,388) | (2,413,014) | |
Taxes payable | (184,236) | 336,883 | (334,234) |
Lease liabilities | (787,322) | 753,622 | |
Net cash provided by (used in) continuing operations | (8,628,371) | 10,241,228 | (35,468,957) |
Net cash (used in) discontinued operations | (182,758) | (22,809,777) | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (8,628,371) | 10,058,470 | (58,278,734) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash paid for loan originations | (1,596,609) | ||
Issuance of loans | (20,000,000) | ||
Cash received from loan repayments | 41,001 | 407,419 | 33,759,916 |
Purchase of long-term investments | (14,594,918) | ||
Proceeds from disposal of property, equipment and software | 7,815 | ||
Acquisitions of property, equipment and software | (4,861) | (200,360) | |
Net cash provided by continuing operations | (19,963,860) | 407,419 | 17,375,844 |
Net cash (used in) discontinued operations | (408,081) | (4,600,481) | |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (19,963,860) | (662) | 12,775,363 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from exercise of share options | 5 | 281,617 | |
Cash received from third party as deposit | 710,429 | ||
Capital contributions by shareholders | 123,671 | ||
Proceeds from private placement | 10,017,200 | ||
Repurchase of ordinary shares | (2,667,902) | ||
Repayments of unsecured senior notes | (10,000,000) | (10,000,000) | |
Amounts due from (to) related parties | 34,763,917 | 925,837 | (6,653,236) |
Net cash provided by (used in) continuing operations | 34,781,117 | (9,074,158) | (8,205,421) |
Net cash provided by discontinued operations | 36,935 | 6,653,236 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 34,781,117 | (9,037,223) | (1,552,185) |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | 607,717 | 3,182,926 | 608,636 |
NET INCREASE (DECREASE) IN CASH | 6,796,603 | 4,203,511 | (46,446,920) |
CASH AND CASH EQUIVALENTS - beginning of year | 15,128,719 | 10,925,208 | 57,372,128 |
CASH AND CASH EQUIVALENTS - end of year | 21,925,322 | 15,128,719 | 10,925,208 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for income tax | 38,616 | 9,764 | 3,209,378 |
Cash paid for interest | $ 676,894 | $ 2,114,388 | 2,413,014 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | |||
Accrued lease liabilities | $ 791,537 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Mar. 31, 2020 USD ($) |
Net Cash Provided by (Used in) Operating Activities | |
Cash and cash equivalents, restricted cash of continuing operations, at end of period | $ 10,925,208 |
Less: cash and cash equivalents, restricted cash of discontinued operations at end of period | 4,257,104 |
Cash and cash equivalents, restricted cash of continuing operations, at end of period | $ 6,668,104 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 12 Months Ended |
Mar. 31, 2022 | |
BUSINESS DESCRIPTION | |
BUSINESS DESCRIPTION | Note 1-BUSINESS DESCRIPTION Organization and description of business Akso Health Group, formerly known as Xiaobai Maimai Inc., is a limited company incorporated under the laws of the Cayman Islands on April 25, 2016. Akso Health Group (“Akso Health”), its subsidiaries, and consolidated variable interest entities (“VIEs”) (collectively the “Company”), previously operated an online Peer to Peer (“P2P”) marketplace business and micro-lending business in the People’s Republic of China (the “PRC”). Since May 2019, the Company has ceased to issue new loans through its micro-lending business and since October 2019, the Company has ceased to conduct its P2P business. On December 30, 2020, the Company completed the disposition transaction of its P2P business. In May 2020, the Company launched its social e-commerce platform to offer high-quality and affordable branded products through collaboration with online and offline merchants. In addition, the Company is in the process of developing a new business as a cancer therapy and radiotherapy oncology service provider with operations in the U.S. The Company plans to open 2 vaccine research centers and 100 radiation oncology centers to be located on the east coast serving cancer patients in need of varying stages of treatment, including specialized radiation therapy centers for radiotherapy (RT), personalized consultation, conventional treatment planning, and other cancer related treatment services. On December 3, 2021, the shareholders approved the Company’s plan to change its name to “Akso Health Group”. In January 2022, three centers were established in US and the Company started its business of sales of medical devices in US market. As of March 31, 2022, the Company’s principal subsidiaries and consolidated VIEs are as follows: Date of incorporation / Place of Percentage of acquisition incorporation legal ownership Principal activities Wholly owned subsidiaries Hexindai Hong Kong Limited (“HK Hexindai”) May 17, 2016 Hong Kong 100% Investment holding Beijing Hexin Yongheng Technology Development Co., Ltd. ( Wholly Owned Foreign Enterprise,“WOFE”) August 8, 2016 PRC 100% Provision of consultancy and information technology (“IT”) support Tianjin Haohongyuan Technology Co., Ltd. (“Tianjin Haohongyuan”) May 25, 2018 PRC 100% Provision of consultancy and IT support HX Asia Investment Limited June 25, 2018 BVI 100% Investment holding HX China Investment Limited January 16, 2019 BVI 100% Investment holding Hexin Investment Private Limited July 15, 2020 Singapore 100% Investment holding We Health Limited (“We Health”) July 8, 2021 New York 100% Investment holding We Healthy Limited (“We Healthy”) December 15, 2021 Hong Kong 51% Investment holding Akso Remote Medical Consultation Center Inc. (“Akso Remote Medical”) January 3, 2022 Wyoming 100% Provision of health treatment services Akso Online MediTech Co., Ltd.(“Akso Online MediTech”) January 4, 2022 Wyoming 100% Sales of medical devices Akso First Health Treatment Center Inc. (“Akso First Health”) January 4, 2022 Massachusetts 100% Provision of health treatment services Qindao Akso Health Management Co., Limited January 26, 2022 PRC 51% Provision of health treatment services VIEs Wusu Hexin Yongheng Trading Co., Ltd (“Wusu Company) August 28, 2017 PRC Consolidated VIE Trading branded products and product promotion Hexin Digital Technology Co., Ltd.(“Hexin Digital “) August 1, 2019 PRC Consolidated VIE Provision of consultancy and IT support Beijing Hexin Jiuding Technology Co., Ltd. (“ Hexin Jiuding ”) January 1, 2021 PRC Consolidated VIE Provision of consultancy and IT support |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Mar. 31, 2022 | |
GOING CONCERN | |
GOING CONCERN | NOTE 2 - GOING CONCERN As indicated in the accompanying consolidated financial statements, the Company had a net loss of approximately $16.8 million for the year ended March 31, 2022 and approximately $34.8 million for the year ended March 31, 2021. The net cash used in operating activities was US $6.8 $10.2 While management cannot accurately predict the prospects and regulatory environment of the social E-commerce industry and healthcare service industry and the full impact of COVID-19 on the Company’s business in fiscal year 2023, the management believes that the Company would have sufficient funds to meet its working capital requirements for fiscal year 2023, and that its capital resources are currently sufficient to maintain its business operations for the next twelve months. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and/or classification of the recorded asset amounts and/or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. Certain prior year balances in the consolidated statements of operations and comprehensive (loss) and cash flows have been reclassified to the current year’s presentation. Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, its consolidated VIEs and VIE’s subsidiaries for which the Company is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. Due to the disposal of the P2P business, which represented a strategic shift and had a major effect on the Company’s results of operations, revenues, costs and expenses related to the P2P Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. Assets and liabilities of the P2P business were reclassified separately from other assets and liabilities of the Company on the consolidated balance sheets. Refer to Note 1 and Note 4. Consolidated VIEs VIE arrangements In order to comply with the PRC laws and regulations which prohibit or restrict foreign investments into companies involved in restricted businesses, the Company operates its marketplace and restricted businesses in the PRC through certain PRC domestic companies, whose equity interests are held by certain management members of the Company or onshore nominees of the Company (“Nominee Shareholders”). The Company obtained control over these PRC domestic companies by entering into a series of contractual arrangements with these PRC domestic companies and their respective Nominee Shareholders. These contractual agreements cannot be unilaterally terminated by the Nominee Shareholders or the PRC domestic companies. As a result, the Company maintains the ability to control these PRC domestic companies and is entitled to substantially all of the economic benefits from these PRC domestic companies. Management concluded that these PRC domestic companies are VIEs of the Company, of which the Company is the ultimate primary beneficiary. As such, the Company consolidated financial results of these PRC domestic companies and their subsidiaries in the Group’s consolidated financial statements. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and the WFOE are further described below. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of consolidation - continued Consolidated VIEs (Continued) Exclusive Business Cooperation Agreements The Exclusive Business Cooperation Agreements enable the WOFE to receive substantially all of the assets and business of the VIEs in the PRC. Under these Agreements, the WOFE has the exclusive right to provide the VIEs with comprehensive technical support, consulting services and other services during the term of these Agreements, including but not limited to software licensing; development, maintenance and update of software, network systems, hardware and database; technical support and training for employees; consultancy on technology and market information; business management consultation; marketing and promotion services, etc. The WOFE has the right to determine the fees associated with the services it provides based on the technical difficulty and complexity of the services, the actual labor costs it incurs for providing the services and some other factors during the relevant period. This Agreements remain effective unless otherwise terminated in writing by WOFE. Equity Interest Pledge Agreements Pursuant to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge their equity interest in the VIEs to the WOFE to secure the performance of the VIEs’ obligations under the Exclusive Business Cooperation Agreements and any such agreements to be entered into in the future. Shareholders of the VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in the VIEs without the prior written consent of the WOFE. The Pledges became effective on such date when the pledge of the Equity Interest contemplated herein were registered with the relevant administration for industry and commerce (the “AIC”) and remain effective until all contract obligations have been fully performed and all secured indebtedness has been fully paid. Exclusive Option Agreements Pursuant to the Exclusive Option Agreements, each of the Shareholders of the VIE irrevocably grant the WOFE an irrevocable and exclusive right to purchase, or designate one or more persons (including individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations) to purchase the equity interests in the VIEs then held by such Shareholder of the VIEs once or at multiple times at any time in part or in whole at the WOFE’s sole and absolute discretion to the extent permitted by Chinese laws at the price of RMB 1 or at the price of the minimum amount of consideration permitted by the applicable PRC law at the time when such purchase occurs. These three Agreements remain effective until all equity interests held by the shareholders of the VIEs in the VIEs have been transferred or assigned to the WOFE and/or its designees. Loan Agreements Pursuant to the three Loan Agreements, the WOFE agreed to lend each of the Shareholders of VIEs a loan only to subscribe to the registered capital of the VIEs. The repayment of the loan shall be made by permitting the WOFE to execute its exclusive right to purchase shares from the shareholders of the VIEs under the Exclusive Option Agreement as the repayment is equivalent to the consideration of the purchased shares. The term of these loans is 10 years, which may be extended upon mutual written consent of all parties. Power of Attorney Each Shareholder of the VIEs, executed a Power of Attorney agreement with the WOFE and the VIEs, whereby Shareholders of the VIEs irrevocably appoint and constitute the WOFE as their attorney-in-fact to exercise on the shareholders’ behalf any and all rights that Shareholders of the VIEs have in respect of their equity interests in the VIEs. These three Power of Attorney documents remain irrevocable and continuously effective and valid as long as the original shareholders of the VIEs remain as the Shareholders of the VIEs. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of consolidation - continued Consolidated VIEs (Continued) Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with the PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in the PRC by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; and/or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Company’s business and operations in the PRC. The Company’s ability to conduct its Online Marketplace business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIEs. The interests of the shareholders of VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, shareholders of the VIEs will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the shareholders of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Company, on the other hand. The Company believes the shareholders of VIEs will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Company with a mechanism to remove the current shareholders of the VIEs should they act to the detriment of the Company. The Company relies on certain current shareholders of the VIEs to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and the shareholders of the VIEs, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of consolidation - continued Consolidated VIEs (Continued) The following financial statement amounts and balances of the consolidated VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. As of As of March 31, 2022 March 31, 2021 USD USD Current Assets: Cash and cash equivalents 2,394,869 10,246,074 Accounts receivable and contract assets, net 15,247 28,362 Loans receivable, net - current — 5,488,045 Prepayments and other assets 55,864 381,297 Other receivable - current — 8,872,838 Amounts due from related parties 27,139,795 13,936,237 Total Current Assets 29,605,775 38,952,853 Property, equipment and software, net 53,888 64,268 Other receivable - non-current — 1,496,121 Total Assets 29,659,663 40,513,242 Current Liabilities Accrued expenses and other current liabilities 77,296 246,210 Taxes payable 11,909 363,484 Total Current Liabilities 89,205 609,694 Total Liabilities 89,205 609,694 Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Net revenues 311,725 1,759,941 5,944,541 Net loss (11,527,588) (24,258,182) (12,532,634) Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Net cash provided by (used in) operating activities 5,613,401 21,401,699 (65,068,631) Net cash provided by (used in) investing activities (1,455,547) 407,419 46,074,236 Net cash provided by (used in) financing activities (13,203,558) (13,127,699) 123,671 Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Uses of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include estimates and judgments applied in allocation of revenue with various performance obligations, allowance for accounts receivable and contract assets, impairment on long-term investments, valuation allowance for deferred tax assets, valuation of share-based compensation and allowance for loans receivable and other receivable. Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurement or assumptions that market participants would use when pricing the asset or liability. The Company follows the provisions of Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, receivables, prepayments and other assets, loan principal and interest receivable, approximate their fair value based on the short-term maturity of these instruments. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended March 31, 2022, 2021 and 2020. The Company’s long-term investments consist of equity securities and available-for-sale investments. For long-term investments without readily determinable fair value, the Company is not able to estimate fair value, hence, the Company uses the cost minus impairment method as alternative. Discontinued Operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in the consolidated statements of operations and comprehensive (loss) income, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Discontinued Operations - continued Due to the disposal of the P2P business, which represented a strategic shift and had a major effect on the Company’s results of operations, revenues, costs and expenses related to the P2P Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. Revenue recognition In February 2022, the Company started its business in the US market for the sale of medical devices. In May 2020, the Company launched its social e-commerce platform and Revenues generated are accounted under Accounting Standards Update (ASU) 2014-09, “Revenue from contracts with Customers” (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Online marketplace services ● Commission revenue The commission services revenue primarily consists of commission fees charged to the online E-commerce marketplace for recommending users to purchase on their marketplaces, where the Company generally is acting as an agent and its performance obligation is to provide recommendation services for purchasing specified goods or services by those third-party sellers, is not responsible for fulfilling the promise to provide the specified goods or services, and does not have the ability to control the related shipping services when utilized by the third-party sellers. Upon successful sales, the Company will charge the online E-commerce companies a negotiated amount or a fixed rate commission fee based on the sales amount. Commission services revenues are recognized on a net basis at the point of receipt of products, net of a return allowance and incentives to consumers or channels. In order to promote its online marketplace and attract more registered consumers, the Company at its own discretion offers incentives to consumers. Consumers are not customers of the Company, therefore incentives offered to consumers are not considered payments to customers. Such incentives offered to consumers were as a reward for purchasing by themselves or their sharing through our platform. Incentives provided to consumers are specific to any merchant and are recognized as a reduction of commission service revenue. For the years ended March 31, 2022, 2021 and 2020, the total amount of incentives was US$96,332, US$82,054 and nil, respectively. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue recognition - continued ● Recommendation service The Company started to provide recommendation services by referring certain borrowers to Funding Partners in July 2019. Such services primarily include referral through the Company’s marketplace that directs users to third party financial institutions. The Company received a referral fee from the third-party financial institutions and such revenue was recognized at the point that the recommendation services are performed and the related funds are drawdown by borrowers. For the years ended March 31, 2022, 2021 and 2020, the Company earned nil, nil and US$3,754,738 recommendation service revenue from its partnership with a financial services provider in China, or the Funding Partner, respectively. The Company has ceased to provide such recommendation services since November 2019. ● Interest income Started in August 2017, the Company lent funds to borrowers up to their approved credit through its consolidated VIE, and since May 2019, the Company has ceased to issue new loans through its microlending business. Interest income on loans receivable is recognized monthly based on the contractual interest rates of the loan. