Document and Entity Information
Document and Entity Information | 9 Months Ended |
Dec. 31, 2022 | |
Document and Entity Information [Abstract] | |
Document Type | S-1/A |
Entity Registrant Name | Senmiao Technology Limited |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001711012 |
Amendment Flag | true |
Amendment Description | AMENDMENT NO.1 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 1,537,609 | $ 1,185,221 | |
Accounts receivable, net, current portion | 204,763 | 418,022 | |
Accounts receivable, a related party | 9,816 | 0 | |
Inventories | 0 | 286,488 | |
Finance lease receivables, net, current portion | 170,337 | 314,264 | |
Prepayments, other receivables and other assets, net | 1,362,817 | 2,713,208 | |
Due from related parties, current portion, net | 659,299 | 682,335 | |
Total current assets | 3,944,641 | 5,599,538 | |
Current assets - discontinued operations | 0 | ||
Property and equipment, net | 3,530,196 | 5,658,773 | |
Other assets | |||
Operating lease right-of-use assets, net | 174,262 | 109,621 | |
Operating lease right-of-use assets, net, related parties | 139,787 | 515,906 | |
Financing lease right-of-use assets, net | 690,365 | 305,933 | |
Intangible assets, net | 819,671 | 959,551 | |
Accounts receivable, net, noncurrent | 0 | 69 | |
Finance lease receivables, net, noncurrent | 50,205 | 92,980 | |
Due from a related party, noncurrent | 5,351,735 | 6,635,746 | |
Other non-current assets | 837,731 | 0 | |
Total other assets | 8,063,756 | 8,619,806 | |
Goodwill | 0 | ||
Other assets - discontinued operations | 0 | ||
Total assets | 15,538,593 | 19,878,117 | |
Current liabilities | |||
Borrowings from a financial institution | 22,857 | 145,542 | |
Accounts payable | 61,090 | 14,446 | |
Advances from customers | 120,871 | 120,629 | |
Accrued expenses and other liabilities | 2,715,209 | 2,444,367 | |
Due to related parties and affiliates | 117,237 | 11,682 | |
Operating lease liabilities | 104,075 | 50,177 | |
Operating lease liabilities - related parties | 163,558 | 330,781 | |
Financing lease liabilities | 402,526 | 304,557 | |
Derivative liabilities | 572,021 | 2,215,204 | |
Current liabilities - discontinued operations | 485,736 | 528,426 | |
Total current liabilities | 4,765,180 | 6,165,811 | |
Other liabilities | |||
Operating lease liabilities, non-current | 97,350 | 47,910 | |
Operating lease liabilities, non-current - related parties | 52,205 | 226,896 | |
Financing lease liabilities, non-current | 289,358 | 1,376 | |
Deferred tax liability | 42,746 | 46,386 | |
Total other liabilities | 481,659 | 322,568 | |
Other liabilities discontinued operations | 0 | ||
Total liabilities | 5,246,839 | 6,488,379 | |
Commitments and contingencies | |||
Mezzanine Equity | |||
Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 1,741 and 5,000 shares issued and outstanding at December 31, 2022 and March 31, 2022, respectively) | 285,802 | 820,799 | |
Stockholders' equity | |||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 7,693,040 and 6,186,783 shares issued and outstanding at December 31, 2022 and March 31, 2022, respectively) * | [1] | 782 | 630 |
Additional paid-in capital | 43,339,412 | 42,803,033 | |
Accumulated deficit | (36,323,523) | (34,601,545) | |
Accumulated other comprehensive loss | (1,327,692) | (109,454) | |
Total Senmiao Technology Limited stockholders' equity | 5,688,979 | 8,092,664 | |
Non-controlling interests | 4,316,973 | 4,476,275 | |
Total equity | 10,005,952 | 12,568,939 | |
Total liabilities, mezzanine equity and equity | $ 15,538,593 | $ 19,878,117 | |
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |
Common stock, issued (in shares) | 7,693,040 | 6,186,783 | 4,978,073 | |
Common stock, outstanding (in shares) | 7,682,908 | 6,186,783 | 4,978,073 | |
Series A Convertible Preferred Stock | ||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred stock, authorized (in shares) | 5,000 | 5,000 | 5,000 | |
Preferred stock, issued (in shares) | 1,741 | 5,000 | 0 | |
Preferred stock, outstanding (in shares) | 1,741 | 5,000 | 0 | |
Net of issuance costs | $ 118,344 | $ 118,344 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues | |||||
Revenues | $ 1,710,172 | $ 1,660,119 | $ 6,000,597 | $ 3,152,592 | |
Revenues, a related party | 30,748 | 323,321 | |||
Total revenues | 1,740,920 | 1,660,119 | 6,323,918 | 3,152,592 | |
Cost of revenues | |||||
Cost of revenues | (1,372,916) | (1,457,589) | (5,038,614) | (5,378,411) | |
Cost of revenues, a related party | (185,254) | (333,756) | |||
Total cost of revenues | (1,558,170) | (1,457,589) | (5,372,370) | (5,378,411) | |
Gross profit (loss) | 182,750 | 202,530 | 951,548 | (2,225,819) | |
Operating expenses | |||||
Selling, general and administrative expenses | (1,385,580) | (2,701,921) | (4,832,658) | (7,102,107) | |
Provision for doubtful accounts, net of recovery | (126,546) | (6,926) | (470,982) | (125,709) | |
Impairments of inventories | (3,085) | 0 | |||
Impairments of long-lived assets and goodwill | (1,975) | (142,516) | |||
Total operating expenses | (1,512,126) | (2,710,822) | (5,306,725) | (7,370,332) | |
Loss from operations | (1,329,376) | (2,508,292) | (4,355,177) | (9,596,151) | |
Other income (expense) | |||||
Other income, net | 320,151 | 97,710 | 807,276 | 81,600 | |
Interest expense | (6,975) | (6,975) | (5,872) | ||
Interest expense on finance leases | (626) | (13,612) | (8,927) | (44,369) | |
Change in fair value of derivative liabilities | 30,557 | 3,536,859 | 1,641,650 | 5,185,309 | |
Issuance cost incurred for issuing series A convertible preferred stock | (821,892) | 0 | (821,892) | ||
Total other income, net | 343,107 | 2,799,065 | 2,433,024 | 4,394,776 | |
Income (loss) before income taxes | (986,269) | 290,773 | (1,922,153) | (5,201,375) | |
Income tax expense | (4,539) | 0 | (4,550) | ||
Net income (loss) from continuing operations | (986,269) | 286,234 | (1,922,153) | (5,205,925) | |
Loss from discontinued operations, net of applicable income taxes | (418,355) | (2,418,757) | |||
Discontinued operation | |||||
Net loss | (986,269) | (132,121) | (1,922,153) | (7,624,682) | |
Net loss attributable to non-controlling interests from continuing operations | 14,928 | 178,808 | 200,175 | 1,322,575 | |
Net loss attributable to non-controlling interests from discontinued operations | 108,772 | 628,877 | |||
Net income (loss) attributable to the Company's stockholders | (971,341) | 155,459 | (1,721,978) | (5,673,230) | |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | 328,208 | 70,638 | (1,177,365) | 48,458 | |
Comprehensive loss | (658,061) | (61,483) | (3,099,518) | (7,576,224) | |
less: Total comprehensive loss attributable to noncontrolling interests | (75,611) | (303,768) | (159,302) | (1,984,990) | |
Total comprehensive income (loss) attributable to stockholders | $ (582,450) | $ 242,285 | $ (2,940,216) | $ (5,591,234) | |
Weighted average number of common stock | |||||
Basic (in shares) | [1] | 7,689,406 | 5,922,655 | 7,016,860 | 5,579,271 |
Diluted (in shares) | [1] | 7,689,406 | 5,922,655 | 7,016,860 | 5,579,271 |
Earning (loss) per share - basic and diluted | |||||
Continuing operations - basic (in dollars per share) | [1] | $ (0.13) | $ 0.08 | $ (0.25) | $ (0.70) |
Continuing operations - diluted (in dollars per share) | [1] | (0.13) | 0.08 | (0.25) | (0.70) |
Discontinued operations - basic (in dollars per share) | [1] | (0.05) | (0.32) | ||
Discontinued operations - diluted (in dollars per share) | [1] | 0 | (0.05) | 0 | (0.32) |
Total earnings (loss) per share - basic | [1] | (0.13) | 0.03 | (0.25) | (1.02) |
Total earnings (loss) per share - diluted | [1] | $ (0.13) | $ 0.03 | $ (0.25) | $ (1.02) |
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - USD ($) | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Non-controlling interest | Total | ||
Beginning balance at Mar. 31, 2020 | $ 290 | $ 27,015,748 | $ (23,704,863) | $ (507,478) | $ (1,331,340) | $ 1,472,357 | ||
Beginning balance (in shares) at Mar. 31, 2020 | [1] | 2,900,882 | ||||||
Net income (loss) | $ 0 | [1] | 0 | (10,360,058) | 0 | (2,302,581) | (12,662,639) | |
Exercise of Series A warrants into common stock | $ 13 | 683,033 | 0 | 0 | 0 | 683,046 | ||
Exercise of Series A warrants into common stock (in shares) | [1] | 126,609 | ||||||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs | $ 51 | 5,743,854 | 0 | 0 | 0 | 5,743,905 | ||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs (in Shares) | [1] | 507,247 | ||||||
Exercise of Placement warrants into common stock | $ 1 | (1) | 0 | 0 | 0 | |||
Exercise of Placement warrants into common stock (in shares) | [1] | 13,335 | ||||||
Fair value of warrants allocated to derivative liabilities | $ 0 | [1] | 995,822 | 0 | 0 | 0 | 995,822 | |
Issuance of common stock and warrants in an underwritten direct offering, net of issuance costs | $ 120 | 5,261,177 | 0 | 0 | 0 | 5,261,297 | ||
Issuance of common stock and warrants in an underwritten direct offering, net of issuance costs (in shares) | [1] | 1,200,000 | ||||||
Issuance of common stock pursuant to exercise of underwriters' over-allotment option, net of issuance costs | $ 18 | 836,982 | 0 | 0 | 0 | 837,000 | ||
Issuance of common stock pursuant to exercise of underwriters' over-allotment option, net of issuance costs (in shares) | [1] | 180,000 | ||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | $ 5 | 444,995 | 0 | 0 | 0 | 445,000 | ||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs (in shares) | [1] | 50,000 | ||||||
Acquisition of business entities | $ 0 | [1] | 0 | 0 | 0 | 333,254 | 333,254 | |
Issuance of restricted stock units (in shares) | [1] | 0 | ||||||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | 1,769,841 | 0 | 0 | 0 | 1,769,841 | ||
Foreign currency translation adjustment | 0 | [1] | 0 | 0 | (331,193) | 16,524 | (314,669) | |
Ending balance at Mar. 31, 2021 | $ 498 | 40,759,807 | (34,064,921) | (838,671) | (3,284,143) | 2,572,570 | ||
Ending balance (in shares) at Mar. 31, 2021 | [2] | 4,978,073 | ||||||
Net income (loss) | $ 0 | [2] | 0 | (6,248,615) | 0 | (1,122,021) | (7,370,636) | |
Exercise of Series A warrants into common stock | $ 1 | 22,014 | 0 | 0 | 0 | 22,015 | ||
Exercise of Series A warrants into common stock (in shares) | [2] | 4,403 | ||||||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs | $ 55 | 2,208,594 | 0 | 0 | 0 | 2,208,649 | ||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs (in Shares) | [2] | 553,192 | ||||||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | [2] | 45,674 | 0 | 0 | 0 | 45,674 | |
Foreign currency translation adjustment | 0 | [2] | 0 | 0 | (7,237) | (11,335) | (18,572) | |
Ending balance at Jun. 30, 2021 | $ 554 | 43,036,089 | (40,313,536) | (845,908) | (4,417,499) | (2,540,300) | ||
Ending balance (in shares) at Jun. 30, 2021 | [2] | 5,535,668 | ||||||
Beginning balance at Mar. 31, 2021 | $ 498 | 40,759,807 | (34,064,921) | (838,671) | (3,284,143) | 2,572,570 | ||
Beginning balance (in shares) at Mar. 31, 2021 | [2] | 4,978,073 | ||||||
Net income (loss) | (7,624,682) | |||||||
Foreign currency translation adjustment | 48,458 | |||||||
Ending balance at Dec. 31, 2021 | $ 618 | 42,436,441 | (39,738,151) | (778,437) | (3,889,787) | (1,969,316) | ||
Ending balance (in shares) at Dec. 31, 2021 | [2] | 6,178,381 | ||||||
Beginning balance at Mar. 31, 2021 | $ 498 | 40,759,807 | (34,064,921) | (838,671) | (3,284,143) | 2,572,570 | ||
Beginning balance (in shares) at Mar. 31, 2021 | [2] | 4,978,073 | ||||||
Net income (loss) | $ 0 | [1] | 0 | (536,624) | 0 | 3,158,371 | 2,621,747 | |
Exercise of Series A warrants into common stock | $ 4 | 22,011 | 0 | 0 | 0 | 22,015 | ||
Exercise of Series A warrants into common stock (in shares) | [1] | 4,403 | ||||||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs | $ 56 | 2,208,593 | 0 | 0 | 0 | 2,208,649 | ||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs (in Shares) | [1] | 553,192 | ||||||
Issuance of restricted stock units | $ 9 | 104,991 | 0 | 0 | 0 | 105,000 | ||
Issuance of restricted stock units (in shares) | [1] | 9,546 | ||||||
Issuance of common stock in purchase of XXTX's remaining NCI | $ 53 | (1,357,637) | 0 | (21,762) | 1,379,346 | 0 | ||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | [1] | 533,167 | ||||||
Issuance of common stock for consulting service | $ 10 | 652,990 | 0 | 0 | 0 | 653,000 | ||
Issuance of common stock for consulting service (in shares) | [1] | 100,000 | ||||||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | [1] | 45,674 | 0 | 0 | 0 | 45,674 | |
Foreign currency translation adjustment | 0 | [1] | 0 | 0 | 80,321 | (15,851) | 64,470 | |
Recognition of non-controlling interest from acquired equity interest of Sichuan Senmiao upon termination of the VIE agreement | 0 | [1] | 366,604 | 0 | 0 | (366,604) | 0 | |
Deconsolidation of discontinued operation | 0 | [1] | 0 | 0 | 670,658 | 3,605,156 | 4,275,814 | |
Ending balance at Mar. 31, 2022 | $ 630 | 42,803,033 | (34,601,545) | (109,454) | 4,476,275 | 12,568,939 | ||
Ending balance (in shares) at Mar. 31, 2022 | [2] | 6,186,783 | ||||||
Beginning balance at Jun. 30, 2021 | $ 554 | 43,036,089 | (40,313,536) | (845,908) | (4,417,499) | (2,540,300) | ||
Beginning balance (in shares) at Jun. 30, 2021 | [2] | 5,535,668 | ||||||
Net income (loss) | $ 0 | [2] | 0 | 419,926 | 0 | (541,851) | (121,925) | |
Issuance of restricted stock units | $ 1 | 104,999 | 0 | 0 | 0 | 105,000 | ||
Issuance of restricted stock units (in shares) | [2] | 9,546 | ||||||
Foreign currency translation adjustment | $ 0 | [2] | 0 | 0 | 2,407 | (6,015) | (3,608) | |
Ending balance at Sep. 30, 2021 | $ 555 | 43,141,088 | (39,893,610) | (843,501) | (4,965,365) | (2,560,833) | ||
Ending balance (in shares) at Sep. 30, 2021 | [2] | 5,545,214 | ||||||
Net income (loss) | $ 0 | [2] | 0 | 155,459 | 0 | (287,580) | (132,121) | |
Issuance of common stock in purchase of XXTX's remaining NCI | $ 53 | (1,357,637) | 0 | (21,762) | 1,379,346 | 0 | ||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | [2] | 533,167 | ||||||
Issuance of common stock for consulting service | $ 10 | 652,990 | 0 | 0 | 0 | 653,000 | ||
Issuance of common stock for consulting service (in shares) | [2] | 100,000 | ||||||
Foreign currency translation adjustment | $ 0 | [2] | 0 | 0 | 86,826 | (16,188) | 70,638 | |
Ending balance at Dec. 31, 2021 | $ 618 | 42,436,441 | (39,738,151) | (778,437) | (3,889,787) | (1,969,316) | ||
Ending balance (in shares) at Dec. 31, 2021 | [2] | 6,178,381 | ||||||
Beginning balance at Mar. 31, 2022 | $ 630 | 42,803,033 | (34,601,545) | (109,454) | 4,476,275 | 12,568,939 | ||
Beginning balance (in shares) at Mar. 31, 2022 | [2] | 6,186,783 | ||||||
Net income (loss) | $ 0 | [2] | 0 | 332,853 | 0 | (88,933) | 243,920 | |
Conversion of preferred stock into common stock | $ 14 | 85,349 | 0 | 0 | 0 | 85,363 | ||
Conversion of preferred stock into common stock (in shares) | [2] | 126,831 | ||||||
Foreign currency translation adjustment | $ 0 | [2] | 0 | 0 | (783,838) | (1,815) | (785,653) | |
Ending balance at Jun. 30, 2022 | $ 644 | 42,888,382 | (34,268,692) | (893,292) | 4,385,527 | 12,112,569 | ||
Ending balance (in shares) at Jun. 30, 2022 | [2] | 6,313,614 | ||||||
Beginning balance at Mar. 31, 2022 | $ 630 | 42,803,033 | (34,601,545) | (109,454) | 4,476,275 | 12,568,939 | ||
Beginning balance (in shares) at Mar. 31, 2022 | [2] | 6,186,783 | ||||||
Net income (loss) | (1,922,153) | |||||||
Foreign currency translation adjustment | (1,177,365) | |||||||
Ending balance at Dec. 31, 2022 | $ 782 | 43,339,412 | (36,323,523) | (1,327,692) | 4,316,973 | 10,005,952 | ||
Ending balance (in shares) at Dec. 31, 2022 | [2] | 7,693,040 | ||||||
Beginning balance at Jun. 30, 2022 | $ 644 | 42,888,382 | (34,268,692) | (893,292) | 4,385,527 | 12,112,569 | ||
Beginning balance (in shares) at Jun. 30, 2022 | [2] | 6,313,614 | ||||||
Net income (loss) | $ 0 | [2] | 0 | (1,083,490) | 0 | (96,314) | (1,179,804) | |
Conversion of preferred stock into common stock | $ 138 | 449,497 | 0 | 0 | 0 | 449,635 | ||
Conversion of preferred stock into common stock (in shares) | [2] | 1,369,294 | ||||||
Foreign currency translation adjustment | $ 0 | [2] | 0 | 0 | (823,291) | 103,371 | (719,920) | |
Ending balance at Sep. 30, 2022 | $ 782 | 43,337,879 | (35,352,182) | (1,716,583) | 4,392,584 | 10,662,480 | ||
Ending balance (in shares) at Sep. 30, 2022 | [2] | 7,682,908 | ||||||
Net income (loss) | $ 0 | [2] | 0 | (971,341) | 0 | (14,928) | (986,269) | |
Cashless exercise of November 2021 Investor warrants into common stock | $ 0 | 0 | 0 | 0 | 0 | 0 | ||
Cashless exercise of November 2021 Investor warrants into common stock (in shares) | [2] | 10,132 | ||||||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | [2] | 1,533 | 0 | 0 | 0 | 1,533 | |
Foreign currency translation adjustment | 0 | [2] | 0 | 0 | 388,891 | (60,683) | 328,208 | |
Ending balance at Dec. 31, 2022 | $ 782 | $ 43,339,412 | $ (36,323,523) | $ (1,327,692) | $ 4,316,973 | $ 10,005,952 | ||
Ending balance (in shares) at Dec. 31, 2022 | [2] | 7,693,040 | ||||||
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022[2]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities: | ||||
Net loss | $ (1,922,153) | $ (7,624,682) | $ 2,621,747 | $ (12,662,639) |
Net loss from discontinued operations | 0 | (2,418,757) | 8,227,892 | (5,187,214) |
Net income (loss) from continuing operations | (1,922,153) | (5,205,925) | (5,606,145) | (7,475,425) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization of property and equipment | 873,480 | 704,741 | 956,400 | 85,530 |
Stock compensation expense | 0 | 653,000 | 653,000 | 445,000 |
Issuance costs for series A convertible preferred stock | 0 | 821,892 | 821,892 | 0 |
Amortization of right-of-use assets | 579,209 | 635,036 | 955,443 | 398,292 |
Amortization of intangible assets | 128,538 | 104,829 | 160,831 | 107,765 |
Provision for doubtful accounts, net of recovery | 470,982 | 125,709 | 235,279 | 299,658 |
Impairments of inventories | 3,085 | 0 | 60,398 | 0 |
Impairments of long-lived assets | 0 | 142,516 | 142,974 | 10,953 |
Gain on disposal of long-lived assets | (596,564) | 0 | 0 | (425) |
Change in fair value of derivative liabilities | (1,641,650) | (5,185,309) | (6,951,482) | 1,710,415 |
Change in operating assets and liabilities | ||||
Accounts receivable | 177,273 | 8,693 | 4,456 | 162,828 |
Accounts receivable, a related party | (9,876) | 0 | ||
Inventories | 322,689 | (93,172) | (260,464) | 172,626 |
Prepayments, other receivables and other assets | 1,115,661 | 683,439 | 28,254 | (1,366,724) |
Finance lease receivables | 187,695 | 556,021 | 634,103 | 348,919 |
Accounts payable | 48,108 | 76,877 | (31,434) | (6,067) |
Advances from customers | 10,048 | (1,812) | 6,678 | 47,895 |
Income tax payable | 0 | (168) | ||
Accrued expenses and other liabilities | 639,657 | (664,848) | (377,965) | 2,123,010 |
Operating lease liabilities | (37,872) | (113,238) | (240,051) | (64,701) |
Operating lease liabilities - related parties | (99,023) | (124,143) | (228,281) | (195,519) |
Net cash provided by (used in) operating activities from continuing operations | 249,287 | (6,875,694) | (9,036,114) | (3,196,138) |
Net cash provided by operating activities from discontinued operations | 0 | 416,522 | (123,167) | (739,929) |
Net Cash Provided by (Used in) Operating Activities | 249,287 | (6,459,172) | (9,159,281) | (3,936,067) |
Cash Flows from Investing Activities: | ||||
Purchases of property and equipment | (1,213,996) | (3,484,051) | (3,223,992) | (2,293,415) |
Cash procced from disposal of long-lived assets | 1,527,550 | 0 | ||
Purchases of intangible assets | (26,408) | (76,637) | (141,730) | (25,347) |
Net cash provided by (used in) investing activities from continuing operations | 287,146 | (3,560,688) | (3,365,915) | (2,310,697) |
Net cash provided by investing activities from discontinued operations | 0 | 22,586 | (111,210) | (200,165) |
Net Cash Provided by (Used in) Investing Activities | 287,146 | (3,538,102) | (3,477,125) | (2,510,862) |
Cash Flows from Financing Activities: | ||||
Net proceeds from issuance of common stock in a registered direct offering | 0 | 5,771,053 | 5,771,053 | 5,743,905 |
Net proceeds from issuance of common stock upon warrants exercised | 0 | 22,015 | 22,015 | 683,046 |
Net proceeds from issuance of series A convertible preferred stock and warrants in a private placement offering | 0 | 4,369,937 | 4,369,937 | 0 |
Borrowings from a financial institution | 0 | 534,112 | ||
Loan to related parties | 0 | (232,751) | 0 | (101,142) |
Repayment from related parties and affiliates | 359,383 | 15,546 | ||
Repayments of current borrowings from financial institutions | (111,615) | (529,226) | (39,613) | 0 |
Principal payments of finance lease liabilities | (349,140) | (333,480) | (433,611) | (2,230,765) |
Net cash provided by (used in) financing activities from continuing operations | (101,372) | 9,617,206 | 9,755,410 | 10,155,896 |
Net cash used in financing activities from discontinued operations | 0 | (1,439,919) | 0 | 103,881 |
Net Cash Provided by (Used in) Financing Activities | (101,372) | 8,177,287 | 9,755,410 | 10,259,777 |
Effect of exchange rate changes on cash and cash equivalents | (82,673) | 173,623 | (381,858) | (208,800) |
Net increase (decrease) in cash and cash equivalents | 352,388 | (1,646,364) | (3,262,854) | 3,604,048 |
Cash and cash equivalents, beginning of the period | 1,185,221 | 4,448,075 | 4,448,075 | 844,027 |
Cash and cash equivalents, end of the period | 1,537,609 | 2,801,711 | 1,185,221 | 4,448,075 |
Less: Cash and cash equivalents from discontinued operations | 0 | (833,060) | 0 | (107,546) |
Cash and cash equivalents from continuing operations, end of period | 1,537,609 | 1,968,651 | 1,185,221 | 4,340,529 |
Supplemental Cash Flow Information | ||||
Cash paid for interest expense | 6,975 | 44,123 | 5,893 | 45,764 |
Non-cash Transaction in Investing and Financing Activities | ||||
Recognition of right-of-use assets and lease liabilities | 917,786 | 196,671 | 273,555 | 3,785,526 |
Recognition of right-of-use assets and lease liabilities, related parties | 118,030 | 180,973 | 181,620 | 0 |
Acquisition of equipment through prepayment and financing lease receivables offset | 0 | 941,263 | ||
Termination of right-of use assets and lease liabilities | 54,546 | 0 | ||
Termination of right-of use assets and lease liabilities, related parties | 252,939 | 0 | ||
Cashless exercise of November 2021 Investor warrants into common stock | 1,533 | 0 | ||
Allocation of fair value of derivative liabilities for issuance of common stock | 0 | 7,933,434 | 7,932,341 | 997,193 |
Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised | 0 | 45,674 | 45,674 | 1,771,213 |
Acquisition of XXTX with payables | 0 | 317,835 | ||
Acquisition of XXTX'S minority interest with issuance of common stock at fair value | $ 0 | $ 1,972,717 | $ 1,972,717 | $ 0 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
ORGANIZATION AND PRINCIPAL ACTIVITIES | SENMIAO TECHNOLOGY LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Senmiao Technology Limited (the “Company”) is a U.S. holding company incorporated in the State of Nevada on June 8, 2017. The Company operates its business in two segments: (i) automobile transaction and related services focusing on the online ride-hailing industry in the People’s Republic of China (“PRC” or “China”) through the Company’s wholly owned subsidiaries, Sichuan Senmiao Yicheng Assets Management Co., Ltd., formerly named Yicheng Financial Leasing Co., Ltd., a PRC limited liability company (“Yicheng”), Chengdu Corenel Technology Co., Ltd., a PRC limited liability company (“Corenel”), and its majority owned subsidiaries, Chengdu Jiekai Yunli Technology Co., Ltd. (“Jiekai”), and Hunan Ruixi Financial Leasing Co., Ltd., a PRC limited liability company (“Hunan Ruixi”), and its equity investee company (an entity 35% owned by Hunan Ruixi) and former variable interest entity (“VIE”), Sichuan Jinkailong Automobile Leasing Co., Ltd., a PRC limited liability company (“Jinkailong”). (ii) online ride-hailing platform services through its own platform (known as Xixingtianxia) as described further below, since October 2020, through Hunan Xixingtianxia Technology Co., Ltd., a PRC limited liability company (“XXTX”), which is a wholly owned subsidiary of Sichuan Senmiao Zecheng Business Consulting Co., Ltd. (“Senmiao Consulting”), a PRC limited liability company and wholly-owned subsidiary of the Company. The Company’s ride hailing platform enables qualified ride-hailing drivers to provide transportation services in Chengdu, Changsha, Guangzhou, and other 23 cities in China as of the filing date of these unaudited condensed consolidated financial statements. Hunan Ruixi holds a business license for automobile sales and financial leasing and has been engaged in automobile financial leasing services and automobile sales since March 2019 and January 2019, respectively. Yicheng holds a business license for automobiles sale and has been engaged in automobile sales since June 2019. Yicheng used to have a license of financial leasing, which has been terminated since June 2022. The Company also has been engaged in operating leasing services through Hunan Ruixi and its equity investee company, Jinkailong since March 2019. Jinkailong used to facilitate automobile sales and financing transactions for its clients, who are primarily ride-hailing drivers and provides them operating lease and relevant after-transaction services. On September 11, 2020, Senmiao Consulting entered into an investment agreement relating to XXTX with all the original shareholders of XXTX (the “XXTX Investment Agreement”), pursuant to which Senmiao Consulting would make an investment of RMB3.16 million (approximately $0.44 million) in XXTX in cash and obtain a 51% equity interest. As of the filing date of these unaudited condensed consolidated financial statements, the Company had remitted the full amount of investment to XXTX pertained to above mentioned XXXT Investment Agreement. On October 23, 2020, the registration procedures for the change in shareholders and registered capital were completed and XXTX became a majority owned subsidiary of Senmiao Consulting. On February 5, 2021, Senmiao Consulting and all the original shareholders of XXTX entered into a supplementary agreement related to XXTX’s Investment agreement (the “XXTX Increase Investment Agreement”). Under the XXTX Increase Investment Agreement, all the shareholders of XXTX agreed to increase the total registered capital of XXTX to RMB50.8 million (approximately $7.14 million). Senmiao Consulting shall pay another investment amounted to RMB36.84 million (approximately $5.18 million) in cash in exchange of additional 27.74% of XXTX’s equity interest. As of the filing date of these unaudited condensed consolidated financial statements, the Company had remit approximately RMB36.60 million ($5.30 million) to XXTX pertained to above mentioned XXTX Increase Investment Agreement. On October 22, 2021, the Company, Senmiao Consulting, XXTX and its other shareholders further entered into a Share Swap Agreement (the “Share Swap Agreement”), pursuant to which the Company, through Senmiao Consulting, purchased all of the remaining equity interests the original shareholders hold in XXTX at a total purchase price of $3.5 million, payable in the Company’s shares of common stock, par value $0.0001 per share at a per share price of the average closing price of a share of common stock reported on the Nasdaq Capital Market for ten (10) trading days immediately preceding the date of the Share Swap Agreement. On November 9, 2021, the issuance of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock for this transaction has been completed and on December 31, 2021, the registration procedures for the change in shareholders was completed. As a result, XXTX became a wholly-owned subsidiary of Senmiao Consulting. As of the filing date of these unaudited condensed consolidated financial statements, Senmiao Consulting has made a cumulative capital contribution of RMB39.76 million (approximately $5.76 million) to XXTX and the remaining amount is expected to be paid before December 31, 2025. As of December 31, 2022, XXTX had ten wholly owned subsidiaries and only one of them had operations. In December 2020, Senmiao Consulting formed Corenel, with a registered capital of RMB10 million (approximately $1.6 million) in Chengdu City, Sichuan Province. Corenel is engaged in automobile operating leases since March 2021. In December 2020, Hunan Ruixi and a third party jointly formed a subsidiary, Chengdu Xichuang Technology Service Co., Ltd. (“Xichuang”), with a registered capital of RMB200,000 (approximately $32,000) in Chengdu City, Sichuan Province. Hunan Ruixi holds 70% of the equity interests of Xichuang. In August 2021, Hunan Ruixi signed an equity transfer agreement with another shareholder of Xichuang. Pursuant to the equity transfer agreement, another shareholder of Xichuang would transfer 30% of its shares to Hunan Ruixi for a consideration of zero. However, in November 2021, Xichuang was dissolved. The dissolution of Xichuang did not have a material impact to the Company’s financial results. In April 2021, the Company formed Senmiao Technology (Hong Kong)., Ltd. (“Senmiao HK”), with a registered capital of $10,000 in Hongkong. The Company holds 99.99% of the equity interests of Senmiao HK. As of the filing date of these unaudited condensed consolidated financial statements, Senmiao HK has no operations. In March 2022, Corenel and another company in Chengdu formed Jiekai, with a registered capital of RMB500,000 (approximately $80,000). Corenel holds 51% of the equity interests of Jiekai. Jiekai is engaged in automobile operating lease business since April 2022. The following diagram illustrates the Company’s corporate structure, including its subsidiaries and equity investee company, as of the filing date of these unaudited condensed consolidated financial statements: Former VIE Agreements with Sichuan Senmiao Senmiao Consulting, Sichuan Senmiao Ronglian Technology Co., Ltd. (“Sichuan Senmiao”) and all the shareholders of Sichuan Senmiao (the “Sichuan Senmiao Shareholders”) entered into an Equity Interest Pledge Agreement, an Exclusive Business Cooperation Agreement, an Exclusive Option Agreement, Power of Attorneys, and Timely Report Agreements in September 2017 (collectively, the “Sichuan Senmiao VIE Agreements”). For the details of such agreements, please refer to the audited financial statements contained in the annual report on Form 10-K filed with the SEC on July 15, 2022. According to the VIE Agreements, Senmiao Consulting was the primary beneficiary of Sichuan Senmiao and the financial statements of Sichuan Senmiao are consolidated in the accompanying unaudited condensed consolidated financial statements. Sichuan Senmiao suffered accumulated loss of approximately $18.0 million as of March 31, 2022 with shareholders’ deficiency of $7.6 million. Due to such loss from Sichuan Senmiao, on March 23, 2022, Senmiao Consulting and other shareholders with 94.5% equity interests of Sichuan Senmiao terminated the VIE Agreements and acquired Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. Sichuan Senmiao became the majority owned subsidiary of Senmiao Consulting accordingly. The termination of the Sichuan Senmiao VIE Agreements had no significant impact on the consolidated financial statements. Former Voting Agreements with Jinkailong’s Other Shareholders Hunan Ruixi entered into two voting agreements signed in August 2018 and February 2020, respectively, as amended (the “Voting Agreements”), with Jinkailong and other Jinkailong’s shareholders holding an aggregate of 65% equity interests. Pursuant to the Voting Agreements, all other Jinkailong’s shareholders will vote in concert with Hunan Ruixi on all fundamental corporate transactions in the event of a disagreement for periods of 20 years and 18 years, respectively, ending on August 25, 2038. On March 31, 2022, Ruixi entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Voting Agreements mentioned above was terminated as of the date of the Termination Agreement. The termination will not impair the past and future legitimate rights and interests of all parties in Jinkailong. As of December 31, 2022, the parties no longer maintain a concerted action relationship with respect to the decision required to take concerted action at its shareholders meetings as stipulated in the Voting Agreements. Each party shall independently express opinions and exercise various rights such as voting rights and perform relevant obligations in accordance with the provisions of laws, regulations, normative documents and the Jinkailong’s articles of association. As a result of the Termination Agreement, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s Consolidated Financial Statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of December 31, 2022 and March 31, 2022, the paid-in capital of Jinkailong is zero. In connection with the deconsolidation and in accordance with ASC 810-10-40-5, the Company recorded a gain on deconsolidation of Jinkailong on March 31, 2022 as follows: March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 In addition, the Company recognized $7,298,208 of related party receivable from Jinkailong as of March 31, 2022, of which, $6,635,746 is required to be repaid over a period from April 2023 to December 2026 based on the agreement between the Company and Jinkailong, classified as due from related parties, noncurrent. Besides, the deconsolidation also excluded $31,263 receivables due from related parties, which was recorded by Jinkailong. As of December 31, 2022, the Company has outstanding balance due from Jinkailong amounted to $5,992,152, net of allowance, of which, $5,351,735 is to be repaid over a period from January 2024 to December 2026, classified as due from related party, noncurrent (refer to Note 4). The Company determined that the deconsolidation of Jinkailong represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45 as discussed in note 4. Former VIE Agreements with Youlu On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The terms of Youlu VIE Agreements were similar to the Sichuan Senmiao VIE Agreements. According to the Youlu VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the consolidated financial statements. After Jinkailong and Youlu were deconsolidated from the Company’s consolidated financial statements at March 31, 2022, there were no assets and liabilities from the Company’s former VIEs included in the Company’s financial statements going forward. Net revenue, loss from operations and net loss of the former VIEs that were included in the Company’s unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2022 and 2021 are as follows: For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021* (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net revenue from continuing operations $ — $ 152 $ — $ 23,380 Net revenue from discontinued operations $ — $ 1,882,930 $ — $ 5,096,441 Loss from operations from continuing operations $ — $ (57,616) $ — $ (107,802) Loss from operations from discontinued operations $ — $ (390,710) $ — $ (2,182,402) Net loss from continuing operations attributable to stockholders $ — $ (57,141) $ — $ (105,760) Net loss from discontinued operations attributable to stockholders — (309,583) — (1,789,880) Net loss attributable to stockholders $ — $ (366,724) $ — $ (1,895,640) * Net revenue, loss from operations and net loss attributable to stockholders for the three and nine months ended December 31, 2021 were retroactively restated for comparative purpose. | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Senmiao Technology Limited (the “Company”) is a U.S. holding company incorporated in the State of Nevada on June 8, 2017. The Company operates its business in two segments: (i) (ii) Xixingtianxia) Hunan Ruixi holds a business license for automobile sales and financial leasing and has been engaged in automobile financial leasing services and automobile sales since March 2019 and January 2019, respectively. Jinkailong facilitated automobile sales and financing transactions for its clients, who are primarily ride-hailing drivers and provides them operating lease and relevant after-transaction services. Yicheng holds a business license for automobiles sale and has been engaged in automobile sales since June 2019. Yicheng used to have a license of financial leasing, which was terminated since June 2022. The Company also has been engaged in operating leasing services through Jinkailong and Hunan Ruixi since March 2019. On September 11, 2020, Senmiao Consulting entered into an investment agreement relating to XXTX with all the original shareholders of XXTX (the “XXTX Investment Agreement”), pursuant to which Senmiao Consulting would make an investment of RMB3.16 million (approximately $0.5 7.8 As of the filing date of these consolidated financial statements, Senmiao Consulting has made a cumulative capital contribution of RMB36.86 million (approximately $5.81 million) to XXTX and the remaining amount is expected to be paid before December 31, 2025. As of March 31, 2022, XXTX had eight wholly owned subsidiaries and only one of them has operations. In December 2020, Senmiao Consulting formed Corenel, with a registered capital of RMB10 million (approximately $1.6 million) in Chengdu City, Sichuan Province. Corenel is engaged in automobile operating leases since March 2021. In December 2020, Hunan Ruixi and a third party jointly formed a subsidiary, Chengdu Xichuang Technology Service Co., Ltd. (“Xichuang”), with a registered capital of RMB200,000 (approximately $32,000) in Chengdu City, Sichuan Province. Hunan Ruixi holds 70% of the equity interests of Xichuang. In August 2021, Hunan Ruixi signed an equity transfer agreement with another shareholder of Xichuang. Pursuant to the equity transfer agreement, another shareholder of Xichuang would transfer 30% of its shares to Hunan Ruixi for free. However, in November 2021, Xichuang was dissolved. The dissolution of Xichuang did not have a material impact to the Company’s financial results. In April 2021, the Company formed Senmiao Technology (Hong Kong)., Ltd. (“Senmiao HK”), with a registered capital of $10,000 in Hongkong. The Company holds 99.99% of the equity interests of Senmiao HK. As of the filing date of these consolidated financial statements, Senmiao HK has no operations. In March 2022, Corenel and another company in Chengdu formed Chengdu Jiekai Technology Ltd. (“Jiekai”), with a registered capital of RMB500,000 (approximately $80,000). Corenel holds 51% of the equity interests of Jiekai. Jiekai is engaged in automobile operating lease business. The following diagram illustrates the Company’s corporate structure, including its subsidiaries and equity investee company, as of the filing date of these consolidated financial statements: Former VIE Agreements with Sichuan Senmiao Senmiao Consulting, Sichuan Senmiao and all the shareholders of Sichuan Senmiao (the “Sichuan Senmiao Shareholders”) entered into an Equity Interest Pledge Agreement, an Exclusive Business Cooperation Agreement, an Exclusive Option Agreement, Power of Attorneys, and Timely Report Agreements in September 2017 (collectively, the “Sichuan Senmiao VIE Agreements”). For the details of such agreements, please refer to the audited financial statements contained in the annual report on Form 10-K filed with the SEC on July 8, 2021. According to the VIE Agreements, Senmiao Consulting was the primary beneficiary of Sichuan Senmiao and the financial statements of Sichuan Senmiao are consolidated in the accompanying consolidated financial statements. On March 23, 2022, Senmiao Consulting and other shareholders with 94.5% equity interests of Sichuan Senmiao terminated the VIE Agreements and acquired Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. Sichuan Senmiao became the majority owned subsidiary of Senmiao Consulting accordingly. The termination of the Sichuan Senmiao VIE Agreements have no significant impact on the consolidated financial statements. Former Voting Agreements with Jinkailong’s Other Shareholders Hunan Ruixi entered into two voting agreements signed in August 2018 and February 2020, respectively, as amended (the “Voting Agreements”), with Jinkailong and other Jinkailong’s shareholders holding an aggregate of 65% equity interests. Pursuant to the Voting Agreements, all other Jinkailong’s shareholders will vote in concert with Hunan Ruixi on all fundamental corporate transactions in the event of a disagreement for periods of 20 years and 18 years, respectively, ending on August 25, 2038. On March 31, 2022, Ruixi entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Voting Agreements mentioned above shall be terminated as of the date of the Termination Agreement. The termination will not impair the past and future legitimate rights and interests of all parties in Jinkailong. As of March 31, 2022, the parties no longer maintain a concerted action relationship with respect to the decision required to take concerted action at its shareholders meetings as stipulated in the Voting Agreements. Each party shall independently express opinions and exercise various rights such as voting rights and perform relevant obligations in accordance with the provisions of laws, regulations, normative documents and the Jinkailong’s articles of association (refer to Note 5). As a result of the Termination Agreement, Jinkailong ceased to be a VIE to Ruixi. The Company, through Ruixi, retains its 35% equity interests in Jinkailong. Former VIE Agreements with Youlu On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The term of Youlu is similar to the Youlu VIE Agreements with Sichuan Senmiao as described above. According to the VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the consolidated financial statements. Total assets and total liabilities of the Company’s VIEs included in the Company’s consolidated financial statements as of March 31, 2022 and 2021 are as follows after Jinkailong and Youlu deconsolidated from the Company’s consolidated financial statements at March 31, 2022: March 31, March 31, 2022 2021 Current assets: Cash and cash equivalents $ — $ 27,229 Accounts receivable, net, current portion — — Prepayments, other receivables and other assets, net — 135 Other receivable- intercompany — 1,718,343 Current assets - discontinued operations (1) — 2,995,558 Total current assets — 4,741,265 Property and equipment, net: Property and equipment, net — — Property and equipment, net - discontinued operations — 454,228 Total property and equipment, net — 454,228 Other assets: Operating lease right-of-use assets, net, related parties — 9,896 Other assets - discontinued operations — 4,674,403 Total other assets — 4,684,299 Total assets $ — $ 9,879,792 Current liabilities: Accrued expenses and other liabilities $ — $ 581,126 Other payable - intercompany — 2,715,847 Due to related parties and affiliates — 82,908 Operating lease liabilities - related parties — 4,989 Current liabilities - discontinued operations (2) — 15,896,580 Total current liabilities — 19,281,450 Other liabilities: Operating lease liabilities, non-current - related parties — 3,850 Other liabilities - discontinued operations — 2,250,393 Total other liabilities — 2,254,243 Total liabilities $ — $ 21,535,693 (1) Includes intercompany receivables of $0 and intercompany payables of $274,731 as of March 31, 2022 and March 31, 2021, respectively. (2) Includes intercompany payables of $0 and $4,203,454 as of March 31, 2022 and March 31, 2021, respectively. Net revenue, loss from operations and net loss of the VIEs that were included in the Company’s consolidated financial statements for the years ended March 31, 2022 and 2021 are as follows: For the Years Ended March 31, 2022 2021* Net revenue from continuing operations $ 32,817 $ — Net revenue from discontinued operations $ 6,830,116 $ 3,978,847 Loss from operations from continuing operations $ (179,068) $ (532,455) Loss from operations from discontinued operations $ (2,537,715) $ (4,254,403) Net loss from continuing operations attributable to stockholders $ (175,283) $ (530,983) Net loss from discontinued operations attributable to stockholders $ (2,032,934) $ (3,722,648) Net loss attributable to stockholders $ (2,208,218) $ (4,253,630) * Net revenue, loss from operations and net loss attributable to stockholders for the year ended March 2021 were retroactively restated for comparative purpose. |
GOING CONCERN
GOING CONCERN | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
GOING CONCERN | ||
GOING CONCERN | 2. GOING CONCERN In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized to finance the working capital requirements of the Company. The Company’s business is capital intensive. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) the net loss of approximately $1.9 million for the nine months ended December 31, 2022; (2) accumulated deficit of approximately $36.3 million as of December 31, 2022; (3) the working capital deficit of approximately $0.8 million as of December 31, 2022; and (4) two purchase commitments of approximately $2.4 million for 200 automobiles. As of the filing date of these unaudited condensed consolidated financial statements, the Company has entered into two purchase contracts with two automobile dealers to purchase a total of 300 automobiles in the amount of approximately $4.7 million, of which, 100 automobiles of approximately $1.6 million have been purchased in cash and delivered to the Company, and approximately $0.7 million has been remitted as purchase deposit. The remaining purchase commitment of approximately $2.4 million of which approximately $1.6 million shall be completed with financing option through the dealer’s designated financial institutions, and approximately $0.8 million shall be remit in installment to be completed before March 31, 2023. Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to curtail or cease its operations. Management is trying to alleviate the going concern risk through the following sources: ● Equity financing to support its working capital; ● Other available sources of financing (including debt) from PRC banks and other financial institutions; and ● Financial support and credit guarantee commitments from the Company’s related parties. Based on the above considerations, management is of the opinion that the Company will probably not have sufficient funds to meet its working capital requirements and debt obligations as they become due one year from the filing date of these unaudited condensed consolidated financial statements, if the Company is unable to obtain additional financing. In addition, the maximum contingent liabilities for automobile purchasers the Company would be exposed to was approximately $46,641 as of December 31, 2022, assuming all the automobile purchasers were in default. There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as (i) the impact of the COVID-19 pandemic on the Company’s business and areas of operations in China, (ii) changes in the demand for the Company’s services, (iii) PRC government policies, (iv) economic conditions in China and worldwide, (v) competitive pricing in the automobile transaction and related service and ride-hailing industries, (vi) changes in the Company’s relationships with key business partners, (vii) the ability of financial institutions in China to provide continued financial support to the Company’s customers, and (viii) the perception of PRC-based companies in the U.S. capital markets. The Company’s inability to secure needed financing when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s viability and results of operations. | 2. GOING CONCERN In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized to finance the working capital requirements of the Company. The Company’s business is capital intensive. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) net loss of approximately $5.6 million from continuing operations for the year ended March 31, 2022, (2) accumulated deficit of approximately $34.9 $0.1 Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to curtail or cease its operations. Management is trying to alleviate the going concern risk through the following sources: ● the Company will continue to seek equity financing to support its working capital; ● other available sources of financing (including debt) from PRC banks and other financial institutions; and ● financial support and credit guarantee commitments from the Company’s related parties. Based on the above considerations, management is of the opinion that the Company will probably not have sufficient funds to meet its working capital requirements and debt obligations as they become due one year from the filing date of these consolidated financial statements, if the Company is unable to obtain additional financing. In addition, the maximum contingent liabilities for automobile purchasers the Company would be exposed to was approximately $0.8 million as of March 31, 2022, assuming all the automobile purchasers were in default. There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as (i) the impact of the COVID-19 pandemic on the Company’s business and areas of operations in China, (ii) changes in the demand for the Company’s services, (iii) PRC government policies, (iv) economic conditions in China and worldwide, (v) competitive pricing in the automobile transaction and related service and ride-hailing industries, (vi) changes in the Company’s relationships with key business partners, (vii) the ability of financial institutions in China to provide continued financial support to the Company’s customers, and (viii) the perception of PRC-based companies in the U.S. capital markets. The Company’s inability to secure needed financing when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s viability and results of operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of December 31, 2022 and for the three and nine months ended December 31, 2022 and 2021 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 interim unaudited 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, 2022, which was filed with the SEC on July 15, 2022. 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, 2022, its unaudited results of operations for the three and nine months ended December 31, 2022 and 2021, and its unaudited cash flows for the nine months ended December 31, 2022 and 2021, 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 subsidiaries. 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 and former VIEs is U.S. dollars (“US$”) and the unaudited condensed consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the unaudited condensed consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, March 31, 2022 2022 Balance sheet items, except for equity accounts 6.8972 6.3400 For the Three Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss 7.1120 6.3937 For the Nine Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.8547 6.4408 (d) Use of estimates In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. (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. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and March 31, 2022: Carrying Value as of Fair Value Measurement as of December 31, 2022 December 31, 2022 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 572,021 $ — $ — $ 572,021 Fair Value Measurement as of Carrying Value as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for nine months ended December 31, 2022 and for the year ended March 31, 2022: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2021 $ 80,268 $ 163,572 $ 397,525 $ 637,561 $ — $ — $ — $ — $ 1,278,926 Derivative liabilities recognized at grant date — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — (45,675) BALANCE as of March 31, 2022 1,913 10,525 44,581 65,543 778,488 58,387 1,165,465 90,302 2,215,204 Change in fair value of derivative liabilities (1,878) (10,342) (34,526) (51,581) (589,804) (44,236) (843,900) (65,383) (1,641,650) Cashless exercise on November 2021 Investor warrant — — — — — — (1,533) — (1,533) BALANCE as of December 31, 2022 (Unaudited) $ 35 $ 183 $ 10,055 $ 13,962 $ 188,684 $ 14,151 $ 320,032 $ 24,919 $ 572,021 The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of December 31, 2022 and March 31, 2022. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of December 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 Expected term (years) 0.47 0.47 2.59 3.12 3.12 3.37 3.37 3.86 3.86 Risk-free interest rate 2.22 % 2.22 % 4.35 % 4.21 % 4.21 % 4.18 % 4.18 % 4.12 % 4.12 % Expected volatility 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % As of March 31, 2022 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022. As of December 31, 2022 and March 31, 2022, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of December 31, 2022 and March 31, 2022. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. (f) Equity method investments The Company accounts for investments in private company by using equity method as the Company determined that it does not have control over Jinkailong under either voting or VIE models in accordance with ASC 323 “Investments- Equity Method and Joint Ventures”. The Company records equity method investments initially at cost and subsequently records its share of the earnings or losses of the investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend. The Company adjusts the carrying amount of an investment for its share of the earnings or losses of the investee after the date of investment and share report the recognized earnings or loses in income. If an investment balance is reduced to zero as a result of cumulative losses, the Company will need to pause the recognition of losses until its share of earnings exceeds the accumulated losses resulting in the investment balance returning to zero. As of December 31, 2022 and March 31, 2022, the Company had equity investment in Jinkailong of 35%, and the carrying value of the investment is $0 for both periods presented. (g) Business combinations and non-controlling 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 at 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the unaudited condensed consolidated statements of cash flows. (h) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 (i) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds received from automobile purchasers as payments for automobiles, funds received from automobile lessees as payments for rentals, which were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. (j) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. 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, 2022 and March 31, 2022, allowance for doubtful accounts amounted to $0 and $112,905, respectively. (k) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. For the three and nine months ended December 31, 2022, $0 and $3,085 impairment of inventories were provided from continuing operations, respectively. (l) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is 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, 2022 and March 31, 2022, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of December 31, 2022 and March 31, 2022, finance lease receivables consisted of the following: December 31, March 31, 2022 2022 (Unaudited) Minimum lease payments receivable $ 288,026 $ 511,030 Less: Unearned interest (67,484) (103,786) Financing lease receivables, net $ 220,542 $ 407,244 Finance lease receivables, net, current portion $ 170,337 $ 314,264 Finance lease receivables, net, non-current portion $ 50,205 $ 92,980 Future scheduled minimum lease payments for investments in sales-type leases as of December 31, 2022 are as follows: Minimum future payments receivable Twelve months ending December 31, 2023 $ 196,715 Twelve months ending December 31, 2024 66,544 Twelve months ending December 31, 2025 24,767 Total $ 288,026 (m) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other equipment, which are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $11 from continuing operations, respectively. For the nine months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $2,936 from continuing operations, respectively. For the three and nine months ended December 31, 2021, the impairment for property and equipment was $6,007 and $35,609 from discontinued operations, respectively. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated statements of operations and comprehensive loss. (n) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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, 2022 and 2021, there was no impairment of intangible assets. (o) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the three and nine months ended December 31, 2022, the Company did not record impairment against goodwill. For the three and nine months ended December 31, 2021, the company recorded an impairment of $0 and $139,580 against goodwill, respectively. (p) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is anti-dilutive. As of December 31, 2022, the Company’s dilutive securities from the outstanding series A convertible preferred stock are convertible into approximately 870,706 shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. (q) Mezzanine Equity (redeemable) The Company evaluates its convertible preferred stock in accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to determine if its convertible preferred stock should be treated as a liability or an equity. As a result, the convertible preferred stock should be treated as an equity as it did not meet the definition of liability instrument. In accordance with ASC 480-10-S99, the convertible preferred stock should be classified as a mezzanine equity, since it contained a change of control redemption right feature which is not solely within the control of the Company. (r) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the unaudited condensed consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. (s) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of December 31, 2022, the Company had outstanding contracts for automobile transaction and related se | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Basis of consolidation The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. 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 and former VIEs is U.S. dollars (“US$”) and the consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: March 31, March 31, 2022 2021 Balance sheet items, except for equity accounts 6.3400 6.5527 For the Years Ended March 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.4178 6.7960 (d) Use of estimates In presenting the consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets and goodwill, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. (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. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2022 and March 31, 2021: Carrying Value at Fair Value Measurement at March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 Carrying Value at Fair Value Measurement at March 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 1,278,926 $ — $ — $ 1,278,926 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 and 2021: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Series B Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2020 $ 315,923 $ 1,371 $ 25,236 $ — $ — $ — $ — $ — $ — $ 342,530 Derivative liabilities recognized at grant date — — — 241,919 755,274 — — — — 997,193 Change in fair value of derivative liabilities 1,234,630 — 138,336 455,162 (117,713) — — — — 1,710,415 Fair value of warrants exercised (1,470,285) — — (299,556) — — — — — (1,769,841) Warrant forfeited due to expiration — (1,371) — — — — — — — (1,371) BALANCE as of March 31, 2021 80,268 — 163,572 397,525 637,561 — — — — 1,278,926 Derivative liabilities recognized at grant date — — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) — (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — — (45,675) BALANCE as of March 31, 2022 $ 1,913 $ — $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 On June 21, 2019, the Company closed a registered direct offering of an aggregate of 178,137 (1,781,361 pre reverse split) shares of common stock, and in connection therewith, issued to the investors (i) for no additional consideration, Series A warrants to purchase up to an aggregate of 133,603 (1,336,021 pre reverse split) shares of common stock, (ii) for nominal additional consideration, Series B warrants to purchase up to a maximum aggregate of 111,632 (1,116,320 pre reverse split) shares of common stock and (iii) placement agent warrants to purchase up to 14,251 (142,509 pre reverse split) shares of common stock (the “June 2019 Placement Agent Warrants”). On August 6, 2020, the Company completed a public offering of 1,200,000 (12,000,000 pre reverse split) shares of the Company’s common stock at $5.0 ($0.50 pre-reverse split) per share (the “Offering Price”), pursuant to an underwriting agreement with The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the several underwriters (the “Underwriters”). On August 13, 2020, the Underwriters exercised their rights to purchase an additional 180,000 (1,800,000 pre reverse split) shares of common stock at the Offering Price. In connection with the offering, the Company issued the Underwriters, on a private placement basis, warrants to purchase up to 56,800 (568,000 pre reverse split) shares of common stock (the “Underwriters’ Warrants”). The Underwriters’ Warrants are exercisable for a period of five years commencing six months from August 4, 2020 at a price per share equal to 125% of the Offering Price and are exercisable on a “cashless” basis. As the underwriting agreement indicated, the Underwriters have the right of first refusal to act as lead or joint investment banker, lead or join book-runner and /or joint placement agent, for each and every future public and private equity and debt offering, including all equity linked financings for the Company, or any successor to or any subsidiary of the Company for a period of twelve months following August 4, 2020, (the “ROFR”). The ROFR was terminated as of February 4, 2021 as disclosed in more details below. On February 10, 2021, the Company completed a registered direct offering of 507,247 (5,072,465 pre reverse split) shares of the Company’s common stock at $13.8 ($1.38 pre-reverse split) per share, pursuant to a placement agency agreement with FT Global Capital, Inc., as exclusive placement agent in connection with this offering. In connection with the offering, the Company issued the placement agent warrants to purchase up to 38,044 (380,435 pre reverse split) shares of its common stock. These warrants are exercisable for a period of five years commencing 180 days from February 8, 2020 at a price of $13.8 ($1.38 pre-reverse split) per share and are exercisable on a “cashless” basis. In addition, the company issued to the Underwriters seven percent of the gross proceeds from the offering and warrants to purchase up to 15,218 (152,174 pre reverse split) shares of its common stock, in consideration for the termination of the ROFR as mentioned above. These warrants are exercisable for a period of five years from February 8, 2020 at a price of $17.25 ($1.725 pre-reverse split) per share. On May 13, 2021, the Company completed a registered direct offering of 553,192 (5,531,916 pre-reverse split) shares of the Company’s common stock at $11.75 ($1.175 pre-reverse split) per share, pursuant to a securities purchase agreement with certain purchasers dated May 11, 2021. As a result, the Company raised approximately $5.8 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 553,192 (5,531,916 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre-reverse split) per share (the “May 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the issuance date. In connection with the offering, the Company paid the placement agent cash commission of approximately $487,500 and issued to it warrants to purchase up to 41,490 (414,894 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre reverse split) per share (the “May 2021 Placement Agent Warrants”), which warrants will be exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. On November 10, 2021, the Company completed a private placement of 5,000 shares of the Company’s series A convertible preferred stock at $1,000 per share, pursuant to a securities purchase agreement with certain institutional investors. As a result, the Company raised approximately $4.4 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 735,295 (7,352,941 pre-reverse split) shares of common stock at an exercise price of $8.20 ($0.82 pre-reverse split) per share (the “November 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the initial exercisability date. In connection with the offering, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre-reverse split) shares of common stock at an exercise price of $6.80 ($0.68 pre-reverse split) per share (the “November 2021 Placement Agent Warrants”), which warrants will be exercisable at any time beginning from the date of six months from the closing of the Offering and expire on the fifth-year anniversary of their issuance. The Series A Convertible Preferred Stock is redeemable as change of control occur. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. The strike price of the Company’s Series A and Series B warrants, the placement agent warrants, the Underwriters’ Warrants, the ROFR warrants, and the investors warrants are denominated in US$ and the Company’s functional currency is RMB; therefore, those warrant shares are not considered indexed to the Company’s own stock which should be classified as derivative liability. The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of March 31, 2022 and March 31, 2021. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of March 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % As of March 31, 2021 June 20, 2019 August 4, 2020 February 10, 2021 Series A Placement Agent Underwriters’ Placement Agent ROFR Granted Date Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 6,993 14,251 31,808 38,044 15,218 Valuation date 3/31/2021 3/31/2021 3/31/2021 3/31/2021 3/31/2021 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 Stock price* $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Expected term (years) 2.22 2.22 4.35 4.87 4.87 Risk-free interest rate 0.20 % 0.20 % 0.73 % 0.88 % 0.88 % Expected volatility 132 % 132 % 132 % 132 % 132 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 As of March 31, 2022 and 2021, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, restricted cash, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of March 31, 2022 and March 31, 2021. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. (f) Business combinations and non-controlling 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling 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 (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 20. (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. Cash and cash equivalents also consist of funds received from automobile purchasers as payment for automobiles, related insurances and taxes to be paid on behalf of the automobile purchasers, which funds were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for 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, and 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 March 31, 2022 and March 31, 2021, allowance for doubtful accounts amounted to $112,905 and $1,739, respectively, was provided for continuing operations. As of March 31, 2021, allowance for doubtful accounts amounted to $76,428 was provided for discontinued operations. (j) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes, and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. As of March 31, 2022, impairments of inventories amounted to $60,398 was provided for certain vehicles held for sale. (k) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as a finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2022 and March 31, 2021, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of March 31, 2022 and March 31, 2021, finance lease receivables consisted of the following: March 31, March 31, 2022 2021 Minimum lease payments receivable $ 511,030 $ 1,343,662 Less: Unearned interest (103,786) (328,585) Financing lease receivables, net $ 407,244 $ 1,015,077 Finance lease receivables, net, current portion $ 314,264 $ 541,605 Finance lease receivables, net, non-current portion $ 92,980 $ 473,472 Future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 are as follows: Minimum future payments receivable Twelve months ending March 31, 2023 $ 345,425 Twelve months ending March 31, 2024 150,633 Twelve months ending March 31, 2025 14,972 Total $ 511,030 (l) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other 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: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the years ended March 31, 2022 and 2021, the Company did not recognize impairment for property and equipment from continuing operations. For the years ended March 31, 2022 and 2021, the impairment for property and equipment was $32,479 and $10,459 from discontinued operations, respectively. 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 consolidated statements of operations and comprehensive loss. (m) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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 years ended March 31, 2022 and 2021, there was no impairment of intangible assets. (n) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the years ended March 31, 2022 and 2021, the Company recorded an impairment of $139,930 and $0 against goodwill, respectively. (o) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is ant |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
DISCONTINUED OPERATIONS | ||
