Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Feb. 15, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Senmiao Technology Ltd | |
Entity Central Index Key | 1,711,012 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | AIHS | |
Entity Common Stock, Shares Outstanding | 25,879,400 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 9,291,719 | $ 11,141,566 |
Accounts receivable | 88,555 | 0 |
Prepayments, receivables and other assets | 2,118,542 | 70,421 |
Escrow receivable due within one year | 600,000 | 0 |
Due from a related party | 66,453 | 0 |
Total Current Assets | 12,165,269 | 11,211,987 |
Property and equipment, net | 63,930 | 8,872 |
Other Assets | ||
Intangible assets, net | 1,556,920 | 1,953,223 |
Escrow receivable | 0 | 1,200,000 |
Deposits for intangible assets | 416,112 | 0 |
Total Assets | 14,202,231 | 14,374,082 |
Current Liabilities | ||
Borrowings from financial institutions | 213,877 | 0 |
Advances from customers | 44,901 | 0 |
Accrued expenses and other liabilities | 1,071,516 | 404,604 |
Due to stockholders | 1,054,025 | 1,090,808 |
Due to related parties and affiliates | 1,286,786 | 0 |
Total Current Liabilities | 3,671,105 | 1,495,412 |
Borrowings from financial institutions, noncurrent | 227,985 | 0 |
Total Liabilities | 3,899,090 | 1,495,412 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 25,879,400 shares issued and outstanding at December 31, 2018 and March 31, 2018) | 2,588 | 2,588 |
Additional Paid-in capital | 23,657,407 | 23,611,512 |
Accumulated deficit | (12,973,371) | (10,481,669) |
Accumulated other comprehensive loss | (386,524) | (253,761) |
Total Stockholders' Equity | 10,300,100 | 12,878,670 |
Noncontrolling interests | 3,041 | 0 |
Total Equity | 10,303,141 | 12,878,670 |
Total Liabilities and Equity | $ 14,202,231 | $ 14,374,082 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 25,879,400 | 25,879,400 |
Common Stock, Shares, Outstanding | 25,879,400 | 25,879,400 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 209,857 | $ 152,538 | $ 406,391 | $ 335,498 |
Gross revenues | 209,857 | 152,538 | 406,391 | 335,498 |
Operating expenses | ||||
Selling, general and administrative expenses | (926,358) | (288,620) | (2,681,078) | (960,349) |
Amortization of intangible assets | (60,488) | (165,206) | (233,576) | (488,210) |
Total operating expenses | (986,846) | (453,826) | (2,914,654) | (1,448,559) |
Loss from operations | (776,989) | (301,288) | (2,508,263) | (1,113,061) |
Other income, net | 14,936 | 71 | 25,841 | 1,921 |
Interest expense | (6,239) | 0 | (6,239) | 0 |
Net Loss | (768,292) | (301,217) | (2,488,661) | (1,111,140) |
Net income attributable to noncontrolling interests | (3,041) | 0 | (3,041) | 0 |
Net loss attributable to stockholders | (771,333) | (301,217) | (2,491,702) | (1,111,140) |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustment | (26,063) | 207,125 | (132,763) | 537,173 |
Comprehensive Loss | (797,396) | (94,092) | (2,624,465) | (573,967) |
Less: total comprehensive income attributable to noncontrolling interests | (3,041) | 0 | (3,041) | 0 |
Total comprehensive loss attributable to stockholders | $ (794,355) | $ (94,092) | $ (2,621,424) | $ (573,967) |
Weighted average number of common stock | ||||
Basic and diluted | 25,879,400 | 22,500,000 | 25,879,400 | 21,669,455 |
Loss per share | ||||
Basic and diluted loss for the period | $ (0.03) | $ (0.01) | $ (0.10) | $ (0.05) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (2,488,661) | $ (1,111,140) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation of property and equipment | 8,667 | 2,615 |
Amortization of intangible assets | 233,576 | 488,210 |
Shares issued to three individuals for consulting services | 0 | 99,550 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (65,861) | 0 |
Prepayments, receivables and other assets | (256,244) | 6,797 |
Due from a related party | (1,441) | 107,141 |
Accrued expenses and other liabilities | 107,872 | (10,818) |
Net Cash Used in Operating Activities | (2,462,092) | (417,645) |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (28,241) | (412) |
Purchases of intangible assets | (421,022) | 0 |
Net Cash Used in Investing Activities | (449,263) | (412) |
Cash Flows From Financing Activities: | ||
Proceeds borrowed from stockholders | 1,974,617 | 335,092 |
Repayments to stockholders | (1,900,000) | 0 |
Release of escrow receivable | 600,000 | 0 |
Proceeds borrowed from related parties and affiliates | 290,183 | 0 |
Repayments of noncurrent borrowings from financial institutions | (16,929) | 0 |
Cash acquired from acquisition | 213,644 | 0 |
Net Cash Provided by Financing Activities | 1,161,515 | 335,092 |
Effect of exchange rate changes on cash and cash equivalents | (100,007) | 6,875 |
Net decrease in cash and cash equivalents | (1,849,847) | (76,090) |
Cash and cash equivalents at beginning of period | 11,141,566 | 161,292 |
Cash and cash equivalents at end of period | 9,291,719 | 85,202 |
Supplemental Cash Flow Information | ||
Cash paid for interest expense | 6,239 | 0 |
Cash paid for income tax | 0 | 0 |
Non-cash Transaction in Investing and Financing Activities | ||
Unpaid property and equipment purchases | 0 | 0 |
IPO expenses paid by the Company's stockholders | $ 70,687 | $ 0 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTITIVIES | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND PRINCIPAL ACTITIVIES Senmiao Technology Limited (the “Company”) is a U.S. holding company incorporated in the State of Nevada on June 8, 2017. The Company operate its businesses in two segments: (i) online lending services through its variable interest entity (“VIE”), Sichuan Senmiao Ronglian Technology Co., Ltd. (“Sichuan Senmiao”), in the People’s Republic of China (“PRC” or “China”) which facilitates loan transactions between Chinese investors and individual and small-to-medium-sized enterprise (“SME”) borrowers; and (ii) automobile transaction and financing services focusing on the ride-hailing industry in China through its majority owned subsidiary, Hunan Ruixi Financial Leasing Co., Ltd. (“Hunan Ruixi”), a PRC limited liability company and its VIE, Sichuan Jinkailong Automobile Leasing Co., Ltd. (“Jinkailong”). The Company’s executive offices are located in Chengdu, Sichuan province, China. The Company undertakes substantially all of its business activities in China through WFOE (as defined below), Hunan Ruixi. Jinkailong and Sichuan Senmiao. On September 25, 2016, Sichuan Senmiao acquired a peer-to-peer (“P2P”) platform (including website, internet content provider license, operating systems, servers, and management system) from Sichuan Chenghexin Investment and Asset Management Co., Ltd. On July 28, 2017, the Company established a wholly-owned subsidiary, Sichuan Senmiao Zecheng Business Consulting Co., Ltd. (“WFOE”) in China. Sichuan Senmiao was established in China in June 2014. On September 18, 2017, the Company entered into a series of agreements (“VIE Agreements”) with Sichuan Senmiao and its equity holders (the “Sichuan Senmiao Shareholders”) through WFOE to obtain control and became the primary beneficiary of Sichuan Senmiao (the “Restructuring”). In connection with the Restructuring, as partial consideration for the Sichuan Senmiao Shareholders’ commitment to perform their obligations under the VIE Agreements, the Company issued an aggregate of 45,000,000 shares of its common stock to the Sichuan Senmiao Shareholders pursuant to certain subscription agreements dated September 18, 2017. On November 21, 2018, the Company entered into an Investment and Equity Transfer Agreement (the “Investment Agreement”) with Hunan Ruixi and all the shareholders of Hunan Ruixi (“Hunan Ruixi Shareholders”), pursuant to which the Company acquired from the Hunan Ruixi Shareholders an aggregate of 60% of the equity interest of Hunan Ruixi for no consideration. The Company closed the acquisition on November 22, 2018 and made a working capital contribution of $6,000,000 to Hunan Ruixi, representing 60% of its registered capital, in accordance with the Investment Agreement. Hunan Ruixi holds a financial leasing license and anticipates to engage in automobile financial leasing services and automobile sales in the first half of 2019. Hunan Ruixi also controls Jinkailong through its 35% equity interest and a voting agreement with Jinkailong’s other shareholders. Jinkailong is an automobile transaction and financing services company in China, which primarily targets the drivers in the ride-hailing service sector and facilitates automobile sales and financing transactions for its clients and provides relevant after- transaction services to them. The following diagram illustrates the Company’s corporate structure, including its subsidiaries, and VIEs, as of the date of these financial statements: VIE Agreements with Sichuan Senmiao According to the VIE Agreements, Sichuan Senmiao is obligated to pay WFOE service fees equal to its net income. Sichuan Senmiao’s entire operations are controlled by the Company. There are no unrecognized revenue-producing assets that are held by Sichuan Senmiao. Each of the VIE Agreements is described in details below: Equity Interest Pledge Agreement WFOE, Sichuan Senmiao and the Sichuan Senmiao Shareholders entered into an Equity Interest Pledge Agreement, pursuant to which the Sichuan Senmiao Shareholders pledged all of their equity interest in Sichuan Senmiao to WFOE in order to guarantee the performance of Sichuan Senmiao’s obligations under the Exclusive Business Cooperation Agreement as described below. During the term of the pledge, WFOE is entitled to receive any dividends declared on the pledged equity interest of Sichuan Senmiao. The Equity Interest Pledge Agreement terminates when all contractual obligations under the Exclusive Business Cooperation Agreement have been fully performed. Exclusive Business Cooperation Agreement Pursuant to an Exclusive Business Cooperation Agreement entered by and among the Company, WFOE, Sichuan Senmiao and each of Sichuan Senmiao Shareholders, WFOE will provide Sichuan Senmiao with complete technical support, business support and related consulting services for 10 years ended September 18, 2027. The Sichuan Senmiao Shareholders and Sichuan Senmiao will not engage any third party for the same or similar consultation services without WFOE’s prior consent. Further, the Sichuan Senmiao Shareholders are entitled to receive an aggregate of 20,250,000 shares of common stock of the Company under the Exclusive Business Cooperation Agreement. WFOE may terminate the Exclusive Business Cooperation Agreement at any time upon prior written notice to Sichuan Senmiao and the Sichuan Senmiao Shareholders. Exclusive Option Agreement Pursuant to an Exclusive Option Agreement entered by and among WFOE, Sichuan Senmiao and the Sichuan Senmiao Shareholders, the Sichuan Senmiao Shareholders have granted WFOE an exclusive option to purchase at any time their equity interests in Sichuan Senmiao at a purchase price equal to the capital paid by the Sichuan Senmiao Shareholders in whole or at a pro-rated price for any partial purchase. The Exclusive Option Agreement terminates after 10 years ending September 18, 2027 but can be renewed by WFOE at its discretion. Powers of Attorney Each of the Sichuan Senmiao Shareholders has signed a power of attorney (the “Power of Attorney”), pursuant to which, each of the Sichuan Senmiao Shareholders has authorized WFOE to act as his or her exclusive agent and attorney with respect to all rights of such individual as a shareholder of Sichuan Senmiao, including but not limited to: (a) attending shareholders’ meetings; (b) exercising all the shareholder’s rights that shareholders are entitled to under PRC laws and the Articles of Association of Sichuan Senmiao, including but not limited to voting, sale, transfer, pledge and disposition of the equity interests of Sichuan Senmiao,; and (c) designating and appointing the legal representative, chairperson, director, supervisor, chief executive officer and other senior management members of Sichuan Senmiao. The Power of Attorney has the same term as the Exclusive Option Agreement. Timely Report Agreement The Company and Sichuan Senmiao entered into a Timely Report Agreement, pursuant to which, Sichuan Senmiao agrees to make its officers and directors available to the Company and promptly provide all information required by the Company so that the Company can make necessary filings to the U.S. Securities and Exchange Commission (“SEC”) and other regulatory reports in a timely fashion. VIE Agreements with Sichuan Senmiao (continued) The Company has concluded that it should consolidate the financial statements with Sichuan Senmiao because it is Sichuan Senmiao’s primary beneficiary based on the Power of Attorney from the Sichuan Senmiao Shareholders, who assigned their rights as shareholders of Sichuan Senmiao to WFOE, the Company’s wholly-owned subsidiary. These rights include, but are not limited to, attending shareholders’ meetings, voting on matters submitted for shareholder approval and appointing legal representatives, directors, supervisors and senior management of Sichuan Senmiao. As a result, the Company, through its WFOE, is deemed to hold all of the voting equity interests in Sichuan Senmiao. Pursuant to Exclusive Business Cooperation Agreement, WFOE shall provide complete technical support, business support and related consulting services for 10 years. Though not explicit in the VIE Agreements, the Company may provide financial support to Sichuan Senmiao to meet its working capital requirements and capitalization purposes. The terms of the VIE Agreements and the Company’s plan to provide financial support to Sichuan Senmiao were considered in determining that the Company is the primary beneficiary of Sichuan Senmiao. Accordingly, the financial statements of Sichuan Senmiao are consolidated in the Company’s consolidated financial statements. The Restructuring constituted a reorganization. As all of the above