| Accounting Policies, by Policy (Policies) | 6 Months Ended |
| Sep. 30, 2023 |
| Accounting Policies [Abstract] | |
| Basis of presentation | Basis of presentation The accompanying unaudited
interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange
Commission (“SEC”), regarding financial reporting, and include all normal and recurring adjustments that management of the
Company considers necessary for a fair presentation of its financial position and operating results. The results of operations for the
six months ended September 30, 2023 are not necessarily indicative of results to be expected for any other interim period or for the full year
of 2023. 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. All consolidated financial
statements and notes to the consolidated financial statements are presented in United States dollars (“US Dollar” or “US$”
or “$”). |
| Basis of consolidation | Basis of consolidation The accompanying
unaudited condensed 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
social E-commerce 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 social E-commerce business have been reclassified in the accompanying consolidated financial statements
as discontinued operations for all the periods presented. Assets and liabilities of the social E-commerce business were reclassified separately
from other assets and liabilities of the Company on the consolidated balance sheets. Refer to Note 1 and Note 3. |
| Consolidated VIEs | 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. In May 2023, the Company completed the disposal of its social E-commerce
business, which was operated by the consolidated VIEs. As a result, the following financial statement
amounts and balances of the consolidated VIEs were included in net income (loss) from discontinued operation in the accompanying consolidated
statements of operations and comprehensive (loss) income and assets/liabilities held for sale in consolidated balance sheet.
As of As of
September 30, March 31,
USD USD
Current Assets:
Cash and cash equivalents — 678,691
Accounts receivable, net — 10,062
Prepayments and other assets — 43,779
Amounts due from related parties — 26,206,288
Total Current Assets — 26,938,820
Property, equipment and software, net — 28,698
Total Assets — 26,967,518
Current Liabilities
Accrued expenses and other current liabilities — 32,430
Taxes payable — (12,624 )
Total Current Liabilities — 19,806
Total Liabilities — 19,806 For the Six Months Ended 2023 2022 USD USD Net revenues 698 17,710 Net loss 3,905 (281,150 )
For Six Months Ended
2023 2022
USD USD
Net cash provided by (used in) operating activities — (295,448 )
Net cash provided by (used in) investing activities — —
Net cash provided by (used in) financing activities — (1,263,206 ) |
| Share-based compensation | 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. |
| Recent Accounting Pronouncements | As a result, the following financial statement
amounts and balances of the consolidated VIEs were included in net income (loss) from discontinued operation in the accompanying consolidated
statements of operations and comprehensive (loss) income and assets/liabilities held for sale in consolidated balance sheet.
As of As of
September 30, March 31,
USD USD
Current Assets:
Cash and cash equivalents — 678,691
Accounts receivable, net — 10,062
Prepayments and other assets — 43,779
Amounts due from related parties — 26,206,288
Total Current Assets — 26,938,820
Property, equipment and software, net — 28,698
Total Assets — 26,967,518
Current Liabilities
Accrued expenses and other current liabilities — 32,430
Taxes payable — (12,624 )
Total Current Liabilities — 19,806
Total Liabilities — 19,806 For the Six Months Ended 2023 2022 USD USD Net revenues 698 17,710 Net loss 3,905 (281,150 )
For Six Months Ended
2023 2022
USD USD
Net cash provided by (used in) operating activities — (295,448 )
Net cash provided by (used in) investing activities — —
Net cash provided by (used in) financing activities — (1,263,206 ) 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 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 periods ended September 30, 2023 and March 31, 2023. 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 have been reported
separately from the income and expenses from continuing operations and prior periods have been presented on a reclassified 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
social E-commerce 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 social E-commerce 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 six months ended September 30, 2023 and 2022, the total amount of incentives was nil
● Sales of medical devices Since February 2022, through
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. Since April 2022, through
its subsidiary Qingdao Akso engaged in the sales of medical devices such as cardioverter-defibrillators and anesthesia laryngoscope in
the market of China. Qingdao Akso purchased devices in quantity and distributes products primarily to medical products dealers or end-users.
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 For the six months ended September 30, 2023, all of the Company’s
revenue was generated from the PRC and for the six months ended September 30, 2022, the Company’s revenue were generated from US
and PRC. The following table illustrates the disaggregation of revenue:
For the Six Months Ended
2023 2022
USD USD
Revenue
Revenue from medical devices 894,768 11,858,313
Total revenues 894,768 11,858,313
Tax and surcharges (1,185 ) (1,231 )
Net Revenues 893,583 11,857,082 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 are
mainly receivables from sales of medical devices business, 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 defibrillators and anesthesia laryngoscope, 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 September 30,
2023 and March 31, 2023, the Company determined that no allowance was necessary. Contract liabilities Contract liabilities on uncompleted
contracts represent the amounts of cash collected from clients, billings to clients on contracts in advance of work performed and revenue
recognized. The majority of these amounts are expected to be earned within twelve months and are classified as current liabilities. 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 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 six months ended September
30, 2023 and 2022, the advertising and promotion expense was nil 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 September
30, 2023. 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 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 16). 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 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 six months ended September 30, 2023 and 2022, 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 September 30, 2023 and March 31,
2023, 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 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:
September 30, March 31,
2023 2023
USD USD
We Healthy 108,065 114,212 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 The reporting currency of
the Company is the U.S. 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.”), and 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.
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 condensed consolidated financial statements.