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS Discontinued operations- Online P2P lending services On October 17, 2019, the Board approved the plan under which the Company has discontinued and is winding down its online P2P lending services business (the “Plan”). The Company determined that the operation of its online P2P lending services business was not viable in light of the tightened regulations on online peer-to-peer lending in China generally and the unofficial request from local regulator to reduce the Company’s online peer-to-peer lending transaction volume on a monthly basis. The Company also determined that the discontinuation of its online P2P lending services business would allow the Company to focus its resources on its automobile financing facilitation and transaction business. In connection with the Plan, the Company ceased facilitation of loan transactions on its online lending platform and assumed all the outstanding loans from investors on the platform. The decision and action taken by the Company of discontinuing the online lending services business represented a major shift that had a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The fair value of discontinued operations, determined as of October 17, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations including the assumption of all the outstanding loans from investors on the platform, $143,668 of accounts receivable, $3,760,599 of other receivables, and $143,943 of prepayments for impaired intangible assets were indicated as of the date the Company’s Board of Directors approved the Plan on October 17, 2019, and the Company recognized $4,048,210 provision for doubtful accounts as of December 31, 2019 related to the Company’s online lending services business, while the Company did not recognize any additional provision for doubtful accounts for the three and nine months ended December 31, 2022. The following table sets forth the reconciliation of the carrying amounts of major classes liabilities from discontinued operations of Online P2P lending services in unaudited condensed consolidated balance sheet as of December 31, 2022 and consolidated balance sheet as of March 31, 2022. Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: December 31, March 31, 2022 2022 (Unaudited) Current liabilities Accrued expenses and other liabilities $ 468,376 $ 509,540 Due to a stockholder 17,360 18,886 Total current liabilities 485,736 528,426 Discontinued operation- Jinkailong On March 31, 2022, Ruixi, a majority owned subsidiary of the Company, holding 35% equity interest of Jinkailong, entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on August 26, 2018 (“Voting Agreement No.1”) and the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on February 13, 2020 (“Voting Agreement No.2”, collectively, “Voting Agreements”) shall be terminated as of the date of the Termination Agreement. As a result, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s consolidated financial statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of December 31, 2022, the paid-in capital of Jinkailong is zero. The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended December 31, 2022 and 2021. For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $ — $ 1,882,930 $ — $ 5,096,441 Cost of revenue — (1,375,818) — (4,295,661) Gross profit — 507,112 — 800,780 Operating expenses Selling, general and administrative expenses — (525,673) — (2,597,474) Amortization of intangible assets — (395,398) — (395,398) Impairments of intangible assets and goodwill — (6,007) — (35,609) Recovery of bad debts expense — 29,256 — 45,299 Total operating expenses — (897,822) — (2,983,182) Loss from discontinued operations — (390,710) — (2,182,402) Other expense, net — (27,645) — (236,355) Income (loss) before income taxes — (418,355) — (2,418,757) Income tax expenses — — — — Net loss — (418,355) — (2,418,757) Less: net loss from discontinued operations attributable to noncontrolling interest — (108,772) — (628,877) Net loss attributable to stockholders $ — $ (309,583) $ — $ (1,789,880) | 5. DISCONTINUED OPERATIONS Discontinued operations- Online P2P lending services On October 17, 2019, the Board approved the Plan under which the Company has discontinued and is winding down its online P2P lending services business. The Company determined that the operation of its online P2P lending services business was not viable in light of the tightened regulations on online peer-to-peer lending in China generally and the unofficial request from local regulator to reduce the Company’s online peer-to-peer lending transaction volume on a monthly basis. The Company also determined that the discontinuation of its online P2P lending services business would allow the Company to focus its resources on its automobile financing facilitation and transaction business. In connection with the Plan, the Company ceased facilitation of loan transactions on its online lending platform and assumed all the outstanding loans from investors on the platform. The decision and action taken by the Company of discontinuing the online lending services business represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The fair value of discontinued operations, determined as of October 17, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations including the assumption of all the outstanding loans from investors on the platform, $143,668 of accounts receivable, $3,760,599 of other receivables, and $143,943 of prepayments for impaired intangible assets were indicated as of the date the Company’s Board of Directors approved the Plan on October 17, 2019, and the Company recognized $4,048,210 provision for doubtful accounts as of September 30, 2019 related to the Company’s online lending services business, while the Company did not recognize any additional provision for doubtful accounts for the year ended March 31, 2022. The following table sets forth the reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations of Online P2P lending services in consolidated balance sheet as of March 31, 2022 and March 31, 2021. Carrying amounts of major classes of assets included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current assets Prepayments, other receivables and other assets, net $ — $ 393,348 Total current assets — 393,348 Property and equipment, net — 5,592 Total assets $ — $ 398,940 Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current liabilities Accrued expenses and other liabilities $ 509,540 $ 2,288,066 Due to a stockholder 18,886 48,795 Total current liabilities 528,426 2,336,861 Total liabilities $ 528,426 $ 2,336,861 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Online P2P lending services in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ — $ 7,153 Operating expenses Selling, general and administrative expenses — (88,438) Total operating expenses — (88,438) Loss from discontinued operations — (81,285) Other income, net — 19,309 Loss before income taxes — (61,976) Income tax expenses — — Net loss attributable to stockholders $ — $ (61,976) Discontinued operation- Jinkailong On March 31, 2022, Ruixi, a majority owned subsidiary of the Company, holding 35% equity interest of Jinkailong, entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on August 26, 2018 (“Voting Agreement No.1”) and the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on February 13, 2020 (“Voting Agreement No.2”, collectively, “Voting Agreements”) shall be terminated as of the date of the Termination Agreement. As a result, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s Consolidated Financial Statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of March 31, 2022, the paid-in capital of Jinkailong is zero. In connection with the deconsolidation and in accordance with ASC 810-10-40-5, the Company recorded a gain on deconsolidation of Jinkailong as follows: Consolidation included Jinkailong as of Deconsolidation Consolidation as of March 31, 2022 of Jinkailong March 31, 2022 ASSETS Current assets Cash and cash equivalents $ 1,241,452 $ (56,231) $ 1,185,221 Accounts receivable, net, current portion 766,373 (348,351) 418,022 Inventories 286,488 — 286,488 Finance lease receivables, net, current portion 314,264 — 314,264 Prepayments, other receivables and other assets, net 3,699,361 (986,153) 2,713,208 Due from related parties, current portion (1) 51,135 631,200 682,335 Total current assets 6,359,073 (759,535) 5,599,538 Property and equipment, net Property and equipment, net 5,916,327 (257,554) 5,658,773 Total property and equipment, net 5,916,327 (257,554) 5,658,773 Other assets Operating lease right-of-use assets, net 306,330 (196,709) 109,621 Operating lease right-of-use assets, net, related parties 515,906 — 515,906 Financing lease right-of-use assets, net 1,349,922 (1,043,989) 305,933 Intangible assets, net 959,551 — 959,551 Accounts receivable, net, noncurrent 2,732 (2,663) 69 Finance lease receivables, net, noncurrent 92,980 — 92,980 Due from a related party, noncurrent (1) — 6,635,746 6,635,746 Total other assets 3,227,421 5,392,385 8,619,806 Total assets $ 15,502,821 $ 4,375,296 $ 19,878,117 LIABILITIES AND EQUITY (DEFICIENCY) Current liabilities Borrowings from financial institutions $ 471,913 $ (326,371) $ 145,542 Accounts payable 14,446 - 14,446 Advances from customers 1,087,928 (967,299) 120,629 Income tax payable 17,992 (17,992) — Accrued expenses and other liabilities 7,316,269 (4,871,902) 2,444,367 Due to related parties and affiliates 478,825 (467,143) 11,682 Operating lease liabilities 164,321 (114,144) 50,177 Operating lease liabilities - related parties 330,781 — 330,781 Financing lease liabilities 3,502,481 (3,197,924) 304,557 Derivative liabilities 2,215,204 — 2,215,204 Current liabilities - discontinued operations 528,426 — 528,426 Total current liabilities 16,128,586 (9,962,775) 6,165,811 Other liabilities Borrowings from financial institutions, noncurrent 9,271 (9,271) — Operating lease liabilities, non-current 135,323 (87,413) 47,910 Operating lease liabilities, non-current - related parties 226,896 — 226,896 Financing lease liabilities, non-current 793,980 (792,604) 1,376 Deferred tax liability 46,386 — 46,386 Total other liabilities 1,211,856 (889,288) 322,568 Total liabilities 17,340,442 (10,852,063) 6,488,379 Commitments and contingencies Mezzanine Equity (redeemable) Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 shares issued and outstanding at December 31, 2021), net of issuance costs of $118,344 820,799 — 820,799 Stockholders’ equity (deficiency) Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 shares issued and outstanding at March 31, 2022.) (2) 630 — 630 Additional paid-in capital 42,803,033 — 42,803,033 Accumulated deficit (45,553,090) 10,951,545 (34,601,545) Accumulated other comprehensive income (loss) (780,112) 670,658 (109,454) Total Senmiao Technology Limited stockholders’ equity (deficiency) (3,529,539) 11,622,203 8,092,664 Non-controlling interests 871,119 3,605,156 4,476,275 Total equity (deficiency) 2,658,420 15,227,359 12,568,939 Total liabilities and equity (deficiency) $ 15,502,821 $ 4,375,296 $ 19,878,117 (1) As result of deconsolidation, the Company recognized $7,298,208 of related party receivable from Jinkailong, of which, $6,635,746 is to be repaid over a period from April 2023 to December 2026, classified as due from related parties, noncurrent. Besides, the deconsolidation also excluded $31,263 receivables due from related parties, which was recorded by Jinkailong. (2) Giving retroactive effect to the 1-for-10 The gain on deconsolidation of Jinkailong was calculated as follows: March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 The Company determined that the deconsolidation of Jinkailong represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The following table sets forth the reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations of Jinkailong in consolidated balance sheet as of March 31, 2022 and March 31, 2021. Carrying amounts of major classes of assets included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current assets Cash and cash equivalents $ — $ 107,546 Accounts receivable, net — 935,164 Prepayments, receivables and other assets, net — 1,245,195 Due from related parties — 39,572 Total current assets — 2,327,477 Property and equipment, net — 448,816 Other assets Operating lease right-of-use assets, net — 265,470 Financing lease right-of use assets, net — 4,201,693 Accounts receivable, net, noncurrent — 207,240 Total other assets — 4,674,403 Total assets $ — $ 7,450,696 Carrying amounts of major classes of liabilities included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current liabilities Borrowings from financial institutions $ — $ 310,662 Advance from customers — 45,413 Income tax payable — 17,408 Accrued expenses and other liabilities — 3,782,365 Due to related parties and affiliates — 269,918 Operating lease liabilities — 99,831 Finance lease liabilities — 4,814,808 Total current liabilities — 9,340,405 Other liabilities Borrowings from financial institutions, noncurrent — 44,962 Operating lease liabilities, non-current — 167,822 Financing lease liabilities, non-current — 2,037,609 Total other liabilities — 2,250,393 Total liabilities $ — $ 11,590,798 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ 6,830,116 $ 3,971,694 Cost of revenues (5,183,806) (3,985,413) Gross profit 1,646,310 (13,719) Operating expenses Selling, general and administrative expenses (4,139,800) (4,367,529) Long live assets impairment (32,479) (119,886) Recovery of (Provision for) doubtful account (11,746) 328,016 Total operating expenses (4,184,025) (4,159,399) Loss from discontinued operations (2,537,715) (4,173,118) Other expense, net (209,494) (945,825) Loss before income taxes (2,747,209) (5,118,943) Income tax expenses — (6,295) Net Loss (2,747,209) (5,125,238) Less: net loss from discontinued operations attributable to noncontrolling interest 714,274 1,332,562 Net loss attributable to stockholders $ (2,032,935) $ (3,792,676) Discontinued operation- Youlu On March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the Company recognized a gain of $ 23,556 from the termination. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | ||
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable include a portion of bundled lease arrangements on fixed minimum monthly payments to be paid by the automobile purchasers arising from automobile sales and services fees, net of unearned interest income, discounted using the Company’s lease pricing interest rates. As of December 31, 2022 and March 31, 2022, accounts receivables were comprised of the following: December 31, March 31, 2022 2022 (Unaudited) Receivables of automobile sales due from automobile purchasers $ 107,246 $ 392,530 Receivables of service fees due from automobile purchasers 15,949 17,350 Receivables of online ride hailing fees from online ride-hailing drivers 46,848 121,116 Receivables of operating lease 34,720 — Less: Allowance for doubtful accounts — (112,905) Accounts receivable, net $ 204,763 $ 418,091 Accounts receivable, net, current portion $ 204,763 $ 418,022 Accounts receivable, net, non-current portion $ — $ 69 Movement of allowance for doubtful accounts for December 31, 2022 and March 31, 2022 are as follows: December 31, March 31, 2022 2022 (Unaudited) Beginning balance $ 112,905 $ 78,167 Addition 3,392 153,988 Write off (107,820) (44,227) Deconsolidation of Jinkailong — (76,428) Translation adjustment (8,477) 1,405 Ending balance $ — $ 112,905 | 6. ACCOUNTS RECEIVABLE, NET Accounts receivable include a portion of bundled lease arrangements on fixed minimum monthly payments to be paid by the automobile purchasers arising from automobile sales and services fees, net of unearned interest income, discounted using the Company’s lease pricing interest rates. As of March 31, 2022 and March 31, 2021, accounts receivable were comprised of the following: March 31, March 31, 2022 2021 Receivables of automobile sales due from automobile purchasers $ 392,530 $ 760,126 Receivables of service fees due from automobile purchasers 17,350 731,962 Receivables of online ride hailing fees from online ride-hailing drivers 121,116 162,197 Receivables of operating lease — 170,707 Less: Unearned interest — (40,447) Less: Allowance for doubtful accounts (112,905) (78,167) Accounts receivable, net 418,091 1,706,378 Accounts receivable, net – discontinued operations — (1,142,404) Accounts receivable, net – continuing operations $ 418,091 $ 563,974 Accounts receivable, net, current portion – continuing operations $ 418,022 $ 502,031 Accounts receivable, net, non-current portion – continuing operations 69 61,943 Accounts receivable, net, current portion – discontinued operations — 935,164 Accounts receivable, net, non-current portion – discontinued operations $ — $ 207,240 Movement of allowance for doubtful accounts for March 31, 2022 and March 31, 2021 are as follows: March 31, March 31, 2022 2021 Beginning balance $ 78,167 $ 379,689 Addition 153,988 374,785 Recovery — (209,723) Write off (44,227) (485,384) Deconsolidation of Jinkailong (76,428) — Translation adjustment 1,405 18,800 Ending balance $ 112,905 $ 78,167 |
INVENTORIES
INVENTORIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INVENTORIES | ||
INVENTORIES | 6. INVENTORIES December 31, March 31, 2022 2022 (Unaudited) Automobiles (i) $ — $ 286,488 (i) As of December 31, 2022 and March 31, 2022, the Company owned 0 and 36 automobiles with a total value of $0 and $286,488 , net of impairment, for sale or sales-type leases, respectively. At the end of each quarter, the Company compared the cost of automobiles with their net realizable value and recognized impairments of $0 and $3,085, respectively for certain automobiles for sale for the three and nine months ended December 31, 2022. For the three and nine months ended December 31, 2021, the Company did not recognized impairments for the inventories. As of March 31, 2022, an impairment of $60,398 was recognized for certain automobiles for sale. | 7. INVENTORIES March 31, March 31, 2022 2021 Automobiles (i) $ 286,488 $ 127,933 (i) As of March 31, 2022, the Company owned 36 automobiles with a total value of $346,886 for sale or sales-type leases. As of March 31, 2021, the Company owned three automobiles with a total value of $47,410 for sale, and six automobiles with a total value of $80,523 for either leasing or sale. As of March 31, 2022 and March 31, 2021, management compared the cost of automobiles with their net realizable value and recognized impairments of $60,398 and $0 for certain automobiles for sale, respectively. |
PREPAYMENTS, OTHER RECEIVABLES
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | ||
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | 7. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS As of December 31, 2022 and March 31, 2022, the prepayments, receivables and other assets were comprised of the following: December 31, March 31, 2022 2022 (Unaudited) Deposits (i) $ 618,689 $ 731,279 Receivables from aggregation platforms (ii) 253,168 163,384 Prepaid expenses (iii) 242,779 957,200 Due from automobile purchasers, net (iv) 103,333 238,421 Employee advances 8,951 11,054 Value added tax (“VAT”) recoverable (v) 93,214 597,884 Others 42,683 13,986 Total prepayments, receivables and other assets $ 1,362,817 $ 2,713,208 (i) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (ii) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. ( iii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense and etc. that will expire within one year. (iv) Due from automobile purchasers, net The balance due from automobile purchasers represented the payments of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. As of December 31, 2022 and March 31, 2022, the Company did not record allowance against doubtful receivables. During the nine months ended December 31, 2022, the Company did not recover allowances while during the nine months ended December 31, 2021, the Company recorded additional allowances of $55,459 and wrote off balance due from automobile purchasers of $32,201 from continuing operations. During the nine months ended December 31, 2021, the Company recorded additional allowances of $24,838, and recovered allowance against the balance due from automobile purchasers of $12,308 while wrote off balance due from automobile purchaser of $26,555 from discontinued operations. (v) Value added tax (“VAT”) recoverable The balance represented the amount of VAT, which resulted from historical purchasing activities and could be further used for deducting future VAT in PRC. | 8. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS As of March 31, 2022 and March 31, 2021, the prepayments, receivables and other assets were comprised of the following: March 31, March 31, 2022 2021 Receivables from borrowers of online lending platform, net (i) $ — $ 393,348 Prepaid expenses (ii) 957,200 829,032 Deposits (iii) 731,279 537,619 Value added tax (“VAT”) recoverable 597,884 99,445 Due from automobile purchasers, net (iv) 238,421 504,792 Receivables from aggregation platforms (v) 163,384 867,614 Prepayments for automobiles (vi) — 1,026,802 Employee advances 11,054 9,739 Others 13,986 30,235 Total prepayments, receivables and other assets 2,713,208 4,298,626 Total prepayments, receivables and other assets - discontinued operations — (1,638,543) Total prepayments, receivables and other assets - continuing operations $ 2,713,208 $ 2,660,083 (i ) Receivables from borrowers of online lending platform, net The balance of receivables from borrowers of online lending platform represented the outstanding loans the Company assumed from investors on the Company’s discontinued P2P lending platform, which will be collected from related borrowers. As of March 31, 2022 and March 31, 2021, the Company recorded allowance of $4,024,651 and $3,894,011, respectively, against doubtful receivables. (ii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense and etc. that will expire within one year. (iii) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (iv) Due from automobile purchasers, net 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. As of March 31, 2022 and 2021, the Company recorded allowance of $0 and $3,240, from continuing operations, respectively, against doubtful receivables. As of March 31, 2021, the Company recorded allowance of $38,519 from discontinued operations against doubtful receivables. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $84,600 and $175,460, respectively, while wrote off balance due from automobile purchasers of $84,600 and $172,336, respectively, and recovered allowance against the balance due from automobile purchasers of $3,308 and $0, respectively from continuing operations. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $35,983 and $93,246, respectively, while wrote off balance due from automobile purchasers of $1,134 and $295,741, respectively, and recovered allowance against the balance due from automobile purchasers of $12,352 and $125,940, respectively from discontinued operations. (v) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. (v i) Prepayments for automobiles The balance represented advanced payments in purchasing automobiles from auto dealers or other parties. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 9 Months Ended |
Dec. 31, 2022 | |
OTHER NON-CURRENT ASSETS | |
OTHER NON-CURRENT ASSETS | 9. OTHER NON-CURRENT ASSETS December 31, March 31, 2022 2022 (Unaudited) Prepayments of automobiles purchased (i) $ 837,731 $ — (i) In September and October 2022, the Company entered into two automobile purchase agreements (“Purchase Agreements”) with two third parties to purchase a total of 130 automobile which amounted to $2,098,533 . As of December 31, 2022, the Company has received possession of 20 automobiles and made prepayments of $837,731 towards the remaining purchase pertaining to the Purchase Agreements. The Company expects to complete the remaining purchase by March 31, 2023. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | ||
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: December 31, March 31, 2022 2022 (Unaudited) Leasehold improvements $ 182,429 $ 198,463 Computer equipment 44,433 47,849 Office equipment, fixtures and furniture 78,036 81,898 Automobiles 4,652,593 6,463,698 Subtotal 4,957,491 6,791,908 Less: accumulated depreciation and amortization (1,427,295) (1,133,135) Total property and equipment, net $ 3,530,196 $ 5,658,773 Depreciation expense from continuing operations for the three and nine months ended December 31, 2022 were amounted to $266,998 and $873,480, respectively. Depreciation expense from continuing operations for three and nine months ended December 31, 2021 amounted to $277,783 and $704,741, respectively. Depreciation expense from discontinued operations for three and nine months ended December 31, 2021 amounted to $50,768 and $144,901, respectively. | 9. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: March 31, March 31, 2022 2021 Leasehold improvements $ 198,463 $ 192,020 Electronic devices 47,849 53,200 Office equipment, fixtures and furniture 81,898 104,735 Vehicles 6,463,698 3,778,811 Subtotal 6,791,908 4,128,766 Less: accumulated depreciation and amortization (1,133,135) (423,027) Total property and equipment, net 5,658,773 3,705,739 Total property and equipment, net - discontinued operations — (454,408) Total property and equipment, net - continuing operations $ 5,658,773 $ 3,251,331 Depreciation expense from continuing operations for the years ended March 31, 2022 and 2021 amounted to $956,400 and $85,530, respectively. Depreciation expense from discontinued operations for the years ended March 31, 2022 and 2021 amounted to $170,177 and $183,683, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INTANGIBLE ASSETS, NET | ||
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: December 31, March 31, 2022 2022 (Unaudited) Software $ 793,195 $ 796,042 Online ride-hailing platform operating licenses 439,662 450,701 Subtotal 1,232,857 1,246,743 Less: accumulated amortization (413,186) (287,192) Total intangible assets, net $ 819,671 $ 959,551 Amortization expense from continuing operations totaled $34,814 and $128,538 for the three and nine months ended December 31, 2022, respectively. Amortization expense from continuing operations totaled $30,186 and $104,829 for the three and nine months ended December 31, 2021, respectively. The following table sets forth the Company’s amortization expense for the next five years ending: Amortization expenses Twelve months ending December 31, 2023 $ 179,616 Twelve months ending December 31, 2024 169,528 Twelve months ending December 31, 2025 133,240 Twelve months ending December 31, 2026 85,157 Twelve months ending December 31, 2027 78,586 Thereafter 173,544 Total $ 819,671 | 10. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: March 31, March 31, 2022 2021 Software $ 796,042 $ 794,548 Online ride-hailing platform operating licenses 450,701 297,258 Less: Accumulated amortization (287,192) (123,675) Total intangible assets, net $ 959,551 $ 968,131 Amortization expense from continuing operations totaled $160,831 and $107,765 for the years ended March 31, 2022 and 2021, respectively. The following table sets forth the Company’s amortization expense for the next five years ending: Amortization expenses Twelve months ending March 31, 2023 $ 186,772 Twelve months ending March 31, 2024 178,660 Twelve months ending March 31, 2025 171,289 Twelve months ending March 31, 2026 111,011 Twelve months ending March 31, 2027 79,563 Thereafter 232,256 Total $ 959,551 |
BORROWINGS FROM A FINANCIAL INS
BORROWINGS FROM A FINANCIAL INSTITUTION | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
BORROWINGS FROM A FINANCIAL INSTITUTION | ||
BORROWINGS FROM A FINANCIAL INSTITUTION | 11. BORROWINGS FROM A FINANCIAL INSTITUTION The borrowings from a financial institution in China represented the short-term loans of $22,857 and $145,542 as of December 31, 2022 and March 31, 2022, respectively. Such borrowings bearing interest rate of 13.04% per annum as of December 31, 2022 and March 31, 2022, which are to be repaid within the next 12 months. The interest expense for the three and nine months ended December 31, 2022 was $6,975 from continuing operations. The interest expense for the three and nine months ended December 31, 2021 was $0 and $5,872 from continuing operations. The interest expense for the three and nine months ended December 31, 2021 was $16,475 and $38,251 from discontinued operations. | 11. BORROWINGS FROM A FINANCIAL INSTITUTIONS The borrowings from a certain financial institution in China represented the short-term loans of $145,542 as of March 31, 2022. Such borrowings bearing interest rate of 13.04% per annum as of March 31, 2022, which is to be repaid within the next 12 months, were classified as borrowings from financial institutions, current. The interest expense for the years ended March 31, 2022 and 2021 was $5,893 and $0, from continuing operations, respectively. The interest expense for the years ended March 31, 2022 and 2021 was $501,361 and $579,870 from discontinued operations, respectively, of which, $450,889 and $531,954 were due to continuing operations and eliminated in the consolidation statements of operations and comprehensive loss. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | 12. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, March 31, 2022 2022 (Unaudited) Accrued payroll and welfare $ 1,305,857 $ 1,176,442 Payables to drivers from aggregation platforms (i) 845,726 806,921 Deposits (ii) 555,513 783,830 Accrued expenses 261,085 94,106 Other taxes payable 113,083 5,260 Loan repayments received on behalf of financial institutions (iii) 63,989 28,704 Payables for expenditures on automobile transaction and related services 26,562 56,222 Other payables 11,770 2,422 Total accrued expenses and other liabilities 3,183,585 2,953,907 Total accrued expenses and other liabilities - discontinued operations (468,376) (509,540) Total accrued expenses and other liabilities - continuing operations $ 2,715,209 $ 2,444,367 (i) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (ii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iii) 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. | 12. ACCRUED EXPENSES AND OTHER LIABILITIES March 31, March 31, 2022 2021 Payables to investors of online lending platform (i) $ — $ 1,795,066 Accrued payroll and welfare 1,176,442 1,306,509 Payables to drivers from aggregation platforms (ii) 806,921 2,352,264 Deposits (iii) 783,830 1,639,681 Accrued expenses 94,106 6,090 Payables for expenditures on automobile transaction and related services 56,222 159,388 Loan repayments received on behalf of financial institutions (iv) 28,704 839,770 Other taxes payable 5,260 398,220 Other payables (v) 2,422 446,670 Total accrued expenses and other liabilities 2,953,907 8,943,658 Total accrued expenses and other liabilities - discontinued operations (509,540) (6,070,431) Total accrued expenses and other liabilities - continuing operations $ 2,444,367 $ 2,873,227 (i) The balance of payables to investors of online lending platform represented the outstanding loans from investors on the Company’s discontinued P2P lending platform, which was assumed by the Company in connection with the Plan to discontinue its online lending services business. As of March 31, 2022, the Company has fully settled the outstanding loans. (ii) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (iii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iv) 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. (v) The balance of other payables represented amount due to suppliers and vendors for operations purposes. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
EMPLOYEE BENEFIT PLAN | ||
EMPLOYEE BENEFIT PLAN | 13. EMPLOYEE BENEFIT PLAN The Company has made employee benefit plan in accordance with relevant PRC regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The contributions made by the Company were $107,638 and $338,279 for the three and nine months ended December 31, 2022, respectively, from continuing operations of the Company. The contributions made by the Company were $130,591 and $383,896 for the three and nine months ended December 31, 2021, respectively, for the Company’s continuing operations. The contributions made by the Company were $78,618 and $182,128 for the three and nine months ended December 31, 2021, respectively, for the Company’s discontinued operations. As of December 31, 2022 and March 31, 2022, the Company did not make adequate employee benefit contributions in the amount of $885,967 and $963,824, respectively, from continuing operations of the Company. | 13. EMPLOYEE BENEFIT PLAN The Company has made employee benefit plan in accordance with relevant PRC regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The contributions made by the Company were $602,641 and $73,047 for the years ended March 31, 2022 and 2021, respectively, from continuing operations of the Company. The contributions made by the Company were $464,159 and $340,517 for the years ended March 31, 2022 and 2021, respectively, for the Company’s discontinued operations. As of March 31, 2022 and March 31, 2021, the Company did not make adequate employee benefit contributions in the amount of $963,824 and $111,534, respectively, from continuing operations of the Company. As of March 31, 2021, the Company did not make adequate employee benefit contributions in the amount of $897,091 from discontinued operations of the Company. The Company accrued the amount in accrued payroll and welfare. |
EQUITY
EQUITY | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
EQUITY | ||
EQUITY | 14. EQUITY Warrants IPO Warrants The registration statement relating to the Company’s initial public offering also included the underwriters’ common stock purchase warrants to purchase 33,794 (337,940 pre reverse split) shares of common stock (“IPO Underwriter’s Warrants”). Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $48.0 ($4.80 before reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018. As of December 31, 2022, there were 3,794 (37,940 pre reverse split) IPO Underwriter’s Warrants outstanding. Warrants in Offerings The Company adopted the provisions of ASC 815 on determining what types of instruments or embedded features in an instrument held by a reporting entity can be considered indexed to its own stock for the purpose of evaluating the first criteria of the scope exception in ASC 815. Warrants issued in connection with the direct equity offering with exercise prices denominated in US dollars are no longer considered indexed to the Company’s stock, as their exercise prices are not in the Company’s functional currency (RMB), and therefore no longer qualify for the scope exception and must be accounted for as a derivative. These warrants are classified as liabilities under the caption “Derivative liabilities” in the unaudited condensed consolidated statements of balance sheets and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. Changes in the liability from period to period are recorded in the unaudited condensed consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities.” 2019 Registered Direct Offering Warrants As of December 31, 2022 and March 31, 2022, there were 16,841 (168,411 pre reverse split) 2019 registered direct offering warrants outstanding, respectively. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $524 and $12,220 in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $32,150 and $168,230, respectively recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $218 and $12,438, respectively. August 2020 Underwriters’ Warrants As of December 31, 2022 and March 31, 2022, there were 31,808 (318,080 pre reverse split) underwriters’ warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $1,180 and $34,526 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $64,140 and $315,393, respectively, recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $10,055 and $44,581, respectively. February 2021 Registered Direct Offering Warrants As of December 31, 2022 and March 31, 2022, there were 53,262 (532,609 pre reverse split) February 2021 registered direct offering warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $1,952 and $51,581 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $102,568 and $514,123, respectively recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $13,962 and $65,543, respectively. May 2021 Registered Direct Offering Warrants As of December 31, 2022, there were 594,682 (5,946,810 pre reverse split) May 2021 registered direct offering warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $4,974 and $634,040 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $1,186,878 and $2,036,440, respectively recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $202,835 and $836,875, respectively. November 2021 Private Placement Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty ( 20 1-for-10 As of December 31, 2022, there were 5,365,911 (7,869,961 pre reverse split) November 2021 Private Placement Warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a loss of $21,927 and $909,283 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $ 2,151,123 recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since issuance. On November 18, 2022, a holder of November 2021 private placement warrants exercised the warrants on a “cashless” basis. Upon exercise of above mentioned warrants, the Company reduced the fair value of the warrants and increased the additional paid in capital by $1,533. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $344,951 and $1,255,767, respectively. The Company has warrants outstanding as follows giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2021 110,107 110,107 $ 11.60 4.09 Granted 5,985,591 5,985,591 $ 2.11 5.00 Exercised (4,400) (4,400) — — Balance, March 31, 2022 6,091,298 6,091,298 $ 2.28 4.32 Exercised (25,000) (25,000) — — Balance, December 31, 2022 (Unaudited) 6,066,298 6,066,298 $ 2.29 3.81 Restricted Stock Units On October 29, 2020, the Board approved the issuance of an aggregate of 127,273 restricted stock units (“RSUs”) to directors, officers and certain employees as stock compensation for their services for the nine months ended December 31, 2022. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $140,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee. As of the filing date of these unaudited condensed consolidated financial statements, all installment of RSUs with an aggregate of 12,727 (127,273 pre reverse split) was vested and 9,545 (95,457 pre reverse split) was settled by the Company. The Company expects to settle the remaining vested RSUs by issuance of shares of common stock before March 31, 2023 and account for the vested RSUs as an addition to both expenses and additional paid-in capital. Equity Incentive Plan At the 2018 Annual Meeting of Stockholders of the Company held on November 8, 2018, the Company’s stockholders approved the Company’s 2018 Equity Incentive Plan for employees, officers, directors and consultants of the Company and its affiliates. A committee consisting of at least two independent directors would be appointed by the Board or in the absence of such a committee, the board of directors, will be responsible for the general administration of the Equity Incentive Plan. All awards granted under the Equity Incentive Plan will be governed by separate award agreements between the Company and the participants. As of December 31, 2022, the Company has granted an aggregate of RSUs and issued an aggregate of shares upon vest under the Equity Incentive Plan and RSUs were forfeited due to two directors ceased to serve on the board of the Company since November 8, 2018. Exercise of November 2021 Private Placement Warrants On November 18, 2022, a holder of November 2021 private placement warrants exercised the warrants on a “cashless” basis to purchase 10,132 shares of the Company’s common stock as determined in accordance with the formula indicated on the notice of exercise. 1-for- 10 shares reverse split on common stock The Company considered the above transactions after giving a retroactive effect to a 1-for-10 Conversion Price Adjustment for November 2021 Preferred Shares Pursuant to the COD signed by the Company and certain institutional investors in November 2021 Private Placement, the initial conversion price of the series A convertible Preferred Shares was $0.68. If as of the applicable date the conversion price then in effect is greater than the greater of (1) $0.41 (the “floor Price”) (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (2) 85% of the closing bid price on the applicable date (the “Adjustment Price”), the conversion price shall automatically lower to the Adjustment Price accordingly. As the 1-for-10 Adjustments of Exercise Price and Warrant Shares for November 2021 Investors Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty ( 20 1-for-10 | 14. EQUITY Warrants IPO Warrants The registration statement relating to the Company’s initial public offering also included the underwriters’ common stock purchase warrants to purchase 33,794 (337,940 pre reverse split) shares of common stock (“IPO Underwriter’s Warrants”). Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $48.0 ($4.80 pre reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018. As of March 31, 2022, there were 3,794 (37,940 pre reverse split) IPO Underwriter’s Warrants outstanding. Warrants in Offerings The Company adopted the provisions of ASC 815 on determining what types of instruments or embedded features in an instrument held by a reporting entity can be considered indexed to its own stock for the purpose of evaluating the first criteria of the scope exception in ASC 815. Warrants issued in connection with the direct equity offering with exercise prices denominated in US dollars are no longer considered indexed to the Company’s stock, as their exercise prices are not in the Company’s functional currency (RMB), and therefore no longer qualify for the scope exception and must be accounted for as a derivative. These warrants are classified as liabilities under the caption “Derivative liabilities” in the consolidated statements of balance sheets and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. Changes in the liability from period to period are recorded in the consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities.” 2019 Registered Direct Offering Warrants As of March 31, 2022 and March 31, 2021, there were 16,841 (168,411 pre reverse split) and 21,244 (212,440 pre reverse split) 2019 registered direct offering warrants outstanding, respectively. During the year ended March 31, 2022, the change of fair value was a gain of $185,727 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. During the year ended March 31, 2021, the change of fair value was a loss of $1,372,966 recognized in the accompanying consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since March 31, 2020. As of March 31, 2022 and March 31, 2021, the fair value of the derivative instrument totaled $12,438 and $243,840, respectively. August 2020 Underwriters’ Warrants As of March 31, 2022 and March 31, 2021, there were 31,808 (318,080 pre reverse split) underwriters’ warrants outstanding. During the year ended March 31, 2022, the change of fair value was a gain of $352,944 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. During the year ended March 31, 2021, the change of fair value was a loss of $455,162, recognized in the accompanying consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022 and March 31, 2021, the fair value of the derivative instrument totaled $44,581 and $397,525, respectively. February 2021 Registered Direct Offering Warrants As of March 31, 2022 and 2021, there were 53,262 (532,609 pre reverse split) February 2021 registered direct offering warrants outstanding. During the year ended March 31, 2022, the change of fair value was a gain of $572,018 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. During the year ended March 31, 2021, the change of fair value was a gain of $117,713 recognized in the accompanying consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022 and March 31, 2021, the fair value of the derivative instrument totaled $65,543 and $637,561, respectively. May 2021 Registered Direct Offering Warrants The Company allocated the proceeds received between the common stock and warrants first to warrants based on the fair value on the date the proceeds were received with the balance to common stock. The value of the warrants was determined using the Black-Scholes valuation model using the following assumptions: volatility 131%; risk free interest rate 0.84%; dividend yield of 0% and expected term of 5 years of the investors Warrants and placement agent Warrants. The volatility of the Company’s common stock was estimated by management based on the historical volatility of its common stock, the risk-free interest rate was based on Treasury Constant Maturity Rates published by the U.S. Federal Reserve for periods applicable to the expected life of the warrants. The expected dividend yield was based on the Company’s current and expected dividend policy and the expected term is equal to the contractual life of the warrants. The value of the warrants was based on the Company’s common stock closing price of $7.2 ($0.72 pre reverse split) on May 13, 2021 which was the date the warrants were issued. Net proceeds were allocated as the follows: Fair value of the warrants $ 3,562,404 Common stock 2,208,649 Total net proceeds $ 5,771,053 Subsequent to the initial recording, the change in the fair value of the warrants, determined under the Black-Scholes valuation model, on each reporting date will result in either an increase or decrease the amount recorded as liability, based on the fluctuations with the Company’s stock price with a corresponding adjustment to other income (or expense). As of March 31, 2022, there were 594,682 (5,946,810 pre reverse split) May 2021 registered direct offering warrants outstanding. During the year ended March 31, 2022, the change of fair value was a gain of $2,725,530 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since issuance. As of March 31, 2022, the fair value of the derivative instrument totaled $836,875. November 2021 Private Placement Warrants In connection with November 2021 private placement, the company issued 735,295 (7,352,941 pre reverse split) and 55,148 (551,471 pre reverse split) warrants to the investors and placement agents, respectively. The Company allocated the gross proceeds received between the Series A Preferred Stock and warrants issued to the Investors 735,295 (7,352,941 pre reverse split) shares in connection of the sale of Series A Preferred Stock first to warrants based on the fair value on the date the proceeds were received with the remaining balance to Series A Preferred Stock, gross proceeds were allocated as the follows: Fair value of Investor warrants $ 4,060,857 Series A Preferred Stock 939,143 Total gross proceeds 5,000,000 Issuance cost (630,063) Total net proceeds $ 4,369,937 The value of the warrants to the investors and placement agents was determined using the Black-Scholes valuation model using the following assumptions: volatility 126%; risk free interest rate 1.23%; dividend yield of 0% and expected term of 5 years of the Placement Warrants and Investor Warrants. The volatility of the Company’s common stock was estimated by management based on the historical volatility of our common stock, the risk-free interest rate was based on Treasury Constant Maturity Rates published by the U.S. Federal Reserve for periods applicable to the expected life of the warrants, the expected dividend yield was based on the Company’s current and expected dividend policy and the expected term is equal to the contractual life of the warrants. The value of the warrants was based on the Company’s common stock closing price of $6.7 ($0.67 pre reverse split) on the date the warrants were issued. The value of the warrants allocated to derivative liabilities was recorded on insertion date as following: Fair value of investor warrants $ 4,060,857 Fair value of placement agent warrants (i) 310,173 Total fair value of warrants allocated to derivative liabilities $ 4,371,030 (i) The issuance costs for placement agent warrants which was classified as liability were immediately expensed. Subsequent to the initial recording, the change in the fair value of the warrants, determined under the Black-Scholes valuation model, on each reporting date will result in either an increase or decrease the amount recorded as liability, based on the fluctuations with the Company’s stock price with a corresponding adjustment to other income (or expense). During the year ended March 31, 2022, the change of fair value was a gain of $3,115,263 recognized in the consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022, the fair value of the derivative instrument totaled $1,255,767. The Company has warrants outstanding, pre reverse split, as follows: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2020 1,519,602 1,519,602 $ 1.76 3.21 Granted 1,100,609 1,100,609 $ 1.48 5.00 Forfeited (3,132) (3,132) — — Exercised (1,516,010) (1,516,010) — — Balance, March 31, 2021 1,101,069 1,101,069 $ 1.16 4.09 Granted 13,851,222 13,851,222 $ 0.91 5.00 Exercised (44,029) (44,029) — — Balance, March 31, 2022 14,908,262 14,908,262 $ 0.93 4.32 Restricted Stock Units On October 29, 2020, the Board approved the issuance of an aggregate of 127,273 restricted stock units (“RSUs”) to directors, officers and certain employees as stock compensation for their services for the twelve months ended March 31, 2022. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $140,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee. As of the filing date of these consolidated financial statements, all installment of RSUs with an aggregate of 12,727 (127,273 pre reverse split) was vested and 9,545 (95,457 pre reverse split) was settled by the Company. The Company expects to settle the remaining vested RSUs by issuance of shares of common stock within 2022 and account for the vested RSUs as an addition to both expenses and additional paid-in capital. Equity Incentive Plan At the 2018 Annual Meeting of Stockholders of the Company held on November 8, 2018, the Company’s stockholders approved the Company’s 2018 Equity Incentive Plan for employees, officers, directors and consultants of the Company and its affiliates. A committee consisting of at least two independent directors would be appointed by the Board or in the absence of such a committee, the board of directors, will be responsible for the general administration of the Equity Incentive Plan. All awards granted under the Equity Incentive Plan will be governed by separate award agreements between the Company and the participants. As of March 31, 2022, the Company has granted an aggregate of RSUs and issued an aggregate of shares upon vest under the Equity Incentive Plan. And RSUs were forfeited due to two directors ceased to serve on the board of the Company since November 8, 2018. Exercise of 2019 Registered Direct Offering Warrants On April 23, 2021, one of the holders of Series A warrants exercised the warrants to purchase 4,403 (44,029 pre reverse split) shares of the Company’s common stock at an exercise price of $5.0 ($0.50 pre reverse split) per share generating gross proceeds of $22,015 to the Company. May 2021 Registered Direct Offering On May 11, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Investors”) pursuant to which the Company will sell to the Investors, in a registered direct offering, an aggregate of 553,192 (5,531,916 pre reverse split) units (the “Units”), each consisting of 0.1 (one pre reverse split) share (the “Shares”) of the Company’s common stock, par value $0.0001 per share (“Common Stock”) and a warrant to purchase 0.1 (one pre reverse split) share of the Company’s Common Stock (the “Warrants”), at a purchase price of $1.175 per unit, for aggregate gross proceeds to the Company of $6,500,000, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. On May 13, 2021, the Company completed the registered direct offering. The net proceeds to the Company from this offering, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $5.8 million. The Warrants have a term of five years and are exercisable by the holders at any time after the date of issuance at an exercise price of $10.5 ($1.05 pre reverse split) per share. The exercise price and the number of shares issuable upon exercise of the Warrants are subject to an adjustment upon the occurrence of certain events, including, but not limited to, stock splits or dividends, business combinations, sale of assets, similar recapitalization transactions, or other similar transactions. The exercise price of the Warrants is also subject to an adjustment in the event that the Company issues or is deemed to issue shares of Common Stock for less than the applicable exercise price of such Warrants. However, the exercise price of the Warrants shall not be lower than $10.5 ($1.05 pre reverse split) as a result of an adjustment, unless the Company has obtained the stockholder approval. The exercisability of the Warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99%. FT Global Capital, Inc. (“FT Global Capital”) acted as the exclusive placement agent in connection with this offering pursuant to the terms of a placement agency agreement, dated May 11, 2021, between the Company and FT Global Capital (the “Placement Agent Agreement”). Pursuant to the Placement Agent Agreement, the Company agreed to pay FT Global Capital a cash fee equal to seven point five percent (7.5%) of the aggregate proceeds received by the Company from the sale of its securities to the investors introduced to the Company by FT Global Capital. FT Global Capital is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by investors that FT Global Capita had introduced to the Company. In addition to the cash fees, the Company agreed to issue to the Placement Agent warrants to purchase an aggregate of up to seven point five percent (7.5%) of the aggregate number of shares of our Common Stock sold in the offering (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Warrants, exercisable at a price of $10.5 ($1.05 pre reverse split) per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Warrants. In connection with the offering, the Company issued the investors warrants and placement agent warrants to purchase up to 553,192 (5,531,916 pre reverse split) and 41,490 (414,894 pre reverse split) shares of its common stock, respectively. These warrants are exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. November 2021 Private Placement On November 8, 2021, the Company, entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”) pursuant to which the Company will sell to the Investors, in a private placement (the “Private Placement”), an aggregate of $5,000,000 worth of securities of the Company, consisting of up to 5,000 shares (the “Preferred Shares”) of Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) and warrants (the “Investor Warrants”) to initially acquire up to an aggregate number of shares of common stock of the Company, par value $0.0001 per share (the “Common Stock”) that equals to the number of shares of Common Stock to be issued upon conversion of the Preferred Shares at $0.68 per share (the “Initial Conversion Price”) (as converted into the Conversion Shares as defined below, collectively with the shares of the Common Stock from the exercise of the Investor Warrants, the “Warrant Shares”, collectively, the “Warrant Shares”). The purchase price for the Preferred Shares was $1,000 per each Preferred Share (and related Investor Warrant). On November 10, 2021, the Company completed the Private Placement. The net proceeds to the Company from the Private Placement, after deducting the placement agent commissions and other estimated offering expenses payable by the Company, were approximately $4.4 million. The Series A Convertible Preferred Stock is included in mezzanine equity on the consolidated balance sheets, because it is redeemable by the holders upon events of change of control which are not within the Company’s control. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. Pursuant to the certificate of designations for the Series A Preferred Stock (the “COD”), at any time after the initial issuance date, each holder shall be entitled to convert any portion of the outstanding Preferred Shares held by such holder into shares of Common Stock (the “Conversion Shares”) at Initial Conversion Price, which shall be adjusted to the greater of $0.41 per share or 85% of the closing bid price of the Company’s Common Stock reported on the NASDAQ Capital Market on the Applicable Date, which is the earlier of the first date on which the registration statement covering the resale of the Conversion Shares and Warrant Shares is declared effective by the SEC or the first date on which all such shares are eligible to be resold by the Investors pursuant to Rule 144 or Rule 144A promulgated under the Securities Act. The Investor Warrants have a term of five years and are exercisable by the holders at any time after six months and one day FT Global Capital acted as the exclusive placement agent in connection with this Private Placement pursuant to the terms of a placement agency agreement, dated November 7, 2021, between the Company and FT Global Capital (the “Placement Agent Agreement”). Pursuant to the Placement Agent Agreement, the Company agreed to pay FT Global Capital a cash fee equal to 7.5% of the aggregate proceeds received by the Company from the sale of its securities to the Investors. FT Global Capital is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by Investors that FT Global Capital had introduced to the Company. In addition to the cash fees, the Company agreed to issue to the Placement Agent warrants to purchase an aggregate of up to 7.5% of the aggregate number of the Conversion Shares (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Investor Warrants, exercisable at a price of $6.8 ($0.68 pre reverse split) per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Investor Warrants. In connection with the Private Placement, the Company issued warrants to the Investors to purchase up to an aggregate number of shares of common stock that equals to the number of shares of common stock to be issued upon conversion of the Series A Preferred Stock at the Initial Conversion Price. Meanwhile, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre reverse split)shares of common stock at an exercise price of $6.8 ($0.68 pre reverse split) per share, which warrants will be exercisable at any time on or after the date of six months from the issuance date and expire on the fifth-year anniversary of their issuance. Share Swap in purchase of XXTX’s remaining minority interest In October 2021, The Company, Senmiao Consulting, XXTX and its shareholders entered into a Share Swap Agreement, pursuant to which the Company, through Senmiao Consulting, purchased all of the equity shares of XXTX held by its shareholders by issuing a total of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock to XXTX’s Shareholders. Upon closing, the Company, through Senmiao Consulting, owns 100% of the equity interests in XXTX. Common stock issued for consulting services On October 22, 2021, the Company entered into a consulting agreement (the “Consulting Agreement”) with Jolly Good River Group Limited. (the “Consultant”), pursuant to which the Company engaged the Consultant to provide certain market research and business development advisory services for a period of twelve months. As compensation for the services, the Company agreed to issue the Consultant an aggregate of 100,000 (1,000,000 pre reverse split) shares of the Common Stock, par value $0.0001, payable within ten working days from the signing of the Consulting Agreement. As of November 9, 2021, the issuance of 100,000 (1,000,000 pre reverse split)shares of the Company’s common stock has been completed and the Company recorded the consulting fee of $653,000 pursuant to the fair value on November 3, 2021, the grant date. 1-for- 10 shares reverse split on common stock The Company considered the above transactions after giving a retroactive effect to a 1-for-10 Change of ownership interest in a subsidiary On March 23, 2022, Senmiao Consulting, the Company’s 100% owned subsidary terminated the VIE Agreements and purchased Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. As a result, the Company reduce its equity interest in Sichuan Senmiao to 94.5%, and recongnized 5.5% of noncontrolling interest. As no consideration was received, $366,604 which is the difference between the fair value of the consideration received and the amount by which the noncontrolling interest is adjusted was recognized as an addition in additional paid-in capital in accordance with ASC 810-10-45-23 “Change in a parent’s ownership interest in a subsidiary”. |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INCOME TAXES | ||
INCOME TAXES | 15. INCOME TAXES The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income taxes with tax rate of 21%. The State of Nevada does not impose any state corporate income tax. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Tax Act also stablished the Global Intangible Low-Taxed Income (GILTI), a new inclusion rule affecting non-routine income earned by foreign subsidiaries. For the nine months ended December 31, 2022 and 2021, the Company’s foreign subsidiaries in China were operating at loss on a consolidated basis which resulted in no GILTI tax. The Company’s net operating loss for U.S. income taxes from U.S for the nine months ended December 31, 2022 amounted to approximately $0.4 million. As of December 31, 2022, the Company’s net operating loss carryforward for U.S. income taxes was approximately $7.1 million. The net operating loss carryforward will not expire and is available to reduce future years’ taxable income, but limited to 80% of income until utilized. Management believes that the utilization of the benefit from this loss appears uncertain due to the Company’s operating history. Accordingly, the Company has recorded a 100% valuation allowance on the deferred tax asset to reduce the deferred tax assets to zero on the consolidated balance sheets. As of December 31, 2022 and March 31, 2022, valuation allowances for deferred tax assets were approximately $1.5 million and $1.2 million, respectively. Management reviews the valuation allowance periodically and makes changes accordingly. PRC Senmiao Consulting, Sichuan Senmiao, Hunan Ruixi, Ruixi Leasing, Jinkailong (deconsolidated in the year ended March 31, 2022), Yicheng, Jiekai, Youlu and XXTX and its subsidiaries are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. The EIT rate for companies operating in the PRC is 25%. Income taxes in the PRC are consist of: For the Three Months ended For the Nine Months ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Deferred income tax expenses — 4,539 — 4,550 Total income tax expenses $ — $ 4,539 $ — $ 4,550 As of December 31, 2022 and March 31, 2022, the Company’s PRC entities from continuing operations had net operating loss carryforwards of approximately $10.5 million and $8.5 million, respectively, which will expire starting from 2025 and ending in 2027. In addition, allowance for doubtful accounts must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The bad debt allowances are incurred in Company’s PRC subsidiaries and former VIEs which were operating at losses, the Company believes it is more likely than not that its PRC operations will be unable to fully utilize its deferred tax assets related to the net operating loss carryforwards in the PRC. As a result, the Company provided 100% allowance on all deferred tax assets on net operating loss carryforwards in the PRC of $2,732,507 and $2,315,793 related to its continuing operations in the PRC as of December 31, 2022 and March 31, 2022, respectively and provided 100% allowance on all deferred tax assets on allowance for doubtful account of $131,775 and $29,129 related to its continuing operations in the PRC as of December 31, 2022 and March 31, 2022, respectively. The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: December 31, March 31, 2022 2022 (Unaudited) Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,732,507 $ 2,315,793 Net operating loss carryforwards in the U.S. 1,508,215 1,234,789 Allowance for doubtful account 131,775 29,129 Less: valuation allowance (4,372,497) (3,579,711) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 42,746 $ 46,386 Deferred tax liabilities, net $ 42,746 $ 46,386 As of December 31, 2022 and March 31, 2022, the Company’s PRC entities associated with discontinued operations had net operating loss carryforwards of approximately $10.3 million and $10.3 million, which will start to expire from 2024 to 2027. In addition, allowance for doubtful accounts must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized. As of December 31, 2022 and March 31, 2022, full valuation allowance is provided against the deferred tax assets related to the Company’s discontinued operations based upon management’s assessment as to their realization. The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: December 31, 2022 March 31, 2022 (Unaudited) Net operating loss carry forwards in the PRC $ 2,595,919 $ 2,595,919 Less: valuation allowance (2,595,919) (2,595,919) Total $ — $ — | 15. INCOME TAXES The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income taxes with tax rate of 21%. The State of Nevada does not impose any state corporate income tax. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Tax Act also stablished the Global Intangible Low-Taxed Income (GILTI), a new inclusion rule affecting non-routine income earned by foreign subsidiaries. For the years ended March 31, 2022 and 2021, the Company’s foreign subsidiaries in China were operating at loss on a consolidated basis which resulted in no GILTI tax. The Company’s net operating loss for U.S. income taxes from U.S for the year ended March 31, 2022 amounted to approximately $2.3 million. As of March 31, 2022, the Company’s net operating loss carryforward for U.S. income taxes was approximately $5.9 million. The net operating loss carryforward will not expire and is available to reduce future years’ taxable income, but limited to 80% of income until utilized. Management believes that the utilization of the benefit from this loss appears uncertain due to the Company’s operating history. Accordingly, the Company has recorded a 100% valuation allowance on the deferred tax asset to reduce the deferred tax assets to zero on the consolidated balance sheets. As of March 31, 2022 and 2021, valuation allowances for deferred tax assets were approximately $1.23 million and $0.80 million, respectively. Management reviews the valuation allowance periodically and makes changes accordingly. PRC Senmiao Consulting, Sichuan Senmiao, Hunan Ruixi, Ruixi Leasing, Jinkailong (deconsolidated for the year ended March 31, 2022), Yicheng, Jiekai, Youlu and XXTX and its subsidiaries are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. The EIT rate for companies operating in the PRC is 25%. Income taxes in the PRC are consist of: For the Years ended March 31, 2022 2021 Current income tax expenses $ 4,566 $ 8,332 Deferred income tax expenses — — Total income tax expenses $ 4,566 $ 8,332 Below is a reconciliation of the statutory tax rate to the effective tax rate: For the Years Ended March 31, 2022 2021 U.S. Statutory tax rate 21.0 % 21.0 % Differential of PRC statutory tax rate 4.0 % 4.0 % Permanent difference of write-off of receivables from guarantee of loans (0.5) % (2.4) % Permanent difference of US (income) expenses not (taxable) deductible in PRC 17.8 % (3.7) % Valuation allowance on deferred income tax asset (43.6) % (17.2) % Others 1.2 % (1.8) % Effective tax rate (0.1) % (0.1) % As of March 31, 2022 and 2021, the Company’s PRC entities from continuing operations had net operating loss carryforwards of approximately $8.5 million and $1.7 million, respectively, which will expire starting from 2024 and ending in 2026. In addition, allowance for doubtful accounts must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The bad debt allowances are incurred in Company’s PRC subsidiaries and former VIEs which were operating at losses, the Company believes it is more likely than not that its PRC operations will be unable to fully utilize its deferred tax assets related to the net operating loss carryforwards in the PRC. As a result, the Company provided 100% allowance on all deferred tax assets on net operating loss carryforwards in the PRC of $2,315,793 and $415,533 related to its continuing operations in the PRC as of March 31, 2022 and March 31, 2021, respectively and provided 100% allowance on all deferred tax assets on allowance for doubtful account of $29,129 and $1,245 related to its continuing operations in the PRC as of March 31, 2022 and March 31, 2021, respectively. The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: March 31, March 31, 2022 2021 Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,315,793 $ 415,533 Net operating loss carryforwards in the U.S. 1,234,789 754,502 Allowance for doubtful account 29,129 1,245 Less: valuation allowance (3,579,711) (1,171,280) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 46,386 $ 45,146 Deferred tax liabilities, net $ 46,386 $ 45,146 As of March 31, 2022 and March 31, 2021, the Company’s PRC entities associated with discontinued operations had net operating loss carryforwards of approximately $17.8 The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: March 31, 2022 March 31, 2021 Net operating loss carryforwards in the PRC $ 2,595,919 $ 3,802,496 Allowance for doubtful accounts — 20,190 Less: valuation allowance (2,595,919) (3,822,686) $ — $ — |
CONCENTRATION
CONCENTRATION | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
CONCENTRATION | ||
CONCENTRATION | 16. CONCENTRATION Major Suppliers For the three months ended December 31, 2022, three suppliers accounted for approximately 19.7%, 12.0% and 11.8% of the total costs of revenue. For the nine months ended December 31, 2022, two suppliers accounted for approximately 20.3% and 12.0% of the total cost of revenues. For the three months ended December 31, 2021, two suppliers accounted for approximately 35.1%, 19.8% of the total costs of revenue from continuing operations of the Company. For the nine months ended December 31, 2021, three suppliers accounted for approximately 30.1%, 18.1% and 16.9% of the total cost of revenues from continuing operations of the Company. For the three and nine months ended December 31, 2021, one supplier accounted for approximately 18.1% and 17.4% of the total costs of revenue from discontinued operations of the Company. | 16. CONCENTRATION Major Suppliers For the year ended March 31, 2022, three suppliers accounted for approximately 25.43%,14.97%, and 14.17% of the total costs of revenue from continuing operations of the Company, and one supplier accounted for approximately 18.18% of the total cost of revenues for discontinued operations of the Company. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