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. Interest income from continuing operations was US$215,393, US$1,690,448 and US$3,043,096 for the years ended March 31, 2022, 2021 and 2020, respectively, which was included as net revenues in the accompanying consolidated statements of operations and comprehensive (loss) income. ● Sales of medical devices Started in February 2022, throught its subsidiary Akso Online MediTech, the Company engaged in the sale of Covid-19 Antigen Rapid Tests in US market. Akso Online MediTech purchases medical devices in quantity and distributes products primarily to medical products dealers. The deliveries may take one day or longer depending on the customers’ location. Revenue from sales of merchandise to non-retail customers is recognized when the merchandise is transferred to customers. There was no sales return since the start the business. ● Disaggregation of revenue All of the Company’s revenue for the years ended March 31, 2021 and 2020 were generated from the PRC and for the year ended March 31, 2022, the Company’s revenue were generated from US and PRC. The following table illustrates the disaggregation of revenue: Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Revenue Commission service 96,332 82,054 — Recommendation service — — 3,754,738 Revenue from medical devices 6,000,000 — — Interest income 215,393 1,690,448 3,043,096 Other — — 161,538 Total revenues 6,311,725 1,772,502 6,959,372 Tax and surcharges (633) (17,567) (44,898) Net Revenues 6,311,092 1,754,935 6,914,474 Cash and cash equivalents Cash and cash equivalents represent cash on hand, unrestricted demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounts receivable and allowance for uncollectible accounts Accounts receivable are mainly receivables from online E-commerce marketplaces and recommendation services, which are stated at the historical carrying amount net of allowance for uncollectible accounts. The Company establishes an allowance for uncollectible accounts receivable based on estimates, historical experience and other factors surrounding the credit risk of specific customers. Uncollectible accounts receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company has determined that is not probable for the balance to be collected. Beginning on April 1, 2020, the Company evaluates its accounts receivable for expected credit losses on a regular basis. The Company maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that it believes will be collected. The Company uses the length of time a balance has been outstanding, the payment history, creditworthiness and financial conditions of the customers and industry trend as credit quality indicators to monitor the Company ’ ’ Inventories Inventories are comprised of finished goods, which are iHealth COVID-19 Antigen Rapid Tests, and are stated at the lower of cost or net realizable value using first in first out (FIFO) method. Management reviews inventories for obsolescence and cost in excess of net realizable value periodically when appropriate and records a reserve against the inventory when the carrying value exceeds net realizable value. As of March 31, 2022, the Company determined that no allowance was necessary. Loans receivable Since August 2017, the Company engaged in the micro-lending business and target borrowers in the PRC. Loans receivable represent loans originated by the Company, which is due from the qualified individual borrowers. For the years ended March 31, 2022, 2021 and 2020, the total amount of new loans the Company issued was nil, nil and US$74,003. As of March 31, 2021, the loans have terms ranging from 12 months to 36 months with annual interest charges from 6% to 8%. Loans receivable are recorded at the historical carrying amount, net of allowance for uncollectible loans receivable. The Company evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Company’s past experiences, the borrowers’ financial position, their financial performance, and their ability to continue to generate sufficient cash flows. An allowance is established for the loans unable to collect. As of March 31, 2022, the Company believed that the outstanding loans were uncollectible and provided a full allowance on the loans receivable. As of March 31, 2022 and 2021, the allowance for uncollectible loans receivable balance was US$46,115,732 and US$39,172,141, respectively. Non-accrual policies Loan principal and interest receivable are placed on non-accrual status when payments are 90 days past due contractually. When loan principal and interest receivable is placed on non-accrual status, interest accrual ceases. If the loan is non-accrual, the cost recovery method is used and cash collected is applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent cash is received. Loan principal and interest receivable may be returned to accrual status when all of the borrower’s delinquent balances of loan principal and interest have been settled and the borrower continues to perform in accordance with the loan terms. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Loans receivable - continued Charge-off policies Loan principal and interest receivable are generally charged-off when a settlement is reached for an amount that is less than the outstanding balance or when the Company has determined the balance is uncollectable. In accordance with ASC 310-10-35-41, the Company determines that any loans with outstanding balance that are 180 days past due are deemed uncollectable and thereof charged-off. For the year ended March 31, 2019, in order to align the Company’s charge-off policy with ASC 310-10-35-41 and industry practice, the Company revised its charge-off policy such that all loans that are 180 days past due are therefore deemed uncollectible and charged-off. Property and equipment, net Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives: Useful life Office equipment 3-5 years The Company eliminates the cost and related accumulated depreciation and amortization of assets sold or otherwise retired from the accounts and includes any gains or losses from disposal of property, equipment, and software in other income. The Company charges maintenance, repairs, and minor renewals directly to expense as incurred; major additions and betterments to equipment are capitalized. Impairment of long-lived assets The carrying value of the long-lived assets are reviewed for impairment, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to future undiscounted net cash flows expected to be generated by the assets. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. No impairment loss was recognized for the years ended March 31, 2022, 2021 and 2020. Investment in equity securities The Company’s investment in equity securities was mainly comprised of equity investments in privately held companies. Upon adoption of ASU 2016-01 on April 1, 2018, the Company elected to measure these investments at cost minus impairment, if any, adjusted up or down for observable price changes (i.e., prices in orderly transactions for the identical or similar investment of the same issuer). Any adjustment to the carrying amount is recorded in operations. The Company also makes a qualitative assessment at the end of each reporting period and if the assessment indicates that the fair value of the investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss recorded in the consolidated statements of operations and comprehensive (loss). Advertising and promotion expenses The Company recognizes its advertising and promotion expenses as sales and marketing expense. Advertising expenses represent expenses for placing advertisements on television, radio and in newspapers, as well as on internet websites and search engines. Advertising and promotion cost are expensed as incurred. For the years ended March 31, 2022, 2021 and 2020, the advertising and promotion expense was US$5,886, US$176,193 and US$736,522, respectively. Note 3-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Research and development costs The Company recognizes its research and development costs as service and development expense. Research and development costs are mainly labor costs of the research and development department. For the years ended March 31, 2022, 2021 and 2020, research and development expense was US$421,186, US$441,405 and US$117,942, respectively, and included in service and development expense. Service and development expense Service and development expense consists primarily of research and development costs, including costs related to salaries, benefits and service costs directly relating to originating social e-commerce business. These expenses relate to credit assessment, maintenance and upgrading of our proprietary technology and risk management systems, live customer support, and third-party payment agent fees for fund management, payment, settlement and clearing services. Lease Upon the adoption of FASB ASC 842 on April 1, 2019 using the modified retrospective method, the Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities, in the Company’s consolidated balance sheets. The Company does not have any finance leases as of the adoption date or March 31, 2022. ROU represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. For operating lease with a term of one year or less, the Company has elected to not recognize a lease liability or lease right of use asset on its consolidated balance sheets. Instead, it recognizes the lease payment as exp |
DISCONTINUED OPERATION
DISCONTINUED OPERATION | 12 Months Ended |
Mar. 31, 2022 | |
DISCONTINUED OPERATION | |
DISCONTINUED OPERATION | NOTE 4 – DISCONTINUED OPERATION On December 16, 2020, Beijing Hexin Yongheng Technology Development Co., Ltd. (“Hexin Yongheng”), a wholly-owned subsidiary of the Company, Kuaishangche Automobile Leasing Co., Ltd. (“Kuaishangche”), a company not directly associated with the Company, Hexin E-Commerce Company Limited (“Hexin E-Commerce”), and individual shareholders of Hexin E-Commerce entered into an assignment and assumption agreement (the “Agreement”). Pursuant to the Agreement, Hexin Yongheng agreed to assign and transfer to Kuaishangche the control over Hexin E-Commerce, in exchange for cash consideration of RMB 5 million (US$726,781) (the “Disposition”). Upon the closing of the Disposition, Kuaishangche will become the primary beneficiary of and have control of Hexin E-Commerce, and as a result, assume all assets and liabilities of Hexin E-Commerce and subsidiaries owned or controlled by Hexin E-Commerce, excluding any rights, titles, interests or claims that Hexin E-Commerce may have in Wusu Hexin Yongheng Commercial and Trading Co., Ltd. (“Wusu Company”), shall remain as a consolidated variable interest entity of the Company. As a result of the Disposition, the Company will cease to conduct its P2P business and focus on developing and investing resources into its social e-commerce platform, Xaobai Maimai. The discontinued operation represents a strategic shift that has a major effect on the Company’s operations and financial results, which trigger discontinued operations accounting in accordance with FASB ASC 205-20-45. The assets and liabilities related to the discontinued operations are classified as assets/liabilities of discontinued operations as of March 31, 2021, while results of operations related to the discontinued operations for the years ended March 31, 2021 and 2020, were reported as income (loss) from discontinued operations. The results of discontinued operations for years ended March 31, 2021 and 2020 are as follows: For the years ended March 31, 2021 2020 USD USD Net Revenues 545,718 4,520,585 Operating costs and development 8,082,165 24,942,630 (Loss) income from discontinued operations (7,536,447) (20,422,045) Other income (expense), net 1,097,265 365,927 (Loss) income before tax (6,439,182) (20,056,118) Income tax provision 367 3,778,776 Net (loss) income from discontinued operations, net of tax (6,439,549) (23,834,894) Gain on sale of discontinued operations, net of taxes 3,164,802 — Net (loss) from disposition of subsidiaries (3,274,747) (23,834,894) |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | Note 5 – ACCOUNTS RECEIVABLE, NET As of As of March 31, 2022 March 31, 2021 USD USD Accounts receivable 85,386 96,226 Allowance for uncollectible accounts receivable (70,139) (67,864) Accounts receivable, net 15,247 28,362 |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2022 | |
LOANS RECEIVABLE, NET | |
LOANS RECEIVABLE, NET | Note 6 – LOANS RECEIVABLE, NET As of As of March 31, 2022 March 31, 2021 USD USD Loans receivable 46,115,732 44,660,186 Allowance for uncollectible loans receivable (46,115,732) (39,172,141) Loans receivable, net - current — 5,488,045 Movement of allowance for uncollectible loans receivable during the years ended March 31, 2022 and 2021 is as follows: Year ended Year ended March 31, 2022 March 31, 2021 USD USD Balance at beginning of the year 39,172,141 15,017,029 Provision for allowance of uncollectible loans receivable 5,561,457 22,159,416 Foreign currency translation adjustments 1,382,134 1,995,696 Balance at end of the year 46,115,732 39,172,141 |
PREPAYMENTS AND OTHER ASSETS
PREPAYMENTS AND OTHER ASSETS | 12 Months Ended |
Mar. 31, 2022 | |
PREPAYMENTS AND OTHER ASSETS | |
PREPAYMENTS AND OTHER ASSETS | Note 7 – PREPAYMENTS AND OTHER ASSETS As of As of March 31, 2022 March 31, 2021 USD USD Rental and other deposits 558,614 252,394 Prepayments to suppliers and others 323,088 309,164 Interest receivable 2,055 11,746 Staff advances 4,203 31,220 Total prepayments and other assets 887,960 604,524 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Mar. 31, 2022 | |
INVENTORIES | |
INVENTORIES | Note 8 – INVENTORIES Inventory consisted of finished goods, which were iHealth COVID-19 Antigen Rapid Tests, valued at $ 7,795,822 and nil as of March 31, 2022 and 2021, respectively. The Company constantly monitors its potential obsolete products. Any loss on damaged items is immaterial and will be recognized immediately. As a result, no reserves were made for inventory as of March 31, 2022. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Mar. 31, 2022 | |
OTHER RECEIVABLES | |
OTHER RECEIVABLES | Note 9 - OTHER RECEIVABLES As of As of March 31, 2022 March 31, 2021 USD USD Other receivables 24,621,834 10,368,959 Allowance for uncollectible other receivables (4,621,834) — Other receivables, net 20,000,000 10,368,959 Other receivables – current 20,000,000 8,872,838 Other receivables – non-current — 1,496,121 To further diversify our business, in July 2019, the Company entered into a business development agreement with a third-party vender named Beijing Jiuzheng Network Technology Co., Ltd for the purpose of expanding its loan recommendation service in the consumer financing market. Due to changes in market dynamics, both parties executed an amendment in November 2019 with the intention of establishing an e-commence online trading marketplace. In connection with the original agreement and subsequent amendment (the “Transactions”), a deposit of approximately US$30.9 million was paid to the counter party. The Transactions were reported to the Board afterwards in late November 2019. After reviewing the Transactions, the Board concluded that it is in the best interest for the Company to terminate the business cooperation with the vender in order to avoid significant expenditures and reduce uncertainties associated with the related business development. Meantime, an independent law firm was engaged by the Company’s Audit Committee to assess the independence of the counter party in the Transactions. The law firm’s assessment report concluded the counter party in the Transactions is not related to the Company. The Company therefore decided to terminate the agreement at the end of November 2019. Due to business disruption caused by COVID-19 pandemic, the Company, through a series of negotiations, finally entered a termination agreement with the vender on April 8, 2020. Pursuant to the settlement agreement, the Company terminated the Transactions with the vender. For the deposit made by the Company, the vender agreed to refund approximately US$15.5 million by May 2020 and the remaining balance shall be refunded on monthly basis of approximately US$693,905 in next two years with an annual interest charge of 2%. The repayment by the counterparty is guaranteed by a licensed guarantee company in the PRC with registered capital of approximately US$142.9 million. During the year ended March 31, 2022, the third-party vendor has refunded approximately a total of $6.1 million and the remaining balance of approximately US$4.5 million was estimated uncollectible due to the impact of COVID-19 pandemic on the third-party vendor. Therefore, the Company made a full allowance for the remaining balance of US$4.6 million for the year ended March 31, 2022. By the end of June 2022, the Company has initiated legal proceedings against Jiuzheng Company for its defaults. In January 2022, the Company borrowed a total of US$35.2 million from a related-party, SOS Information Technology New York, Inc. (Refer to Note15). To expand business channels between China and US market on medical products and medical equipment, at the ended of March 2022, the Company entered into Business Development Agreements (“Agreements”) with four third-party individuals, who were experienced in China’s medical industry, to seek for potential opportunities in healthcare industry. Pursuant to the Agreements, the term for the agreements was one year and the Company would provide US$5.0 million to each of the four individuals with a 5% annual interest rate. In early July 2022, both the four individuals and the Company agreed to terminated the Agreements in advance. On July 8, 2022, the four individuals returned a total of US$20.0 million principal and US$0.3 million interest income. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | Note 10 – PROPERTY AND EQUIPMENT, NET As of As of March 31, 2022 March 31, 2021 USD USD Cost: Office equipment 141,313 131,967 Total 141,313 131,967 Less: Accumulated depreciation (85,880) (65,080) Property and equipment, net 55,433 66,887 Depreciation and amortization expense on property and equipment for the years ended March 31, 2022, 2021 and 2020 were US$18,390, US$15,161, and US$120,520, respectively. |
LONG-TERM INVESTMENTS, NET
LONG-TERM INVESTMENTS, NET | 12 Months Ended |
Mar. 31, 2022 | |
LONG-TERM INVESTMENTS, NET | |
LONG-TERM INVESTMENTS, NET | Note 11 – LONG-TERM INVESTMENTS, NET As of As of March 31, 2022 March 31, 2021 USD USD Investments in equity security without readily determinable fair value Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”) (a) 29,189,836 29,189,836 Musketeer Group Inc. (“Musketeer”) (b) 1,600,000 1,600,000 30,789,836 30,789,836 Impairment on investments (30,789,836) (30,789,836) Long term investments, net — — (a) On January 8, 2019, the Company signed an agreement to acquire a 5.88% equity stake in Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”), a wholly owned subsidiary of Phoenix Financial Group Ltd (“Phoenix Finance”), which is unrelated to the Company, and operator of one of China’s leading peer-to-peer lending platforms, for a total consideration of approximately US $29 million (RMB 200 million). The acquisition was completed as of March 31, 2019 and the Company had an acquisition price payable to Phoenix Finance in the amount of US $14,289,371 as of March 31, 2019, which was fully paid in April 2019. Pursuant to the investment agreement, such investment is redeemable at the option of the Company if certain future performance condition cannot be met. The Company accounted the investment as investment in an equity security without readily determinable fair value. In light of the significant change in the regulatory environment in the PRC related to the peer-to-peer lending industry and the impact of COVID-19 on Phoenix Intelligent Credit, the Company recognized a full impairment of this investment as of March 31, 2022 and 2021. (b) On August 9, 2018, the Company acquired a 19.99% equity stake in Musketeer Group Inc. (“Musketeer”), an Indonesian online lending platform that offers consumption installment loans, for approximately US $1.6 million. The investment was accounted for using the cost method because the Company does not have any significant influence over Musketeer. Since Musketeer is a start-up company in its early stage, there was no readily determinable fair value. On August 14, 2019, Musketeer completed its registration for a peer-to-peer (P2P) lending platform with the Indonesian Financial Services Authority (OJK). In light of the significant changes of market conditions and the impact of COVID-19 in Indonesia, the Company recognized full impairment of this investment as of March 31, 2022 and 2021. For the years ended March 31, 2022, 2021 and 2020, the Company recognized impairment losses for the long-term investments of nil, US$1,600,000 and $29,189,836, respectively. |
RIGHT OF USE LEASE ASSETS
RIGHT OF USE LEASE ASSETS | 12 Months Ended |
Mar. 31, 2022 | |
RIGHT OF USE LEASE ASSETS | |