mentioned companies are under common control, this series of transactions are considered as a reorganization of the entities under common control at carrying value and the consolidated financial statements have been prepared as if the reorganization had occurred retroactively. The consolidated financial statements have been prepared as if the existing corporate structure had been in existence throughout all periods and the reorganization had occurred as of the beginning of the earliest period presented in the accompanying consolidated financial statements. Voting Agreement with Jinkailong’s Other Shareholders In addition to obtaining 35% equity interests in Jinkailong, Hunan Ruixi, Jinkailong and other Jinkailong’s shareholders holding an aggregate of 65% equity interests entered into a voting agreement, as amended (the “Voting Agreement”), pursuant to which all other Jinkailong’s shareholders will vote in concert with Hunan Ruixi on all fundamental corporate transactions in the event of a disagreement for a period of 20 years, ending on August 25, 2038. The Company has concluded that it should consolidate the financial statements with Jinkailong because it is Jinkailong’s primary beneficiary based on the Voting Agreement. Though not explicit in the business cooperation agreement by and among Jinkailong, Hunan Ruixi, and other shareholders of Hunan Ruixi, the Company may provide financial support to Jinkailong to meet its working capital requirements and capitalization purposes. The terms of the Voting Agreement and the Company’s plan to provide financial support to Jinkailong were considered in determining that the Company is the primary beneficiary of Jinkailong. Accordingly, the financial statements of Jinkailong are consolidated in the Company’s consolidated financial statements. Total assets and total liabilities of the Company’s VIEs included in the Company’s unaudited condensed consolidated financial statements as of December 31, 2018 and March 31, 2018 are as follows: December 31, 2018 March 31, 2018 (unaudited) Total assets $ 10,984,820 $ 10,425,056 Total liabilities $ 5,533,128 $ 1,413,485 Net revenue, net income, operating, investing and financing cash flows of the VIEs that were included in the Company's consolidated financial statements for the nine months ended , 2018 and 2017 are as follows: For the Nine Months Ended December 31, 2018 2017 (unaudited) (unaudited) Net revenue $ 406,391 $ 335,498 Net loss $ (918,449 ) $ (1,011,590 ) Net Cash Used in Operating Activities $ (1,151,386 ) $ (417,645 ) Net Cash Used in Investing Activities $ (7,623 ) $ (412 ) Net Cash Provided by Financing Activities $ 2,355,660 $ 335,092 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The interim unaudited condensed consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited interim financial information as of December 31, 2018 and for the three and nine months ended December 31, 2018 and 2017 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended March 31, 2018, which was filed with the SEC on June 29, 2018. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of December 31, 2018, its unaudited results of operations for the three and nine months ended December 31, 2018 and 2017, and its unaudited cash flows for the nine months ended December 31, 2018 and 2017, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. (b) Basis of consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the WFOE and Ruixi. All inter-company accounts and transactions have been eliminated in consolidation. (c) Foreign currency translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates on the date of the balance sheet. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company and its subsidiaries is U.S. dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$, because that is the primary and functional currency where all entities operate. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, 2018 March 31, 2018 Balance sheet items, except for equity accounts 6.8776 6.2807 For the Nine Months Ended December 31, 2018 2017 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.7008 6.7146 (d) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The following are some of the areas requiring significant judgments and estimates: determinations of the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts, valuation of deferred tax assets and estimated fair value used in business acquisition. (e) Fair values of financial instruments Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of December 31, 2018 and March 31, 2018, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, accounts receivable, receivables and other assets, escrow receivables, due from a related party, borrowings from financial institutions, other liabilities, due to stockholders and due to related parties, which approximate their fair values because of the short-term nature of these instruments, and noncurrent liabilities of borrowings from financial institutions, which approximate their fair values because of the (f) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 "Business Combinations." The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers and liabilities incurred by the Company and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated income statements. For the Company's non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to noncontrolling interests are also recorded as noncontrolling interests in the Company's consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. (g) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker which is comprised of certain members of the Company's management team. Historically, the Company had one single operating and reportable segment, namely the provision of an online lending services. During the three months ended December 31, 2018, the Company acquired Hunan Ruixi and its VIE and evaluated how the CODM manages the businesses of the Company to maximize efficiency in allocating resources and assessing performance. Consequently, the Company presents two operating and reportable segments as set forth in Notes 1 and 14. (h) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. (i) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2018, the Company determined no allowance for doubtful accounts was necessary for accounts receivable. (j) Property and equipment Property and equipment primarily consists of computer equipment, which is stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobile 4 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three and nine months ended December 31, 2018 and 2017, there was no impairment of property and equipment. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated income statements. (k) Intangible assets Purchased intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Platform 7 years Customer relationship 10 years Software 5-7 years Separately identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible assets is based on the amount by which the carrying amount of the assets exceeds the fair value of the assets. For the three and nine months ended December 31, 2018 and 2017, there was no impairment charge against intangible assets. (l) Loss per share Basic loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of outstanding shares of common stock, adjusted for outstanding shares of common stock that are subject to repurchase. For the calculation of diluted loss per share, net loss attributable to stockholders for basic loss per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net loss per share if their inclusion is anti-dilutive. (m) Revenue recognition The Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”), in the first quarter of 2018 using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Company's unaudited condensed consolidated financial statements upon adoption of ASC 606. As of December 31, 2018, the Company had outstanding contracts for automobile transaction and financing services amounting to $1,533,754, of which $764,575 is expected to be completed within 12 months after December 31, 2018, and $769,179 were expected to be completed over 12 months after December 31, 2018. During the three and nine months ended December 31, 2018 and 2017, the Company generated revenues primarily from transaction and service fees earned from online lending services, facilitation fees earned from third party sales teams or automobile purchasers for facilitation of sales of automobiles, service fees earned from automobile purchasers throughout the purchase process, management and guarantee fees provided for automobile purchasers and service fees earned from other automobile transaction related services. The following table sets forth the disaggregation of revenues for the three and nine months ended December 31, 2018 and 2017: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Online Lending Services - Transaction fees $ 80,564 $ 141,014 $ 261,450 $ 307,142 - Service fees 10,557 11,524 26,205 28,356 Automobile Transaction and Financing Services - Service fees from automobile purchase services 70,654 - 70,654 - - Facilitation fees from automobile transaction 16,424 - 16,424 - - Service fees from management and guarantee services 21,332 - 21,332 - - Other Service fees 10,326 - 10,326 - $ 209,857 $ 152,538 $ 406,391 $ 335,498 Online Lending Services Transaction fees – Transaction fees are paid by borrowers to the Company for the work the Company performs through its platform. The amount of these fees is based upon the loan amount, maturity and the credit grade of borrowers. The fees charged to borrowers are paid upon (i) disbursement of the proceeds for loans which accrue interest on a monthly basis or (ii) full payment of principal and interest of loans which accrue interest on a daily basis. These fees are non-refundable upon the issuance of loan. Service fees — The Company charges investors service fees on their actual investment payments. The Company generally receives the service fees upon the investors’ receipt of their investment returns. The Company recognizes the revenue when loans have been repaid and investors have received their investment income. Automobile Transaction and Financing Services Facilitation fee from automobile transaction – Facilitation fees from automobile purchase services are paid by our customers including third-party sales teams or the automobile purchasers for the facilitation of the sales of automobiles. The Company attracts automobile purchasers through third-party sales teams or its own sales department. For the sales facilitated between third-party sales teams and automobile purchasers, the Company charges the fees to the third-party sales teams, which derived from the commission paid by the automobile purchasers to the third-party sales teams. The Company recognizes the revenue when the titles are transferred to the owners. Relating to sales facilitated between automobile purchasers and dealers, the Company charges the fees to the automobile purchasers. The Company recognizes the revenue when the titles are transferred to the owners. The amount of the fee is based on the type of automobile and negotiation with each sales team or automobile purchaser. The fees charged to third-party sales teams or automobile purchasers are paid when the transactions are consummated. These fees are non-refundable upon the delivery of automobiles. Service fees from automobile purchase services– Services fees from automobile purchase services are paid by automobile purchasers for a series of the services throughout the purchase process such as registration of license plates and permits from the relevant government authorities, insurance referral, and assistance with applications to financial institutions to finance the purchase. The amount of these fees is based on the total quoted price of the automobiles and relevant services provided, actual expenditure to fulfill those services and other factors of the automobiles. The Company recognizes the revenue when all the services are completed and the automobile is delivered to the purchaser. Service fees from management and guarantee services – A majority of the Company’s customers are the drivers who provide ride-hailing services over an internet service platform, and such drivers are required to sign affiliation agreements with the Company in order for them to be able to provide such services through the online platform. The Company will provide them with management services during the affiliation period. Service fees for management and guarantee services are paid by automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. In addition, the Company provides guarantee on the lease/loan payments (including principal and interest) of certain automobile purchasers under the financing agreements with financial institutions during the affiliation period. The Company recognizes the revenue over the affiliation period when performance obligations are completed. (n) Selling, general and administrative expenses Selling, general and administrative expenses primarily consisted of employee salaries and benefits, office rental expenses, travel expenses, customer verification and credit assessment costs and platform maintenance costs. (o) Income taxes The Company accounts for income taxes in accordance with the U.S. GAAP for income taxes. Under the asset and liability method as required by U.S. GAAP, the deferred income tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision or benefits for income taxes consists of tax estimated from taxable income plus deferred tax expense (benefits) if applicable. Deferred tax is calculated using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forward. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. 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. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Company did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of December 31, 2018 and March 31, 2018. As of December 31, 2018, the tax years ended December 31, 2013 through 2017 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. (p) Comprehensive loss Comprehensive loss includes net loss and foreign currency adjustments. Comprehensive loss is reported in the consolidated statements of operations and comprehensive loss. Accumulated other comprehensive loss, as presented on the unaudited condensed consolidated balance sheets are the cumulative foreign currency translation adjustments. As of December 31, 2018, and March 31, 2018, the balance of accumulated other comprehensive loss were $386,524 and $253,761, respectively. (q) Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases expense and is included in the unaudited condensed consolidated statements of operations on a straight-line basis over the term of the leases . The Company had no capital leases for the three and nine months ended December 31, 2018 and 2017. (r) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amount as of the balance sheet dates. On December 31, 2018, approximately $5,320,000 was deposited with a bank in the United States which is insured by the U.S. government up to $250,000. On December 31, 2018 and March 31, 2018, approximately $3,980,000 and $180,000, respectively, were deposited in financial institutions located in mainland China, which were uninsured by the government authority. To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. In addition, the Company’s business may be influenced by changes in government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation and other factors. b. In measuring the credit risk of guarantee services to automobile purchasers, the Company mainly reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers default their payments for more than three months. Thus, 100% allowances are recorded as a reserve against the balance due from automobile purchasers and may have to provide accrual for additional liabilities. Management also periodically necessary. However, as the Company commenced the automobile transactions and financing services for less than one year, there was no sufficient historic default data and other information to make an estimate on the expected credit losses. Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. As at December 31, 2018, 2) Liquidity risk The Company is also exposed to liquidity risk, which may limit the Company’s ability to access capital resources and have liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the stockholders to obtain short-term funds to meet the liquidity requirements. 3) Foreign currency risk As of December 31, 2018, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $5,320,000 in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significant affected. 4) VIE risk It is possible that the VIE Agreements among Sichuan Senmiao, WFOE, and the Sichuan Senmiao Shareholders would not be enforced in China if the PRC government or courts consider those contracts contravene PRC laws and regulations or otherwise not enforceable for public policy reasons. In the event that the Company were unable to enforce these contractual arrangements, the Company would not be able to exert effective control over the VIE. Consequently, the VIE’s results of operations, assets and liabilities would not be included in the Company’s consolidated financial statements. As a result, the Company’s cash flows, financial position, and operating performance would be materially and adversely affected. The Company’s contractual arrangements with Sichuan Senmiao, WFOE, and the Sichuan Senmiao Shareholders are approved and in place. Management believes that such contracts are enforceable, and considers it is less likely that PRC regulatory authorities with jurisdiction over the Company’s operations and contractual relationships would find the contracts unenforceable. The Company's operations and businesses rely on the operations and businesses of its VIE, which holds certain recognized revenue-producing assets including the platform, customer relationship and goodwill. The VIE also has an assembled workforce, focused on customer verification and credit assessment, the costs of which are expensed as incurred. The Company’s operations and businesses may be adversely impacted if the Company loses the ability to use assets held by its VIE. (s) Recently issued accounting standards The Company adopted ASC 606 in three and nine months ended December 31, 2018 using the modified retrospective approach. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material changes to the Company's unaudited condensed consolidated financial statements upon adoption of ASC 606. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Amendments to the ASC 842 Leases. This update requires the lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for fiscal years and any interim periods within those fiscal years beginning after December 15, 2018. Management is evaluating the effect on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions to its unaudited condensed 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 financial position, statements of operations and cash flows of the Company. |
ACQUISITION OF HUNAN RUIXI AND
ACQUISITION OF HUNAN RUIXI AND ITS VIE | 9 Months Ended |
Dec. 31, 2018 | |
ACQUISITION OF HUNAN RUIXI AND ITS VIE [Abstract] | |
Investment Holdings [Text Block] | 3. ACQUISITION OF HUNAN RUIXI AND ITS VIE On November 21, 2018, the Company entered into the Investment Agreement with Hunan Ruixi and the Hunan Ruixi Shareholders. Pursuant to the Investment Agreement, among other things, the Company acquired from the Hunan Ruixi Shareholders an aggregate of 60% of the outstanding equity interest in Hunan Ruixi for no consideration. The Company closed the acquisition on November 22, 2018 and made a capital contribution of $6 million in Hunan Ruixi, representing 60% of the registered capital of Hunan Ruixi. The Company will be entitled to vote and receive profits based on its equity interest ownership in Hunan Ruixi and the right of first refusal for any issuance of new equity of Hunan Ruixi. The acquisition had been accounted for as a business combination and the results of operations of Hunan Ruixi have been included in the Company's unaudited condensed consolidated financial statements from the acquisition date. The Company made estimates and judgments in determining the fair value of acquired assets and liabilities, based on an independent valuation report and management's experiences with similar assets and liabilities. The following table summarizes the fair values for major classes of assets acquired and liabilities assumed at the date of acquisition: Fair value Net assets acquired (i) $ 45,895 Gain from acquisition of Hunan Ruixi and its subsidiary - Noncontrolling interests (ii) - Total purchase consideration $ - (i) Net assets acquired primarily include cash and cash equivalents of $213,645, other current assets of $1,774,725, property and equipment of $36,384, other current liabilities of $607,558 and borrowings from third parties of $1,439,750. (ii) Fair value of the noncontrolling interests is estimated with reference to the purchase price per share as of the acquisition date. |
PREPAYMENTS, RECEIVABLES AND OT
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS | 9 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Prepayments Receivables And other Assets [Text Block] | 4. PREPAYMENTS, RECEIVABLES AND OTHER ASSETS As of December 31, 2018, and March 31, 2018, the prepayments, receivables and other assets were comprised of the following: December 31, 2018 March 31, 2018 (unaudited) Due from * $ 1,634,168 $ - Deposit 228,138 - Prepaid expenses 127,030 44,861 Loans to employees - 2,718 Others 129,206 22,842 $ 2,118,542 $ 70,421 * The balance due from automobile purchasers represented the payment of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. INTANGIBLE ASSETS, NET As of December 31, 2018, and March 31, 2018, the intangible assets consisted of relationship, platform and software. Useful life December 31, 2018 March 31, 2018 (unaudited) Customer relationship 10 $ 383,159 $ 419,573 Platform 7 4,103,195 4,493,151 Software 5-7 78,050 84,545 Intangible assets 4,564,404 4,997,269 Less: Accumulated amortization (1,180,902 ) (1,043,871 ) Impairment (1,826,582 ) (2,000,175 ) Intangible assets, net $ 1,556,920 $ 1,953,223 Amortization expense totaled $60,488 and $165,206 for the three months ended December 31, 2018 and 2017, respectively. Amortization expense totaled $233,576 and $488,210 for the nine months ended December 31, 2018 and 2017, respectively. The following table sets forth the Company’s amortization expenses for the twelve months ending December 31 of the following years: Amortization expenses Twelve months ending December 31, 2019 $ 303,579 Twelve months ending December 31, 2020 303,579 Twelve months ending December 31, 2021 303,579 Twelve months ending December 31, 2022 303,579 Twelve months ending December 31, 2023 and thereafter 342,604 $ 1,556,920 |
DEPOSITS FOR INTANGIBLE ASSETS
DEPOSITS FOR INTANGIBLE ASSETS | 9 Months Ended |
Dec. 31, 2018 | |
DEPOSITS FOR INTANGIBLE ASSETS [Abstract] | |
Deposits Intangible assets [Text Block] | 6. DEPOSITS FOR INTANGIBLE ASSETS As of December 31, 2018, the balance of deposits for intangible assets of $416,112 represented |
BORROWINGS FROM FINANCIAL INSTI
BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT | 9 Months Ended |
Dec. 31, 2018 | |
BORROWINGS FROM FINANCIAL INSTITUTIONS CURRENT AND NONCURRENT [Abstract] | |
Debt Disclosure [Text Block] | 7. BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT As of December 31, 2018, and March 31, 2018, the balances of borrowings from certain financial institutions are comprised of the following. December 31, 2018 March 31, 2018 (unaudited) Borrowings from financial institutions, current $ 213,877 $ - Borrowings from financial institutions, noncurrent $ 227,985 $ - The borrowings from certain financial institutions represented the difference between the actual proceeds disbursed by the financial institutions to the VIE of Hunan Ruixi and the total principal to be responsible for and repaid by the automobile purchasers. The difference of $441,862 was the remaining balance of over-advanced payments by the financial institutions at December 31, 2018, of which $227,985 to be repaid over a period of 13 to 27 months with interest rates ranging between 6.2% and 8.1% per year. The current portion of $213,877 was classified as current liabilities. The interest expense for the three months and nine months ended December 31, 2018 was $2,993. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 9 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 018 March 31, 2018 (unaudited) Accrued payroll and welfare $ 484,295 $ 195,695 Loan repayments received on behalf of financial institutions (i) 298,660 - Other payable (ii) 112,152 194,943 Accrued insurance expenses 98,583 - Customer deposit 38,071 8,495 Accrued bank charges 20,507 Other tax payable 12,209 5,471 Accrued rental fees 7,039 - $ 1,071,516 $ 404,604 (i) The balance of loan repayments received on behalf of financial institutions represented the loan repayments made by the automobile purchasers to financial institutions through the Company, which has not been paid to the financial institutions as of December 31, 2018. (ii) The balance of other payable represented amount due to suppliers and vendors. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 9 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 9. EMPLOYEE BENEFIT PLAN The Company has made employee benefit contributions in accordance with relevant PRC regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The Company has recorded the contribution in salary and employee charges when incurred. The contributions made by the Company were $26,501 and $11,296 for the three months ended December 31, 2018 and 2017, respectively. The contributions made by the Company were $66,459 and $26,236 for the nine months ended December 31, 2018 and 2017, respectively. As of December 31, 2018, and March 31, 2018, the Company did not make adequate employee benefit contributions in the amount of $294,889 and $150,205. The Company accrued the amount in accrued payroll and welfare. |
EQUITY