RELATED PARTY TRANSACTIONS AND BALANCES | 17. RELATED PARTY TRANSACTIONS AND BALANCES 1. Related Party Balances 1) Account receivable, a related party As of December 31, 2022, account receivable from a related party from the Company’s continuing operations of $9,816 represented balance due from operating lease revenue recognized from Jinkailong, the Company’s equity investee company. 2) Due from related parties As of December 31, 2022, balances due from related parties from the Company’s continuing operations of $5,992,152, net of allowance, represented balance due from Jinkailong, the Company’s equity investee company as result of Jinkailong’s deconsolidation, of which, $5,351,735 is to be repaid over a period from January 2024 to December 2026, classified as due from related party, noncurrent (refer to Note 4). In addition, another $18,882 represented receivable due from Youlu, the Company’s former VIE as result of Youlu’s deconsolidation. During the nine months ended December 31, 2022, the Company recorded additional allowances against the balance due from Jinkailong of $464,708. 3) Due to a stockholder Due to a stockholder comprised of amounts payable to a stockholder named below and are unsecured, interest free and due on demand. December 31, March 31, 2022 2022 (Unaudited) Jun Wang (Stockholder of the Company)* $ 17,360 $ 18,886 Total due to a stockholder 17,360 18,886 Total due to a stockholder – discontinued operations (17,360) (18,886) Total due to a stockholder – continuing operations $ — $ — * In December 2017, the Company entered into a loan agreement with one stockholder, who agreed to grant lines of credit of approximating $159,000 to the Company for five years. The lines of credit are non-interest bearing, effective from January 2017. 4) Due to related parties and affiliates December 31, March 31, 2022 2022 (Unaudited) Loan payable to a related party (i) $ 114,425 $ 9,897 Others (ii) 2,812 1,785 Total due to related parties and affiliates $ 117,237 $ 11,682 (i) As of December 31, 2022 and March 31, 2022, the balances represented borrowings from Xi Wen, the CEO of the Company, of which, $114,425 and $9,897 are unsecured, interest free and due on demand, respectively. (ii) As of December 31, 2022 and March 31, 2022, the balances of $2,812 and $1,785 , respectively, represented payables to Jinkailong, the Company’s equity investee company, for operational purposes. Interest expense for the three and nine months ended December 31, 2022 and 2021 were $0. 4) Operating lease right-of-use assets, net, related parties and Operating lease liabilities - related parties December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 27,519 $ 446,372 Lease II (ii) 112,268 69,534 Total Operating lease right-of-use assets - related parties $ 139,787 $ 515,906 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 91,732 $ 246,516 Lease II (ii) 71,826 84,265 Total Operating lease liabilities, current - related parties $ 163,558 $ 330,781 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ — $ 211,953 Lease II (ii) 52,205 14,943 Total Operating lease liabilities, non-current - related parties $ 52,205 $ 226,896 (i) The Company entered into two office lease agreements with Hong Li, supervisor of Sichuan Senmiao, which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were updated with a leasing term from April 1, 2020 to March 31, 2023. On March 1, 2021, the Company entered into an additional office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. In October 2022, the Company terminated the leases signed on March 1, 2021 and April 1, 2021 as mentioned above. (ii) In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed on June 2022 which extended the original lease to May 2025. 2. Related Party Transactions For the three and nine months ended December 31, 2022, the Company incurred $40,490 and $148,999, respectively, in rental expenses to Hong Li, supervisor of Sichuan Senmiao, pursuant to four office lease agreements. For the three and nine months ended December 31, 2021, the Company incurred $62,353 and $176,652, respectively, in rental expenses to this related party. For the three and nine months ended December 31, 2022, the Company incurred $11,557 and $46,427, respectively, in rental expenses to Dingchentai, a company where one of the Company’s independent directors serves as legal representative and general manager. For the three and nine months ended December 31, 2021, the Company incurred $11,705 and $34,153, respectively, in rental expenses to this related party. In June 2019 and January 2020, Jinkailong, the Company’s equity investee company entered into two automobile maintenance services contracts with Sichuan Qihuaxin Automobile Services Co., Ltd and Sichuan Yousen Automobile Maintenance Service Co., Ltd, which companies are controlled by one of the non-controlling shareholders of Jinkailong. During the three and nine months ended December 31, 2022, the Company did not incur automobile maintenance fees to those companies as mentioned above, respectively. During the three and nine months ended December 31, 2021, Jinkailong incurred automobile maintenance fees of $242,046 and $776,182 to those companies as mentioned above, respectively from discontinued operation. The Company had reached cooperation with Jinkailong, the Company’s equity investee company that the drivers who leased automobile from Jinkailong completed their online ride-hailing requests and orders through the company’s ride-hailing platform, and the company will pay Jinkailong a certain promotion service fee. During the three and nine months ended December 31, 2022, the company incurred promotion fee of $19,483 and $87,692 to Jinkailong, respectively. During the three and nine months ended December 31, 2021, the company incurred promotion fee of $19,478 and $524,633 to Jinkailong, which was eliminated in the loss of continuing operations of the unaudited condensed consolidated financial statements. During the three and nine months ended December 31, 2022, Corenel leased automobiles to Jinkailong, the Company’s equity investee company and generated revenues of $30,748 and $323,321, and Jiekai leased automobiles from Jinkailong and had a rental cost of $185,254 and $333,756, respectively. During the three and nine months ended December 31, 2021, Corenel and Yicheng leased 370 automobiles to Jinkailong and generated revenues of $362,529 and $914,513, respectively, which was eliminated in the loss of continuing operations of the unaudited condensed consolidated financial statements. During the three and nine months ended December 31, 2021, Hunan Ruixi and Yicheng had loans due from Jinkailong, the Company’s equity investee company, and had interest income of $119,215 and $327,808, respectively which was eliminated in the loss of continuing operations of the unaudited condensed consolidated financial statements. | 17. RELATED PARTY TRANSACTIONS AND BALANCES 1. Related Party Balances 1) Due from related parties As of March 31, 2022, balances due from related parties from the Company’s continuing operations of $7,298,208 represented balance due from Jinkailong as result of Jinkailong’s deconsolidation, of which, $6,635,746 is to be repaid over a period from April 2023 to December 2026, classified as due from related parties, noncurrent (refer to Note 5). In addition, another $19,874 represented receivable due from Youlu as result of Youlu’s deconsolidation. As of March 31, 2021, balances due from related parties of $24,311 from the Company’s discontinued operation represented operation costs of three related parties paid by the Company on their behalf, amounts received by the Company on behalf of a related party for refund of insurance claims, and amounts collected by a related party on behalf of the Company from the automobile purchasers, including certain installment payments and facilitation fees. In addition, another $15,261 represent advances to a non-controlling shareholder of Hunan Ruixi for operational purposes as of March 31, 2021. The balances due from related parties were all non-interest bearing and due on demand. 2) Due to a stockholder Due to a stockholder comprised of amounts payable to a stockholder named below and are unsecured, interest free and due on demand. March 31, March 31, 2022 2021 Jun Wang $ 18,886 $ 48,795 Total due to a stockholder 18,886 48,795 Total due to a stockholder – discontinued operations (18,886) (48,795) Total due to a stockholder – continuing operations $ — $ — 3) Due to related parties and affiliates March 31, March 31, 2022 2021 Loan payable to related parties (i) $ 9,897 $ 182,281 Others (ii) 1,785 170,546 Total due to related parties and affiliates 11,682 352,827 Total due to related parties and affiliates – discontinued operations — (269,918) Total due to related parties and affiliates – continuing operations $ 11,682 $ 82,909 (i) As of March 31, 2022 and March 31, 2021, the balances represented borrowings from a related party, of which, $ 9,897 and $ 78,708 are unsecured, interest free and due on demand, respectively, from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 103,574 represented borrowings from two related parties, which are unsecured, interest free and due on demand, respectively, from the Company’s discontinued operations. (ii) As of March 31, 2022 and March 31, 2021, the balances of $1,785 and $4,201 , respectively, represented payables to a related party for operational purposes from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 166,345 represented payables to four other related parties for operational purposes from the Company’s continuing operations. These balances are interest free and due on demand. Interest expense for the years ended March 31, 2022 and 2021 were $0. 2. Related Party Transactions In December 2017, the Company entered into loan agreements with two stockholders, who agreed to grant lines of credit of approximating $955,000 and $159,000, respectively, to the Company for five years. The lines of credit are non-interest bearing, effective from January 2017. The Company has fully settled the loan due to one of them as of March 31, 2021. As of March 31, 2022 and 2021, the outstanding balances due to the other stockholder in the discontinued operations were $18,886 and $48,795, respectively. On July 28 and August 17, 2021, the Company entered into two loan agreements with its CEO, who agreed to loan $800,000 in total to the Company. The loans are non-interest bearing, effective from July 28, 2021 and August 17, 2021, which shall be paid within six months and three months, respectively. As of March 31, 2022, the loans were fully settled. The Company entered into two office lease agreements with a stockholder of Sichuan Senmiao, which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were amended with a leasing term from April 1, 2020 to March 31, 2023. On March 1, 2021, the Company entered into an additional office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. As of March 31, 2022 and March 31, 2021, operating lease right-of-use assets of these leases amounted to $446,372 and $475,408, respectively. As of March 31, 2022 and March 31, 2021, current leases liabilities of these leases amounted to $246,516 and $161,818, respectively. Non-current lease liabilities of these leases amounted to $211,953 and $285,371 as of March 31, 2022 and March 31, 2021, respectively. For the years ended March 31, 2022 and 2021, the Company incurred $237,968 and $121,012, respectively, in rental expenses to this related party. In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of our independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019. As of March 31, 2022 and March 31, 2021, operating lease right-of-use assets of this lease amounted $69,534 and $104,959, respectively. As of March 31, 2022, current leases liabilities and non-current leases liabilities of this lease amounted $84,265 and $14,943, respectively. As of March 31, 2021, current leases liabilities and non-current leases liabilities of this lease in the continuing operations amounted $81,908 and $56,178, respectively. For the years ended March 31, 2022 and 2021, the Company incurred $45,651 and $44,169, respectively, in rental expenses to this related party. In June 2019 and January 2020, the Company’s former VIE entered into two automobile maintenance services contracts with Sichuan Qihuaxin Automobile Services Co., Ltd and Sichuan Yousen Automobile Maintenance Service Co., Ltd, which companies are controlled by one of the non-controlling shareholders of Jinkailong. During the years ended March 31, 2022 and March 31, 2021, the Company incurred automobile maintenance fees of $942,581 and $575,136 to those companies as mentioned above, respectively. |
LEASES
LEASES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
LEASES | ||
LEASES | 18. LEASES Lessor The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. Revenue recognition section of Note 3 (r), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the year ended March 31, 2020. Lessee As of December 31, 2022 and March 31, 2022, the Company has engaged in offices and showroom leases which were classified as operating leases. The Company leased automobiles under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. In addition, the Company had automobiles leases which were classified as finance lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 6.0%, which is determined using an incremental borrowing rate with similar term in the PRC. As of December 31, 2022, the weighted-average remaining operating and finance lease term of its existing leases is 2.41 and 2.75 years, respectively. Operating and finance lease expenses consist of the following: For the Three Months Ended For the Nine Months Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Classification (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost Automobile lease costs Cost of revenues $ 564,646 501,847 1,622,601 1,205,011 Lease expenses Selling, general and administrative 88,493 165,263 313,753 434,733 Finance lease cost Amortization of leased asset Cost of revenue 73,991 834,807 203,044 2,419,695 Amortization of leased asset General and administrative 62,255 76,187 196,890 522,605 Interest on lease liabilities Interest expenses on finance leases 7,602 97,919 15,903 313,766 Total lease expenses $ 796,987 1,676,023 2,352,191 4,895,810 Total Lease expenses – discontinued operations — 989,573 — 3,240,386 Total Lease expenses- continuing operations $ 796,987 686,450 2,352,191 1,655,424 Operating lease expenses for automobiles from continuing operations totaled $564,646 and $417,519 for the three months ended December 31, 2022 and 2021, respectively. Operating lease expenses for automobiles from continuing operations totaled $1,622,601 and $941,818 for the nine months ended December 31, 2022 and 2021, respectively. Operating lease expenses for automobiles from discontinued operations totaled $84,328 and $263,193 for the three and nine months ended December 31, 2021. Operating lease expenses for offices and showroom leases from continuing operations totaled $88,493 and $313,753 for the three and nine months ended December 31, 2022, respectively. Operating lease expenses for offices and showroom leases from continuing operations totaled $141,208 and $367,690 for the three and nine months ended December 31, 2021, respectively. Operating lease expenses for offices and showroom leases from discontinued operations totaled $24,055 and $67,043 for the three and nine months ended December 31, 2021, respectively. Interest expenses on finance leases from continuing operations totaled $7,602 and $15,903 for the three and nine months ended December 31, 2022, respectively. Interest expenses on finance leases from continuing operations totaled $13,612 and $44,369 for the three and nine months ended December 31, 2021, respectively. Interest expenses on finance leases from discontinued operations totaled $84,307 and $269,397 for the three and nine months ended December 31, 2021, respectively. The following table sets forth the Company’s minimum lease payments in future periods: *Operating lease Finance lease payments payments Total Twelve months ending December 31, 2023 $ 265,601 278,610 544,211 Twelve months ending December 31, 2024 95,690 269,675 365,365 Twelve months ending December 31, 2025 63,120 202,256 265,376 Twelve months ending December 31, 2026 14,982 — 14,982 Total lease payments 439,393 750,541 1,189,934 Less: discount (22,205) (58,657) (80,862) Present value of lease liabilities $ 417,188 691,884 1,109,072 *As of December 31, 2022, the outstanding balance of operating lease payments due to related parties was $215,763. | 18. LEASES Lessor The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. Revenue recognition section of Note 3 (r), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the year ended March 31, 2020. Lessee As of March 31, 2022 and March 31, 2021, the Company has engaged in offices and showroom leases which were classified as operating leases. The Company leased automobiles under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. In addition, the Company had automobiles leases which were classified as finance lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 6.0%, which is determined using an incremental borrowing rate with similar term in the PRC. As of March 31, 2022, the average remaining operating and finance lease term of its existing leases is 1.16 and 1.09 years, respectively. Operating and finance lease expenses consist of the following: For the Years Ended Classification March 31, 2022 March 31, 2021 Operating lease cost Automobile lease costs Cost of revenues 1,749,959 42,306 Lease expenses Selling, general and administrative $ 585,719 $ 396,276 Finance lease cost Amortization of leased asset Cost of revenues 2,844,167 2,441,873 Amortization of leased asset General and administrative 974,422 1,656,336 Interest on lease liabilities Interest expenses on finance leases 333,210 733,202 Total lease expenses 6,487,477 5,269,993 Total lease expenses – discontinued operations 4,150,972 4,748,180 Total Lease expenses- continuing operations $ 2,336,505 $ 521,813 Operating lease expenses for automobiles from continuing operations totaled $1,390,767 and $42,306 for the year ended March 31, 2022 and 2021, respectively. Operating lease expenses for automobiles from discontinued operations totaled $359,192 and $0 for the year ended March 31, 2022 and 2021, respectively. Operating lease expenses for offices and showroom leases from continuing operations totaled $460,209 and $245,376 for the years ended March 31, 2022 and 2021, respectively. Operating lease expenses offices and showroom leases from discontinued operations totaled $125,510 and $150,900 for the years ended March 31, 2022 and 2021, respectively. Interest expenses on finance leases from continuing operations totaled $55,844 and $46,518 for the years ended March 31, 2022 and 2021, respectively. Interest expenses on finance leases from continuing operations totaled $277,366 and $686,684 for the years ended March 31, 2022 and 2021, respectively. The following table sets forth the Company’s minimum lease payments in future periods: *Operating lease Finance lease payments payments Total Twelve months ending March 31, 2023 $ 386,942 $ 317,499 $ 704,441 Twelve months ending March 31, 2024 194,311 1,403 195,714 Twelve months ending March 31, 2025 64,268 — 64,268 Twelve months ending March 31, 2026 52,585 — 52,585 Total lease payments 698,106 318,902 1,017,008 Less: discount (42,342) (12,969) (55,311) Present value of lease liabilities $ 655,764 $ 305,933 $ 961,697 *As of March 31, 2022, the outstanding balance of operating lease payments due to related parties was $557,677. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Contingencies In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers’ default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance, when necessary, as the Company is the guarantor of the loans. Purchase commitments On February 22, 2021, the Company entered into one purchase contract with an automobile dealer to purchase a total of 200 automobiles for the amount of approximately $3.2 million. Pursuant to the contract, the Company required to purchase 100 automobiles in cash with the amount of approximately $1.6 million. The remaining 100 automobiles purchase commitment with the amount of approximately $1.6 million shall be completed with financing option through the dealer’s designated financial institutions. As of the date of filing of this unaudited condensed consolidated financial statements, 100 automobiles of the contract signed in February 2021 have been purchased in cash and delivered to us. As the Company are in process of getting approval from the dealer’s designated financial institutions in financing the 100 automobiles’ purchase, there is no clear timing schedule for completing the remaining purchase commitment with this automobile dealer. However, the Company expects the purchase to be completed by June 30, 2023. On September 23, 2022, the Company entered into a purchase contract with an automobile dealer to purchase a total of 100 automobiles for the amount of approximately $1.5 million. As of the date of filing of this unaudited condensed consolidated financial statements, the Company has remit approximately $0.7 million as purchase prepayments, and expect to fulfill the purchase commitment before March 31, 2023. Contingent liabilities for automobile purchasers Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. In December 2019, a novel strain of coronavirus, or COVID-19, surfaced and it has spread rapidly to many parts of China and other parts of the world, including the United States. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Because substantially all of the Company’s operations are conducted in China, the COVID-19 outbreak has materially and adversely affected, and may continue to affect, the Company’s business operations, financial condition and operating results for 2021 and 2022, including but not limited to decrease in revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. Some of the Company’s customers exited the ride-hailing business and rendered their automobiles to the Company for sublease or sale to generate income or proceeds to cover payments owed to financial institutions and the Company. For the nine months ended December 31, 2022 and 2021, the Company recognized an estimated provision loss of approximately $7,284 and $15,005, respectively, for drivers who exited the ride-hailing business were not able to make the monthly payments from continuing operations. For the nine months ended December 31, 2021, the Company recognized an estimated provision loss of approximately $11,140, for the guarantee services for drivers who exited the ride-hailing business were not able to make the monthly payments from discontinued operations. As of December 31, 2022, the maximum contingent liabilities Hunan Ruixi would be exposed to was approximately $47,000, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. The Company estimated the fair market value of the collateral to be approximately $1,900 as of December 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 4.1% of the maximum contingent liabilities. Contingent liability of Jinkailong As the Company holds 35% of equity interest of Jinkailong through Hunan Ruixi, and has not make any consideration towards to the investment. In accordance with PRC’s company registry compliance, the Company will subject to the maximum amount of RMB3.5 million (approximately $507,000) of which is equivalent to 35% of liabilities in case Jinkailong is liquidated. As of December 31, 2022, the maximum contingent liabilities of Jinkailong, the Company’s equity investee company and former VIE, would be exposed to was approximately $4.8 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. Jinkailong estimated the fair market value of the collateral to be approximately $2.8 million as of December 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 59% of the maximum contingent liabilities. Meanwhile, approximately $3.5 million, including interests of approximately $281,000, due to financial institutions, of all the automobile purchases Jinkailong serviced were past due mainly due to the COVID-19 pandemic in China in prior years. Besides, as of December 31, 2022, due to Jinkailong has undertaken the joint and several liability guarantee for all loans of Langyue Automobile Service Co., Ltd. from Chengdu Industrial Impawn Co., Ltd (“Impawn”) for certain historical business, Jinkailong may be required to pay all the outstanding balance of approximately $882,000 to Impawn in the future. From time to time, the Company and its equity investee company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. The total amount of reasonable possible losses with the respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. | 19. COMMITMENTS AND CONTINGENCIES Contingencies In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance, when necessary, as the Company is the guarantor of the loans. Contingent liabilities for automobile purchasers Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. In December 2019, a novel strain of coronavirus, or COVID-19, surfaced and it has spread rapidly to many parts of China and other parts of the world, including the United States. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Because substantially all of the Company’s operations are conducted in China, the COVID-19 outbreak has materially and adversely affected, and may continue to affect, the Company’s business operations, financial condition and operating results for 2021 and 2022, including but not limited to decrease in revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. Some of the Company’s customers exited the ride-hailing business and rendered their automobiles to the Company for sublease or sale to generate income or proceeds to cover payments owed to financial institutions and the Company. For the years ended March 31, 2022 and 2021, the Company recognized an estimated provision loss of approximately $8,000 and $40,504, respectively, for drivers who exited the ride-hailing business were not able to make the monthly payments from continuing operations. For the years ended March 31, 2022 and 2021, the Company recognized an estimated provision loss of approximately $716 and $158,100, respectively, for the guarantee services for drivers who exited the ride-hailing business were not able to make the monthly payments from discontinued operations. As of March 31, 2022, the maximum contingent liabilities Hunan Ruixi would be exposed to was approximately $0.8 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. The Company estimated the fair market value of the collateral to be approximately $0.7 million as of March 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 90% of the maximum contingent liabilities. Contingent liability of Jinkailong As of March 31, 2022, the maximum contingent liabilities of Jinkailong, the Company’s equity investee company and former VIE, would be exposed to was approximately $6.3 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. Jinkailong estimated the fair market value of the collateral to be approximately $4.2 million as of March 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 66% of the maximum contingent liabilities. Meanwhile, approximately $4.8 million, including interests of approximately $286,000, due to financial institutions, of all the automobile purchases Jinkailong serviced were past due mainly due to the COVID-19 pandemic in China in prior years. On May 25, 2018, Chengdu Industrial Impawn Co., Ltd (“Impawn”) signed a pledge and pawn contract (the “Master Contact”) with Langyue, pursuant to which, Impawn shall provide loans to Langyue up to RMB20 million (approximately $2.9 million). In connection with the Master Contract, Jinkailong entered into a guaranty with Impawn and agreed to provide guarantee on all the payments (including principal, interests, compensations and other expenses) of Langyue jointly and severally with seven other guarantors, one of which is a shareholder of Jinkailong. Langyue used RMB7,019,652 (approximately $1,003,000) of the loans from Impawn and re-loaned it to automobile purchasers referred by Jinkailong from June 2018 to September 2018, which were also guaranteed by Jinkailong. Langyue did not pay Impawn the monthly installment of June 2020 timely. In July 2020, Impawn sent the Collection Letter and Notice to Langyue to demand payment of the interest and penalty of RMB100,300 (approximately $14,330). On September 18, 2020, Impawn initiated a legal action with the People’s Court of Sichuan Pilot Free Trade Zone (the “Court”) for an order to collect and enforce the repayment of the total outstanding principal, interest and penalty for an aggregate of RMB9,992,728 (approximately $1,428,000) and other expenses by freezing all bank accounts of Langyue and all related guarantors. On October 14, 2020, the cash in the bank accounts of Jinkailong, totaling RMB175,335 (approximately $25,050) was frozen by the Court and became restricted cash accordingly. On January 7, 2021, frozen bank account mentioned above has been fully released. On December 24, 2020, Jinkailong, a shareholder of Jinkailong and Impawn signed a settlement agreement (“Settlement Agreement”). Impawn agreed to release the pledge of Jinkailong’s 75 automobiles, provided that Jinkailong and such shareholder repay an aggregate of RMB4,026,594 (approximately $635,000) in monthly installments over 35 months. In addition, upon the initial payment of RMB600,000 (approximately $94,000) by Jinkailong and such shareholder, Impawn will request the court to release the frozen bank accounts of Jinkailong. The Settlement Agreement further provided that it did not release the guarantee obligations of Jinkailong and in the event Langyue’s loan was not fully repaid at the end of the 35 months, Impawn reserved the right to pursue further actions against Jinkailong and such shareholder for the outstanding balance of the loan. As of March 31, 2022, the original maximum contingent liabilities related to the loans from Langyue to automobile purchasers which Jinkailong would be exposed to was approximately RMB350,000 (approximately $55,000), which has been included in the amount of contingent liabilities of automobile purchasers as mentioned above. Jinkailong will collect monthly installment payments from online ride-hailing drivers who lease those 75 automobiles to repay for the remaining balance of Impawns and recognize guarantee expenses if any. However, as Jinkailong has undertaken the joint and several liability guarantee for all of Langyue’s loans from Impawn, Jinkailong may be required to pay all the outstanding balance of approximately $1,032,000 to Impawn in the future. As the Company holds 35% of equity interest of Jinkailong through Hunan Ruixi, and has not make any consideration towards to the investment. In accordance with PRC’s company registry compliance, the Company will subject to the maximum amount of RMB3.5 million (approximately $570,000) of which is equivalent to 35% of liabilities in case Jinkailong is liquidated. From time to time, the Company and its equity investee company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. The total amount of reasonable possible losses with the respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 20. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. By assessing the qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, the Company considers itself to be operating in two reportable segments which comprise of automobile transaction and related services and online ride-hailing platform. The segments are organized based on type of service offered. The following tables present the summary of each segment’s revenue, loss from operations, loss before income taxes and net loss which is considered as a segment operating performance measure, for the three and nine months ended December 31, 2022 and 2021: For the Three Months ended December 31, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 930,625 $ 810,295 $ — $ 1,740,920 Interest income $ 467 $ 64 $ 13 $ 544 Depreciation and amortization $ 429,419 $ 12,128 $ 21,638 $ 463,185 Loss from operations $ (999,958) $ (69,672) $ (259,746) $ (1,329,376) Loss before income taxes $ (700,414) $ (56,667) $ (229,188) $ (986,269) Net loss $ (700,414) $ (56,667) $ (229,188) $ (986,269) Capital expenditure $ 1,238,504 $ — $ — $ 1,238,504 For the Nine Months ended December 31, 2022 Online ride- Automobile hailing Transaction and platform Related Services Services Unallocated Consolidated Revenues $ 3,353,400 $ 2,970,518 $ — $ 6,323,918 Interest income $ 1,292 $ 168 $ 57 $ 1,517 Depreciation and amortization $ 1,470,335 $ 47,594 $ 63,298 $ 1,581,227 Loss from operations $ (2,854,231) $ (262,097) $ (1,238,849) $ (4,355,177) Income (loss) before income taxes $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Net income (loss) $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Capital expenditure $ 1,240,404 $ — $ — $ 1,240,404 For the three months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 2,525,893 $ 1,017,156 $ — $ 3,543,049 $ 1,882,930 $ 1,660,119 Interest income $ 618 $ 72 $ 81 $ 771 $ 288 $ 483 Interest expense $ 16,451 $ 24 $ — $ 16,475 $ 16,475 $ — Depreciation and amortization $ 1,425,441 $ 8,058 $ 3,179 $ 1,436,678 $ 886,651 $ 550,027 Loss from operations $ (1,289,884) $ (629,177) $ (979,941) $ (2,899,002) $ (390,710) $ (2,508,292) Income (loss) before income taxes $ (1,069,871) $ (792,769) $ 1,735,058 $ (127,582) $ (418,355) $ 290,773 Net income (loss) $ (1,074,410) $ (792,769) $ 1,735,058 $ (132,121) $ (418,355) $ 286,234 Capital expenditure $ 1,321,226 $ — $ — $ 1,321,226 $ — $ 1,321,226 For the nine months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 6,631,579 $ 1,617,454 $ — $ 8,249,033 $ 5,096,441 $ 3,152,592 Interest income $ 1,198 $ 785 $ 389 $ 2,372 $ 514 $ 1,858 Interest expense $ 37,587 $ 6,536 $ — $ 44,123 $ 38,251 $ 5,872 Depreciation and amortization $ 4,269,755 $ 23,135 $ 9,580 $ 4,302,470 $ 2,857,864 $ 1,444,606 Loss from operations $ (3,606,376) $ (6,358,532) $ (1,813,645) $ (11,778,553) $ (2,182,402) $ (9,596,151) Income (loss) before income taxes $ (3,520,754) $ (6,649,325) $ 2,549,947 $ (7,620,132) $ (2,418,757) $ (5,201,375) Net income (loss) $ (3,525,304) $ (6,649,325) $ 2,549,947 $ (7,624,682) $ (2,418,757) $ (5,205,925) Capital expenditure $ 3,484,051 $ — $ — $ 3,484,051 $ — $ 3,484,051 The accounting principles for the Company’s revenue by segment are set out in Note 3(h). As of December 31, 2022, the Company’s total assets were comprised of $14,004,591 for automobile transaction and related services, $816,024 for online ride-hailing platform services and $717,978 unallocated. As of March 31, 2022, the Company’s total assets were comprised of $12,022,387 for automobile transaction and related services, $7,003,867 for online ride-hailing platform services and $851,863 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. | 20. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. 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 years ended March 31, 2022 and 2021: For the year ended March 31, 2022 Automobile Transaction and Online ride- related hailing platform Discontinued Continuing service services Unallocated Total operations operations Revenues $ 9,077,761 $ 2,665,457 $ — $ 11,743,218 $ 6,830,116 $ 4,913,102 Loss from operations $ (3,957,831) $ (6,962,113) $ (3,179,759) $ (14,099,703) $ (2,537,715) $ (11,561,988) loss before income taxes $ (4,682,007) $ (7,438,693) $ 3,771,912 $ (8,348,788) $ (2,747,209) $ (5,601,579) Net income (loss) $ (4,686,573) $ (7,438,693) $ 3,771,912 $ (8,353,354) $ (2,747,209) $ (5,606,145) For the year ended March 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Discontinued Continuing Related services services P2P Business Unallocated Total operations operations Revenues $ 5,257,280 $ 903,254 $ 7,153 $ — $ 6,167,687 $ 3,978,847 $ 2,188,840 Loss from operations $ (6,126,494) $ (1,894,971) $ (81,285) $ (2,163,082) $ (10,265,832) $ (4,254,403) $ (6,011,429) loss before income taxes $ (7,009,570) $ (1,703,551) $ (61,976) $ (3,872,915) $ (12,648,012) $ (5,180,919) $ (7,467,093) Net income (loss) $ (7,024,200) $ (1,703,551) $ (61,976) $ (3,872,912) $ (12,662,639) $ (5,187,214) $ (7,475,425) The accounting principles for the Company’s revenue by segment are set out in Note 3(g). As of March 31, 2022, the Company’s total assets were comprised of $12,022,387 for automobile transaction and related services, $7,003,867 for online ride-hailing platform services and $851,863 unallocated. As of March 31, 2021, the Company’s total assets were comprised of $8,777,138, $7,450,698 and $398,940 for automobile transaction and related services from continuing and discontinued sections, and discontinued operations of P2P Business, respectively, $3,254,822 for online ride-hailing platform services and $2,421,681 unallocated. As substantially all of the Company’s long-lived assets are located in the PRC and substantially all of the Company’s revenue is derived from within the PRC, no geographical information is presented. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Company evaluated all events and transactions that occurred after December 31, 2022 up through February 14, 2023, the date the Company issued these unaudited condensed consolidated financial statements. | 22. SUBSEQUENT EVENTS Conversion Price Adjustment for November 2021 Preferred Shares Pursuant to the COD signed by the Company and certain institutional investors in November 2021 Private Placement, the initial conversion price of the series A convertible Preferred Shares was $0.68. If as of the applicable date the conversion price then in effect is greater than the greater of (x) $0.41 (the “floor Price”) (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (y) 85% of the closing bid price on the applicable date (the “Adjustment Price”), the conversion price shall automatically lower to the Adjustment Price accordingly. As the 1-for-10 Adjustments of Exercise Price and Warrant Shares for November 2021 Investors Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty (20) consecutive trading day period ending and including the trading day immediately preceding the sixteenth (16th) trading day after such Stock Combination Event date, divided by (y) five (5)) is less than the original exercise price of $0.82 then in effect, then on the sixteenth (16th) trading day immediately following such Stock Combination Event, the exercise price then in effect on such sixteenth (16th) trading day shall be reduced (but in no event increased) to the event market price. As the 1-for-10 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of presentation | (a) Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of December 31, 2022 and for the three and nine months ended December 31, 2022 and 2021 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 interim unaudited 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, 2022, which was filed with the SEC on July 15, 2022. 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, 2022, its unaudited results of operations for the three and nine months ended December 31, 2022 and 2021, and its unaudited cash flows for the nine months ended December 31, 2022 and 2021, 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. | (a) Basis of presentation The accompanying consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of consolidation | (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 subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | (b) Basis of consolidation The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All inter-company accounts and transactions have been eliminated in consolidation. |
Foreign currency translation | (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 and former VIEs is U.S. dollars (“US$”) and the unaudited condensed consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the unaudited condensed consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, March 31, 2022 2022 Balance sheet items, except for equity accounts 6.8972 6.3400 For the Three Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss 7.1120 6.3937 For the Nine Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.8547 6.4408 | (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 and former VIEs is U.S. dollars (“US$”) and the consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: March 31, March 31, 2022 2021 Balance sheet items, except for equity accounts 6.3400 6.5527 For the Years Ended March 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.4178 6.7960 |
Use of estimates | (d) Use of estimates In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. | (d) Use of estimates In presenting the consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets and goodwill, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. |
Fair values of financial instruments | (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. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and March 31, 2022: Carrying Value as of Fair Value Measurement as of December 31, 2022 December 31, 2022 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 572,021 $ — $ — $ 572,021 Fair Value Measurement as of Carrying Value as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for nine months ended December 31, 2022 and for the year ended March 31, 2022: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2021 $ 80,268 $ 163,572 $ 397,525 $ 637,561 $ — $ — $ — $ — $ 1,278,926 Derivative liabilities recognized at grant date — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — (45,675) BALANCE as of March 31, 2022 1,913 10,525 44,581 65,543 778,488 58,387 1,165,465 90,302 2,215,204 Change in fair value of derivative liabilities (1,878) (10,342) (34,526) (51,581) (589,804) (44,236) (843,900) (65,383) (1,641,650) Cashless exercise on November 2021 Investor warrant — — — — — — (1,533) — (1,533) BALANCE as of December 31, 2022 (Unaudited) $ 35 $ 183 $ 10,055 $ 13,962 $ 188,684 $ 14,151 $ 320,032 $ 24,919 $ 572,021 The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of December 31, 2022 and March 31, 2022. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of December 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 Expected term (years) 0.47 0.47 2.59 3.12 3.12 3.37 3.37 3.86 3.86 Risk-free interest rate 2.22 % 2.22 % 4.35 % 4.21 % 4.21 % 4.18 % 4.18 % 4.12 % 4.12 % Expected volatility 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % As of March 31, 2022 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022. As of December 31, 2022 and March 31, 2022, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of December 31, 2022 and March 31, 2022. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. | (e) Fair values of financial instruments Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2022 and March 31, 2021: Carrying Value at Fair Value Measurement at March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 Carrying Value at Fair Value Measurement at March 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 1,278,926 $ — $ — $ 1,278,926 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 and 2021: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Series B Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2020 $ 315,923 $ 1,371 $ 25,236 $ — $ — $ — $ — $ — $ — $ 342,530 Derivative liabilities recognized at grant date — — — 241,919 755,274 — — — — 997,193 Change in fair value of derivative liabilities 1,234,630 — 138,336 455,162 (117,713) — — — — 1,710,415 Fair value of warrants exercised (1,470,285) — — (299,556) — — — — — (1,769,841) Warrant forfeited due to expiration — (1,371) — — — — — — — (1,371) BALANCE as of March 31, 2021 80,268 — 163,572 397,525 637,561 — — — — 1,278,926 Derivative liabilities recognized at grant date — — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) — (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — — (45,675) BALANCE as of March 31, 2022 $ 1,913 $ — $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 On June 21, 2019, the Company closed a registered direct offering of an aggregate of 178,137 (1,781,361 pre reverse split) shares of common stock, and in connection therewith, issued to the investors (i) for no additional consideration, Series A warrants to purchase up to an aggregate of 133,603 (1,336,021 pre reverse split) shares of common stock, (ii) for nominal additional consideration, Series B warrants to purchase up to a maximum aggregate of 111,632 (1,116,320 pre reverse split) shares of common stock and (iii) placement agent warrants to purchase up to 14,251 (142,509 pre reverse split) shares of common stock (the “June 2019 Placement Agent Warrants”). On August 6, 2020, the Company completed a public offering of 1,200,000 (12,000,000 pre reverse split) shares of the Company’s common stock at $5.0 ($0.50 pre-reverse split) per share (the “Offering Price”), pursuant to an underwriting agreement with The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the several underwriters (the “Underwriters”). On August 13, 2020, the Underwriters exercised their rights to purchase an additional 180,000 (1,800,000 pre reverse split) shares of common stock at the Offering Price. In connection with the offering, the Company issued the Underwriters, on a private placement basis, warrants to purchase up to 56,800 (568,000 pre reverse split) shares of common stock (the “Underwriters’ Warrants”). The Underwriters’ Warrants are exercisable for a period of five years commencing six months from August 4, 2020 at a price per share equal to 125% of the Offering Price and are exercisable on a “cashless” basis. As the underwriting agreement indicated, the Underwriters have the right of first refusal to act as lead or joint investment banker, lead or join book-runner and /or joint placement agent, for each and every future public and private equity and debt offering, including all equity linked financings for the Company, or any successor to or any subsidiary of the Company for a period of twelve months following August 4, 2020, (the “ROFR”). The ROFR was terminated as of February 4, 2021 as disclosed in more details below. On February 10, 2021, the Company completed a registered direct offering of 507,247 (5,072,465 pre reverse split) shares of the Company’s common stock at $13.8 ($1.38 pre-reverse split) per share, pursuant to a placement agency agreement with FT Global Capital, Inc., as exclusive placement agent in connection with this offering. In connection with the offering, the Company issued the placement agent warrants to purchase up to 38,044 (380,435 pre reverse split) shares of its common stock. These warrants are exercisable for a period of five years commencing 180 days from February 8, 2020 at a price of $13.8 ($1.38 pre-reverse split) per share and are exercisable on a “cashless” basis. In addition, the company issued to the Underwriters seven percent of the gross proceeds from the offering and warrants to purchase up to 15,218 (152,174 pre reverse split) shares of its common stock, in consideration for the termination of the ROFR as mentioned above. These warrants are exercisable for a period of five years from February 8, 2020 at a price of $17.25 ($1.725 pre-reverse split) per share. On May 13, 2021, the Company completed a registered direct offering of 553,192 (5,531,916 pre-reverse split) shares of the Company’s common stock at $11.75 ($1.175 pre-reverse split) per share, pursuant to a securities purchase agreement with certain purchasers dated May 11, 2021. As a result, the Company raised approximately $5.8 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 553,192 (5,531,916 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre-reverse split) per share (the “May 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the issuance date. In connection with the offering, the Company paid the placement agent cash commission of approximately $487,500 and issued to it warrants to purchase up to 41,490 (414,894 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre reverse split) per share (the “May 2021 Placement Agent Warrants”), which warrants will be exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. On November 10, 2021, the Company completed a private placement of 5,000 shares of the Company’s series A convertible preferred stock at $1,000 per share, pursuant to a securities purchase agreement with certain institutional investors. As a result, the Company raised approximately $4.4 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 735,295 (7,352,941 pre-reverse split) shares of common stock at an exercise price of $8.20 ($0.82 pre-reverse split) per share (the “November 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the initial exercisability date. In connection with the offering, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre-reverse split) shares of common stock at an exercise price of $6.80 ($0.68 pre-reverse split) per share (the “November 2021 Placement Agent Warrants”), which warrants will be exercisable at any time beginning from the date of six months from the closing of the Offering and expire on the fifth-year anniversary of their issuance. The Series A Convertible Preferred Stock is redeemable as change of control occur. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. The strike price of the Company’s Series A and Series B warrants, the placement agent warrants, the Underwriters’ Warrants, the ROFR warrants, and the investors warrants are denominated in US$ and the Company’s functional currency is RMB; therefore, those warrant shares are not considered indexed to the Company’s own stock which should be classified as derivative liability. The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of March 31, 2022 and March 31, 2021. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of March 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % As of March 31, 2021 June 20, 2019 August 4, 2020 February 10, 2021 Series A Placement Agent Underwriters’ Placement Agent ROFR Granted Date Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 6,993 14,251 31,808 38,044 15,218 Valuation date 3/31/2021 3/31/2021 3/31/2021 3/31/2021 3/31/2021 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 Stock price* $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Expected term (years) 2.22 2.22 4.35 4.87 4.87 Risk-free interest rate 0.20 % 0.20 % 0.73 % 0.88 % 0.88 % Expected volatility 132 % 132 % 132 % 132 % 132 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 As of March 31, 2022 and 2021, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, restricted cash, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of March 31, 2022 and March 31, 2021. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. |
Equity method investments | (f) Equity method investments The Company accounts for investments in private company by using equity method as the Company determined that it does not have control over Jinkailong under either voting or VIE models in accordance with ASC 323 “Investments- Equity Method and Joint Ventures”. The Company records equity method investments initially at cost and subsequently records its share of the earnings or losses of the investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend. The Company adjusts the carrying amount of an investment for its share of the earnings or losses of the investee after the date of investment and share report the recognized earnings or loses in income. If an investment balance is reduced to zero as a result of cumulative losses, the Company will need to pause the recognition of losses until its share of earnings exceeds the accumulated losses resulting in the investment balance returning to zero. As of December 31, 2022 and March 31, 2022, the Company had equity investment in Jinkailong of 35%, and the carrying value of the investment is $0 for both periods presented. | |
Business combinations and non-controlling interests | (g) Business combinations and non-controlling 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 at 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the unaudited condensed consolidated statements of cash flows. | (f) Business combinations and non-controlling 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows. |
Segment reporting | (h) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 | (g) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 20. |
Cash and cash equivalents | (i) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds received from automobile purchasers as payments for automobiles, funds received from automobile lessees as payments for rentals, which were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. | (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. Cash and cash equivalents also consist of funds received from automobile purchasers as payment for automobiles, related insurances and taxes to be paid on behalf of the automobile purchasers, which funds were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. |
Accounts receivable, net | (j) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. 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, 2022 and March 31, 2022, allowance for doubtful accounts amounted to $0 and $112,905, respectively. | (i) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. 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 March 31, 2022 and March 31, 2021, allowance for doubtful accounts amounted to $112,905 and $1,739, respectively, was provided for continuing operations. As of March 31, 2021, allowance for doubtful accounts amounted to $76,428 was provided for discontinued operations. |
Inventories | (k) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. For the three and nine months ended December 31, 2022, $0 and $3,085 impairment of inventories were provided from continuing operations, respectively. | (j) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes, and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. As of March 31, 2022, impairments of inventories amounted to $60,398 was provided for certain vehicles held for sale. |
Finance lease receivables, net | (l) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is 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, 2022 and March 31, 2022, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of December 31, 2022 and March 31, 2022, finance lease receivables consisted of the following: December 31, March 31, 2022 2022 (Unaudited) Minimum lease payments receivable $ 288,026 $ 511,030 Less: Unearned interest (67,484) (103,786) Financing lease receivables, net $ 220,542 $ 407,244 Finance lease receivables, net, current portion $ 170,337 $ 314,264 Finance lease receivables, net, non-current portion $ 50,205 $ 92,980 Future scheduled minimum lease payments for investments in sales-type leases as of December 31, 2022 are as follows: Minimum future payments receivable Twelve months ending December 31, 2023 $ 196,715 Twelve months ending December 31, 2024 66,544 Twelve months ending December 31, 2025 24,767 Total $ 288,026 | (k) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as a finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2022 and March 31, 2021, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of March 31, 2022 and March 31, 2021, finance lease receivables consisted of the following: March 31, March 31, 2022 2021 Minimum lease payments receivable $ 511,030 $ 1,343,662 Less: Unearned interest (103,786) (328,585) Financing lease receivables, net $ 407,244 $ 1,015,077 Finance lease receivables, net, current portion $ 314,264 $ 541,605 Finance lease receivables, net, non-current portion $ 92,980 $ 473,472 Future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 are as follows: Minimum future payments receivable Twelve months ending March 31, 2023 $ 345,425 Twelve months ending March 31, 2024 150,633 Twelve months ending March 31, 2025 14,972 Total $ 511,030 |
Property and equipment, net | (m) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other equipment, which are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $11 from continuing operations, respectively. For the nine months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $2,936 from continuing operations, respectively. For the three and nine months ended December 31, 2021, the impairment for property and equipment was $6,007 and $35,609 from discontinued operations, respectively. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated statements of operations and comprehensive loss. | (l) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other 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: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the years ended March 31, 2022 and 2021, the Company did not recognize impairment for property and equipment from continuing operations. For the years ended March 31, 2022 and 2021, the impairment for property and equipment was $32,479 and $10,459 from discontinued operations, respectively. 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 consolidated statements of operations and comprehensive loss. |
Intangible assets, net | (n) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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, 2022 and 2021, there was no impairment of intangible assets. | (m) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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 years ended March 31, 2022 and 2021, there was no impairment of intangible assets. |
Goodwill | (o) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the three and nine months ended December 31, 2022, the Company did not record impairment against goodwill. For the three and nine months ended December 31, 2021, the company recorded an impairment of $0 and $139,580 against goodwill, respectively. | (n) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the years ended March 31, 2022 and 2021, the Company recorded an impairment of $139,930 and $0 against goodwill, respectively. |
Earnings (loss) per share | (p) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is anti-dilutive. As of December 31, 2022, the Company’s dilutive securities from the outstanding series A convertible preferred stock are convertible into approximately 870,706 shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. | (o) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is anti-dilutive. As of March 31, 2022, the Company’s dilutive securities from series A convertible preferred stock are convertible into approximately 735,295 (7,352,941 pre-reverse split) shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. |
Mezzanine Equity (redeemable) | (q) Mezzanine Equity (redeemable) The Company evaluates its convertible preferred stock in accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to determine if its convertible preferred stock should be treated as a liability or an equity. As a result, the convertible preferred stock should be treated as an equity as it did not meet the definition of liability instrument. In accordance with ASC 480-10-S99, the convertible preferred stock should be classified as a mezzanine equity, since it contained a change of control redemption right feature which is not solely within the control of the Company. | (p) Mezzanine Equity (redeemable) The Company evaluates its convertible preferred stock in accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to determine if its convertible preferred stock should be treated as a liability or an equity. As a result, the convertible preferred stock should be treated as an equity as it did not meet the definition of liability instrument. In accordance with ASC 480-10-s99, the convertible preferred stock should be classified as a mezzanine equity, since it contained a change of control redemption right feature which is not solely within the control of the Company. |
Derivative liabilities | (r) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the unaudited condensed consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. | (q) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. |
Revenue recognition | (s) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of December 31, 2022, the Company had outstanding contracts for automobile transaction and related services amounting to $26,573, of which $24,558 is expected to be completed within twelve months after December 31, 2022, and $2,015 is expected to be completed after December 31, 2023. Disaggregated information of revenues by business lines are as follows: For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 781,210 $ 510,636 $ 2,570,959 $ 1,165,625 - Service fees from NEVs leasing 49,002 43,015 291,675 87,112 - Revenues from sales of automobiles — — 225,900 — - Service fees from automobile purchase services — — 21,192 — - Service fees from management and guarantee services 8,915 11,616 31,659 54,987 - Financing revenues 8,606 22,072 30,965 86,454 - Other service fees 82,892 55,624 181,050 140,960 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 930,625 642,963 3,353,400 1,535,138 Online Ride-hailing Platform Services (Continuing Operations) 810,295 1,017,156 2,970,518 1,617,454 Total Revenues from Continuing Operations 1,740,920 1,660,119 6,323,918 3,152,592 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals — 1,436,886 — 4,274,900 - Service fees from NEVs leasing — 242 — 58,185 - Commission from Online Ride-hailing platforms — 274,643 — 274,643 - Service fees from management and guarantee services — 38,221 — 96,019 - Financing revenues — 3,677 — 15,284 - Other service fees — 129,261 — 377,410 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) — 1,882,930 — 5,096,441 Total revenues $ 1,740,920 $ 3,543,049 $ 6,323,918 $ 8,249,033 Automobile transaction and related services Operating lease revenues from automobile rentals –The Company generates revenue from sub-leasing automobiles from some online ride-hailing drivers or third-parties and leasing its own automobiles. The Company recognizes revenue wherein an automobile is transferred to the lessees and the lessees has the ability to control the asset, is accounted for under ASC Topic 842. Rental transactions are satisfied over the rental period and is recognized over time. Meanwhile, the Company recognized the revenue from operating lease by using the output method based on periodic settlement between the Company and the online ride-hailing drivers or third-parties and leasing its own automobiles. Rental periods are short term in nature, generally are twelve months or less. Service fees from NEVs leasing and automobile purchase services – Services fees from NEVs leasing and automobile purchase services are paid by lessees who rent new energy electric vehicles from the Company or automobile purchasers for a series of the services provided to them throughout the purchase process such as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installment of GPS devices, ride-hailing driver qualification and other administrative procedures. The amount of services fees for NEVs leasing is based on the product solutions while the fees for purchase is based on the sales price of the automobiles and relevant services provided. The Company recognizes revenue when all the services are completed and an automobile is delivered to the purchaser at a point in time. Accounts receivable related to the revenue from NEVs leasing is collected upon the NEVs are delivered to lessees while accounts receivables from purchase services are being collected over 36 to 48 months. The interest component is included in the non-current portion of the accounts receivable. Sales of automobiles – The Company generated revenue from sales of automobiles to the customers of Hunan Ruixi. The control over the automobile is transferred to the purchaser along with the delivery of automobiles. The amount of the revenue is based on the sale price agreed by Hunan Ruixi and the customers. The Company recognizes revenues when an automobile is delivered and control is transferred to the purchaser at a point in time. Accounts receivable related to the revenue are being collected within 12 months. Service fees from management and guarantee services – Over 95% of the Company’s customers are online ride-hailing drivers. Some of the drivers sign affiliation agreements with the Company, pursuant to which the Company provides them with management and guarantee services during the affiliation period. Service fees for management and guarantee services are paid by such automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. The Company recognizes revenue over the affiliation period when performance obligations are completed. Financing revenues – Interest income from the lease arising from the Company’s sales-type leases and bundled lease arrangements are recognized as financing revenues over the lease term based on the effective rate of interest in the lease. Online ride-hailing platform services The Company generates revenue from providing services to online ride-hailing drivers (“Drivers”) to assist them in providing transportation services to riders (“Riders”) looking for taxi/ride-hailing services. The Company earns commissions for each completed ride in an amount equal to the difference between an upfront quoted fare and the amount earned by a Driver based on actual time and distance for the ride charged to the Rider. As a result, the Company bears a single performance obligation in the transaction of connecting Drivers with Riders to facilitate the completion of a successful transportation service for Riders. The Company recognizes revenue upon completion of a ride as the single performance obligation is satisfied and the Company has the right to receive payment for the services rendered upon the completion of the ride. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the service provided to the Rider and is the principal (i.e., “gross”), or it arranges for other parties to provide the service to the Rider and is an agent (i.e., “net”). Since the Company is not primarily responsible for ride-hailing services provided to Riders, it does not have discretion in establishing the price of the online ride-hailing service and inventory risk related to the services as the Company earns commissions for each completed order as the difference between an upfront quote fare and the amount earned by a driver based on actual time and distance for ride charged to the rider. Thus, the Company recognizes revenue at a net basis. Leases - Lessor The Company recognized revenue as lessor in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75)%; and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90)%. Automobiles included in arrangements meeting these conditions are accounted for as sales-type leases. Interest income from the lease is recognized in financing revenues over the lease term. Automobile included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. The Company excludes from the measurement of its lease revenues any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company considers the economic life of most of the automobiles to be three A portion of the Company’s direct sales of automobile to end customers are made through bundled lease arrangements which typically include automobile, services (automobile purchase services, facilitation services, and management and guarantee services) and financing components where the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. Revenues under these bundled lease arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement and the financing components. Lease deliverables include the automobile and financing, while the non-lease deliverables generally consist of the services and repayment of advanced fees made on behalf of its customers. The Company considers the fixed payments for purposes of allocation to the lease elements of the contract. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed lease payments that the customer is obligated to make over the lease term. Amounts allocated to the automobile and financing elements are then subjected to the accounting estimates under ASC 842 to ensure the values reflect standalone selling prices. The remainder of any fixed payments are allocated to non-lease elements (automobile purchase services, facilitation fees, and management and guarantee services), for which these revenues are recognized in a manner consistent with the guidance for service fees from automobile purchase services, facilitation fees from automobile transactions, and service fees from management and guarantee services as discussed above. The Company’s lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon the local prevailing rates in the marketplace where its customer will be able to obtain an automobile loan under similar terms from the bank. The Company reassesses its pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. As of December 31, 2022, the Company’s pricing interest rate was 6.0% per annum. | (r) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of March 31, 2022, the Company had outstanding contracts for automobile transaction and related services amounting to $136,418, of which $91,448 is expected to be completed within twelve months after March 31, 2022, and $44,971 is expected to be completed after March 31, 2023. Disaggregated information of revenues by business lines are as follows: For the Years Ended March 31, 2022 2021 Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 1,722,480 $ 224,590 - Service fees from NEVs leasing 126,227 — - Financing revenues 101,828 184,115 - Service fees from management and guarantee services 73,554 79,565 - Service fees from automobile purchase services 1,468 188,822 - Revenues from sales of automobiles 26,019 487,947 - Other service fees 196,069 120,547 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 2,247,645 1,285,586 Online Ride-hailing Platform Services (Continuing Operations) 2,665,457 903,254 Total Revenues from Continuing Operations 4,913,102 2,188,840 Online Lending Services (Discontinued Operations) -Transaction fees — 3,488 - Service fees — 3,665 Total revenues from Online Lending Services (Discontinued Operations) — 7,153 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals 5,452,483 3,207,781 - Commissions from online ride-hailing platforms 399,600 32,797 - Service fees from NEVs leasing 232,295 — -Financing revenues 15,855 43,744 -Service fees from management and guarantee services 217,838 206,248 -Facilitation fees from automobile transactions — 1,665 -Other service fees 512,045 479,459 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) 6,830,116 3,971,694 Total Revenues from Discontinued Operations 6,830,116 3,978,847 Total revenues $ 11,743,218 $ 6,167,687 Automobile transaction and related services Operating lease revenues from automobile rentals –The Company generates revenue from sub-leasing automobiles from some online ride-hailing drivers or third-parties and leasing its own automobiles. The Company recognizes revenue wherein an automobile is transferred to the lessees and the lessees has the ability to control the asset, is accounted for under ASC Topic 842. Rental transactions are satisfied over the rental period. Rental periods are short term in nature, generally are twelve months or less. Financing revenues – Interest income from the lease arising from the Company’s sales-type leases and bundled lease arrangements are recognized as financing revenues over the lease term based on the effective rate of interest in the lease. Service fees from management and guarantee services – Over 95% of the Company’s customers are online ride-hailing drivers. The drivers sign affiliation agreements with the Company, pursuant to which the Company provides them with management and guarantee services during the affiliation period. Service fees for management and guarantee services are paid by such automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. The Company recognizes revenue over the affiliation period when performance obligations are completed. Sales of automobiles – The Company generated revenue from sales of automobiles to the customers of Jinkailong and Hunan Ruixi. The control over the automobile is transferred to the purchaser along with the delivery of automobiles. The amount of the revenue is based on the sale price agreed by Hunan Ruixi or Jinkailong and the customers. The Company recognizes revenues when an automobile is delivered and control is transferred to the purchaser at a point in time. Accounts receivable related to the revenue are being collected over 36 to 48 months. The interest component is included in the non-current portion of the accounts receivable. Service fees from NEVs leasing and automobile purchase services – Services fees from NEVs leasing and automobile purchase services are paid by lessees who rent new energy electric vehicles from the Company or automobile purchasers for a series of the services provided to them throughout the purchase process such as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installment of GPS devices, ride-hailing driver qualification and other administrative procedures. The amount of services fees for NEVs leasing is based on the product solutions while the fees for purchase is based on the sales price of the automobiles and relevant services provided. The Company recognizes revenue when all the services are completed and an automobile is delivered to the purchaser at a point in time. Accounts receivable related to the revenue from NEVs leasing is collected upon the NEVs are delivered to lessees while accounts receivables from purchase services are being collected over 36 to 48 months. The interest component is included in the non-current portion of the accounts receivable. Online ride-hailing platform services The Company generates revenue from providing services to online ride-hailing drivers (“Drivers”) to assist them in providing transportation services to riders (“Riders”) looking for taxi/ride-hailing services. The Company earns commissions for each completed ride in an amount equal to the difference between an upfront quoted fare and the amount earned by a Driver based on actual time and distance for the ride charged to the Rider. As a result, the Company bears a single performance obligation in the transaction of connecting Drivers with Riders to facilitate the completion of a successful transportation service for Riders. The Company recognizes revenue upon completion of a ride as the single performance obligation is satisfied and the Company has the right to receive payment for the services rendered upon the completion of the ride. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the service provided to the Rider and is the principal (i.e., “gross”), or it arranges for other parties to provide the service to the Rider and is an agent (i.e., “net”). Since the Company is not primarily responsible for ride-hailing services provided to Riders, it does not have inventory risk related to the services. Thus, the Company recognizes revenue at a net basis. Leases The Company accounts for leases in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75%); and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90%). Automobiles included in arrangements meeting these conditions are accounted for as sales-type leases. Interest income from the lease is recognized in financing revenues over the lease term. Automobile included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. The Company excludes from the measurement of its lease revenues any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company considers the economic life of most of the automobiles to be three A portion of the Company’s direct sales of automobile to end customers are made through bundled lease arrangements which typically include automobile, services (automobile purchase services, facilitation services, and management and guarantee services) and financing components where the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. Revenues under these bundled lease arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement and the financing components. Lease deliverables include the automobile and financing, while the non-lease deliverables generally consist of the services and repayment of advanced fees made on behalf of its customers. The Company considers the fixed payments for purposes of allocation to the lease elements of the contract. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed lease payments that the customer is obligated to make over the lease term. Amounts allocated to the automobile and financing elements are then subjected to the accounting estimates under ASC 842 to ensure the values reflect standalone selling prices. The remainder of any fixed payments are allocated to non-lease elements (automobile purchase services, facilitation fees, and management and guarantee services), for which these revenues are recognized in a manner consistent with the guidance for service fees from automobile purchase services, facilitation fees from automobile transactions, and service fees from management and guarantee services as discussed above. The Company’s lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon the local prevailing rates in the marketplace where its customer will be able to obtain an automobile loan under similar terms from the bank. The Company reassesses its pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. As of March 31, 2022, the Company’s pricing interest rate was 6.0% per annum. |