RIGHT OF USE LEASE ASSETS | NOTE 12 – RIGHT OF USE LEASE ASSETS The Company had several operating leases for offices in the PRC. The related lease agreements do not contain any material residual value guarantees or material restrictive covenants. Effective April 1, 2019, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package hindsight ROU asset NOTE 12 – RIGHT OF USE LEASE ASSETS (Continued) The Company’s operating leases primarily include leases for office space. The current portion of operating lease liabilities and the non-current portion of operating lease liabilities are presented on the consolidated balance sheets. On October 15, 2021, the Company entered into a lease agreement with a third party for was one year’s lease term. Pursuant to the lease agreement, the Company paid a total of US$934,871 rental fees in advance for the following year. For operating lease with a term of one year or less, the Company has elected to not recognize a lease liability or lease right of use asset on its consolidated balance sheets. Instead, it recognizes the lease payment as expense on a straight-line basis over the lease term. Total lease expense amounted to US$467,435, US$398,709, and US$1,976,738 for the years ended March 31, 2022, 2021 and 2020, respectively. Total cash paid for operating leases amounted to US$934,871, US$398,709, and US$2,100,320 for the years ended March 31, 2022, 2021 and 2020, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | Note 13 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of As of March 31, 2022 March 31, 2021 USD USD Accrued payroll and benefits 114,839 293,324 Professional fees and other accrued expenses 826,966 849,183 Interest payable 127,244 — 1,069,049 1,142,507 |
NOTE PAYABLE
NOTE PAYABLE | 12 Months Ended |
Mar. 31, 2022 | |
NOTE PAYABLE | |
NOTE PAYABLE | Note 14 – NOTE PAYABLE On March 29, 2019, the Company issued a senior unsecured note (the “Note”) to Majik Fund SPC, an exempted company managed by a subsidiary of Yunfeng Financial Group Limited (“Yunfeng Financial Group”), which is unrelated to the Company. The principal is US$20 million with a three-year term due in March 2022. The Note bears a fixed interest rate of 12.0% per annum, with interest payable semi-annually in arrears on June 30th and December 31st of each year, beginning in March 2019. According to the covenants in the Note, as long as any Note remains outstanding, the Company shall not consolidate with, merge or amalgamate into or dispose of or transfer all or a substantial part of its assets to any corporation or convey or transfer its properties and assets substantially to any person. On December 14 2020, for the purpose of disposal of our P2P business, the Company and Majik Fund SPC entered into an Amendment and Supplemental Agreement to the Note, pursuant to which the Company shall make a payment to the Noteholder of US$10,000,000 of principal together with all accrued but unpaid interest on the full outstanding amount, within 5 working days from the effective date of the Amendment and Supplemental Agreement. The Company made a payment of US$5,000,000 of the principal on December 14, 2020 and a payment of US$5,000,000 of principal and US$513,333 of interest on December 15, 2020. On October 25 2021, the Company and Majik Fund SPC entered into a second Amendment and Supplemental Agreement to the Note, pursuant to which the Company shall make a payment to the Noteholder of US$10,000,000 of principal together with all accrued but unpaid interest on the full outstanding amount on the effective date of the Amendment and Supplemental Agreement. The Company made a payment of US$10,000,000 of principal and US$93,333 of interest on October 25, 2021. As of March 31, 2022 and 2021, the note payable balance amounted to nil and US$10.0 million, respectively. For the years ended March 31, 2022, 2021 and 2020, interest expense amounted to US$0.7 million, US$2.1 million, and US$2.4 million, respectively. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Mar. 31, 2022 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | Note 15 – RELATED PARTY BALANCES AND TRANSACTIONS As part of our corporate restructurings prior to our disposal of Hexin E-Commerce in December 2020, Mr. Ming Jia and Mr. Shiwei Wu transferred their equity interests of Wusu Company to Hexin E-Commerce, and therefore, Hexin E-Commerce became the sole shareholder of Wusu Company on November 20, 2020. On December 16, 2020, Hexin Yongheng, Kuaishangche, Hexin E-Commerce, Xiaobo An, Xiaoning An, and Xiaobin Zhai entered into an assignment and assumption agreement. Pursuant to this agreement, Hexin Yongheng has agreed to assign and transfer to Kuaishangche the control over Hexin E-Commerce, in exchange for cash consideration of RMB5.0 million (US$726,781). Upon the closing of the disposition, Kuaishangche became the primary beneficiary of and obtained control of Hexin E-Commerce, and as a result, assume all assets and liabilities of Hexin E-Commerce and subsidiaries owned or controlled by Hexin E-Commerce, excluding any rights, titles, interests or claims that Hexin E-Commerce had in Wusu Company, which remained a consolidated variable interest entity of the Hexin Yongheng by way of the December 1, 2020 contractual arrangements. We closed the disposition of Hexin E-Commerce on December 30, 2020. As a result of the Company’s P2P disposal and lease terminations, on October 15, 2020, the Company entered into a lease agreement with Mr. Xiaobo An, who provided office space to the Company at no charge. The lease term is 1 year. As of March 31, 2021, the balance of amount due to related parties was US$2,968,782, which represented working capital the Company borrowed from the P2P business before its disposal. After disposal, the Company has repaid the remaining balance of US$ 2,968,782 in July 2021. On July 13, 2021, Hexin Holding Limited, the shareholder of the Company owned by Mr. Xiaobo An, founder, Chairman and Chief Executive Officer of the Company, entered into a Share Purchase Agreement (“SPA”) with Webao Limited, a company incorporated in Hong Kong, China, to sell a total of 31,980,800 ordinary shares. After the transaction, the number of ordinary shares owned by Hexin Holding Limited decreased to nil accordingly. On August 26, 2021, the Company entered into a loan agreement with Webao Limited, the majority shareholder of the Company, for a loan of US$2.0 million with a 0% annual interest rate. The loan term is 1 year. As of March 31, 2022, the balance of amount due to related parties was US$2.0 million. On January 24, 2022, the Company entered into a loan agreement with SOS Information Technology New York, Inc. (“SOS NY”), one of our senior management was the related party of SOS Limited, for a loan of US$35,200,000 with a 2% annual interest rate. The loan term was 1 year. For the fiscal year ended March 31, 2022, interest expense pertaining to the loan amounted to US$127,244. On July 27, 2022, the Company and SOS NY entered into an amendment and supplemental agreement to the loan agreement, pursuant to which the Company shall make a repayment in advance to SOS NY of US$27,513,849 of the principal amount together with all accrued but unpaid interest of US$358,751. The Company made a payment of US$27,872,600 for the above principal and interest on July 28, 2022. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Mar. 31, 2022 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | Note 16 – The Company has made the required employee benefit contributions in accordance with relevant rules and regulations in the PRC. Such contributions includes funding for retirement insurance, unemployment insurance, medical insurance, work injury insurance and maternity insurance. The Company recorded the contributions in salary and employee charges at specified percentages of the salaries, bonuses and certain allowances of its employees, up to a maximum amount specified by the local government. The contributions made by the Company were US$423,413, US$435,689, and US$ 399,104 for the years ended March 31, 2022, 2021 and 2020, respectively. |
TAXES PAYABLE
TAXES PAYABLE | 12 Months Ended |
Mar. 31, 2022 | |
TAXES PAYABLE | |
TAXES PAYABLE | Note 17 – TAXES PAYABLE As of As of March 31, 2022 March 31, 2021 USD USD Income taxes payable 113,658 419,709 VAT payable 11,495 (117,336) Other taxes payable — 309 Total taxes payable (receivable) 125,153 302,682 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | Note 18 – Cayman Islands Akso Health was incorporated in the Cayman Islands and is not subject to income taxes or capital gain under current laws of Cayman Islands. Hong Kong HK Hexindai and We Health are investment holding companies registered in Hong Kong and exempted from income tax on its foreign-derived income. United States The Company’s subsidiaries established in the U.S. are incorporated in the U.S. and is subject to both federal and state income taxes for its business operation in the U.S. The applicable tax rate is 21% for federal, 6.5% for We Health established in New York, 0% for Akso Remote Medical and Akso Online MediTech established in Wyoming and 8% for Akso First Health established in Massachusetts. Akso Online MediTech had $441,981 taxable income as of March 31, 2022, and other U.S. entities had no taxable income as of March 31, 2022. PRC The Company’s subsidiaries and VIEs established in the PRC are subject to the PRC statutory income tax rate of 25%, according to the PRC Enterprise Income Tax (“EIT”) law. The Company’s VIE Hexin Digital has been granted as the “high technology enterprise” status in 2020 and is qualified to a preferred income tax rate of 15% starting on October 1, 2020 for three years. The Company’s basic and diluted loss per shares would have been lower by $0.01 per share for the years ended March 31, 2022 and 2021, without the preferential tax rate reduction. i) The components of income tax expenses are as follows: Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Current 131,433 482,976 446,769 Deferred — — 43,186 Total 131,433 482,976 489,955 All income taxes are related to income derived in the U.S. and PRC during the years ended March 31, 2022, 2021 and 2020. PRC – continued ii) The following table summarizes net deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities: As of As of March 31, 2022 March 31, 2021 USD USD Provision for loan loss – PRC entities 2,395,294 5,539,854 Net operating loss carry forwards – PRC entities 642,772 1,004,821 Net operating loss carry forwards – U.S. entities 225,639 — Total deferred tax assets 3,263,705 6,544,675 Less: Valuation allowance (3,263,705) (6,544,675) Total net deferred tax assets — — According to Chinese tax regulations, net operating losses can be carried forward to offset taxable income for the next five years. For the U.S. entities, net operating losses can be carried forward indefinitely. The Company’s cumulative PRC net operating loss (“NOL”) of approximately US$2,571,000 as of March 31, 2022 was mainly from NOL of Hexin Digital, Wusu Company and Hexin Jiuding, and the NOL starts to expire in 2025. The Company considers available evidence to determine whether some portion or all of the deferred tax assets will more likely than not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. A valuation allowance has been established for net deferred tax assets based on a more-likely-than-not threshold. The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. Based upon the level of historical result of operation, PRC and U.S subsidiaries were operated at cumulative loss as of March 31, 2022 and 2021. Therefore, the Company believes it is less likely than not its subsidiaries in PRC and U.S will be able to fully utilize its deferred tax assets related to provision for loan loss or net operating loss carry forwards. As a result, The Company has provided 100% allowance on deferred tax assets on provision for loan loss and net operating loss carry forward from its subsidiaries for the year ended March 31, 2022 and 2021. The change in valuation allowance was US$(3,263,705) and US$2,284,349 for the years ended March 31, 2022 and 2021, respectively. The net loss before taxes for the PRC entities was US$12,704,083, US$31,069,266 and US$46,873,529 for the years ended March 31, 2022, 2021 and 2020, respectively. The net loss before taxes for the U.S. entities was US$16,718,300, nil and nil for the years ended March 31, 2022, 2021 and 2020, respectively. The following table reconciles the PRC statutory rates to the Company’s effective tax rate for the years ended March 31, 2022, 2021 and 2020. Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 PRC Income tax statutory rate (25.0) % (25.0) % (25.0) % Effect of tax holiday and preferential tax rate 4.0 % 1.0 % — Tax rate difference outside PRC 0.6 % — — Non-deductible foreign losses 6.5 % 4.8 % 18.5 % Change in valuation allowance 19.5 % 21.1 % 9.1 % Non-deductible expenses and others (4.8) % (0.3) % (1.5) % Effective tax rate (0.8) % 1.6 % 1.1 % According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding US$15,263 (RMB 100,000) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. Aggregate undistributed earnings of the Company’s PRC subsidiaries and VIEs that are available for distribution was approximately negative US$30.8 million and US$36 million as of March 31, 2022 and 2021, respectively. PRC – continued |
LOSS PER SHARE ("LPS")
LOSS PER SHARE ("LPS") | 12 Months Ended |
Mar. 31, 2022 | |
LOSS PER SHARE ("LPS") | |
LOSS PER SHARE ("LPS") | Note 19 – Basic LPS is the amount of net earnings available to each share of ordinary shares outstanding during the reporting period. Diluted EPS is the amount of net earnings available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. The following table details the outstanding shares for basic and diluted net earnings per share: Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Numerator: Net loss from continuing operation attributable to Akso Health Group (16,851,064) (31,552,242) (47,363,485) Net loss from discontinued operation attributable to Akso Health Group — (3,274,747) (23,834,894) Net loss attributable to Akso Health Group (16,851,064) (34,826,989) (71,198,379) Denominator: Weighted average number of ordinary shares outstanding-basic 59,612,152 48,837,977 48,757,199 Weighted average number of dilutive potential ordinary shares from share options — — — Weighted average number of ordinary shares outstanding-diluted 59,612,152 48,837,977 48,757,199 Basic (loss) per common share (0.28) (0.71) (1.46) Diluted (loss) per common share (0.28) (0.71) (1.46) |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Mar. 31, 2022 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | Note 20 – Akso Health was established under the laws of the Cayman Islands on April 25, 2016. The authorized number of ordinary shares is 500,000,000 shares with par value of US$0.0001 each. As of March 31, 2022 and 2021, 68,598,050 and 48,850,574 ordinary shares, respectively, were outstanding. On August 24, 2020, the Company amended the ratio of ADS representing its ordinary shares from one (1) ADS representing one (1) ordinary share to one (1) ADS representing three (3) ordinary shares. The change in the ADS ratio has the same effect as a one-for-three reverse ADS split. There was no change to our ordinary shares in connection with the change of the ADS ratio. Private Placement On August 9, 2021, the Company entered into a certain securities purchase agreement (the “SPA”) with certain “non-U.S. Persons” pursuant to which the Company agreed to sell an aggregate of 6,340,000 units at a price of US$1.58 per unit, each unit consisting of three ordinary shares of the Company, par value $0.0001 per share (“Share”) and a warrant to purchase three Shares with an initial exercise price of US$3.00, for an aggregate purchase price of approximately US$10.02 million (the “Offering”). On September 17, 2021, the transaction contemplated by the SPA was consummated when all the closing conditions of the SPA were satisfied. The net proceeds of approximately US$10.0 million from such Offering will be used by the Company for working capital and general corporate purposes. The Warrants are exercisable immediately upon the date of issuance at an initial exercise price of $3.00, or for cash (the “Warrant Shares”). The Warrants may also be exercised on a cashless basis if at any time after the six-month anniversary of the issuance date, there is no effective registration statement registering, or no current prospectus available for, the resale of the Warrant Shares. The Warrants shall expire five years from its date of issuance. The Warrants are subject to customary anti-dilution provisions reflecting stock dividends and splits or other similar transactions. Warrants The Company accounts for the warrants issued in connection with the private placement in accordance with the guidance contained in ASC 815-40. The Company’s management has examined the warrants and determined that these warrants qualify for equity treatment in the Company’s financial statements. As of March 31, 2022, the Company had 6,340,000 warrants outstanding to purchase 19,020,000 ordinary shares with weighted average exercise price of US$3.0 per warrant and remaining contractual lives of 4.5 year. Following is a summary of the status of warrants outstanding and exercisable as of March 31, 2022: Weighted Average Aggregate Warrants Exercise Price Intrinsic Value Warrants outstanding, as of March 31, 2021 — — — Issued 6,340,000 $ 3.0 — Exercised — — — Expired — — — Warrants outstanding, as of March 31, 2022 6,340,000 $ 3.0 — Warrants exercisable, as of March 31, 2022 6,340,000 $ 3.0 — |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2022 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | Note 21 – SHARE-BASED COMPENSATION 2016 Equity Incentive Plan On April 1, 2016 (the “Award date”), to reward the Company’s employees and further align their interests with the Company in the future, the Company granted stock options to purchase 6,312,000 ordinary shares under the 2016 Equity Incentive Plan, adjusted for the nominal share issuance, to the Company’s officers, and key employees with the exercise price equal to US$1.28. The Company determined the grant date to be April 1, 2016 in accordance with ASC 718-10-20 and 718-10-25-5. It is because the Company and employee have reached a mutual understanding of the key terms and conditions of these stock option awards on April 1, 2016 including a specific exercise price and vesting and exercise conditions. All necessary approvals for the stock option awards were obtained and communicated to employees on April 1, 2016. Subsequently, after the board of directors declared a cash dividend of $0.40 per ordinary share (or US$0.40 per ADS) on July 23, 2018, the board of directors further approved an adjustment to the exercise price of outstanding options from US$1.28 to US$0.88. The Options vested and became exercisable in three equal installments with the first vesting commencement date being the later of the first anniversary of the grant date or the closing date of a Qualified IPO. Subject to the continued employment or service through each applicable vesting date of the option holder, shares subject to the Option shall become vested as to the remaining two-thirds The options contain an explicit service condition (i.e., the options vest at each of three years following a successful initial public offering) and a performance condition (i.e., the options can only be exercised upon successful completion of an initial public offering by employees that are still employed by the Company upon the completion of the initial public offering). Under ASC 718-10-55-76, if the vesting (or exercisability) of an award is based on the satisfaction of both a service and performance condition, the entity must initially determine which outcomes are probable and recognize the compensation cost over the longer of the explicit or implicit service period. Because an initial public offering generally is not considered to be probable until the initial public offering is effective, no compensation cost will be recognized until the initial public offering occurs. The Company has elected to recognize share-based compensation expense using a straight-line method for the entire employee equity awards granted with graded vesting based on service conditions provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant-date value of the equity awards that are vested at that date. Upon successful completion of a Qualified IPO, the Company will recognize share-based compensation for the portion of the requisite service that has been rendered as of that date for the portion for the period from April 1, 2016 to the date of the Completion of Qualified IPO on November 3, 2017. The Company is responsible for determining the fair value of options granted to employees and uses the Binomial option-pricing model assuming as of the valuation date, the fair market value per share was US$1.41, exercise price per share was US$1.28, the risk-free interest rate was 1.81%, and the dividend yield was 0%. For the options granted under 2016 Equity Incentive Plan, the expiry data was March 31, 2020, the life of option was 4 years and volatility was 47.4%. Note 21 - SHARE-BASED COMPENSATION – (Continued) 2016 Equity Incentive Plan – continued The following table sets forth the stock option shares activities under the Company’s 2016 Equity Incentive Plan for the years ended March 31, 2022, 2021 and 2020. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life in Grant Date Intrinsic options Price Years Fair Value Value USD USD USD Outstanding, March 31, 2019 4,986,078 1.18 1 3,403,827 7,954,959 Number of Exercise (320,020) 1.03 1 (185,612) — Number of Expired, forfeited or cancelled (345,104) 3.73 — (237,392) — Outstanding, March 31, 2020 4,320,954 1.01 0.4 2,980,823 — Number of Exercise — Number of Expired, forfeited or cancelled (3,487,064) 0.96 — (3,332,614) — Outstanding, March 31, 2021 833,890 1.23 — (351,791) — Number of Expired, forfeited or cancelled (242,492) 1.75 — (253,337) — Outstanding, March 31, 2022 591,398 0.88 — (605,128) — Vested and exercisable, March 31, 2020 4,298,787 0.97 — 2,646,781 — Vested and exercisable, March 31, 2021 833,890 1.23 — (351,791) — Vested and exercisable, March 31, 2022 591,398 0.88 — (605,128) — Restricted Stock Units During the year ended March 31, 2019, the Company granted 616,700 restricted stock units (“RSU”). One RSU represents one ordinary share of the Company. RSU are share awards that, upon vesting, will deliver to the holder shares of the Company’s ordinary shares. Some of the RSU were to be vested over three years, one third ( 1/3 2/3 During the year ended March 31, 2022, the Company granted 242,492 restricted stock units (“RSU”). One RSU represents three ordinary shares of the Company, and the RSU vested immediately. The Company satisfies RSU vesting through the issuance of new shares. During the years ended March 31, 2022, 2021 and 2020, 242,492, 32,234 and 38,900 RSU has been vested. Note 21 - SHARE-BASED COMPENSATION – (Continued) 2016 Equity Incentive Plan – (Continued) The following table summarized the Company’s RSUs activities under all incentive plans (in US$, except shares): Number of Restricted Shares Weighted-average grant date fair value USD Outstanding at March 31, 2018 — Granted 616,700 9.26 Vested (538,900) 9.26 Forfeited — — Outstanding at March 31, 2019 77,800 9.26 Granted Vested (38,900) 9.26 Forfeited (3,333) 9.26 Outstanding at March 31, 2020 35,567 9.26 Granted — — Vested (32,234) 9.26 Forfeited (3,333) — Outstanding at March 31, 2021 — — Granted 727,476 1.62 Vested (727,476) 1.62 Forfeited — — Outstanding at March 31, 2022 — — The fair value of the stock options and RSUs on the grant date was approximately US$4.7 million. The Company accrues the compensation cost based on the number of awards that are expected to vest. The estimated forfeiture rate for the awards in fiscal years ended March 31, 2022, 2021 and 2020 is 10.5%, 13.04 and 13.04%. The forfeiture rate is estimated based on the historical employee turnover rates and expectations about the future. Stock based compensation For the years ended March 31, 2022, 2021 and 2020, the Company recognized US$391,625, US$55,468 and US$347,466 share-based compensation expense, respectively. As of March 31, 2022, there was no unrecognized compensation cost. |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Mar. 31, 2022 | |