EQUITY | 9 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 10. EQUITY Warrants The registration statement relating to the Company’s initial public offering (“IPO”) also included the underwriter’s common stock purchase warrants to purchase 337,940 shares of common stock. Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $4.80 per share and is not exercisable for a period of 180 days from March 16, 2018. As of December 31, 2018, the underwriter has not exercised the warrants. Restricted Stock Units On July 31, 2018, the board of directors of the Company approved the issuance of 5,000 restricted stock units (“RSUs”) to each of the five directors as stock compensation for their services for the Company’s fiscal year ending March 31, 2019. Total RSUs granted to the five directors were 25,000 for an aggregate fair value of $117,750. Pursuant to the Restricted Stock Unit Award Agreements (“Award Agreements”) on August 3, 2018, the RSUs vest in four equal quarterly installments on August 3, 2018, April 1, 2019, July 1, 2019 and October 1, 2019 or in full upon the occurrence of a change in control of the Company, subject to the terms and conditions set forth in the Award Agreements, provided that the director remains in service as a director through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) a change in control and (ii) the director’s cessation as a director of the Company due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the director’s death or disability. As of December 31, 2018, the first installment of RSUs has vested and the Company accounted for the vested RSUs as an addition to both expenses and additional paid-in capital. The fair value of the vested RSUs is calculated at the grant date market price of the Company’s common stock multiplying by the number of vested shares. A summary of RSU activity for the nine months ended December 31, 2018 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Balance of RSUs outstanding at March 31, 2018 - - Grants of 25,000 4.42 Vested (6,250 ) 4.42 Forfeited RSUs (7,500 ) 4.42 Balance of unvested at December 31, 2018 11,250 $ 4.42 Total compensation expense for the three and nine months ended December 31, 2018 was approximately $0 and $27,625, respectively. December 31, 2018 to be expensed over a weighted average period of nine months. Equity Incentive Plan At the 2018 Annual Meeting of Stockholders of the Company (“Annual Meeting”) held on November 8, 2018, the Company’s stockholders approved the Company’s 2018 Equity Incentive Plan for employees, officers, directors and consultants of the Company and its affiliates. A committee consisting of at least two independent directors appointed by the Board or in the absence of such a committee, the Board, will be responsible for the general administration of the Equity Incentive Plan. All Awards granted under the Equity Incentive Plan will be governed by separate award agreements between the Company and the participants. As of the date of this report, no awards have been granted under the plan. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 11. INCOME TAXES The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income taxes. The State of Nevada does not impose any state corporate income tax. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law, which has made significant changes to the Internal Revenue Code. Those changes include, but are not limited to, a U.S. corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the deemed repatriation of cumulative foreign earnings as of December 31, 2017. As the Company has a March 31 fiscal year end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 31.5% for its fiscal year ended March 31, 2018, and 21% for subsequent fiscal years. Accordingly, the Company reevaluated its deferred tax assets on net operating loss carryforward in the U.S and concluded there was no effect on the Company’s income tax expenses as the Company has no deferred tax assets generated since inception. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change in rate has caused the Company to reevaluate all U.S. deferred income tax assets and liabilities for temporary differences and net operating loss carryforwards and recorded one time income tax payable to be paid in 8 years. However, this one-time transition tax has no effect on the Company’s income tax expenses as the Company has no undistributed foreign earnings prior to December 31, 2018, because the Company has cumulative foreign losses as of December 31, 2018. The Company’s net operating loss for the nine months ended December 31, 2018 amounted to approximately $0.88 million. As of December 31, 2018, the Company’s net operating loss carryforward for U.S. income taxes was approximately $1.07 million. The net operating loss carryforward is available to reduce future years’ taxable income through year 2037. Management believes that the realization of the benefit from this loss appears uncertain due to the Company’s operating history. Accordingly, the Company has recorded a 100% valuation allowance on the deferred tax asset to reduce the deferred tax assets to zero on the consolidated balance sheets. As of December 31, 2018, and March 31, 2018, valuation allowances for deferred tax assets were approximately $0.23 million and $0.04 million, respectively. Management reviews the valuation allowance periodically and makes changes accordingly. PRC WFOE and Sichuan Senmiao are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. The EIT rate for companies operating in the PRC is 25%. During the nine months ended December 31, 2018 and 2017, there were no income taxes attributable to the operations in PRC. As of December 31, 2018, and March 31, 2018, the Company had net operating loss carryforwards of $2,948,285 and $1,512,341, respectively, which will expire in 2023. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized. At December 31, 2018 and March 31, 2018, full valuation allowance is provided against the deferred tax assets based upon management’s assessment as to their realization. The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets are as follows: December 31, 2018 March 31, 2018 (unaudited) Net operating loss carryforwards in the PRC $ 737,072 $ 378,085 Net operating loss carryforwards in the U.S. 228,181 43,021 Less: valuation allowance (965,253 ) (421,106 ) $ - $ - The Company evaluates its valuation allowance requirements at the end of each reporting period by reviewing all available evidence, both positive and negative, and considering whether, based on the weight of that evidence, a valuation allowance is needed. When circumstances cause a change in management’s judgement about the realizability of deferred tax assets, the impact of the change on the valuation allowance is generally reflected in net income (loss). The future realization of the tax benefit of an existing deductible temporary difference ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryforward period available under applicable tax law. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 12. RELATED PARTY TRANSACTIONS AND BALANCES 1) Due from a related party As of December 31, 2018, the balance of $66,453 due from a related party represented the amount paid on behalf of the Zhejiang Chemi Car Leasing Co., Ltd., (“Zhejiang Chemi”) for defaulted loan installments 2) Due to stockholders As of December 31, 2018, and March 31, 2018, the balance due to certain stockholders was $1,054,025 and $1,090,808, is unsecured, interest-free and due on demand. 3) Due to related parties and affiliates As of December 31, 2018, the balance of $1,286,786 of 9.1% 4) Related party transactions Management and stockholders of the Company have invested in loans through the platform using their personal funds. The Company received service fees from its management and stockholders in the amount of $74 and $187, respectively, for the three months ended December 31, 2018 and 2017 and $472 and $412, respectively, for the nine months ended December 31, 2018 and 2017. In December 2017, the Company entered into loan agreements with two stockholders, who agreed to grant lines of credit of approximating $955,308 and $159,218, respectively, for five years. The lines of credit are non-interest bearing, effective from January 2017. During the three and nine months ended December 30, 2018, the Company repaid $0 and $500,000, respectively, to one stockholder. During the nine months ended December 31, 2018, the Company paid listing expenses and stamp taxes on behalf of two stockholders who agreed to pay part of the Company’s expenses in connection with its IPO, in the amount of $70,687 and $7,881, respectively. During the three months ended December 31, 2018, the Company has not paid any listing expenses and stamp taxes on behalf of the stockholders. The Company accounted for those expenses as a deduction against the amount due to the stockholders. In the year end March 31, 2017, the Company entered into two office lease agreements with one stockholder, both with the same term from January 1, 2017 to January 1, 2020. For the three months ended December 31, 2018 and 2017, the Company paid $11,278 and $28,857, respectively, to the stockholder for rental expenses. For the nine months ended December 31, 2018 and 2017, the Company paid $69,182 and $85,277, respectively, to the stockholder for rental expenses. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 13. COMMITMENTS AND CONTINGENCIES 1) Lease Commitments During the nine months ended December 31, 2018, the Company terminated five lease agreements for its offices and three apartments expiring through January 20, 2020. No penalties were levied on the termination of the lease agreements. In addition, the Company entered into new lease agreements to lease its offices under seven lease agreements expiring through December 2023 and leased two apartments for management members expiring in April 2019. The following table sets forth the Company’s lease obligations as of December 31, 2018 in future periods: Rental payments Year ending December 31, 2019 $ 300,004 Year ending December 31, 2020 297,694 Year ending December 31, 2021 191,969 Year ending December 31, 2022 141,229 Year ending December 31, 2023 and thereafter 39,973 $ 970,869 Rental expenses totaled $47,149 and $33,080 for the three months ended December 31, 2018 and 2017, respectively. Rental expenses totaled $113,518 and $92,515 for the nine months ended December 31, 2018 and 2017, respectively. 2) Purchase Commitments On December 29, 2018, Hunan Ruixi entered into three purchase contracts with automobile dealers for the purchase of 140 automobiles in the aggregate purchase price of approximately $1.2 million. These transactions will be completed in 2019. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 14. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. The following tables present the summary of each segment's revenue, loss from operations, loss before income taxes and net loss which is considered as a segment operating performance measure, for the nine months ended December 31, 2018: For the Nine Months Ended December 31, Online Lending Services Automobile Transactions and Financing Services Unallocated Consolidated (unaudited) (unaudited) (unaudited) (unaudited) Revenues $ 287,655 $ 118,736 $ - $ 406,391 Loss from operations $ (1,584,550 ) $ (7,997 ) $ (915,716 ) $ (2,508,263 ) Loss before income taxes $ (1,583,630 ) $ (3,268 ) $ (901,763 ) $ (2,488,661 ) Net loss $ (1,583,630 ) $ (3,268 ) $ (901,763 ) $ (2,488,661 ) Details of the Company's revenue by segment are set out in Note 2(m). As of December 31, 2018, the Company’s total assets were comprised of $3,749,294 for online lending services, $4,341,305 for automobile transaction and financing services, and $6,111,632 unallocated. As substantially all of the Company's long-lived assets are located in the PRC and substantially all of the Company's revenue is derived from within the PRC, no geographical information is presented. |
PARENT-ONLY FINANCIALS
PARENT-ONLY FINANCIALS | 9 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | 15. PARENT-ONLY FINANCIALS SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED BALANCE SHEETS December 31, March 31, 2018 2018 (unaudited) ASSETS - Current Assets Cash and cash equivalents $ 5,319,126 $ 10,961,071 Prepayments, receivables and other assets 33,651 39,964 Due from investors 1,900,000 - Escrow receivable due within one year 600,000 - Total Current Assets 7,852,777 11,001,035 Other Assets Escrow receivable - 1,200,000 Deposit in intangible assets 230,000 - Investment in subsidiaries 2,436,747 830,562 Total Assets $ 10,519,524 $ 13,031,597 LIABILITIES AND STOCKHOLDERS’ EQUITY Total Liabilities $ 216,383 $ 152,927 Stockholders' Equity Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 25,879,400 shares issued and outstanding at December 31, 2018 and March 31, 2018) 2,588 2,588 Additional paid-in capital 23,657,407 23,611,512 Accumulated deficit (12,973,371 ) (10,481,669 ) Accumulated other comprehensive loss (386,524 ) (253,761 ) Total Stockholders’ Equity 10,300,100 12,878,670 Noncontrolling interests 3,041 - Total Equity 10,303,141 12,878,670 Total Liabilities and Equity $ 10,519,524 $ 13,031,597 SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED STATEMENTS OF OPERATIONS For the Nine Months Ended December 31, 2018 2017 (unaudited) (unaudited) General and administrative expenses $ (887,662 ) $ - Other income, net 5,948 - Equity of loss in subsidiaries (1,606,947 ) - Net loss (2,488,661 ) - Net income attributable to noncontrolling interest (3,041 ) - Foreign currency translation adjustments (132,723 ) - Comprehensive loss $ (2,624,425 ) $ - SENMIAO TECHNOLOGY LIMITED CONDENSED STATEMENTS OF CASH FLOWS For the Nine Months Ended December 31, 2018 2017 (unaudited) (unaudited) Cash Flows from Operating Activities Net loss $ (2,488,661 ) $ - Adjustments to reconcile net loss to net cash used in operating activities: Equity of loss of subsidiaries 1,606,947 - Changes in operating assets and liabilities: Prepayments, receivables and other assets 6,313 - Accrued expenses and other liabilities 63,302 - Cash Flows provided by Operating Activities (812,099 ) - Cash Flows From Investing Activities: Deposits in intangible assets (230,000 ) Investment in subsidiaries (3,300,000 ) Cash Flows used in Investing Activities (3,530,000 ) - Cash Flows From Financing Activities: Repayment of borrowing to stockholders (1,900,000 ) - Due to stockholders 154 - Release of escrow receivable 600,000 - Cash Flows used in Financing Activities (1,299,846 ) - Net decrease in cash and cash equivalents (5,641,945 ) - Cash and cash equivalents, beginning of the period 10,961,071 - Cash and cash equivalents, end of the period $ 5,319,126 $ - Supplemental Cash Flows Information: Income tax paid $ - $ - Interest paid $ - $ - Non-cash investing and financing activities: IPO issuance costs net against additional paid-in capital $ 6,526 $ - IPO expenses paid by the Company’s stockholders $ 70,687 $ - (a) Basis of presentation The unaudited condensed financial information of the Company has been prepared using the same accounting policies as set out in the consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted by reference to the consolidated financial statements. (b) Investment in subsidiary and equity of loss in subsidiaries The investment in subsidiary consists of investments in WFOE and Hunan Ruixi. The equity losses in subsidiaries consist of equity loss in WFOE and Hunan Ruixi. (c) Stockholders’ equity On September 18, 2017, the Company issued an aggregate of 45,000,000 shares of common stock to the Sichuan Senmiao Shareholders. The Company recorded $4,500 for the issuance of the shares. On January 29, 2018, the Company’s board of directors and stockholders approved a one-for-two reverse stock split of its issued and outstanding shares of common stock. As a result, the number of the Company’s issued and outstanding shares of common stock was reduced to 22,500,000. The discussion and presentation of financial statements herein accounted for the Restructuring retroactively. On March 16, 2018, the Company closed its IPO of 3,000,000 shares of common stock. On March 28, 2018, the Company sold additional 379,400 shares of common stock upon exercise of the underwriter’s over-allotment option. The public offering price of the shares sold in the IPO was $4.00 per share. The total gross proceeds from the offering were approximately $13.5 million. After deducting underwriting discounts and commissions and offering expenses payable by the Company, the aggregate net proceeds received by the Company totaled approximately $12.2 million. On July 31, 2018, the board of directors of the Company approved the issuance of 5,000 RSU to each of the five directors as stock compensation for their services for the Company’s fiscal year ending March 31, 2019. Total RSUs granted to the five directors were 25,000 for an aggregate fair value of $117,750. Pursuant to the Award Agreements signed by the Company and each director on August 3, 2018, the RSUs vest in four equal quarterly installments on August 3, 2018, April 1, 2019, July 1, 2019 and October 1, 2019 or in full upon the occurrence of a change in control of the Company, subject to the terms and conditions set forth in the Award Agreements, provided that the director remains in service as a director through the applicable vesting date. Total compensation expense for the three and nine months ended December 31, 2018 was approximately $27,625. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation The interim unaudited condensed consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited interim financial information as of December 31, 2018 and for the three and nine months ended December 31, 2018 and 2017 have been prepared without audit, pursuant to the rules and regulations of the SEC and pursuant to Regulation S-X. Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim financial information should be read in conjunction with the audited financial statements and the notes thereto, included in the Form 10-K for the fiscal year ended March 31, 2018, which was filed with the SEC on June 29, 2018. In the opinion of management, all adjustments (including normal recurring adjustments) necessary to present a fair statement of the Company’s unaudited financial position as of December 31, 2018, its unaudited results of operations for the three and nine months ended December 31, 2018 and 2017, and its unaudited cash flows for the nine months ended December 31, 2018 and 2017, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Consolidation, Policy [Policy Text Block] | (b) Basis of consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the WFOE and Ruixi. All inter-company accounts and transactions have been eliminated in consolidation. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (c) Foreign currency translation Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing on the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates on the date of the balance sheet. The resulting exchange differences are recorded in the statement of operations. The reporting currency of the Company and its subsidiaries is U.S. dollars (“US$”) and the accompanying consolidated financial statements have been expressed in US$, because that is the primary and functional currency where all entities operate. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries are recorded as a separate component of accumulated other comprehensive income within the statement of stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, 2018 March 31, 2018 Balance sheet items, except for equity accounts 6.8776 6.2807 For the Nine Months Ended December 31, 2018 2017 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.7008 6.7146 |
Use of Estimates, Policy [Policy Text Block] | (d) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The following are some of the areas requiring significant judgments and estimates: determinations of the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts, valuation of deferred tax assets and estimated fair value used in business acquisition. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | (e) Fair values of financial instruments Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. As of December 31, 2018 and March 31, 2018, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, accounts receivable, receivables and other assets, escrow receivables, due from a related party, borrowings from financial institutions, other liabilities, due to stockholders and due to related parties, which approximate their fair values because of the short-term nature of these instruments, and noncurrent liabilities of borrowings from financial institutions, which approximate their fair values because of the |
Business Combinations Policy [Policy Text Block] | (f) Business combinations and noncontrolling interests The Company accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 "Business Combinations." The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers and liabilities incurred by the Company and equity instruments issued. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets and liabilities acquired or assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total costs of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated income statements. During the measurement period, which can be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated income statements. For the Company's non-wholly owned subsidiaries, a noncontrolling interest is recognized to reflect portion of equity that is not attributable, directly or indirectly, to the Company. The cumulative results of operations attributable to noncontrolling interests are also recorded as noncontrolling interests in the Company's consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with noncontrolling interests are presented under financing activities in the consolidated statements of cash flows. |
Segment Reporting, Policy [Policy Text Block] | (g) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker which is comprised of certain members of the Company's management team. Historically, the Company had one single operating and reportable segment, namely the provision of an online lending services. During the three months ended December 31, 2018, the Company acquired Hunan Ruixi and its VIE and evaluated how the CODM manages the businesses of the Company to maximize efficiency in allocating resources and assessing performance. Consequently, the Company presents two operating and reportable segments as set forth in Notes 1 and 14. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (h) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | (i) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, which are due on demand. Management reviews the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2018, the Company determined no allowance for doubtful accounts was necessary for accounts receivable. |
Property, Plant and Equipment, Policy [Policy Text Block] | (j) Property and equipment Property and equipment primarily consists of computer equipment, which is stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobile 4 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three and nine months ended December 31, 2018 and 2017, there was no impairment of property and equipment. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated income statements. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | (k) Intangible assets Purchased intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Platform 7 years Customer relationship 10 years Software 5-7 years Separately identifiable intangible assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible assets is based on the amount by which the carrying amount of the assets exceeds the fair value of the assets. For the three and nine months ended December 31, 2018 and 2017, there was no impairment charge against intangible assets. |
Earnings Per Share, Policy [Policy Text Block] | (l) Loss per share Basic loss per share is computed by dividing net loss attributable to stockholders by the weighted average number of outstanding shares of common stock, adjusted for outstanding shares of common stock that are subject to repurchase. For the calculation of diluted loss per share, net loss attributable to stockholders for basic loss per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net loss per share if their inclusion is anti-dilutive. |
Revenue Recognition, Policy [Policy Text Block] | (m) Revenue recognition The Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”), in the first quarter of 2018 using the modified retrospective approach. ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of ASC 606 and therefore there was no material changes to the Company's unaudited condensed consolidated financial statements upon adoption of ASC 606. As of December 31, 2018, the Company had outstanding contracts for automobile transaction and financing services amounting to $1,533,754, of which $764,575 is expected to be completed within 12 months after December 31, 2018, and $769,179 were expected to be completed over 12 months after December 31, 2018. During the three and nine months ended December 31, 2018 and 2017, the Company generated revenues primarily from transaction and service fees earned from online lending services, facilitation fees earned from third party sales teams or automobile purchasers for facilitation of sales of automobiles, service fees earned from automobile purchasers throughout the purchase process, management and guarantee fees provided for automobile purchasers and service fees earned from other automobile transaction related services. The following table sets forth the disaggregation of revenues for the three and nine months ended December 31, 2018 and 2017: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Online Lending Services - Transaction fees $ 80,564 $ 141,014 $ 261,450 $ 307,142 - Service fees 10,557 11,524 26,205 28,356 Automobile Transaction and Financing Services - Service fees from automobile purchase services 70,654 - 70,654 - - Facilitation fees from automobile transaction 16,424 - 16,424 - - Service fees from management and guarantee services 21,332 - 21,332 - - Other Service fees 10,326 - 10,326 - $ 209,857 $ 152,538 $ 406,391 $ 335,498 Online Lending Services Transaction fees – Transaction fees are paid by borrowers to the Company for the work the Company performs through its platform. The amount of these fees is based upon the loan amount, maturity and the credit grade of borrowers. The fees charged to borrowers are paid upon (i) disbursement of the proceeds for loans which accrue interest on a monthly basis or (ii) full payment of principal and interest of loans which accrue interest on a daily basis. These fees are non-refundable upon the issuance of loan. Service fees — The Company charges investors service fees on their actual investment payments. The Company generally receives the service fees upon the investors’ receipt of their investment returns. The Company recognizes the revenue when loans have been repaid and investors have received their investment income. Automobile Transaction and Financing Services Facilitation fee from automobile transaction – Facilitation fees from automobile purchase services are paid by our customers including third-party sales teams or the automobile purchasers for the facilitation of the sales of automobiles. The Company attracts automobile purchasers through third-party sales teams or its own sales department. For the sales facilitated between third-party sales teams and automobile purchasers, the Company charges the fees to the third-party sales teams, which derived from the commission paid by the automobile purchasers to the third-party sales teams. The Company recognizes the revenue when the titles are transferred to the owners. Relating to sales facilitated between automobile purchasers and dealers, the Company charges the fees to the automobile purchasers. The Company recognizes the revenue when the titles are transferred to the owners. The amount of the fee is based on the type of automobile and negotiation with each sales team or automobile purchaser. The fees charged to third-party sales teams or automobile purchasers are paid when the transactions are consummated. These fees are non-refundable upon the delivery of automobiles. Service fees from automobile purchase services– Services fees from automobile purchase services are paid by automobile purchasers for a series of the services throughout the purchase process such as registration of license plates and permits from the relevant government authorities, insurance referral, and assistance with applications to financial institutions to finance the purchase. The amount of these fees is based on the total quoted price of the automobiles and relevant services provided, actual expenditure to fulfill those services and other factors of the automobiles. The Company recognizes the revenue when all the services are completed and the automobile is delivered to the purchaser. Service fees from management and guarantee services – A majority of the Company’s customers are the drivers who provide ride-hailing services over an internet service platform, and such drivers are required to sign affiliation agreements with the Company in order for them to be able to provide such services through the online platform. The Company will provide them with management services during the affiliation period. Service fees for management and guarantee services are paid by automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. In addition, the Company provides guarantee on the lease/loan payments (including principal and interest) of certain automobile purchasers under the financing agreements with financial institutions during the affiliation period. The Company recognizes the revenue over the affiliation period when performance obligations are completed. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | (n) Selling, general and administrative expenses Selling, general and administrative expenses primarily consisted of employee salaries and benefits, office rental expenses, travel expenses, customer verification and credit assessment costs and platform maintenance costs. |