Income taxes | (t) Income taxes 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. Provisions or benefits for income taxes consists of tax estimated from taxable income plus or minus deferred tax expenses (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 consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forwards 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 utilized. 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 any significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of December 31, 2022 and March 31, 2022. As of December 31, 2022, the calendar years ended December 31, 2018 through 2022 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The Company presents deferred tax assets and liabilities as non-current in the balance sheet based on an analysis of each taxpaying component within a jurisdiction. | (s) Income taxes 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. Provisions or benefits for income taxes consists of tax estimated from taxable income plus or minus deferred tax expenses (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 consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forwards 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 utilized. 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 any significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of March 31, 2022 and March 31, 2021. As of March 31, 2022, the calendar years ended December 31, 2016 through 2020 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The Company presents deferred tax assets and liabilities as non-current in the balance sheet based on an analysis of each taxpaying component within a jurisdiction. |
Comprehensive loss | (u) Comprehensive loss Comprehensive loss includes net loss and foreign currency adjustments. Comprehensive loss is reported in the unaudited condensed 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. | (t) Comprehensive income (loss) Comprehensive income (loss) includes net income (loss) and foreign currency adjustments. Comprehensive income (loss) is reported in the consolidated statements of operations and comprehensive income (loss). Accumulated other comprehensive income (loss), as presented on the consolidated balance sheets are the cumulative foreign currency translation adjustments. |
Share-based awards | (v) Share-based awards Share-based awards granted to the Company’s employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares. At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period. | (u) Share-based awards Share-based awards granted to the Company’s employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares. At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period. |
Leases - Lessee | (w) Leases - lessee The Company accounts for leases in accordance with ASC 842. The Company enters into certain agreements as a lessee to lease automobiles and to conduct its automobiles rental operations. If any of the following criteria are met, the Company classifies the lease as a finance lease (as a lessee) or as a direct financing or sales-type lease (as a lessee): ● The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; ● The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; ● The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; ● The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or ● The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible. Finance and operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of finance and operating lease liabilities in any tested asset group and include the associated lease payments in the undiscounted future pre-tax cash flows. For the three and nine months ended December 31, 2022 and 2021, the Company recognized impairment loss of $0 and $1,964 on its finance lease ROU assets, respectively. | (v) Leases The Company accounts for leases in accordance with ASC 842. Beginning in the fiscal year ended March 31, 2020, the Company entered into certain agreements as a lessor under which it leased automobiles for a short-term period (usually under 12 months) to ride-hailing car service drivers. The Company also entered into certain agreements as a lessee to lease automobiles and to conduct its automobiles rental operations. If any of the following criteria are met, the Company classifies the lease as a finance lease (as a lessee) or as a direct financing or sales-type lease (both as a lessor): ● The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; ● The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; ● The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; ● The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or ● The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible. Finance and operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of finance and operating lease liabilities in any tested asset group and include the associated lease payments in the undiscounted future pre-tax cash flows. For the years ended March 31, 2022 and 2021, the Company recognized impairment loss on its finance lease ROU assets of $3,044 and $10,953, respectively, from its continuing operations. For the years ended March 31, 2022 and 2021, the Company recognized impairment loss of $0 and $109,427 on its finance lease ROU assets from its discontinued operations, respectively. |
Significant risks and uncertainties | (x) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amounts as of the balance sheet dates. On December 31, 2022 and March 31, 2022, approximately $91,000 and $117,000, respectively, were deposited with a bank in the United States which is insured by the U.S. government up to $250,000. On December 31, 2022 and March 31, 2022, approximately $1,361,000 and $874,000, respectively, were deposited in financial institutions located in mainland China, which were insured by the government authority. Under the Deposit Insurance System in China, an enterprise’s deposits at one bank are insured for a maximum of approximately $70,000 (RMB500,000). To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out entirely in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the social, political, economic and legal environments in the PRC as well as by the general state of the PRC economy. In addition, the Company’s business may be influenced by changes in PRC government laws, rules and policies with respect to, among other matters, the response to the COVID-19 pandemic, anti-inflationary measures, currency conversion and remittance of currency outside of China, rates and methods of taxation and other factors. b. In measuring the credit risk of accounts receivables due from the automobile purchasers (the “customers”), the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the risk exposures to the customer and its likely future development. Historically, most of the automobile purchasers would pay the Company their previously defaulted amounts within one to three months. As a result, the Company would provide full provisions on accounts receivable if the customers default on repayments for over three months. As of December 31, 2022 and March 31, 2022, allowance for doubtful accounts amounted to $0 and $112,905, respectively. For the nine months ended December 31, 2022 and 2021, the Company wrote off accounts receivable of $107,820 and $45,465 from continuing operations, respectively, which represent due from automobile purchasers from continuing operation. For the nine months ended December 31, 2021, the Company wrote off accounts receivable of $11,952 from discontinued operations, which represent due from automobile purchasers. 2) Foreign currency risk As of December 31, 2022 and March 31, 2022, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $91,000 and $117,000, respectively, in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the People’s Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significantly affected. RMB depreciated from 6.34 RMB into US$1.00 on March 31, 2022 to 6.90 RMB into US$1.00 on December 31, 2022. | (w) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amounts as of the balance sheet dates. On March 31, 2022 and March 31, 2021, approximately $117,000 and $1,560,000, respectively, were deposited with a bank in the United States which is insured by the U.S. government up to $250,000. On March 31, 2022 and March 31, 2021, approximately $874,000 and $2,339,000, respectively, were deposited in financial institutions located in mainland China, which were insured by the government authority. Under the Deposit Insurance System in China, an enterprise’s deposits at one bank are insured for a maximum of approximately $80,000 (RMB500,000). To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out entirely in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the social, political, economic and legal environments in the PRC as well as by the general state of the PRC economy. In addition, the Company’s business may be influenced by changes in PRC government laws, rules and policies with respect to, among other matters, the response to the COVID-19 pandemic, anti-inflationary measures, currency conversion and remittance of currency outside of China, rates and methods of taxation and other factors. b. In measuring the credit risk of accounts receivables due from the automobile purchasers (the “customers”), the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the risk exposures to the customer and its likely future development. Historically, most of the automobile purchasers would pay the Company their previously defaulted amounts within one to three months. As a result, the Company would provide full provisions on accounts receivable if the customers default on repayments for over three months. As of March 31, 2022 and March 31, 2021, allowance for doubtful accounts amounted to $112,905 and $1,739 was provided for continuing operations, respectively. As of March 31, 2021, allowance for doubtful accounts amounted to $76,428 was provided for discontinued operations. For the years ended March 31, 2022 and 2021, the Company wrote off accounts receivable of $44,227 and $89,921 from continuing operations, respectively, which represent due from automobile purchasers from continuing operation. For the years ended March 31, 2022 and 2021, the Company wrote off accounts receivable of $16,273 and $395,463 from discontinued operations, respectively, which represent due from automobile purchasers. 2) Foreign currency risk As of March 31, 2022 and March 31, 2021, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $117,000 and $2,073,000, respectively, in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the People’s Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significantly affected. RMB was appreciated from 6.55 RMB into US$1.00 on March 31, 2021 to 6.34 RMB into US$1.00 on March 31, 2022. |
Reclassification | (y) Reclassification Certain items of operating expenses in the unaudited condensed consolidated statements of operations and comprehensive loss of comparative period have been reclassified to conform to the unaudited condensed consolidated financial statements for the current period. The reclassification has no impact on net loss. | (x) Reclassification Certain items of operating expenses in the consolidated statements of operations and comprehensive of comparative period have been reclassified to conform to the consolidated financial statements for the current period. The reclassification has no impact on net loss. |
Recently issued accounting standards | (z) Recently issued accounting standards In June 2016, the FASB issued new accounting guidance ASU 2016-13 for recognition of credit losses on financial instruments, which is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. In November 2019, the FASB issued ASU No. 2019-10, which is to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet adopted this update and it will become effective on April 1, 2023, assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. CECL adoption will have broad impact on the financial statements of financial services firms, which will affect key profitability and solvency measures. Some of the more notable expected changes include: - Higher allowance on financial guarantee reserve and finance lease receivable levels and related deferred tax assets. While different asset types will be impacted differently, the expectation is that reserve levels will generally increase across the board for all financial firms. - Increased reserve levels may lead to a reduction in capital levels. - As a result of higher reserving levels, the expectation is that CECL will reduce cyclicality in financial firms’ results, as higher reserving in “good times” will mean that less dramatic reserve increases will be loan related income (which will continue to be recognized on a periodic basis based on the effective interest method) and the related credit losses (which will be recognized up front at origination). This will make periods of loan expansion seem less profitable due to the immediate recognition of expected credit losses. Periods of stable or declining loan levels will look comparatively profitable as the income trickles in for loans, where losses had been previously recognized. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the unaudited condensed consolidated financial position, statements of operations and cash flows of the Company. | (y) Recently issued accounting standards In June 2016, the FASB issued new accounting guidance ASU 2016-13 for recognition of credit losses on financial instruments, which is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. In November 2019, the FASB issued ASU No. 2019-10, which is to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet adopted this update and it will become effective on April 1, 2023, assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. CECL adoption will have broad impact on the financial statements of financial services firms, which will affect key profitability and solvency measures. Some of the more notable expected changes include: - Higher allowance on financial guarantee reserve and finance lease receivable levels and related deferred tax assets. While different asset types will be impacted differently, the expectation is that reserve levels will generally increase across the board for all financial firms. - Increased reserve levels may lead to a reduction in capital levels. - As a result of higher reserving levels, the expectation is that CECL will reduce cyclicality in financial firms’ results, as higher reserving in “good times” will mean that less dramatic reserve increases will be loan related income (which will continue to be recognized on a periodic basis based on the effective interest method) and the related credit losses (which will be recognized up front at origination). This will make periods of loan expansion seem less profitable due to the immediate recognition of expected credit losses. Periods of stable or declining loan levels will look comparatively profitable as the income trickles in for loans, where losses had been previously recognized. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The adoption of this standard on April 1, 2021 did not have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendment in this Update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, the Board decided to reduce the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this Update are effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company has adopted this standard for the fiscal year beginning April 1, 2021. In May 2021, The FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this Update provide the following guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic: (1) An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. (2) An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows: a. For a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a “debt” or “debt instrument”), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged. Specifically, an entity should consider: a. An increase or a decrease in the fair value of the modified or exchanged written call option in applying the 10 percent cash flow test and/or calculating the fees between debtor and creditor in accordance with Subtopic 470-50, Debt—Modifications and Extinguishments. ii. An increase (but not a decrease) in the fair value of the modified or exchanged written call option in calculating the third-party costs in accordance with Subtopic 470-50. b. For all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged. c. An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration, as follows: a. A financing transaction to raise equity. The effect should be recognized as an equity issuance cost in accordance with the guidance in Topic 340, Other Assets and Deferred Costs. b. A financing transaction to raise or modify debt. The effect should be recognized as a cost in accordance with the guidance in Topic 470, Debt, and Topic 835, Interest. c. Other modifications or exchanges that are not related to financings or compensation for goods or services or other exchange 3 transactions within the scope of another Topic. The effect should be recognized as a dividend. For entities that present EPS in accordance with Topic 260, that dividend should be an adjustment to net income (or net loss) in the basic EPS calculation. An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option to compensate for goods or services in accordance with the guidance in Topic 718, Compensation—Stock Compensation. In a multiple-element transaction (for example, one that includes both debt financing and equity financing), the total effect of the modification should be allocated to the respective elements in the transaction. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. Adoption of this new update will not materially impact the Company’s consolidated financial statements and related disclosures. In July 2021, The FASB issued ASU 2021-05, “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” The amendments in this Update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. The amendments amend the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3. (2) The lessor would have otherwise recognized a day-one loss. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The leased asset continues to be subject to the measurement and impairment requirements under other applicable GAAP 3 before and after the lease transaction (for example, Topic 360, Property, Plant, and Equipment). The amendments are effective for fiscal years beginning after December 15, 2021, for all entities, and interim periods within those fiscal years for public business entities and interim periods within fiscal years beginning after December 15, 2022, for all other entities. Adoption of this new update will not materially impact the Company’s consolidated financial statements and related disclosures. 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 ACTIVITIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
Schedule of total assets and total liabilities VIEs | On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The term of Youlu is similar to the Youlu VIE Agreements with Sichuan Senmiao as described above. According to the VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the consolidated financial statements. Total assets and total liabilities of the Company’s VIEs included in the Company’s consolidated financial statements as of March 31, 2022 and 2021 are as follows after Jinkailong and Youlu deconsolidated from the Company’s consolidated financial statements at March 31, 2022: March 31, March 31, 2022 2021 Current assets: Cash and cash equivalents $ — $ 27,229 Accounts receivable, net, current portion — — Prepayments, other receivables and other assets, net — 135 Other receivable- intercompany — 1,718,343 Current assets - discontinued operations (1) — 2,995,558 Total current assets — 4,741,265 Property and equipment, net: Property and equipment, net — — Property and equipment, net - discontinued operations — 454,228 Total property and equipment, net — 454,228 Other assets: Operating lease right-of-use assets, net, related parties — 9,896 Other assets - discontinued operations — 4,674,403 Total other assets — 4,684,299 Total assets $ — $ 9,879,792 Current liabilities: Accrued expenses and other liabilities $ — $ 581,126 Other payable - intercompany — 2,715,847 Due to related parties and affiliates — 82,908 Operating lease liabilities - related parties — 4,989 Current liabilities - discontinued operations (2) — 15,896,580 Total current liabilities — 19,281,450 Other liabilities: Operating lease liabilities, non-current - related parties — 3,850 Other liabilities - discontinued operations — 2,250,393 Total other liabilities — 2,254,243 Total liabilities $ — $ 21,535,693 (1) Includes intercompany receivables of $0 and intercompany payables of $274,731 as of March 31, 2022 and March 31, 2021, respectively. (2) Includes intercompany payables of $0 and $4,203,454 as of March 31, 2022 and March 31, 2021, respectively. | |
Schedule of net revenue, loss from operations and net loss of the VIEs | For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021* (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net revenue from continuing operations $ — $ 152 $ — $ 23,380 Net revenue from discontinued operations $ — $ 1,882,930 $ — $ 5,096,441 Loss from operations from continuing operations $ — $ (57,616) $ — $ (107,802) Loss from operations from discontinued operations $ — $ (390,710) $ — $ (2,182,402) Net loss from continuing operations attributable to stockholders $ — $ (57,141) $ — $ (105,760) Net loss from discontinued operations attributable to stockholders — (309,583) — (1,789,880) Net loss attributable to stockholders $ — $ (366,724) $ — $ (1,895,640) * Net revenue, loss from operations and net loss attributable to stockholders for the three and nine months ended December 31, 2021 were retroactively restated for comparative purpose. | Net revenue, loss from operations and net loss of the VIEs that were included in the Company’s consolidated financial statements for the years ended March 31, 2022 and 2021 are as follows: For the Years Ended March 31, 2022 2021* Net revenue from continuing operations $ 32,817 $ — Net revenue from discontinued operations $ 6,830,116 $ 3,978,847 Loss from operations from continuing operations $ (179,068) $ (532,455) Loss from operations from discontinued operations $ (2,537,715) $ (4,254,403) Net loss from continuing operations attributable to stockholders $ (175,283) $ (530,983) Net loss from discontinued operations attributable to stockholders $ (2,032,934) $ (3,722,648) Net loss attributable to stockholders $ (2,208,218) $ (4,253,630) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of translation of amounts from RMB into US$ | December 31, March 31, 2022 2022 Balance sheet items, except for equity accounts 6.8972 6.3400 For the Three Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss 7.1120 6.3937 For the Nine Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.8547 6.4408 | Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: March 31, March 31, 2022 2021 Balance sheet items, except for equity accounts 6.3400 6.5527 For the Years Ended March 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.4178 6.7960 |
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | Carrying Value as of Fair Value Measurement as of December 31, 2022 December 31, 2022 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 572,021 $ — $ — $ 572,021 Fair Value Measurement as of Carrying Value as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2022 and March 31, 2021: Carrying Value at Fair Value Measurement at March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 Carrying Value at Fair Value Measurement at March 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 1,278,926 $ — $ — $ 1,278,926 |
Schedule of reconciliation of beginning and ending balance of the assets and liabilities measured at fair value on recurring basis | August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2021 $ 80,268 $ 163,572 $ 397,525 $ 637,561 $ — $ — $ — $ — $ 1,278,926 Derivative liabilities recognized at grant date — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — (45,675) BALANCE as of March 31, 2022 1,913 10,525 44,581 65,543 778,488 58,387 1,165,465 90,302 2,215,204 Change in fair value of derivative liabilities (1,878) (10,342) (34,526) (51,581) (589,804) (44,236) (843,900) (65,383) (1,641,650) Cashless exercise on November 2021 Investor warrant — — — — — — (1,533) — (1,533) BALANCE as of December 31, 2022 (Unaudited) $ 35 $ 183 $ 10,055 $ 13,962 $ 188,684 $ 14,151 $ 320,032 $ 24,919 $ 572,021 | The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 and 2021: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Series B Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2020 $ 315,923 $ 1,371 $ 25,236 $ — $ — $ — $ — $ — $ — $ 342,530 Derivative liabilities recognized at grant date — — — 241,919 755,274 — — — — 997,193 Change in fair value of derivative liabilities 1,234,630 — 138,336 455,162 (117,713) — — — — 1,710,415 Fair value of warrants exercised (1,470,285) — — (299,556) — — — — — (1,769,841) Warrant forfeited due to expiration — (1,371) — — — — — — — (1,371) BALANCE as of March 31, 2021 80,268 — 163,572 397,525 637,561 — — — — 1,278,926 Derivative liabilities recognized at grant date — — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) — (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — — (45,675) BALANCE as of March 31, 2022 $ 1,913 $ — $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 |
Schedule of estimates of fair value to warrants using Black Scholes valuation model | June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of December 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 Expected term (years) 0.47 0.47 2.59 3.12 3.12 3.37 3.37 3.86 3.86 Risk-free interest rate 2.22 % 2.22 % 4.35 % 4.21 % 4.21 % 4.18 % 4.18 % 4.12 % 4.12 % Expected volatility 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % As of March 31, 2022 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022. | The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of March 31, 2022 and March 31, 2021. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of March 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % As of March 31, 2021 June 20, 2019 August 4, 2020 February 10, 2021 Series A Placement Agent Underwriters’ Placement Agent ROFR Granted Date Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 6,993 14,251 31,808 38,044 15,218 Valuation date 3/31/2021 3/31/2021 3/31/2021 3/31/2021 3/31/2021 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 Stock price* $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Expected term (years) 2.22 2.22 4.35 4.87 4.87 Risk-free interest rate 0.20 % 0.20 % 0.73 % 0.88 % 0.88 % Expected volatility 132 % 132 % 132 % 132 % 132 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
Schedule of finance lease receivables | December 31, March 31, 2022 2022 (Unaudited) Minimum lease payments receivable $ 288,026 $ 511,030 Less: Unearned interest (67,484) (103,786) Financing lease receivables, net $ 220,542 $ 407,244 Finance lease receivables, net, current portion $ 170,337 $ 314,264 Finance lease receivables, net, non-current portion $ 50,205 $ 92,980 | As of March 31, 2022 and March 31, 2021, finance lease receivables consisted of the following: March 31, March 31, 2022 2021 Minimum lease payments receivable $ 511,030 $ 1,343,662 Less: Unearned interest (103,786) (328,585) Financing lease receivables, net $ 407,244 $ 1,015,077 Finance lease receivables, net, current portion $ 314,264 $ 541,605 Finance lease receivables, net, non-current portion $ 92,980 $ 473,472 |
Schedule of future scheduled minimum lease payments for investments in sales-type leases | Minimum future payments receivable Twelve months ending December 31, 2023 $ 196,715 Twelve months ending December 31, 2024 66,544 Twelve months ending December 31, 2025 24,767 Total $ 288,026 | Future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 are as follows: Minimum future payments receivable Twelve months ending March 31, 2023 $ 345,425 Twelve months ending March 31, 2024 150,633 Twelve months ending March 31, 2025 14,972 Total $ 511,030 |
Schedule of property and equipment | Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years | Property and equipment primarily consist of automobiles, leasehold improvements, computers and other 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: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobiles 3 - 5 years |
Schedule of separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method | Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 years | 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 years |
Schedule of disaggregated information of revenues | For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 781,210 $ 510,636 $ 2,570,959 $ 1,165,625 - Service fees from NEVs leasing 49,002 43,015 291,675 87,112 - Revenues from sales of automobiles — — 225,900 — - Service fees from automobile purchase services — — 21,192 — - Service fees from management and guarantee services 8,915 11,616 31,659 54,987 - Financing revenues 8,606 22,072 30,965 86,454 - Other service fees 82,892 55,624 181,050 140,960 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 930,625 642,963 3,353,400 1,535,138 Online Ride-hailing Platform Services (Continuing Operations) 810,295 1,017,156 2,970,518 1,617,454 Total Revenues from Continuing Operations 1,740,920 1,660,119 6,323,918 3,152,592 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals — 1,436,886 — 4,274,900 - Service fees from NEVs leasing — 242 — 58,185 - Commission from Online Ride-hailing platforms — 274,643 — 274,643 - Service fees from management and guarantee services — 38,221 — 96,019 - Financing revenues — 3,677 — 15,284 - Other service fees — 129,261 — 377,410 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) — 1,882,930 — 5,096,441 Total revenues $ 1,740,920 $ 3,543,049 $ 6,323,918 $ 8,249,033 | For the Years Ended March 31, 2022 2021 Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 1,722,480 $ 224,590 - Service fees from NEVs leasing 126,227 — - Financing revenues 101,828 184,115 - Service fees from management and guarantee services 73,554 79,565 - Service fees from automobile purchase services 1,468 188,822 - Revenues from sales of automobiles 26,019 487,947 - Other service fees 196,069 120,547 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 2,247,645 1,285,586 Online Ride-hailing Platform Services (Continuing Operations) 2,665,457 903,254 Total Revenues from Continuing Operations 4,913,102 2,188,840 Online Lending Services (Discontinued Operations) -Transaction fees — 3,488 - Service fees — 3,665 Total revenues from Online Lending Services (Discontinued Operations) — 7,153 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals 5,452,483 3,207,781 - Commissions from online ride-hailing platforms 399,600 32,797 - Service fees from NEVs leasing 232,295 — -Financing revenues 15,855 43,744 -Service fees from management and guarantee services 217,838 206,248 -Facilitation fees from automobile transactions — 1,665 -Other service fees 512,045 479,459 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) 6,830,116 3,971,694 Total Revenues from Discontinued Operations 6,830,116 3,978,847 Total revenues $ 11,743,218 $ 6,167,687 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Schedule of gain on deconsolidation | March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 | |
Online Lending Business [Member] | ||
Schedule of disposal Groups including discontinued operations | Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: December 31, March 31, 2022 2022 (Unaudited) Current liabilities Accrued expenses and other liabilities $ 468,376 $ 509,540 Due to a stockholder 17,360 18,886 Total current liabilities 485,736 528,426 | Carrying amounts of major classes of assets included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current assets Prepayments, other receivables and other assets, net $ — $ 393,348 Total current assets — 393,348 Property and equipment, net — 5,592 Total assets $ — $ 398,940 Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current liabilities Accrued expenses and other liabilities $ 509,540 $ 2,288,066 Due to a stockholder 18,886 48,795 Total current liabilities 528,426 2,336,861 Total liabilities $ 528,426 $ 2,336,861 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Online P2P lending services in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ — $ 7,153 Operating expenses Selling, general and administrative expenses — (88,438) Total operating expenses — (88,438) Loss from discontinued operations — (81,285) Other income, net — 19,309 Loss before income taxes — (61,976) Income tax expenses — — Net loss attributable to stockholders $ — $ (61,976) |
Jinkailong [Member] | ||
Schedule of disposal Groups including discontinued operations | The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended December 31, 2022 and 2021. For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $ — $ 1,882,930 $ — $ 5,096,441 Cost of revenue — (1,375,818) — (4,295,661) Gross profit — 507,112 — 800,780 Operating expenses Selling, general and administrative expenses — (525,673) — (2,597,474) Amortization of intangible assets — (395,398) — (395,398) Impairments of intangible assets and goodwill — (6,007) — (35,609) Recovery of bad debts expense — 29,256 — 45,299 Total operating expenses — (897,822) — (2,983,182) Loss from discontinued operations — (390,710) — (2,182,402) Other expense, net — (27,645) — (236,355) Income (loss) before income taxes — (418,355) — (2,418,757) Income tax expenses — — — — Net loss — (418,355) — (2,418,757) Less: net loss from discontinued operations attributable to noncontrolling interest — (108,772) — (628,877) Net loss attributable to stockholders $ — $ (309,583) $ — $ (1,789,880) | Carrying amounts of major classes of assets included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current assets Cash and cash equivalents $ — $ 107,546 Accounts receivable, net — 935,164 Prepayments, receivables and other assets, net — 1,245,195 Due from related parties — 39,572 Total current assets — 2,327,477 Property and equipment, net — 448,816 Other assets Operating lease right-of-use assets, net — 265,470 Financing lease right-of use assets, net — 4,201,693 Accounts receivable, net, noncurrent — 207,240 Total other assets — 4,674,403 Total assets $ — $ 7,450,696 Carrying amounts of major classes of liabilities included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current liabilities Borrowings from financial institutions $ — $ 310,662 Advance from customers — 45,413 Income tax payable — 17,408 Accrued expenses and other liabilities — 3,782,365 Due to related parties and affiliates — 269,918 Operating lease liabilities — 99,831 Finance lease liabilities — 4,814,808 Total current liabilities — 9,340,405 Other liabilities Borrowings from financial institutions, noncurrent — 44,962 Operating lease liabilities, non-current — 167,822 Financing lease liabilities, non-current — 2,037,609 Total other liabilities — 2,250,393 Total liabilities $ — $ 11,590,798 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ 6,830,116 $ 3,971,694 Cost of revenues (5,183,806) (3,985,413) Gross profit 1,646,310 (13,719) Operating expenses Selling, general and administrative expenses (4,139,800) (4,367,529) Long live assets impairment (32,479) (119,886) Recovery of (Provision for) doubtful account (11,746) 328,016 Total operating expenses (4,184,025) (4,159,399) Loss from discontinued operations (2,537,715) (4,173,118) Other expense, net (209,494) (945,825) Loss before income taxes (2,747,209) (5,118,943) Income tax expenses — (6,295) Net Loss (2,747,209) (5,125,238) Less: net loss from discontinued operations attributable to noncontrolling interest 714,274 1,332,562 Net loss attributable to stockholders $ (2,032,935) $ (3,792,676) |
Schedule of gain on deconsolidation | Consolidation included Jinkailong as of Deconsolidation Consolidation as of March 31, 2022 of Jinkailong March 31, 2022 ASSETS Current assets Cash and cash equivalents $ 1,241,452 $ (56,231) $ 1,185,221 Accounts receivable, net, current portion 766,373 (348,351) 418,022 Inventories 286,488 — 286,488 Finance lease receivables, net, current portion 314,264 — 314,264 Prepayments, other receivables and other assets, net 3,699,361 (986,153) 2,713,208 Due from related parties, current portion (1) 51,135 631,200 682,335 Total current assets 6,359,073 (759,535) 5,599,538 Property and equipment, net Property and equipment, net 5,916,327 (257,554) 5,658,773 Total property and equipment, net 5,916,327 (257,554) 5,658,773 Other assets Operating lease right-of-use assets, net 306,330 (196,709) 109,621 Operating lease right-of-use assets, net, related parties 515,906 — 515,906 Financing lease right-of-use assets, net 1,349,922 (1,043,989) 305,933 Intangible assets, net 959,551 — 959,551 Accounts receivable, net, noncurrent 2,732 (2,663) 69 Finance lease receivables, net, noncurrent 92,980 — 92,980 Due from a related party, noncurrent (1) — 6,635,746 6,635,746 Total other assets 3,227,421 5,392,385 8,619,806 Total assets $ 15,502,821 $ 4,375,296 $ 19,878,117 LIABILITIES AND EQUITY (DEFICIENCY) Current liabilities Borrowings from financial institutions $ 471,913 $ (326,371) $ 145,542 Accounts payable 14,446 - 14,446 Advances from customers 1,087,928 (967,299) 120,629 Income tax payable 17,992 (17,992) — Accrued expenses and other liabilities 7,316,269 (4,871,902) 2,444,367 Due to related parties and affiliates 478,825 (467,143) 11,682 Operating lease liabilities 164,321 (114,144) 50,177 Operating lease liabilities - related parties 330,781 — 330,781 Financing lease liabilities 3,502,481 (3,197,924) 304,557 Derivative liabilities 2,215,204 — 2,215,204 Current liabilities - discontinued operations 528,426 — 528,426 Total current liabilities 16,128,586 (9,962,775) 6,165,811 Other liabilities Borrowings from financial institutions, noncurrent 9,271 (9,271) — Operating lease liabilities, non-current 135,323 (87,413) 47,910 Operating lease liabilities, non-current - related parties 226,896 — 226,896 Financing lease liabilities, non-current 793,980 (792,604) 1,376 Deferred tax liability 46,386 — 46,386 Total other liabilities 1,211,856 (889,288) 322,568 Total liabilities 17,340,442 (10,852,063) 6,488,379 Commitments and contingencies Mezzanine Equity (redeemable) Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 shares issued and outstanding at December 31, 2021), net of issuance costs of $118,344 820,799 — 820,799 Stockholders’ equity (deficiency) Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 shares issued and outstanding at March 31, 2022.) (2) 630 — 630 Additional paid-in capital 42,803,033 — 42,803,033 Accumulated deficit (45,553,090) 10,951,545 (34,601,545) Accumulated other comprehensive income (loss) (780,112) 670,658 (109,454) Total Senmiao Technology Limited stockholders’ equity (deficiency) (3,529,539) 11,622,203 8,092,664 Non-controlling interests 871,119 3,605,156 4,476,275 Total equity (deficiency) 2,658,420 15,227,359 12,568,939 Total liabilities and equity (deficiency) $ 15,502,821 $ 4,375,296 $ 19,878,117 (1) As result of deconsolidation, the Company recognized $7,298,208 of related party receivable from Jinkailong, of which, $6,635,746 is to be repaid over a period from April 2023 to December 2026, classified as due from related parties, noncurrent. Besides, the deconsolidation also excluded $31,263 receivables due from related parties, which was recorded by Jinkailong. (2) Giving retroactive effect to the 1-for-10 March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | ||
Schedule of accounts receivables | December 31, March 31, 2022 2022 (Unaudited) Receivables of automobile sales due from automobile purchasers $ 107,246 $ 392,530 Receivables of service fees due from automobile purchasers 15,949 17,350 Receivables of online ride hailing fees from online ride-hailing drivers 46,848 121,116 Receivables of operating lease 34,720 — Less: Allowance for doubtful accounts — (112,905) Accounts receivable, net $ 204,763 $ 418,091 Accounts receivable, net, current portion $ 204,763 $ 418,022 Accounts receivable, net, non-current portion $ — $ 69 | As of March 31, 2022 and March 31, 2021, accounts receivable were comprised of the following: March 31, March 31, 2022 2021 Receivables of automobile sales due from automobile purchasers $ 392,530 $ 760,126 Receivables of service fees due from automobile purchasers 17,350 731,962 Receivables of online ride hailing fees from online ride-hailing drivers 121,116 162,197 Receivables of operating lease — 170,707 Less: Unearned interest — (40,447) Less: Allowance for doubtful accounts (112,905) (78,167) Accounts receivable, net 418,091 1,706,378 Accounts receivable, net – discontinued operations — (1,142,404) Accounts receivable, net – continuing operations $ 418,091 $ 563,974 Accounts receivable, net, current portion – continuing operations $ 418,022 $ 502,031 Accounts receivable, net, non-current portion – continuing operations 69 61,943 Accounts receivable, net, current portion – discontinued operations — 935,164 Accounts receivable, net, non-current portion – discontinued operations $ — $ 207,240 |
Schedule of movement of allowance for doubtful accounts | December 31, March 31, 2022 2022 (Unaudited) Beginning balance $ 112,905 $ 78,167 Addition 3,392 153,988 Write off (107,820) (44,227) Deconsolidation of Jinkailong — (76,428) Translation adjustment (8,477) 1,405 Ending balance $ — $ 112,905 | Movement of allowance for doubtful accounts for March 31, 2022 and March 31, 2021 are as follows: March 31, March 31, 2022 2021 Beginning balance $ 78,167 $ 379,689 Addition 153,988 374,785 Recovery — (209,723) Write off (44,227) (485,384) Deconsolidation of Jinkailong (76,428) — Translation adjustment 1,405 18,800 Ending balance $ 112,905 $ 78,167 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INVENTORIES | ||
Schedule of inventories | December 31, March 31, 2022 2022 (Unaudited) Automobiles (i) $ — $ 286,488 | March 31, March 31, 2022 2021 Automobiles (i) $ 286,488 $ 127,933 (i) As of March 31, 2022, the Company owned 36 automobiles with a total value of $346,886 for sale or sales-type leases. As of March 31, 2021, the Company owned three automobiles with a total value of $47,410 for sale, and six automobiles with a total value of $80,523 for either leasing or sale. |
PREPAYMENTS, OTHER RECEIVABLE_2
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | ||
Schedule of prepayments, receivables and other assets | December 31, March 31, 2022 2022 (Unaudited) Deposits (i) $ 618,689 $ 731,279 Receivables from aggregation platforms (ii) 253,168 163,384 Prepaid expenses (iii) 242,779 957,200 Due from automobile purchasers, net (iv) 103,333 238,421 Employee advances 8,951 11,054 Value added tax (“VAT”) recoverable (v) 93,214 597,884 Others 42,683 13,986 Total prepayments, receivables and other assets $ 1,362,817 $ 2,713,208 | As of March 31, 2022 and March 31, 2021, the prepayments, receivables and other assets were comprised of the following: March 31, March 31, 2022 2021 Receivables from borrowers of online lending platform, net (i) $ — $ 393,348 Prepaid expenses (ii) 957,200 829,032 Deposits (iii) 731,279 537,619 Value added tax (“VAT”) recoverable 597,884 99,445 Due from automobile purchasers, net (iv) 238,421 504,792 Receivables from aggregation platforms (v) 163,384 867,614 Prepayments for automobiles (vi) — 1,026,802 Employee advances 11,054 9,739 Others 13,986 30,235 Total prepayments, receivables and other assets 2,713,208 4,298,626 Total prepayments, receivables and other assets - discontinued operations — (1,638,543) Total prepayments, receivables and other assets - continuing operations $ 2,713,208 $ 2,660,083 (i ) Receivables from borrowers of online lending platform, net The balance of receivables from borrowers of online lending platform represented the outstanding loans the Company assumed from investors on the Company’s discontinued P2P lending platform, which will be collected from related borrowers. As of March 31, 2022 and March 31, 2021, the Company recorded allowance of $4,024,651 and $3,894,011, respectively, against doubtful receivables. (ii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense and etc. that will expire within one year. (iii) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (iv) Due from automobile purchasers, net 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. As of March 31, 2022 and 2021, the Company recorded allowance of $0 and $3,240, from continuing operations, respectively, against doubtful receivables. As of March 31, 2021, the Company recorded allowance of $38,519 from discontinued operations against doubtful receivables. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $84,600 and $175,460, respectively, while wrote off balance due from automobile purchasers of $84,600 and $172,336, respectively, and recovered allowance against the balance due from automobile purchasers of $3,308 and $0, respectively from continuing operations. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $35,983 and $93,246, respectively, while wrote off balance due from automobile purchasers of $1,134 and $295,741, respectively, and recovered allowance against the balance due from automobile purchasers of $12,352 and $125,940, respectively from discontinued operations. (v) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. (v i) Prepayments for automobiles The balance represented advanced payments in purchasing automobiles from auto dealers or other parties. |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Dec. 31, 2022 | |
OTHER NON-CURRENT ASSETS | |
Schedule of other current assets | December 31, March 31, 2022 2022 (Unaudited) Prepayments of automobiles purchased (i) $ 837,731 $ — |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | ||
Schedule of property and equipment | December 31, March 31, 2022 2022 (Unaudited) Leasehold improvements $ 182,429 $ 198,463 Computer equipment 44,433 47,849 Office equipment, fixtures and furniture 78,036 81,898 Automobiles 4,652,593 6,463,698 Subtotal 4,957,491 6,791,908 Less: accumulated depreciation and amortization (1,427,295) (1,133,135) Total property and equipment, net $ 3,530,196 $ 5,658,773 | March 31, March 31, 2022 2021 Leasehold improvements $ 198,463 $ 192,020 Electronic devices 47,849 53,200 Office equipment, fixtures and furniture 81,898 104,735 Vehicles 6,463,698 3,778,811 Subtotal 6,791,908 4,128,766 Less: accumulated depreciation and amortization (1,133,135) (423,027) Total property and equipment, net 5,658,773 3,705,739 Total property and equipment, net - discontinued operations — (454,408) Total property and equipment, net - continuing operations $ 5,658,773 $ 3,251,331 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INTANGIBLE ASSETS, NET | ||
Schedule of intangible assets | December 31, March 31, 2022 2022 (Unaudited) Software $ 793,195 $ 796,042 Online ride-hailing platform operating licenses 439,662 450,701 Subtotal 1,232,857 1,246,743 Less: accumulated amortization (413,186) (287,192) Total intangible assets, net $ 819,671 $ 959,551 | March 31, March 31, 2022 2021 Software $ 796,042 $ 794,548 Online ride-hailing platform operating licenses 450,701 297,258 Less: Accumulated amortization (287,192) (123,675) Total intangible assets, net $ 959,551 $ 968,131 |
Schedule of amortization expense | Amortization expenses Twelve months ending December 31, 2023 $ 179,616 Twelve months ending December 31, 2024 169,528 Twelve months ending December 31, 2025 133,240 Twelve months ending December 31, 2026 85,157 Twelve months ending December 31, 2027 78,586 Thereafter 173,544 Total $ 819,671 | Amortization expenses Twelve months ending March 31, 2023 $ 186,772 Twelve months ending March 31, 2024 178,660 Twelve months ending March 31, 2025 171,289 Twelve months ending March 31, 2026 111,011 Twelve months ending March 31, 2027 79,563 Thereafter 232,256 Total $ 959,551 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Schedule of accrued expenses and other liabilities | December 31, March 31, 2022 2022 (Unaudited) Accrued payroll and welfare $ 1,305,857 $ 1,176,442 Payables to drivers from aggregation platforms (i) 845,726 806,921 Deposits (ii) 555,513 783,830 Accrued expenses 261,085 94,106 Other taxes payable 113,083 5,260 Loan repayments received on behalf of financial institutions (iii) 63,989 28,704 Payables for expenditures on automobile transaction and related services 26,562 56,222 Other payables 11,770 2,422 Total accrued expenses and other liabilities 3,183,585 2,953,907 Total accrued expenses and other liabilities - discontinued operations (468,376) (509,540) Total accrued expenses and other liabilities - continuing operations $ 2,715,209 $ 2,444,367 (i) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (ii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iii) 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. | March 31, March 31, 2022 2021 Payables to investors of online lending platform (i) $ — $ 1,795,066 Accrued payroll and welfare 1,176,442 1,306,509 Payables to drivers from aggregation platforms (ii) 806,921 2,352,264 Deposits (iii) 783,830 1,639,681 Accrued expenses 94,106 6,090 Payables for expenditures on automobile transaction and related services 56,222 159,388 Loan repayments received on behalf of financial institutions (iv) 28,704 839,770 Other taxes payable 5,260 398,220 Other payables (v) 2,422 446,670 Total accrued expenses and other liabilities 2,953,907 8,943,658 Total accrued expenses and other liabilities - discontinued operations (509,540) (6,070,431) Total accrued expenses and other liabilities - continuing operations $ 2,444,367 $ 2,873,227 (i) The balance of payables to investors of online lending platform represented the outstanding loans from investors on the Company’s discontinued P2P lending platform, which was assumed by the Company in connection with the Plan to discontinue its online lending services business. As of March 31, 2022, the Company has fully settled the outstanding loans. (ii) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (iii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iv) 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. (v) The balance of other payables represented amount due to suppliers and vendors for operations purposes. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
EQUITY | ||
Summary of outstanding warrants | The Company has warrants outstanding as follows giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2021 110,107 110,107 $ 11.60 4.09 Granted 5,985,591 5,985,591 $ 2.11 5.00 Exercised (4,400) (4,400) — — Balance, March 31, 2022 6,091,298 6,091,298 $ 2.28 4.32 Exercised (25,000) (25,000) — — Balance, December 31, 2022 (Unaudited) 6,066,298 6,066,298 $ 2.29 3.81 | Subsequent to the initial recording, the change in the fair value of the warrants, determined under the Black-Scholes valuation model, on each reporting date will result in either an increase or decrease the amount recorded as liability, based on the fluctuations with the Company’s stock price with a corresponding adjustment to other income (or expense). During the year ended March 31, 2022, the change of fair value was a gain of $3,115,263 recognized in the consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022, the fair value of the derivative instrument totaled $1,255,767. The Company has warrants outstanding, pre reverse split, as follows: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2020 1,519,602 1,519,602 $ 1.76 3.21 Granted 1,100,609 1,100,609 $ 1.48 5.00 Forfeited (3,132) (3,132) — — Exercised (1,516,010) (1,516,010) — — Balance, March 31, 2021 1,101,069 1,101,069 $ 1.16 4.09 Granted 13,851,222 13,851,222 $ 0.91 5.00 Exercised (44,029) (44,029) — — Balance, March 31, 2022 14,908,262 14,908,262 $ 0.93 4.32 |
Summary of allocation of net proceeds | Fair value of the warrants $ 3,562,404 Common stock 2,208,649 Total net proceeds $ 5,771,053 | |
Schedule of RSU activity | Fair value of Investor warrants $ 4,060,857 Series A Preferred Stock 939,143 Total gross proceeds 5,000,000 Issuance cost (630,063) Total net proceeds $ 4,369,937 | |
Schedule of fair value of derivative instrument allocated | Fair value of investor warrants $ 4,060,857 Fair value of placement agent warrants (i) 310,173 Total fair value of warrants allocated to derivative liabilities $ 4,371,030 (i) The issuance costs for placement agent warrants which was classified as liability were immediately expensed. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Schedule of components of income tax expense | For the Three Months ended For the Nine Months ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Deferred income tax expenses — 4,539 — 4,550 Total income tax expenses $ — $ 4,539 $ — $ 4,550 | Income taxes in the PRC are consist of: For the Years ended March 31, 2022 2021 Current income tax expenses $ 4,566 $ 8,332 Deferred income tax expenses — — Total income tax expenses $ 4,566 $ 8,332 |
Schedule of reconciliation of statutory tax rate to effective tax rate | Below is a reconciliation of the statutory tax rate to the effective tax rate: For the Years Ended March 31, 2022 2021 U.S. Statutory tax rate 21.0 % 21.0 % Differential of PRC statutory tax rate 4.0 % 4.0 % Permanent difference of write-off of receivables from guarantee of loans (0.5) % (2.4) % Permanent difference of US (income) expenses not (taxable) deductible in PRC 17.8 % (3.7) % Valuation allowance on deferred income tax asset (43.6) % (17.2) % Others 1.2 % (1.8) % Effective tax rate (0.1) % (0.1) % | |
Continuing Operations [Member] | ||
Schedule of tax effects of temporary differences | December 31, March 31, 2022 2022 (Unaudited) Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,732,507 $ 2,315,793 Net operating loss carryforwards in the U.S. 1,508,215 1,234,789 Allowance for doubtful account 131,775 29,129 Less: valuation allowance (4,372,497) (3,579,711) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 42,746 $ 46,386 Deferred tax liabilities, net $ 42,746 $ 46,386 | The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: March 31, March 31, 2022 2021 Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,315,793 $ 415,533 Net operating loss carryforwards in the U.S. 1,234,789 754,502 Allowance for doubtful account 29,129 1,245 Less: valuation allowance (3,579,711) (1,171,280) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 46,386 $ 45,146 Deferred tax liabilities, net $ 46,386 $ 45,146 |
Discontinued Operations [Member] | ||
Schedule of tax effects of temporary differences | December 31, 2022 March 31, 2022 (Unaudited) Net operating loss carry forwards in the PRC $ 2,595,919 $ 2,595,919 Less: valuation allowance (2,595,919) (2,595,919) Total $ — $ — | The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: March 31, 2022 March 31, 2021 Net operating loss carryforwards in the PRC $ 2,595,919 $ 3,802,496 Allowance for doubtful accounts — 20,190 Less: valuation allowance (2,595,919) (3,822,686) $ — $ — |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Schedule of amounts payable to stockholders, related parties and affiliates | December 31, March 31, 2022 2022 (Unaudited) Jun Wang (Stockholder of the Company)* $ 17,360 $ 18,886 Total due to a stockholder 17,360 18,886 Total due to a stockholder – discontinued operations (17,360) (18,886) Total due to a stockholder – continuing operations $ — $ — December 31, March 31, 2022 2022 (Unaudited) Loan payable to a related party (i) $ 114,425 $ 9,897 Others (ii) 2,812 1,785 Total due to related parties and affiliates $ 117,237 $ 11,682 (i) As of December 31, 2022 and March 31, 2022, the balances represented borrowings from Xi Wen, the CEO of the Company, of which, $114,425 and $9,897 are unsecured, interest free and due on demand, respectively. (ii) As of December 31, 2022 and March 31, 2022, the balances of $2,812 and $1,785 , respectively, represented payables to Jinkailong, the Company’s equity investee company, for operational purposes. December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 27,519 $ 446,372 Lease II (ii) 112,268 69,534 Total Operating lease right-of-use assets - related parties $ 139,787 $ 515,906 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 91,732 $ 246,516 Lease II (ii) 71,826 84,265 Total Operating lease liabilities, current - related parties $ 163,558 $ 330,781 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ — $ 211,953 Lease II (ii) 52,205 14,943 Total Operating lease liabilities, non-current - related parties $ 52,205 $ 226,896 (i) The Company entered into two office lease agreements with Hong Li, supervisor of Sichuan Senmiao, which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were updated with a leasing term from April 1, 2020 to March 31, 2023. On March 1, 2021, the Company entered into an additional office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. In October 2022, the Company terminated the leases signed on March 1, 2021 and April 1, 2021 as mentioned above. (ii) In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed on June 2022 which extended the original lease to May 2025. | Due to a stockholder comprised of amounts payable to a stockholder named below and are unsecured, interest free and due on demand. March 31, March 31, 2022 2021 Jun Wang $ 18,886 $ 48,795 Total due to a stockholder 18,886 48,795 Total due to a stockholder – discontinued operations (18,886) (48,795) Total due to a stockholder – continuing operations $ — $ — 3) Due to related parties and affiliates March 31, March 31, 2022 2021 Loan payable to related parties (i) $ 9,897 $ 182,281 Others (ii) 1,785 170,546 Total due to related parties and affiliates 11,682 352,827 Total due to related parties and affiliates – discontinued operations — (269,918) Total due to related parties and affiliates – continuing operations $ 11,682 $ 82,909 (i) As of March 31, 2022 and March 31, 2021, the balances represented borrowings from a related party, of which, $ 9,897 and $ 78,708 are unsecured, interest free and due on demand, respectively, from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 103,574 represented borrowings from two related parties, which are unsecured, interest free and due on demand, respectively, from the Company’s discontinued operations. (ii) As of March 31, 2022 and March 31, 2021, the balances of $1,785 and $4,201 , respectively, represented payables to a related party for operational purposes from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 166,345 represented payables to four other related parties for operational purposes from the Company’s continuing operations. These balances are interest free and due on demand. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
LEASES | ||
Schedule of operating and finance lease expenses | For the Three Months Ended For the Nine Months Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Classification (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost Automobile lease costs Cost of revenues $ 564,646 501,847 1,622,601 1,205,011 Lease expenses Selling, general and administrative 88,493 165,263 313,753 434,733 Finance lease cost Amortization of leased asset Cost of revenue 73,991 834,807 203,044 2,419,695 Amortization of leased asset General and administrative 62,255 76,187 196,890 522,605 Interest on lease liabilities Interest expenses on finance leases 7,602 97,919 15,903 313,766 Total lease expenses $ 796,987 1,676,023 2,352,191 4,895,810 Total Lease expenses – discontinued operations — 989,573 — 3,240,386 Total Lease expenses- continuing operations $ 796,987 686,450 2,352,191 1,655,424 | For the Years Ended Classification March 31, 2022 March 31, 2021 Operating lease cost Automobile lease costs Cost of revenues 1,749,959 42,306 Lease expenses Selling, general and administrative $ 585,719 $ 396,276 Finance lease cost Amortization of leased asset Cost of revenues 2,844,167 2,441,873 Amortization of leased asset General and administrative 974,422 1,656,336 Interest on lease liabilities Interest expenses on finance leases 333,210 733,202 Total lease expenses 6,487,477 5,269,993 Total lease expenses – discontinued operations 4,150,972 4,748,180 Total Lease expenses- continuing operations $ 2,336,505 $ 521,813 |
Schedule of minimum lease payments in future periods | *Operating lease Finance lease payments payments Total Twelve months ending December 31, 2023 $ 265,601 278,610 544,211 Twelve months ending December 31, 2024 95,690 269,675 365,365 Twelve months ending December 31, 2025 63,120 202,256 265,376 Twelve months ending December 31, 2026 14,982 — 14,982 Total lease payments 439,393 750,541 1,189,934 Less: discount (22,205) (58,657) (80,862) Present value of lease liabilities $ 417,188 691,884 1,109,072 *As of December 31, 2022, the outstanding balance of operating lease payments due to related parties was $215,763. | *Operating lease Finance lease payments payments Total Twelve months ending March 31, 2023 $ 386,942 $ 317,499 $ 704,441 Twelve months ending March 31, 2024 194,311 1,403 195,714 Twelve months ending March 31, 2025 64,268 — 64,268 Twelve months ending March 31, 2026 52,585 — 52,585 Total lease payments 698,106 318,902 1,017,008 Less: discount (42,342) (12,969) (55,311) Present value of lease liabilities $ 655,764 $ 305,933 $ 961,697 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SEGMENT INFORMATION | ||
Summary of each segment's revenue, loss from operations, loss before income taxes and net loss | For the Three Months ended December 31, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 930,625 $ 810,295 $ — $ 1,740,920 Interest income $ 467 $ 64 $ 13 $ 544 Depreciation and amortization $ 429,419 $ 12,128 $ 21,638 $ 463,185 Loss from operations $ (999,958) $ (69,672) $ (259,746) $ (1,329,376) Loss before income taxes $ (700,414) $ (56,667) $ (229,188) $ (986,269) Net loss $ (700,414) $ (56,667) $ (229,188) $ (986,269) Capital expenditure $ 1,238,504 $ — $ — $ 1,238,504 For the Nine Months ended December 31, 2022 Online ride- Automobile hailing Transaction and platform Related Services Services Unallocated Consolidated Revenues $ 3,353,400 $ 2,970,518 $ — $ 6,323,918 Interest income $ 1,292 $ 168 $ 57 $ 1,517 Depreciation and amortization $ 1,470,335 $ 47,594 $ 63,298 $ 1,581,227 Loss from operations $ (2,854,231) $ (262,097) $ (1,238,849) $ (4,355,177) Income (loss) before income taxes $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Net income (loss) $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Capital expenditure $ 1,240,404 $ — $ — $ 1,240,404 For the three months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 2,525,893 $ 1,017,156 $ — $ 3,543,049 $ 1,882,930 $ 1,660,119 Interest income $ 618 $ 72 $ 81 $ 771 $ 288 $ 483 Interest expense $ 16,451 $ 24 $ — $ 16,475 $ 16,475 $ — Depreciation and amortization $ 1,425,441 $ 8,058 $ 3,179 $ 1,436,678 $ 886,651 $ 550,027 Loss from operations $ (1,289,884) $ (629,177) $ (979,941) $ (2,899,002) $ (390,710) $ (2,508,292) Income (loss) before income taxes $ (1,069,871) $ (792,769) $ 1,735,058 $ (127,582) $ (418,355) $ 290,773 Net income (loss) $ (1,074,410) $ (792,769) $ 1,735,058 $ (132,121) $ (418,355) $ 286,234 Capital expenditure $ 1,321,226 $ — $ — $ 1,321,226 $ — $ 1,321,226 For the nine months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 6,631,579 $ 1,617,454 $ — $ 8,249,033 $ 5,096,441 $ 3,152,592 Interest income $ 1,198 $ 785 $ 389 $ 2,372 $ 514 $ 1,858 Interest expense $ 37,587 $ 6,536 $ — $ 44,123 $ 38,251 $ 5,872 Depreciation and amortization $ 4,269,755 $ 23,135 $ 9,580 $ 4,302,470 $ 2,857,864 $ 1,444,606 Loss from operations $ (3,606,376) $ (6,358,532) $ (1,813,645) $ (11,778,553) $ (2,182,402) $ (9,596,151) Income (loss) before income taxes $ (3,520,754) $ (6,649,325) $ 2,549,947 $ (7,620,132) $ (2,418,757) $ (5,201,375) Net income (loss) $ (3,525,304) $ (6,649,325) $ 2,549,947 $ (7,624,682) $ (2,418,757) $ (5,205,925) Capital expenditure $ 3,484,051 $ — $ — $ 3,484,051 $ — $ 3,484,051 | For the year ended March 31, 2022 Automobile Transaction and Online ride- related hailing platform Discontinued Continuing service services Unallocated Total operations operations Revenues $ 9,077,761 $ 2,665,457 $ — $ 11,743,218 $ 6,830,116 $ 4,913,102 Loss from operations $ (3,957,831) $ (6,962,113) $ (3,179,759) $ (14,099,703) $ (2,537,715) $ (11,561,988) loss before income taxes $ (4,682,007) $ (7,438,693) $ 3,771,912 $ (8,348,788) $ (2,747,209) $ (5,601,579) Net income (loss) $ (4,686,573) $ (7,438,693) $ 3,771,912 $ (8,353,354) $ (2,747,209) $ (5,606,145) For the year ended March 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Discontinued Continuing Related services services P2P Business Unallocated Total operations operations Revenues $ 5,257,280 $ 903,254 $ 7,153 $ — $ 6,167,687 $ 3,978,847 $ 2,188,840 Loss from operations $ (6,126,494) $ (1,894,971) $ (81,285) $ (2,163,082) $ (10,265,832) $ (4,254,403) $ (6,011,429) loss before income taxes $ (7,009,570) $ (1,703,551) $ (61,976) $ (3,872,915) $ (12,648,012) $ (5,180,919) $ (7,467,093) Net income (loss) $ (7,024,200) $ (1,703,551) $ (61,976) $ (3,872,912) $ (12,662,639) $ (5,187,214) $ (7,475,425) |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
Mar. 23, 2022 USD ($) | Nov. 09, 2021 shares | Oct. 22, 2021 USD ($) $ / shares | Oct. 22, 2021 D $ / shares | Oct. 22, 2021 item $ / shares | Apr. 21, 2019 shares | Apr. 20, 2019 shares | Aug. 31, 2021 | Feb. 29, 2020 | Aug. 31, 2018 | Dec. 31, 2022 USD ($) segment subsidiary $ / shares | Mar. 31, 2022 USD ($) subsidiary segment $ / shares | Dec. 31, 2022 CNY (¥) subsidiary | Mar. 31, 2022 CNY (¥) subsidiary | Apr. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) $ / shares | Feb. 05, 2021 USD ($) | Feb. 05, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Oct. 23, 2020 USD ($) | Oct. 23, 2020 CNY (¥) | Sep. 11, 2020 USD ($) | Sep. 11, 2020 CNY (¥) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Company incorporated in the State | Nevada | Nevada | ||||||||||||||||||||||
Date of entity incorporation | Jun. 08, 2017 | Jun. 08, 2017 | ||||||||||||||||||||||
Number of operating segments | segment | 2 | 2 | ||||||||||||||||||||||
Accumulated loss | $ (36,323,523) | $ (34,601,545) | $ (34,064,921) | |||||||||||||||||||||
Shareholders' deficiency | $ 5,688,979 | 8,092,664 | 5,856,713 | |||||||||||||||||||||
Amount due from related parties | $ 7,298,208 | $ 24,311 | ||||||||||||||||||||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||
Shares issued (in shares) | shares | 178,136 | 1,781,360 | ||||||||||||||||||||||
Jinkailong | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Outstanding balance, net of allowance | $ 5,992,152 | |||||||||||||||||||||||
Amount due from related parties | $ 5,351,735 | |||||||||||||||||||||||
Jinkailong | Discontinued operations | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Accumulated loss | $ 15,227,359 | |||||||||||||||||||||||
Related party receivable as a result of deconsolidation | 7,298,208 | |||||||||||||||||||||||
Related party receivable noncurrent as a result of deconsolidation | 6,635,746 | |||||||||||||||||||||||
Due to related party excluded upon deconsolidation | 31,263 | |||||||||||||||||||||||
Sichuan Senmiao's | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Accumulated loss | 18,000,000 | |||||||||||||||||||||||
Shareholders' deficiency | $ 7,600,000 | |||||||||||||||||||||||
Total purchase price | $ 0 | |||||||||||||||||||||||
Senmiao Consulting | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 94.50% | |||||||||||||||||||||||
Corenel | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Registered capital | $ 1,600,000 | ¥ 10,000,000 | ||||||||||||||||||||||
Chengdu Xichuang Technology Service Co., Ltd. | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Registered capital | $ 32,000 | ¥ 200,000 | ||||||||||||||||||||||
Voting Agreement with Jinkailongs other shareholders | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Business agreement term | 18 years | 20 years | ||||||||||||||||||||||
Voting Agreement with Jinkailongs other shareholders | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 65% | 35% | 35% | 35% | 35% | |||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Investment in subsidiary | $ 5,700,000 | ¥ 36,840,000 | ||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 27.74% | 27.74% | ||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Sichuan Senmiao's | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Investment in subsidiary | ¥ | ¥ 3,160,000 | |||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Sichuan Senmiao's | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 51% | 51% | ||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Senmiao Consulting | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Investment in subsidiary | $ 5,180,000 | ¥ 36,840,000 | ||||||||||||||||||||||
Amount the company had to remit on the Investment agreement | $ 5,300,000 | ¥ 36,600,000 | ||||||||||||||||||||||
Increased in total registered capital | $ 7,140,000 | ¥ 50,800,000 | ||||||||||||||||||||||
Capital contribution | $ 5,760,000 | ¥ 39,760,000 | ||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Senmiao Consulting | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 27.74% | 27.74% | ||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Sichuan Senmiao's | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Investment in subsidiary | $ 440,000 | |||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Share Swap Agreement | Senmiao Consulting | Common stock | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Total purchase price | $ 3,500,000 | |||||||||||||||||||||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||||
Number of trading days reported | 10 | 10 | ||||||||||||||||||||||
Shares issued (in shares) | shares | 533,167 | |||||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | Share Swap Agreement | Senmiao Consulting | Common stock | Pre reverse split | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Shares issued (in shares) | shares | 5,331,667 | |||||||||||||||||||||||
Jinkailong | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 35% | 35% | 35% | 35% | ||||||||||||||||||||