TREASURY STOCK | |
TREASURY STOCK | Note 22 – TREASURY STOCK On December 10, 2018, the Company announced that its board of directors authorized a share repurchase program under which the Company may repurchase up to US$25 million of its ordinary shares in the form of American depositary shares (“ADS”) over the next 12 months. The Company repurchased an aggregate of 1,165,883 ADSs from the open market for a total consideration of US$3,988,370, which was recorded as treasury stock. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Mar. 31, 2022 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | Note 23 – RESTRICTED NET ASSETS Restricted Net Assets As a result of the PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. The restricted net assets consist of paid in capital, capital reserve and statutory reserves of the Company’s PRC entities. As of March 31, 2022 and 2021, the restricted net assets that are not available for distribution amounted to approximately US$89.5 million and US$86.9 million, respectively, which was included in the additional paid-in capital on the consolidated balance sheets. Statutory Reserve Pursuant to the Company Law of the PRC, each of the PRC entities is required to appropriate 10% of its net income to the statutory reserve on an annual basis until the aggregated amount of the reserve reaches 50% of its registered capital. The statutory reserve is not distributable. Subject to the approval of the shareholders, the statutory reserve may be used to offset accumulated losses or converted into capital of the company. As of March 31, 2022 and 2021, the statutory reserves amounted to US$485,211 and US$469,473, which was included as retained earnings in the accompanying consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | Note 24 – Contingencies In the ordinary course of business, the Company may be subject to legal proceedings regarding contractual and employment relationships and a variety of other matters. The Company records contingent liabilities resulting from such claims, when a loss is assessed to be probable and the amount of the loss is reasonably estimable. As of March 31, 2022 and 2021, no such contingent liabilities are assessed as probable. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Mar. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | Note 25 – SEGMENTS ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. The Company’s chief operating decision maker is the Chief Executive Officer, who reviews the financial information of the separate operating segments when making decisions about allocating resources and assessing the performance of the group. Effective from March 2022, the Company has determined that it has two operating segments for purposes of allocating resources and evaluating financial performance, which consists of: (1) online marketplace and (2) health devices. Prior period numbers are broken down for comparative purpose. The following tables present summary information by segment for the years ended March 31, 2022, 2021 and 2020: Online Health For the Year Ended March 31, 2022 marketplace devices Total Net Revenues $ 311,092 $ 6,000,000 $ 6,311,092 Cost of goods sold — 5,394,866 5,394,866 Operating expenses 16,816,016 37,964 16,853,980 (Loss) income from operations (16,504,925) 567,171 (15,937,754) Depreciation and amortization 18,390 — 18,390 Total capital expenditures $ — $ — $ — Online Health For the Year Ended March 31, 2021 marketplace devices Total Revenues $ 1,754,935 $ — $ 1,754,935 Operating expenses 32,659,283 — 32,659,283 Loss from operations (30,904,348) — (30,904,348) Depreciation and amortization 15,161 — 15,161 Total capital expenditures $ — $ — $ — Online Health For the Year Ended March 31, 2020 marketplace devices Total Revenues $ 6,914,474 $ — $ 6,914,474 Operating expenses 55,020,164 — 55,020,164 Loss from operations (48,105,690) — (48,105,690) Depreciation and amortization 120,520 — 120,520 Total capital expenditures $ 200,360 $ — $ 200,360 Total assets as of: March 31, March 31, 2022 2021 Online marketplace $ 22,942,806 $ 31,685,496 Health devices 27,736,978 — Total Assets $ 50,679,784 $ 31,685,496 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | Note 26 – SUBSEQUENT EVENTS In early July 2022, both the four individuals and the Company agreed to terminated the Agreements in advance. On July 8, 2022, the four individuals returned a total of US$20.0 million and US$0.3 million interest. On July 27, 2022, the Company and SOS Information Technology New York, Inc. (“SOS NY”) entered into an amendment and supplemental agreement to the loan agreement, pursuant to which the Company shall make a repayment in advance to SOS NY of US$27,515,778 of the principal amount together with all accrued but unpaid interest of US$356,822. The Company made a payment of US$27,872,600 for the above principal and interest on July 28, 2022. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Mar. 31, 2022 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | AKSO HEALTH GROUP INC. AND SUBSIDIARIES Schedule I -CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Company’s subsidiaries and VIEs established in the PRC are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in China is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in China. The Company’s subsidiaries and its VIEs are also required to set aside at least 10% of its after-tax profit based on the PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. In addition, the Company’s operations and revenues are conducted and generated in China, all of the Company’s revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to the PRC foreign exchange control regulations that restrict the Company’s ability to convert RMB into US Dollars. Regulation S-X requires the condensed financial information of a registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances, or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company’s PRC subsidiaries and VIEs exceed 25% of the consolidated net assets of the Company. The condensed financial information of the parent company has been prepared in accordance with SEC Regulation S-X Rule 5-04 and Rule 12-04, using the same accounting policies as set out in the Company’s consolidated financial statements, except that the Company uses the equity method to account for investments in its subsidiaries, VIEs and VIEs’ subsidiaries. The footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements are not the general-purpose financial statements of the reporting entity and should be read in conjunction with the notes to the consolidated financial statements of the Company. CONDENSED BALANCE SHEETS As of March 31 As of March 31 2022 2021 USD USD ASSETS: Cash 4,491 1,483,484 Prepayment and other assets 5,795 160,450 Investments in subsidiaries, VIEs and VIEs’ subsidiaries 14,333,994 30,793,763 TOTAL ASSETS 14,344,280 32,437,697 LIABILITIES: Accrued expenses and other current liabilities 60,675 161,882 Note payable — 10,000,000 Due to related party 2,000,000 5,004,290 TOTAL LIABILITIES 2,060,675 15,166,172 SHAREHOLDERS’ EQUITY: Ordinary shares ($0.0001 par value, 500,000,000 shares authorized, 69,763,933 and 50,016,457 shares issued, 68,598,050 and 48,850,574 shares outstanding as of March 31, 2022 and 2021, respectively.) 6,976 5,002 Additional paid-in capital 71,021,898 49,330,571 Treasury stock (3,988,370) (3,988,370) Deficit (53,107,676) (26,760,239) Accumulated other comprehensive loss (1,649,223) (1,315,439) TOTAL SHAREHOLDERS’ EQUITY 12,283,605 17,271,525 TOTAL LIABILITIES AND SHEREHOLDERS’ EQUITY 14,344,280 32,437,697 CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Years Ended March 31, 2022 2021 2020 USD USD USD Equity in (loss) earnings of subsidiaries, VIEs and VIEs’ subsidiaries (13,721,974) (28,512,556) (35,994,910) General administrative expense and others (3,129,090) (4,714,433) (6,013,633) Impairment on long-term investments — (1,600,000) (29,189,836) NET (LOSS) (16,851,064) (34,826,989) (71,198,379) OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 1,454,319 3,942,157 (5,288,742) COMPREHENSIVE (LOSS) (15,395,414) (30,884,832) (76,487,121) CONDENSED STATEMENTS OF CASH FLOWS For The Years Ended March 31, 2022 2021 2020 USD USD USD CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) (16,851,064) (34,826,989) (71,198,379) Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in loss of subsidiaries, VIEs and VIEs’ subsidiaries 13,721,974 28,512,556 35,994,910 Impairment on long-term investments — 1,600,000 29,189,836 Share-based compensation 391,625 55,468 347,466 Changes in operating assets and liabilities: Prepayments and other assets 154,654 (154,653) 344,195 Accrued expenses and other current liabilities 101,207 (40,618) 184,258 Interest payments on unsecured senior notes and short-term bank loan (676,894) (2,114,388) — NET CASH (USED IN) OPERATING ACTIVITIES (3,158,498) (6,968,624) (5,137,714) CASH FLOWS FROM INVESTING ACTIVITIES: Increase in investment in subsidiaries, VIEs and VIE’s subsidiaries — — (1,000,000) Purchase of long-term investments — — (14,594,918) NET CASH (USED IN) IN INVESTING ACTIVITIES — — (15,594,918) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from private placement offering, net of offering costs 10,017,200 — — Exercise of share options — 3 281,616 Principal payments on unsecured senior notes (10,000,000) (10,000,000) — Loan to subsidiaries, VIEs and VIE’s subsidiaries (337,695) — — Repayment from subsidiaries, VIEs and VIE’s subsidiaries — 11,738,667 — Repurchase of ordinary shares — — (2,667,902) Proceeds from related party 2,000,000 5,004,290 — NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES 1,679,505 6,742,960 (2,386,286) NET (DECREASE) IN CASH (1,478,993) (225,664) (23,118,918) CASH-beginning of year 1,483,484 1,709,148 24,828,066 CASH-end of year 4,491 1,483,484 1,709,148 SUPPLEMENTAL CASH FLOW DISCLOSURES: Cash paid for income tax — — — Cash paid for interest — 2,114,388 2,413,014 Notes to condensed financial statements 1. Akso Health, formerly known as Xiaobai Maimai Inc., was founded on April 25, 2016 in the Cayman Islands. The condensed full year results of the Company have been prepared assuming the Reorganization (see Note 1 in the consolidated financial statements) was in effect from November 1, 2016. 2. The condensed financial statements of Akso Health have been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in subsidiaries, VIEs and subsidiaries of VIEs. Such investment in subsidiaries and VIEs are presented on the balance sheets as interests in subsidiaries and VIEs and the income (loss) of the subsidiaries and VIEs is presented as equity in (loss) earnings of subsidiaries and VIEs on the statement of operations. 3. As of March 31, 2022 and 2021, there were no material contingencies, significant provisions of long-term obligations of the Company, except for those which have been separately disclosed in the consolidated financial statements. 4. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The notes to consolidated financial statements disclosed certain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the accompanying Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and have been consistently applied. Certain prior year balances in the consolidated statements of operations and comprehensive (loss) and cash flows have been reclassified to the current year’s presentation. |
Basis of consolidation | Basis of consolidation The accompanying consolidated financial statements include the financial statements of the Company, its subsidiaries, its consolidated VIEs and VIE’s subsidiaries for which the Company is the primary beneficiary. All inter-company transactions and balances have been eliminated upon consolidation. Due to the disposal of the P2P business, which represented a strategic shift and had a major effect on the Company’s results of operations, revenues, costs and expenses related to the P2P Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. Assets and liabilities of the P2P business were reclassified separately from other assets and liabilities of the Company on the consolidated balance sheets. Refer to Note 1 and Note 4. Consolidated VIEs VIE arrangements In order to comply with the PRC laws and regulations which prohibit or restrict foreign investments into companies involved in restricted businesses, the Company operates its marketplace and restricted businesses in the PRC through certain PRC domestic companies, whose equity interests are held by certain management members of the Company or onshore nominees of the Company (“Nominee Shareholders”). The Company obtained control over these PRC domestic companies by entering into a series of contractual arrangements with these PRC domestic companies and their respective Nominee Shareholders. These contractual agreements cannot be unilaterally terminated by the Nominee Shareholders or the PRC domestic companies. As a result, the Company maintains the ability to control these PRC domestic companies and is entitled to substantially all of the economic benefits from these PRC domestic companies. Management concluded that these PRC domestic companies are VIEs of the Company, of which the Company is the ultimate primary beneficiary. As such, the Company consolidated financial results of these PRC domestic companies and their subsidiaries in the Group’s consolidated financial statements. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and the WFOE are further described below. Exclusive Business Cooperation Agreements The Exclusive Business Cooperation Agreements enable the WOFE to receive substantially all of the assets and business of the VIEs in the PRC. Under these Agreements, the WOFE has the exclusive right to provide the VIEs with comprehensive technical support, consulting services and other services during the term of these Agreements, including but not limited to software licensing; development, maintenance and update of software, network systems, hardware and database; technical support and training for employees; consultancy on technology and market information; business management consultation; marketing and promotion services, etc. The WOFE has the right to determine the fees associated with the services it provides based on the technical difficulty and complexity of the services, the actual labor costs it incurs for providing the services and some other factors during the relevant period. This Agreements remain effective unless otherwise terminated in writing by WOFE. Equity Interest Pledge Agreements Pursuant to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge their equity interest in the VIEs to the WOFE to secure the performance of the VIEs’ obligations under the Exclusive Business Cooperation Agreements and any such agreements to be entered into in the future. Shareholders of the VIEs agreed not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in the VIEs without the prior written consent of the WOFE. The Pledges became effective on such date when the pledge of the Equity Interest contemplated herein were registered with the relevant administration for industry and commerce (the “AIC”) and remain effective until all contract obligations have been fully performed and all secured indebtedness has been fully paid. Exclusive Option Agreements Pursuant to the Exclusive Option Agreements, each of the Shareholders of the VIE irrevocably grant the WOFE an irrevocable and exclusive right to purchase, or designate one or more persons (including individuals, corporations, partnerships, partners, enterprises, trusts or non-corporate organizations) to purchase the equity interests in the VIEs then held by such Shareholder of the VIEs once or at multiple times at any time in part or in whole at the WOFE’s sole and absolute discretion to the extent permitted by Chinese laws at the price of RMB 1 or at the price of the minimum amount of consideration permitted by the applicable PRC law at the time when such purchase occurs. These three Agreements remain effective until all equity interests held by the shareholders of the VIEs in the VIEs have been transferred or assigned to the WOFE and/or its designees. Loan Agreements Pursuant to the three Loan Agreements, the WOFE agreed to lend each of the Shareholders of VIEs a loan only to subscribe to the registered capital of the VIEs. The repayment of the loan shall be made by permitting the WOFE to execute its exclusive right to purchase shares from the shareholders of the VIEs under the Exclusive Option Agreement as the repayment is equivalent to the consideration of the purchased shares. The term of these loans is 10 years, which may be extended upon mutual written consent of all parties. Power of Attorney Each Shareholder of the VIEs, executed a Power of Attorney agreement with the WOFE and the VIEs, whereby Shareholders of the VIEs irrevocably appoint and constitute the WOFE as their attorney-in-fact to exercise on the shareholders’ behalf any and all rights that Shareholders of the VIEs have in respect of their equity interests in the VIEs. These three Power of Attorney documents remain irrevocable and continuously effective and valid as long as the original shareholders of the VIEs remain as the Shareholders of the VIEs. Risks in relation to the VIE structure The Company believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with the PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of the PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIEs; ● limit the Company’s business expansion in the PRC by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIEs to restructure the relevant ownership structure or operations; and/or ● restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Company’s business and operations in the PRC. The Company’s ability to conduct its Online Marketplace business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and their respective shareholders and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and VIEs. The interests of the shareholders of VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company cannot assure that when conflicts of interest arise, shareholders of the VIEs will act in the best interests of the Company or that conflicts of interests will be resolved in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest the shareholders of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Company, on the other hand. The Company believes the shareholders of VIEs will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Company with a mechanism to remove the current shareholders of the VIEs should they act to the detriment of the Company. The Company relies on certain current shareholders of the VIEs to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Company. If the Company cannot resolve any conflicts of interest or disputes between the Company and the shareholders of the VIEs, the Company would have to rely on legal proceedings, which could result in disruption of its business, and there is substantial uncertainty as to the outcome of any such legal proceedings. The following financial statement amounts and balances of the consolidated VIEs were included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances. As of As of March 31, 2022 March 31, 2021 USD USD Current Assets: Cash and cash equivalents 2,394,869 10,246,074 Accounts receivable and contract assets, net 15,247 28,362 Loans receivable, net - current — 5,488,045 Prepayments and other assets 55,864 381,297 Other receivable - current — 8,872,838 Amounts due from related parties 27,139,795 13,936,237 Total Current Assets 29,605,775 38,952,853 Property, equipment and software, net 53,888 64,268 Other receivable - non-current — 1,496,121 Total Assets 29,659,663 40,513,242 Current Liabilities Accrued expenses and other current liabilities 77,296 246,210 Taxes payable 11,909 363,484 Total Current Liabilities 89,205 609,694 Total Liabilities 89,205 609,694 Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Net revenues 311,725 1,759,941 5,944,541 Net loss (11,527,588) (24,258,182) (12,532,634) Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Net cash provided by (used in) operating activities 5,613,401 21,401,699 (65,068,631) Net cash provided by (used in) investing activities (1,455,547) 407,419 46,074,236 Net cash provided by (used in) financing activities (13,203,558) (13,127,699) 123,671 |