Income Tax, Policy [Policy Text Block] | (o) Income taxes The Company accounts for income taxes in accordance with the U.S. GAAP for income taxes. Under the asset and liability method as required by U.S. GAAP, the deferred income tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the income tax basis and financial reporting basis of assets and liabilities. Provision or benefits for income taxes consists of tax estimated from taxable income plus deferred tax expense (benefits) if applicable. Deferred tax is calculated using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forward. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. 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. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. The Company did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of December 31, 2018 and March 31, 2018. As of December 31, 2018, the tax years ended December 31, 2013 through 2017 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. |
Comprehensive Income, Policy [Policy Text Block] | (p) Comprehensive loss Comprehensive loss includes net loss and foreign currency adjustments. Comprehensive loss is reported in the consolidated statements of operations and comprehensive loss. Accumulated other comprehensive loss, as presented on the unaudited condensed consolidated balance sheets are the cumulative foreign currency translation adjustments. As of December 31, 2018, and March 31, 2018, the balance of accumulated other comprehensive loss were $386,524 and $253,761, respectively. |
Lessor, Leases [Policy Text Block] | (q) Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases expense and is included in the unaudited condensed consolidated statements of operations on a straight-line basis over the term of the leases . The Company had no capital leases for the three and nine months ended December 31, 2018 and 2017. |
Income Tax Uncertainties, Policy [Policy Text Block] | (r) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amount as of the balance sheet dates. On December 31, 2018, approximately $5,320,000 was deposited with a bank in the United States which is insured by the U.S. government up to $250,000. On December 31, 2018 and March 31, 2018, approximately $3,980,000 and $180,000, respectively, were deposited in financial institutions located in mainland China, which were uninsured by the government authority. To limit exposure to credit risk relating to deposits, the Company primarily place cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC as well as by the general state of the PRC’s economy. In addition, the Company’s business may be influenced by changes in government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, rates and methods of taxation and other factors. b. In measuring the credit risk of guarantee services to automobile purchasers, the Company mainly reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers default their payments for more than three months. Thus, 100% allowances are recorded as a reserve against the balance due from automobile purchasers and may have to provide accrual for additional liabilities. Management also periodically necessary. However, as the Company commenced the automobile transactions and financing services for less than one year, there was no sufficient historic default data and other information to make an estimate on the expected credit losses. Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. As at December 31, 2018, 2) Liquidity risk The Company is also exposed to liquidity risk, which may limit the Company’s ability to access capital resources and have liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the stockholders to obtain short-term funds to meet the liquidity requirements. 3) Foreign currency risk As of December 31, 2018, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $5,320,000 in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the Peoples’ Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significant affected. 4) VIE risk It is possible that the VIE Agreements among Sichuan Senmiao, WFOE, and the Sichuan Senmiao Shareholders would not be enforced in China if the PRC government or courts consider those contracts contravene PRC laws and regulations or otherwise not enforceable for public policy reasons. In the event that the Company were unable to enforce these contractual arrangements, the Company would not be able to exert effective control over the VIE. Consequently, the VIE’s results of operations, assets and liabilities would not be included in the Company’s consolidated financial statements. As a result, the Company’s cash flows, financial position, and operating performance would be materially and adversely affected. The Company’s contractual arrangements with Sichuan Senmiao, WFOE, and the Sichuan Senmiao Shareholders are approved and in place. Management believes that such contracts are enforceable, and considers it is less likely that PRC regulatory authorities with jurisdiction over the Company’s operations and contractual relationships would find the contracts unenforceable. The Company's operations and businesses rely on the operations and businesses of its VIE, which holds certain recognized revenue-producing assets including the platform, customer relationship and goodwill. The VIE also has an assembled workforce, focused on customer verification and credit assessment, the costs of which are expensed as incurred. The Company’s operations and businesses may be adversely impacted if the Company loses the ability to use assets held by its VIE. |
New Accounting Pronouncements, Policy [Policy Text Block] | (s) Recently issued accounting standards The Company adopted ASC 606 in three and nine months ended December 31, 2018 using the modified retrospective approach. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material changes to the Company's unaudited condensed consolidated financial statements upon adoption of ASC 606. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Amendments to the ASC 842 Leases. This update requires the lessee to recognize the assets and liability (the lease liability) arising from operating leases on the balance sheet for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Within twelve months or less lease term, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. If a lessee makes this election, it should recognize lease expense on a straight-line basis over the lease term. In transition, this update will be effective for fiscal years and any interim periods within those fiscal years beginning after December 15, 2018. Management is evaluating the effect on the Company’s unaudited condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions to its unaudited condensed 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 financial position, statements of operations and cash flows of the Company. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTITIVIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities Financial Statement [Table Text Block] | Total assets and total liabilities of the Company’s VIEs included in the Company’s unaudited condensed consolidated financial statements as of December 31, 2018 and March 31, 2018 are as follows: December 31, 2018 March 31, 2018 (unaudited) Total assets $ 10,984,820 $ 10,425,056 Total liabilities $ 5,533,128 $ 1,413,485 |
Schedule of Variable Interest Entities On Income and Cash Flow Activities [Table Text Block] | Net revenue, net income, operating, investing and financing cash flows of the VIEs that were included in the Company's consolidated financial statements for the nine months ended December 31 , 2018 and 2017 are as follows: For the Nine Months Ended December 31, 2018 2017 (unaudited) (unaudited) Net revenue $ 406,391 $ 335,498 Net loss $ (918,449 ) $ (1,011,590 ) Net Cash Used in Operating Activities $ (1,151,386 ) $ (417,645 ) Net Cash Used in Investing Activities $ (7,623 ) $ (412 ) Net Cash Provided by Financing Activities $ 2,355,660 $ 335,092 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block] | Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, 2018 March 31, 2018 Balance sheet items, except for equity accounts 6.8776 6.2807 For the Nine Months Ended December 31, 2018 2017 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.7008 6.7146 |
Property, Plant and Equipment [Table Text Block] | The useful life of property and equipment is summarized as follows: Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobile 4 years |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Purchased intangible assets are recognized and measured at fair value upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method as follows: Platform 7 years Customer relationship 10 years Software 5-7 years |
Disaggregation of Revenue [Table Text Block] | The following table sets forth the disaggregation of revenues for the three and nine months ended December 31, 2018 and 2017: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2018 2017 2018 2017 (unaudited) (unaudited) (unaudited) (unaudited) Online Lending Services - Transaction fees $ 80,564 $ 141,014 $ 261,450 $ 307,142 - Service fees 10,557 11,524 26,205 28,356 Automobile Transaction and Financing Services - Service fees from automobile purchase services 70,654 - 70,654 - - Facilitation fees from automobile transaction 16,424 - 16,424 - - Service fees from management and guarantee services 21,332 - 21,332 - - Other Service fees 10,326 - 10,326 - $ 209,857 $ 152,538 $ 406,391 $ 335,498 |
ACQUISITION OF HUNAN RUIXI AN_2
ACQUISITION OF HUNAN RUIXI AND ITS VIE (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
ACQUISITION OF HUNAN RUIXI AND ITS VIE [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table summarizes the fair values for major classes of assets acquired and liabilities assumed at the date of acquisition: Fair value Net assets acquired (i) $ 45,895 Gain from acquisition of Hunan Ruixi and its subsidiary - Noncontrolling interests (ii) - Total purchase consideration $ - (i) Net assets acquired primarily include cash and cash equivalents of $213,645, other current assets of $1,774,725, property and equipment of $36,384, other current liabilities of $607,558 and borrowings from third parties of $1,439,750. (ii) Fair value of the noncontrolling interests is estimated with reference to the purchase price per share as of the acquisition date. |
PREPAYMENTS, RECEIVABLES AND _2
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule Of Prepayments Receivables [Table Text Block] | As of December 31, 2018, and March 31, 2018, the prepayments, receivables and other assets were comprised of the following: December 31, 2018 March 31, 2018 (unaudited) Due from * $ 1,634,168 $ - Deposit 228,138 - Prepaid expenses 127,030 44,861 Loans to employees - 2,718 Others 129,206 22,842 $ 2,118,542 $ 70,421 * The balance due from automobile purchasers represented the payment of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of December 31, 2018, and March 31, 2018, the intangible assets consisted of relationship, platform and software. Useful life December 31, 2018 March 31, 2018 (unaudited) Customer relationship 10 $ 383,159 $ 419,573 Platform 7 4,103,195 4,493,151 Software 5-7 78,050 84,545 Intangible assets 4,564,404 4,997,269 Less: Accumulated amortization (1,180,902 ) (1,043,871 ) Impairment (1,826,582 ) (2,000,175 ) Intangible assets, net $ 1,556,920 $ 1,953,223 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | The following table sets forth the Company’s amortization expenses for the twelve months ending December 31 of the following years: Amortization expenses Twelve months ending December 31, 2019 $ 303,579 Twelve months ending December 31, 2020 303,579 Twelve months ending December 31, 2021 303,579 Twelve months ending December 31, 2022 303,579 Twelve months ending December 31, 2023 and thereafter 342,604 $ 1,556,920 |
BORROWINGS FROM FINANCIAL INS_2
BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
BORROWINGS FROM FINANCIAL INSTITUTIONS CURRENT AND NONCURRENT [Abstract] | |