Chengdu Corenel Technology Co., Ltd. | Jiekai | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Registered capital | $ 80,000 | ¥ 500,000 | ||||||||||||||||||||||
Chengdu Corenel Technology Co., Ltd. | Jiekai | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 51% | 51% | ||||||||||||||||||||||
Sichuan Senmiao's | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Total purchase price | $ 0 | |||||||||||||||||||||||
Sichuan Senmiao's | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 94.50% | |||||||||||||||||||||||
Sichuan Senmiao's | Hunan Xixingtianxia Technology Co., Ltd ("XXTX") | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Capital contribution | $ 5,810,000 | ¥ 36,860,000 | ||||||||||||||||||||||
Number of wholly owned subsidiaries | subsidiary | 10 | 8 | 10 | 8 | ||||||||||||||||||||
Number of wholly owned subsidiaries that has operations | subsidiary | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Hunan Ruixi | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 70% | 70% | ||||||||||||||||||||||
Hunan Ruixi | Equity Transfer Agreement with Another Shareholder of Xichuang | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percent of shares transferred as free | 30% | |||||||||||||||||||||||
Senmiao HK | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Registered capital | $ 10,000 | |||||||||||||||||||||||
Senmiao HK | Nonconsolidated investees, other | ||||||||||||||||||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||||||||||||||
Percentage of equity interest ownership | 99.99% |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Gain on deconsolidation (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2021 | |
Gain on deconsolidation | |||
Carrying amount of net deficit of Jinkailong as of March 31, 2022 | $ (34,601,545) | $ (36,323,523) | $ (34,064,921) |
Jinkailong | Discontinued operations | |||
Gain on deconsolidation | |||
Carrying amount of net deficit of Jinkailong as of March 31, 2022 | 15,227,359 | ||
Carrying amount of non-controlling interest | (3,605,156) | ||
Cumulative currency translation adjustment removal | (670,658) | ||
Net gain on deconsolidation of Jinkailong | $ 10,951,545 |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Consolidated financial statements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed consolidated financial statements | ||||||
Loss from operations from continuing operations | $ (986,269) | $ 286,234 | $ (1,922,153) | $ (5,205,925) | $ (5,606,145) | $ (7,475,425) |
Loss from operations from discontinued operations | 0 | (2,418,757) | 8,227,892 | (5,187,214) | ||
Net loss attributable to stockholders | $ (971,341) | 155,459 | $ (1,721,978) | (5,673,230) | (536,624) | (10,360,058) |
Former VIE | ||||||
Condensed consolidated financial statements | ||||||
Net revenue from continuing operations | 152 | 23,380 | 32,817 | |||
Net revenue from discontinued operations | 1,882,930 | 5,096,441 | 6,830,116 | 3,978,847 | ||
Loss from operations from continuing operations | (57,616) | (107,802) | (179,068) | (532,455) | ||
Loss from operations from discontinued operations | (390,710) | (2,182,402) | (2,537,715) | (4,254,403) | ||
Net loss from continuing operations attributable to stockholders | (57,141) | (105,760) | (175,283) | (530,983) | ||
Net loss from discontinued operations attributable to stockholders | (309,583) | (1,789,880) | (2,032,934) | (3,722,648) | ||
Net loss attributable to stockholders | $ (366,724) | $ (1,895,640) | $ (2,208,218) | $ (4,253,630) |
GOING CONCERN (Details)
GOING CONCERN (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Feb. 22, 2021 USD ($) item | Dec. 31, 2022 USD ($) item | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) | Sep. 23, 2022 USD ($) item | |
GOING CONCERN | ||||||||||||
Net loss | $ 986,269 | $ 1,179,804 | $ (243,920) | $ 132,121 | $ 121,925 | $ 7,370,636 | $ 1,922,153 | $ 7,624,682 | $ (2,621,747) | $ 12,662,639 | ||
Accumulated deficit | 36,323,523 | 36,323,523 | 34,601,545 | $ 34,064,921 | ||||||||
Working capital | 800,000 | 800,000 | 600,000 | |||||||||
Purchase commitments | $ 3,200,000 | $ 2,400,000 | $ 2,400,000 | $ 1,700,000 | $ 1,500,000 | |||||||
Total number of automobiles | item | 200 | 300 | 300 | 200 | 100 | |||||||
Total amount of automobiles | $ 4,700,000 | $ 4,700,000 | $ 3,400,000 | |||||||||
Number of automobiles is required to purchase in cash | item | 100 | 100 | 100 | |||||||||
Amount of automobiles is required to purchase in cash | $ 1,600,000 | 1,600,000 | $ 1,600,000 | $ 1,700,000 | ||||||||
Amount of automobiles is required to purchase commitment | $ 1,600,000 | 1,600,000 | 1,600,000 | 1,700,000 | ||||||||
Maximum contingent liabilities | 46,641 | 46,641 | $ 800,000 | |||||||||
Purchase deposit | $ 700,000 | 700,000 | $ 700,000 | |||||||||
Remittance in installments | $ 800,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translation (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Balance sheet items, except for equity accounts | 6.8972 | 6.8972 | 6.3400 | 6.5527 | ||
Items in the statements of operations and comprehensive loss | 7.1120 | 6.3937 | ||||
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.8547 | 6.4408 | 6.4178 | 6.7960 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value on a recurring basis (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Derivative liabilities | $ 572,021 | $ 2,215,204 | $ 1,278,926 | $ 342,530 |
Carrying Value | Fair Value Measurements | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Derivative liabilities | 572,021 | 2,215,204 | 1,278,926 | |
Level 1 | Fair Value | Fair Value Measurements | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Derivative liabilities | 0 | 0 | 0 | |
Level 2 | Fair Value | Fair Value Measurements | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Derivative liabilities | 0 | 0 | 0 | |
Level 3 | Fair Value | Fair Value Measurements | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Derivative liabilities | $ 572,021 | $ 2,215,204 | $ 1,278,926 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of assets and liabilities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | $ 2,215,204 | $ 1,278,926 | $ 1,278,926 | $ 342,530 |
Derivative liabilities recognized at grant date | 7,933,435 | 997,193 | ||
Change in fair value of derivative liabilities | (1,641,650) | (6,951,482) | 1,710,415 | |
Fair value of warrants exercised | (45,675) | (1,769,841) | ||
Cashless exercise on November 2021 Investor warrant | (1,533) | 0 | ||
Warrant forfeited due to expiration | (1,371) | |||
Ending balance | 572,021 | 2,215,204 | 1,278,926 | |
SeriesWarrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 1,913 | 80,268 | 80,268 | 315,923 |
Change in fair value of derivative liabilities | (1,878) | (32,680) | 1,234,630 | |
Fair value of warrants exercised | (45,675) | (1,470,285) | ||
Ending balance | 35 | 1,913 | 80,268 | |
Series B Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 1,371 | |||
Warrant forfeited due to expiration | (1,371) | |||
Private Placement Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 10,525 | 163,572 | 163,572 | 25,236 |
Change in fair value of derivative liabilities | (10,342) | (153,047) | 138,336 | |
Ending balance | 183 | 10,525 | 163,572 | |
August 2020 | Underwritten Public Offering Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 44,581 | 397,525 | 397,525 | |
Derivative liabilities recognized at grant date | 241,919 | |||
Change in fair value of derivative liabilities | (34,526) | (352,944) | 455,162 | |
Fair value of warrants exercised | (299,556) | |||
Ending balance | 10,055 | 44,581 | 397,525 | |
February 2021 | Registered Direct Offering Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 65,543 | $ 637,561 | 637,561 | |
Derivative liabilities recognized at grant date | 755,274 | |||
Change in fair value of derivative liabilities | (51,581) | (572,018) | (117,713) | |
Ending balance | 13,962 | 65,543 | $ 637,561 | |
May 2021 | Registered Direct Offering Investors Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 778,488 | |||
Derivative liabilities recognized at grant date | 3,313,864 | |||
Change in fair value of derivative liabilities | (589,804) | (2,535,376) | ||
Ending balance | 188,684 | 778,488 | ||
May 2021 | Registered Direct Offering Placement Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 58,387 | |||
Derivative liabilities recognized at grant date | 248,541 | |||
Change in fair value of derivative liabilities | (44,236) | (190,154) | ||
Ending balance | 14,151 | 58,387 | ||
November 2021 | Private Placement Investors Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 1,165,465 | |||
Derivative liabilities recognized at grant date | 4,060,857 | |||
Change in fair value of derivative liabilities | (843,900) | (2,895,392) | ||
Cashless exercise on November 2021 Investor warrant | (1,533) | |||
Ending balance | 320,032 | 1,165,465 | ||
November 2021 | Private Placement Placement Warrants | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Beginning balance | 90,302 | |||
Derivative liabilities recognized at grant date | 310,173 | |||
Change in fair value of derivative liabilities | (65,383) | (219,871) | ||
Ending balance | $ 24,919 | $ 90,302 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value of warrants (Details) | Dec. 31, 2022 Y $ / shares shares | Mar. 31, 2022 Y $ / shares shares | Nov. 10, 2021 $ / shares Y shares | May 13, 2021 $ / shares Y shares | Mar. 31, 2021 Y $ / shares shares | Feb. 10, 2021 Y $ / shares shares | Aug. 13, 2020 shares | Aug. 04, 2020 $ / shares Y shares | Jun. 21, 2020 shares | Jul. 21, 2019 shares | Jun. 21, 2019 shares | Jun. 20, 2019 Y $ / shares shares |
SeriesWarrants | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 133,602 | 133,603 | ||||||||||
SeriesWarrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 2,590 | 2,590 | 6,993 | 133,602 | ||||||||
Series B Warrants | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 111,632 | 111,632 | 111,632 | |||||||||
Series B Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 111,632 | |||||||||||
Placement Agent Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 14,251 | 14,251 | 14,251 | 14,251 | ||||||||
Placement Agent Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 38,044 | 38,044 | 38,044 | 38,044 | ||||||||
Placement Agent Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 41,490 | 41,490 | 41,490 | |||||||||
Placement Agent Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 55,148 | 55,148 | 55,148 | |||||||||
Placement Agent Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 41,490 | |||||||||||
Placement Agent Warrants | Maximum | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 14,251 | |||||||||||
Underwriter Warrants | August 4, 2020 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 31,808 | 31,808 | 31,808 | 56,800 | 56,800 | |||||||
ROFR Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 15,218 | 15,218 | 15,218 | 15,218 | ||||||||
Investor Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 553,192 | 553,192 | 553,192 | |||||||||
Investor Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 5,310,763 | 5,335,763 | 5,335,763 | |||||||||
Investor Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Class of warrant number of securities called by warrants | shares | 553,192 | |||||||||||
Exercise price | SeriesWarrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 5 | 5 | 5 | 37.20 | ||||||||
Exercise price | Series B Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 37.20 | |||||||||||
Exercise price | Placement Agent Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 5 | 5 | 5 | 33.80 | ||||||||
Exercise price | Placement Agent Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 13.80 | 13.80 | 13.80 | 13.80 | ||||||||
Exercise price | Placement Agent Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 10.50 | 10.50 | 10.50 | |||||||||
Exercise price | Placement Agent Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 6.80 | 6.80 | 6.80 | |||||||||
Exercise price | Placement Agent Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 10.50 | |||||||||||
Exercise price | Underwriter Warrants | August 4, 2020 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 6.30 | 6.30 | 6.30 | 6.30 | ||||||||
Exercise price | ROFR Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 17.30 | 17.30 | 17.30 | 17.30 | ||||||||
Exercise price | Investor Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 10.50 | 10.50 | 10.50 | |||||||||
Exercise price | Investor Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 1.13 | 1.13 | 1.13 | |||||||||
Exercise price | Investor Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 10.50 | |||||||||||
Stock price | SeriesWarrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 14 | 28 | ||||||||
Stock price | Series B Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 28 | |||||||||||
Stock price | Placement Agent Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 14 | 28 | ||||||||
Stock price | Placement Agent Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 14 | 16.30 | ||||||||
Stock price | Placement Agent Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 7.20 | |||||||||
Stock price | Placement Agent Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 6.70 | |||||||||
Stock price | Placement Agent Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 2.30 | |||||||||||
Stock price | Underwriter Warrants | August 4, 2020 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 14 | 5.10 | ||||||||
Stock price | ROFR Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 14 | 16.30 | ||||||||
Stock price | Investor Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 7.20 | |||||||||
Stock price | Investor Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 0.09 | 2.30 | 6.70 | |||||||||
Stock price | Investor Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 2.30 | |||||||||||
Expected term | SeriesWarrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 0.47 | 1.22 | 2.22 | 4 | ||||||||
Expected term | Series B Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 1 | |||||||||||
Expected term | Placement Agent Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 0.47 | 1.22 | 2.22 | 4 | ||||||||
Expected term | Placement Agent Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 3.12 | 3.87 | 4.87 | 5 | ||||||||
Expected term | Placement Agent Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 3.37 | 4.12 | 5 | |||||||||
Expected term | Placement Agent Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 3.86 | 4.62 | 5 | |||||||||
Expected term | Placement Agent Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 4.12 | |||||||||||
Expected term | Underwriter Warrants | August 4, 2020 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 2.59 | 3.35 | 4.35 | 5 | ||||||||
Expected term | ROFR Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 3.12 | 3.87 | 4.87 | 5 | ||||||||
Expected term | Investor Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 3.37 | 4.12 | 5 | |||||||||
Expected term | Investor Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 3.86 | 4.62 | 5 | |||||||||
Expected term | Investor Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | Y | 4.12 | |||||||||||
Risk free interest rate | SeriesWarrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 2.22 | 1.77 | 0.20 | 1.77 | ||||||||
Risk free interest rate | Series B Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 1.91 | |||||||||||
Risk free interest rate | Placement Agent Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 2.22 | 1.77 | 0.20 | 1.77 | ||||||||
Risk free interest rate | Placement Agent Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.21 | 2.44 | 0.88 | 0.46 | ||||||||
Risk free interest rate | Placement Agent Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.18 | 2.43 | 0.84 | |||||||||
Risk free interest rate | Placement Agent Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.12 | 2.43 | 1.23 | |||||||||
Risk free interest rate | Placement Agent Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 2.43 | |||||||||||
Risk free interest rate | Underwriter Warrants | August 4, 2020 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.35 | 2.44 | 0.73 | 0.19 | ||||||||
Risk free interest rate | ROFR Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.21 | 2.44 | 0.88 | 0.46 | ||||||||
Risk free interest rate | Investor Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.18 | 2.43 | 0.84 | |||||||||
Risk free interest rate | Investor Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 4.12 | 2.43 | 1.23 | |||||||||
Risk free interest rate | Investor Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 2.43 | |||||||||||
Expected volatility | SeriesWarrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 132 | 86 | ||||||||
Expected volatility | Series B Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 91 | |||||||||||
Expected volatility | Placement Agent Warrants | June 20, 2019 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 132 | 86 | ||||||||
Expected volatility | Placement Agent Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 132 | 132 | ||||||||
Expected volatility | Placement Agent Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 131 | |||||||||
Expected volatility | Placement Agent Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 126 | |||||||||
Expected volatility | Placement Agent Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 123 | |||||||||||
Expected volatility | Underwriter Warrants | August 4, 2020 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 132 | 129 | ||||||||
Expected volatility | ROFR Warrants | February 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 132 | 132 | ||||||||
Expected volatility | Investor Warrants | May 13, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 131 | |||||||||
Expected volatility | Investor Warrants | November 10, 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 122 | 123 | 126 | |||||||||
Expected volatility | Investor Warrants | May 2021 | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Warrants measurement input | 123 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finance lease receivables, net (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Allowance for doubtful on finance lease receivables | $ 0 | $ 0 | $ 0 |
Finance lease receivables | |||
Minimum lease payments receivable | 288,026 | 511,030 | 1,343,662 |
Less: Unearned interest | 67,484 | 103,786 | 328,585 |
Financing lease receivables, net | 220,542 | 407,244 | 1,015,077 |
Finance lease receivables, net, current portion | 170,337 | 314,264 | 541,605 |
Finance lease receivables, net, noncurrent portion | 50,205 | 92,980 | $ 473,472 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |||
Twelve months ending June 30, 2023 | 345,425 | ||
Twelve months ending March 31, 2024 | 150,633 | ||
Twelve months ending March 31, 2025 | 14,972 | ||
Future scheduled minimum lease payments for investments | |||
Twelve months ending December 31, 2023 | 196,715 | ||
Twelve months ending December 31, 2024 | 66,544 | ||
Twelve months ending December 31, 2025 | 24,767 | ||
Total | $ 288,026 | $ 511,030 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Continuing operations | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Impairment of property and equipment | $ 0 | $ 0 | |
Discontinued operations | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Impairment of property and equipment | $ 32,479 | $ 10,459 | |
Computer equipment | Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 2 years | 2 years | |
Computer equipment | Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 5 years | 5 years | |
Office equipment, fixtures and furniture | Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 3 years | ||
Office equipment, fixtures and furniture | Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 5 years | ||
Office equipment | Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 3 years | ||
Office equipment | Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 5 years | ||
Automobiles | Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 3 years | 3 years | |
Automobiles | Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Useful life | 5 years | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets, net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Impairment of intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Software | Minimum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Useful life | 5 years | 5 years | ||||
Software | Maximum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Useful life | 10 years | 10 years | ||||
Online ride- hailing platform Services | Minimum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Useful life | 2 years | 2 years | ||||
Online ride- hailing platform Services | Maximum | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Useful life | 10 years | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregated information of revenues (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues by business lines | ||||||
Total Revenues from Operations | $ 1,710,172 | $ 1,660,119 | $ 6,000,597 | $ 3,152,592 | $ 4,913,102 | $ 2,188,840 |
Total revenues | 1,740,920 | 3,543,049 | 6,323,918 | 8,249,033 | 11,743,218 | 6,167,687 |
Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 930,625 | 642,963 | 3,353,400 | 1,535,138 | 2,247,645 | 1,285,586 |
Total Revenues from Operations | 1,740,920 | 1,660,119 | 6,323,918 | 3,152,592 | 4,913,102 | 2,188,840 |
Total revenues | 1,660,119 | 3,152,592 | 4,913,102 | 2,188,840 | ||
Continuing operations | Online ride- hailing platform Services | ||||||
Revenues by business lines | ||||||
Total revenues from Online Lending Services | 810,295 | 1,017,156 | 2,970,518 | 1,617,454 | 2,665,457 | 903,254 |
Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 1,882,930 | 5,096,441 | 6,830,116 | 3,971,694 | ||
Total revenues from Online Lending Services | 7,153 | |||||
Total Revenues from Operations | 6,830,116 | 3,978,847 | ||||
Total revenues | 1,882,930 | 5,096,441 | 6,830,116 | 3,978,847 | ||
Operating lease revenues from automobile rentals | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 781,210 | 510,636 | 2,570,959 | 1,165,625 | 1,722,480 | 224,590 |
Operating lease revenues from automobile rentals | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 1,436,886 | 4,274,900 | 5,452,483 | 3,207,781 | ||
Service fees from NEVs leasing | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 49,002 | 43,015 | 291,675 | 87,112 | 126,227 | |
Service fees from NEVs leasing | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 242 | 58,185 | 232,295 | |||
Revenues from sales of automobiles | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 225,900 | 26,019 | 487,947 | |||
Service fees from automobile purchase services | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 21,192 | 1,468 | 188,822 | |||
Financing revenues | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 8,606 | 22,072 | 30,965 | 86,454 | 101,828 | 184,115 |
Financing revenues | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 3,677 | 15,284 | 15,855 | 43,744 | ||
Other Service fees | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 82,892 | 55,624 | 181,050 | 140,960 | 196,069 | 120,547 |
Other Service fees | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 129,261 | 377,410 | 512,045 | 479,459 | ||
Service fees from management and guarantee services | Continuing operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | $ 8,915 | 11,616 | $ 31,659 | 54,987 | 73,554 | 79,565 |
Service fees from management and guarantee services | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 38,221 | 96,019 | 217,838 | 206,248 | ||
Commissions from online ride-hailing platforms | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | $ 274,643 | $ 274,643 | $ 399,600 | 32,797 | ||
Facilitation fees from automobile transactions | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 1,665 | |||||
Transaction fees | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Online Lending Services | 3,488 | |||||
Service fees | Discontinued operations | ||||||
Revenues by business lines | ||||||
Total revenues from Online Lending Services | $ 3,665 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 10, 2021 USD ($) $ / shares shares | Nov. 07, 2021 USD ($) $ / shares shares | May 13, 2021 USD ($) $ / shares shares | Feb. 10, 2021 $ / shares shares | Aug. 13, 2020 shares | Aug. 06, 2020 $ / shares shares | Aug. 04, 2020 shares | Feb. 08, 2020 $ / shares shares | Jul. 21, 2019 USD ($) | Jun. 21, 2019 shares | Apr. 21, 2019 shares | Apr. 20, 2019 shares | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) segment shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Mar. 31, 2022 CNY (¥) shares | Nov. 30, 2021 shares | Mar. 31, 2020 USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 553,192 | 178,137 | ||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 6,000,000 | |||||||||||||||||||||
Number of operating segments | segment | 2 | 2 | ||||||||||||||||||||
Number of reportable segment | segment | 2 | 2 | 2 | |||||||||||||||||||
Allowance for doubtful accounts | $ | $ 112,905 | $ 78,167 | $ 379,689 | |||||||||||||||||||
Impairment of certain vehicle held for sale | $ | $ 0 | $ 3,085 | ||||||||||||||||||||
Contract receivable for automobile transaction and related services | $ | 26,573 | 26,573 | 136,418 | |||||||||||||||||||
Contract receivable for automobile transaction and related services, expected to be due within twelve months | $ | 24,558 | 24,558 | 91,448 | |||||||||||||||||||
Contract receivable for automobile transaction and related services, expected to be due in second year | $ | $ 2,015 | $ 2,015 | $ 44,971 | |||||||||||||||||||
Percentage of customers to which the company provides them with management and guarantee services | 95% | 95% | ||||||||||||||||||||
Company's pricing interest rate per annum | 6% | 6% | ||||||||||||||||||||
Percentage of income taxes benefit | 50% | 50% | 50% | 50% | 50% | |||||||||||||||||
Percentage of remaining economic life of underlying asset | 75% | 75% | ||||||||||||||||||||
Percentage of economic life of underlying asset | 25% | 25% | ||||||||||||||||||||
Percentage of equal or exceeds lease payment | 90% | 90% | ||||||||||||||||||||
Impairment loss on goodwill | $ | $ 0 | $ 0 | $ 0 | $ 139,580 | $ 139,930 | 0 | ||||||||||||||||
Cash deposit | $ | $ 91,000 | $ 117,000 | $ 2,073,000 | |||||||||||||||||||
Foreign currency exchange rate | 6.90 | 6.90 | 6.34 | 6.55 | 6.90 | 6.34 | ||||||||||||||||
impairment loss | $ | $ 0 | 1,964 | $ 0 | 1,964 | ||||||||||||||||||
Number of shares issued upon conversion | 1,496,125 | |||||||||||||||||||||
Shares issued (in shares) | 178,136 | 1,781,360 | ||||||||||||||||||||
Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 5,531,916 | 1,781,361 | ||||||||||||||||||||
Investment in Jinkailong | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Equity interest | 35% | 35% | 35% | 35% | 35% | |||||||||||||||||
Investment in subsidiary | $ | $ 0 | $ 0 | $ 0 | |||||||||||||||||||
Series A Convertible Preferred Stock | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of dilutive securities convertible into common stock | 735,295 | |||||||||||||||||||||
Number of shares issued upon conversion | 870,706 | 870,706 | 870,706 | 126,831 | ||||||||||||||||||
Series A Convertible Preferred Stock | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of dilutive securities convertible into common stock | 7,352,941 | |||||||||||||||||||||
Continuing operations | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | $ 0 | $ 0 | $ 112,905 | $ 1,739 | ||||||||||||||||||
Impairment of property and equipment | $ | 0 | 11 | 0 | 2,936 | ||||||||||||||||||
Impairment loss on finance lease ROU assets | $ | 3,044 | 10,953 | ||||||||||||||||||||
Write off accounts receivables | $ | $ 107,820 | 45,465 | 44,227 | 89,921 | ||||||||||||||||||
Discontinued operations | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Allowance for doubtful accounts | $ | 76,428 | |||||||||||||||||||||
Impairment of property and equipment | $ | $ 6,007 | 35,609 | ||||||||||||||||||||
Impairment loss on finance lease ROU assets | $ | 0 | 109,427 | ||||||||||||||||||||
Write off accounts receivables | $ | $ 11,952 | $ 16,273 | 395,463 | |||||||||||||||||||
Over-Allotment option | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Shares issued (in shares) | 180,000 | 180,000 | ||||||||||||||||||||
Over-Allotment option | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Shares issued (in shares) | 1,800,000 | 1,800,000 | ||||||||||||||||||||
Private Placement | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 56,800 | |||||||||||||||||||||
Offering price | $ / shares | $ 6.8 | |||||||||||||||||||||
Exercisable term | 5 years | |||||||||||||||||||||
Exercise price of warrants (as a percent) | 125% | |||||||||||||||||||||
Cash commission | $ | $ 375,000 | |||||||||||||||||||||
Shares issued (in shares) | 55,148 | |||||||||||||||||||||
Private Placement | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 568,000 | |||||||||||||||||||||
Offering price | $ / shares | $ 0.68 | |||||||||||||||||||||
Shares issued (in shares) | 551,471 | |||||||||||||||||||||
Offering Price [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Shares issued | 1,200,000 | |||||||||||||||||||||
Offering price | $ / shares | $ 5 | |||||||||||||||||||||
Shares issued (in shares) | 180,000 | |||||||||||||||||||||
Offering Price [Member] | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Shares issued | 12,000,000 | |||||||||||||||||||||
Offering price | $ / shares | $ 0.50 | |||||||||||||||||||||
Shares issued (in shares) | 1,800,000 | |||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 15,218 | |||||||||||||||||||||
Offering price | $ / shares | $ 17.25 | |||||||||||||||||||||
Exercisable term | 5 years | |||||||||||||||||||||
Warrant [Member] | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 152,174 | |||||||||||||||||||||
Offering price | $ / shares | $ 1.725 | |||||||||||||||||||||
Placement Agency Agreement [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 507,247 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | 38,044 | |||||||||||||||||||||
Offering price | $ / shares | $ 13.8 | $ 13.8 | ||||||||||||||||||||
Exercisable term | 5 years | |||||||||||||||||||||
Exercise price of warrants (as a percent) | 7% | |||||||||||||||||||||
Placement Agency Agreement [Member] | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 5,072,465 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | 380,435 | |||||||||||||||||||||
Offering price | $ / shares | $ 1.38 | $ 1.38 | ||||||||||||||||||||
Automobiles | Minimum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Useful life | 3 years | 3 years | ||||||||||||||||||||
Automobiles | Maximum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Useful life | 5 years | 5 years | ||||||||||||||||||||
Revenues from sales of automobiles | Minimum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Accounts receivable collection period | 36 months | |||||||||||||||||||||
Revenues from sales of automobiles | Maximum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Accounts receivable collection period | 48 months | |||||||||||||||||||||
Service fees from automobile purchase services | Minimum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Accounts receivable collection period | 36 months | 36 months | ||||||||||||||||||||
Service fees from automobile purchase services | Maximum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Accounts receivable collection period | 48 months | 48 months | ||||||||||||||||||||
CHINA | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Deposits | $ | 1,361,000 | $ 1,361,000 | $ 874,000 | 2,339,000 | ||||||||||||||||||
Maximum insurance claim deposit | 70,000 | 70,000 | 80,000 | ¥ 500,000 | ¥ 500,000 | |||||||||||||||||
UNITED STATES | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Deposits | $ | $ 91,000 | $ 91,000 | 117,000 | $ 1,560,000 | ||||||||||||||||||
Cash, FDIC Insured Amount | $ | $ 250,000 | |||||||||||||||||||||
May 2021 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Offering price | $ / shares | $ 11.75 | |||||||||||||||||||||
Exercisable term | 5 years | |||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 5,800,000 | |||||||||||||||||||||
Cash commission | $ | $ 487,500 | |||||||||||||||||||||
May 2021 | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Offering price | $ / shares | $ 1.175 | |||||||||||||||||||||
November 10, 2021 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Offering price | $ / shares | $ 1,000 | |||||||||||||||||||||
Exercisable term | 5 years | |||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 4,400,000 | |||||||||||||||||||||
Cash commission | $ | $ 375,000 | |||||||||||||||||||||
November 10, 2021 | Private Placement | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 5,000 | |||||||||||||||||||||
Underwriter Warrants | August 4, 2020 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 56,800 | 56,800 | 31,808 | 31,808 | 31,808 | 31,808 | 31,808 | 31,808 | ||||||||||||||
Underwriter Warrants | August 4, 2020 | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 568,000 | |||||||||||||||||||||
Underwriter Warrants | August 4, 2020 | Private Placement | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Exercise price of warrants (as a percent) | 125% | |||||||||||||||||||||
Investor Warrants | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 735,295 | |||||||||||||||||||||
Investor Warrants | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 7,352,941 | |||||||||||||||||||||
Investor Warrants | May 2021 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 553,192 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | 553,192 | 553,192 | ||||||||||||||||||||
Offering price | $ / shares | $ 10.5 | |||||||||||||||||||||
Investor Warrants | May 2021 | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 5,531,916 | |||||||||||||||||||||
Offering price | $ / shares | $ 1.05 | |||||||||||||||||||||
Investor Warrants | November 10, 2021 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 735,295 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | 5,335,763 | 5,310,763 | 5,310,763 | 5,335,763 | 5,310,763 | 5,335,763 | ||||||||||||||||
Offering price | $ / shares | $ 8.20 | |||||||||||||||||||||
Investor Warrants | November 10, 2021 | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 7,352,941 | |||||||||||||||||||||
Offering price | $ / shares | $ 0.82 | |||||||||||||||||||||
Placement Agent Warrants | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 55,148 | |||||||||||||||||||||
Placement Agent Warrants | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Number of new shares offered during period | 551,471 | |||||||||||||||||||||
Placement Agent Warrants | Maximum | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 14,251 | |||||||||||||||||||||
Placement Agent Warrants | Maximum | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 142,509 | |||||||||||||||||||||
Placement Agent Warrants | May 2021 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 41,490 | 41,490 | ||||||||||||||||||||
Offering price | $ / shares | $ 10.5 | |||||||||||||||||||||
Shares issued (in shares) | 41,490 | |||||||||||||||||||||
Placement Agent Warrants | May 2021 | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Offering price | $ / shares | $ 1.05 | |||||||||||||||||||||
Shares issued (in shares) | 414,894 | |||||||||||||||||||||
Placement Agent Warrants | November 10, 2021 | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 55,148 | 55,148 | 55,148 | 55,148 | 55,148 | 55,148 | ||||||||||||||||
Offering price | $ / shares | $ 6.80 | |||||||||||||||||||||
Shares issued (in shares) | 55,148 | |||||||||||||||||||||
Placement Agent Warrants | November 10, 2021 | Pre Reverse Split [Member] | ||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||
Offering price | $ / shares | $ 0.68 | |||||||||||||||||||||
Shares issued (in shares) | 551,471 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Oct. 17, 2019 |
DISCONTINUED OPERATIONS | |||||
Other receivables | $ 4,024,651 | $ 3,894,011 | |||
Additional paid-in capital | $ 43,339,412 | 42,803,033 | 40,759,807 | ||
Total current assets | 0 | 2,720,825 | |||
Jinkailong | |||||
DISCONTINUED OPERATIONS | |||||
Additional paid-in capital | 0 | ||||
Discontinued operations, abandonment | Online Lending Business | |||||
DISCONTINUED OPERATIONS | |||||
Accounts receivable | $ 143,668 | ||||
Other receivables | 3,760,599 | ||||
Prepayments for impaired intangible assets | $ 143,943 | ||||
Provision for doubtful accounts | $ 4,048,210 | ||||
Prepayments, other receivables and other assets, net | 0 | 393,348 | |||
Property and equipment, net | 0 | 5,592 | |||
Total Asset | 0 | 398,940 | |||
Discontinued operations, abandonment | Jinkailong | |||||
DISCONTINUED OPERATIONS | |||||
Additional paid-in capital | $ 0 | 42,803,033 | |||
Discontinued operations, abandonment | Jinkailong | Deconsolidation of Jinkailong | |||||
DISCONTINUED OPERATIONS | |||||
Accounts receivable | 0 | 935,164 | |||
Prepayments, other receivables and other assets, net | 0 | 1,245,195 | |||
Property and equipment, net | 0 | 448,816 | |||
Total current assets | 0 | 2,327,477 | |||
Total Asset | $ 0 | $ 7,450,696 |
DISCONTINUED OPERATIONS - Carry
DISCONTINUED OPERATIONS - Carrying amounts of major classes of liabilities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Current liabilities | |||
Total current liabilities | $ 485,736 | $ 528,426 | $ 11,677,266 |
Discontinued operations, abandonment | Online Lending Business | |||
Current liabilities | |||
Income tax payable | 468,376 | 509,540 | 2,288,066 |
Due to stockholder | 17,360 | 18,886 | 48,795 |
Total current liabilities | $ 485,736 | 528,426 | 2,336,861 |
Total current liabilities | $ 528,426 | $ 2,336,861 |
DISCONTINUED OPERATIONS - Recon
DISCONTINUED OPERATIONS - Reconciliation of major classes of income and losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating expenses | ||||||
Less: net loss from discontinued operations attributable to noncontrolling interest | $ (14,928) | $ (178,808) | $ (200,175) | $ (1,322,575) | $ 3,872,645 | $ (970,019) |
Net loss attributable to stockholders | $ 0 | (2,418,757) | 8,227,892 | (5,187,214) | ||
Discontinued operations, abandonment | Online Lending Business | ||||||
DISCONTINUED OPERATIONS | ||||||
Revenues | 0 | 7,153 | ||||
Operating expenses | ||||||
Selling, general and administrative expenses | 0 | (88,438) | ||||
Total operating expenses | 0 | (88,438) | ||||
Loss from discontinued operations | 0 | (81,285) | ||||
Other expense, net | 0 | 19,309 | ||||
Income (loss) before income taxes | 0 | (61,976) | ||||
Income tax expenses | 0 | 0 | ||||
Net loss attributable to stockholders | 0 | (61,976) | ||||
Discontinued operations, abandonment | Jinkailong | ||||||
DISCONTINUED OPERATIONS | ||||||
Revenues | 1,882,930 | 5,096,441 | 6,830,116 | 3,971,694 | ||
Cost of revenues | (1,375,818) | (4,295,661) | (5,183,806) | (3,985,413) | ||
Gross profit | 507,112 | 800,780 | 1,646,310 | (13,719) | ||
Operating expenses | ||||||
Selling, general and administrative expenses | (525,673) | (2,597,474) | (4,139,800) | (4,367,529) | ||
Amortization of intangible assets | (395,398) | (395,398) | ||||
Impairments of intangible assets and goodwill | (6,007) | (35,609) | ||||
Recovery of bad debts expense | 29,256 | 45,299 | (11,746) | 328,016 | ||
Long-lived assets impairment | (32,479) | (119,886) | ||||
Total operating expenses | (897,822) | (2,983,182) | (4,184,025) | (4,159,399) | ||
Loss from discontinued operations | (390,710) | (2,182,402) | (2,537,715) | (4,173,118) | ||
Other expense, net | (27,645) | (236,355) | (209,494) | (945,825) | ||
Income (loss) before income taxes | (418,355) | (2,418,757) | (2,747,209) | (5,118,943) | ||
Income tax expenses | 0 | 0 | (6,295) | |||
Net loss | (418,355) | (2,418,757) | (2,747,209) | (5,125,238) | ||
Less: net loss from discontinued operations attributable to noncontrolling interest | (108,772) | (628,877) | $ 714,274 | $ 1,332,562 | ||
Net loss attributable to stockholders | $ (309,583) | $ (1,789,880) | ||||
Percentage of equity interest ownership | 35% | 35% | 35% |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
ACCOUNTS RECEIVABLE, NET | ||||
Less: Allowance for doubtful accounts | $ (112,905) | $ (78,167) | $ (379,689) | |
Accounts receivable, net | $ 204,763 | 418,091 | 1,706,378 | |
Accounts receivable, net, current portion | 204,763 | 418,022 | 502,031 | |
Accounts receivable, net, non-current portion | 0 | 69 | 61,943 | |
Less: Unearned interest | (40,447) | |||
Discontinued operations | ||||
ACCOUNTS RECEIVABLE, NET | ||||
Less: Allowance for doubtful accounts | (76,428) | |||
Accounts receivable, net | 1,142,404 | |||
Accounts receivable, net, current portion | 204,763 | 418,022 | 935,164 | |
Accounts receivable, net, non-current portion | 69 | 207,240 | ||
Continuing operations | ||||
ACCOUNTS RECEIVABLE, NET | ||||
Less: Allowance for doubtful accounts | 0 | (112,905) | (1,739) | |
Accounts receivable, net | 418,091 | 563,974 | ||
Accounts receivable, net, current portion | 418,022 | 502,031 | ||
Accounts receivable, net, non-current portion | 69 | 61,943 | ||
Receivables of automobile sales due from automobile purchasers | ||||
ACCOUNTS RECEIVABLE, NET | ||||
Accounts receivable, gross | 107,246 | 392,530 | 760,126 | |
Receivables of service fees due from automobile purchasers | ||||
ACCOUNTS RECEIVABLE, NET | ||||
Accounts receivable, gross | 15,949 | 17,350 | 731,962 | |
Receivables of online ride hailing fees from online ride-hailing drivers | ||||
ACCOUNTS RECEIVABLE, NET | ||||
Accounts receivable, gross | 46,848 | $ 121,116 | 162,197 | |
Receivables of operating lease | ||||
ACCOUNTS RECEIVABLE, NET | ||||
Accounts receivable, gross | $ 34,720 | $ 170,707 |
ACCOUNTS RECEIVABLE, NET - Allo
ACCOUNTS RECEIVABLE, NET - Allowance for doubtful accounts (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |||
Beginning balance | $ 112,905 | $ 78,167 | $ 379,689 |
Addition | 3,392 | 153,988 | 374,785 |
Write off | (107,820) | (44,227) | (485,384) |
Deconsolidation of Jinkailong | (76,428) | 0 | |
Translation adjustment | $ (8,477) | 1,405 | 18,800 |
Ending balance | $ 112,905 | 78,167 | |
Recovery | $ (209,723) |
INVENTORIES - Additional inform
INVENTORIES - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) item | |
INVENTORIES | ||||||
Number of inventory units | item | 3 | |||||
Inventories | $ 0 | $ 0 | $ 286,488 | $ 127,933 | ||
Inventory net available for sale | $ 47,410 | |||||
Impairment of certain vehicle held for sale | $ 0 | $ 3,085 | ||||
Automobiles for either leasing or sale | ||||||
INVENTORIES | ||||||
Number of inventory units | item | 0 | 0 | 36 | 6 | ||
Inventory net for sale or sales-type leases | $ 0 | $ 0 | $ 346,886 | $ 80,523 | ||
Automobiles held for sale | ||||||
INVENTORIES | ||||||
Impairment of certain vehicle held for sale | 0 | $ 0 | 3,085 | $ 0 | 60,398 | |
Automobiles | ||||||
INVENTORIES | ||||||
Inventories | $ 0 | $ 0 | $ 286,488 | $ 127,933 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
INVENTORIES | |||
Inventories | $ 0 | $ 286,488 | $ 127,933 |
Automobiles | |||
INVENTORIES | |||
Inventories | $ 0 | $ 286,488 | $ 127,933 |
PREPAYMENTS, OTHER RECEIVABLE_3
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Deposits | $ 618,689 | $ 731,279 | $ 537,619 | |
Receivables from aggregation platforms | 253,168 | 163,384 | 867,614 | |
Prepaid expenses | 242,779 | 957,200 | 829,032 | |
Due from automobile purchasers, net | 103,333 | 238,421 | 504,792 | |
Employee advances | 8,951 | 11,054 | 9,739 | |
Value added tax ("VAT") recoverable | 93,214 | 597,884 | 99,445 | |
Others | 42,683 | 13,986 | 30,235 | |
Total prepayments, receivables and other assets | $ (1,362,817) | (2,713,208) | (4,298,626) | |
Prepayments for automobiles (vi) | 1,026,802 | |||
Receivables from borrowers of online lending platform, net (i) | [1] | 0 | 393,348 | |
Discontinued operations | ||||
Total prepayments, receivables and other assets | (1,638,543) | |||
Continuing operations | ||||
Total prepayments, receivables and other assets | $ (2,713,208) | $ (2,660,083) | ||
[1] Receivables from borrowers of online lending platform, net |
PREPAYMENTS, OTHER RECEIVABLE_4
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS - Additional information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Discontinued operations | |||
Allowance for Doubtful Other Receivables, Current | $ 38,519 | ||
Amount of additional allowance received | $ 24,838 | $ 35,983 | 93,246 |
Write off of receivables | 26,555 | 1,134 | 295,741 |
Allowance recovered | 12,308 | 12,352 | 125,940 |
Continuing operations | |||
Allowance for Doubtful Other Receivables, Current | 0 | 3,240 | |
Amount of additional allowance received | 55,459 | 84,600 | 175,460 |
Write off of receivables | $ 32,201 | 84,600 | 172,336 |
Allowance recovered | $ 3,308 | $ 0 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 USD ($) agreement | Sep. 30, 2022 USD ($) agreement | Dec. 31, 2022 USD ($) agreement item | Mar. 31, 2022 USD ($) | |
OTHER NON-CURRENT ASSETS | ||||
Number of automobiles purchased | item | 100 | |||
Operating lease payments | $ 215,763 | $ 557,677 | ||
Purchase Agreements | ||||
OTHER NON-CURRENT ASSETS | ||||
Number of automobiles purchased | agreement | 130 | 130 | 20 | |
Operating lease payments | $ 2,098,533 | $ 2,098,533 | ||
Prepayments of automobiles purchased | $ 837,731 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | $ 4,957,491 | $ 4,957,491 | $ 6,791,908 | $ 4,128,766 | ||
Less: accumulated depreciation and amortization | (1,427,295) | (1,427,295) | (1,133,135) | (423,027) | ||
Total property and equipment, net | 3,530,196 | 3,530,196 | 5,658,773 | 3,705,739 | ||
Depreciation expense | 873,480 | $ 704,741 | 956,400 | 85,530 | ||
Discontinued operations | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Total property and equipment, net | 454,408 | |||||
Depreciation expense | $ 50,768 | 144,901 | ||||
Continuing operations | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Total property and equipment, net | 5,658,773 | 3,251,331 | ||||
Depreciation expense | 266,998 | $ 277,783 | 873,480 | $ 704,741 | ||
Leasehold improvements | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | 182,429 | 182,429 | 198,463 | 192,020 | ||
Computer equipment | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | 44,433 | 44,433 | 47,849 | |||
Electronic devices | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | 47,849 | 53,200 | ||||
Office equipment, fixtures and furniture | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | 78,036 | 78,036 | 81,898 | 104,735 | ||
Automobiles | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | $ 4,652,593 | $ 4,652,593 | 6,463,698 | |||
Vehicles | ||||||
PROPERTY AND EQUIPMENT, NET | ||||||
Property, plant and equipment, Gross | $ 6,463,698 | $ 3,778,811 |
INTANGIBLE ASSETS, NET - Intang
INTANGIBLE ASSETS, NET - Intangible assets (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
INTANGIBLE ASSETS, NET | |||
Subtotal | $ 1,232,857 | $ 1,246,743 | |
Less: accumulated amortization | (413,186) | (287,192) | $ (123,675) |
Total intangible assets, net | 819,671 | 959,551 | 968,131 |
Software | |||
INTANGIBLE ASSETS, NET | |||
Subtotal | 793,195 | 796,042 | 794,548 |
Online ride- hailing platform Services | |||
INTANGIBLE ASSETS, NET | |||
Subtotal | $ 439,662 | $ 450,701 | $ 297,258 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization expense (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
INTANGIBLE ASSETS, NET | ||
Twelve months ending December 31, 2023 | $ 179,616 | $ 186,772 |
Twelve months ending December 31, 2024 | 169,528 | 178,660 |
Twelve months ending December 31, 2025 | 133,240 | 171,289 |
Twelve months ending December 31, 2026 | 85,157 | 111,011 |
Twelve months ending December 31, 2027 | 78,586 | 79,563 |
Thereafter | 173,544 | 232,256 |
Total | $ 819,671 | $ 959,551 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
INTANGIBLE ASSETS, NET | ||||||
Amortization expense | $ 128,538 | $ 104,829 | $ 160,831 | $ 107,765 | ||
Continuing operations | ||||||
INTANGIBLE ASSETS, NET | ||||||
Amortization expense | $ 34,814 | $ 30,186 | $ 128,538 | $ 104,829 | $ 160,831 | $ 107,765 |
BORROWINGS FROM A FINANCIAL I_2
BORROWINGS FROM A FINANCIAL INSTITUTION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
BORROWINGS FROM A FINANCIAL INSTITUTIONS CURRENT AND NON CURRENT | ||||||
Interest rate | 13.04% | 13.04% | 13.04% | |||
Short-term loan, repayment period | 12 months | |||||
Interest Expense, Debt | $ 450,889 | $ 531,954 | ||||
Long-Term Debt, Term | 12 months | |||||
Shor-term loan from financial institutions | ||||||
BORROWINGS FROM A FINANCIAL INSTITUTIONS CURRENT AND NON CURRENT | ||||||
Short-term loans | $ 22,857 | $ 22,857 | $ 145,542 | |||
Financial Institutions Borrower | Discontinued operations | ||||||
BORROWINGS FROM A FINANCIAL INSTITUTIONS CURRENT AND NON CURRENT | ||||||
Interest expense | $ 16,475 | $ 38,251 | 501,361 | 579,870 | ||
Financial Institutions Borrower | Continuing operations | ||||||
BORROWINGS FROM A FINANCIAL INSTITUTIONS CURRENT AND NON CURRENT | ||||||
Interest expense | $ 6,975 | $ 0 | $ 6,975 | $ 5,872 | $ 5,893 | $ 0 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
ACCRUED EXPENSES AND OTHER LIABILITIES | |||
Payables to investors of online lending platform | $ 1,795,066 | ||
Accrued payroll and welfare | $ 1,305,857 | $ 1,176,442 | 1,306,509 |
Payables to drivers from aggregation platforms | 845,726 | 806,921 | 2,352,264 |
Deposits | 555,513 | 783,830 | 1,639,681 |
Accrued expenses | 261,085 | 94,106 | 6,090 |
Other taxes payable | 113,083 | 5,260 | 398,220 |
Loan repayments received on behalf of financial institutions | 63,989 | 28,704 | 839,770 |
Payables for expenditures on automobile transaction and related services | 26,562 | 56,222 | 159,388 |
Other payables | 11,770 | 2,422 | 446,670 |
Total accrued expenses and other liabilities | 3,183,585 | 2,953,907 | 8,943,658 |
Continuing operations | |||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||
Total accrued expenses and other liabilities | 2,715,209 | 2,444,367 | 2,873,227 |
Discontinued operations | |||
ACCRUED EXPENSES AND OTHER LIABILITIES | |||
Total accrued expenses and other liabilities | $ 468,376 | $ 509,540 | $ 6,070,431 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Continuing operations | ||||||
EMPLOYEE BENEFIT PLAN | ||||||
Defined contribution cost | $ 107,638 | $ 130,591 | $ 338,279 | $ 383,896 | $ 602,641 | $ 73,047 |
Defined benefit obligation | $ 885,967 | $ 885,967 | 963,824 | 111,534 | ||
Discontinued operations | ||||||
EMPLOYEE BENEFIT PLAN | ||||||
Defined contribution cost | $ 78,618 | $ 182,128 | $ 464,159 | 340,517 | ||
Defined benefit obligation | $ 897,091 |
EQUITY - IPO Warrants (Details)
EQUITY - IPO Warrants (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
IPO Warrants | ||
EQUITY | ||
Number of warrants outstanding | 3,794 | 3,794 |
IPO Warrants | Pre reverse split | ||
EQUITY | ||
Number of warrants outstanding | 37,940 | 37,940 |
Common stock | ||
EQUITY | ||
Shares in a unit | 1 | |
Price per share | $ 48 | |
Warrant Exercisable Term | Mar. 16, 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 $48.0 ($4.80 pre reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018 | |
Common stock | Reverse split | ||
EQUITY | ||
Price per share | $ 4.80 | |
Common stock | IPO Warrants | ||
EQUITY | ||
Warrants to purchase shares of common stock | 33,794 | 33,794 |
Common stock | IPO Warrants | Pre reverse split | ||
EQUITY | ||
Warrants to purchase shares of common stock | 337,940 | 337,940 |
EQUITY - 2019 Registered Direct
EQUITY - 2019 Registered Direct Offering Warrants (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Apr. 23, 2021 USD ($) shareholder $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) shares | Mar. 31, 2021 USD ($) shares | Nov. 30, 2021 $ / shares | Dec. 20, 2019 $ / shares | Aug. 15, 2019 $ / shares | Jul. 21, 2019 shares | Jun. 21, 2019 shares | |
EQUITY | ||||||||||||
Exercise price of warrants | $ / shares | $ 0.82 | |||||||||||
Change in fair value of derivative liabilities | $ | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||||||||
2019 Registered Direct Offering Warrants | ||||||||||||
EQUITY | ||||||||||||
Number of warrants outstanding | 16,841 | 16,841 | 16,841 | 21,244 | ||||||||
Change in fair value of derivative liabilities | $ | $ 524 | $ 32,150 | $ 12,220 | $ 168,230 | $ 185,727 | $ (1,372,966) | ||||||
Fair value of the derivative instrument | $ | $ 218 | $ 218 | $ 12,438 | $ 243,840 | ||||||||
2019 Registered Direct Offering Warrants | Pre reverse split | ||||||||||||
EQUITY | ||||||||||||
Number of warrants outstanding | 168,411 | 168,411 | 168,411 | 212,440 | ||||||||
SeriesWarrants | ||||||||||||
EQUITY | ||||||||||||
Class of warrant number of securities called by warrants | 133,602 | 133,603 | ||||||||||
Exercise price of warrants | $ / shares | $ 15 | $ 37.2 | ||||||||||
SeriesWarrants | Pre reverse split | ||||||||||||
EQUITY | ||||||||||||
Class of warrant number of securities called by warrants | 1,336,021 | 1,336,021 | ||||||||||
Exercise price of warrants | $ / shares | $ 1.50 | $ 3.72 | ||||||||||
SeriesWarrants | Note Warrant [Member] | ||||||||||||
EQUITY | ||||||||||||
Number of shareholder | shareholder | 1 | |||||||||||
Class of warrant number of securities called by warrants | 4,403 | |||||||||||
Exercise price of warrants | $ / shares | $ 5 | |||||||||||
Gross proceeds from warrant exercises | $ | $ 22,015 | |||||||||||
SeriesWarrants | Note Warrant [Member] | Pre reverse split | ||||||||||||
EQUITY | ||||||||||||
Class of warrant number of securities called by warrants | 44,029 | |||||||||||
Exercise price of warrants | $ / shares | $ 0.50 |
EQUITY - August 2020 Underwrite
EQUITY - August 2020 Underwriters' Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
EQUITY | ||||||
Change in fair value of derivative liabilities | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||
August 2020 Underwriters' Warrants | ||||||
EQUITY | ||||||
Number of warrants outstanding | 31,808 | 31,808 | 31,808 | 31,808 | ||
Change in fair value of derivative liabilities | $ 1,180 | $ 64,140 | $ 34,526 | $ 315,393 | $ 352,944 | $ (455,162) |
Fair value of the derivative instrument | $ 10,055 | $ 10,055 | $ 44,581 | $ 397,525 | ||
August 2020 Underwriters' Warrants | Pre reverse split | ||||||
EQUITY | ||||||
Number of warrants outstanding | 318,080 | 318,080 | 318,080 | 318,080 |
EQUITY - February 2021 Register
EQUITY - February 2021 Registered Direct Offering Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
EQUITY | ||||||
Change in fair value of derivative liabilities | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||
February 2021 Registered Direct Offering Warrants | ||||||
EQUITY | ||||||
Number of warrants outstanding | 53,262 | 53,262 | 53,262 | 53,262 | ||
Change in fair value of derivative liabilities | $ 1,952 | $ 102,568 | $ 51,581 | $ 514,123 | $ 572,018 | $ 117,713 |
Fair value of the derivative instrument | $ 13,962 | $ 13,962 | $ 65,543 | $ 637,561 | ||
February 2021 Registered Direct Offering Warrants | Pre reverse split | ||||||
EQUITY | ||||||
Number of warrants outstanding | 532,609 | 532,609 | 532,609 | 532,609 |
EQUITY - May 2021 Registered Di
EQUITY - May 2021 Registered Direct Offering Warrants (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 21, 2019 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) shares | Mar. 31, 2021 USD ($) | May 13, 2021 $ / shares | |
EQUITY | ||||||||
Change in fair value of derivative liabilities | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||||
Common stock | $ 6,000,000 | |||||||
Proceeds from Issuance or Sale of Equity | $ 0 | 5,771,053 | $ 5,771,053 | $ 5,743,905 | ||||
May 2021 Registered Direct Offering Warrants | ||||||||
EQUITY | ||||||||
Number of warrants outstanding | shares | 594,682 | 594,682 | 594,682 | |||||
Change in fair value of derivative liabilities | $ 4,974 | $ 1,186,878 | $ 634,040 | $ 2,036,440 | $ 2,725,530 | |||
Common stock | 2,208,649 | |||||||
Fair value of Investor warrants | 3,562,404 | |||||||
Proceeds from Issuance or Sale of Equity | 5,771,053 | |||||||
Derivative Liability, Fair Value, Gross Liability, Total | $ 202,835 | $ 202,835 | $ 836,875 | |||||
May 2021 Registered Direct Offering Warrants | Risk free interest rate | ||||||||
EQUITY | ||||||||
Warrants measurement input | 0.84 | |||||||
May 2021 Registered Direct Offering Warrants | Stock price | ||||||||
EQUITY | ||||||||
Warrants measurement input | $ / shares | 7.2 | |||||||
May 2021 Registered Direct Offering Warrants | Measurement Input, Expected Dividend Rate | ||||||||
EQUITY | ||||||||
Warrants measurement input | 0 | |||||||
May 2021 Registered Direct Offering Warrants | Expected term | ||||||||
EQUITY | ||||||||
Warrants and Rights Outstanding, Term | 5 years | |||||||
May 2021 Registered Direct Offering Warrants | Pre Reverse Split [Member] | ||||||||
EQUITY | ||||||||
Number of warrants outstanding | shares | 5,946,810 | 5,946,810 | 5,946,810 | |||||
May 2021 Registered Direct Offering Warrants | Pre Reverse Split [Member] | Stock price | ||||||||
EQUITY | ||||||||
Warrants measurement input | $ / shares | 0.72 |
EQUITY - November 2021 Private
EQUITY - November 2021 Private Placement Warrants (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Apr. 06, 2022 | May 13, 2021 shares | Jul. 21, 2019 USD ($) | Jun. 21, 2019 shares | Nov. 30, 2021 $ / shares shares | Nov. 30, 2021 D $ / shares shares | Nov. 30, 2021 item $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) | Aug. 31, 2020 $ / shares | Aug. 18, 2020 $ / shares | |
EQUITY | |||||||||||||||
Number of new shares offered during period | shares | 553,192 | 178,137 | |||||||||||||
Exercise price of warrants | $ / shares | $ 0.82 | $ 0.82 | $ 0.82 | ||||||||||||
Reverse stock split | 0.1 | ||||||||||||||
Proceeds from Issuance of Common Stock | $ 6,000,000 | ||||||||||||||
Proceeds from Issuance or Sale of Equity | $ 0 | $ 5,771,053 | $ 5,771,053 | $ 5,743,905 | |||||||||||
Change in fair value of derivative liabilities | (1,641,650) | (5,185,309) | (6,951,482) | $ 1,710,415 | |||||||||||
Increased in additional paid in capital | $ 1,533 | ||||||||||||||
Total fair value of warrants allocated to derivative liabilities | $ 4,371,030 | ||||||||||||||
Investor Warrants | |||||||||||||||
EQUITY | |||||||||||||||
Number of new shares offered during period | shares | 735,295 | ||||||||||||||
Number of lowest trading days | 5 | 5 | |||||||||||||
Consecutive trading day period | 20 days | ||||||||||||||
Number of volume weighted average price | item | 5 | ||||||||||||||
Exercise price of warrants | $ / shares | $ 1.13 | $ 1.13 | $ 1.13 | ||||||||||||
Reverse stock split | 0.1 | ||||||||||||||
Number of warrants outstanding | shares | 5,335,763 | 5,335,763 | 5,335,763 | ||||||||||||
Total fair value of warrants allocated to derivative liabilities | $ 4,060,857 | ||||||||||||||
Placement Agent Warrants | |||||||||||||||
EQUITY | |||||||||||||||
Number of new shares offered during period | shares | 55,148 | ||||||||||||||
Exercise price of warrants | $ / shares | $ 5 | $ 37.2 | |||||||||||||
Total fair value of warrants allocated to derivative liabilities | $ 310,173 | ||||||||||||||
November 2021 Private Placement Warrants | |||||||||||||||
EQUITY | |||||||||||||||
Number of lowest trading days | D | 5 | ||||||||||||||
Consecutive trading day period | 20 days | ||||||||||||||
Number of volume weighted average price | item | 5 | ||||||||||||||
Exercise price of warrants | $ / shares | $ 1.13 | $ 1.13 | $ 1.13 | ||||||||||||
Reverse stock split | 0.1 | ||||||||||||||
Number of warrants outstanding | shares | 5,335,763 | 5,335,763 | 5,335,763 | 5,365,911 | 5,365,911 | ||||||||||
Proceeds from Issuance of Common Stock | 939,143 | ||||||||||||||
Total gross proceeds | 5,000,000 | ||||||||||||||
Issuance cost | 630,063 | ||||||||||||||
Proceeds from Issuance or Sale of Equity | 4,369,937 | ||||||||||||||
Fair value of Investor warrants | 4,060,857 | ||||||||||||||
Change in fair value of derivative liabilities | $ 21,927 | $ 2,151,123 | $ 909,283 | $ 2,151,123 | 3,115,263 | ||||||||||
Fair value of the derivative instrument | $ 344,951 | $ 344,951 | $ 1,255,767 | ||||||||||||
November 2021 Private Placement Warrants | Stock price | |||||||||||||||
EQUITY | |||||||||||||||
Warrants measurement input | $ / shares | 6.7 | ||||||||||||||
November 2021 Private Placement Warrants | Expected term | |||||||||||||||
EQUITY | |||||||||||||||
Term of the warrants | 5 years | ||||||||||||||
November 2021 Private Placement Warrants | Risk free interest rate | |||||||||||||||
EQUITY | |||||||||||||||
Warrants measurement input | 1.23 | ||||||||||||||
November 2021 Private Placement Warrants | Expected volatility | |||||||||||||||
EQUITY | |||||||||||||||
Warrants measurement input | 126 | ||||||||||||||
November 2021 Private Placement Warrants | Measurement Input, Expected Dividend Rate | |||||||||||||||
EQUITY | |||||||||||||||
Warrants measurement input | 0 | ||||||||||||||
Pre reverse split | |||||||||||||||
EQUITY | |||||||||||||||
Number of new shares offered during period | shares | 5,531,916 | 1,781,361 | |||||||||||||
Pre reverse split | Investor Warrants | |||||||||||||||
EQUITY | |||||||||||||||
Number of new shares offered during period | shares | 7,352,941 | ||||||||||||||
Pre reverse split | Placement Agent Warrants | |||||||||||||||
EQUITY | |||||||||||||||
Number of new shares offered during period | shares | 551,471 | ||||||||||||||
Exercise price of warrants | $ / shares | $ 0.50 | $ 3.72 | |||||||||||||
Pre reverse split | November 2021 Private Placement Warrants | |||||||||||||||
EQUITY | |||||||||||||||
Number of warrants outstanding | shares | 7,869,961 | 7,869,961 | |||||||||||||
Pre reverse split | November 2021 Private Placement Warrants | Stock price | |||||||||||||||
EQUITY | |||||||||||||||
Warrants measurement input | $ / shares | 0.67 |
EQUITY - Warrants Outstanding (
EQUITY - Warrants Outstanding (Details) - Warrant - $ / shares | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2019 | |
Warrants Outstanding | ||||
Balance at the beginning | 6,091,298 | 110,107 | 1,519,602 | |
Granted | 5,985,591 | 1,100,609 | ||
Forfeited | (3,132) | |||
Exercised | (25,000) | (4,400) | (1,516,010) | |
Balance at the end | 6,066,298 | 6,091,298 | 110,107 | |
Warrants Exercisable | ||||
Balance at the beginning | 6,091,298 | 110,107 | 1,519,602 | |
Granted | 5,985,591 | 1,100,609 | ||
Forfeited | (3,132) | |||
Exercised | (25,000) | (4,400) | (1,516,010) | |
Balance at the end | 6,066,298 | 6,091,298 | 110,107 | |
Weighted Average Exercise Price | ||||
Balance at the beginning | $ 2.28 | $ 11.60 | $ 1.76 | |
Granted | 2.11 | 1.48 | ||
Balance at the end | $ 2.29 | $ 2.28 | $ 11.60 | |
Granted | 5 years | 5 years | ||
Average remaining contractual life | 3 years 9 months 21 days | 4 years 3 months 25 days | 4 years 1 month 2 days | 3 years 2 months 15 days |
EQUITY - Restricted Stock Units
EQUITY - Restricted Stock Units (Details) - Restricted stock units | Oct. 29, 2021 installment shares | Oct. 29, 2020 USD ($) shares |
EQUITY | ||
Granted | 127,273 | |
Aggregate fair value | $ | $ 140,000 | |
Number of quarterly installments | installment | 4 | |
Vested | 127,273 | 12,727 |
Settled | 9,545 | |
Pre reverse split | ||
EQUITY | ||
Vested | 127,273 | |
Settled | 95,457 |
EQUITY - Equity Incentive Plan
EQUITY - Equity Incentive Plan (Details) | Nov. 08, 2018 director |
Equity Incentive Plan | |
EQUITY | |
Number of directors ceased to serve | 2 |
EQUITY - Exercise of November 2
EQUITY - Exercise of November 2021 Private Placement Warrants (Details) | Nov. 18, 2022 shares |
Exercise of Warrants | November 2021 Private Placement Warrants | |
EQUITY | |
Class of warrant number of securities called by warrants | 10,132 |
EQUITY - 1-for- 10 shares rever
EQUITY - 1-for- 10 shares reverse split on common stock (Details) | 9 Months Ended | 12 Months Ended | ||
Apr. 06, 2022 | Dec. 31, 2022 shares | Mar. 31, 2022 shares | ||
EQUITY | ||||
Reverse stock split | 0.1 | |||
Additional shares of common stock round up issue | 8,402 | 8,402 | ||
Common stock | ||||
EQUITY | ||||
Additional shares of common stock round up issue | [1] | 8,402 | ||
Subsequent event | ||||
EQUITY | ||||
Reverse stock split | 0.1 | |||
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
EQUITY - Conversion Price Adjus
EQUITY - Conversion Price Adjustment for November 2021 Preferred Shares (Details) | 1 Months Ended | 9 Months Ended | ||||||
Apr. 06, 2022 $ / shares shares | Nov. 30, 2021 $ / shares shares | Dec. 31, 2022 shares | Aug. 09, 2022 $ / shares shares | Mar. 31, 2022 shares | Nov. 10, 2021 $ / shares | Nov. 07, 2021 $ / shares | Mar. 31, 2021 shares | |
EQUITY | ||||||||
Floor Price | $ / shares | $ 0.41 | |||||||
Threshold percentage on closing bid price | 85% | |||||||
Reverse stock split | 0.1 | |||||||
Exercise price of warrants | $ / shares | $ 0.82 | |||||||
Number of shares issued upon conversion | shares | 1,496,125 | |||||||
Private Placement | ||||||||
EQUITY | ||||||||
Initial conversion price | $ / shares | $ 4.10 | $ 2 | ||||||
Number of common stock that are available to be issued upon conversion of the Preferred Shares | shares | 1,092,683 | 2,240,000 | ||||||
Threshold percentage on closing bid price | 85% | |||||||
Reverse stock split | 0.1 | |||||||
Exercise price of warrants | $ / shares | $ 4.1 | $ 8.2 | $ 6.8 | |||||
Series A Convertible Preferred Stock | ||||||||
EQUITY | ||||||||
Preferred stock, shares outstanding | shares | 1,741 | 5,000 | 0 | |||||
Number of shares converted | shares | 520 | 3,259 | ||||||
Number of shares issued upon conversion | shares | 126,831 | 870,706 | ||||||
Series A Convertible Preferred Stock | Private Placement | ||||||||
EQUITY | ||||||||
Initial conversion price | $ / shares | $ 0.68 |
EQUITY - Adjustments of Exercis
EQUITY - Adjustments of Exercise Price and Warrant Shares for November 2021 Investors Warrants (Details) | 1 Months Ended | |||
Apr. 06, 2022 | Nov. 30, 2021 $ / shares shares | Nov. 30, 2021 D $ / shares shares | Nov. 30, 2021 item $ / shares shares | |
EQUITY | ||||
Exercise price of warrants | $ 0.82 | $ 0.82 | $ 0.82 | |
Reverse stock split | 0.1 | |||
Investor Warrants | ||||
EQUITY | ||||
Number of lowest trading days | 5 | 5 | ||
Consecutive trading day period | 20 days | |||
Number of volume weighted average price | item | 5 | |||
Exercise price of warrants | $ 1.13 | $ 1.13 | $ 1.13 | |
Reverse stock split | 0.1 | |||
Number of warrants outstanding | shares | 5,335,763 | 5,335,763 | 5,335,763 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | |||||
Current income tax expenses | $ 4,566 | $ 8,332 | |||
Deferred income tax expenses | $ 4,539 | $ 0 | $ 4,550 | 0 | 0 |
Total income tax expenses | $ 4,539 | $ 0 | $ 4,550 | $ 4,566 | $ 8,332 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
INCOME TAXES | |||
Net operating loss carryforwards in the PRC | $ 2,732,507 | $ 2,315,793 | $ 415,533 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Less: valuation allowance | (1,500,000) | (1,230,000) | (800,000) |
Continuing operations | |||
INCOME TAXES | |||
Net operating loss carryforwards in the PRC | 2,732,507 | 2,315,793 | 415,533 |
Net operating loss carryforwards in the U.S. | 1,508,215 | 1,234,789 | 754,502 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Less: valuation allowance | (4,372,497) | (3,579,711) | (1,171,280) |
Deferred tax assets, net | 0 | 0 | 0 |
Deferred tax liabilities: | |||
Capitalized intangible assets cost | 42,746 | 46,386 | 45,146 |
Deferred tax liabilities, net | 42,746 | 46,386 | 45,146 |
Discontinued operations | |||
INCOME TAXES | |||
Net operating loss carryforwards in the PRC | 2,595,919 | 2,595,919 | 3,802,496 |
Allowance for doubtful accounts | 20,190 | ||
Less: valuation allowance | (2,595,919) | (2,595,919) | $ (3,822,686) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | |||
U.S. federal corporate income tax rate | 21% | ||
Operating loss carryforwards | $ 10,500,000 | $ 8,500,000 | $ 1,700,000 |
Operating loss carryforwards expiration year | 2025 | 2024 | |
Net operating loss included in operating loss carryforwards | $ 400,000 | $ 2,300,000 | |
Deferred tax assets operating loss carryforwards | $ 7,100,000 | $ 5,900,000 | |
Valuation allowance percentage on deferred tax asset | 100% | 100% | 100% |
Valuation allowances for deferred tax asset | $ 1,500,000 | $ 1,230,000 | $ 800,000 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Net operating loss carryforwards in the PRC | $ 2,732,507 | $ 2,315,793 | 415,533 |
Percentage on income tax rate reconciliation | 80% | 80% | |
Continuing operations | |||
INCOME TAXES | |||
Valuation allowances for deferred tax asset | $ 4,372,497 | $ 3,579,711 | 1,171,280 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Net operating loss carryforwards in the PRC | 2,732,507 | 2,315,793 | 415,533 |
Discontinued operations | |||
INCOME TAXES | |||
Operating loss carryforwards | 10,300,000 | 10,300,000 | 15,300,000 |
Valuation allowances for deferred tax asset | 2,595,919 | 2,595,919 | 3,822,686 |
Allowance for doubtful accounts | 20,190 | ||
Net operating loss carryforwards in the PRC | $ 2,595,919 | $ 2,595,919 | $ 3,802,496 |
State Administration of Taxation, China | |||
INCOME TAXES | |||
PRC statutory tax rate | 25% | 25% |
CONCENTRATION (Details)
CONCENTRATION (Details) - item | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
CONCENTRATION | |||||
Number of suppliers | 3 | 2 | 2 | 3 | |
Discontinued operations | |||||
CONCENTRATION | |||||
Number of suppliers | 1 | 1 | 1 | ||
Continuing operations | |||||
CONCENTRATION | |||||
Number of suppliers | 3 | ||||
Revenue | Supplier Concentration Risk | Suppliers One | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 19.70% | 35.10% | 20.30% | 30.10% | |
Revenue | Supplier Concentration Risk | Suppliers One | Discontinued operations | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 18.10% | 17.40% | 18.18% | ||
Revenue | Supplier Concentration Risk | Suppliers One | Continuing operations | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 25.43% | ||||
Revenue | Supplier Concentration Risk | Suppliers Two | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 12% | 19.80% | 12% | 18.10% | |
Revenue | Supplier Concentration Risk | Suppliers Two | Continuing operations | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 14.97% | ||||
Revenue | Supplier Concentration Risk | Suppliers Three | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 11.80% | 16.90% | |||
Revenue | Supplier Concentration Risk | Suppliers Three | Continuing operations | |||||
CONCENTRATION | |||||
Percentage of total costs of revenue | 14.17% |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Amount due to stockholder, related parties and affiliates (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) item | |||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||
Total due to a stockholder | $ 17,360 | $ 17,360 | $ 18,886 | $ 48,795 | ||||
Loan payable to related party | 114,425 | 114,425 | 9,897 | [1] | 182,281 | [1] | ||
Others | 2,812 | 2,812 | 1,785 | 170,546 | ||||
Total due to related parties and affiliates | 117,237 | 117,237 | 11,682 | 352,827 | ||||
Interest expense on related party transaction | 0 | $ 0 | 0 | $ 0 | 0 | |||
Interest free loans from related parties | 9,897 | $ 78,708 | ||||||
Number of related parties | item | 2 | |||||||
Operating lease right-of-use assets, net | 174,262 | 174,262 | 109,621 | $ 233,751 | ||||
Operating lease liabilities | 104,075 | 104,075 | 50,177 | 109,813 | ||||
Discontinued operations | ||||||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||
Total due to a stockholder | 17,360 | 17,360 | 18,886 | 48,795 | ||||
Total due to related parties and affiliates | 269,918 | |||||||
Interest free loans from related parties | 103,574 | |||||||
Continuing operations | ||||||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||
Total due to related parties and affiliates | 11,682 | 82,909 | ||||||
Operating lease right-of-use assets, net | 446,372 | 475,408 | ||||||
Operating lease liabilities | 246,516 | 161,818 | ||||||