For the Six Months Ended
2023 2022
US Exchange Rate
Period-end RMB 7.2960 7.1135
Period average RMB 7.1287 6.7312 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$ 9,153,688 and US$7,876,767 as of September 30, 2023 and March 31, 2023, 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 September 30, 2023, 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$68,531) at each bank. As of September 30, 2023, the total amount not covered by issuance in the
PRC was US$ 9,085,157. 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 September 30, 2023, 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 September
30, 2023, no cash balance maintained at financial institutions in US was subject to credit risk. 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 six months ended
September 30, 2023, two customers accounted for 57.8% and 30.7% of the Company’s total revenues. For the six months ended September
30, 2022, three customers accounted for 62.8%, 11.3% and 10.3% of the Company’s total revenues. As of September 30, 2023, two customers
accounted for 83.1% and 16.9% of the Company’s accounts receivable. As of March 31, 2023, two customers accounted for 82.5% and
16.5% of the Company’s carrying amount of accounts receivable. Vendor concentration risk For the six months ended
September 30, 2023, one vendor accounted for 100% of the Company’s purchase of medical devices business. For the six months ended
September 30, 2022, one vendor accounted for 100% of the Company’s purchase of medical devices business started in April 2022.There
was no vendor of the Company that accounted for greater than 10% of the Company’s carrying amount of accounts payable as of September
30,2023 and March 31, 2023. Recent Accounting Pronouncements There are no 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. |
| Revenue recognition | For the Six Months Ended 2023 2022 USD USD Net revenues 698 17,710 Net loss 3,905 (281,150 )
For Six Months Ended
2023 2022
USD USD
Net cash provided by (used in) operating activities — (295,448 )
Net cash provided by (used in) investing activities — —
Net cash provided by (used in) financing activities — (1,263,206 ) 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 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 periods ended September 30, 2023 and March 31, 2023. 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 have been reported
separately from the income and expenses from continuing operations and prior periods have been presented on a reclassified 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
social E-commerce 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 social E-commerce 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 six months ended September 30, 2023 and 2022, the total amount of incentives was nil
● Sales of medical devices Since February 2022, through
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. Since April 2022, through
its subsidiary Qingdao Akso engaged in the sales of medical devices such as cardioverter-defibrillators and anesthesia laryngoscope in
the market of China. Qingdao Akso purchased devices in quantity and distributes products primarily to medical products dealers or end-users.
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 For the six months ended September 30, 2023, all of the Company’s
revenue was generated from the PRC and for the six months ended September 30, 2022, the Company’s revenue were generated from US
and PRC. The following table illustrates the disaggregation of revenue:
For the Six Months Ended
2023 2022
USD USD
Revenue
Revenue from medical devices 894,768 11,858,313
Total revenues 894,768 11,858,313
Tax and surcharges (1,185 ) (1,231 )
Net Revenues 893,583 11,857,082 |
| 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 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 periods ended September 30, 2023 and March 31, 2023. |
| 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 have been reported
separately from the income and expenses from continuing operations and prior periods have been presented on a reclassified 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
social E-commerce 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 social E-commerce business have been reclassified in the accompanying consolidated financial statements
as discontinued operations for all the periods presented. |
| 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 sales of medical devices business, 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 defibrillators and anesthesia laryngoscope, 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 September 30,
2023 and March 31, 2023, the Company determined that no allowance was necessary. |
| Contract liabilities | Contract liabilities Contract liabilities on uncompleted
contracts represent the amounts of cash collected from clients, billings to clients on contracts in advance of work performed and revenue
recognized. The majority of these amounts are expected to be earned within twelve months and are classified as current liabilities. |
| 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 |
| 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 six months ended September
30, 2023 and 2022, the advertising and promotion expense was nil |
| 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 September
30, 2023. 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 16). |
| 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 six months ended September 30, 2023 and 2022, 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 September 30, 2023 and March 31,
2023, 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:
September 30, March 31,
2023 2023
USD USD
We Healthy 108,065 114,212 |
| 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 reporting currency of
the Company is the U.S. 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.”), and 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.
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 condensed consolidated financial statements.
For the Six Months Ended
2023 2022
US Exchange Rate
Period-end RMB 7.2960 7.1135
Period average RMB 7.1287 6.7312 |
| 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$ 9,153,688 and US$7,876,767 as of September 30, 2023 and March 31, 2023, 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 September 30, 2023, 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$68,531) at each bank. As of September 30, 2023, the total amount not covered by issuance in the
PRC was US$ 9,085,157. 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 September 30, 2023, 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 September
30, 2023, no cash balance maintained at financial institutions in US was subject to credit risk. 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 six months ended
September 30, 2023, two customers accounted for 57.8% and 30.7% of the Company’s total revenues. For the six months ended September
30, 2022, three customers accounted for 62.8%, 11.3% and 10.3% of the Company’s total revenues. As of September 30, 2023, two customers
accounted for 83.1% and 16.9% of the Company’s accounts receivable. As of March 31, 2023, two customers accounted for 82.5% and
16.5% of the Company’s carrying amount of accounts receivable. Vendor concentration risk For the six months ended
September 30, 2023, one vendor accounted for 100% of the Company’s purchase of medical devices business. For the six months ended
September 30, 2022, one vendor accounted for 100% of the Company’s purchase of medical devices business started in April 2022.There
was no vendor of the Company that accounted for greater than 10% of the Company’s carrying amount of accounts payable as of September
30,2023 and March 31, 2023. |