Uses of estimates | Uses of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include estimates and judgments applied in allocation of revenue with various performance obligations, allowance for accounts receivable and contract assets, impairment on long-term investments, valuation allowance for deferred tax assets, valuation of share-based compensation and allowance for loans receivable and other receivable. |
Fair value of financial instruments | Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurement or assumptions that market participants would use when pricing the asset or liability. The Company follows the provisions of Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 — Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash, receivables, prepayments and other assets, loan principal and interest receivable, approximate their fair value based on the short-term maturity of these instruments. The Company did not transfer any assets or liabilities in or out of level 3 during the years ended March 31, 2022, 2021 and 2020. The Company’s long-term investments consist of equity securities and available-for-sale investments. For long-term investments without readily determinable fair value, the Company is not able to estimate fair value, hence, the Company uses the cost minus impairment method as alternative. |
Discontinued Operations | Discontinued Operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in the consolidated statements of operations and comprehensive (loss) income, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. Due to the disposal of the P2P business, which represented a strategic shift and had a major effect on the Company’s results of operations, revenues, costs and expenses related to the P2P Business have been reclassified in the accompanying consolidated financial statements as discontinued operations for all the periods presented. |
Revenue recognition | Revenue recognition In February 2022, the Company started its business in the US market for the sale of medical devices. In May 2020, the Company launched its social e-commerce platform and Revenues generated are accounted under Accounting Standards Update (ASU) 2014-09, “Revenue from contracts with Customers” (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation Online marketplace services ● Commission revenue The commission services revenue primarily consists of commission fees charged to the online E-commerce marketplace for recommending users to purchase on their marketplaces, where the Company generally is acting as an agent and its performance obligation is to provide recommendation services for purchasing specified goods or services by those third-party sellers, is not responsible for fulfilling the promise to provide the specified goods or services, and does not have the ability to control the related shipping services when utilized by the third-party sellers. Upon successful sales, the Company will charge the online E-commerce companies a negotiated amount or a fixed rate commission fee based on the sales amount. Commission services revenues are recognized on a net basis at the point of receipt of products, net of a return allowance and incentives to consumers or channels. In order to promote its online marketplace and attract more registered consumers, the Company at its own discretion offers incentives to consumers. Consumers are not customers of the Company, therefore incentives offered to consumers are not considered payments to customers. Such incentives offered to consumers were as a reward for purchasing by themselves or their sharing through our platform. Incentives provided to consumers are specific to any merchant and are recognized as a reduction of commission service revenue. For the years ended March 31, 2022, 2021 and 2020, the total amount of incentives was US$96,332, US$82,054 and nil, respectively. ● Recommendation service The Company started to provide recommendation services by referring certain borrowers to Funding Partners in July 2019. Such services primarily include referral through the Company’s marketplace that directs users to third party financial institutions. The Company received a referral fee from the third-party financial institutions and such revenue was recognized at the point that the recommendation services are performed and the related funds are drawdown by borrowers. For the years ended March 31, 2022, 2021 and 2020, the Company earned nil, nil and US$3,754,738 recommendation service revenue from its partnership with a financial services provider in China, or the Funding Partner, respectively. The Company has ceased to provide such recommendation services since November 2019. ● Interest income Started in August 2017, the Company lent funds to borrowers up to their approved credit through its consolidated VIE, and since May 2019, the Company has ceased to issue new loans through its microlending business. Interest income on loans receivable is recognized monthly based on the contractual interest rates of the loan. Accrual of interest is generally discontinued when reasonable doubt exists as to the full, timely collection of interest or principal. When a loan is discontinued from interest accrual, the Company stops accruing interest and reverses all accrued but unpaid interest as of such date. Interest income from continuing operations was US$215,393, US$1,690,448 and US$3,043,096 for the years ended March 31, 2022, 2021 and 2020, respectively, which was included as net revenues in the accompanying consolidated statements of operations and comprehensive (loss) income. ● Sales of medical devices Started in February 2022, throught its subsidiary Akso Online MediTech, the Company engaged in the sale of Covid-19 Antigen Rapid Tests in US market. Akso Online MediTech purchases medical devices in quantity and distributes products primarily to medical products dealers. The deliveries may take one day or longer depending on the customers’ location. Revenue from sales of merchandise to non-retail customers is recognized when the merchandise is transferred to customers. There was no sales return since the start the business. ● Disaggregation of revenue All of the Company’s revenue for the years ended March 31, 2021 and 2020 were generated from the PRC and for the year ended March 31, 2022, the Company’s revenue were generated from US and PRC. The following table illustrates the disaggregation of revenue: Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Revenue Commission service 96,332 82,054 — Recommendation service — — 3,754,738 Revenue from medical devices 6,000,000 — — Interest income 215,393 1,690,448 3,043,096 Other — — 161,538 Total revenues 6,311,725 1,772,502 6,959,372 Tax and surcharges (633) (17,567) (44,898) Net Revenues 6,311,092 1,754,935 6,914,474 |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent cash on hand, unrestricted demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. |
Accounts receivable and allowance for uncollectible accounts | Accounts receivable and allowance for uncollectible accounts Accounts receivable are mainly receivables from online E-commerce marketplaces and recommendation services, which are stated at the historical carrying amount net of allowance for uncollectible accounts. The Company establishes an allowance for uncollectible accounts receivable based on estimates, historical experience and other factors surrounding the credit risk of specific customers. Uncollectible accounts receivables are written off when a settlement is reached for an amount that is less than the outstanding historical balance or when the Company has determined that is not probable for the balance to be collected. Beginning on April 1, 2020, the Company evaluates its accounts receivable for expected credit losses on a regular basis. The Company maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that it believes will be collected. The Company uses the length of time a balance has been outstanding, the payment history, creditworthiness and financial conditions of the customers and industry trend as credit quality indicators to monitor the Company ’ ’ |
Inventories | Inventories Inventories are comprised of finished goods, which are iHealth COVID-19 Antigen Rapid Tests, and are stated at the lower of cost or net realizable value using first in first out (FIFO) method. Management reviews inventories for obsolescence and cost in excess of net realizable value periodically when appropriate and records a reserve against the inventory when the carrying value exceeds net realizable value. As of March 31, 2022, the Company determined that no allowance was necessary. |
Loans receivable | Loans receivable Since August 2017, the Company engaged in the micro-lending business and target borrowers in the PRC. Loans receivable represent loans originated by the Company, which is due from the qualified individual borrowers. For the years ended March 31, 2022, 2021 and 2020, the total amount of new loans the Company issued was nil, nil and US$74,003. As of March 31, 2021, the loans have terms ranging from 12 months to 36 months with annual interest charges from 6% to 8%. Loans receivable are recorded at the historical carrying amount, net of allowance for uncollectible loans receivable. The Company evaluates the credit risk associated with the loans, and estimates the cash flow expected to be collected over the lives of loans on an individual basis based on the Company’s past experiences, the borrowers’ financial position, their financial performance, and their ability to continue to generate sufficient cash flows. An allowance is established for the loans unable to collect. As of March 31, 2022, the Company believed that the outstanding loans were uncollectible and provided a full allowance on the loans receivable. As of March 31, 2022 and 2021, the allowance for uncollectible loans receivable balance was US$46,115,732 and US$39,172,141, respectively. Non-accrual policies Loan principal and interest receivable are placed on non-accrual status when payments are 90 days past due contractually. When loan principal and interest receivable is placed on non-accrual status, interest accrual ceases. If the loan is non-accrual, the cost recovery method is used and cash collected is applied to first reduce the carrying value of the loan. Otherwise, interest income may be recognized to the extent cash is received. Loan principal and interest receivable may be returned to accrual status when all of the borrower’s delinquent balances of loan principal and interest have been settled and the borrower continues to perform in accordance with the loan terms. Charge-off policies Loan principal and interest receivable are generally charged-off when a settlement is reached for an amount that is less than the outstanding balance or when the Company has determined the balance is uncollectable. In accordance with ASC 310-10-35-41, the Company determines that any loans with outstanding balance that are 180 days past due are deemed uncollectable and thereof charged-off. For the year ended March 31, 2019, in order to align the Company’s charge-off policy with ASC 310-10-35-41 and industry practice, the Company revised its charge-off policy such that all loans that are 180 days past due are therefore deemed uncollectible and charged-off. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives: Useful life Office equipment 3-5 years The Company eliminates the cost and related accumulated depreciation and amortization of assets sold or otherwise retired from the accounts and includes any gains or losses from disposal of property, equipment, and software in other income. The Company charges maintenance, repairs, and minor renewals directly to expense as incurred; major additions and betterments to equipment are capitalized. |
Impairment of long-lived assets | Impairment of long-lived assets The carrying value of the long-lived assets are reviewed for impairment, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to future undiscounted net cash flows expected to be generated by the assets. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets. No impairment loss was recognized for the years ended March 31, 2022, 2021 and 2020. |
Investment in equity securities | Investment in equity securities The Company’s investment in equity securities was mainly comprised of equity investments in privately held companies. Upon adoption of ASU 2016-01 on April 1, 2018, the Company elected to measure these investments at cost minus impairment, if any, adjusted up or down for observable price changes (i.e., prices in orderly transactions for the identical or similar investment of the same issuer). Any adjustment to the carrying amount is recorded in operations. The Company also makes a qualitative assessment at the end of each reporting period and if the assessment indicates that the fair value of the investment is less than the carrying value, the investment in equity securities will be written down to its fair value, with the difference between the fair value of the investment and its carrying amount as an impairment loss recorded in the consolidated statements of operations and comprehensive (loss). |
Advertising and promotion expenses | Advertising and promotion expenses The Company recognizes its advertising and promotion expenses as sales and marketing expense. Advertising expenses represent expenses for placing advertisements on television, radio and in newspapers, as well as on internet websites and search engines. Advertising and promotion cost are expensed as incurred. For the years ended March 31, 2022, 2021 and 2020, the advertising and promotion expense was US$5,886, US$176,193 and US$736,522, respectively. |
Research and development costs | Research and development costs The Company recognizes its research and development costs as service and development expense. Research and development costs are mainly labor costs of the research and development department. For the years ended March 31, 2022, 2021 and 2020, research and development expense was US$421,186, US$441,405 and US$117,942, respectively, and included in service and development expense. |
Service and development expense | Service and development expense Service and development expense consists primarily of research and development costs, including costs related to salaries, benefits and service costs directly relating to originating social e-commerce business. These expenses relate to credit assessment, maintenance and upgrading of our proprietary technology and risk management systems, live customer support, and third-party payment agent fees for fund management, payment, settlement and clearing services. |
Lease | Lease Upon the adoption of FASB ASC 842 on April 1, 2019 using the modified retrospective method, the Company determines if an arrangement is a lease or contains a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities, in the Company’s consolidated balance sheets. The Company does not have any finance leases as of the adoption date or March 31, 2022. ROU represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. For operating lease with a term of one year or less, the Company has elected to not recognize a lease liability or lease right of use asset on its consolidated balance sheets. Instead, it recognizes the lease payment as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its consolidated statements of operations and comprehensive (loss). The Company has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as single lease component. |
Warrants | Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) ASC 480 “Distinguishing Liabilities from Equity” (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether they meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent annually period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations (Note 20). |
Share-based compensation | Share-based compensation Under the Amended and Restated 2016 Equity Incentive Plan, the Company grants share options to the Company’s selected employees, and directors. Awards granted to employees with service conditions attached are measured at the fair value on the grant date and are recognized as an expense using straight-line method, net of estimated forfeitures, over the requisite service period, which is generally the vesting period. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. Awards granted to employees with performance conditions attached are measured at fair value on the grant date and are recognized as compensation expense in the period and thereafter when the performance goal becomes probable to achieve. Awards granted to employees with market conditions attached are measured at fair value on the grant date and are recognized as compensation expense over the estimated requisite service period, regardless of whether the market condition has been satisfied if the requisite service period is fulfilled. Binomial option-pricing models are adopted to measure the value of awards at each grant date or measurement date. The determination of fair value is affected by assumptions relating to a number of complex and subjective variables, including but not limited to the expected share price volatility, actual and projected employee share option exercise behavior, risk-free interest rates and expected dividends. The use of the option-pricing model requires extensive actual employee exercise behavior data for the relative probability estimation purpose, and a number of complex assumptions. |
Treasury stock | Treasury stock Treasury stock represents ordinary shares repurchased by the Company that are no longer outstanding and are held by the Company. The repurchase of ordinary shares is accounted for under the cost method whereby the entire cost of the acquired shares are recorded as treasury stock. The cost of treasury stock is transferred to “additional paid-in capital” when it is re-issued for the purpose of share options exercised and share awards. |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The Company accounts for income tax under the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Under this method, deferred income taxes will be recognized if significant temporary differences between tax and financial statements occur. A valuation allowance is established against net deferred tax assets when it is more likely that some portion or all of the net deferred tax asset will not be realized. For the years ended March 31, 2022, 2021 and 2020, the Company provided a full valuation allowance on the net deferred tax assets. The Company may be subject to challenges from taxing authorities regarding the amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions. Management determines whether the benefits of its tax positions are more-likely-than-not of being sustained upon audit based on the technical merits of the tax position. The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income taxes are classified as income tax expense in the period incurred. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of March 31, 2022 and 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company does not believe that its unrecognized tax benefits will change over the next twelve months. |