Schedule of Debt [Table Text Block] | As of December 31, 2018, and March 31, 2018, the balances of borrowings from certain financial institutions are comprised of the following. December 31, 2018 March 31, 2018 (unaudited) Borrowings from financial institutions, current $ 213,877 $ - Borrowings from financial institutions, noncurrent $ 227,985 $ - |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 018 March 31, 2018 (unaudited) Accrued payroll and welfare $ 484,295 $ 195,695 Loan repayments received on behalf of financial institutions (i) 298,660 - Other payable (ii) 112,152 194,943 Accrued insurance expenses 98,583 - Customer deposit 38,071 8,495 Accrued bank charges 20,507 Other tax payable 12,209 5,471 Accrued rental fees 7,039 - $ 1,071,516 $ 404,604 (i) The balance of loan repayments received on behalf of financial institutions represented the loan repayments made by the automobile purchasers to financial institutions through the Company, which has not been paid to the financial institutions as of December 31, 2018. (ii) The balance of other payable represented amount due to suppliers and vendors. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | A summary of RSU activity for the nine months ended December 31, 2018 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Balance of RSUs outstanding at March 31, 2018 - - Grants of 25,000 4.42 Vested (6,250 ) 4.42 Forfeited RSUs (7,500 ) 4.42 Balance of unvested at December 31, 2018 11,250 $ 4.42 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets are as follows: December 31, 2018 March 31, 2018 (unaudited) Net operating loss carryforwards in the PRC $ 737,072 $ 378,085 Net operating loss carryforwards in the U.S. 228,181 43,021 Less: valuation allowance (965,253 ) (421,106 ) $ - $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table sets forth the Company’s lease obligations as of December 31, 2018 in future periods: Rental payments Year ending December 31, 2019 $ 300,004 Year ending December 31, 2020 297,694 Year ending December 31, 2021 191,969 Year ending December 31, 2022 141,229 Year ending December 31, 2023 and thereafter 39,973 $ 970,869 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present the summary of each segment's revenue, loss from operations, loss before income taxes and net loss which is considered as a segment operating performance measure, for the nine months ended December 31, 2018: For the Nine Months Ended December 31, Online Lending Services Automobile Transactions and Financing Services Unallocated Consolidated (unaudited) (unaudited) (unaudited) (unaudited) Revenues $ 287,655 $ 118,736 $ - $ 406,391 Loss from operations $ (1,584,550 ) $ (7,997 ) $ (915,716 ) $ (2,508,263 ) Loss before income taxes $ (1,583,630 ) $ (3,268 ) $ (901,763 ) $ (2,488,661 ) Net loss $ (1,583,630 ) $ (3,268 ) $ (901,763 ) $ (2,488,661 ) |
PARENT-ONLY FINANCIALS (Tables)
PARENT-ONLY FINANCIALS (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED BALANCE SHEETS December 31, March 31, 2018 2018 (unaudited) ASSETS - Current Assets Cash and cash equivalents $ 5,319,126 $ 10,961,071 Prepayments, receivables and other assets 33,651 39,964 Due from investors 1,900,000 - Escrow receivable due within one year 600,000 - Total Current Assets 7,852,777 11,001,035 Other Assets Escrow receivable - 1,200,000 Deposit in intangible assets 230,000 - Investment in subsidiaries 2,436,747 830,562 Total Assets $ 10,519,524 $ 13,031,597 LIABILITIES AND STOCKHOLDERS’ EQUITY Total Liabilities $ 216,383 $ 152,927 Stockholders' Equity Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 25,879,400 shares issued and outstanding at December 31, 2018 and March 31, 2018) 2,588 2,588 Additional paid-in capital 23,657,407 23,611,512 Accumulated deficit (12,973,371 ) (10,481,669 ) Accumulated other comprehensive loss (386,524 ) (253,761 ) Total Stockholders’ Equity 10,300,100 12,878,670 Noncontrolling interests 3,041 - Total Equity 10,303,141 12,878,670 Total Liabilities and Equity $ 10,519,524 $ 13,031,597 |
Condensed Income Statement [Table Text Block] | SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED STATEMENTS OF OPERATIONS For the Nine Months Ended December 31, 2018 2017 (unaudited) (unaudited) General and administrative expenses $ (887,662 ) $ - Other income, net 5,948 - Equity of loss in subsidiaries (1,606,947 ) - Net loss (2,488,661 ) - Net income attributable to noncontrolling interest (3,041 ) - Foreign currency translation adjustments (132,723 ) - Comprehensive loss $ (2,624,425 ) $ - |
Condensed Cash Flow Statement [Table Text Block] | SENMIAO TECHNOLOGY LIMITED CONDENSED STATEMENTS OF CASH FLOWS For the Nine Months Ended December 31, 2018 2017 (unaudited) (unaudited) Cash Flows from Operating Activities Net loss $ (2,488,661 ) $ - Adjustments to reconcile net loss to net cash used in operating activities: Equity of loss of subsidiaries 1,606,947 - Changes in operating assets and liabilities: Prepayments, receivables and other assets 6,313 - Accrued expenses and other liabilities 63,302 - Cash Flows provided by Operating Activities (812,099 ) - Cash Flows From Investing Activities: Deposits in intangible assets (230,000 ) Investment in subsidiaries (3,300,000 ) Cash Flows used in Investing Activities (3,530,000 ) - Cash Flows From Financing Activities: Repayment of borrowing to stockholders (1,900,000 ) - Due to stockholders 154 - Release of escrow receivable 600,000 - Cash Flows used in Financing Activities (1,299,846 ) - Net decrease in cash and cash equivalents (5,641,945 ) - Cash and cash equivalents, beginning of the period 10,961,071 - Cash and cash equivalents, end of the period $ 5,319,126 $ - Supplemental Cash Flows Information: Income tax paid $ - $ - Interest paid $ - $ - Non-cash investing and financing activities: IPO issuance costs net against additional paid-in capital $ 6,526 $ - IPO expenses paid by the Company’s stockholders $ 70,687 $ - |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTITIVIES (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Total assets | $ 14,202,231 | $ 14,374,082 |
Total liabilities | 3,899,090 | 1,495,412 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Total assets | 10,984,820 | 10,425,056 |
Total liabilities | $ 5,533,128 | $ 1,413,485 |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTITIVIES (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | $ 209,857 | $ 152,538 | $ 406,391 | $ 335,498 |
Net loss attributable to stockholders | $ (771,333) | $ (301,217) | (2,491,702) | (1,111,140) |
Net Cash Used in Operating Activities | (2,462,092) | (417,645) | ||
Net Cash Used in Investing Activities | (449,263) | (412) | ||
Net Cash Provided by Financing Activities | 1,161,515 | 335,092 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Revenue | 406,391 | 335,498 | ||
Net loss attributable to stockholders | (918,449) | (1,011,590) | ||
Net Cash Used in Operating Activities | (1,151,386) | (417,645) | ||
Net Cash Used in Investing Activities | (7,623) | (412) | ||
Net Cash Provided by Financing Activities | $ 2,355,660 | $ 335,092 |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTITIVIES (Details Textual) - USD ($) | 9 Months Ended | ||
Dec. 31, 2018 | Nov. 21, 2018 | Sep. 18, 2017 | |
Entity Incorporation, State Country Name | Nevada | ||
Entity Incorporation, Date of Incorporation | Jun. 8, 2017 | ||
Voting Agreement with Jinkailongs other shareholders [Member] | |||
Equity Method Investment, Ownership Percentage | 65.00% | ||
Business Agreement Term | 20 years | ||
Exclusive Option Agreement [Member] | |||
Contract period | 10 years | ||
Sichuan Senmiao [Member] | |||
Number of Aggregate Common Stock Shares Issued | 20,250,000 | 45,000,000 | |
Business Agreement Term | 10 years | ||
Hunan Ruixi [Member] | |||
Equity Method Investment, Ownership Percentage | 60.00% | ||
Working Capital | $ 6,000,000 | ||
Registered Capital Percentage | 60.00% | ||
Sichuan Jinkailong Automobile Leasing Co Ltd [Member] | |||
Equity Method Investment, Ownership Percentage | 35.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Balance sheet items, except for equity accounts | 6.8776 | 6.2807 | |
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.7008 | 6.7146 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 9 Months Ended |
Dec. 31, 2018 | |
Automobile [Member] | |
Property, Plant and Equipment, Useful Life | 4 years |
Maximum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum [Member] | Office Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Computer Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum [Member] | Office Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 9 Months Ended |
Dec. 31, 2018 | |
Customer Relationships [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Platform [Member] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Software [Member] | Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Software [Member] | Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Online Lending Services | ||||
Revenues | $ 209,857 | $ 152,538 | $ 406,391 | $ 335,498 |
Transaction fees [Member] | ||||
Online Lending Services | ||||
Revenues | 80,564 | 141,014 | 261,450 | 307,142 |
Service fees [Member] | ||||
Online Lending Services | ||||
Revenues | 10,557 | 11,524 | 26,205 | 28,356 |
Service fees from automobile purchase services [Member] | ||||
Online Lending Services | ||||
Revenues | 70,654 | 0 | 70,654 | 0 |
Facilitation fees from automobile transaction [Member] | ||||
Online Lending Services | ||||
Revenues | 16,424 | 0 | 16,424 | 0 |
Service fees from management and guarantee services [Member] | ||||
Online Lending Services | ||||
Revenues | 21,332 | 0 | 21,332 | 0 |
Other Service fees [Member] | ||||
Online Lending Services | ||||
Revenues | $ 10,326 | $ 0 | $ 10,326 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (386,524) | $ (253,761) |
Financing Receivable, Gross | 1,533,754 | |
Contract Receivable, Due in Next Twelve Months | 764,575 | |
Contract Receivable, Due in Year Two | 769,179 | |
Commitments and Contingencies | ||
Percentage of Income Taxes Benefit | 50.00% | |
Percentage of Fair Value of Collateral Representing Contingent Liability | 87.00% | |
Automobiles [Member] | ||
Collateral Already Posted, Aggregate Fair Value | $ 8,497,000 | |
Collectibility of Receivables [Member] | ||
Commitments and Contingencies | $ 9,784,719 | |
Management And Guarantee Services [Member] | ||
Line of Credit Facility, Interest Rate Description | 100% allowances are recorded as a reserve against the balance due from automobile purchasers and may have to provide accrual for additional liabilities. | |
CHINA | ||
Cash, Uninsured Amount | $ 3,980,000 | $ 180,000 |
UNITED STATES | ||
Deposits, Savings Deposits | 5,320,000 | |
Cash, FDIC Insured Amount | $ 250,000 |
ACQUISITION OF HUNAN RUIXI AN_3
ACQUISITION OF HUNAN RUIXI AND ITS VIE (Details) | 9 Months Ended | |
Dec. 31, 2018USD ($) | ||
Net assets acquired | $ 45,895 | [1] |
Gain from acquisition of Hunan Ruixi and its subsidiary | 0 | |
Noncontrolling interests | 0 | [2] |
Total purchase consideration | $ 0 | |
[1] | Net assets acquired primarily include cash and cash equivalents of $213,645, other current assets of $1,774,725, property and equipment of $36,384, other current liabilities of $607,558 and borrowings from third parties of $1,439,750. | |
[2] | Fair value of the noncontrolling interests is estimated with reference to the purchase price per share as of the acquisition date. |
ACQUISITION OF HUNAN RUIXI AN_4
ACQUISITION OF HUNAN RUIXI AND ITS VIE (Details Textual) | Nov. 21, 2018USD ($) |
Cash and Cash Equivalents, Fair Value Disclosure | $ 213,645 |
Other Current Assets Fair value Disclosure | 1,774,725 |
Property, Plant, and Equipment, Fair Value Disclosure | 36,384 |
Other Current Liabilities Fair Value Disclosure | 607,558 |
Borrowings From Third Parties Fair Value Disclosure | $ 1,439,750 |
Hunan Ruixi [Member] | |
Equity Method Investment, Ownership Percentage | 60.00% |
Working Capital | $ 6,000,000 |
Registered Capital Percentage | 60.00% |
PREPAYMENTS, RECEIVABLES AND _3
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 | |
Receivables [Abstract] | |||
Due from automobile purchasers | [1] | $ 1,634,168 | $ 0 |
Deposit | 228,138 | 0 | |
Prepaid expenses | 127,030 | 44,861 | |
Loans to employees | 0 | 2,718 | |
Others | 129,206 | 22,842 | |
Prepayments, receivables and other assets | $ 2,118,542 | $ 70,421 | |
[1] | The balance due from third party sales teams and automobile buyers represented the payments of automobiles and related insurances and taxes on behalf of the customers. The balance was expected to get collected from the customers in installments. |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets, Gross | $ 4,564,404 | $ 4,997,269 |
Less: accumulated amortization | (1,180,902) | (1,043,871) |
Impairment | (1,826,582) | (2,000,175) |
Intangible Assets, Net (Including Goodwill) | 1,556,920 | 1,953,223 |
Customer relationship [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 383,159 | 419,573 |
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Platform [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 4,103,195 | 4,493,151 |
Finite-Lived Intangible Asset, Useful Life | 7 years | |
Software [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 78,050 | $ 84,545 |
Software [Member] | Minimum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Software [Member] | Maximum [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details 1) | Dec. 31, 2018USD ($) |
Twelve months ending December 31, 2019 | $ 303,579 |
Twelve months ending December 31, 2020 | 303,579 |
Twelve months ending December 31, 2021 | 303,579 |
Twelve months ending December 31, 2022 | 303,579 |
Twelve months ending December 31, 2023 and thereafter | 342,604 |
Finite-Lived Intangible Assets, Net | $ 1,556,920 |
INTANGIBLE ASSETS, NET (Detai_3
INTANGIBLE ASSETS, NET (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Indefinite-lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 60,488 | $ 165,206 | $ 233,576 | $ 488,210 |
DEPOSITS FOR INTANGIBLE ASSETS
DEPOSITS FOR INTANGIBLE ASSETS (Details Textual) | Dec. 31, 2018USD ($) |
DEPOSITS FOR INTANGIBLE ASSETS [Abstract] | |
Deposits on Intangible assets | $ 416,112 |
BORROWINGS FROM FINANCIAL INS_3
BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
BORROWINGS FROM FINANCIAL INSTITUTIONS CURRENT AND NONCURRENT [Abstract] | ||
Borrowings from financial institutions, current | $ 213,877 | $ 0 |
Borrowings from financial institutions, noncurrent | $ 227,985 | $ 0 |
BORROWINGS FROM FINANCIAL INS_4
BORROWINGS FROM FINANCIAL INSTITUTIONS, CURRENT AND NONCURRENT (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2018 | |
Interest Expense, Borrowings | $ 2,993 | $ 2,993 | |
Loans Payable to Bank | 441,862 | 441,862 | |
Loans Payable to Bank, Noncurrent | 227,985 | 227,985 | $ 0 |
Loans Payable to Bank, Current | $ 213,877 | $ 213,877 | $ 0 |
Minimum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.20% | 6.20% | |
Maximum [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.10% | 8.10% |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 | |
Accrued payroll and welfare | $ 484,295 | $ 195,695 | |
Loan repayments received on behalf of financial institutions | [1] | 298,660 | 0 |
Other payable | [2] | 112,152 | 194,943 |
Accrued insurance expenses | 98,583 | 0 | |
Customer deposit | 38,071 | 8,495 | |
Accrued bank charges | 20,507 | ||