Jun Wang | ||||||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||
Total due to a stockholder | $ 17,360 | $ 17,360 | $ 18,886 | 48,795 | ||||
Related Party One | ||||||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||
Others | 4,201 | |||||||
Four Other Related Parties | Continuing operations | ||||||||
RELATED PARTY TRANSACTIONS AND BALANCES | ||||||||
Others | $ 166,345 | |||||||
[1] As of March 31, 2022 and March 31, 2021, the balances represented borrowings from a related party, of which, $ 9,897 and $ 78,708 are unsecured, interest free and due on demand, respectively, from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 103,574 represented borrowings from two related parties, which are unsecured, interest free and due on demand, respectively, from the Company’s discontinued operations. |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Operating lease right-of-use assets, net, related parties and Operating lease liabilities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Related Party Balances and Transactions | |||
Operating lease right-of-use assets - related parties | $ 139,787 | $ 515,906 | $ 580,367 |
Operating lease liabilities, current - related parties | 163,558 | 330,781 | 243,726 |
Operating lease liabilities, non-current - related parties | 52,205 | 226,896 | 341,549 |
Operating lease right-of-use assets, net | 174,262 | 109,621 | 233,751 |
Lease I | |||
Related Party Balances and Transactions | |||
Operating lease right-of-use assets - related parties | 27,519 | 446,372 | |
Operating lease liabilities, current - related parties | 91,732 | 246,516 | |
Operating lease liabilities, non-current - related parties | 211,953 | ||
Lease II | |||
Related Party Balances and Transactions | |||
Operating lease right-of-use assets - related parties | 112,268 | 69,534 | |
Operating lease liabilities, current - related parties | 71,826 | 84,265 | |
Operating lease liabilities, non-current - related parties | $ 52,205 | 14,943 | |
Continuing operations | |||
Related Party Balances and Transactions | |||
Operating lease right-of-use assets, net | $ 446,372 | $ 475,408 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Additional information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Nov. 30, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 item | Sep. 30, 2021 item | Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Related Party Balances and Transactions | ||||||||||
Accounts receivable, a related party | $ 9,816 | $ 9,816 | $ 0 | |||||||
Due to stockholders | 17,360 | 17,360 | 18,886 | $ 48,795 | ||||||
Amount due from related parties | 7,298,208 | 24,311 | ||||||||
Advances to non-controlling shareholders | 18,882 | 18,882 | 19,874 | 15,261 | ||||||
Operating lease liabilities, noncurrent | 97,350 | 97,350 | 47,910 | 95,886 | ||||||
Due to related parties others | 2,812 | $ 2,812 | $ 1,785 | 170,546 | ||||||
Description of contractual period of operating lease | November 1, 2018 to October 31, 2023 | November 1, 2018 to October 31, 2023 | ||||||||
Operating lease liabilities | 104,075 | $ 104,075 | $ 50,177 | 109,813 | ||||||
Continuing operations | ||||||||||
Related Party Balances and Transactions | ||||||||||
Amount due from related parties | 5,992,152 | 5,992,152 | ||||||||
Operating lease liabilities, noncurrent | 211,953 | 285,371 | ||||||||
Operating lease liabilities | 246,516 | 161,818 | ||||||||
Discontinued operations | ||||||||||
Related Party Balances and Transactions | ||||||||||
Due to stockholders | 17,360 | 17,360 | 18,886 | 48,795 | ||||||
Jinkailong | ||||||||||
Related Party Balances and Transactions | ||||||||||
Accounts receivable, a related party | 9,816 | 9,816 | ||||||||
Amount due from related parties | 5,351,735 | 5,351,735 | 6,635,746 | |||||||
Additional allowance against related party due | 464,708 | |||||||||
Promotion fee incurred | 19,483 | $ 19,478 | 87,692 | $ 524,633 | ||||||
Due to related parties others | 2,812 | 2,812 | 1,785 | |||||||
Revenue from related party | 30,748 | 362,529 | 323,321 | 914,513 | ||||||
Rental cost | 185,254 | $ 333,756 | ||||||||
Number of automobiles leased | item | 370 | 370 | ||||||||
Interest income | 119,215 | 327,808 | ||||||||
Sichuan Senmiao's | ||||||||||
Related Party Balances and Transactions | ||||||||||
Number of lease agreements entered | agreement | 2 | |||||||||
Operating lease, rent expense | 40,490 | 62,353 | $ 148,999 | 176,652 | ||||||
Shareholders | ||||||||||
Related Party Balances and Transactions | ||||||||||
Borrowings from related parties and affiliates | $ 159,000 | |||||||||
Operating lease, rent expense | 237,968 | 121,012 | ||||||||
Jun Wang | ||||||||||
Related Party Balances and Transactions | ||||||||||
Due to stockholders | 48,795 | 800,000 | ||||||||
Borrowings from related parties and affiliates | 159,000 | |||||||||
Sichuan Qihuaxin Automobiles | ||||||||||
Related Party Balances and Transactions | ||||||||||
Maintenance fees to affiliates | 942,581 | |||||||||
Xiang Hu | ||||||||||
Related Party Balances and Transactions | ||||||||||
Due to stockholders | 18,886 | 2 | ||||||||
Borrowings from related parties and affiliates | $ 955,000 | |||||||||
Hunan Dingchentai Investment Co | ||||||||||
Related Party Balances and Transactions | ||||||||||
Operating leases annual rental payments | $ 44,250 | |||||||||
Operating lease, rent expense | 45,651 | $ 44,169 | ||||||||
Operating lease, rent expense | $ 11,557 | 11,705 | $ 46,427 | 34,153 | ||||||
Hunan Dingchentai Investment Co | Continuing operations | ||||||||||
Related Party Balances and Transactions | ||||||||||
Operating lease liabilities, noncurrent | 56,178 | |||||||||
Operating lease liabilities | 81,908 | |||||||||
Hunan Dingchentai Investment Co | Discontinued operations | ||||||||||
Related Party Balances and Transactions | ||||||||||
Operating lease liabilities, noncurrent | 14,943 | |||||||||
Operating lease liabilities | 84,265 | |||||||||
Hunan Dingchentai Investment Co | Lease II | ||||||||||
Related Party Balances and Transactions | ||||||||||
Operating leases annual rental payments | $ 44,250 | |||||||||
Sichuan Yousen Automobiles Maintenance Services Ltd | ||||||||||
Related Party Balances and Transactions | ||||||||||
Maintenance fees to affiliates | $ 575,136 | |||||||||
Sichuan Yousen Automobiles Maintenance Services Ltd | Sichuan Qihuaxin Automobiles | ||||||||||
Related Party Balances and Transactions | ||||||||||
Maintenance fees to affiliates | $ 242,046 | $ 776,182 |
LEASES - Operating and finance
LEASES - Operating and finance lease expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Finance lease cost | ||||||
Amortization of leased asset | $ 579,209 | $ 635,036 | $ 955,443 | $ 398,292 | ||
Total lease expenses | $ 796,987 | $ 1,676,023 | 2,352,191 | 4,895,810 | 6,487,477 | 5,269,993 |
Discontinued operations | ||||||
Finance lease cost | ||||||
Interest on lease liabilities | 84,307 | 269,397 | 277,366 | 686,684 | ||
Total lease expenses | 989,573 | 3,240,386 | 4,150,972 | 4,748,180 | ||
Continuing operations | ||||||
Finance lease cost | ||||||
Interest on lease liabilities | 7,602 | 13,612 | 15,903 | 44,369 | 55,844 | 46,518 |
Total lease expenses | 796,987 | 686,450 | 2,352,191 | 1,655,424 | 2,336,505 | 521,813 |
Cost of revenues | ||||||
Operating Lease Cost | ||||||
Automobile lease costs | 564,646 | 501,847 | 1,622,601 | 1,205,011 | 1,749,959 | 42,306 |
Finance lease cost | ||||||
Amortization of leased asset | 73,991 | 834,807 | 203,044 | 2,419,695 | 2,844,167 | 2,441,873 |
Selling, general and administrative | ||||||
Operating Lease Cost | ||||||
Lease expenses | 88,493 | 165,263 | 313,753 | 434,733 | 585,719 | 396,276 |
Finance lease cost | ||||||
Amortization of leased asset | 974,422 | 1,656,336 | ||||
General and administrative | ||||||
Finance lease cost | ||||||
Amortization of leased asset | 62,255 | 76,187 | 196,890 | 522,605 | ||
Interest expenses on finance leases | ||||||
Finance lease cost | ||||||
Interest on lease liabilities | $ 7,602 | $ 97,919 | $ 15,903 | $ 313,766 | $ 333,210 | $ 733,202 |
LEASES - Lease obligations in f
LEASES - Lease obligations in future periods (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Operating lease payments | ||
Twelve months ending December 31, 2023 | $ 265,601 | |
Twelve months ending December 31, 2024 | 95,690 | |
Twelve months ending December 31, 2025 | 63,120 | |
Twelve months ending December 31, 2026 | 14,982 | |
Total lease payments | 439,393 | $ 698,106 |
Less: discount | (22,205) | (42,342) |
Present value of lease liabilities | 417,188 | 655,764 |
Finance lease payments | ||
Twelve months ending December 31, 2023 | 278,610 | |
Twelve months ending December 31, 2024 | 269,675 | |
Twelve months ending December 31, 2025 | 202,256 | |
Total lease payments | 750,541 | 318,902 |
Less: discount | (58,657) | (12,969) |
Present value of lease liabilities | 691,884 | 305,933 |
Lease payments | ||
Twelve months ending December 31, 2023 | 544,211 | |
Twelve months ending December 31, 2024 | 365,365 | 704,441 |
Twelve months ending December 31, 2025 | 265,376 | 195,714 |
Twelve months ending December 31, 2026 | 14,982 | 64,268 |
Twelve months ending December 31, 2027 | 52,585 | |
Total lease payments | 1,189,934 | 1,017,008 |
Less: discount | (80,862) | (55,311) |
Present value of lease liabilities | 1,109,072 | 961,697 |
Outstanding balance of operating lease payments | $ 215,763 | $ 557,677 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases | ||||||
Effective interest rate | 6% | 6% | 6% | |||
Remaining operating lease term | 2 years 4 months 28 days | 2 years 4 months 28 days | 1 year 1 month 28 days | |||
Remaining finance lease term | 2 years 9 months | 2 years 9 months | 1 year 1 month 2 days | |||
Continuing operations | ||||||
Leases | ||||||
Interest expense on finance leases | $ 7,602 | $ 13,612 | $ 15,903 | $ 44,369 | $ 55,844 | $ 46,518 |
Continuing operations | Operating lease for automobiles | ||||||
Leases | ||||||
Operating lease expenses | 564,646 | 417,519 | 1,622,601 | 941,818 | 1,390,767 | 42,306 |
Continuing operations | Operating lease from offices and showroom | ||||||
Leases | ||||||
Operating lease expenses | $ 88,493 | 141,208 | $ 313,753 | 367,690 | 460,209 | 245,376 |
Discontinued operations | ||||||
Leases | ||||||
Interest expense on finance leases | 84,307 | 269,397 | 277,366 | 686,684 | ||
Discontinued operations | Operating lease for automobiles | ||||||
Leases | ||||||
Operating lease expenses | 84,328 | 263,193 | 359,192 | 0 | ||
Discontinued operations | Operating lease from offices and showroom | ||||||
Leases | ||||||
Operating lease expenses | $ 24,055 | $ 67,043 | $ 125,510 | $ 150,900 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Feb. 22, 2021 USD ($) item contract | Dec. 24, 2020 USD ($) item | Sep. 18, 2020 USD ($) | Sep. 18, 2020 CNY (¥) | May 25, 2018 item | Jul. 31, 2020 USD ($) | Jul. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) | Dec. 31, 2022 CNY (¥) item | Sep. 23, 2022 USD ($) item | Mar. 31, 2022 CNY (¥) item | Dec. 24, 2020 CNY (¥) item | |
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Number of contracts entered | contract | 1 | ||||||||||||||
Total number of automobiles | item | 200 | 300 | 200 | 300 | 100 | 200 | |||||||||
Aggregate purchase price | $ 3,200,000 | $ 2,400,000 | $ 1,700,000 | $ 1,500,000 | |||||||||||
Number of automobiles is required to purchase in cash | item | 100 | 100 | 100 | ||||||||||||
Amount of automobiles is required to purchase in cash | $ 1,600,000 | $ 1,600,000 | $ 1,700,000 | ||||||||||||
Number of automobiles is required to purchase commitment | item | 100 | ||||||||||||||
Amount of automobiles is required to purchase commitment | $ 1,600,000 | $ 1,600,000 | 1,700,000 | ||||||||||||
Number of automobiles purchased during the period | item | 100 | ||||||||||||||
Purchase deposit | $ 700,000 | $ 700,000 | |||||||||||||
Maximum contingent liabilities | 46,641 | 800,000 | |||||||||||||
Fair market value of the collateral | 700,000 | ||||||||||||||
Chengdu Industrial Impawn Co | Master Contact | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Loss contingency, amount past due including interest to financial institutions | 882,000 | 1,032,000 | |||||||||||||
Number of guarantors with whom guarantee contacts are signed | item | 7 | ||||||||||||||
Interest and penalty sought | $ 14,330 | ¥ 100,300 | |||||||||||||
Total outstanding including interest and penalty | $ 1,428,000 | ¥ 992,728 | |||||||||||||
Jinkailong | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Total number of automobiles | item | 75 | 75 | |||||||||||||
Maximum contingent liabilities | 4,800,000 | 6,300,000 | |||||||||||||
Fair market value of the collateral | $ 2,800,000 | $ 4,200,000 | |||||||||||||
Percentage of contingent liabilities | 59% | 66% | |||||||||||||
Percentage of equity interest ownership | 35% | 35% | 35% | 35% | |||||||||||
Maximum amount of obligation if liquidated | $ 507,000 | $ 570,000 | ¥ 3,500,000 | ¥ 3,500,000 | |||||||||||
Liabilities (in percent) | 35% | 35% | |||||||||||||
Loss contingency, amount past due including interest to financial institutions | $ 3,500,000 | $ 4,800,000 | |||||||||||||
Loss contingency, amount of interest past due to financial institutions | 281,000 | 286,000 | |||||||||||||
Period for monthly installments over which default amount to be paid | 35 months | ||||||||||||||
Amount of automobile loans to be payable for releasing the frozen bank accounts | $ 94,000 | ¥ 600,000 | |||||||||||||
Amount of automobile loans to be payable for releasing the frozen bank accounts | $ 635,000 | ¥ 4,026,594 | |||||||||||||
Jinkailong | Chengdu Industrial Impawn Co | Settlement agreement | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Contingent liabilities | $ 55,000 | ¥ 350,000 | |||||||||||||
Hunan Ruixi | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Maximum contingent liabilities | 47,000,000,000 | ||||||||||||||
Fair market value of the collateral | $ 1,900,000,000 | ||||||||||||||
Maximum | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Percentage of contingent liabilities | 90% | ||||||||||||||
Maximum | Hunan Ruixi | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Percentage of contingent liabilities | 4.10% | ||||||||||||||
Continuing operations | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Loss contingency accrual, provision | $ 7,284 | $ 15,005 | $ 8,000 | $ 40,504 | |||||||||||
Discontinued operations | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||
Loss contingency accrual, provision | $ 11,140 | $ 716 | $ 158,100 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
SEGMENT INFORMATION | ||||||
Revenues | $ 1,740,920 | $ 3,543,049 | $ 6,323,918 | $ 8,249,033 | $ 11,743,218 | $ 6,167,687 |
Interest expense | 6,975 | 6,975 | 5,872 | 5,893 | 0 | |
Income (loss) before income taxes | (986,269) | 290,773 | (1,922,153) | (5,201,375) | (5,601,579) | (7,467,093) |
Net income (loss) | (971,341) | 155,459 | (1,721,978) | (5,673,230) | (536,624) | (10,360,058) |
Capital expenditure | 1,213,996 | 3,484,051 | 3,223,992 | 2,293,415 | ||
Automobile Transaction and Related Services | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 930,625 | 2,525,893 | 3,353,400 | 6,631,579 | 9,077,761 | 5,257,280 |
Interest income | 467 | 618 | 1,292 | 1,198 | ||
Interest expense | 16,451 | 37,587 | ||||
Depreciation and amortization | 429,419 | 1,425,441 | 1,470,335 | 4,269,755 | ||
Loss from operations | (999,958) | (1,289,884) | (2,854,231) | (3,606,376) | (3,957,831) | (6,126,494) |
Income (loss) before income taxes | (700,414) | (1,069,871) | (2,071,478) | (3,520,754) | (4,682,007) | (7,009,570) |
Net income (loss) | (700,414) | (1,074,410) | (2,071,478) | (3,525,304) | (4,686,573) | (7,024,200) |
Capital expenditure | 1,238,504 | 1,321,226 | 1,240,404 | 3,484,051 | ||
Online ride- hailing platform Services | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 810,295 | 1,017,156 | 2,970,518 | 1,617,454 | 2,665,457 | 903,254 |
Interest income | 64 | 72 | 168 | 785 | ||
Interest expense | 24 | 6,536 | ||||
Depreciation and amortization | 12,128 | 8,058 | 47,594 | 23,135 | ||
Loss from operations | (69,672) | (629,177) | (262,097) | (6,358,532) | (6,962,113) | (1,894,971) |
Income (loss) before income taxes | (56,667) | (792,769) | (253,477) | (6,649,325) | (7,438,693) | (1,703,551) |
Net income (loss) | (56,667) | (792,769) | (253,477) | (6,649,325) | (7,438,693) | (1,703,551) |
Unallocated | ||||||
SEGMENT INFORMATION | ||||||
Interest income | 13 | 81 | 57 | 389 | ||
Depreciation and amortization | 21,638 | 3,179 | 63,298 | 9,580 | ||
Loss from operations | (259,746) | (979,941) | (1,238,849) | (1,813,645) | (3,179,759) | (2,163,082) |
Income (loss) before income taxes | (229,188) | 1,735,058 | 402,802 | 2,549,947 | 3,771,912 | (3,872,915) |
Net income (loss) | (229,188) | 1,735,058 | 402,802 | 2,549,947 | 3,771,912 | (3,872,912) |
Consolidated | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 1,740,920 | 3,543,049 | 6,323,918 | 8,249,033 | 11,743,218 | 6,167,687 |
Interest income | 544 | 771 | 1,517 | 2,372 | ||
Interest expense | 16,475 | 44,123 | ||||
Depreciation and amortization | 463,185 | 1,436,678 | 1,581,227 | 4,302,470 | ||
Loss from operations | (1,329,376) | (2,899,002) | (4,355,177) | (11,778,553) | (14,099,703) | (10,265,832) |
Income (loss) before income taxes | (986,269) | (127,582) | (1,922,153) | (7,620,132) | (8,348,788) | (12,648,012) |
Net income (loss) | (986,269) | (132,121) | (1,922,153) | (7,624,682) | (8,353,354) | (12,662,639) |
Capital expenditure | $ 1,238,504 | 1,321,226 | $ 1,240,404 | 3,484,051 | ||
Discontinued P2P Business | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 7,153 | |||||
Loss from operations | (81,285) | |||||
Income (loss) before income taxes | (61,976) | |||||
Net income (loss) | (61,976) | |||||
Continuing operations | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 1,660,119 | 3,152,592 | 4,913,102 | 2,188,840 | ||
Interest income | 483 | 1,858 | ||||
Interest expense | 5,872 | |||||
Depreciation and amortization | 550,027 | 1,444,606 | 956,400 | 85,530 | ||
Loss from operations | (2,508,292) | (9,596,151) | (11,561,988) | (6,011,429) | ||
Income (loss) before income taxes | 290,773 | (5,201,375) | (5,601,579) | (7,467,093) | ||
Net income (loss) | 286,234 | (5,205,925) | (5,606,145) | (7,475,425) | ||
Capital expenditure | 1,321,226 | 3,484,051 | ||||
Discontinued operations | ||||||
SEGMENT INFORMATION | ||||||
Revenues | 1,882,930 | 5,096,441 | 6,830,116 | 3,978,847 | ||
Interest income | 288 | 514 | ||||
Interest expense | 16,475 | 38,251 | ||||
Depreciation and amortization | 886,651 | 2,857,864 | 170,177 | 183,683 | ||
Loss from operations | (390,710) | (2,182,402) | (2,537,715) | (4,254,403) | ||
Income (loss) before income taxes | (418,355) | (2,418,757) | (2,747,209) | (5,180,919) | ||
Net income (loss) | $ (418,355) | $ (2,418,757) | $ (2,747,209) | $ (5,187,214) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 USD ($) segment | Dec. 31, 2022 USD ($) segment | Mar. 31, 2022 USD ($) segment | Mar. 31, 2021 USD ($) | |
SEGMENT INFORMATION | ||||
Number of reportable segments | segment | 2 | 2 | 2 | |
Total assets | $ 15,538,593 | $ 15,538,593 | $ 19,878,117 | $ 22,303,279 |
Automobile transaction and related services | ||||
SEGMENT INFORMATION | ||||
Total assets | 14,004,591 | 14,004,591 | 12,022,387 | 8,777,138 |
Automobile transaction and related services | Continuing Operations [Member] | ||||
SEGMENT INFORMATION | ||||
Total assets | 7,450,698 | |||
Automobile transaction and related services | Discontinued operations | ||||
SEGMENT INFORMATION | ||||
Total assets | 398,940 | |||
Online ride- hailing platform Services | ||||
SEGMENT INFORMATION | ||||
Total assets | 816,024 | 816,024 | 7,003,867 | 3,254,822 |
Unallocated | ||||
SEGMENT INFORMATION | ||||
Total assets | $ 717,978 | $ 717,978 | $ 851,863 | $ 2,421,681 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |||
Current assets | ||||||||||||
Cash and cash equivalents | $ 1,537,609 | $ 1,185,221 | $ 4,340,529 | |||||||||
Accounts receivable, net, current portion | 204,763 | 418,022 | 502,031 | |||||||||
Inventories | 0 | 286,488 | 127,933 | |||||||||
Finance lease receivables, net, current portion | 170,337 | 314,264 | 541,605 | |||||||||
Prepayments, other receivables and other assets, net | 1,362,817 | 2,713,208 | 2,660,083 | |||||||||
Due from related parties, current portion | 659,299 | 682,335 | 0 | |||||||||
Current assets - discontinued operations | 0 | 2,720,825 | ||||||||||
Total current assets | 3,944,641 | 5,599,538 | 10,893,006 | |||||||||
Property and equipment, net | ||||||||||||
Property and equipment, net | 3,530,196 | 5,658,773 | 3,251,331 | |||||||||
Property and equipment, net - discontinued operations | 0 | 454,408 | ||||||||||
Total property and equipment, net | 3,530,196 | 5,658,773 | 3,705,739 | |||||||||
Other assets | ||||||||||||
Operating lease right-of-use assets, net | 174,262 | 109,621 | 233,751 | |||||||||
Operating lease right-of-use assets, net, related parties | 139,787 | 515,906 | 580,367 | |||||||||
Financing lease right-of-use assets, net | 690,365 | 305,933 | 577,079 | |||||||||
Intangible assets, net | 819,671 | 959,551 | 968,131 | |||||||||
Goodwill | 0 | 135,388 | ||||||||||
Accounts Receivable, Net, Noncurrent | 0 | 69 | 61,943 | |||||||||
Finance lease receivables, net, noncurrent | 50,205 | 92,980 | 473,472 | |||||||||
Due from a related party, noncurrent | 5,351,735 | 6,635,746 | 0 | |||||||||
Other assets - discontinued operations | 0 | 4,674,403 | ||||||||||
Total other assets | 8,063,756 | 8,619,806 | 7,704,534 | |||||||||
Total assets | 15,538,593 | 19,878,117 | 22,303,279 | |||||||||
Current liabilities | ||||||||||||
Borrowings from financial institutions | 22,857 | 145,542 | 0 | |||||||||
Accounts payable | 61,090 | 14,446 | 44,769 | |||||||||
Advances from customers | 120,871 | 120,629 | 110,173 | |||||||||
Accrued expenses and other liabilities | 2,715,209 | 2,444,367 | 2,873,227 | |||||||||
Due to related parties and affiliates | 117,237 | 11,682 | 82,909 | |||||||||
Operating lease liabilities | 104,075 | 50,177 | 109,813 | |||||||||
Operating lease liabilities - related parties | 163,558 | 330,781 | 243,726 | |||||||||
Financing lease liabilities | 402,526 | 304,557 | 358,135 | |||||||||
Derivative liabilities | 572,021 | 2,215,204 | 1,278,926 | |||||||||
Current liabilities - discontinued operations | 485,736 | 528,426 | 11,677,266 | |||||||||
Total current liabilities | 4,765,180 | 6,165,811 | 16,778,944 | |||||||||
Other Liabilities | ||||||||||||
Operating lease liabilities, non-current | 97,350 | 47,910 | 95,886 | |||||||||
Operating lease liabilities, non-current - related parties | 52,205 | 226,896 | 341,549 | |||||||||
Financing lease liabilities, non-current | 289,358 | 1,376 | 218,944 | |||||||||
Deferred tax liability | 42,746 | 46,386 | 44,993 | |||||||||
Other liabilities discontinued operations | 0 | 2,250,393 | ||||||||||
Total other liabilities | 481,659 | 322,568 | 2,951,765 | |||||||||
Total liabilities | 5,246,839 | 6,488,379 | 19,730,709 | |||||||||
Commitments and contingencies | ||||||||||||
Mezzanine Equity (redeemable) | ||||||||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding at March 31, 2022 and 2021, respectively), net of issuance costs of $118,344 | 285,802 | 820,799 | 0 | |||||||||
Stockholders' equity | ||||||||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,178,381 and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)* | 782 | [1] | 630 | [1] | 498 | [2] | ||||||
Additional paid-in capital | 43,339,412 | 42,803,033 | 40,759,807 | |||||||||
Accumulated deficit | (36,323,523) | (34,601,545) | (34,064,921) | |||||||||
Accumulated other comprehensive loss | (1,327,692) | (109,454) | (838,671) | |||||||||
Total Senmiao Technology Limited stockholders' equity | 5,688,979 | 8,092,664 | 5,856,713 | |||||||||
Non-controlling interests | 4,316,973 | 4,476,275 | (3,284,143) | |||||||||
Total equity | 10,005,952 | $ 10,662,480 | $ 12,112,569 | 12,568,939 | $ (1,969,316) | $ (2,560,833) | $ (2,540,300) | 2,572,570 | $ 1,472,357 | |||
Total liabilities, mezzanine equity and equity | $ 15,538,593 | $ 19,878,117 | $ 22,303,279 | |||||||||
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022[2]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Common Stock, Shares, Issued | 7,693,040 | 6,186,783 | 4,978,073 | |
Common Stock, Shares, Outstanding | 7,682,908 | 6,186,783 | 4,978,073 | |
Series A Convertible Preferred Stock [Member] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred Stock, Shares Authorized | 5,000 | 5,000 | 5,000 | |
Preferred Stock, Shares Issued | 1,741 | 5,000 | 0 | |
Preferred Stock, Shares Outstanding | 1,741 | 5,000 | 0 | |
Net of issuance costs | $ 118,344 | $ 118,344 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |
Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares | |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||
Revenues | $ 4,913,102 | $ 2,188,840 |
Cost of revenues | (6,511,031) | (1,984,079) |
Gross profit (loss) | (1,597,929) | 204,761 |
Operating expenses | ||
Selling, general and administrative expenses | (9,525,408) | (5,905,579) |
Recovery of (Provision for) doubtful accounts | (235,279) | (299,658) |
Impairments of inventories | (60,398) | 0 |
Impairments of long-lived assets and goodwill | (142,974) | (10,953) |
Total operating expenses | (9,964,059) | (6,216,190) |
Loss from operations | (11,561,988) | (6,011,429) |
Other income (expense) | ||
Other expense(income), net | (107,444) | 301,269 |
Interest expense | (5,893) | 0 |
Interest expense on finance leases | (55,844) | (46,518) |
Change in fair value of derivative liabilities | 6,951,482 | (1,710,415) |
Issuance cost incurred for issuing series A convertible preferred stock | (821,892) | 0 |
Total other income, net | 5,960,409 | (1,455,664) |
Income (loss) before income taxes | (5,601,579) | (7,467,093) |
Income tax expense | (4,566) | (8,332) |
Net income (loss) from continuing operations | (5,606,145) | (7,475,425) |
Discontinued operation | ||
Loss from discontinued operations, net of applicable income taxes | (2,747,209) | (5,187,214) |
Net gain from deconsolidation of VIEs - discontinued operations | 10,975,101 | 0 |
Net loss attributable to stockholders | 8,227,892 | (5,187,214) |
Net loss | 2,621,747 | (12,662,639) |
Net (income) loss attributable to non-controlling interests from continuing operations | (3,872,645) | 970,019 |
Net loss attributable to non-controlling interests from discontinued operations | 714,274 | 1,332,562 |
Net income (loss) attributable to the Company's stockholders | (536,624) | (10,360,058) |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | 64,470 | (314,669) |
Comprehensive loss | 2,686,217 | (12,977,308) |
less: Total comprehensive loss attributable to noncontrolling interests | 3,142,520 | (2,286,057) |
Total comprehensive income (loss) attributable to stockholders | $ (456,303) | $ (10,691,251) |
Weighted average number of common stock | ||
Basic | shares | 5,726,997 | 3,943,089 |
Diluted | shares | 5,726,997 | 3,943,089 |
Earnings (loss) per share - basic and diluted | ||
Continuing operations - Basic | $ / shares | $ (1.66) | $ (1.65) |
Continuing operations - Diluted | $ / shares | (1.66) | (1.65) |
Discontinued operations - Basic | $ / shares | 1.56 | (0.98) |
Discontinued operations - Diluted | $ / shares | $ 1.56 | $ (0.98) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common stock | Additional paid-in capital | Accumulated deficit Series B Warrants [Member] | Accumulated deficit | Accumulated other comprehensive loss | Non-controlling interest | Total | ||
Beginning balance at Mar. 31, 2020 | $ 290 | $ 27,015,748 | $ (23,704,863) | $ (507,478) | $ (1,331,340) | $ 1,472,357 | |||
Beginning balance (in shares) at Mar. 31, 2020 | [1] | 2,900,882 | |||||||
Net income (loss) | $ 0 | [1] | 0 | (10,360,058) | 0 | (2,302,581) | (12,662,639) | ||
Exercise of Series A warrants into common stock | $ 13 | 683,033 | 0 | 0 | 0 | 683,046 | |||
Exercise of Series A warrants into common stock (in shares) | [1] | 126,609 | |||||||
Exercise of Placement warrants into common stock | $ 1 | (1) | $ 0 | 0 | 0 | 0 | |||
Exercise of Placement warrants into common stock (in shares) | [1] | 13,335 | |||||||
Issuance of common stock and warrants in an underwritten direct offerings, net of issuance costs | $ 120 | 5,261,177 | 0 | 0 | 0 | 5,261,297 | |||
Issuance of common stock and warrants in an underwritten direct offerings, net of issuance costs (in Shares) | [1] | 1,200,000 | |||||||
Issuance of common stock pursuant to exercise of underwriters' over-allotment option, net of issuance costs | $ 18 | 836,982 | 0 | 0 | 0 | 837,000 | |||
Issuance of common stock pursuant to exercise of underwriters' over-allotment option, net of issuance costs (in Shares) | [1] | 180,000 | |||||||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs | $ 51 | 5,743,854 | 0 | 0 | 0 | 5,743,905 | |||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs (in Shares) | [1] | 507,247 | |||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | $ 5 | 444,995 | 0 | 0 | 0 | 445,000 | |||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs (in Shares) | [1] | 50,000 | |||||||
Acquisition of business entities | $ 0 | [1] | 0 | 0 | 0 | 333,254 | 333,254 | ||
Fair value of warrants allocated to derivative liabilities | 0 | [1] | (995,822) | 0 | 0 | 0 | (995,822) | ||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | 1,769,841 | 0 | 0 | 0 | 1,769,841 | |||
Issuance of restricted stock units (in shares) | [1] | 0 | |||||||
Foreign currency translation adjustment | $ 0 | [1] | 0 | 0 | (331,193) | 16,524 | (314,669) | ||
Ending balance at Mar. 31, 2021 | $ 498 | 40,759,807 | (34,064,921) | (838,671) | (3,284,143) | 2,572,570 | |||
Ending balance (in shares) at Mar. 31, 2021 | [2] | 4,978,073 | |||||||
Net income (loss) | $ 0 | [2] | 0 | (6,248,615) | 0 | (1,122,021) | (7,370,636) | ||
Exercise of Series A warrants into common stock | $ 1 | 22,014 | 0 | 0 | 0 | 22,015 | |||
Exercise of Series A warrants into common stock (in shares) | [2] | 4,403 | |||||||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs | $ 55 | 2,208,594 | 0 | 0 | 0 | 2,208,649 | |||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs (in Shares) | [2] | 553,192 | |||||||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | [2] | 45,674 | 0 | 0 | 0 | 45,674 | ||
Foreign currency translation adjustment | 0 | [2] | 0 | 0 | (7,237) | (11,335) | (18,572) | ||
Ending balance at Jun. 30, 2021 | $ 554 | 43,036,089 | (40,313,536) | (845,908) | (4,417,499) | (2,540,300) | |||
Ending balance (in shares) at Jun. 30, 2021 | [2] | 5,535,668 | |||||||
Beginning balance at Mar. 31, 2021 | $ 498 | 40,759,807 | (34,064,921) | (838,671) | (3,284,143) | 2,572,570 | |||
Beginning balance (in shares) at Mar. 31, 2021 | [2] | 4,978,073 | |||||||
Net income (loss) | (7,624,682) | ||||||||
Foreign currency translation adjustment | 48,458 | ||||||||
Ending balance at Dec. 31, 2021 | $ 618 | 42,436,441 | (39,738,151) | (778,437) | (3,889,787) | (1,969,316) | |||
Ending balance (in shares) at Dec. 31, 2021 | [2] | 6,178,381 | |||||||
Beginning balance at Mar. 31, 2021 | $ 498 | 40,759,807 | (34,064,921) | (838,671) | (3,284,143) | 2,572,570 | |||
Beginning balance (in shares) at Mar. 31, 2021 | [2] | 4,978,073 | |||||||
Net income (loss) | $ 0 | [1] | 0 | (536,624) | 0 | 3,158,371 | 2,621,747 | ||
Exercise of Series A warrants into common stock | $ 4 | 22,011 | 0 | 0 | 0 | 22,015 | |||
Exercise of Series A warrants into common stock (in shares) | [1] | 4,403 | |||||||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs | $ 56 | 2,208,593 | 0 | 0 | 0 | 2,208,649 | |||
Issuance of common stock and warrants in a registered direct offerings, net of issuance costs (in Shares) | [1] | 553,192 | |||||||
Fair value of derivative liabilities upon exercise of warrants | $ 0 | [1] | 45,674 | 0 | 0 | 0 | 45,674 | ||
Issuance of common stock for consulting service | $ 10 | 652,990 | 0 | 0 | 0 | 653,000 | |||
Issuance of common stock for consulting service (in shares) | [1] | 100,000 | |||||||
Issuance of common stock in purchase of XXTX's remaining NCI | $ 53 | (1,357,637) | 0 | (21,762) | 1,379,346 | 0 | |||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | [1] | 533,167 | |||||||
Issuance of restricted stock units | $ 9 | 104,991 | 0 | 0 | 0 | 105,000 | |||
Issuance of restricted stock units (in shares) | [1] | 9,546 | |||||||
Foreign currency translation adjustment | $ 0 | [1] | 0 | 0 | 80,321 | (15,851) | 64,470 | ||
Deconsolidation of discontinued operation | 0 | [1] | 0 | 0 | 670,658 | 3,605,156 | 4,275,814 | ||
Recognition of non-controlling interest from acquired equity interest of Sichuan Senmiao upon termination of the VIE agreement | $ 0 | [1] | 366,604 | 0 | 0 | (366,604) | $ 0 | ||
Additional shares of common stock round up adjustment due to retroactive effect of 1-for-10 reverse stock split | 8,402 | [1] | 8,402 | ||||||
Ending balance at Mar. 31, 2022 | $ 630 | 42,803,033 | (34,601,545) | (109,454) | 4,476,275 | $ 12,568,939 | |||
Ending balance (in shares) at Mar. 31, 2022 | [2] | 6,186,783 | |||||||
Beginning balance at Jun. 30, 2021 | $ 554 | 43,036,089 | (40,313,536) | (845,908) | (4,417,499) | (2,540,300) | |||
Beginning balance (in shares) at Jun. 30, 2021 | [2] | 5,535,668 | |||||||
Net income (loss) | $ 0 | [2] | 0 | 419,926 | 0 | (541,851) | (121,925) | ||
Issuance of restricted stock units | $ 1 | 104,999 | 0 | 0 | 0 | 105,000 | |||
Issuance of restricted stock units (in shares) | [2] | 9,546 | |||||||
Foreign currency translation adjustment | $ 0 | [2] | 0 | 0 | 2,407 | (6,015) | (3,608) | ||
Ending balance at Sep. 30, 2021 | $ 555 | 43,141,088 | (39,893,610) | (843,501) | (4,965,365) | (2,560,833) | |||
Ending balance (in shares) at Sep. 30, 2021 | [2] | 5,545,214 | |||||||
Net income (loss) | $ 0 | [2] | 0 | 155,459 | 0 | (287,580) | (132,121) | ||
Issuance of common stock for consulting service | $ 10 | 652,990 | 0 | 0 | 0 | 653,000 | |||
Issuance of common stock for consulting service (in shares) | [2] | 100,000 | |||||||
Issuance of common stock in purchase of XXTX's remaining NCI | $ 53 | (1,357,637) | 0 | (21,762) | 1,379,346 | 0 | |||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | [2] | 533,167 | |||||||
Foreign currency translation adjustment | $ 0 | [2] | 0 | 0 | 86,826 | (16,188) | 70,638 | ||
Ending balance at Dec. 31, 2021 | $ 618 | 42,436,441 | (39,738,151) | (778,437) | (3,889,787) | (1,969,316) | |||
Ending balance (in shares) at Dec. 31, 2021 | [2] | 6,178,381 | |||||||
Beginning balance at Mar. 31, 2022 | $ 630 | 42,803,033 | (34,601,545) | (109,454) | 4,476,275 | 12,568,939 | |||
Beginning balance (in shares) at Mar. 31, 2022 | [2] | 6,186,783 | |||||||
Net income (loss) | $ 0 | [2] | 0 | 332,853 | 0 | (88,933) | 243,920 | ||
Foreign currency translation adjustment | 0 | [2] | 0 | 0 | (783,838) | (1,815) | (785,653) | ||
Ending balance at Jun. 30, 2022 | $ 644 | 42,888,382 | (34,268,692) | (893,292) | 4,385,527 | 12,112,569 | |||
Ending balance (in shares) at Jun. 30, 2022 | [2] | 6,313,614 | |||||||
Beginning balance at Mar. 31, 2022 | $ 630 | 42,803,033 | (34,601,545) | (109,454) | 4,476,275 | 12,568,939 | |||
Beginning balance (in shares) at Mar. 31, 2022 | [2] | 6,186,783 | |||||||
Net income (loss) | (1,922,153) | ||||||||
Foreign currency translation adjustment | $ (1,177,365) | ||||||||
Additional shares of common stock round up adjustment due to retroactive effect of 1-for-10 reverse stock split | 8,402 | ||||||||
Ending balance at Dec. 31, 2022 | $ 782 | 43,339,412 | (36,323,523) | (1,327,692) | 4,316,973 | $ 10,005,952 | |||
Ending balance (in shares) at Dec. 31, 2022 | [2] | 7,693,040 | |||||||
Beginning balance at Jun. 30, 2022 | $ 644 | 42,888,382 | (34,268,692) | (893,292) | 4,385,527 | 12,112,569 | |||
Beginning balance (in shares) at Jun. 30, 2022 | [2] | 6,313,614 | |||||||
Net income (loss) | $ 0 | [2] | 0 | (1,083,490) | 0 | (96,314) | (1,179,804) | ||
Foreign currency translation adjustment | 0 | [2] | 0 | 0 | (823,291) | 103,371 | (719,920) | ||
Ending balance at Sep. 30, 2022 | $ 782 | 43,337,879 | (35,352,182) | (1,716,583) | 4,392,584 | 10,662,480 | |||
Ending balance (in shares) at Sep. 30, 2022 | [2] | 7,682,908 | |||||||
Net income (loss) | $ 0 | [2] | 0 | (971,341) | 0 | (14,928) | (986,269) | ||
Fair value of derivative liabilities upon exercise of warrants | 0 | [2] | 1,533 | 0 | 0 | 0 | 1,533 | ||
Foreign currency translation adjustment | 0 | [2] | 0 | 0 | 388,891 | (60,683) | 328,208 | ||
Ending balance at Dec. 31, 2022 | $ 782 | $ 43,339,412 | $ (36,323,523) | $ (1,327,692) | $ 4,316,973 | $ 10,005,952 | |||
Ending balance (in shares) at Dec. 31, 2022 | [2] | 7,693,040 | |||||||
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022[2]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities: | ||||
Net income (loss) | $ (1,922,153) | $ (7,624,682) | $ 2,621,747 | $ (12,662,639) |
Net loss from discontinued operations | 0 | (2,418,757) | 8,227,892 | (5,187,214) |
Net loss from continuing operations | (1,922,153) | (5,205,925) | (5,606,145) | (7,475,425) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization of property and equipment | 873,480 | 704,741 | 956,400 | 85,530 |
Stock compensation expense | 0 | 653,000 | 653,000 | 445,000 |
Issuance cost incurred for issuing series A convertible preferred stock | 0 | 821,892 | 821,892 | 0 |
Amortization of right-of-use assets | 579,209 | 635,036 | 955,443 | 398,292 |
Amortization of intangible assets | 128,538 | 104,829 | 160,831 | 107,765 |
Provision for doubtful accounts, net of recovery | 470,982 | 125,709 | 235,279 | 299,658 |
Impairments of inventories | 3,085 | 0 | 60,398 | 0 |
Impairments of long-lived assets | 0 | 142,516 | 142,974 | 10,953 |
Gain on disposal of equipment | (596,564) | 0 | 0 | (425) |
Change in fair value of derivative liabilities | (1,641,650) | (5,185,309) | (6,951,482) | 1,710,415 |
Change in operating assets and liabilities | ||||
Accounts receivable | 177,273 | 8,693 | 4,456 | 162,828 |
Inventories | 322,689 | (93,172) | (260,464) | 172,626 |
Prepayments, other receivables and other assets | 1,115,661 | 683,439 | 28,254 | (1,366,724) |
Finance lease receivables | 187,695 | 556,021 | 634,103 | 348,919 |
Accounts payable | 48,108 | 76,877 | (31,434) | (6,067) |
Advances from customers | 10,048 | (1,812) | 6,678 | 47,895 |
Income tax payable | 0 | (168) | ||
Accrued expenses and other liabilities | 639,657 | (664,848) | (377,965) | 2,123,010 |
Operating lease liabilities | (37,872) | (113,238) | (240,051) | (64,701) |
Operating lease liabilities - related parties | (99,023) | (124,143) | (228,281) | (195,519) |
Net cash provided by (used in) operating activities from continuing operations | 249,287 | (6,875,694) | (9,036,114) | (3,196,138) |
Net cash used in operating activities from discontinued operations | 0 | 416,522 | (123,167) | (739,929) |
Net Cash Provided by (Used in) Operating Activities | 249,287 | (6,459,172) | (9,159,281) | (3,936,067) |
Cash Flows from Investing Activities: | ||||
Purchases of property and equipment | (1,213,996) | (3,484,051) | (3,223,992) | (2,293,415) |
Purchases of intangible assets | (26,408) | (76,637) | (141,730) | (25,347) |
Cash released upon termination of a VIE | (193) | 0 | ||
Cash acquired from XXTX, net of cash paid to XXTX | 0 | 8,065 | ||
Net cash provided by (used in) investing activities from continuing operations | 287,146 | (3,560,688) | (3,365,915) | (2,310,697) |
Net cash used in investing activities from discontinued operations | 0 | 22,586 | (111,210) | (200,165) |
Net Cash Provided by (Used in) Investing Activities | 287,146 | (3,538,102) | (3,477,125) | (2,510,862) |
Cash Flows from Financing Activities: | ||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | 0 | 5,771,053 | 5,771,053 | 5,743,905 |
Net proceeds from issuance of common stock and warrants in an underwritten public offering | 0 | 5,261,297 | ||
Net proceeds from issuance of common stock upon warrants exercised | 0 | 22,015 | 22,015 | 683,046 |
Net proceeds from issuance of series A convertible preferred stock and warrants in a private placement offering | 0 | 4,369,937 | 4,369,937 | 0 |
Net proceeds from exercise of underwriters' over-allotment option | 0 | 837,000 | ||
Borrowings from a financial institution | 183,390 | 0 | ||
Loan to related parties | 0 | (232,751) | 0 | (101,142) |
Repayments to related parties and affiliates | (117,761) | (37,445) | ||
Repayments of current borrowings from financial institutions | (111,615) | (529,226) | (39,613) | 0 |
Principal payments of finance lease liabilities | (349,140) | (333,480) | (433,611) | (2,230,765) |
Net cash provided by (used in) financing activities from continuing operations | (101,372) | 9,617,206 | 9,755,410 | 10,155,896 |
Net cash used in financing activities from discontinued operations | 0 | (1,439,919) | 0 | 103,881 |
Net Cash Provided by (Used in) Financing Activities | (101,372) | 8,177,287 | 9,755,410 | 10,259,777 |
Effect of exchange rate changes on cash and cash equivalents | (82,673) | 173,623 | (381,858) | (208,800) |
Net increase (decrease) in cash and cash equivalents | 352,388 | (1,646,364) | (3,262,854) | 3,604,048 |
Cash and cash equivalents, beginning of the period | 1,185,221 | 4,448,075 | 4,448,075 | 844,027 |
Cash and cash equivalents, end of the period | 1,537,609 | 2,801,711 | 1,185,221 | 4,448,075 |
Less: Cash and cash equivalents from discontinued operations | 0 | (833,060) | 0 | (107,546) |
Cash and cash equivalents from continuing operations, end of period | 1,537,609 | 1,968,651 | 1,185,221 | 4,340,529 |
Supplemental Cash Flow Information | ||||
Cash paid for interest expense | 6,975 | 44,123 | 5,893 | 45,764 |
Non-cash Transaction in Investing and Financing Activities | ||||
Recognition of right-of-use assets and lease liabilities | 917,786 | 196,671 | 273,555 | 3,785,526 |
Recognition of right-of-use assets and lease liabilities, related parties | 118,030 | 180,973 | 181,620 | 0 |
Recognition of other receivables from Jinkailong upon deconsolidation | 7,298,208 | 0 | ||
Acquisition of equipment through prepayment and financing lease receivables offset | 0 | 941,263 | ||
Allocation of fair value of derivative liabilities for issuance of common stock | 0 | 7,933,434 | 7,932,341 | 997,193 |
Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised | 0 | 45,674 | 45,674 | 1,771,213 |
Acquisition of XXTX with payables | 0 | 317,835 | ||
Acquisition of XXTX's minority interest with issuance of common stock | $ 0 | $ 1,972,717 | $ 1,972,717 | $ 0 |
ORGANIZATION AND PRINCIPAL AC_6
ORGANIZATION AND PRINCIPAL ACTIVITIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
ORGANIZATION AND PRINCIPAL ACTIVITIES | SENMIAO TECHNOLOGY LIMITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Senmiao Technology Limited (the “Company”) is a U.S. holding company incorporated in the State of Nevada on June 8, 2017. The Company operates its business in two segments: (i) automobile transaction and related services focusing on the online ride-hailing industry in the People’s Republic of China (“PRC” or “China”) through the Company’s wholly owned subsidiaries, Sichuan Senmiao Yicheng Assets Management Co., Ltd., formerly named Yicheng Financial Leasing Co., Ltd., a PRC limited liability company (“Yicheng”), Chengdu Corenel Technology Co., Ltd., a PRC limited liability company (“Corenel”), and its majority owned subsidiaries, Chengdu Jiekai Yunli Technology Co., Ltd. (“Jiekai”), and Hunan Ruixi Financial Leasing Co., Ltd., a PRC limited liability company (“Hunan Ruixi”), and its equity investee company (an entity 35% owned by Hunan Ruixi) and former variable interest entity (“VIE”), Sichuan Jinkailong Automobile Leasing Co., Ltd., a PRC limited liability company (“Jinkailong”). (ii) online ride-hailing platform services through its own platform (known as Xixingtianxia) as described further below, since October 2020, through Hunan Xixingtianxia Technology Co., Ltd., a PRC limited liability company (“XXTX”), which is a wholly owned subsidiary of Sichuan Senmiao Zecheng Business Consulting Co., Ltd. (“Senmiao Consulting”), a PRC limited liability company and wholly-owned subsidiary of the Company. The Company’s ride hailing platform enables qualified ride-hailing drivers to provide transportation services in Chengdu, Changsha, Guangzhou, and other 23 cities in China as of the filing date of these unaudited condensed consolidated financial statements. Hunan Ruixi holds a business license for automobile sales and financial leasing and has been engaged in automobile financial leasing services and automobile sales since March 2019 and January 2019, respectively. Yicheng holds a business license for automobiles sale and has been engaged in automobile sales since June 2019. Yicheng used to have a license of financial leasing, which has been terminated since June 2022. The Company also has been engaged in operating leasing services through Hunan Ruixi and its equity investee company, Jinkailong since March 2019. Jinkailong used to facilitate automobile sales and financing transactions for its clients, who are primarily ride-hailing drivers and provides them operating lease and relevant after-transaction services. On September 11, 2020, Senmiao Consulting entered into an investment agreement relating to XXTX with all the original shareholders of XXTX (the “XXTX Investment Agreement”), pursuant to which Senmiao Consulting would make an investment of RMB3.16 million (approximately $0.44 million) in XXTX in cash and obtain a 51% equity interest. As of the filing date of these unaudited condensed consolidated financial statements, the Company had remitted the full amount of investment to XXTX pertained to above mentioned XXXT Investment Agreement. On October 23, 2020, the registration procedures for the change in shareholders and registered capital were completed and XXTX became a majority owned subsidiary of Senmiao Consulting. On February 5, 2021, Senmiao Consulting and all the original shareholders of XXTX entered into a supplementary agreement related to XXTX’s Investment agreement (the “XXTX Increase Investment Agreement”). Under the XXTX Increase Investment Agreement, all the shareholders of XXTX agreed to increase the total registered capital of XXTX to RMB50.8 million (approximately $7.14 million). Senmiao Consulting shall pay another investment amounted to RMB36.84 million (approximately $5.18 million) in cash in exchange of additional 27.74% of XXTX’s equity interest. As of the filing date of these unaudited condensed consolidated financial statements, the Company had remit approximately RMB36.60 million ($5.30 million) to XXTX pertained to above mentioned XXTX Increase Investment Agreement. On October 22, 2021, the Company, Senmiao Consulting, XXTX and its other shareholders further entered into a Share Swap Agreement (the “Share Swap Agreement”), pursuant to which the Company, through Senmiao Consulting, purchased all of the remaining equity interests the original shareholders hold in XXTX at a total purchase price of $3.5 million, payable in the Company’s shares of common stock, par value $0.0001 per share at a per share price of the average closing price of a share of common stock reported on the Nasdaq Capital Market for ten (10) trading days immediately preceding the date of the Share Swap Agreement. On November 9, 2021, the issuance of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock for this transaction has been completed and on December 31, 2021, the registration procedures for the change in shareholders was completed. As a result, XXTX became a wholly-owned subsidiary of Senmiao Consulting. As of the filing date of these unaudited condensed consolidated financial statements, Senmiao Consulting has made a cumulative capital contribution of RMB39.76 million (approximately $5.76 million) to XXTX and the remaining amount is expected to be paid before December 31, 2025. As of December 31, 2022, XXTX had ten wholly owned subsidiaries and only one of them had operations. In December 2020, Senmiao Consulting formed Corenel, with a registered capital of RMB10 million (approximately $1.6 million) in Chengdu City, Sichuan Province. Corenel is engaged in automobile operating leases since March 2021. In December 2020, Hunan Ruixi and a third party jointly formed a subsidiary, Chengdu Xichuang Technology Service Co., Ltd. (“Xichuang”), with a registered capital of RMB200,000 (approximately $32,000) in Chengdu City, Sichuan Province. Hunan Ruixi holds 70% of the equity interests of Xichuang. In August 2021, Hunan Ruixi signed an equity transfer agreement with another shareholder of Xichuang. Pursuant to the equity transfer agreement, another shareholder of Xichuang would transfer 30% of its shares to Hunan Ruixi for a consideration of zero. However, in November 2021, Xichuang was dissolved. The dissolution of Xichuang did not have a material impact to the Company’s financial results. In April 2021, the Company formed Senmiao Technology (Hong Kong)., Ltd. (“Senmiao HK”), with a registered capital of $10,000 in Hongkong. The Company holds 99.99% of the equity interests of Senmiao HK. As of the filing date of these unaudited condensed consolidated financial statements, Senmiao HK has no operations. In March 2022, Corenel and another company in Chengdu formed Jiekai, with a registered capital of RMB500,000 (approximately $80,000). Corenel holds 51% of the equity interests of Jiekai. Jiekai is engaged in automobile operating lease business since April 2022. The following diagram illustrates the Company’s corporate structure, including its subsidiaries and equity investee company, as of the filing date of these unaudited condensed consolidated financial statements: Former VIE Agreements with Sichuan Senmiao Senmiao Consulting, Sichuan Senmiao Ronglian Technology Co., Ltd. (“Sichuan Senmiao”) and all the shareholders of Sichuan Senmiao (the “Sichuan Senmiao Shareholders”) entered into an Equity Interest Pledge Agreement, an Exclusive Business Cooperation Agreement, an Exclusive Option Agreement, Power of Attorneys, and Timely Report Agreements in September 2017 (collectively, the “Sichuan Senmiao VIE Agreements”). For the details of such agreements, please refer to the audited financial statements contained in the annual report on Form 10-K filed with the SEC on July 15, 2022. According to the VIE Agreements, Senmiao Consulting was the primary beneficiary of Sichuan Senmiao and the financial statements of Sichuan Senmiao are consolidated in the accompanying unaudited condensed consolidated financial statements. Sichuan Senmiao suffered accumulated loss of approximately $18.0 million as of March 31, 2022 with shareholders’ deficiency of $7.6 million. Due to such loss from Sichuan Senmiao, on March 23, 2022, Senmiao Consulting and other shareholders with 94.5% equity interests of Sichuan Senmiao terminated the VIE Agreements and acquired Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. Sichuan Senmiao became the majority owned subsidiary of Senmiao Consulting accordingly. The termination of the Sichuan Senmiao VIE Agreements had no significant impact on the consolidated financial statements. Former Voting Agreements with Jinkailong’s Other Shareholders Hunan Ruixi entered into two voting agreements signed in August 2018 and February 2020, respectively, as amended (the “Voting Agreements”), with Jinkailong and other Jinkailong’s shareholders holding an aggregate of 65% equity interests. Pursuant to the Voting Agreements, all other Jinkailong’s shareholders will vote in concert with Hunan Ruixi on all fundamental corporate transactions in the event of a disagreement for periods of 20 years and 18 years, respectively, ending on August 25, 2038. On March 31, 2022, Ruixi entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Voting Agreements mentioned above was terminated as of the date of the Termination Agreement. The termination will not impair the past and future legitimate rights and interests of all parties in Jinkailong. As of December 31, 2022, the parties no longer maintain a concerted action relationship with respect to the decision required to take concerted action at its shareholders meetings as stipulated in the Voting Agreements. Each party shall independently express opinions and exercise various rights such as voting rights and perform relevant obligations in accordance with the provisions of laws, regulations, normative documents and the Jinkailong’s articles of association. As a result of the Termination Agreement, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s Consolidated Financial Statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of December 31, 2022 and March 31, 2022, the paid-in capital of Jinkailong is zero. In connection with the deconsolidation and in accordance with ASC 810-10-40-5, the Company recorded a gain on deconsolidation of Jinkailong on March 31, 2022 as follows: March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 In addition, the Company recognized $7,298,208 of related party receivable from Jinkailong as of March 31, 2022, of which, $6,635,746 is required to be repaid over a period from April 2023 to December 2026 based on the agreement between the Company and Jinkailong, classified as due from related parties, noncurrent. Besides, the deconsolidation also excluded $31,263 receivables due from related parties, which was recorded by Jinkailong. As of December 31, 2022, the Company has outstanding balance due from Jinkailong amounted to $5,992,152, net of allowance, of which, $5,351,735 is to be repaid over a period from January 2024 to December 2026, classified as due from related party, noncurrent (refer to Note 4). The Company determined that the deconsolidation of Jinkailong represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45 as discussed in note 4. Former VIE Agreements with Youlu On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The terms of Youlu VIE Agreements were similar to the Sichuan Senmiao VIE Agreements. According to the Youlu VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the consolidated financial statements. After Jinkailong and Youlu were deconsolidated from the Company’s consolidated financial statements at March 31, 2022, there were no assets and liabilities from the Company’s former VIEs included in the Company’s financial statements going forward. Net revenue, loss from operations and net loss of the former VIEs that were included in the Company’s unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2022 and 2021 are as follows: For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021* (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net revenue from continuing operations $ — $ 152 $ — $ 23,380 Net revenue from discontinued operations $ — $ 1,882,930 $ — $ 5,096,441 Loss from operations from continuing operations $ — $ (57,616) $ — $ (107,802) Loss from operations from discontinued operations $ — $ (390,710) $ — $ (2,182,402) Net loss from continuing operations attributable to stockholders $ — $ (57,141) $ — $ (105,760) Net loss from discontinued operations attributable to stockholders — (309,583) — (1,789,880) Net loss attributable to stockholders $ — $ (366,724) $ — $ (1,895,640) * Net revenue, loss from operations and net loss attributable to stockholders for the three and nine months ended December 31, 2021 were retroactively restated for comparative purpose. | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Senmiao Technology Limited (the “Company”) is a U.S. holding company incorporated in the State of Nevada on June 8, 2017. The Company operates its business in two segments: (i) (ii) Xixingtianxia) Hunan Ruixi holds a business license for automobile sales and financial leasing and has been engaged in automobile financial leasing services and automobile sales since March 2019 and January 2019, respectively. Jinkailong facilitated automobile sales and financing transactions for its clients, who are primarily ride-hailing drivers and provides them operating lease and relevant after-transaction services. Yicheng holds a business license for automobiles sale and has been engaged in automobile sales since June 2019. Yicheng used to have a license of financial leasing, which was terminated since June 2022. The Company also has been engaged in operating leasing services through Jinkailong and Hunan Ruixi since March 2019. On September 11, 2020, Senmiao Consulting entered into an investment agreement relating to XXTX with all the original shareholders of XXTX (the “XXTX Investment Agreement”), pursuant to which Senmiao Consulting would make an investment of RMB3.16 million (approximately $0.5 7.8 As of the filing date of these consolidated financial statements, Senmiao Consulting has made a cumulative capital contribution of RMB36.86 million (approximately $5.81 million) to XXTX and the remaining amount is expected to be paid before December 31, 2025. As of March 31, 2022, XXTX had eight wholly owned subsidiaries and only one of them has operations. In December 2020, Senmiao Consulting formed Corenel, with a registered capital of RMB10 million (approximately $1.6 million) in Chengdu City, Sichuan Province. Corenel is engaged in automobile operating leases since March 2021. In December 2020, Hunan Ruixi and a third party jointly formed a subsidiary, Chengdu Xichuang Technology Service Co., Ltd. (“Xichuang”), with a registered capital of RMB200,000 (approximately $32,000) in Chengdu City, Sichuan Province. Hunan Ruixi holds 70% of the equity interests of Xichuang. In August 2021, Hunan Ruixi signed an equity transfer agreement with another shareholder of Xichuang. Pursuant to the equity transfer agreement, another shareholder of Xichuang would transfer 30% of its shares to Hunan Ruixi for free. However, in November 2021, Xichuang was dissolved. The dissolution of Xichuang did not have a material impact to the Company’s financial results. In April 2021, the Company formed Senmiao Technology (Hong Kong)., Ltd. (“Senmiao HK”), with a registered capital of $10,000 in Hongkong. The Company holds 99.99% of the equity interests of Senmiao HK. As of the filing date of these consolidated financial statements, Senmiao HK has no operations. In March 2022, Corenel and another company in Chengdu formed Chengdu Jiekai Technology Ltd. (“Jiekai”), with a registered capital of RMB500,000 (approximately $80,000). Corenel holds 51% of the equity interests of Jiekai. Jiekai is engaged in automobile operating lease business. The following diagram illustrates the Company’s corporate structure, including its subsidiaries and equity investee company, as of the filing date of these consolidated financial statements: Former VIE Agreements with Sichuan Senmiao Senmiao Consulting, Sichuan Senmiao and all the shareholders of Sichuan Senmiao (the “Sichuan Senmiao Shareholders”) entered into an Equity Interest Pledge Agreement, an Exclusive Business Cooperation Agreement, an Exclusive Option Agreement, Power of Attorneys, and Timely Report Agreements in September 2017 (collectively, the “Sichuan Senmiao VIE Agreements”). For the details of such agreements, please refer to the audited financial statements contained in the annual report on Form 10-K filed with the SEC on July 8, 2021. According to the VIE Agreements, Senmiao Consulting was the primary beneficiary of Sichuan Senmiao and the financial statements of Sichuan Senmiao are consolidated in the accompanying consolidated financial statements. On March 23, 2022, Senmiao Consulting and other shareholders with 94.5% equity interests of Sichuan Senmiao terminated the VIE Agreements and acquired Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. Sichuan Senmiao became the majority owned subsidiary of Senmiao Consulting accordingly. The termination of the Sichuan Senmiao VIE Agreements have no significant impact on the consolidated financial statements. Former Voting Agreements with Jinkailong’s Other Shareholders Hunan Ruixi entered into two voting agreements signed in August 2018 and February 2020, respectively, as amended (the “Voting Agreements”), with Jinkailong and other Jinkailong’s shareholders holding an aggregate of 65% equity interests. Pursuant to the Voting Agreements, all other Jinkailong’s shareholders will vote in concert with Hunan Ruixi on all fundamental corporate transactions in the event of a disagreement for periods of 20 years and 18 years, respectively, ending on August 25, 2038. On March 31, 2022, Ruixi entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Voting Agreements mentioned above shall be terminated as of the date of the Termination Agreement. The termination will not impair the past and future legitimate rights and interests of all parties in Jinkailong. As of March 31, 2022, the parties no longer maintain a concerted action relationship with respect to the decision required to take concerted action at its shareholders meetings as stipulated in the Voting Agreements. Each party shall independently express opinions and exercise various rights such as voting rights and perform relevant obligations in accordance with the provisions of laws, regulations, normative documents and the Jinkailong’s articles of association (refer to Note 5). As a result of the Termination Agreement, Jinkailong ceased to be a VIE to Ruixi. The Company, through Ruixi, retains its 35% equity interests in Jinkailong. Former VIE Agreements with Youlu On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The term of Youlu is similar to the Youlu VIE Agreements with Sichuan Senmiao as described above. According to the VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the consolidated financial statements. Total assets and total liabilities of the Company’s VIEs included in the Company’s consolidated financial statements as of March 31, 2022 and 2021 are as follows after Jinkailong and Youlu deconsolidated from the Company’s consolidated financial statements at March 31, 2022: March 31, March 31, 2022 2021 Current assets: Cash and cash equivalents $ — $ 27,229 Accounts receivable, net, current portion — — Prepayments, other receivables and other assets, net — 135 Other receivable- intercompany — 1,718,343 Current assets - discontinued operations (1) — 2,995,558 Total current assets — 4,741,265 Property and equipment, net: Property and equipment, net — — Property and equipment, net - discontinued operations — 454,228 Total property and equipment, net — 454,228 Other assets: Operating lease right-of-use assets, net, related parties — 9,896 Other assets - discontinued operations — 4,674,403 Total other assets — 4,684,299 Total assets $ — $ 9,879,792 Current liabilities: Accrued expenses and other liabilities $ — $ 581,126 Other payable - intercompany — 2,715,847 Due to related parties and affiliates — 82,908 Operating lease liabilities - related parties — 4,989 Current liabilities - discontinued operations (2) — 15,896,580 Total current liabilities — 19,281,450 Other liabilities: Operating lease liabilities, non-current - related parties — 3,850 Other liabilities - discontinued operations — 2,250,393 Total other liabilities — 2,254,243 Total liabilities $ — $ 21,535,693 (1) Includes intercompany receivables of $0 and intercompany payables of $274,731 as of March 31, 2022 and March 31, 2021, respectively. (2) Includes intercompany payables of $0 and $4,203,454 as of March 31, 2022 and March 31, 2021, respectively. Net revenue, loss from operations and net loss of the VIEs that were included in the Company’s consolidated financial statements for the years ended March 31, 2022 and 2021 are as follows: For the Years Ended March 31, 2022 2021* Net revenue from continuing operations $ 32,817 $ — Net revenue from discontinued operations $ 6,830,116 $ 3,978,847 Loss from operations from continuing operations $ (179,068) $ (532,455) Loss from operations from discontinued operations $ (2,537,715) $ (4,254,403) Net loss from continuing operations attributable to stockholders $ (175,283) $ (530,983) Net loss from discontinued operations attributable to stockholders $ (2,032,934) $ (3,722,648) Net loss attributable to stockholders $ (2,208,218) $ (4,253,630) * Net revenue, loss from operations and net loss attributable to stockholders for the year ended March 2021 were retroactively restated for comparative purpose. |
GOING CONCERN_2
GOING CONCERN | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
GOING CONCERN | ||