Noncontrolling interests | Noncontrolling interests Noncontrolling interest consists of 49% of the equity interest of We Healthy held by other investors. Excess of contribution received from noncontrolling shareholders over carrying value of the entity is recorded in additional paid in capital. The noncontrolling interests are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Noncontrolling interests in the results of the Company are presented on the face of the consolidated statement of operations as an allocation of the total income or loss for the year between non-controlling interest holders and the shareholders of the Company. Noncontrolling interest consist of the following: December 31, December 31, 2022 2021 USD USD We Healthy 1,976 — |
Earnings (loss) per share | Earnings (loss) per share The Company computes earnings per share (“EPS”) in accordance with FASB ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires public companies with capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) attributed to ordinary shareholders divided by the weighted average number of ordinary shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. |
Foreign currency translation | Foreign currency translation The functional currency of the Company is United States Dollar. The Company’s subsidiaries with operations in mainland China, the Hong Kong Special Administrative Region of the PRC (“Hong Kong” or “Hong Kong S.A.R.”), the United States generally use their respective local currencies as their functional currencies. The Company’s financial statements have been translated into the reporting currency, the United States Dollar (“USD”). Assets and liabilities of the Company are translated at the exchange rate at each reporting period end date. Equity is translated at historical rates. Income and expense accounts are translated at the average exchange rate during the reporting period. The resulting translation adjustments are reported under accumulated other comprehensive income (loss). Transactions denominated in currencies other than functional currency are translated into the functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded in “other income (expense)” in the consolidated statements of operations and comprehensive income. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that any RMB amounts could have been, or could be, converted, realized or settled into USD at the rates used in translation. Spot exchange rates and average exchange rates were used in the translation of the consolidated financial statements. Fiscal year 2022 Fiscal year 2021 US Exchange Rate Year-end RMB 6.3393 6.5518 Year average RMB 6.4180 6.7834 |
Segment reporting | Segment reporting ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. The Company’s chief operating decision maker, the Chief Executive Officer, reviews the consolidated financial results when making decisions about allocating resources and accessing performance of the Company based on two operating businesses and hence, the Company has two reportable segments. |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Company’s cash and cash equivalents denominated in RMB amounted to US$13,843,088 and US$15,128,719 at March 31, 2022 and 2021, respectively. Concentration of credit risk Financial instruments that potentially expose the Company to significant concentration of credit risk primarily included in the financial lines of cash and cash equivalents, accounts receivable, loan receivables, other receivables and prepayments and other assets. As of March 31, 2022, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located worldwide, including mainland China and Unite State. According to the China Bank Deposit Insurance Ordinance, the deposits at each bank is covered by insurance with an upper limit of RMB 500,000 (approximately US$79,000) at each bank. As of March 31, 2022, the total amount not covered by issuance in the PRC was US$13,494,326. The Hong Kong Deposit Protection Board pays compensation up to a limit of HKD 500,000 (approximately US$64,000) if the bank with which an individual/a company hold its eligible deposit fails. As of March 31, 2022, no cash balance maintained at financial institutions in Hong Kong was subject to credit risk. In the US, the insurance coverage of each bank is $250,000. As of March 31, 2022, the amount not covered by issuance in the US was US$7,759,312. If the financial institutions could become insolvent, the Company could lose some or all of the value of its investments. To limit exposure to credit risk relating to deposits, the Company primarily place cash and cash equivalent deposits with large financial institutions which management believes are of high credit quality and management also continually monitors the financial institutions’ credit worthiness. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Company performs on its customers and its ongoing monitoring process of outstanding balances. Customer concentration risk For the year ended March 31, 2022, one customers accounted for 95.1% the Company’s total revenues. For the years ended March 31, 2021 and 2020, no customer accounted for more than 10% of the Company’s total revenues. There was no customer of the Company that accounted for greater than 10% of the Company’s carrying amount of accounts receivable as of March 31, 2022 and 2021. Vendor concentration risk For the year ended March 31, 2022, one vendor accounted for 100% of the Company’s purchase of medical devices business started in February 2022. For the year ended on March 31, 2021, no customer accounted for more than 10% of the Company’s total purchases. There was no vendor of the Company that accounted for greater than 10% of the Company’s carrying amount of accounts payable as of March 31, 2022 and 2021. COVID-19 impacts The global outbreak of the COVID-19 pandemic is having a significant negative impact on the global economy, which has adversely affected the Company’s business and financial results. Starting in late January 2020, the COVID-19 pandemic triggered a series of lock-downs, social distancing requirements and travel restrictions that have significantly and negatively affected, and may continue to negatively affect, our various businesses in China and US. It is not possible to determine the ultimate impact of the COVID-19 pandemic on the Company’s business operations and financial results, which is highly dependent on numerous factors, including the duration and spread of the pandemic and any resurgence of the COVID-19 pandemic in China or elsewhere, actions taken by governments, the response of businesses and individuals to the pandemic, the impact of the pandemic on business and economic conditions in China and globally. The COVID-19 pandemic may continue to adversely affect the Company’s business and results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company adopted the new standard beginning April 1, 2020 using the modified retrospective transition approach. Based on the nature of the Company’s financial instruments within the scope of this standard, which are primarily accounts receivable, loans receivable and other receivables, the adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), which clarifies that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments—Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not yet been issued. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU are effective for fiscal years beginning after December 15, 2020, including interim periods therein. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. The adoption of the new standard did not have a material effect on the Company’s consolidated financial statements. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated balance sheets, consolidated statements of operations and comprehensive loss (income) and consolidated statements of cash flows. |
BUSINESS DESCRIPTION (Tables)
BUSINESS DESCRIPTION (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
BUSINESS DESCRIPTION | |
Schedule of the Company's principal subsidiaries and consolidated VIEs | As of March 31, 2022, the Company’s principal subsidiaries and consolidated VIEs are as follows: Date of incorporation / Place of Percentage of acquisition incorporation legal ownership Principal activities Wholly owned subsidiaries Hexindai Hong Kong Limited (“HK Hexindai”) May 17, 2016 Hong Kong 100% Investment holding Beijing Hexin Yongheng Technology Development Co., Ltd. ( Wholly Owned Foreign Enterprise,“WOFE”) August 8, 2016 PRC 100% Provision of consultancy and information technology (“IT”) support Tianjin Haohongyuan Technology Co., Ltd. (“Tianjin Haohongyuan”) May 25, 2018 PRC 100% Provision of consultancy and IT support HX Asia Investment Limited June 25, 2018 BVI 100% Investment holding HX China Investment Limited January 16, 2019 BVI 100% Investment holding Hexin Investment Private Limited July 15, 2020 Singapore 100% Investment holding We Health Limited (“We Health”) July 8, 2021 New York 100% Investment holding We Healthy Limited (“We Healthy”) December 15, 2021 Hong Kong 51% Investment holding Akso Remote Medical Consultation Center Inc. (“Akso Remote Medical”) January 3, 2022 Wyoming 100% Provision of health treatment services Akso Online MediTech Co., Ltd.(“Akso Online MediTech”) January 4, 2022 Wyoming 100% Sales of medical devices Akso First Health Treatment Center Inc. (“Akso First Health”) January 4, 2022 Massachusetts 100% Provision of health treatment services Qindao Akso Health Management Co., Limited January 26, 2022 PRC 51% Provision of health treatment services VIEs Wusu Hexin Yongheng Trading Co., Ltd (“Wusu Company) August 28, 2017 PRC Consolidated VIE Trading branded products and product promotion Hexin Digital Technology Co., Ltd.(“Hexin Digital “) August 1, 2019 PRC Consolidated VIE Provision of consultancy and IT support Beijing Hexin Jiuding Technology Co., Ltd. (“ Hexin Jiuding ”) January 1, 2021 PRC Consolidated VIE Provision of consultancy and IT support |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of financial statement amounts and balances of the consolidated VIEs | As of As of March 31, 2022 March 31, 2021 USD USD Current Assets: Cash and cash equivalents 2,394,869 10,246,074 Accounts receivable and contract assets, net 15,247 28,362 Loans receivable, net - current — 5,488,045 Prepayments and other assets 55,864 381,297 Other receivable - current — 8,872,838 Amounts due from related parties 27,139,795 13,936,237 Total Current Assets 29,605,775 38,952,853 Property, equipment and software, net 53,888 64,268 Other receivable - non-current — 1,496,121 Total Assets 29,659,663 40,513,242 Current Liabilities Accrued expenses and other current liabilities 77,296 246,210 Taxes payable 11,909 363,484 Total Current Liabilities 89,205 609,694 Total Liabilities 89,205 609,694 Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Net revenues 311,725 1,759,941 5,944,541 Net loss (11,527,588) (24,258,182) (12,532,634) Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Net cash provided by (used in) operating activities 5,613,401 21,401,699 (65,068,631) Net cash provided by (used in) investing activities (1,455,547) 407,419 46,074,236 Net cash provided by (used in) financing activities (13,203,558) (13,127,699) 123,671 |
Schedule of disaggregation of revenue | Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Revenue Commission service 96,332 82,054 — Recommendation service — — 3,754,738 Revenue from medical devices 6,000,000 — — Interest income 215,393 1,690,448 3,043,096 Other — — 161,538 Total revenues 6,311,725 1,772,502 6,959,372 Tax and surcharges (633) (17,567) (44,898) Net Revenues 6,311,092 1,754,935 6,914,474 |
Schedule of the depreciation of property, equipment and software recognized | Useful life Office equipment 3-5 years |
Schedule of foreign currency translation rates | Fiscal year 2022 Fiscal year 2021 US Exchange Rate Year-end RMB 6.3393 6.5518 Year average RMB 6.4180 6.7834 |
Schedule of noncontrolling interest | December 31, December 31, 2022 2021 USD USD We Healthy 1,976 — |
DISCONTINUED OPERATION (Tables)
DISCONTINUED OPERATION (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
DISCONTINUED OPERATION | |
Schedule of discontinued operations | The results of discontinued operations for years ended March 31, 2021 and 2020 are as follows: For the years ended March 31, 2021 2020 USD USD Net Revenues 545,718 4,520,585 Operating costs and development 8,082,165 24,942,630 (Loss) income from discontinued operations (7,536,447) (20,422,045) Other income (expense), net 1,097,265 365,927 (Loss) income before tax (6,439,182) (20,056,118) Income tax provision 367 3,778,776 Net (loss) income from discontinued operations, net of tax (6,439,549) (23,834,894) Gain on sale of discontinued operations, net of taxes 3,164,802 — Net (loss) from disposition of subsidiaries (3,274,747) (23,834,894) |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | As of As of March 31, 2022 March 31, 2021 USD USD Accounts receivable 85,386 96,226 Allowance for uncollectible accounts receivable (70,139) (67,864) Accounts receivable, net 15,247 28,362 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
LOANS RECEIVABLE, NET | |
Schedule of loans receivable, net | As of As of March 31, 2022 March 31, 2021 USD USD Loans receivable 46,115,732 44,660,186 Allowance for uncollectible loans receivable (46,115,732) (39,172,141) Loans receivable, net - current — 5,488,045 |
Schedule of movement of allowance for uncollectible loans receivable | Year ended Year ended March 31, 2022 March 31, 2021 USD USD Balance at beginning of the year 39,172,141 15,017,029 Provision for allowance of uncollectible loans receivable 5,561,457 22,159,416 Foreign currency translation adjustments 1,382,134 1,995,696 Balance at end of the year 46,115,732 39,172,141 |
PREPAYMENTS AND OTHER ASSETS (T
PREPAYMENTS AND OTHER ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
PREPAYMENTS AND OTHER ASSETS | |
Schedule of prepayment and other assets | As of As of March 31, 2022 March 31, 2021 USD USD Rental and other deposits 558,614 252,394 Prepayments to suppliers and others 323,088 309,164 Interest receivable 2,055 11,746 Staff advances 4,203 31,220 Total prepayments and other assets 887,960 604,524 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
OTHER RECEIVABLES | |
Schedule of other receivables | As of As of March 31, 2022 March 31, 2021 USD USD Other receivables 24,621,834 10,368,959 Allowance for uncollectible other receivables (4,621,834) — Other receivables, net 20,000,000 10,368,959 Other receivables – current 20,000,000 8,872,838 Other receivables – non-current — 1,496,121 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | As of As of March 31, 2022 March 31, 2021 USD USD Cost: Office equipment 141,313 131,967 Total 141,313 131,967 Less: Accumulated depreciation (85,880) (65,080) Property and equipment, net 55,433 66,887 |
LONG-TERM INVESTMENTS, NET (Tab
LONG-TERM INVESTMENTS, NET (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
LONG-TERM INVESTMENTS, NET | |
Schedule of long-term investments, net | As of As of March 31, 2022 March 31, 2021 USD USD Investments in equity security without readily determinable fair value Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”) (a) 29,189,836 29,189,836 Musketeer Group Inc. (“Musketeer”) (b) 1,600,000 1,600,000 30,789,836 30,789,836 Impairment on investments (30,789,836) (30,789,836) Long term investments, net — — (a) On January 8, 2019, the Company signed an agreement to acquire a 5.88% equity stake in Phoenix Intelligent Credit Group Ltd (“Phoenix Intelligent Credit”), a wholly owned subsidiary of Phoenix Financial Group Ltd (“Phoenix Finance”), which is unrelated to the Company, and operator of one of China’s leading peer-to-peer lending platforms, for a total consideration of approximately US $29 million (RMB 200 million). The acquisition was completed as of March 31, 2019 and the Company had an acquisition price payable to Phoenix Finance in the amount of US $14,289,371 as of March 31, 2019, which was fully paid in April 2019. Pursuant to the investment agreement, such investment is redeemable at the option of the Company if certain future performance condition cannot be met. The Company accounted the investment as investment in an equity security without readily determinable fair value. In light of the significant change in the regulatory environment in the PRC related to the peer-to-peer lending industry and the impact of COVID-19 on Phoenix Intelligent Credit, the Company recognized a full impairment of this investment as of March 31, 2022 and 2021. (b) On August 9, 2018, the Company acquired a 19.99% equity stake in Musketeer Group Inc. (“Musketeer”), an Indonesian online lending platform that offers consumption installment loans, for approximately US $1.6 million. The investment was accounted for using the cost method because the Company does not have any significant influence over Musketeer. Since Musketeer is a start-up company in its early stage, there was no readily determinable fair value. On August 14, 2019, Musketeer completed its registration for a peer-to-peer (P2P) lending platform with the Indonesian Financial Services Authority (OJK). In light of the significant changes of market conditions and the impact of COVID-19 in Indonesia, the Company recognized full impairment of this investment as of March 31, 2022 and 2021. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of As of March 31, 2022 March 31, 2021 USD USD Accrued payroll and benefits 114,839 293,324 Professional fees and other accrued expenses 826,966 849,183 Interest payable 127,244 — 1,069,049 1,142,507 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
TAXES PAYABLE | |
Schedule of taxes payable | As of As of March 31, 2022 March 31, 2021 USD USD Income taxes payable 113,658 419,709 VAT payable 11,495 (117,336) Other taxes payable — 309 Total taxes payable (receivable) 125,153 302,682 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
Schedule of components of the income tax expenses (benefit) | Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Current 131,433 482,976 446,769 Deferred — — 43,186 Total 131,433 482,976 489,955 |
Schedule of net deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities | As of As of March 31, 2022 March 31, 2021 USD USD Provision for loan loss – PRC entities 2,395,294 5,539,854 Net operating loss carry forwards – PRC entities 642,772 1,004,821 Net operating loss carry forwards – U.S. entities 225,639 — Total deferred tax assets 3,263,705 6,544,675 Less: Valuation allowance (3,263,705) (6,544,675) Total net deferred tax assets — — |
Schedule of reconciliation of the PRC statutory rates to the company's effective tax rate | Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 PRC Income tax statutory rate (25.0) % (25.0) % (25.0) % Effect of tax holiday and preferential tax rate 4.0 % 1.0 % — Tax rate difference outside PRC 0.6 % — — Non-deductible foreign losses 6.5 % 4.8 % 18.5 % Change in valuation allowance 19.5 % 21.1 % 9.1 % Non-deductible expenses and others (4.8) % (0.3) % (1.5) % Effective tax rate (0.8) % 1.6 % 1.1 % |
LOSS PER SHARE ('LPS') (Tables)
LOSS PER SHARE ('LPS') (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
LOSS PER SHARE ("LPS") | |
Schedule of computation of the basic and diluted net earnings (loss) per share | Year ended Year ended Year ended March 31, 2022 March 31, 2021 March 31, 2020 USD USD USD Numerator: Net loss from continuing operation attributable to Akso Health Group (16,851,064) (31,552,242) (47,363,485) Net loss from discontinued operation attributable to Akso Health Group — (3,274,747) (23,834,894) Net loss attributable to Akso Health Group (16,851,064) (34,826,989) (71,198,379) Denominator: Weighted average number of ordinary shares outstanding-basic 59,612,152 48,837,977 48,757,199 Weighted average number of dilutive potential ordinary shares from share options — — — Weighted average number of ordinary shares outstanding-diluted 59,612,152 48,837,977 48,757,199 Basic (loss) per common share (0.28) (0.71) (1.46) Diluted (loss) per common share (0.28) (0.71) (1.46) |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
SHAREHOLDERS' EQUITY | |
Summary of the status of warrants outstanding and exercisable | Weighted Average Aggregate Warrants Exercise Price Intrinsic Value Warrants outstanding, as of March 31, 2021 — — — Issued 6,340,000 $ 3.0 — Exercised — — — Expired — — — Warrants outstanding, as of March 31, 2022 6,340,000 $ 3.0 — Warrants exercisable, as of March 31, 2022 6,340,000 $ 3.0 — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
SHARE-BASED COMPENSATION | |
Schedule of stock option shares activities under the Company's 2016 Equity Incentive Plan | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life in Grant Date Intrinsic options Price Years Fair Value Value USD USD USD Outstanding, March 31, 2019 4,986,078 1.18 1 3,403,827 7,954,959 Number of Exercise (320,020) 1.03 1 (185,612) — Number of Expired, forfeited or cancelled (345,104) 3.73 — (237,392) — Outstanding, March 31, 2020 4,320,954 1.01 0.4 2,980,823 — Number of Exercise — Number of Expired, forfeited or cancelled (3,487,064) 0.96 — (3,332,614) — Outstanding, March 31, 2021 833,890 1.23 — (351,791) — Number of Expired, forfeited or cancelled (242,492) 1.75 — (253,337) — Outstanding, March 31, 2022 591,398 0.88 — (605,128) — Vested and exercisable, March 31, 2020 4,298,787 0.97 — 2,646,781 — Vested and exercisable, March 31, 2021 833,890 1.23 — (351,791) — Vested and exercisable, March 31, 2022 591,398 0.88 — (605,128) — |