Other tax payable | 12,209 | 5,471 | |
Accrued rental fees | 7,039 | 0 | |
Accounts Payable and Other Accrued Liabilities, Current | $ 1,071,516 | $ 404,604 | |
[1] | The balance of loan repayments received on behalf of financial institutions represented the loan repayments made by the automobile purchasers to financial institutions through the Company, which has not been paid to the financial institutions as of December 31, 2018. | ||
[2] | The balance of other payable represented amount due to suppliers and vendors. |
EMPLOYEE BENEFIT PLAN (Details
EMPLOYEE BENEFIT PLAN (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Defined Contribution Plan, Cost | $ 26,501 | $ 11,296 | $ 66,459 | $ 26,236 | |
Defined Benefit Plan, Benefit Obligation | $ 294,889 | $ 294,889 | $ 150,205 |
EQUITY (Details)
EQUITY (Details) | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares | |
Balance of RSUs outstanding at March 31, 2018 | shares | 0 |
Grants of RSUs | shares | 25,000 |
Vested RSUs | shares | (6,250) |
Forfeited RSUs | shares | (7,500) |
Balance of unvested RSUs at December 31, 2018 | shares | 11,250 |
Weighted-Average Grant Date Fair Value | |
Balance of RSUs outstanding at March 31, 2018 | $ / shares | $ 0 |
Grants of RSUs | $ / shares | 4.42 |
Vested RSUs | $ / shares | 4.42 |
Forfeited RSUs | $ / shares | 4.42 |
Balance of unvested RSUs at December 31, 2018 | $ / shares | $ 4.42 |
EQUITY (Details Textual)
EQUITY (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2018 | |
Class Of Warrant Or Rights Term And Price Description | Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $4.80 per share and is not exercisable for a period of 180 days from March 16, 2018. | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 5,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 25,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 117,750 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 7,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 11,250 | 11,250 | 0 | |
Restricted Stock [Member] | ||||
Share-based Compensation | $ 0 | $ 27,625 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 25,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 25,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 7,500 | 7,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 11,250 | 11,250 | ||
Common Stock [Member] | ||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 337,940 | 337,940 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Net operating loss carryforwards in the PRC | $ 737,072 | $ 378,085 |
Net operating loss carryforwards in the U.S. | 228,181 | 43,021 |
Less: valuation allowance | (965,253) | (421,106) |
DeferredTaxAssetsNet | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 22, 2017 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 31.50% | ||
Deferred Tax Assets, Valuation Allowance, Current | $ 230,000 | $ 40,000 | ||
Operating Loss Carryforwards | $ 2,948,285 | $ 1,512,341 | ||
Operating Loss Carryforwards Expiration Year | 2,023 | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,070,000 | |||
Net Operating Loss Included In Operating Loss Carryforwards | $ 880,000 | |||
State Administration of Taxation, China [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% | |||
Scenario, Plan [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Proceeds from Related Party Debt | $ 290,183 | $ 0 | ||||
Operating Leases, Rent Expense, Net | $ 47,149 | $ 33,080 | 113,518 | 92,515 | ||
Due from Related Parties, Current | 66,453 | 66,453 | $ 0 | |||
Related Party Transaction, Other Revenues from Transactions with Related Party | 74 | 187 | 472 | 412 | ||
Interest expense | 6,239 | 0 | 6,239 | 0 | ||
Due to Officers or Stockholders, Current | 1,054,025 | 1,054,025 | 1,090,808 | |||
Due to Related Parties, Current | 1,286,786 | 1,286,786 | $ 0 | |||
Xiang Hu [Member] | ||||||
Proceeds from Related Party Debt | $ 955,308 | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 70,687 | |||||
Jun Wang [Member] | ||||||
Proceeds from Related Party Debt | $ 159,218 | |||||
Repayments of Related Party Debt | $ 0 | 500,000 | ||||
Related Party Transaction, Expenses from Transactions with Related Party | 7,881 | |||||
Hong Li [Member] | ||||||
Lease Expiration Date | Jan. 1, 2020 | |||||
Operating Leases, Rent Expense, Net | $ 11,278 | $ 28,857 | 69,182 | $ 85,277 | ||
Zhejiang Chemi Car Leasing Co Ltd [Member] | ||||||
Due from Related Parties, Current | $ 66,453 | $ 66,453 | ||||
Hunan Ruixi [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.10% | 9.10% | ||||
Interest expense | $ 3,246 | $ 3,246 | ||||
Due to Officers or Stockholders, Current | 167,209 | 167,209 | ||||
Due to Related Parties, Current | $ 1,286,786 | $ 1,286,786 | ||||
Hunan Ruixi [Member] | Maximum [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 14.20% | 14.20% | ||||
Hunan Ruixi [Member] | Minimum [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.10% | 2.10% | ||||
Sichuan Senmiao [Member] | Hunan Ruixi [Member] | ||||||
Due to Officers or Stockholders, Current | $ 1,119,577 | $ 1,119,577 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2018USD ($) |
2,019 | $ 300,004 |
2,020 | 297,694 |
2,021 | 191,969 |
2,022 | 141,229 |
2023 and thereafter | 39,973 |
Operating Leases, Future Minimum Payments Due | $ 970,869 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 29, 2018USD ($)Automobile | |
Operating Leases, Rent Expense, Net | $ 47,149 | $ 33,080 | $ 113,518 | $ 92,515 | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 1,200,000 | ||||
Number Of Automobiles | Automobile | 140 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 209,857 | $ 152,538 | $ 406,391 | $ 335,498 |
Net Loss | $ (771,333) | $ (301,217) | (2,491,702) | $ (1,111,140) |
Online Lending Services [Member] | ||||
Revenues | 287,655 | |||
Loss from operations | (1,584,550) | |||
Loss before income taxes | (1,583,630) | |||
Net Loss | (1,583,630) | |||
Automobile Transactions and Financing Services [Member] | ||||
Revenues | 118,736 | |||
Loss from operations | (7,997) | |||
Loss before income taxes | (3,268) | |||
Net Loss | (3,268) | |||
Unallocated [Member] | ||||
Revenues | 0 | |||
Loss from operations | (915,716) | |||
Loss before income taxes | (901,763) | |||
Net Loss | (901,763) | |||
Consolidated Segment [Member] | ||||
Revenues | 406,391 | |||
Loss from operations | (2,508,263) | |||
Loss before income taxes | (2,488,661) | |||
Net Loss | $ (2,488,661) |
SEGMENT INFORMATION (Details Te
SEGMENT INFORMATION (Details Textual) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | $ 14,202,231 | $ 14,374,082 |
Online Lending Services [Member] | ||
Assets | 3,749,294 | |
Automobile Transactions and Financing Services [Member] | ||
Assets | 4,341,305 | |
Unallocated [Member] | ||
Assets | $ 6,111,632 |
PARENT-ONLY FINANCIALS CONDENSE
PARENT-ONLY FINANCIALS CONDENSED BALANCE SHEETS (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Current Assets | ||||
Cash and cash equivalents | $ 9,291,719 | $ 11,141,566 | $ 85,202 | $ 161,292 |
Prepayments, receivables and other assets | 129,206 | 22,842 | ||
Due from investors | 66,453 | 0 | ||
Escrow receivable due within one year | 600,000 | 0 | ||
Total Current Assets | 12,165,269 | 11,211,987 | ||
Other Assets | ||||
Total Assets | 14,202,231 | 14,374,082 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total Liabilities | 3,899,090 | 1,495,412 | ||
Stockholders' Equity | ||||
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 25,879,400 shares issued and outstanding at December 31, 2018 and March 31, 2018) | 2,588 | 2,588 | ||
Accumulated deficit | (12,973,371) | (10,481,669) | ||
Accumulated other comprehensive loss | (386,524) | (253,761) | ||
Total Stockholders' Equity | 10,300,100 | 12,878,670 | ||
Noncontrolling interests | 3,041 | 0 | ||
Total Equity | 10,303,141 | 12,878,670 | ||
Total Liabilities and Equity | 14,202,231 | 14,374,082 | ||
Parent Company [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 5,319,126 | 10,961,071 | $ 0 | $ 0 |
Prepayments, receivables and other assets | 33,651 | 39,964 | ||
Due from investors | 1,900,000 | 0 | ||
Escrow receivable due within one year | 600,000 | 0 | ||
Total Current Assets | 7,852,777 | 11,001,035 | ||
Other Assets | ||||
Escrow receivable | 0 | 1,200,000 | ||
Deposits Intangible assets | 230,000 | 0 | ||
Investment in subsidiary | 2,436,747 | 830,562 | ||
Total Assets | 10,519,524 | 13,031,597 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total Liabilities | 216,383 | 152,927 | ||
Stockholders' Equity | ||||
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 25,879,400 shares issued and outstanding at December 31, 2018 and March 31, 2018) | 2,588 | 2,588 | ||
Additional paid-in capital | 23,657,407 | 23,611,512 | ||
Accumulated deficit | (12,973,371) | (10,481,669) | ||
Accumulated other comprehensive loss | (386,524) | (253,761) | ||
Total Stockholders' Equity | 10,300,100 | 12,878,670 | ||
Noncontrolling interests | 3,041 | 0 | ||
Total Equity | 10,303,141 | 12,878,670 | ||
Total Liabilities and Equity | $ 10,519,524 | $ 13,031,597 |
PARENT-ONLY FINANCIALS CONDEN_2
PARENT-ONLY FINANCIALS CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 25,879,400 | 25,879,400 |
Common Stock, Shares, Outstanding | 25,879,400 | 25,879,400 |
PARENT-ONLY FINANCIALS CONDEN_3
PARENT-ONLY FINANCIALS CONDENSED STATEMENTS OF OPERATIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
General and administrative expenses | $ (926,358) | $ (288,620) | $ (2,681,078) | $ (960,349) |
Net loss | (768,292) | (301,217) | (2,488,661) | (1,111,140) |
Net income attributable to noncontrolling interest | 3,041 | 0 | 3,041 | 0 |
Foreign currency translation adjustment | (26,063) | 207,125 | (132,763) | 537,173 |
Comprehensive Loss | $ (797,396) | $ (94,092) | (2,624,465) | (573,967) |
Parent Company [Member] | ||||
General and administrative expenses | (887,662) | 0 | ||
Other income, net | 5,948 | 0 | ||
Equity of loss in subsidiaries | (1,606,947) | 0 | ||
Net loss | (2,488,661) | 0 | ||
Net income attributable to noncontrolling interest | (3,041) | 0 | ||
Foreign currency translation adjustment | (132,723) | 0 | ||
Comprehensive Loss | $ (2,624,425) | $ 0 |
PARENT-ONLY FINANCIALS CONDEN_4
PARENT-ONLY FINANCIALS CONDENSED STATEMENTS OF CASH FLOWS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities | ||||
Net loss | $ (768,292) | $ (301,217) | $ (2,488,661) | $ (1,111,140) |
Changes in operating assets and liabilities: | ||||
Prepayments, receivables and other assets | (256,244) | 6,797 | ||
Accrued expenses and other liabilities | 107,872 | (10,818) | ||
Cash Flows Used in Operating Activities | (2,462,092) | (417,645) | ||
Cash Flows From Investing Activities: | ||||
Deposits in intangible assets | (421,022) | 0 | ||
Investment in a subsidiary | ||||
Cash Flows Used in Investing Activities | (449,263) | (412) | ||
Cash Flows From Financing Activities: | ||||
Release of escrow receivable | 600,000 | 0 | ||
Cash Flows Used in Financing Activities | 1,161,515 | 335,092 | ||
Net Decrease in Cash and Cash Equivalents | (1,849,847) | (76,090) | ||
Cash and cash equivalents at beginning of period | 11,141,566 | 161,292 | ||
Cash and cash equivalents at end of period | 9,291,719 | 85,202 | 9,291,719 | 85,202 |
Supplemental Cash Flows Information: | ||||
Income tax paid | 0 | 0 | ||
Parent Company [Member] | ||||
Cash Flows From Operating Activities | ||||
Net loss | (2,488,661) | 0 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Equity of loss of subsidiaries | 1,606,947 | 0 | ||
Changes in operating assets and liabilities: | ||||
Prepayments, receivables and other assets | 6,313 | 0 | ||
Accrued expenses and other liabilities | 63,302 | 0 | ||
Cash Flows Used in Operating Activities | (812,099) | 0 | ||
Cash Flows From Investing Activities: | ||||
Deposits in intangible assets | (230,000) | |||
Investment in a subsidiary | (3,300,000) | |||
Cash Flows Used in Investing Activities | (3,530,000) | 0 | ||
Cash Flows From Financing Activities: | ||||
Repayment of borrowing to stockholders | (1,900,000) | 0 | ||
Due to stockholders | 154 | 0 | ||
Release of escrow receivable | 600,000 | 0 | ||
Cash Flows Used in Financing Activities | (1,299,846) | 0 | ||
Net Decrease in Cash and Cash Equivalents | (5,641,945) | 0 | ||
Cash and cash equivalents at beginning of period | 10,961,071 | 0 | ||
Cash and cash equivalents at end of period | $ 5,319,126 | $ 0 | 5,319,126 | 0 |
Supplemental Cash Flows Information: | ||||
Income tax paid | 0 | 0 | ||
Interest paid | 0 | 0 | ||
Non-Cash Investing and Financing Activities: | ||||
IPO issuance costs net against additional paid-in capital | 6,526 | 0 | ||
IPO expenses paid by the Company's stockholders | $ 70,687 | $ 0 |
PARENT-ONLY FINANCIALS (Details
PARENT-ONLY FINANCIALS (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 13 Months Ended | ||||
Jul. 31, 2018 | Mar. 28, 2018 | Mar. 16, 2018 | Jan. 29, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Sep. 18, 2018 | Mar. 31, 2018 | |
Stock Issued During Period, Shares, New Issues | 5,000 | |||||||
Stockholders' Equity, Reverse Stock Split | one-for-two reverse stock split | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 5,000 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 117,750 | |||||||
Allocated Share-based Compensation Expense | $ 27,625 | $ 27,625 | ||||||
Common Stock, Shares, Outstanding | 25,879,400 | 25,879,400 | 25,879,400 | |||||
Common Stock [Member] | ||||||||
Common Stock, Shares, Outstanding | 22,500,000 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 25,000 | |||||||
Parent Company [Member] | ||||||||
Stock Issued During Period, Shares, New Issues | 3,000,000 | 45,000,000 | ||||||
Stock Issued During Period, Value, New Issues | $ 13,500,000 | $ 4,500 | ||||||
Shares Issued, Price Per Share | $ 4 | |||||||
Proceeds from Issuance Initial Public Offering | $ 12,200,000 | |||||||
Parent Company [Member] | Over-Allotment Option [Member] | ||||||||
Stock Issued During Period, Value, New Issues | $ 379,400 |