Schedule of Company's RSUs activities under all incentive plans | The following table summarized the Company’s RSUs activities under all incentive plans (in US$, except shares): Number of Restricted Shares Weighted-average grant date fair value USD Outstanding at March 31, 2018 — Granted 616,700 9.26 Vested (538,900) 9.26 Forfeited — — Outstanding at March 31, 2019 77,800 9.26 Granted Vested (38,900) 9.26 Forfeited (3,333) 9.26 Outstanding at March 31, 2020 35,567 9.26 Granted — — Vested (32,234) 9.26 Forfeited (3,333) — Outstanding at March 31, 2021 — — Granted 727,476 1.62 Vested (727,476) 1.62 Forfeited — — Outstanding at March 31, 2022 — — |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
SEGMENT REPORTING | |
Disclosure of summary information by segment | Online Health For the Year Ended March 31, 2022 marketplace devices Total Net Revenues $ 311,092 $ 6,000,000 $ 6,311,092 Cost of goods sold — 5,394,866 5,394,866 Operating expenses 16,816,016 37,964 16,853,980 (Loss) income from operations (16,504,925) 567,171 (15,937,754) Depreciation and amortization 18,390 — 18,390 Total capital expenditures $ — $ — $ — Online Health For the Year Ended March 31, 2021 marketplace devices Total Revenues $ 1,754,935 $ — $ 1,754,935 Operating expenses 32,659,283 — 32,659,283 Loss from operations (30,904,348) — (30,904,348) Depreciation and amortization 15,161 — 15,161 Total capital expenditures $ — $ — $ — Online Health For the Year Ended March 31, 2020 marketplace devices Total Revenues $ 6,914,474 $ — $ 6,914,474 Operating expenses 55,020,164 — 55,020,164 Loss from operations (48,105,690) — (48,105,690) Depreciation and amortization 120,520 — 120,520 Total capital expenditures $ 200,360 $ — $ 200,360 March 31, March 31, 2022 2021 Online marketplace $ 22,942,806 $ 31,685,496 Health devices 27,736,978 — Total Assets $ 50,679,784 $ 31,685,496 |
BUSINESS DESCRIPTION (Details)
BUSINESS DESCRIPTION (Details) | Mar. 31, 2022 |
Hexindai Hong Kong Limited ("HK Hexindai") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
Beijing Hexin Yongheng Technology Development Co., Ltd ("WOFE") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
Tianjin Haohongyuan Technology Co., Ltd (Tianjin Haohongyuan") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
HX Asia Investment Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
HX China Investment Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
Hexin Investment Private Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
We Health | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
We Healthy | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 51% |
Akso Remote Medical Consultation Center Inc. ("Akso Remote Medical") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
Akso Online MediTech Co., Ltd.("Akso Online MediTech") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
Akso First Health Treatment Center Inc. ("Akso First Health") | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 100% |
Qindao Akso Health Management Co., Limited | |
BUSINESS DESCRIPTION | |
Ownership percentage in subsidiary | 51% |
GOING CONCERN (Details)
GOING CONCERN (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
GOING CONCERN | |||
Net loss | $ 16,849,733 | $ 34,826,989 | $ 71,198,379 |
Net cash provided by operating activities | $ (8,628,371) | $ 10,058,470 | $ (58,278,734) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Mar. 31, 2022 loan | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of loan agreements | 3 |
Term of the loan (in years) | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated VIE (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Current Assets: | |||
Cash and cash equivalents | $ 21,925,322 | $ 15,128,719 | |
Accounts receivable and contract assets, net | 15,247 | 28,362 | |
Loans receivable, net - current | 5,488,045 | ||
Prepayments and other assets | 887,960 | 604,524 | |
Other receivables | 20,000,000 | 8,872,838 | |
TOTAL CURRENT ASSETS | 50,624,351 | 30,122,488 | |
Property and equipment, net | 55,433 | 66,887 | |
Other receivable - non-current | 1,496,121 | ||
TOTAL ASSETS | 50,679,784 | 31,685,496 | |
Current Liabilities | |||
Accrued expenses and other current liabilities | 1,069,049 | 1,142,507 | |
Taxes payable | 125,153 | 302,682 | |
TOTAL CURRENT LIABILITIES | 38,394,202 | 14,413,971 | |
TOTAL LIABILITIES | 38,394,202 | 14,413,971 | |
Net revenues | 6,311,092 | 1,754,935 | $ 6,914,474 |
Net loss | (16,849,733) | (34,826,989) | (71,198,379) |
Net cash provided by (used in) operating activities | (8,628,371) | 10,058,470 | (58,278,734) |
Net cash provided by (used in) investing activities | (19,963,860) | (662) | 12,775,363 |
Net cash provided by (used in) financing activities | 34,781,117 | (9,037,223) | (1,552,185) |
Consolidated VIEs | |||
Current Assets: | |||
Cash and cash equivalents | 2,394,869 | 10,246,074 | |
Accounts receivable and contract assets, net | 15,247 | 28,362 | |
Loans receivable, net - current | 5,488,045 | ||
Prepayments and other assets | 55,864 | 381,297 | |
Other receivables | 8,872,838 | ||
Amounts due from related parties | 27,139,795 | 13,936,237 | |
TOTAL CURRENT ASSETS | 29,605,775 | 38,952,853 | |
Property and equipment, net | 53,888 | 64,268 | |
Other receivable - non-current | 1,496,121 | ||
TOTAL ASSETS | 29,659,663 | 40,513,242 | |
Current Liabilities | |||
Accrued expenses and other current liabilities | 77,296 | 246,210 | |
Taxes payable | 11,909 | 363,484 | |
TOTAL CURRENT LIABILITIES | 89,205 | 609,694 | |
TOTAL LIABILITIES | 89,205 | 609,694 | |
Net revenues | 311,725 | 1,759,941 | 5,944,541 |
Net loss | (11,527,588) | (24,258,182) | (12,532,634) |
Net cash provided by (used in) operating activities | 5,613,401 | 21,401,699 | (65,068,631) |
Net cash provided by (used in) investing activities | (1,455,547) | 407,419 | 46,074,236 |
Net cash provided by (used in) financing activities | $ (13,203,558) | $ (13,127,699) | $ 123,671 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Revenue | $ 6,311,725 | $ 1,772,502 | $ 6,959,372 |
Commission service | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Revenue | 96,332 | 82,054 | 0 |
Recommendation service | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Revenue | 0 | 0 | 3,754,738 |
Interest income | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Revenue | $ 215,393 | $ 1,690,448 | $ 3,043,096 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of revenue (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 6,311,725 | $ 1,772,502 | $ 6,959,372 |
Tax and surcharges | (633) | (17,567) | (44,898) |
Net Revenues | 6,311,092 | 1,754,935 | 6,914,474 |
Retained earnings | (53,107,676) | (36,256,612) | |
Commission service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 96,332 | 82,054 | 0 |
Recommendation service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 3,754,738 |
Revenue from medical devices | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6,000,000 | ||
Interest income | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 215,393 | $ 1,690,448 | 3,043,096 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 161,538 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts receivable and allowance for uncollectible accounts and Loans receivable (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Guarantor Obligations [Line Items] | |||
Allowance for uncollectible accounts receivable | $ 70,138 | $ 67,864 | |
Allowance for uncollectible loan receivable | 46,115,732 | 39,172,141 | $ 15,017,029 |
Total amount of new loans issued | $ 0 | $ 0 | $ 74,003 |
Minimum | |||
Guarantor Obligations [Line Items] | |||
Terms of loans (in months) | 12 months | ||
Interest rate (in percentage) | 6% | ||
Maximum | |||
Guarantor Obligations [Line Items] | |||
Terms of loans (in months) | 36 months | ||
Interest rate (in percentage) | 8% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) - Office equipment | 12 Months Ended |
Mar. 31, 2022 | |
Minimum | |
PROPERTY AND EQUIPMENT, NET | |
Estimated Useful Life | 3 years |
Maximum | |
PROPERTY AND EQUIPMENT, NET | |
Estimated Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of long lived assets, Advertising and promotion expenses, Research and development costs, Lease and Income taxes (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Advertising and promotion expenses | 5,886 | 176,193 | 736,522 |
Research and development costs | $ 421,186 | $ 441,405 | $ 117,942 |
Operating lease term | 1 year |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Noncontrolling interests (Details) | Mar. 31, 2022 USD ($) |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest | $ 1,976 |
We Healthy | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest | $ 1,976 |
We Healthy | Other investors | |
Noncontrolling Interest [Line Items] | |
Ownership interest held by Non-controlling interest shareholders | 49% |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translation and Segment reporting (Details) | 12 Months Ended | |
Mar. 31, 2022 segment | Mar. 31, 2021 | |
Foreign currency translation | ||
Year-end RMB | 6.3393 | 6.5518 |
Year average RMB | 6.4180 | 6.7834 |
Number of operating segments | 2 | |
Number of reportable segments | 2 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Significant Risks and Uncertainties (Details) | 12 Months Ended | |||
Mar. 31, 2022 USD ($) customer item | Mar. 31, 2021 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2022 HKD ($) | |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 21,925,322 | $ 15,128,719 | ||
Upper limit amount of deposits at each bank covered by insurance | 79,000 | ¥ 500,000 | ||
Amount not covered by issuance | 13,494,326 | |||
Maximum compensation limit | 64,000 | $ 500,000 | ||
Insurance coverage amount | 250,000 | |||
Amount not covered by issuance | $ 7,759,312 | |||
Number of customers | customer | 1 | |||
Revenues | Customer Concentration Risk | Customer 2 | ||||
Cash and Cash Equivalents [Line Items] | ||||
Concentration of credit risk | 95.10% | |||
Purchases | Supplier concentration risk | Customer 1 | ||||
Cash and Cash Equivalents [Line Items] | ||||
Number of Vendors | item | 1 | |||
Concentration of credit risk | 100% | 0% | ||
HONG KONG | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash balance subject to credit risk | $ 0 | |||
RMB | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 13,843,088 | $ 15,128,719 |
DISCONTINUED OPERATION (Details
DISCONTINUED OPERATION (Details) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Dec. 16, 2020 USD ($) | Dec. 16, 2020 CNY (¥) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Net (loss) income from discontinued operations, net of tax | $ (6,439,549) | $ (23,834,894) | ||
Gain on sale of discontinued operations, net of taxes | 3,164,802 | |||
Total loss from discontinued operations | (3,274,747) | (23,834,894) | ||
Discontinued operations held for sale | Hexin E-Commerce | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration | $ 726,781 | ¥ 5 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Net Revenues | 545,718 | 4,520,585 | ||
Operating costs and development | 8,082,165 | 24,942,630 | ||
(Loss) income from discontinued operations | (7,536,447) | (20,422,045) | ||
Other income (expense), net | 1,097,265 | 365,927 | ||
(Loss) income before tax | (6,439,182) | (20,056,118) | ||
Income tax provision | 367 | 3,778,776 | ||
Net (loss) income from discontinued operations, net of tax | (6,439,549) | (23,834,894) | ||
Gain on sale of discontinued operations, net of taxes | 3,164,802 | |||
Total loss from discontinued operations | $ (3,274,747) | $ (23,834,894) |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
ACCOUNTS RECEIVABLE, NET | ||
Accounts receivable | $ 85,386 | $ 96,226 |
Allowance for uncollectible accounts receivable | (70,139) | (67,864) |
Accounts receivable, net | $ 15,247 | $ 28,362 |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
LOANS RECEIVABLE, NET | |||
Loans receivable | $ 46,115,732 | $ 44,660,186 | |
Allowance for uncollectible loans receivable | $ (46,115,732) | (39,172,141) | $ (15,017,029) |
Loans receivable, net - current | $ 5,488,045 |
LOANS RECEIVABLE, NET - Movemen
LOANS RECEIVABLE, NET - Movement of allowance for uncollectible loans receivable (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
LOANS RECEIVABLE, NET | ||
Beginning balance | $ 39,172,141 | $ 15,017,029 |
Provision for allowance of uncollectible loans receivable | 5,561,457 | 22,159,416 |
Foreign currency translation adjustments | 1,382,134 | 1,995,696 |
Ending balance | $ 46,115,732 | $ 39,172,141 |
PREPAYMENTS AND OTHER ASSETS (D
PREPAYMENTS AND OTHER ASSETS (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
PREPAYMENTS AND OTHER ASSETS | ||
Rental and other deposits | $ 558,614 | $ 252,394 |
Prepayments to suppliers and others | 323,088 | 309,164 |
Interest receivable | 2,055 | 11,746 |
Staff advances | 4,203 | 31,220 |
Total prepayments and other assets | $ 887,960 | $ 604,524 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
INVENTORIES | ||
Inventory, net | $ 7,795,822 | |
Reserve for Inventories | $ 0 | $ 0 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 08, 2022 | May 22, 2022 | Jul. 31, 2022 | Jan. 31, 2022 | May 31, 2020 | Nov. 30, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | |
Other Receivable [Line Items] | ||||||||
Other receivables | $ 24,621,834 | $ 10,368,959 | ||||||
Allowance for uncollectible other receivables | (4,621,834) | |||||||
Other receivables, net | 20,000,000 | 10,368,959 | ||||||
Other receivables - current | 20,000,000 | 8,872,838 | ||||||
Other receivables - non-current | 1,496,121 | |||||||
Payments for Deposits | $ 15,500,000 | $ 30,900,000 | ||||||
Refund Of Deposits Receivable | $ 4,500,000 | 6,100,000 | ||||||
Remaining balance refund on monthly basis in next two years | $ 693,905 | |||||||
Period For Refund Of Remaining Balance Of Deposits Receivable On Monthly Basis | 2 years | |||||||
Annual Interest Charge On Refund Receivable On Deposits | 2% | |||||||
Registered Capital Of Guarantee Company | $ 142,900,000 | |||||||
Allowance for remaining balance received | 4,600,000 | |||||||
Amount borrowed from a third party | $ 35,200,000 | |||||||
Interest receivable | 2,055 | $ 11,746 | ||||||
Four Individuals | ||||||||
Other Receivable [Line Items] | ||||||||
Principal payment of loan to each individual | $ 5,000,000 | |||||||
Annual Interest rate on debt | 5% | |||||||
Amount received as a repayment of debt | $ 20,000,000 | |||||||
Four Individuals | Subsequent event | ||||||||
Other Receivable [Line Items] | ||||||||
Interest income | $ 300,000 | $ 300,000 | ||||||
Amount lent to other individuals | $ 20,000,000 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | |||
Total | $ 141,313 | $ 131,967 | |
Less: Accumulated depreciation | (85,880) | (65,080) | |
Property and equipment, net | 55,433 | 66,887 | |
Depreciation and amortization | 18,390 | 15,161 | $ 120,520 |
Office equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Total | $ 141,313 | $ 131,967 |
LONG-TERM INVESTMENTS, NET (Det
LONG-TERM INVESTMENTS, NET (Details) ¥ in Millions | 12 Months Ended | ||||||
Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) | Jan. 08, 2019 USD ($) | Jan. 08, 2019 CNY (¥) | Aug. 09, 2018 USD ($) | |
LONG TERM INVESTMENTS | |||||||
Long term investments, gross | $ 30,789,836 | $ 30,789,836 | |||||
Impairment on investments | (30,789,836) | (30,789,836) | |||||
Impairment charge on long-term investments | 0 | 1,600,000 | $ 29,189,836 | ||||
Phoenix Intelligent Credit | |||||||
LONG TERM INVESTMENTS | |||||||
Long term investments, gross | 29,189,836 | 29,189,836 | |||||
Equity stake acquired (as a percentage) | 5.88% | 5.88% | |||||
Total consideration | $ 29,000,000 | ¥ 200 | |||||
Consideration payable | $ 14,289,371 | ||||||
Musketeer | |||||||
LONG TERM INVESTMENTS | |||||||
Long term investments, gross | $ 1,600,000 | $ 1,600,000 | |||||
Equity stake acquired (as a percentage) | 19.99% | ||||||
Total consideration | $ 1,600,000 |
RIGHT OF USE LEASE ASSETS (Deta
RIGHT OF USE LEASE ASSETS (Details) - USD ($) | 12 Months Ended | ||||
Oct. 15, 2021 | Apr. 01, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease, practical expedients, package [true false] | true | ||||
Lease, practical expedient, use of hindsight [true false] | false | ||||
Deficit | $ (53,107,676) | $ (36,256,612) | |||
Total lease expenses | 467,435 | 398,709 | $ 1,976,738 | ||
Total cash paid for operating leases | $ 934,871 | $ 934,871 | $ 398,709 | 2,100,320 | |
ASU 2016-02 | Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deficit | $ 0 | ||||
ROU asset | $ 2,559,646 | ||||
Lease liability | $ 2,559,646 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Accrued payroll and benefits | $ 114,839 | $ 293,324 |
Professional fees and other accrued expenses | 826,966 | 849,183 |
Interest payable | 127,244 | |
Accrued expenses and other liabilities, net | $ 1,069,049 | $ 1,142,507 |
NOTE PAYABLE (Details)
NOTE PAYABLE (Details) - USD ($) | 12 Months Ended | ||||||
Oct. 25, 2021 | Dec. 15, 2020 | Dec. 14, 2020 | Mar. 29, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
NOTE PAYABLE | |||||||
Repayments of Senior Debt | $ 10,000,000 | $ 10,000,000 | |||||
Second Amendment and Supplemental Agreement | |||||||
NOTE PAYABLE | |||||||
Principal amount to be repaid | $ 10,000,000 | ||||||
Repayments of Senior Debt | 10,000,000 | ||||||
Interest paid | $ 93,333 | ||||||
Senior unsecured note | |||||||
NOTE PAYABLE | |||||||
Loan principal amount | $ 20,000,000 | ||||||
Term of loan (in years) | 3 years | ||||||
Fixed interest rate | 12% | ||||||
Note payable | 0 | 10,000,000 | |||||
Interest expense | $ 700,000 | $ 2,100,000 | $ 2,400,000 | ||||
Senior unsecured note | Amendment and Supplemental Agreement | |||||||
NOTE PAYABLE | |||||||
Principal amount to be repaid | $ 10,000,000 | ||||||
Threshold period for principal and interest repayment from effective date of agreement | 5 days | ||||||
Repayments of Senior Debt | $ 5,000,000 | $ 5,000,000 | |||||
Interest paid | $ 513,333 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Millions | 1 Months Ended | |||||||
Aug. 26, 2021 USD ($) | Jul. 13, 2021 shares | Oct. 15, 2020 USD ($) | Jul. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | Dec. 16, 2020 USD ($) | Dec. 16, 2020 CNY (¥) | Mar. 31, 2020 USD ($) | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||
Number of shares sold by shareholders | shares | 31,980,800 | |||||||
Mr. Xiaobo An | ||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||
Due to Related Parties | $ 2,968,782 | |||||||
Repayment of related party debt | $ 2,968,782 | |||||||
Related party transaction term (in years) | 1 year | |||||||
Mr. Xiaobo An | Lease agreement | ||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||
Lease charges | $ 0 | |||||||
Lease term (in years) | 1 year | |||||||
Webao Ltd | Loan agreement | ||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||
Due to Related Parties | $ 2 | $ 2,000,000 | ||||||
Interest rate on debt | 0% | |||||||
Hexin E-Commerce | Discontinued operations held for sale | ||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||
Cash consideration | $ 726,781 | ¥ 5 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - SOS NY (Details) - SOS Information Technology New York Inc [Member] - USD ($) | 12 Months Ended | |||
Jul. 28, 2022 | Jul. 27, 2022 | Jan. 24, 2022 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||||
Weighted average interest rate | 2% | |||
Outstanding balance of third party loan | $ 35,200,000 | |||
Term of loan (in years) | 1 year | |||
Interest expense | $ 127,244 | |||
Payment of principal amount | $ 27,513,849 | |||
Payment of accrued but unpaid interest | $ 358 | |||
Repayment of debt | $ 27,872,600 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
EMPLOYEE BENEFITS | |||
Amount of Contributions | $ 423,413 | $ 435,689 | $ 399,104 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
TAXES PAYABLE | ||
Income taxes payable | $ 113,658 | $ 419,709 |
VAT payable | 11,495 | (117,336) |
Other taxes payable | 309 | |
Total taxes payable (receivable) | $ 125,153 | $ 302,682 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
INCOME TAX | |||
Net (loss) income | $ (16,851,064) | $ (34,826,989) | $ (71,198,379) |
Statutory tax rate (as a percent) | 25% | 25% | 25% |
PRC | |||
INCOME TAX | |||
Statutory tax rate (as a percent) | 25% | ||
PRC | Hexin E Digital | High Technology Enterprises | |||
INCOME TAX | |||
Preferential tax rate (as a percent) | 15% | ||
U.S. | |||
INCOME TAX | |||
Statutory tax rate (as a percent) | 21% | ||
U.S. | We Health | |||
INCOME TAX | |||
Statutory tax rate (as a percent) | 6.50% | ||
U.S. | Akso Remote Medical Consultation Center Inc. ("Akso Remote Medical") | |||
INCOME TAX | |||
Statutory tax rate (as a percent) | 0% | ||
U.S. | Akso Online MediTech Co., Ltd.("Akso Online MediTech") | |||
INCOME TAX | |||
Net (loss) income | $ 441,981 | ||
Statutory tax rate (as a percent) | 8% | ||
Other U.S. | |||
INCOME TAX | |||
Net (loss) income | $ 0 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the income tax expenses (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
INCOME TAXES | |||
Current | $ 131,433 | $ 482,976 | $ 446,769 |
Deferred | 43,186 | ||
Total | $ 131,433 | $ 482,976 | $ 489,955 |
INCOME TAXES - Net deferred tax
INCOME TAXES - Net deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
Income Tax Disclosure [Line Items] | ||
Total deferred tax assets | $ 3,263,705 | $ 6,544,675 |
Less: Valuation allowance | (3,263,705) | (6,544,675) |
PRC | ||
Income Tax Disclosure [Line Items] | ||
Provision for loan loss | 2,395,294 | 5,539,854 |
Net operating loss carry forwards | 642,772 | $ 1,004,821 |
U.S. | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carry forwards | $ 225,639 |
INCOME TAXES - Reconciles the P
INCOME TAXES - Reconciles the PRC statutory rates to the Company's effective tax rate (Details) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
INCOME TAXES | |||
PRC Income tax statutory rate | (25.00%) | (25.00%) | (25.00%) |
Effect of tax holiday and preferential tax rate | 4% | 1% | |
Tax rate difference outside PRC | (0.60%) | ||
Non-deductible foreign losses | 6.50% | 4.80% | 18.50% |
Change in valuation allowance | 19.50% | 21.10% | 9.10% |
Non-deductible expenses and others | (4.80%) | (0.30%) | (1.50%) |
Effective tax rate | (0.80%) | 1.60% | 1.10% |
INCOME TAXES - Others (Details)
INCOME TAXES - Others (Details) | 12 Months Ended | ||||
Jul. 19, 2018 | Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | |
INCOME TAX | |||||
Change in valuation allowance | $ (3,263,705) | $ 2,284,349 | |||
Net loss before taxes | $ (16,718,300) | (31,069,266) | (46,873,530) | ||
Period of statue of limitation | 3 years | 3 years | |||
Period of statue of limitation in the case of underpayment of income taxes | 5 years | 5 years | |||
Income tax liability, maximum amount of underpayment | $ 15,263 | ¥ 100,000 | |||
Statue of limitation related to transfer pricing adjustment | 10 years | 10 years | |||
Undistributed earnings of the Company's PRC subsidiaries and VIEs | $ 30,800,000 | 36,000,000 | |||
Withholding tax rate on dividend distributed by FIE | 10% | 10% | |||
Withholding income taxes for undistributed profits of the Company's subsidiaries | $ 0 | 0 | |||
PRC | |||||
INCOME TAX | |||||
Net loss before taxes | (12,704,083) | (31,069,266) | (46,873,529) | ||
PRC | Hexin E Digital | |||||
INCOME TAX | |||||
Net operating loss carry forward | 2,571,000 | ||||
U.S. | |||||
INCOME TAX | |||||
Net loss before taxes | $ (16,718,300) | $ 0 | $ 0 | ||
Minimum | |||||
INCOME TAX | |||||
Rate of withholding tax for dividends paid by an FIE in China to its immediate holding company in Hong Kong under specified conditions | 10% | 10% | |||
Ownership percentage of the FIE by foreign investors to qualify for withholding tax rate limit for dividends paid by an FIE in China to its immediate holding company in Hong Kong | 25% | 25% | |||
Percentage of dividend (in percentage) | 15% | ||||
Maximum | |||||
INCOME TAX | |||||
Rate of withholding tax for dividends paid by an FIE in China to its immediate holding company in Hong Kong under specified conditions | 5% | 5% | |||
Ownership percentage of the FIE by foreign investors to qualify for withholding tax rate limit for dividends paid by an FIE in China to its immediate holding company in Hong Kong | 25% | 25% | |||
Percentage of dividend (in percentage) | 25% |
LOSS PER SHARE ('LPS') (Details
LOSS PER SHARE ('LPS') (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | |||
Net loss from continuing operation attributable to Akso Health Group | $ (16,851,064) | $ (31,552,242) | $ (47,363,485) |
Net loss from discontinued operation attributable to Akso Health Group | (3,274,747) | (23,834,894) | |
NET (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | $ (16,851,064) | $ (34,826,989) | $ (71,198,379) |
Denominator: | |||
Weighted average number of ordinary shares outstanding-basic | 59,612,152 | 48,837,977 | 48,757,199 |
Weighted average number of ordinary shares outstanding-diluted | 59,612,152 | 48,837,977 | 48,757,199 |
Basic (loss) per common share (in dollars per share) | $ (0.28) | $ (0.71) | $ (1.46) |
Diluted (loss) per common share (in dollars per share) | $ (0.28) | $ (0.71) | $ (1.46) |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) | 12 Months Ended | |||||
Sep. 17, 2021 USD ($) | Aug. 09, 2021 USD ($) $ / shares shares | Aug. 24, 2020 | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 $ / shares shares | Aug. 23, 2020 | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||
Ordinary shares, par value (in US dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, shares issued (in shares) | 69,763,933 | 50,016,457 | ||||
Ordinary shares, shares outstanding (in shares) | 68,598,050 | 48,850,574 | ||||
ADS ratio | 3 | 1 | ||||
Reverse ADS split ratio | 3 | |||||
Aggregate purchase price | $ | $ 10,017,200 | |||||
Net proceeds | $ | $ 10,017,200 | |||||
Number of warrants outstanding | 6,340,000 | 0 | ||||
Number of shares to purchase warrants | 19,020,000 | |||||
Weighted average exercise price of warrants | $ / shares | $ 3 | |||||
Remaining contractual life of warrants | 4 years 6 months | |||||
Private placement offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Ordinary shares, par value (in US dollars per share) | $ / shares | $ 0.0001 | |||||
Number of units issued | 6,340,000 | |||||
Number of shares in a Unit | 3 | |||||
Number of shares to purchase a warrant | 3 | |||||
Exercise price of warrants | $ / shares | $ 3 | |||||
Price per Unit | $ / shares | $ 1.58 | |||||
Aggregate purchase price | $ | $ 10,020,000 | |||||
Net proceeds | $ | $ 10,000,000 | |||||
Term for exercise of warrants on a cashless basis | 6 months | |||||
Term of warrants (in years) | 5 years |
SHAREHOLDERS' EQUITY - Warrants
SHAREHOLDERS' EQUITY - Warrants Outstanding and Exercisable (Details) | 12 Months Ended |
Mar. 31, 2022 $ / shares shares | |
Warrants | |
Warrants outstanding, as of March 31, 2021 | shares | 0 |
Issued | shares | 6,340,000 |
Warrants outstanding, as of March 31, 2022 | shares | 6,340,000 |
Warrants exercisable, as of March 31, 2022 | shares | 6,340,000 |
Weighted Average Exercise Price | |
Warrants outstanding, as of March 31, 2021 | $ / shares | $ 0 |
Issued | $ / shares | 3 |
Warrants outstanding, as of March 31, 2022 | $ / shares | 3 |
Warrants exercisable, as of March 31, 2022 | $ / shares | $ 3 |
SHARE-BASED COMPENSATION - 2016
SHARE-BASED COMPENSATION - 2016 Equity Incentive Plan (Details) | 12 Months Ended | ||||||
Jul. 23, 2018 $ / shares | Jul. 22, 2018 $ / shares | Mar. 31, 2018 USD ($) $ / shares shares | Apr. 01, 2016 $ / shares shares | Mar. 31, 2022 USD ($) installment $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares | Mar. 31, 2020 USD ($) $ / shares shares | |
SHARE-BASED COMPENSATION | |||||||
Option granted (in dollars per shares) | $ 0.88 | $ 1.28 | |||||
Weighted Average Exercise Price | |||||||
Option granted (in dollars per shares) | 0.88 | $ 1.28 | |||||
2016 Equity Incentive Plan | |||||||
SHARE-BASED COMPENSATION | |||||||
Option granted (in shares) | shares | (6,312,000) | ||||||
Option granted (in dollars per shares) | $ 1.28 | $ 1.03 | |||||
Common stock, dividends declared (in dollars per share) | 0.40 | ||||||
Number of installments for vested and become exercisable | installment | 3 | ||||||
Percentage of remaining options to be vested | 66.67% | ||||||
Options vested remaining installments | installment | 2 | ||||||
Maximum contractual term (in years) | 4 years | ||||||
Threshold for the unvested options to expire (in years) | 2 years | ||||||
Stock options, vesting period (in years) | 3 years | ||||||
Fair value of options granted to employees | |||||||
Fair market value per share | $ 1.41 | ||||||
Exercise price per share | $ 1.28 | ||||||
Risk-free interest rate | 1.81% | ||||||
Dividend yield | 0% | ||||||
Life of option | 4 years | ||||||
Volatility | 47.40% | ||||||
Number of options | |||||||
Outstanding at beginning of year (in shares) | shares | 833,890 | 4,320,954 | |||||
Option granted (in shares) | shares | 6,312,000 | ||||||
Number of Exercise (in shares) | shares | (320,020) | ||||||
Number of Expired, forfeited or cancelled | shares | (242,492) | (3,487,064) | (345,104) | ||||
Outstanding at end of year (in shares) | shares | 4,986,078 | 591,398 | 833,890 | 4,320,954 | |||
Vested and exercisable (in shares) | shares | 591,398 | 833,890 | 4,298,787 | ||||
Weighted Average Exercise Price | |||||||
Outstanding at beginning of year (in dollars per shares) | $ 1.23 | $ 1.01 | |||||
Option granted (in dollars per shares) | $ 1.28 | $ 1.03 | |||||
Number of Exercise (in dollars per share) | 1.75 | ||||||
Number of Expired, forfeited or cancelled (in dollars per shares) | 0.96 | 3.73 | |||||
Outstanding at end of year (in dollars per shares) | $ 1.18 | 0.88 | 1.23 | 1.01 | |||
Vested and exercisable (in dollars per share) | $ 0.88 | $ 1.23 | $ 0.97 | ||||
Weighted Average Remaining Life in Years | |||||||
Option granted (in years) | 1 year | ||||||
Outstanding at end of period | 1 year | 0 years | 0 years | 4 months 24 days | |||
Vested and exercisable (in years) | 0 years | 0 years | |||||
Grant Date Fair Value | |||||||
Outstanding at beginning of year | $ | $ (351,791) | $ 2,980,823 | |||||
Option granted | $ | $ (185,612) | ||||||
Number of Expired, forfeited or cancelled | $ | (253,337) | (3,332,614) | (237,392) | ||||
Outstanding at end of year | $ | $ 3,403,827 | (605,128) | (351,791) | 2,980,823 | |||
Vested and exercisable | $ | $ (605,128) | $ (351,791) | $ 2,646,781 | ||||
Aggregate Intrinsic Value | |||||||
Outstanding | $ | $ 7,954,959 | ||||||
2016 Equity Incentive Plan | American depositary shares ("ADS") | |||||||
SHARE-BASED COMPENSATION | |||||||
Common stock, dividends declared (in dollars per share) | $ 0.40 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Number of Restricted Shares | ||||
Outstanding at beginning of year (in shares) | 0 | 35,567 | 77,800 | 0 |
Granted (in shares) | 727,476 | 616,700 | ||
Vested (in shares) | (727,476) | (32,234) | (38,900) | (538,900) |
Forfeited (in shares) | (3,333) | (3,333) | ||
Outstanding at end of year (in shares) | 0 | 0 | 35,567 | 77,800 |
Weighted- average grant date fair value | ||||
Outstanding at beginning of year (in dollars per share) | $ 0 | $ 9.26 | $ 9.26 | |
Granted (in dollars per share) | 1.62 | $ 9.26 | ||
Vested (in dollars per share) | 1.62 | 9.26 | 9.26 | 9.26 |
Forfeited (in dollars per share) | 9.26 | |||
Outstanding at end of year (in dollars per share) | $ 0 | $ 0 | $ 9.26 | $ 9.26 |
Forfeiture percentage | 10.50% | 13.04% | 13.04% | |
Fair value of stock option and RSU on the grant date | $ 4,700,000 | |||
Share-based compensation expense | 391,625 | $ 55,468 | $ 347,466 | |
Unrecognized compensation cost | $ 0 | |||
Restricted Stock Units | ||||
SHARE-BASED COMPENSATION | ||||
Number of common stocks represented by each RSU | 3 | 1 | ||
Vesting period | 3 years | |||
Percentage of vesting and exercisable upon the date of grant | 33.33% | |||
Percentage of vesting and exercisable upon the second and third anniversary of the grant date | 66.67% | |||
Number of Restricted Shares | ||||
Granted (in shares) | 242,492 | 616,700 | ||
Vested (in shares) | (242,492) | (32,234) | (38,900) |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) | 12 Months Ended | ||
Dec. 10, 2018 | Mar. 31, 2022 | Mar. 31, 2020 | |
Total consideration on repurchase of shares | $ 2,667,902 | ||
Ads | |||
Number of shares to be repurchased (in shares) | $ 25,000,000 | ||
Term of repurchase (in months) | 12 months | ||
Shares repurchased (in shares) | 1,165,883 | ||
Total consideration on repurchase of shares | $ 3,988,370 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
RESTRICTED NET ASSETS | ||
Restricted net assets | $ 89,500,000 | $ 86,900,000 |
Required percentage of net income allocated to statutory surplus reserve | 10% | |
Threshold percentage of statutory surplus reserves of the registered capital, used as criteria of allocation requirement | 50% | |
Statutory reserve | $ 485,211 | $ 469,473 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
Contingencies | ||
Contingent liability | $ 0 | $ 0 |
SEGMENTS (Details)
SEGMENTS (Details) | 12 Months Ended | ||
Mar. 31, 2022 USD ($) segment | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Net revenues | $ 6,311,092 | $ 1,754,935 | $ 6,914,474 |
Cost of goods sold | 5,394,866 | ||
Operating expenses | 16,853,980 | 32,659,283 | 55,020,164 |
(Loss) income from operations | (15,937,754) | (30,904,348) | (48,105,690) |
Depreciation and amortization | 18,390 | 15,161 | 120,520 |
Total capital expenditures | 200,360 | ||
Total Assets | 50,679,784 | 31,685,496 | |
Online Market Place | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Net revenues | 311,092 | 1,754,935 | 6,914,474 |
Operating expenses | 16,816,016 | 32,659,283 | 55,020,164 |
(Loss) income from operations | (16,504,925) | (30,904,348) | (48,105,690) |
Depreciation and amortization | 18,390 | 15,161 | 120,520 |
Total capital expenditures | $ 200,360 | ||
Total Assets | 22,942,806 | $ 31,685,496 | |
Health Devices | |||
Segment Reporting Information, Operating Income (Loss) [Abstract] | |||
Net revenues | 6,000,000 | ||
Cost of goods sold | 5,394,866 | ||
Operating expenses | 37,964 | ||
(Loss) income from operations | 567,171 | ||
Total Assets | $ 27,736,978 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) | 1 Months Ended | |||||
Jul. 28, 2022 | Jul. 27, 2022 | Jul. 08, 2022 | Dec. 15, 2020 | Dec. 14, 2020 | Jul. 31, 2022 | |
Senior unsecured note | Amendment and Supplemental Agreement | ||||||
SUBSEQUENT EVENT | ||||||
Principal amount to be repaid | $ 10,000,000 | |||||
Interest paid | $ 513,333 | |||||
Subsequent event | Senior unsecured note | Amendment and Supplemental Agreement | ||||||
SUBSEQUENT EVENT | ||||||
Principal amount to be repaid | $ 27,872,600 | $ 27,515,778 | ||||
Interest paid | $ 356,822 | |||||
Subsequent event | Four Individuals | ||||||
SUBSEQUENT EVENT | ||||||
Amount lent to other individuals | $ 20,000,000 | |||||
Interest income | $ 300,000 | $ 300,000 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) | 12 Months Ended |
Mar. 31, 2022 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Required percentage of net income allocated to statutory surplus reserve | 10% |
Threshold percentage of statutory surplus reserves of the registered capital, used as criteria of allocation requirement | 50% |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) - USD ($) | Mar. 31, 2022 | Mar. 31, 2021 |
ASSETS: | ||
TOTAL ASSETS | $ 50,679,784 | $ 31,685,496 |
LIABILITIES: | ||
Accrued expenses and other current liabilities | 1,069,049 | 1,142,507 |
TOTAL LIABILITIES | 38,394,202 | 14,413,971 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares ($0.0001 par value, 500,000,000 shares authorized, 50,016,457 and 49,984,223 shares issued, 48,850,574 and 48,818,340 shares outstanding as of March 31, 2021 and 2020, respectively.) | 6,977 | 5,002 |
Additional paid-in capital | 71,021,898 | 60,615,048 |
Treasury stock | (3,988,370) | (3,988,370) |
Deficit | (53,107,676) | (36,256,612) |
Accumulated other comprehensive loss | (1,649,223) | (3,103,543) |
TOTAL SHAREHOLDERS' EQUITY | 12,283,606 | 17,271,525 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 50,679,784 | $ 31,685,496 |
Ordinary shares, par value (in US dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in shares) | 69,763,933 | 50,016,457 |
Ordinary shares, shares outstanding (in shares) | 68,598,050 | 48,850,574 |
Parent Company | Reportable Legal Entities | ||
ASSETS: | ||
Cash | $ 4,491 | $ 1,483,484 |
Prepayment and other assets | 5,795 | 160,450 |
Investments in subsidiaries, VIEs and VIEs' subsidiaries | 14,333,994 | 30,793,763 |
TOTAL ASSETS | 14,344,280 | 32,437,697 |
LIABILITIES: | ||
Accrued expenses and other current liabilities | 60,675 | 161,882 |
Note payable | 10,000,000 | |
Due to related party | 2,000,000 | 5,004,290 |
TOTAL LIABILITIES | 2,060,675 | 15,166,172 |
SHAREHOLDERS' EQUITY: | ||
Ordinary shares ($0.0001 par value, 500,000,000 shares authorized, 50,016,457 and 49,984,223 shares issued, 48,850,574 and 48,818,340 shares outstanding as of March 31, 2021 and 2020, respectively.) | 6,976 | 5,002 |
Additional paid-in capital | 71,021,898 | 49,330,571 |
Treasury stock | (3,988,370) | (3,988,370) |
Deficit | (53,107,676) | (26,760,239) |
Accumulated other comprehensive loss | (1,649,223) | (1,315,439) |
TOTAL SHAREHOLDERS' EQUITY | 12,283,605 | 17,271,525 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 14,344,280 | $ 32,437,697 |
Ordinary shares, par value (in US dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in shares) | 69,763,933 | 50,016,457 |
Ordinary shares, shares outstanding (in shares) | 68,598,050 | 48,850,574 |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
General administrative expense and others | $ (14,996,104) | $ (27,217,613) | $ (20,488,796) |
Impairment on long-term investments | 0 | (1,600,000) | (29,189,836) |
NET (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | (16,851,064) | (34,826,989) | (71,198,379) |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | 1,454,336 | 3,942,157 | (5,288,742) |
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | (15,395,414) | (30,884,832) | (76,487,121) |
Parent Company | Reportable Legal Entities | |||
PARENT COMPANY CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | |||
Equity in (loss) earnings of subsidiaries, VIEs and VIEs' subsidiaries | (13,721,974) | (28,512,556) | (35,994,910) |
General administrative expense and others | (3,129,090) | (4,714,433) | (6,013,633) |
Impairment on long-term investments | (1,600,000) | (29,189,836) | |
NET (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | (16,851,064) | (34,826,989) | (71,198,379) |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment | 1,454,319 | 3,942,157 | (5,288,742) |
COMPREHENSIVE (LOSS) ATTRIBUTABLE TO AKSO'S SHAREHOLDERS | $ (15,395,414) | $ (30,884,832) | $ (76,487,121) |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) | $ (16,851,064) | $ (34,826,989) | $ (71,198,379) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Impairment on long-term investments | 0 | 1,600,000 | 29,189,836 |
Share-based compensation | 391,625 | 55,468 | 347,466 |
Changes in operating assets and liabilities: | |||
Prepayments and other assets | (506,821) | (112,562) | 109,106 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (8,628,371) | 10,058,470 | (58,278,734) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (19,963,860) | (662) | 12,775,363 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from private placement | 10,017,200 | ||
Exercise of share options | 5 | 281,617 | |
Repurchase of ordinary shares | (2,667,902) | ||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 34,781,117 | (9,037,223) | (1,552,185) |
NET INCREASE (DECREASE) IN CASH | 6,796,603 | 4,203,511 | (46,446,920) |
CASH-beginning of year | 15,128,719 | 6,668,104 | |
CASH-end of year | 21,925,322 | 15,128,719 | 6,668,104 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for income tax | 38,616 | 9,764 | 3,209,378 |
Cash paid for interest | 676,894 | 2,114,388 | 2,413,014 |
Parent Company | Reportable Legal Entities | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) | (16,851,064) | (34,826,989) | (71,198,379) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in loss of subsidiaries, VIEs and VIEs' subsidiaries | 13,721,974 | 28,512,556 | 35,994,910 |
Impairment on long-term investments | 1,600,000 | 29,189,836 | |
Share-based compensation | 391,625 | 55,468 | 347,466 |
Changes in operating assets and liabilities: | |||
Prepayments and other assets | 154,654 | (154,653) | 344,195 |
Accrued expenses and other current liabilities | 101,207 | (40,618) | 184,258 |
Interest payments on unsecured senior notes and short-term bank loan | (676,894) | (2,114,388) | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (3,158,498) | (6,968,624) | (5,137,714) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Increase in investment in subsidiaries, VIEs and VIE's subsidiaries | (1,000,000) | ||
Purchase of long-term investments | (14,594,918) | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (15,594,918) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from private placement | 10,017,200 | ||
Exercise of share options | 3 | 281,616 | |
Principal payments on unsecured senior notes | (10,000,000) | (10,000,000) | |
Loan to subsidiaries, VIEs and VIE's subsidiaries | (337,695) | ||
Repayment from subsidiaries, VIEs and VIE's subsidiaries | 11,738,667 | ||
Repurchase of ordinary shares | (2,667,902) | ||
Proceeds from related party | 2,000,000 | 5,004,290 | |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 1,679,505 | 6,742,960 | (2,386,286) |
NET INCREASE (DECREASE) IN CASH | (1,478,993) | (225,664) | (23,118,918) |
CASH-beginning of year | 1,483,484 | 1,709,148 | 24,828,066 |
CASH-end of year | $ 4,491 | 1,483,484 | 1,709,148 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for interest | $ 2,114,388 | $ 2,413,014 |