GOING CONCERN | 2. GOING CONCERN In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized to finance the working capital requirements of the Company. The Company’s business is capital intensive. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) the net loss of approximately $1.9 million for the nine months ended December 31, 2022; (2) accumulated deficit of approximately $36.3 million as of December 31, 2022; (3) the working capital deficit of approximately $0.8 million as of December 31, 2022; and (4) two purchase commitments of approximately $2.4 million for 200 automobiles. As of the filing date of these unaudited condensed consolidated financial statements, the Company has entered into two purchase contracts with two automobile dealers to purchase a total of 300 automobiles in the amount of approximately $4.7 million, of which, 100 automobiles of approximately $1.6 million have been purchased in cash and delivered to the Company, and approximately $0.7 million has been remitted as purchase deposit. The remaining purchase commitment of approximately $2.4 million of which approximately $1.6 million shall be completed with financing option through the dealer’s designated financial institutions, and approximately $0.8 million shall be remit in installment to be completed before March 31, 2023. Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to curtail or cease its operations. Management is trying to alleviate the going concern risk through the following sources: ● Equity financing to support its working capital; ● Other available sources of financing (including debt) from PRC banks and other financial institutions; and ● Financial support and credit guarantee commitments from the Company’s related parties. Based on the above considerations, management is of the opinion that the Company will probably not have sufficient funds to meet its working capital requirements and debt obligations as they become due one year from the filing date of these unaudited condensed consolidated financial statements, if the Company is unable to obtain additional financing. In addition, the maximum contingent liabilities for automobile purchasers the Company would be exposed to was approximately $46,641 as of December 31, 2022, assuming all the automobile purchasers were in default. There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as (i) the impact of the COVID-19 pandemic on the Company’s business and areas of operations in China, (ii) changes in the demand for the Company’s services, (iii) PRC government policies, (iv) economic conditions in China and worldwide, (v) competitive pricing in the automobile transaction and related service and ride-hailing industries, (vi) changes in the Company’s relationships with key business partners, (vii) the ability of financial institutions in China to provide continued financial support to the Company’s customers, and (viii) the perception of PRC-based companies in the U.S. capital markets. The Company’s inability to secure needed financing when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s viability and results of operations. | 2. GOING CONCERN In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized to finance the working capital requirements of the Company. The Company’s business is capital intensive. The Company’s management has considered whether there is substantial doubt about its ability to continue as a going concern due to (1) net loss of approximately $5.6 million from continuing operations for the year ended March 31, 2022, (2) accumulated deficit of approximately $34.9 $0.1 Management has determined there is substantial doubt about its ability to continue as a going concern. If the Company is unable to generate significant revenue, the Company may be required to curtail or cease its operations. Management is trying to alleviate the going concern risk through the following sources: ● the Company will continue to seek equity financing to support its working capital; ● other available sources of financing (including debt) from PRC banks and other financial institutions; and ● financial support and credit guarantee commitments from the Company’s related parties. Based on the above considerations, management is of the opinion that the Company will probably not have sufficient funds to meet its working capital requirements and debt obligations as they become due one year from the filing date of these consolidated financial statements, if the Company is unable to obtain additional financing. In addition, the maximum contingent liabilities for automobile purchasers the Company would be exposed to was approximately $0.8 million as of March 31, 2022, assuming all the automobile purchasers were in default. There is no assurance that the Company will be successful in implementing the foregoing plans or that additional financing will be available to the Company on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as (i) the impact of the COVID-19 pandemic on the Company’s business and areas of operations in China, (ii) changes in the demand for the Company’s services, (iii) PRC government policies, (iv) economic conditions in China and worldwide, (v) competitive pricing in the automobile transaction and related service and ride-hailing industries, (vi) changes in the Company’s relationships with key business partners, (vii) the ability of financial institutions in China to provide continued financial support to the Company’s customers, and (viii) the perception of PRC-based companies in the U.S. capital markets. The Company’s inability to secure needed financing when required could require material changes to the Company’s business plans and could have a material adverse effect on the Company’s viability and results of operations. |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of December 31, 2022 and for the three and nine months ended December 31, 2022 and 2021 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 interim unaudited 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, 2022, which was filed with the SEC on July 15, 2022. 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, 2022, its unaudited results of operations for the three and nine months ended December 31, 2022 and 2021, and its unaudited cash flows for the nine months ended December 31, 2022 and 2021, 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 subsidiaries. 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 and former VIEs is U.S. dollars (“US$”) and the unaudited condensed consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the unaudited condensed consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, March 31, 2022 2022 Balance sheet items, except for equity accounts 6.8972 6.3400 For the Three Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss 7.1120 6.3937 For the Nine Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.8547 6.4408 (d) Use of estimates In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. (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. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and March 31, 2022: Carrying Value as of Fair Value Measurement as of December 31, 2022 December 31, 2022 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 572,021 $ — $ — $ 572,021 Fair Value Measurement as of Carrying Value as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for nine months ended December 31, 2022 and for the year ended March 31, 2022: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2021 $ 80,268 $ 163,572 $ 397,525 $ 637,561 $ — $ — $ — $ — $ 1,278,926 Derivative liabilities recognized at grant date — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — (45,675) BALANCE as of March 31, 2022 1,913 10,525 44,581 65,543 778,488 58,387 1,165,465 90,302 2,215,204 Change in fair value of derivative liabilities (1,878) (10,342) (34,526) (51,581) (589,804) (44,236) (843,900) (65,383) (1,641,650) Cashless exercise on November 2021 Investor warrant — — — — — — (1,533) — (1,533) BALANCE as of December 31, 2022 (Unaudited) $ 35 $ 183 $ 10,055 $ 13,962 $ 188,684 $ 14,151 $ 320,032 $ 24,919 $ 572,021 The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of December 31, 2022 and March 31, 2022. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of December 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 Expected term (years) 0.47 0.47 2.59 3.12 3.12 3.37 3.37 3.86 3.86 Risk-free interest rate 2.22 % 2.22 % 4.35 % 4.21 % 4.21 % 4.18 % 4.18 % 4.12 % 4.12 % Expected volatility 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % As of March 31, 2022 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022. As of December 31, 2022 and March 31, 2022, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of December 31, 2022 and March 31, 2022. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. (f) Equity method investments The Company accounts for investments in private company by using equity method as the Company determined that it does not have control over Jinkailong under either voting or VIE models in accordance with ASC 323 “Investments- Equity Method and Joint Ventures”. The Company records equity method investments initially at cost and subsequently records its share of the earnings or losses of the investee in the periods for which they are reported by the investee in its financial statements rather than in the period in which an investee declares a dividend. The Company adjusts the carrying amount of an investment for its share of the earnings or losses of the investee after the date of investment and share report the recognized earnings or loses in income. If an investment balance is reduced to zero as a result of cumulative losses, the Company will need to pause the recognition of losses until its share of earnings exceeds the accumulated losses resulting in the investment balance returning to zero. As of December 31, 2022 and March 31, 2022, the Company had equity investment in Jinkailong of 35%, and the carrying value of the investment is $0 for both periods presented. (g) Business combinations and non-controlling 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 at 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the unaudited condensed consolidated statements of cash flows. (h) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 (i) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds received from automobile purchasers as payments for automobiles, funds received from automobile lessees as payments for rentals, which were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. (j) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. 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, 2022 and March 31, 2022, allowance for doubtful accounts amounted to $0 and $112,905, respectively. (k) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. For the three and nine months ended December 31, 2022, $0 and $3,085 impairment of inventories were provided from continuing operations, respectively. (l) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is 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, 2022 and March 31, 2022, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of December 31, 2022 and March 31, 2022, finance lease receivables consisted of the following: December 31, March 31, 2022 2022 (Unaudited) Minimum lease payments receivable $ 288,026 $ 511,030 Less: Unearned interest (67,484) (103,786) Financing lease receivables, net $ 220,542 $ 407,244 Finance lease receivables, net, current portion $ 170,337 $ 314,264 Finance lease receivables, net, non-current portion $ 50,205 $ 92,980 Future scheduled minimum lease payments for investments in sales-type leases as of December 31, 2022 are as follows: Minimum future payments receivable Twelve months ending December 31, 2023 $ 196,715 Twelve months ending December 31, 2024 66,544 Twelve months ending December 31, 2025 24,767 Total $ 288,026 (m) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other equipment, which are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $11 from continuing operations, respectively. For the nine months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $2,936 from continuing operations, respectively. For the three and nine months ended December 31, 2021, the impairment for property and equipment was $6,007 and $35,609 from discontinued operations, respectively. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated statements of operations and comprehensive loss. (n) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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, 2022 and 2021, there was no impairment of intangible assets. (o) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the three and nine months ended December 31, 2022, the Company did not record impairment against goodwill. For the three and nine months ended December 31, 2021, the company recorded an impairment of $0 and $139,580 against goodwill, respectively. (p) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is anti-dilutive. As of December 31, 2022, the Company’s dilutive securities from the outstanding series A convertible preferred stock are convertible into approximately 870,706 shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. (q) Mezzanine Equity (redeemable) The Company evaluates its convertible preferred stock in accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to determine if its convertible preferred stock should be treated as a liability or an equity. As a result, the convertible preferred stock should be treated as an equity as it did not meet the definition of liability instrument. In accordance with ASC 480-10-S99, the convertible preferred stock should be classified as a mezzanine equity, since it contained a change of control redemption right feature which is not solely within the control of the Company. (r) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the unaudited condensed consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. (s) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of December 31, 2022, the Company had outstanding contracts for automobile transaction and related se | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (b) Basis of consolidation The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. 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 and former VIEs is U.S. dollars (“US$”) and the consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: March 31, March 31, 2022 2021 Balance sheet items, except for equity accounts 6.3400 6.5527 For the Years Ended March 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.4178 6.7960 (d) Use of estimates In presenting the consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets and goodwill, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. (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. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2022 and March 31, 2021: Carrying Value at Fair Value Measurement at March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 Carrying Value at Fair Value Measurement at March 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 1,278,926 $ — $ — $ 1,278,926 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 and 2021: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Series B Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2020 $ 315,923 $ 1,371 $ 25,236 $ — $ — $ — $ — $ — $ — $ 342,530 Derivative liabilities recognized at grant date — — — 241,919 755,274 — — — — 997,193 Change in fair value of derivative liabilities 1,234,630 — 138,336 455,162 (117,713) — — — — 1,710,415 Fair value of warrants exercised (1,470,285) — — (299,556) — — — — — (1,769,841) Warrant forfeited due to expiration — (1,371) — — — — — — — (1,371) BALANCE as of March 31, 2021 80,268 — 163,572 397,525 637,561 — — — — 1,278,926 Derivative liabilities recognized at grant date — — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) — (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — — (45,675) BALANCE as of March 31, 2022 $ 1,913 $ — $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 On June 21, 2019, the Company closed a registered direct offering of an aggregate of 178,137 (1,781,361 pre reverse split) shares of common stock, and in connection therewith, issued to the investors (i) for no additional consideration, Series A warrants to purchase up to an aggregate of 133,603 (1,336,021 pre reverse split) shares of common stock, (ii) for nominal additional consideration, Series B warrants to purchase up to a maximum aggregate of 111,632 (1,116,320 pre reverse split) shares of common stock and (iii) placement agent warrants to purchase up to 14,251 (142,509 pre reverse split) shares of common stock (the “June 2019 Placement Agent Warrants”). On August 6, 2020, the Company completed a public offering of 1,200,000 (12,000,000 pre reverse split) shares of the Company’s common stock at $5.0 ($0.50 pre-reverse split) per share (the “Offering Price”), pursuant to an underwriting agreement with The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the several underwriters (the “Underwriters”). On August 13, 2020, the Underwriters exercised their rights to purchase an additional 180,000 (1,800,000 pre reverse split) shares of common stock at the Offering Price. In connection with the offering, the Company issued the Underwriters, on a private placement basis, warrants to purchase up to 56,800 (568,000 pre reverse split) shares of common stock (the “Underwriters’ Warrants”). The Underwriters’ Warrants are exercisable for a period of five years commencing six months from August 4, 2020 at a price per share equal to 125% of the Offering Price and are exercisable on a “cashless” basis. As the underwriting agreement indicated, the Underwriters have the right of first refusal to act as lead or joint investment banker, lead or join book-runner and /or joint placement agent, for each and every future public and private equity and debt offering, including all equity linked financings for the Company, or any successor to or any subsidiary of the Company for a period of twelve months following August 4, 2020, (the “ROFR”). The ROFR was terminated as of February 4, 2021 as disclosed in more details below. On February 10, 2021, the Company completed a registered direct offering of 507,247 (5,072,465 pre reverse split) shares of the Company’s common stock at $13.8 ($1.38 pre-reverse split) per share, pursuant to a placement agency agreement with FT Global Capital, Inc., as exclusive placement agent in connection with this offering. In connection with the offering, the Company issued the placement agent warrants to purchase up to 38,044 (380,435 pre reverse split) shares of its common stock. These warrants are exercisable for a period of five years commencing 180 days from February 8, 2020 at a price of $13.8 ($1.38 pre-reverse split) per share and are exercisable on a “cashless” basis. In addition, the company issued to the Underwriters seven percent of the gross proceeds from the offering and warrants to purchase up to 15,218 (152,174 pre reverse split) shares of its common stock, in consideration for the termination of the ROFR as mentioned above. These warrants are exercisable for a period of five years from February 8, 2020 at a price of $17.25 ($1.725 pre-reverse split) per share. On May 13, 2021, the Company completed a registered direct offering of 553,192 (5,531,916 pre-reverse split) shares of the Company’s common stock at $11.75 ($1.175 pre-reverse split) per share, pursuant to a securities purchase agreement with certain purchasers dated May 11, 2021. As a result, the Company raised approximately $5.8 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 553,192 (5,531,916 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre-reverse split) per share (the “May 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the issuance date. In connection with the offering, the Company paid the placement agent cash commission of approximately $487,500 and issued to it warrants to purchase up to 41,490 (414,894 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre reverse split) per share (the “May 2021 Placement Agent Warrants”), which warrants will be exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. On November 10, 2021, the Company completed a private placement of 5,000 shares of the Company’s series A convertible preferred stock at $1,000 per share, pursuant to a securities purchase agreement with certain institutional investors. As a result, the Company raised approximately $4.4 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 735,295 (7,352,941 pre-reverse split) shares of common stock at an exercise price of $8.20 ($0.82 pre-reverse split) per share (the “November 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the initial exercisability date. In connection with the offering, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre-reverse split) shares of common stock at an exercise price of $6.80 ($0.68 pre-reverse split) per share (the “November 2021 Placement Agent Warrants”), which warrants will be exercisable at any time beginning from the date of six months from the closing of the Offering and expire on the fifth-year anniversary of their issuance. The Series A Convertible Preferred Stock is redeemable as change of control occur. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. The strike price of the Company’s Series A and Series B warrants, the placement agent warrants, the Underwriters’ Warrants, the ROFR warrants, and the investors warrants are denominated in US$ and the Company’s functional currency is RMB; therefore, those warrant shares are not considered indexed to the Company’s own stock which should be classified as derivative liability. The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of March 31, 2022 and March 31, 2021. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of March 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % As of March 31, 2021 June 20, 2019 August 4, 2020 February 10, 2021 Series A Placement Agent Underwriters’ Placement Agent ROFR Granted Date Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 6,993 14,251 31,808 38,044 15,218 Valuation date 3/31/2021 3/31/2021 3/31/2021 3/31/2021 3/31/2021 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 Stock price* $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Expected term (years) 2.22 2.22 4.35 4.87 4.87 Risk-free interest rate 0.20 % 0.20 % 0.73 % 0.88 % 0.88 % Expected volatility 132 % 132 % 132 % 132 % 132 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 As of March 31, 2022 and 2021, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, restricted cash, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of March 31, 2022 and March 31, 2021. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. (f) Business combinations and non-controlling 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling 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 (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 20. (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. Cash and cash equivalents also consist of funds received from automobile purchasers as payment for automobiles, related insurances and taxes to be paid on behalf of the automobile purchasers, which funds were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for 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, and 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 March 31, 2022 and March 31, 2021, allowance for doubtful accounts amounted to $112,905 and $1,739, respectively, was provided for continuing operations. As of March 31, 2021, allowance for doubtful accounts amounted to $76,428 was provided for discontinued operations. (j) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes, and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. As of March 31, 2022, impairments of inventories amounted to $60,398 was provided for certain vehicles held for sale. (k) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as a finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2022 and March 31, 2021, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of March 31, 2022 and March 31, 2021, finance lease receivables consisted of the following: March 31, March 31, 2022 2021 Minimum lease payments receivable $ 511,030 $ 1,343,662 Less: Unearned interest (103,786) (328,585) Financing lease receivables, net $ 407,244 $ 1,015,077 Finance lease receivables, net, current portion $ 314,264 $ 541,605 Finance lease receivables, net, non-current portion $ 92,980 $ 473,472 Future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 are as follows: Minimum future payments receivable Twelve months ending March 31, 2023 $ 345,425 Twelve months ending March 31, 2024 150,633 Twelve months ending March 31, 2025 14,972 Total $ 511,030 (l) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other 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: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the years ended March 31, 2022 and 2021, the Company did not recognize impairment for property and equipment from continuing operations. For the years ended March 31, 2022 and 2021, the impairment for property and equipment was $32,479 and $10,459 from discontinued operations, respectively. 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 consolidated statements of operations and comprehensive loss. (m) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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 years ended March 31, 2022 and 2021, there was no impairment of intangible assets. (n) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the years ended March 31, 2022 and 2021, the Company recorded an impairment of $139,930 and $0 against goodwill, respectively. (o) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is ant |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Mar. 31, 2022 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 4. BUSINESS COMBINATION On September 11, 2020, Senmiao Consulting entered into an investment agreement (“XXTX Investment Agreement”) relating to XXTX with all the original shareholders of XXTX, pursuant to which Senmiao Consulting agreed to make an investment of RMB3.16 million (approximately $0.5 million) in XXTX in cash in exchange for a 51% equity interest. On October 23, 2020, the registration procedures for the change in shareholders and registered capital were completed and XXTX became a majority-owned subsidiary of Senmiao Consulting. On February 5, 2021, Senmiao Consulting and all the original shareholders of XXTX entered into XXTX Increase Investment Agreement, a supplementary agreement related to XXTX Investment Agreement. Under the XXTX Increase Investment Agreement, all shareholders of XXTX agreed to increase the total registered capital of XXTX to RMB50.8 million (approximately $7.8 million). Senmiao Consulting shall pay another investment amounted to RMB36.84 million (approximately $5.7 million) in cash in exchange of additional 27.74% of XXTX’s equity interest. In October 2021, The Company, Senmiao Consulting, XXTX and its shareholders entered into a Share Swap Agreement, pursuant to which the Company, through Senmiao Consulting, purchased all of the equity shares of XXTX held by its shareholders by issuing a total of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock to XXTX’s Shareholders. Upon closing, the Company, through Senmiao Consulting, owns 100% of the equity interests in XXTX. On November 9, 2021, the issuance of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock for this transaction has been completed and on March 31, 2022, the registration procedures for the change in shareholders have been completed. As of the filing date of these consolidated financial statements, Senmiao Consulting has made a capital contribution of RMB36.86 million (approximately $5.81 million) to XXTX and the remaining amount is expected to be paid before December 31, 2025. The Company’s acquisition of XXTX was accounted for as a business combination in accordance with ASC 805. The Company has allocated the purchase price of XXTX based upon the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date. The Company estimated the fair values of the assets acquired and liabilities assumed at the acquisition date in accordance with the business combination standard issued by the FASB with the valuation methodologies using level 3 inputs, except for other current assets and current liabilities were valued using the cost approach. Management of the Company is responsible for determining the fair value of assets acquired, liabilities assumed and intangible assets identified as of the acquisition date and considered a number of factors including valuations from independent appraisers. Acquisition-related costs incurred for the acquisitions are not material and have been expensed as incurred in general and administrative expense. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed on the acquisition date, which represents the net purchase price allocation on the date of the acquisition of XXTX based on valuation performed by an independent valuation firm engaged by the Company and translated the fair value from RMB to USD using the exchange rate on October 23, 2020 at the rate of USD 1.00 to RMB 6.69. As of March 31, 2022, the Company acquired $8,065 in cash, net of cash paid to XXTX in the acquisition of XXTX. The remaining purchase consideration of approximately $0.3 million from XXTX Investment Agreement signed on September 11, 2020 and approximately $5.7 million additional capital investment from XXTX Increase Investment Agreement signed on February 5, 2021 mentioned above are expected to be paid by the Company by December 31, 2025. Under ASC 805-30-30-1, goodwill is calculated as follows as of March 31, 2022: Fair value Purchase consideration paid $ 472,573 Fair value of non-controlling interest 326,570 Less: fair value of nets assets of XXTX: Cash and cash equivalents 105,386 Other current assets 525,005 Plant and equipment 790 Intangible assets 265,536 Total assets 896,717 Total liabilities (230,247) Total fair value of net assets of XXTX 666,470 Goodwill as of the acquisition date 132,673 Effect of exchange rate changes on goodwill 7,257 Less: impairment loss of goodwill (139,930) Goodwill as of March 31, 2022 $ — |
DISCONTINUED OPERATIONS_2
DISCONTINUED OPERATIONS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
DISCONTINUED OPERATIONS | ||
DISCONTINUED OPERATIONS | 4. DISCONTINUED OPERATIONS Discontinued operations- Online P2P lending services On October 17, 2019, the Board approved the plan under which the Company has discontinued and is winding down its online P2P lending services business (the “Plan”). The Company determined that the operation of its online P2P lending services business was not viable in light of the tightened regulations on online peer-to-peer lending in China generally and the unofficial request from local regulator to reduce the Company’s online peer-to-peer lending transaction volume on a monthly basis. The Company also determined that the discontinuation of its online P2P lending services business would allow the Company to focus its resources on its automobile financing facilitation and transaction business. In connection with the Plan, the Company ceased facilitation of loan transactions on its online lending platform and assumed all the outstanding loans from investors on the platform. The decision and action taken by the Company of discontinuing the online lending services business represented a major shift that had a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The fair value of discontinued operations, determined as of October 17, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations including the assumption of all the outstanding loans from investors on the platform, $143,668 of accounts receivable, $3,760,599 of other receivables, and $143,943 of prepayments for impaired intangible assets were indicated as of the date the Company’s Board of Directors approved the Plan on October 17, 2019, and the Company recognized $4,048,210 provision for doubtful accounts as of December 31, 2019 related to the Company’s online lending services business, while the Company did not recognize any additional provision for doubtful accounts for the three and nine months ended December 31, 2022. The following table sets forth the reconciliation of the carrying amounts of major classes liabilities from discontinued operations of Online P2P lending services in unaudited condensed consolidated balance sheet as of December 31, 2022 and consolidated balance sheet as of March 31, 2022. Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: December 31, March 31, 2022 2022 (Unaudited) Current liabilities Accrued expenses and other liabilities $ 468,376 $ 509,540 Due to a stockholder 17,360 18,886 Total current liabilities 485,736 528,426 Discontinued operation- Jinkailong On March 31, 2022, Ruixi, a majority owned subsidiary of the Company, holding 35% equity interest of Jinkailong, entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on August 26, 2018 (“Voting Agreement No.1”) and the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on February 13, 2020 (“Voting Agreement No.2”, collectively, “Voting Agreements”) shall be terminated as of the date of the Termination Agreement. As a result, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s consolidated financial statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of December 31, 2022, the paid-in capital of Jinkailong is zero. The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended December 31, 2022 and 2021. For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $ — $ 1,882,930 $ — $ 5,096,441 Cost of revenue — (1,375,818) — (4,295,661) Gross profit — 507,112 — 800,780 Operating expenses Selling, general and administrative expenses — (525,673) — (2,597,474) Amortization of intangible assets — (395,398) — (395,398) Impairments of intangible assets and goodwill — (6,007) — (35,609) Recovery of bad debts expense — 29,256 — 45,299 Total operating expenses — (897,822) — (2,983,182) Loss from discontinued operations — (390,710) — (2,182,402) Other expense, net — (27,645) — (236,355) Income (loss) before income taxes — (418,355) — (2,418,757) Income tax expenses — — — — Net loss — (418,355) — (2,418,757) Less: net loss from discontinued operations attributable to noncontrolling interest — (108,772) — (628,877) Net loss attributable to stockholders $ — $ (309,583) $ — $ (1,789,880) | 5. DISCONTINUED OPERATIONS Discontinued operations- Online P2P lending services On October 17, 2019, the Board approved the Plan under which the Company has discontinued and is winding down its online P2P lending services business. The Company determined that the operation of its online P2P lending services business was not viable in light of the tightened regulations on online peer-to-peer lending in China generally and the unofficial request from local regulator to reduce the Company’s online peer-to-peer lending transaction volume on a monthly basis. The Company also determined that the discontinuation of its online P2P lending services business would allow the Company to focus its resources on its automobile financing facilitation and transaction business. In connection with the Plan, the Company ceased facilitation of loan transactions on its online lending platform and assumed all the outstanding loans from investors on the platform. The decision and action taken by the Company of discontinuing the online lending services business represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The fair value of discontinued operations, determined as of October 17, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations including the assumption of all the outstanding loans from investors on the platform, $143,668 of accounts receivable, $3,760,599 of other receivables, and $143,943 of prepayments for impaired intangible assets were indicated as of the date the Company’s Board of Directors approved the Plan on October 17, 2019, and the Company recognized $4,048,210 provision for doubtful accounts as of September 30, 2019 related to the Company’s online lending services business, while the Company did not recognize any additional provision for doubtful accounts for the year ended March 31, 2022. The following table sets forth the reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations of Online P2P lending services in consolidated balance sheet as of March 31, 2022 and March 31, 2021. Carrying amounts of major classes of assets included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current assets Prepayments, other receivables and other assets, net $ — $ 393,348 Total current assets — 393,348 Property and equipment, net — 5,592 Total assets $ — $ 398,940 Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current liabilities Accrued expenses and other liabilities $ 509,540 $ 2,288,066 Due to a stockholder 18,886 48,795 Total current liabilities 528,426 2,336,861 Total liabilities $ 528,426 $ 2,336,861 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Online P2P lending services in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ — $ 7,153 Operating expenses Selling, general and administrative expenses — (88,438) Total operating expenses — (88,438) Loss from discontinued operations — (81,285) Other income, net — 19,309 Loss before income taxes — (61,976) Income tax expenses — — Net loss attributable to stockholders $ — $ (61,976) Discontinued operation- Jinkailong On March 31, 2022, Ruixi, a majority owned subsidiary of the Company, holding 35% equity interest of Jinkailong, entered into an Agreement for the Termination of the Agreement for Concerted Action by Shareholders of Jinkailong (the “Termination Agreement”), pursuant to which the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on August 26, 2018 (“Voting Agreement No.1”) and the Agreement for Concerted Action by Shareholders with respect to Jinkailong signed on February 13, 2020 (“Voting Agreement No.2”, collectively, “Voting Agreements”) shall be terminated as of the date of the Termination Agreement. As a result, the Company no longer has a controlling financial interest in Jinkailong and has determined that Jinkailong was deconsolidated from the Company’s Consolidated Financial Statements effective as of March 31, 2022. However, as Hunan Ruixi still holds 35% equity interests in Jinkailong, Jinkailong is the equity investee company of the Company since then. As of March 31, 2022, the paid-in capital of Jinkailong is zero. In connection with the deconsolidation and in accordance with ASC 810-10-40-5, the Company recorded a gain on deconsolidation of Jinkailong as follows: Consolidation included Jinkailong as of Deconsolidation Consolidation as of March 31, 2022 of Jinkailong March 31, 2022 ASSETS Current assets Cash and cash equivalents $ 1,241,452 $ (56,231) $ 1,185,221 Accounts receivable, net, current portion 766,373 (348,351) 418,022 Inventories 286,488 — 286,488 Finance lease receivables, net, current portion 314,264 — 314,264 Prepayments, other receivables and other assets, net 3,699,361 (986,153) 2,713,208 Due from related parties, current portion (1) 51,135 631,200 682,335 Total current assets 6,359,073 (759,535) 5,599,538 Property and equipment, net Property and equipment, net 5,916,327 (257,554) 5,658,773 Total property and equipment, net 5,916,327 (257,554) 5,658,773 Other assets Operating lease right-of-use assets, net 306,330 (196,709) 109,621 Operating lease right-of-use assets, net, related parties 515,906 — 515,906 Financing lease right-of-use assets, net 1,349,922 (1,043,989) 305,933 Intangible assets, net 959,551 — 959,551 Accounts receivable, net, noncurrent 2,732 (2,663) 69 Finance lease receivables, net, noncurrent 92,980 — 92,980 Due from a related party, noncurrent (1) — 6,635,746 6,635,746 Total other assets 3,227,421 5,392,385 8,619,806 Total assets $ 15,502,821 $ 4,375,296 $ 19,878,117 LIABILITIES AND EQUITY (DEFICIENCY) Current liabilities Borrowings from financial institutions $ 471,913 $ (326,371) $ 145,542 Accounts payable 14,446 - 14,446 Advances from customers 1,087,928 (967,299) 120,629 Income tax payable 17,992 (17,992) — Accrued expenses and other liabilities 7,316,269 (4,871,902) 2,444,367 Due to related parties and affiliates 478,825 (467,143) 11,682 Operating lease liabilities 164,321 (114,144) 50,177 Operating lease liabilities - related parties 330,781 — 330,781 Financing lease liabilities 3,502,481 (3,197,924) 304,557 Derivative liabilities 2,215,204 — 2,215,204 Current liabilities - discontinued operations 528,426 — 528,426 Total current liabilities 16,128,586 (9,962,775) 6,165,811 Other liabilities Borrowings from financial institutions, noncurrent 9,271 (9,271) — Operating lease liabilities, non-current 135,323 (87,413) 47,910 Operating lease liabilities, non-current - related parties 226,896 — 226,896 Financing lease liabilities, non-current 793,980 (792,604) 1,376 Deferred tax liability 46,386 — 46,386 Total other liabilities 1,211,856 (889,288) 322,568 Total liabilities 17,340,442 (10,852,063) 6,488,379 Commitments and contingencies Mezzanine Equity (redeemable) Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 shares issued and outstanding at December 31, 2021), net of issuance costs of $118,344 820,799 — 820,799 Stockholders’ equity (deficiency) Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 shares issued and outstanding at March 31, 2022.) (2) 630 — 630 Additional paid-in capital 42,803,033 — 42,803,033 Accumulated deficit (45,553,090) 10,951,545 (34,601,545) Accumulated other comprehensive income (loss) (780,112) 670,658 (109,454) Total Senmiao Technology Limited stockholders’ equity (deficiency) (3,529,539) 11,622,203 8,092,664 Non-controlling interests 871,119 3,605,156 4,476,275 Total equity (deficiency) 2,658,420 15,227,359 12,568,939 Total liabilities and equity (deficiency) $ 15,502,821 $ 4,375,296 $ 19,878,117 (1) As result of deconsolidation, the Company recognized $7,298,208 of related party receivable from Jinkailong, of which, $6,635,746 is to be repaid over a period from April 2023 to December 2026, classified as due from related parties, noncurrent. Besides, the deconsolidation also excluded $31,263 receivables due from related parties, which was recorded by Jinkailong. (2) Giving retroactive effect to the 1-for-10 The gain on deconsolidation of Jinkailong was calculated as follows: March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 The Company determined that the deconsolidation of Jinkailong represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45. The following table sets forth the reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations of Jinkailong in consolidated balance sheet as of March 31, 2022 and March 31, 2021. Carrying amounts of major classes of assets included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current assets Cash and cash equivalents $ — $ 107,546 Accounts receivable, net — 935,164 Prepayments, receivables and other assets, net — 1,245,195 Due from related parties — 39,572 Total current assets — 2,327,477 Property and equipment, net — 448,816 Other assets Operating lease right-of-use assets, net — 265,470 Financing lease right-of use assets, net — 4,201,693 Accounts receivable, net, noncurrent — 207,240 Total other assets — 4,674,403 Total assets $ — $ 7,450,696 Carrying amounts of major classes of liabilities included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current liabilities Borrowings from financial institutions $ — $ 310,662 Advance from customers — 45,413 Income tax payable — 17,408 Accrued expenses and other liabilities — 3,782,365 Due to related parties and affiliates — 269,918 Operating lease liabilities — 99,831 Finance lease liabilities — 4,814,808 Total current liabilities — 9,340,405 Other liabilities Borrowings from financial institutions, noncurrent — 44,962 Operating lease liabilities, non-current — 167,822 Financing lease liabilities, non-current — 2,037,609 Total other liabilities — 2,250,393 Total liabilities $ — $ 11,590,798 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ 6,830,116 $ 3,971,694 Cost of revenues (5,183,806) (3,985,413) Gross profit 1,646,310 (13,719) Operating expenses Selling, general and administrative expenses (4,139,800) (4,367,529) Long live assets impairment (32,479) (119,886) Recovery of (Provision for) doubtful account (11,746) 328,016 Total operating expenses (4,184,025) (4,159,399) Loss from discontinued operations (2,537,715) (4,173,118) Other expense, net (209,494) (945,825) Loss before income taxes (2,747,209) (5,118,943) Income tax expenses — (6,295) Net Loss (2,747,209) (5,125,238) Less: net loss from discontinued operations attributable to noncontrolling interest 714,274 1,332,562 Net loss attributable to stockholders $ (2,032,935) $ (3,792,676) Discontinued operation- Youlu On March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the Company recognized a gain of $ 23,556 from the termination. |
ACCOUNTS RECEIVABLE, NET_2
ACCOUNTS RECEIVABLE, NET | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | ||
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable include a portion of bundled lease arrangements on fixed minimum monthly payments to be paid by the automobile purchasers arising from automobile sales and services fees, net of unearned interest income, discounted using the Company’s lease pricing interest rates. As of December 31, 2022 and March 31, 2022, accounts receivables were comprised of the following: December 31, March 31, 2022 2022 (Unaudited) Receivables of automobile sales due from automobile purchasers $ 107,246 $ 392,530 Receivables of service fees due from automobile purchasers 15,949 17,350 Receivables of online ride hailing fees from online ride-hailing drivers 46,848 121,116 Receivables of operating lease 34,720 — Less: Allowance for doubtful accounts — (112,905) Accounts receivable, net $ 204,763 $ 418,091 Accounts receivable, net, current portion $ 204,763 $ 418,022 Accounts receivable, net, non-current portion $ — $ 69 Movement of allowance for doubtful accounts for December 31, 2022 and March 31, 2022 are as follows: December 31, March 31, 2022 2022 (Unaudited) Beginning balance $ 112,905 $ 78,167 Addition 3,392 153,988 Write off (107,820) (44,227) Deconsolidation of Jinkailong — (76,428) Translation adjustment (8,477) 1,405 Ending balance $ — $ 112,905 | 6. ACCOUNTS RECEIVABLE, NET Accounts receivable include a portion of bundled lease arrangements on fixed minimum monthly payments to be paid by the automobile purchasers arising from automobile sales and services fees, net of unearned interest income, discounted using the Company’s lease pricing interest rates. As of March 31, 2022 and March 31, 2021, accounts receivable were comprised of the following: March 31, March 31, 2022 2021 Receivables of automobile sales due from automobile purchasers $ 392,530 $ 760,126 Receivables of service fees due from automobile purchasers 17,350 731,962 Receivables of online ride hailing fees from online ride-hailing drivers 121,116 162,197 Receivables of operating lease — 170,707 Less: Unearned interest — (40,447) Less: Allowance for doubtful accounts (112,905) (78,167) Accounts receivable, net 418,091 1,706,378 Accounts receivable, net – discontinued operations — (1,142,404) Accounts receivable, net – continuing operations $ 418,091 $ 563,974 Accounts receivable, net, current portion – continuing operations $ 418,022 $ 502,031 Accounts receivable, net, non-current portion – continuing operations 69 61,943 Accounts receivable, net, current portion – discontinued operations — 935,164 Accounts receivable, net, non-current portion – discontinued operations $ — $ 207,240 Movement of allowance for doubtful accounts for March 31, 2022 and March 31, 2021 are as follows: March 31, March 31, 2022 2021 Beginning balance $ 78,167 $ 379,689 Addition 153,988 374,785 Recovery — (209,723) Write off (44,227) (485,384) Deconsolidation of Jinkailong (76,428) — Translation adjustment 1,405 18,800 Ending balance $ 112,905 $ 78,167 |
INVENTORIES_2
INVENTORIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INVENTORIES | ||
INVENTORIES | 6. INVENTORIES December 31, March 31, 2022 2022 (Unaudited) Automobiles (i) $ — $ 286,488 (i) As of December 31, 2022 and March 31, 2022, the Company owned 0 and 36 automobiles with a total value of $0 and $286,488 , net of impairment, for sale or sales-type leases, respectively. At the end of each quarter, the Company compared the cost of automobiles with their net realizable value and recognized impairments of $0 and $3,085, respectively for certain automobiles for sale for the three and nine months ended December 31, 2022. For the three and nine months ended December 31, 2021, the Company did not recognized impairments for the inventories. As of March 31, 2022, an impairment of $60,398 was recognized for certain automobiles for sale. | 7. INVENTORIES March 31, March 31, 2022 2021 Automobiles (i) $ 286,488 $ 127,933 (i) As of March 31, 2022, the Company owned 36 automobiles with a total value of $346,886 for sale or sales-type leases. As of March 31, 2021, the Company owned three automobiles with a total value of $47,410 for sale, and six automobiles with a total value of $80,523 for either leasing or sale. As of March 31, 2022 and March 31, 2021, management compared the cost of automobiles with their net realizable value and recognized impairments of $60,398 and $0 for certain automobiles for sale, respectively. |
PREPAYMENTS, OTHER RECEIVABLE_5
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | ||
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | 7. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS As of December 31, 2022 and March 31, 2022, the prepayments, receivables and other assets were comprised of the following: December 31, March 31, 2022 2022 (Unaudited) Deposits (i) $ 618,689 $ 731,279 Receivables from aggregation platforms (ii) 253,168 163,384 Prepaid expenses (iii) 242,779 957,200 Due from automobile purchasers, net (iv) 103,333 238,421 Employee advances 8,951 11,054 Value added tax (“VAT”) recoverable (v) 93,214 597,884 Others 42,683 13,986 Total prepayments, receivables and other assets $ 1,362,817 $ 2,713,208 (i) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (ii) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. ( iii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense and etc. that will expire within one year. (iv) Due from automobile purchasers, net The balance due from automobile purchasers represented the payments of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. As of December 31, 2022 and March 31, 2022, the Company did not record allowance against doubtful receivables. During the nine months ended December 31, 2022, the Company did not recover allowances while during the nine months ended December 31, 2021, the Company recorded additional allowances of $55,459 and wrote off balance due from automobile purchasers of $32,201 from continuing operations. During the nine months ended December 31, 2021, the Company recorded additional allowances of $24,838, and recovered allowance against the balance due from automobile purchasers of $12,308 while wrote off balance due from automobile purchaser of $26,555 from discontinued operations. (v) Value added tax (“VAT”) recoverable The balance represented the amount of VAT, which resulted from historical purchasing activities and could be further used for deducting future VAT in PRC. | 8. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS As of March 31, 2022 and March 31, 2021, the prepayments, receivables and other assets were comprised of the following: March 31, March 31, 2022 2021 Receivables from borrowers of online lending platform, net (i) $ — $ 393,348 Prepaid expenses (ii) 957,200 829,032 Deposits (iii) 731,279 537,619 Value added tax (“VAT”) recoverable 597,884 99,445 Due from automobile purchasers, net (iv) 238,421 504,792 Receivables from aggregation platforms (v) 163,384 867,614 Prepayments for automobiles (vi) — 1,026,802 Employee advances 11,054 9,739 Others 13,986 30,235 Total prepayments, receivables and other assets 2,713,208 4,298,626 Total prepayments, receivables and other assets - discontinued operations — (1,638,543) Total prepayments, receivables and other assets - continuing operations $ 2,713,208 $ 2,660,083 (i ) Receivables from borrowers of online lending platform, net The balance of receivables from borrowers of online lending platform represented the outstanding loans the Company assumed from investors on the Company’s discontinued P2P lending platform, which will be collected from related borrowers. As of March 31, 2022 and March 31, 2021, the Company recorded allowance of $4,024,651 and $3,894,011, respectively, against doubtful receivables. (ii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense and etc. that will expire within one year. (iii) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (iv) Due from automobile purchasers, net 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. As of March 31, 2022 and 2021, the Company recorded allowance of $0 and $3,240, from continuing operations, respectively, against doubtful receivables. As of March 31, 2021, the Company recorded allowance of $38,519 from discontinued operations against doubtful receivables. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $84,600 and $175,460, respectively, while wrote off balance due from automobile purchasers of $84,600 and $172,336, respectively, and recovered allowance against the balance due from automobile purchasers of $3,308 and $0, respectively from continuing operations. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $35,983 and $93,246, respectively, while wrote off balance due from automobile purchasers of $1,134 and $295,741, respectively, and recovered allowance against the balance due from automobile purchasers of $12,352 and $125,940, respectively from discontinued operations. (v) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. (v i) Prepayments for automobiles The balance represented advanced payments in purchasing automobiles from auto dealers or other parties. |
PROPERTY AND EQUIPMENT, NET_2
PROPERTY AND EQUIPMENT, NET | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | ||
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: December 31, March 31, 2022 2022 (Unaudited) Leasehold improvements $ 182,429 $ 198,463 Computer equipment 44,433 47,849 Office equipment, fixtures and furniture 78,036 81,898 Automobiles 4,652,593 6,463,698 Subtotal 4,957,491 6,791,908 Less: accumulated depreciation and amortization (1,427,295) (1,133,135) Total property and equipment, net $ 3,530,196 $ 5,658,773 Depreciation expense from continuing operations for the three and nine months ended December 31, 2022 were amounted to $266,998 and $873,480, respectively. Depreciation expense from continuing operations for three and nine months ended December 31, 2021 amounted to $277,783 and $704,741, respectively. Depreciation expense from discontinued operations for three and nine months ended December 31, 2021 amounted to $50,768 and $144,901, respectively. | 9. PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: March 31, March 31, 2022 2021 Leasehold improvements $ 198,463 $ 192,020 Electronic devices 47,849 53,200 Office equipment, fixtures and furniture 81,898 104,735 Vehicles 6,463,698 3,778,811 Subtotal 6,791,908 4,128,766 Less: accumulated depreciation and amortization (1,133,135) (423,027) Total property and equipment, net 5,658,773 3,705,739 Total property and equipment, net - discontinued operations — (454,408) Total property and equipment, net - continuing operations $ 5,658,773 $ 3,251,331 Depreciation expense from continuing operations for the years ended March 31, 2022 and 2021 amounted to $956,400 and $85,530, respectively. Depreciation expense from discontinued operations for the years ended March 31, 2022 and 2021 amounted to $170,177 and $183,683, respectively. |
INTANGIBLE ASSETS, NET_2
INTANGIBLE ASSETS, NET | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INTANGIBLE ASSETS, NET | ||
INTANGIBLE ASSETS, NET | 10. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: December 31, March 31, 2022 2022 (Unaudited) Software $ 793,195 $ 796,042 Online ride-hailing platform operating licenses 439,662 450,701 Subtotal 1,232,857 1,246,743 Less: accumulated amortization (413,186) (287,192) Total intangible assets, net $ 819,671 $ 959,551 Amortization expense from continuing operations totaled $34,814 and $128,538 for the three and nine months ended December 31, 2022, respectively. Amortization expense from continuing operations totaled $30,186 and $104,829 for the three and nine months ended December 31, 2021, respectively. The following table sets forth the Company’s amortization expense for the next five years ending: Amortization expenses Twelve months ending December 31, 2023 $ 179,616 Twelve months ending December 31, 2024 169,528 Twelve months ending December 31, 2025 133,240 Twelve months ending December 31, 2026 85,157 Twelve months ending December 31, 2027 78,586 Thereafter 173,544 Total $ 819,671 | 10. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: March 31, March 31, 2022 2021 Software $ 796,042 $ 794,548 Online ride-hailing platform operating licenses 450,701 297,258 Less: Accumulated amortization (287,192) (123,675) Total intangible assets, net $ 959,551 $ 968,131 Amortization expense from continuing operations totaled $160,831 and $107,765 for the years ended March 31, 2022 and 2021, respectively. The following table sets forth the Company’s amortization expense for the next five years ending: Amortization expenses Twelve months ending March 31, 2023 $ 186,772 Twelve months ending March 31, 2024 178,660 Twelve months ending March 31, 2025 171,289 Twelve months ending March 31, 2026 111,011 Twelve months ending March 31, 2027 79,563 Thereafter 232,256 Total $ 959,551 |
BORROWINGS FROM A FINANCIAL I_3
BORROWINGS FROM A FINANCIAL INSTITUTIONS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
BORROWINGS FROM A FINANCIAL INSTITUTION | ||
BORROWINGS FROM A FINANCIAL INSTITUTIONS | 11. BORROWINGS FROM A FINANCIAL INSTITUTION The borrowings from a financial institution in China represented the short-term loans of $22,857 and $145,542 as of December 31, 2022 and March 31, 2022, respectively. Such borrowings bearing interest rate of 13.04% per annum as of December 31, 2022 and March 31, 2022, which are to be repaid within the next 12 months. The interest expense for the three and nine months ended December 31, 2022 was $6,975 from continuing operations. The interest expense for the three and nine months ended December 31, 2021 was $0 and $5,872 from continuing operations. The interest expense for the three and nine months ended December 31, 2021 was $16,475 and $38,251 from discontinued operations. | 11. BORROWINGS FROM A FINANCIAL INSTITUTIONS The borrowings from a certain financial institution in China represented the short-term loans of $145,542 as of March 31, 2022. Such borrowings bearing interest rate of 13.04% per annum as of March 31, 2022, which is to be repaid within the next 12 months, were classified as borrowings from financial institutions, current. The interest expense for the years ended March 31, 2022 and 2021 was $5,893 and $0, from continuing operations, respectively. The interest expense for the years ended March 31, 2022 and 2021 was $501,361 and $579,870 from discontinued operations, respectively, of which, $450,889 and $531,954 were due to continuing operations and eliminated in the consolidation statements of operations and comprehensive loss. |
ACCRUED EXPENSES AND OTHER LI_4
ACCRUED EXPENSES AND OTHER LIABILITIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
ACCRUED EXPENSES AND OTHER LIABILITIES | 12. ACCRUED EXPENSES AND OTHER LIABILITIES December 31, March 31, 2022 2022 (Unaudited) Accrued payroll and welfare $ 1,305,857 $ 1,176,442 Payables to drivers from aggregation platforms (i) 845,726 806,921 Deposits (ii) 555,513 783,830 Accrued expenses 261,085 94,106 Other taxes payable 113,083 5,260 Loan repayments received on behalf of financial institutions (iii) 63,989 28,704 Payables for expenditures on automobile transaction and related services 26,562 56,222 Other payables 11,770 2,422 Total accrued expenses and other liabilities 3,183,585 2,953,907 Total accrued expenses and other liabilities - discontinued operations (468,376) (509,540) Total accrued expenses and other liabilities - continuing operations $ 2,715,209 $ 2,444,367 (i) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (ii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iii) 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. | 12. ACCRUED EXPENSES AND OTHER LIABILITIES March 31, March 31, 2022 2021 Payables to investors of online lending platform (i) $ — $ 1,795,066 Accrued payroll and welfare 1,176,442 1,306,509 Payables to drivers from aggregation platforms (ii) 806,921 2,352,264 Deposits (iii) 783,830 1,639,681 Accrued expenses 94,106 6,090 Payables for expenditures on automobile transaction and related services 56,222 159,388 Loan repayments received on behalf of financial institutions (iv) 28,704 839,770 Other taxes payable 5,260 398,220 Other payables (v) 2,422 446,670 Total accrued expenses and other liabilities 2,953,907 8,943,658 Total accrued expenses and other liabilities - discontinued operations (509,540) (6,070,431) Total accrued expenses and other liabilities - continuing operations $ 2,444,367 $ 2,873,227 (i) The balance of payables to investors of online lending platform represented the outstanding loans from investors on the Company’s discontinued P2P lending platform, which was assumed by the Company in connection with the Plan to discontinue its online lending services business. As of March 31, 2022, the Company has fully settled the outstanding loans. (ii) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (iii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iv) 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. (v) The balance of other payables represented amount due to suppliers and vendors for operations purposes. |
EMPLOYEE BENEFIT PLAN_2
EMPLOYEE BENEFIT PLAN | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
EMPLOYEE BENEFIT PLAN | ||
EMPLOYEE BENEFIT PLAN | 13. EMPLOYEE BENEFIT PLAN The Company has made employee benefit plan in accordance with relevant PRC regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The contributions made by the Company were $107,638 and $338,279 for the three and nine months ended December 31, 2022, respectively, from continuing operations of the Company. The contributions made by the Company were $130,591 and $383,896 for the three and nine months ended December 31, 2021, respectively, for the Company’s continuing operations. The contributions made by the Company were $78,618 and $182,128 for the three and nine months ended December 31, 2021, respectively, for the Company’s discontinued operations. As of December 31, 2022 and March 31, 2022, the Company did not make adequate employee benefit contributions in the amount of $885,967 and $963,824, respectively, from continuing operations of the Company. | 13. EMPLOYEE BENEFIT PLAN The Company has made employee benefit plan in accordance with relevant PRC regulations, including retirement insurance, unemployment insurance, medical insurance, housing fund, work injury insurance and maternity insurance. The contributions made by the Company were $602,641 and $73,047 for the years ended March 31, 2022 and 2021, respectively, from continuing operations of the Company. The contributions made by the Company were $464,159 and $340,517 for the years ended March 31, 2022 and 2021, respectively, for the Company’s discontinued operations. As of March 31, 2022 and March 31, 2021, the Company did not make adequate employee benefit contributions in the amount of $963,824 and $111,534, respectively, from continuing operations of the Company. As of March 31, 2021, the Company did not make adequate employee benefit contributions in the amount of $897,091 from discontinued operations of the Company. The Company accrued the amount in accrued payroll and welfare. |
EQUITY_2
EQUITY | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
EQUITY | ||
EQUITY | 14. EQUITY Warrants IPO Warrants The registration statement relating to the Company’s initial public offering also included the underwriters’ common stock purchase warrants to purchase 33,794 (337,940 pre reverse split) shares of common stock (“IPO Underwriter’s Warrants”). Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $48.0 ($4.80 before reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018. As of December 31, 2022, there were 3,794 (37,940 pre reverse split) IPO Underwriter’s Warrants outstanding. Warrants in Offerings The Company adopted the provisions of ASC 815 on determining what types of instruments or embedded features in an instrument held by a reporting entity can be considered indexed to its own stock for the purpose of evaluating the first criteria of the scope exception in ASC 815. Warrants issued in connection with the direct equity offering with exercise prices denominated in US dollars are no longer considered indexed to the Company’s stock, as their exercise prices are not in the Company’s functional currency (RMB), and therefore no longer qualify for the scope exception and must be accounted for as a derivative. These warrants are classified as liabilities under the caption “Derivative liabilities” in the unaudited condensed consolidated statements of balance sheets and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. Changes in the liability from period to period are recorded in the unaudited condensed consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities.” 2019 Registered Direct Offering Warrants As of December 31, 2022 and March 31, 2022, there were 16,841 (168,411 pre reverse split) 2019 registered direct offering warrants outstanding, respectively. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $524 and $12,220 in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $32,150 and $168,230, respectively recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $218 and $12,438, respectively. August 2020 Underwriters’ Warrants As of December 31, 2022 and March 31, 2022, there were 31,808 (318,080 pre reverse split) underwriters’ warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $1,180 and $34,526 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $64,140 and $315,393, respectively, recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $10,055 and $44,581, respectively. February 2021 Registered Direct Offering Warrants As of December 31, 2022 and March 31, 2022, there were 53,262 (532,609 pre reverse split) February 2021 registered direct offering warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $1,952 and $51,581 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022, respectively. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $102,568 and $514,123, respectively recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $13,962 and $65,543, respectively. May 2021 Registered Direct Offering Warrants As of December 31, 2022, there were 594,682 (5,946,810 pre reverse split) May 2021 registered direct offering warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a gain of $4,974 and $634,040 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $1,186,878 and $2,036,440, respectively recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $202,835 and $836,875, respectively. November 2021 Private Placement Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty ( 20 1-for-10 As of December 31, 2022, there were 5,365,911 (7,869,961 pre reverse split) November 2021 Private Placement Warrants outstanding. During the three and nine months ended December 31, 2022, the change of fair value was a loss of $21,927 and $909,283 recognized in the unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2022. During the three and nine months ended December 31, 2021, the change of fair value was a gain of $ 2,151,123 recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since issuance. On November 18, 2022, a holder of November 2021 private placement warrants exercised the warrants on a “cashless” basis. Upon exercise of above mentioned warrants, the Company reduced the fair value of the warrants and increased the additional paid in capital by $1,533. As of December 31, 2022 and March 31, 2022, the fair value of the derivative instrument totaled $344,951 and $1,255,767, respectively. The Company has warrants outstanding as follows giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2021 110,107 110,107 $ 11.60 4.09 Granted 5,985,591 5,985,591 $ 2.11 5.00 Exercised (4,400) (4,400) — — Balance, March 31, 2022 6,091,298 6,091,298 $ 2.28 4.32 Exercised (25,000) (25,000) — — Balance, December 31, 2022 (Unaudited) 6,066,298 6,066,298 $ 2.29 3.81 Restricted Stock Units On October 29, 2020, the Board approved the issuance of an aggregate of 127,273 restricted stock units (“RSUs”) to directors, officers and certain employees as stock compensation for their services for the nine months ended December 31, 2022. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $140,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee. As of the filing date of these unaudited condensed consolidated financial statements, all installment of RSUs with an aggregate of 12,727 (127,273 pre reverse split) was vested and 9,545 (95,457 pre reverse split) was settled by the Company. The Company expects to settle the remaining vested RSUs by issuance of shares of common stock before March 31, 2023 and account for the vested RSUs as an addition to both expenses and additional paid-in capital. Equity Incentive Plan At the 2018 Annual Meeting of Stockholders of the Company held on November 8, 2018, the Company’s stockholders approved the Company’s 2018 Equity Incentive Plan for employees, officers, directors and consultants of the Company and its affiliates. A committee consisting of at least two independent directors would be appointed by the Board or in the absence of such a committee, the board of directors, will be responsible for the general administration of the Equity Incentive Plan. All awards granted under the Equity Incentive Plan will be governed by separate award agreements between the Company and the participants. As of December 31, 2022, the Company has granted an aggregate of RSUs and issued an aggregate of shares upon vest under the Equity Incentive Plan and RSUs were forfeited due to two directors ceased to serve on the board of the Company since November 8, 2018. Exercise of November 2021 Private Placement Warrants On November 18, 2022, a holder of November 2021 private placement warrants exercised the warrants on a “cashless” basis to purchase 10,132 shares of the Company’s common stock as determined in accordance with the formula indicated on the notice of exercise. 1-for- 10 shares reverse split on common stock The Company considered the above transactions after giving a retroactive effect to a 1-for-10 Conversion Price Adjustment for November 2021 Preferred Shares Pursuant to the COD signed by the Company and certain institutional investors in November 2021 Private Placement, the initial conversion price of the series A convertible Preferred Shares was $0.68. If as of the applicable date the conversion price then in effect is greater than the greater of (1) $0.41 (the “floor Price”) (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (2) 85% of the closing bid price on the applicable date (the “Adjustment Price”), the conversion price shall automatically lower to the Adjustment Price accordingly. As the 1-for-10 Adjustments of Exercise Price and Warrant Shares for November 2021 Investors Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty ( 20 1-for-10 | 14. EQUITY Warrants IPO Warrants The registration statement relating to the Company’s initial public offering also included the underwriters’ common stock purchase warrants to purchase 33,794 (337,940 pre reverse split) shares of common stock (“IPO Underwriter’s Warrants”). Each five-year warrant entitles warrant holder to purchase one share of the Company’s common stock at the price of $48.0 ($4.80 pre reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018. As of March 31, 2022, there were 3,794 (37,940 pre reverse split) IPO Underwriter’s Warrants outstanding. Warrants in Offerings The Company adopted the provisions of ASC 815 on determining what types of instruments or embedded features in an instrument held by a reporting entity can be considered indexed to its own stock for the purpose of evaluating the first criteria of the scope exception in ASC 815. Warrants issued in connection with the direct equity offering with exercise prices denominated in US dollars are no longer considered indexed to the Company’s stock, as their exercise prices are not in the Company’s functional currency (RMB), and therefore no longer qualify for the scope exception and must be accounted for as a derivative. These warrants are classified as liabilities under the caption “Derivative liabilities” in the consolidated statements of balance sheets and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. Changes in the liability from period to period are recorded in the consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities.” 2019 Registered Direct Offering Warrants As of March 31, 2022 and March 31, 2021, there were 16,841 (168,411 pre reverse split) and 21,244 (212,440 pre reverse split) 2019 registered direct offering warrants outstanding, respectively. During the year ended March 31, 2022, the change of fair value was a gain of $185,727 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. During the year ended March 31, 2021, the change of fair value was a loss of $1,372,966 recognized in the accompanying consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since March 31, 2020. As of March 31, 2022 and March 31, 2021, the fair value of the derivative instrument totaled $12,438 and $243,840, respectively. August 2020 Underwriters’ Warrants As of March 31, 2022 and March 31, 2021, there were 31,808 (318,080 pre reverse split) underwriters’ warrants outstanding. During the year ended March 31, 2022, the change of fair value was a gain of $352,944 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. During the year ended March 31, 2021, the change of fair value was a loss of $455,162, recognized in the accompanying consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022 and March 31, 2021, the fair value of the derivative instrument totaled $44,581 and $397,525, respectively. February 2021 Registered Direct Offering Warrants As of March 31, 2022 and 2021, there were 53,262 (532,609 pre reverse split) February 2021 registered direct offering warrants outstanding. During the year ended March 31, 2022, the change of fair value was a gain of $572,018 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since March 31, 2021. During the year ended March 31, 2021, the change of fair value was a gain of $117,713 recognized in the accompanying consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022 and March 31, 2021, the fair value of the derivative instrument totaled $65,543 and $637,561, respectively. May 2021 Registered Direct Offering Warrants The Company allocated the proceeds received between the common stock and warrants first to warrants based on the fair value on the date the proceeds were received with the balance to common stock. The value of the warrants was determined using the Black-Scholes valuation model using the following assumptions: volatility 131%; risk free interest rate 0.84%; dividend yield of 0% and expected term of 5 years of the investors Warrants and placement agent Warrants. The volatility of the Company’s common stock was estimated by management based on the historical volatility of its common stock, the risk-free interest rate was based on Treasury Constant Maturity Rates published by the U.S. Federal Reserve for periods applicable to the expected life of the warrants. The expected dividend yield was based on the Company’s current and expected dividend policy and the expected term is equal to the contractual life of the warrants. The value of the warrants was based on the Company’s common stock closing price of $7.2 ($0.72 pre reverse split) on May 13, 2021 which was the date the warrants were issued. Net proceeds were allocated as the follows: Fair value of the warrants $ 3,562,404 Common stock 2,208,649 Total net proceeds $ 5,771,053 Subsequent to the initial recording, the change in the fair value of the warrants, determined under the Black-Scholes valuation model, on each reporting date will result in either an increase or decrease the amount recorded as liability, based on the fluctuations with the Company’s stock price with a corresponding adjustment to other income (or expense). As of March 31, 2022, there were 594,682 (5,946,810 pre reverse split) May 2021 registered direct offering warrants outstanding. During the year ended March 31, 2022, the change of fair value was a gain of $2,725,530 recognized in the consolidated statements of operations and comprehensive loss based on the decrease in fair value of the liabilities since issuance. As of March 31, 2022, the fair value of the derivative instrument totaled $836,875. November 2021 Private Placement Warrants In connection with November 2021 private placement, the company issued 735,295 (7,352,941 pre reverse split) and 55,148 (551,471 pre reverse split) warrants to the investors and placement agents, respectively. The Company allocated the gross proceeds received between the Series A Preferred Stock and warrants issued to the Investors 735,295 (7,352,941 pre reverse split) shares in connection of the sale of Series A Preferred Stock first to warrants based on the fair value on the date the proceeds were received with the remaining balance to Series A Preferred Stock, gross proceeds were allocated as the follows: Fair value of Investor warrants $ 4,060,857 Series A Preferred Stock 939,143 Total gross proceeds 5,000,000 Issuance cost (630,063) Total net proceeds $ 4,369,937 The value of the warrants to the investors and placement agents was determined using the Black-Scholes valuation model using the following assumptions: volatility 126%; risk free interest rate 1.23%; dividend yield of 0% and expected term of 5 years of the Placement Warrants and Investor Warrants. The volatility of the Company’s common stock was estimated by management based on the historical volatility of our common stock, the risk-free interest rate was based on Treasury Constant Maturity Rates published by the U.S. Federal Reserve for periods applicable to the expected life of the warrants, the expected dividend yield was based on the Company’s current and expected dividend policy and the expected term is equal to the contractual life of the warrants. The value of the warrants was based on the Company’s common stock closing price of $6.7 ($0.67 pre reverse split) on the date the warrants were issued. The value of the warrants allocated to derivative liabilities was recorded on insertion date as following: Fair value of investor warrants $ 4,060,857 Fair value of placement agent warrants (i) 310,173 Total fair value of warrants allocated to derivative liabilities $ 4,371,030 (i) The issuance costs for placement agent warrants which was classified as liability were immediately expensed. Subsequent to the initial recording, the change in the fair value of the warrants, determined under the Black-Scholes valuation model, on each reporting date will result in either an increase or decrease the amount recorded as liability, based on the fluctuations with the Company’s stock price with a corresponding adjustment to other income (or expense). During the year ended March 31, 2022, the change of fair value was a gain of $3,115,263 recognized in the consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022, the fair value of the derivative instrument totaled $1,255,767. The Company has warrants outstanding, pre reverse split, as follows: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2020 1,519,602 1,519,602 $ 1.76 3.21 Granted 1,100,609 1,100,609 $ 1.48 5.00 Forfeited (3,132) (3,132) — — Exercised (1,516,010) (1,516,010) — — Balance, March 31, 2021 1,101,069 1,101,069 $ 1.16 4.09 Granted 13,851,222 13,851,222 $ 0.91 5.00 Exercised (44,029) (44,029) — — Balance, March 31, 2022 14,908,262 14,908,262 $ 0.93 4.32 Restricted Stock Units On October 29, 2020, the Board approved the issuance of an aggregate of 127,273 restricted stock units (“RSUs”) to directors, officers and certain employees as stock compensation for their services for the twelve months ended March 31, 2022. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $140,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee. As of the filing date of these consolidated financial statements, all installment of RSUs with an aggregate of 12,727 (127,273 pre reverse split) was vested and 9,545 (95,457 pre reverse split) was settled by the Company. The Company expects to settle the remaining vested RSUs by issuance of shares of common stock within 2022 and account for the vested RSUs as an addition to both expenses and additional paid-in capital. Equity Incentive Plan At the 2018 Annual Meeting of Stockholders of the Company held on November 8, 2018, the Company’s stockholders approved the Company’s 2018 Equity Incentive Plan for employees, officers, directors and consultants of the Company and its affiliates. A committee consisting of at least two independent directors would be appointed by the Board or in the absence of such a committee, the board of directors, will be responsible for the general administration of the Equity Incentive Plan. All awards granted under the Equity Incentive Plan will be governed by separate award agreements between the Company and the participants. As of March 31, 2022, the Company has granted an aggregate of RSUs and issued an aggregate of shares upon vest under the Equity Incentive Plan. And RSUs were forfeited due to two directors ceased to serve on the board of the Company since November 8, 2018. Exercise of 2019 Registered Direct Offering Warrants On April 23, 2021, one of the holders of Series A warrants exercised the warrants to purchase 4,403 (44,029 pre reverse split) shares of the Company’s common stock at an exercise price of $5.0 ($0.50 pre reverse split) per share generating gross proceeds of $22,015 to the Company. May 2021 Registered Direct Offering On May 11, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Investors”) pursuant to which the Company will sell to the Investors, in a registered direct offering, an aggregate of 553,192 (5,531,916 pre reverse split) units (the “Units”), each consisting of 0.1 (one pre reverse split) share (the “Shares”) of the Company’s common stock, par value $0.0001 per share (“Common Stock”) and a warrant to purchase 0.1 (one pre reverse split) share of the Company’s Common Stock (the “Warrants”), at a purchase price of $1.175 per unit, for aggregate gross proceeds to the Company of $6,500,000, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. On May 13, 2021, the Company completed the registered direct offering. The net proceeds to the Company from this offering, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $5.8 million. The Warrants have a term of five years and are exercisable by the holders at any time after the date of issuance at an exercise price of $10.5 ($1.05 pre reverse split) per share. The exercise price and the number of shares issuable upon exercise of the Warrants are subject to an adjustment upon the occurrence of certain events, including, but not limited to, stock splits or dividends, business combinations, sale of assets, similar recapitalization transactions, or other similar transactions. The exercise price of the Warrants is also subject to an adjustment in the event that the Company issues or is deemed to issue shares of Common Stock for less than the applicable exercise price of such Warrants. However, the exercise price of the Warrants shall not be lower than $10.5 ($1.05 pre reverse split) as a result of an adjustment, unless the Company has obtained the stockholder approval. The exercisability of the Warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99%. FT Global Capital, Inc. (“FT Global Capital”) acted as the exclusive placement agent in connection with this offering pursuant to the terms of a placement agency agreement, dated May 11, 2021, between the Company and FT Global Capital (the “Placement Agent Agreement”). Pursuant to the Placement Agent Agreement, the Company agreed to pay FT Global Capital a cash fee equal to seven point five percent (7.5%) of the aggregate proceeds received by the Company from the sale of its securities to the investors introduced to the Company by FT Global Capital. FT Global Capital is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by investors that FT Global Capita had introduced to the Company. In addition to the cash fees, the Company agreed to issue to the Placement Agent warrants to purchase an aggregate of up to seven point five percent (7.5%) of the aggregate number of shares of our Common Stock sold in the offering (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Warrants, exercisable at a price of $10.5 ($1.05 pre reverse split) per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Warrants. In connection with the offering, the Company issued the investors warrants and placement agent warrants to purchase up to 553,192 (5,531,916 pre reverse split) and 41,490 (414,894 pre reverse split) shares of its common stock, respectively. These warrants are exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. November 2021 Private Placement On November 8, 2021, the Company, entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”) pursuant to which the Company will sell to the Investors, in a private placement (the “Private Placement”), an aggregate of $5,000,000 worth of securities of the Company, consisting of up to 5,000 shares (the “Preferred Shares”) of Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) and warrants (the “Investor Warrants”) to initially acquire up to an aggregate number of shares of common stock of the Company, par value $0.0001 per share (the “Common Stock”) that equals to the number of shares of Common Stock to be issued upon conversion of the Preferred Shares at $0.68 per share (the “Initial Conversion Price”) (as converted into the Conversion Shares as defined below, collectively with the shares of the Common Stock from the exercise of the Investor Warrants, the “Warrant Shares”, collectively, the “Warrant Shares”). The purchase price for the Preferred Shares was $1,000 per each Preferred Share (and related Investor Warrant). On November 10, 2021, the Company completed the Private Placement. The net proceeds to the Company from the Private Placement, after deducting the placement agent commissions and other estimated offering expenses payable by the Company, were approximately $4.4 million. The Series A Convertible Preferred Stock is included in mezzanine equity on the consolidated balance sheets, because it is redeemable by the holders upon events of change of control which are not within the Company’s control. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. Pursuant to the certificate of designations for the Series A Preferred Stock (the “COD”), at any time after the initial issuance date, each holder shall be entitled to convert any portion of the outstanding Preferred Shares held by such holder into shares of Common Stock (the “Conversion Shares”) at Initial Conversion Price, which shall be adjusted to the greater of $0.41 per share or 85% of the closing bid price of the Company’s Common Stock reported on the NASDAQ Capital Market on the Applicable Date, which is the earlier of the first date on which the registration statement covering the resale of the Conversion Shares and Warrant Shares is declared effective by the SEC or the first date on which all such shares are eligible to be resold by the Investors pursuant to Rule 144 or Rule 144A promulgated under the Securities Act. The Investor Warrants have a term of five years and are exercisable by the holders at any time after six months and one day FT Global Capital acted as the exclusive placement agent in connection with this Private Placement pursuant to the terms of a placement agency agreement, dated November 7, 2021, between the Company and FT Global Capital (the “Placement Agent Agreement”). Pursuant to the Placement Agent Agreement, the Company agreed to pay FT Global Capital a cash fee equal to 7.5% of the aggregate proceeds received by the Company from the sale of its securities to the Investors. FT Global Capital is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by Investors that FT Global Capital had introduced to the Company. In addition to the cash fees, the Company agreed to issue to the Placement Agent warrants to purchase an aggregate of up to 7.5% of the aggregate number of the Conversion Shares (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Investor Warrants, exercisable at a price of $6.8 ($0.68 pre reverse split) per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Investor Warrants. In connection with the Private Placement, the Company issued warrants to the Investors to purchase up to an aggregate number of shares of common stock that equals to the number of shares of common stock to be issued upon conversion of the Series A Preferred Stock at the Initial Conversion Price. Meanwhile, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre reverse split)shares of common stock at an exercise price of $6.8 ($0.68 pre reverse split) per share, which warrants will be exercisable at any time on or after the date of six months from the issuance date and expire on the fifth-year anniversary of their issuance. Share Swap in purchase of XXTX’s remaining minority interest In October 2021, The Company, Senmiao Consulting, XXTX and its shareholders entered into a Share Swap Agreement, pursuant to which the Company, through Senmiao Consulting, purchased all of the equity shares of XXTX held by its shareholders by issuing a total of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock to XXTX’s Shareholders. Upon closing, the Company, through Senmiao Consulting, owns 100% of the equity interests in XXTX. Common stock issued for consulting services On October 22, 2021, the Company entered into a consulting agreement (the “Consulting Agreement”) with Jolly Good River Group Limited. (the “Consultant”), pursuant to which the Company engaged the Consultant to provide certain market research and business development advisory services for a period of twelve months. As compensation for the services, the Company agreed to issue the Consultant an aggregate of 100,000 (1,000,000 pre reverse split) shares of the Common Stock, par value $0.0001, payable within ten working days from the signing of the Consulting Agreement. As of November 9, 2021, the issuance of 100,000 (1,000,000 pre reverse split)shares of the Company’s common stock has been completed and the Company recorded the consulting fee of $653,000 pursuant to the fair value on November 3, 2021, the grant date. 1-for- 10 shares reverse split on common stock The Company considered the above transactions after giving a retroactive effect to a 1-for-10 Change of ownership interest in a subsidiary On March 23, 2022, Senmiao Consulting, the Company’s 100% owned subsidary terminated the VIE Agreements and purchased Sichuan Senmiao’s 94.5% equity interests with total consideration of zero. As a result, the Company reduce its equity interest in Sichuan Senmiao to 94.5%, and recongnized 5.5% of noncontrolling interest. As no consideration was received, $366,604 which is the difference between the fair value of the consideration received and the amount by which the noncontrolling interest is adjusted was recognized as an addition in additional paid-in capital in accordance with ASC 810-10-45-23 “Change in a parent’s ownership interest in a subsidiary”. |
INCOME TAXES_2
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INCOME TAXES | ||
INCOME TAXES | 15. INCOME TAXES The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income taxes with tax rate of 21%. The State of Nevada does not impose any state corporate income tax. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Tax Act also stablished the Global Intangible Low-Taxed Income (GILTI), a new inclusion rule affecting non-routine income earned by foreign subsidiaries. For the nine months ended December 31, 2022 and 2021, the Company’s foreign subsidiaries in China were operating at loss on a consolidated basis which resulted in no GILTI tax. The Company’s net operating loss for U.S. income taxes from U.S for the nine months ended December 31, 2022 amounted to approximately $0.4 million. As of December 31, 2022, the Company’s net operating loss carryforward for U.S. income taxes was approximately $7.1 million. The net operating loss carryforward will not expire and is available to reduce future years’ taxable income, but limited to 80% of income until utilized. Management believes that the utilization of the benefit from this loss appears uncertain due to the Company’s operating history. Accordingly, the Company has recorded a 100% valuation allowance on the deferred tax asset to reduce the deferred tax assets to zero on the consolidated balance sheets. As of December 31, 2022 and March 31, 2022, valuation allowances for deferred tax assets were approximately $1.5 million and $1.2 million, respectively. Management reviews the valuation allowance periodically and makes changes accordingly. PRC Senmiao Consulting, Sichuan Senmiao, Hunan Ruixi, Ruixi Leasing, Jinkailong (deconsolidated in the year ended March 31, 2022), Yicheng, Jiekai, Youlu and XXTX and its subsidiaries are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. The EIT rate for companies operating in the PRC is 25%. Income taxes in the PRC are consist of: For the Three Months ended For the Nine Months ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Deferred income tax expenses — 4,539 — 4,550 Total income tax expenses $ — $ 4,539 $ — $ 4,550 As of December 31, 2022 and March 31, 2022, the Company’s PRC entities from continuing operations had net operating loss carryforwards of approximately $10.5 million and $8.5 million, respectively, which will expire starting from 2025 and ending in 2027. In addition, allowance for doubtful accounts must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The bad debt allowances are incurred in Company’s PRC subsidiaries and former VIEs which were operating at losses, the Company believes it is more likely than not that its PRC operations will be unable to fully utilize its deferred tax assets related to the net operating loss carryforwards in the PRC. As a result, the Company provided 100% allowance on all deferred tax assets on net operating loss carryforwards in the PRC of $2,732,507 and $2,315,793 related to its continuing operations in the PRC as of December 31, 2022 and March 31, 2022, respectively and provided 100% allowance on all deferred tax assets on allowance for doubtful account of $131,775 and $29,129 related to its continuing operations in the PRC as of December 31, 2022 and March 31, 2022, respectively. The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: December 31, March 31, 2022 2022 (Unaudited) Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,732,507 $ 2,315,793 Net operating loss carryforwards in the U.S. 1,508,215 1,234,789 Allowance for doubtful account 131,775 29,129 Less: valuation allowance (4,372,497) (3,579,711) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 42,746 $ 46,386 Deferred tax liabilities, net $ 42,746 $ 46,386 As of December 31, 2022 and March 31, 2022, the Company’s PRC entities associated with discontinued operations had net operating loss carryforwards of approximately $10.3 million and $10.3 million, which will start to expire from 2024 to 2027. In addition, allowance for doubtful accounts must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The Company reviews deferred tax assets for a valuation allowance based upon whether it is more likely than not that the deferred tax asset will be fully realized. As of December 31, 2022 and March 31, 2022, full valuation allowance is provided against the deferred tax assets related to the Company’s discontinued operations based upon management’s assessment as to their realization. The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: December 31, 2022 March 31, 2022 (Unaudited) Net operating loss carry forwards in the PRC $ 2,595,919 $ 2,595,919 Less: valuation allowance (2,595,919) (2,595,919) Total $ — $ — | 15. INCOME TAXES The United States of America The Company is incorporated in the State of Nevada in the U.S., and is subject to U.S. federal corporate income taxes with tax rate of 21%. The State of Nevada does not impose any state corporate income tax. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The Tax Act also stablished the Global Intangible Low-Taxed Income (GILTI), a new inclusion rule affecting non-routine income earned by foreign subsidiaries. For the years ended March 31, 2022 and 2021, the Company’s foreign subsidiaries in China were operating at loss on a consolidated basis which resulted in no GILTI tax. The Company’s net operating loss for U.S. income taxes from U.S for the year ended March 31, 2022 amounted to approximately $2.3 million. As of March 31, 2022, the Company’s net operating loss carryforward for U.S. income taxes was approximately $5.9 million. The net operating loss carryforward will not expire and is available to reduce future years’ taxable income, but limited to 80% of income until utilized. Management believes that the utilization of the benefit from this loss appears uncertain due to the Company’s operating history. Accordingly, the Company has recorded a 100% valuation allowance on the deferred tax asset to reduce the deferred tax assets to zero on the consolidated balance sheets. As of March 31, 2022 and 2021, valuation allowances for deferred tax assets were approximately $1.23 million and $0.80 million, respectively. Management reviews the valuation allowance periodically and makes changes accordingly. PRC Senmiao Consulting, Sichuan Senmiao, Hunan Ruixi, Ruixi Leasing, Jinkailong (deconsolidated for the year ended March 31, 2022), Yicheng, Jiekai, Youlu and XXTX and its subsidiaries are subject to PRC Enterprise Income Tax (“EIT”) on the taxable income in accordance with the relevant PRC income tax laws. The EIT rate for companies operating in the PRC is 25%. Income taxes in the PRC are consist of: For the Years ended March 31, 2022 2021 Current income tax expenses $ 4,566 $ 8,332 Deferred income tax expenses — — Total income tax expenses $ 4,566 $ 8,332 Below is a reconciliation of the statutory tax rate to the effective tax rate: For the Years Ended March 31, 2022 2021 U.S. Statutory tax rate 21.0 % 21.0 % Differential of PRC statutory tax rate 4.0 % 4.0 % Permanent difference of write-off of receivables from guarantee of loans (0.5) % (2.4) % Permanent difference of US (income) expenses not (taxable) deductible in PRC 17.8 % (3.7) % Valuation allowance on deferred income tax asset (43.6) % (17.2) % Others 1.2 % (1.8) % Effective tax rate (0.1) % (0.1) % As of March 31, 2022 and 2021, the Company’s PRC entities from continuing operations had net operating loss carryforwards of approximately $8.5 million and $1.7 million, respectively, which will expire starting from 2024 and ending in 2026. In addition, allowance for doubtful accounts must be approved by the Chinese tax authority prior to being deducted as an expense item on the tax return. The bad debt allowances are incurred in Company’s PRC subsidiaries and former VIEs which were operating at losses, the Company believes it is more likely than not that its PRC operations will be unable to fully utilize its deferred tax assets related to the net operating loss carryforwards in the PRC. As a result, the Company provided 100% allowance on all deferred tax assets on net operating loss carryforwards in the PRC of $2,315,793 and $415,533 related to its continuing operations in the PRC as of March 31, 2022 and March 31, 2021, respectively and provided 100% allowance on all deferred tax assets on allowance for doubtful account of $29,129 and $1,245 related to its continuing operations in the PRC as of March 31, 2022 and March 31, 2021, respectively. The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: March 31, March 31, 2022 2021 Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,315,793 $ 415,533 Net operating loss carryforwards in the U.S. 1,234,789 754,502 Allowance for doubtful account 29,129 1,245 Less: valuation allowance (3,579,711) (1,171,280) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 46,386 $ 45,146 Deferred tax liabilities, net $ 46,386 $ 45,146 As of March 31, 2022 and March 31, 2021, the Company’s PRC entities associated with discontinued operations had net operating loss carryforwards of approximately $17.8 The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: March 31, 2022 March 31, 2021 Net operating loss carryforwards in the PRC $ 2,595,919 $ 3,802,496 Allowance for doubtful accounts — 20,190 Less: valuation allowance (2,595,919) (3,822,686) $ — $ — |
CONCENTRATION_2
CONCENTRATION | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
CONCENTRATION | ||
CONCENTRATION | 16. CONCENTRATION Major Suppliers For the three months ended December 31, 2022, three suppliers accounted for approximately 19.7%, 12.0% and 11.8% of the total costs of revenue. For the nine months ended December 31, 2022, two suppliers accounted for approximately 20.3% and 12.0% of the total cost of revenues. For the three months ended December 31, 2021, two suppliers accounted for approximately 35.1%, 19.8% of the total costs of revenue from continuing operations of the Company. For the nine months ended December 31, 2021, three suppliers accounted for approximately 30.1%, 18.1% and 16.9% of the total cost of revenues from continuing operations of the Company. For the three and nine months ended December 31, 2021, one supplier accounted for approximately 18.1% and 17.4% of the total costs of revenue from discontinued operations of the Company. | 16. CONCENTRATION Major Suppliers For the year ended March 31, 2022, three suppliers accounted for approximately 25.43%,14.97%, and 14.17% of the total costs of revenue from continuing operations of the Company, and one supplier accounted for approximately 18.18% of the total cost of revenues for discontinued operations of the Company. |
RELATED PARTY TRANSACTIONS AN_6
RELATED PARTY TRANSACTIONS AND BALANCES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
RELATED PARTY TRANSACTIONS AND BALANCES | 17. RELATED PARTY TRANSACTIONS AND BALANCES 1. Related Party Balances 1) Account receivable, a related party As of December 31, 2022, account receivable from a related party from the Company’s continuing operations of $9,816 represented balance due from operating lease revenue recognized from Jinkailong, the Company’s equity investee company. 2) Due from related parties As of December 31, 2022, balances due from related parties from the Company’s continuing operations of $5,992,152, net of allowance, represented balance due from Jinkailong, the Company’s equity investee company as result of Jinkailong’s deconsolidation, of which, $5,351,735 is to be repaid over a period from January 2024 to December 2026, classified as due from related party, noncurrent (refer to Note 4). In addition, another $18,882 represented receivable due from Youlu, the Company’s former VIE as result of Youlu’s deconsolidation. During the nine months ended December 31, 2022, the Company recorded additional allowances against the balance due from Jinkailong of $464,708. 3) Due to a stockholder Due to a stockholder comprised of amounts payable to a stockholder named below and are unsecured, interest free and due on demand. December 31, March 31, 2022 2022 (Unaudited) Jun Wang (Stockholder of the Company)* $ 17,360 $ 18,886 Total due to a stockholder 17,360 18,886 Total due to a stockholder – discontinued operations (17,360) (18,886) Total due to a stockholder – continuing operations $ — $ — * In December 2017, the Company entered into a loan agreement with one stockholder, who agreed to grant lines of credit of approximating $159,000 to the Company for five years. The lines of credit are non-interest bearing, effective from January 2017. 4) Due to related parties and affiliates December 31, March 31, 2022 2022 (Unaudited) Loan payable to a related party (i) $ 114,425 $ 9,897 Others (ii) 2,812 1,785 Total due to related parties and affiliates $ 117,237 $ 11,682 (i) As of December 31, 2022 and March 31, 2022, the balances represented borrowings from Xi Wen, the CEO of the Company, of which, $114,425 and $9,897 are unsecured, interest free and due on demand, respectively. (ii) As of December 31, 2022 and March 31, 2022, the balances of $2,812 and $1,785 , respectively, represented payables to Jinkailong, the Company’s equity investee company, for operational purposes. Interest expense for the three and nine months ended December 31, 2022 and 2021 were $0. 4) Operating lease right-of-use assets, net, related parties and Operating lease liabilities - related parties December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 27,519 $ 446,372 Lease II (ii) 112,268 69,534 Total Operating lease right-of-use assets - related parties $ 139,787 $ 515,906 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 91,732 $ 246,516 Lease II (ii) 71,826 84,265 Total Operating lease liabilities, current - related parties $ 163,558 $ 330,781 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ — $ 211,953 Lease II (ii) 52,205 14,943 Total Operating lease liabilities, non-current - related parties $ 52,205 $ 226,896 (i) The Company entered into two office lease agreements with Hong Li, supervisor of Sichuan Senmiao, which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were updated with a leasing term from April 1, 2020 to March 31, 2023. On March 1, 2021, the Company entered into an additional office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. In October 2022, the Company terminated the leases signed on March 1, 2021 and April 1, 2021 as mentioned above. (ii) In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed on June 2022 which extended the original lease to May 2025. 2. Related Party Transactions For the three and nine months ended December 31, 2022, the Company incurred $40,490 and $148,999, respectively, in rental expenses to Hong Li, supervisor of Sichuan Senmiao, pursuant to four office lease agreements. For the three and nine months ended December 31, 2021, the Company incurred $62,353 and $176,652, respectively, in rental expenses to this related party. For the three and nine months ended December 31, 2022, the Company incurred $11,557 and $46,427, respectively, in rental expenses to Dingchentai, a company where one of the Company’s independent directors serves as legal representative and general manager. For the three and nine months ended December 31, 2021, the Company incurred $11,705 and $34,153, respectively, in rental expenses to this related party. In June 2019 and January 2020, Jinkailong, the Company’s equity investee company entered into two automobile maintenance services contracts with Sichuan Qihuaxin Automobile Services Co., Ltd and Sichuan Yousen Automobile Maintenance Service Co., Ltd, which companies are controlled by one of the non-controlling shareholders of Jinkailong. During the three and nine months ended December 31, 2022, the Company did not incur automobile maintenance fees to those companies as mentioned above, respectively. During the three and nine months ended December 31, 2021, Jinkailong incurred automobile maintenance fees of $242,046 and $776,182 to those companies as mentioned above, respectively from discontinued operation. The Company had reached cooperation with Jinkailong, the Company’s equity investee company that the drivers who leased automobile from Jinkailong completed their online ride-hailing requests and orders through the company’s ride-hailing platform, and the company will pay Jinkailong a certain promotion service fee. During the three and nine months ended December 31, 2022, the company incurred promotion fee of $19,483 and $87,692 to Jinkailong, respectively. During the three and nine months ended December 31, 2021, the company incurred promotion fee of $19,478 and $524,633 to Jinkailong, which was eliminated in the loss of continuing operations of the unaudited condensed consolidated financial statements. During the three and nine months ended December 31, 2022, Corenel leased automobiles to Jinkailong, the Company’s equity investee company and generated revenues of $30,748 and $323,321, and Jiekai leased automobiles from Jinkailong and had a rental cost of $185,254 and $333,756, respectively. During the three and nine months ended December 31, 2021, Corenel and Yicheng leased 370 automobiles to Jinkailong and generated revenues of $362,529 and $914,513, respectively, which was eliminated in the loss of continuing operations of the unaudited condensed consolidated financial statements. During the three and nine months ended December 31, 2021, Hunan Ruixi and Yicheng had loans due from Jinkailong, the Company’s equity investee company, and had interest income of $119,215 and $327,808, respectively which was eliminated in the loss of continuing operations of the unaudited condensed consolidated financial statements. | 17. RELATED PARTY TRANSACTIONS AND BALANCES 1. Related Party Balances 1) Due from related parties As of March 31, 2022, balances due from related parties from the Company’s continuing operations of $7,298,208 represented balance due from Jinkailong as result of Jinkailong’s deconsolidation, of which, $6,635,746 is to be repaid over a period from April 2023 to December 2026, classified as due from related parties, noncurrent (refer to Note 5). In addition, another $19,874 represented receivable due from Youlu as result of Youlu’s deconsolidation. As of March 31, 2021, balances due from related parties of $24,311 from the Company’s discontinued operation represented operation costs of three related parties paid by the Company on their behalf, amounts received by the Company on behalf of a related party for refund of insurance claims, and amounts collected by a related party on behalf of the Company from the automobile purchasers, including certain installment payments and facilitation fees. In addition, another $15,261 represent advances to a non-controlling shareholder of Hunan Ruixi for operational purposes as of March 31, 2021. The balances due from related parties were all non-interest bearing and due on demand. 2) Due to a stockholder Due to a stockholder comprised of amounts payable to a stockholder named below and are unsecured, interest free and due on demand. March 31, March 31, 2022 2021 Jun Wang $ 18,886 $ 48,795 Total due to a stockholder 18,886 48,795 Total due to a stockholder – discontinued operations (18,886) (48,795) Total due to a stockholder – continuing operations $ — $ — 3) Due to related parties and affiliates March 31, March 31, 2022 2021 Loan payable to related parties (i) $ 9,897 $ 182,281 Others (ii) 1,785 170,546 Total due to related parties and affiliates 11,682 352,827 Total due to related parties and affiliates – discontinued operations — (269,918) Total due to related parties and affiliates – continuing operations $ 11,682 $ 82,909 (i) As of March 31, 2022 and March 31, 2021, the balances represented borrowings from a related party, of which, $ 9,897 and $ 78,708 are unsecured, interest free and due on demand, respectively, from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 103,574 represented borrowings from two related parties, which are unsecured, interest free and due on demand, respectively, from the Company’s discontinued operations. (ii) As of March 31, 2022 and March 31, 2021, the balances of $1,785 and $4,201 , respectively, represented payables to a related party for operational purposes from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 166,345 represented payables to four other related parties for operational purposes from the Company’s continuing operations. These balances are interest free and due on demand. Interest expense for the years ended March 31, 2022 and 2021 were $0. 2. Related Party Transactions In December 2017, the Company entered into loan agreements with two stockholders, who agreed to grant lines of credit of approximating $955,000 and $159,000, respectively, to the Company for five years. The lines of credit are non-interest bearing, effective from January 2017. The Company has fully settled the loan due to one of them as of March 31, 2021. As of March 31, 2022 and 2021, the outstanding balances due to the other stockholder in the discontinued operations were $18,886 and $48,795, respectively. On July 28 and August 17, 2021, the Company entered into two loan agreements with its CEO, who agreed to loan $800,000 in total to the Company. The loans are non-interest bearing, effective from July 28, 2021 and August 17, 2021, which shall be paid within six months and three months, respectively. As of March 31, 2022, the loans were fully settled. The Company entered into two office lease agreements with a stockholder of Sichuan Senmiao, which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were amended with a leasing term from April 1, 2020 to March 31, 2023. On March 1, 2021, the Company entered into an additional office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. As of March 31, 2022 and March 31, 2021, operating lease right-of-use assets of these leases amounted to $446,372 and $475,408, respectively. As of March 31, 2022 and March 31, 2021, current leases liabilities of these leases amounted to $246,516 and $161,818, respectively. Non-current lease liabilities of these leases amounted to $211,953 and $285,371 as of March 31, 2022 and March 31, 2021, respectively. For the years ended March 31, 2022 and 2021, the Company incurred $237,968 and $121,012, respectively, in rental expenses to this related party. In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of our independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019. As of March 31, 2022 and March 31, 2021, operating lease right-of-use assets of this lease amounted $69,534 and $104,959, respectively. As of March 31, 2022, current leases liabilities and non-current leases liabilities of this lease amounted $84,265 and $14,943, respectively. As of March 31, 2021, current leases liabilities and non-current leases liabilities of this lease in the continuing operations amounted $81,908 and $56,178, respectively. For the years ended March 31, 2022 and 2021, the Company incurred $45,651 and $44,169, respectively, in rental expenses to this related party. In June 2019 and January 2020, the Company’s former VIE entered into two automobile maintenance services contracts with Sichuan Qihuaxin Automobile Services Co., Ltd and Sichuan Yousen Automobile Maintenance Service Co., Ltd, which companies are controlled by one of the non-controlling shareholders of Jinkailong. During the years ended March 31, 2022 and March 31, 2021, the Company incurred automobile maintenance fees of $942,581 and $575,136 to those companies as mentioned above, respectively. |
LEASES_2
LEASES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
LEASES | ||
LEASES | 18. LEASES Lessor The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. Revenue recognition section of Note 3 (r), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the year ended March 31, 2020. Lessee As of December 31, 2022 and March 31, 2022, the Company has engaged in offices and showroom leases which were classified as operating leases. The Company leased automobiles under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. In addition, the Company had automobiles leases which were classified as finance lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 6.0%, which is determined using an incremental borrowing rate with similar term in the PRC. As of December 31, 2022, the weighted-average remaining operating and finance lease term of its existing leases is 2.41 and 2.75 years, respectively. Operating and finance lease expenses consist of the following: For the Three Months Ended For the Nine Months Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Classification (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost Automobile lease costs Cost of revenues $ 564,646 501,847 1,622,601 1,205,011 Lease expenses Selling, general and administrative 88,493 165,263 313,753 434,733 Finance lease cost Amortization of leased asset Cost of revenue 73,991 834,807 203,044 2,419,695 Amortization of leased asset General and administrative 62,255 76,187 196,890 522,605 Interest on lease liabilities Interest expenses on finance leases 7,602 97,919 15,903 313,766 Total lease expenses $ 796,987 1,676,023 2,352,191 4,895,810 Total Lease expenses – discontinued operations — 989,573 — 3,240,386 Total Lease expenses- continuing operations $ 796,987 686,450 2,352,191 1,655,424 Operating lease expenses for automobiles from continuing operations totaled $564,646 and $417,519 for the three months ended December 31, 2022 and 2021, respectively. Operating lease expenses for automobiles from continuing operations totaled $1,622,601 and $941,818 for the nine months ended December 31, 2022 and 2021, respectively. Operating lease expenses for automobiles from discontinued operations totaled $84,328 and $263,193 for the three and nine months ended December 31, 2021. Operating lease expenses for offices and showroom leases from continuing operations totaled $88,493 and $313,753 for the three and nine months ended December 31, 2022, respectively. Operating lease expenses for offices and showroom leases from continuing operations totaled $141,208 and $367,690 for the three and nine months ended December 31, 2021, respectively. Operating lease expenses for offices and showroom leases from discontinued operations totaled $24,055 and $67,043 for the three and nine months ended December 31, 2021, respectively. Interest expenses on finance leases from continuing operations totaled $7,602 and $15,903 for the three and nine months ended December 31, 2022, respectively. Interest expenses on finance leases from continuing operations totaled $13,612 and $44,369 for the three and nine months ended December 31, 2021, respectively. Interest expenses on finance leases from discontinued operations totaled $84,307 and $269,397 for the three and nine months ended December 31, 2021, respectively. The following table sets forth the Company’s minimum lease payments in future periods: *Operating lease Finance lease payments payments Total Twelve months ending December 31, 2023 $ 265,601 278,610 544,211 Twelve months ending December 31, 2024 95,690 269,675 365,365 Twelve months ending December 31, 2025 63,120 202,256 265,376 Twelve months ending December 31, 2026 14,982 — 14,982 Total lease payments 439,393 750,541 1,189,934 Less: discount (22,205) (58,657) (80,862) Present value of lease liabilities $ 417,188 691,884 1,109,072 *As of December 31, 2022, the outstanding balance of operating lease payments due to related parties was $215,763. | 18. LEASES Lessor The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. Revenue recognition section of Note 3 (r), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the year ended March 31, 2020. Lessee As of March 31, 2022 and March 31, 2021, the Company has engaged in offices and showroom leases which were classified as operating leases. The Company leased automobiles under operating lease agreements with a term shorter than twelve months which it elected not to recognize lease assets and lease liabilities under ASC 842. Instead, the Company recognized the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. In addition, the Company had automobiles leases which were classified as finance lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognized the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The ROU assets and lease liabilities are determined based on the present value of the future minimum rental payments of the lease as of the adoption date, using an effective interest rate of 6.0%, which is determined using an incremental borrowing rate with similar term in the PRC. As of March 31, 2022, the average remaining operating and finance lease term of its existing leases is 1.16 and 1.09 years, respectively. Operating and finance lease expenses consist of the following: For the Years Ended Classification March 31, 2022 March 31, 2021 Operating lease cost Automobile lease costs Cost of revenues 1,749,959 42,306 Lease expenses Selling, general and administrative $ 585,719 $ 396,276 Finance lease cost Amortization of leased asset Cost of revenues 2,844,167 2,441,873 Amortization of leased asset General and administrative 974,422 1,656,336 Interest on lease liabilities Interest expenses on finance leases 333,210 733,202 Total lease expenses 6,487,477 5,269,993 Total lease expenses – discontinued operations 4,150,972 4,748,180 Total Lease expenses- continuing operations $ 2,336,505 $ 521,813 Operating lease expenses for automobiles from continuing operations totaled $1,390,767 and $42,306 for the year ended March 31, 2022 and 2021, respectively. Operating lease expenses for automobiles from discontinued operations totaled $359,192 and $0 for the year ended March 31, 2022 and 2021, respectively. Operating lease expenses for offices and showroom leases from continuing operations totaled $460,209 and $245,376 for the years ended March 31, 2022 and 2021, respectively. Operating lease expenses offices and showroom leases from discontinued operations totaled $125,510 and $150,900 for the years ended March 31, 2022 and 2021, respectively. Interest expenses on finance leases from continuing operations totaled $55,844 and $46,518 for the years ended March 31, 2022 and 2021, respectively. Interest expenses on finance leases from continuing operations totaled $277,366 and $686,684 for the years ended March 31, 2022 and 2021, respectively. The following table sets forth the Company’s minimum lease payments in future periods: *Operating lease Finance lease payments payments Total Twelve months ending March 31, 2023 $ 386,942 $ 317,499 $ 704,441 Twelve months ending March 31, 2024 194,311 1,403 195,714 Twelve months ending March 31, 2025 64,268 — 64,268 Twelve months ending March 31, 2026 52,585 — 52,585 Total lease payments 698,106 318,902 1,017,008 Less: discount (42,342) (12,969) (55,311) Present value of lease liabilities $ 655,764 $ 305,933 $ 961,697 *As of March 31, 2022, the outstanding balance of operating lease payments due to related parties was $557,677. |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Contingencies In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers’ default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance, when necessary, as the Company is the guarantor of the loans. Purchase commitments On February 22, 2021, the Company entered into one purchase contract with an automobile dealer to purchase a total of 200 automobiles for the amount of approximately $3.2 million. Pursuant to the contract, the Company required to purchase 100 automobiles in cash with the amount of approximately $1.6 million. The remaining 100 automobiles purchase commitment with the amount of approximately $1.6 million shall be completed with financing option through the dealer’s designated financial institutions. As of the date of filing of this unaudited condensed consolidated financial statements, 100 automobiles of the contract signed in February 2021 have been purchased in cash and delivered to us. As the Company are in process of getting approval from the dealer’s designated financial institutions in financing the 100 automobiles’ purchase, there is no clear timing schedule for completing the remaining purchase commitment with this automobile dealer. However, the Company expects the purchase to be completed by June 30, 2023. On September 23, 2022, the Company entered into a purchase contract with an automobile dealer to purchase a total of 100 automobiles for the amount of approximately $1.5 million. As of the date of filing of this unaudited condensed consolidated financial statements, the Company has remit approximately $0.7 million as purchase prepayments, and expect to fulfill the purchase commitment before March 31, 2023. Contingent liabilities for automobile purchasers Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. In December 2019, a novel strain of coronavirus, or COVID-19, surfaced and it has spread rapidly to many parts of China and other parts of the world, including the United States. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Because substantially all of the Company’s operations are conducted in China, the COVID-19 outbreak has materially and adversely affected, and may continue to affect, the Company’s business operations, financial condition and operating results for 2021 and 2022, including but not limited to decrease in revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. Some of the Company’s customers exited the ride-hailing business and rendered their automobiles to the Company for sublease or sale to generate income or proceeds to cover payments owed to financial institutions and the Company. For the nine months ended December 31, 2022 and 2021, the Company recognized an estimated provision loss of approximately $7,284 and $15,005, respectively, for drivers who exited the ride-hailing business were not able to make the monthly payments from continuing operations. For the nine months ended December 31, 2021, the Company recognized an estimated provision loss of approximately $11,140, for the guarantee services for drivers who exited the ride-hailing business were not able to make the monthly payments from discontinued operations. As of December 31, 2022, the maximum contingent liabilities Hunan Ruixi would be exposed to was approximately $47,000, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. The Company estimated the fair market value of the collateral to be approximately $1,900 as of December 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 4.1% of the maximum contingent liabilities. Contingent liability of Jinkailong As the Company holds 35% of equity interest of Jinkailong through Hunan Ruixi, and has not make any consideration towards to the investment. In accordance with PRC’s company registry compliance, the Company will subject to the maximum amount of RMB3.5 million (approximately $507,000) of which is equivalent to 35% of liabilities in case Jinkailong is liquidated. As of December 31, 2022, the maximum contingent liabilities of Jinkailong, the Company’s equity investee company and former VIE, would be exposed to was approximately $4.8 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. Jinkailong estimated the fair market value of the collateral to be approximately $2.8 million as of December 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 59% of the maximum contingent liabilities. Meanwhile, approximately $3.5 million, including interests of approximately $281,000, due to financial institutions, of all the automobile purchases Jinkailong serviced were past due mainly due to the COVID-19 pandemic in China in prior years. Besides, as of December 31, 2022, due to Jinkailong has undertaken the joint and several liability guarantee for all loans of Langyue Automobile Service Co., Ltd. from Chengdu Industrial Impawn Co., Ltd (“Impawn”) for certain historical business, Jinkailong may be required to pay all the outstanding balance of approximately $882,000 to Impawn in the future. From time to time, the Company and its equity investee company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. The total amount of reasonable possible losses with the respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. | 19. COMMITMENTS AND CONTINGENCIES Contingencies In measuring the credit risk of guarantee services to automobile purchasers, the Company primarily reflects the “probability of default” by the automobile purchasers on its contractual obligations and considers the current financial position of the automobile purchasers and its likely future development. The Company manages the credit risk of automobile purchasers by performing preliminary credit checks of each automobile purchaser and ongoing monitoring every month. By using the current credit loss model, management is of the opinion that the Company is bearing the credit risk to repay the principal and interests to the financial institutions if automobile purchasers default on their payments for more than three months. Management also periodically re-evaluates probability of default of automobile purchasers to make adjustments in the allowance, when necessary, as the Company is the guarantor of the loans. Contingent liabilities for automobile purchasers Historically, most of the automobile purchasers would pay the Company their previous defaulted amounts within one to three months. In December 2019, a novel strain of coronavirus, or COVID-19, surfaced and it has spread rapidly to many parts of China and other parts of the world, including the United States. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Because substantially all of the Company’s operations are conducted in China, the COVID-19 outbreak has materially and adversely affected, and may continue to affect, the Company’s business operations, financial condition and operating results for 2021 and 2022, including but not limited to decrease in revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. Some of the Company’s customers exited the ride-hailing business and rendered their automobiles to the Company for sublease or sale to generate income or proceeds to cover payments owed to financial institutions and the Company. For the years ended March 31, 2022 and 2021, the Company recognized an estimated provision loss of approximately $8,000 and $40,504, respectively, for drivers who exited the ride-hailing business were not able to make the monthly payments from continuing operations. For the years ended March 31, 2022 and 2021, the Company recognized an estimated provision loss of approximately $716 and $158,100, respectively, for the guarantee services for drivers who exited the ride-hailing business were not able to make the monthly payments from discontinued operations. As of March 31, 2022, the maximum contingent liabilities Hunan Ruixi would be exposed to was approximately $0.8 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. The Company estimated the fair market value of the collateral to be approximately $0.7 million as of March 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 90% of the maximum contingent liabilities. Contingent liability of Jinkailong As of March 31, 2022, the maximum contingent liabilities of Jinkailong, the Company’s equity investee company and former VIE, would be exposed to was approximately $6.3 million, assuming all the automobile purchasers were in default. Automobiles are used as collateral to secure the payment obligations of the automobile purchasers under the financing agreements. Jinkailong estimated the fair market value of the collateral to be approximately $4.2 million as of March 31, 2022, based on the market price and the useful life of such collateral, which represents approximately 66% of the maximum contingent liabilities. Meanwhile, approximately $4.8 million, including interests of approximately $286,000, due to financial institutions, of all the automobile purchases Jinkailong serviced were past due mainly due to the COVID-19 pandemic in China in prior years. On May 25, 2018, Chengdu Industrial Impawn Co., Ltd (“Impawn”) signed a pledge and pawn contract (the “Master Contact”) with Langyue, pursuant to which, Impawn shall provide loans to Langyue up to RMB20 million (approximately $2.9 million). In connection with the Master Contract, Jinkailong entered into a guaranty with Impawn and agreed to provide guarantee on all the payments (including principal, interests, compensations and other expenses) of Langyue jointly and severally with seven other guarantors, one of which is a shareholder of Jinkailong. Langyue used RMB7,019,652 (approximately $1,003,000) of the loans from Impawn and re-loaned it to automobile purchasers referred by Jinkailong from June 2018 to September 2018, which were also guaranteed by Jinkailong. Langyue did not pay Impawn the monthly installment of June 2020 timely. In July 2020, Impawn sent the Collection Letter and Notice to Langyue to demand payment of the interest and penalty of RMB100,300 (approximately $14,330). On September 18, 2020, Impawn initiated a legal action with the People’s Court of Sichuan Pilot Free Trade Zone (the “Court”) for an order to collect and enforce the repayment of the total outstanding principal, interest and penalty for an aggregate of RMB9,992,728 (approximately $1,428,000) and other expenses by freezing all bank accounts of Langyue and all related guarantors. On October 14, 2020, the cash in the bank accounts of Jinkailong, totaling RMB175,335 (approximately $25,050) was frozen by the Court and became restricted cash accordingly. On January 7, 2021, frozen bank account mentioned above has been fully released. On December 24, 2020, Jinkailong, a shareholder of Jinkailong and Impawn signed a settlement agreement (“Settlement Agreement”). Impawn agreed to release the pledge of Jinkailong’s 75 automobiles, provided that Jinkailong and such shareholder repay an aggregate of RMB4,026,594 (approximately $635,000) in monthly installments over 35 months. In addition, upon the initial payment of RMB600,000 (approximately $94,000) by Jinkailong and such shareholder, Impawn will request the court to release the frozen bank accounts of Jinkailong. The Settlement Agreement further provided that it did not release the guarantee obligations of Jinkailong and in the event Langyue’s loan was not fully repaid at the end of the 35 months, Impawn reserved the right to pursue further actions against Jinkailong and such shareholder for the outstanding balance of the loan. As of March 31, 2022, the original maximum contingent liabilities related to the loans from Langyue to automobile purchasers which Jinkailong would be exposed to was approximately RMB350,000 (approximately $55,000), which has been included in the amount of contingent liabilities of automobile purchasers as mentioned above. Jinkailong will collect monthly installment payments from online ride-hailing drivers who lease those 75 automobiles to repay for the remaining balance of Impawns and recognize guarantee expenses if any. However, as Jinkailong has undertaken the joint and several liability guarantee for all of Langyue’s loans from Impawn, Jinkailong may be required to pay all the outstanding balance of approximately $1,032,000 to Impawn in the future. As the Company holds 35% of equity interest of Jinkailong through Hunan Ruixi, and has not make any consideration towards to the investment. In accordance with PRC’s company registry compliance, the Company will subject to the maximum amount of RMB3.5 million (approximately $570,000) of which is equivalent to 35% of liabilities in case Jinkailong is liquidated. From time to time, the Company and its equity investee company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. The total amount of reasonable possible losses with the respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. |
SEGMENT INFORMATION_2
SEGMENT INFORMATION | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SEGMENT INFORMATION | ||
SEGMENT INFORMATION | 20. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. By assessing the qualitative and quantitative criteria established by Accounting Standards Codification (“ASC”) 280, “Segment Reporting”, the Company considers itself to be operating in two reportable segments which comprise of automobile transaction and related services and online ride-hailing platform. The segments are organized based on type of service offered. The following tables present the summary of each segment’s revenue, loss from operations, loss before income taxes and net loss which is considered as a segment operating performance measure, for the three and nine months ended December 31, 2022 and 2021: For the Three Months ended December 31, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 930,625 $ 810,295 $ — $ 1,740,920 Interest income $ 467 $ 64 $ 13 $ 544 Depreciation and amortization $ 429,419 $ 12,128 $ 21,638 $ 463,185 Loss from operations $ (999,958) $ (69,672) $ (259,746) $ (1,329,376) Loss before income taxes $ (700,414) $ (56,667) $ (229,188) $ (986,269) Net loss $ (700,414) $ (56,667) $ (229,188) $ (986,269) Capital expenditure $ 1,238,504 $ — $ — $ 1,238,504 For the Nine Months ended December 31, 2022 Online ride- Automobile hailing Transaction and platform Related Services Services Unallocated Consolidated Revenues $ 3,353,400 $ 2,970,518 $ — $ 6,323,918 Interest income $ 1,292 $ 168 $ 57 $ 1,517 Depreciation and amortization $ 1,470,335 $ 47,594 $ 63,298 $ 1,581,227 Loss from operations $ (2,854,231) $ (262,097) $ (1,238,849) $ (4,355,177) Income (loss) before income taxes $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Net income (loss) $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Capital expenditure $ 1,240,404 $ — $ — $ 1,240,404 For the three months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 2,525,893 $ 1,017,156 $ — $ 3,543,049 $ 1,882,930 $ 1,660,119 Interest income $ 618 $ 72 $ 81 $ 771 $ 288 $ 483 Interest expense $ 16,451 $ 24 $ — $ 16,475 $ 16,475 $ — Depreciation and amortization $ 1,425,441 $ 8,058 $ 3,179 $ 1,436,678 $ 886,651 $ 550,027 Loss from operations $ (1,289,884) $ (629,177) $ (979,941) $ (2,899,002) $ (390,710) $ (2,508,292) Income (loss) before income taxes $ (1,069,871) $ (792,769) $ 1,735,058 $ (127,582) $ (418,355) $ 290,773 Net income (loss) $ (1,074,410) $ (792,769) $ 1,735,058 $ (132,121) $ (418,355) $ 286,234 Capital expenditure $ 1,321,226 $ — $ — $ 1,321,226 $ — $ 1,321,226 For the nine months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 6,631,579 $ 1,617,454 $ — $ 8,249,033 $ 5,096,441 $ 3,152,592 Interest income $ 1,198 $ 785 $ 389 $ 2,372 $ 514 $ 1,858 Interest expense $ 37,587 $ 6,536 $ — $ 44,123 $ 38,251 $ 5,872 Depreciation and amortization $ 4,269,755 $ 23,135 $ 9,580 $ 4,302,470 $ 2,857,864 $ 1,444,606 Loss from operations $ (3,606,376) $ (6,358,532) $ (1,813,645) $ (11,778,553) $ (2,182,402) $ (9,596,151) Income (loss) before income taxes $ (3,520,754) $ (6,649,325) $ 2,549,947 $ (7,620,132) $ (2,418,757) $ (5,201,375) Net income (loss) $ (3,525,304) $ (6,649,325) $ 2,549,947 $ (7,624,682) $ (2,418,757) $ (5,205,925) Capital expenditure $ 3,484,051 $ — $ — $ 3,484,051 $ — $ 3,484,051 The accounting principles for the Company’s revenue by segment are set out in Note 3(h). As of December 31, 2022, the Company’s total assets were comprised of $14,004,591 for automobile transaction and related services, $816,024 for online ride-hailing platform services and $717,978 unallocated. As of March 31, 2022, the Company’s total assets were comprised of $12,022,387 for automobile transaction and related services, $7,003,867 for online ride-hailing platform services and $851,863 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. | 20. SEGMENT INFORMATION The Company presents segment information after elimination of inter-company transactions. In general, revenue, cost of revenue and operating expenses are directly attributable, or are allocated, to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, such as those that support infrastructure across different segments, to different segments mainly on the basis of usage, revenue or headcount, depending on the nature of the relevant costs and expenses. The Company does not allocate assets to its segments as the CODM does not evaluate the performance of segments using asset information. 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 years ended March 31, 2022 and 2021: For the year ended March 31, 2022 Automobile Transaction and Online ride- related hailing platform Discontinued Continuing service services Unallocated Total operations operations Revenues $ 9,077,761 $ 2,665,457 $ — $ 11,743,218 $ 6,830,116 $ 4,913,102 Loss from operations $ (3,957,831) $ (6,962,113) $ (3,179,759) $ (14,099,703) $ (2,537,715) $ (11,561,988) loss before income taxes $ (4,682,007) $ (7,438,693) $ 3,771,912 $ (8,348,788) $ (2,747,209) $ (5,601,579) Net income (loss) $ (4,686,573) $ (7,438,693) $ 3,771,912 $ (8,353,354) $ (2,747,209) $ (5,606,145) For the year ended March 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Discontinued Continuing Related services services P2P Business Unallocated Total operations operations Revenues $ 5,257,280 $ 903,254 $ 7,153 $ — $ 6,167,687 $ 3,978,847 $ 2,188,840 Loss from operations $ (6,126,494) $ (1,894,971) $ (81,285) $ (2,163,082) $ (10,265,832) $ (4,254,403) $ (6,011,429) loss before income taxes $ (7,009,570) $ (1,703,551) $ (61,976) $ (3,872,915) $ (12,648,012) $ (5,180,919) $ (7,467,093) Net income (loss) $ (7,024,200) $ (1,703,551) $ (61,976) $ (3,872,912) $ (12,662,639) $ (5,187,214) $ (7,475,425) The accounting principles for the Company’s revenue by segment are set out in Note 3(g). As of March 31, 2022, the Company’s total assets were comprised of $12,022,387 for automobile transaction and related services, $7,003,867 for online ride-hailing platform services and $851,863 unallocated. As of March 31, 2021, the Company’s total assets were comprised of $8,777,138, $7,450,698 and $398,940 for automobile transaction and related services from continuing and discontinued sections, and discontinued operations of P2P Business, respectively, $3,254,822 for online ride-hailing platform services and $2,421,681 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 | 12 Months Ended |
Mar. 31, 2022 | |
PARENT-ONLY FINANCIALS | |
PARENT-ONLY FINANCIALS | 21. PARENT-ONLY FINANCIALS SENMIAO TECHNOLOGY LIMITED CONDENSED BALANCE SHEETS March 31, March 31, 2022 2021 ASSETS Current Assets Cash and cash equivalents $ 116,613 $ 1,609,778 Due from subsidiaries 12,587,739 8,170,057 Prepayments, other receivables and other assets, net 135,252 136,901 Total Current Assets 12,839,604 9,916,736 Other Assets Intangible assets 600,000 675,000 Total Assets $ 13,439,604 $ 10,591,736 LIABILITIES AND EQUITY Current Liabilities Accrued expenses and other liabilities $ — $ — Derivative liabilities 2,215,204 1,278,926 Total Current Liabilities 2,215,204 1,278,926 Other Liabilities Excess of investments in subsidiaries 2,310,937 3,456,097 Total Liabilities 4,526,141 4,735,023 Commitments and Contingencies Mezzanine Equity (redeemable) Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 shares issued and outstanding 820,799 — Stockholders’ Equity Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 and 4,978,073 shares issued outstanding 630 498 Additional paid-in capital 42,803,033 40,759,807 Accumulated deficit (34,601,545) (34,064,921) Accumulated other comprehensive loss (109,454) (838,671) Total Senmiao Technology Limited Stockholders’ Equity 8,092,664 5,856,713 Total Liabilities, Mezzanine Equity and Equity $ 13,439,604 10,591,736 *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 SENMIAO TECHNOLOGY LIMITED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Years Ended March 31, 2022 2021 General and administrative expenses $ (2,339,378) $ (2,070,303) Other Income, net 16,189 582 Change in fair value of derivative liabilities 6,951,482 (1,710,415) Issuance costs for issuing series A convertible preferred stock (821,892) — Equity of losses in subsidiaries (4,343,025) (6,579,922) Net loss (536,624) (10,360,058) Foreign currency translation adjustment 80,321 (331,193) Comprehensive loss attributable to stockholders $ (456,303) $ (10,691,251) SENMIAO TECHNOLOGY LIMITED CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended March 31, 2022 2021 Cash Flows from Operating Activities: Net loss $ (536,624) $ (10,360,058) Adjustments to reconcile net loss to net cash used in operating activities: Equity of loss of subsidiaries 4,343,025 6,579,922 Amortization of intangible asset 75,000 75,000 Issuance cost incurred for issuing series A convertible preferred stock 821,892 — Stock compensation expense 653,000 445,000 Change in fair value of derivative liabilities (6,951,482) 1,710,415 Prepayments, receivables and other assets 1,651 (44,526) Accrued expenses and other liabilities 175,008 (65,495) Net Cash Used in Operating Activities (1,418,530) (1,659,742) Cash Flows from Investing Activities: Working capital contribution for subsidiaries (5,749,950) (3,600,000) Net Cash Used in Investing Activities (5,749,950) (3,600,000) Cash Flows from Financing Activities: Net proceeds from issuance of common stock and warrants in a registered direct public offering 5,771,053 5,743,905 Net proceeds from issuance of common stock in an underwritten public offering — 5,261,297 Net proceeds from issuance of common stock upon warrants exercised 22,015 683,046 Net proceeds from exercise of underwriters’ over-allotment option — 837,000 Net proceeds from issuance of series A convertible preferred stock and warrants in a private placement offering 4,369,937 — Borrowings to subsidiaries (4,487,690) (5,658,318) Net Cash Provided by Financing Activities 5,675,315 6,866,930 Net increase (decrease) in cash and cash equivalents (1,493,165) 1,607,188 Cash and cash equivalents, beginning of year 1,609,778 2,590 Cash and cash equivalents, end of year $ 116,613 $ 1,609,778 Supplemental Cash Flow Information Cash paid for interest expense $ — $ — Cash paid for income tax $ — $ — Non-cash Transaction in Investing and Financing Activities Prepayments in exchange of intangible assets $ — $ — Allocation of fair value of derivative liabilities for issuance of common stock proceeds $ 7,932,341 $ 997,193 Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised $ 45,674 $ 1,771,213 Issuance of restricted stock units from accrued expenses and other liabilities $ — $ — a) Basis of presentation The condensed financial information of Senmiao Technology Limited, 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) Investments in subsidiaries and equity of loss in subsidiaries The investments in subsidiaries consist of investments in Senmiao Consulting, Hunan Ruixi and Yicheng. The equity losses in subsidiaries consist of equity loss in Senmiao Consulting, Hunan Ruixi and Yicheng. c) Stockholders’ equity Restricted Stock Units On October 29, 2020, the Board approved the issuance of an aggregate of 127,273 restricted stock units (“RSUs”) to directors, officers and certain employees as stock compensation for their services for the twelve months ended March 31, 2022. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $140,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a “separation of service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee. As of the filing date of these consolidated financial statements, all installment of RSUs with an aggregate of 12,727 (127,273 pre reverse split) was vested and 9,545 (95,457 pre reverse split)was settled by the Company. The Company expects to settle the remaining vested RSUs by issuance of shares of common stock within 2022 and account for the vested RSUs as an addition to both expenses and additional paid-in capital. 2019 Registered Direct Offering On April 15, 2019, the SEC declared effective the Company’s Registration Statement on Form S-3, pursuant to which, along with the accompanying prospectus, the Company registered up to $80,000,000 in aggregate principal amount of its common stock, preferred stock, debt securities, warrants, rights and/or units. On June 21, 2019, the Company closed a registered direct offering of an aggregate of 178,136 (1,781,360 pre reverse split) shares of its common stock, and in connection therewith, issued to the investors (i) for no additional consideration, Series A warrants to purchase up to an aggregate of 133,602 (1,336,021 pre reverse split) shares of common stock and (iii) for nominal additional consideration, Series B warrants to purchase up to a maximum aggregate of 111,632 (1,116,320 pre reverse split) shares of common stock. The Company sold the shares of common stock at a price of $33.8 ($3.38 pre reverse split) per share (the “Share Purchase Price”). The Company received gross proceeds from the offering of approximately $6.0 million, and net proceeds from the offering of approximately $5.1 million after deducting estimated offering expenses payable by the Company. The Series A warrants are exercisable immediately upon issuance at an exercise price of $37.2 ($3.72 pre reverse split) per share and will expire on the fourth (4th) anniversary of the original issue date. In the event that on December 20, 2019, the exercise price is greater than the Six Month Adjustment Price as defined below, on the trading day immediately following December 20, 2019 (the “Six Month Measuring Date”), the exercise price shall automatically adjust to the Six Month Adjustment Price (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). Six Month Adjustment Price means the greater of (x) $15.0 ($1.50 pre reverse split) (as adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction) and (y) 100% of the quotient of (I) the sum of the five lowest VWAPs of the common stock during the ten consecutive trading day period ending and including the Six Month Measuring Date, divided by (II) five. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction during such period. The exercise price of the Series A warrant was adjusted pursuant to this formula from $37.2 ($3.72 pre reverse split) to $15.00 ($1.50 pre reverse split) per share on December 20, 2019. The Company used the adjusted exercise price to value its derivative liability on its December 31, 2019 financial statements and reporting periods onwards with changes in fair value of warrant liabilities from period to period are recorded in the consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities”. The exercise price of the Series A warrant was further adjusted to $5.0 ($0.50 pre reverse split) per share on August 7, 2020 as a result of the Company’s issuance of shares of common stock in its underwritten public offering in August 2020, which has been recorded in the financial statements in the year ended March 31, 2021. In addition, the exercise price of the placement agent warrants from the June 2019 registered direct offering was voluntarily adjusted by the Company from $37.2 ($3.72 pre reverse split) to $5.0 ($0.50 pre reverse split) per share on August 18, 2020. The Series B warrants are pre-funded warrants and were issued as a true-up with respect to the shares of common stock. The maximum aggregate number of shares of common stock issuable upon exercise of the Series B warrants is 111,632 (1,116,320 pre reverse split). Initially, the Series B warrants shall not be exercisable for any shares of common stock. In the event that on the fiftieth (50th) day after the closing date (the “Adjustment Measuring Time”), the closing price of the common stock is less than the Share Purchase Price, then the number of shares of common stock issuable upon exercise of the Series B warrants shall be adjusted (upward or downward, as applicable) to the greater of (i) zero (0) and (ii) such aggregate number of shares of common stock equal to fifty percent (50%) of the difference of (A) the quotient of (x) the Share Purchase Price divided by (y) the Market Price (as defined in Purchase Agreement) as of the Adjustment Measuring Time, less (B) the aggregate number of shares of common stock issued to the investors at the closing (as adjusted for share splits, share dividends, share combinations, recapitalizations and similar events). The exercise price of the Series B warrant was adjusted from $37.2 ($3.72 pre reverse split) to $0.001 ($0.0001 pre reverse split) per share on August 12, 2019. The Company used the adjusted exercise price to value its derivative liability on its September 30, 2019 financial statements and reporting period onwards with changes in fair value of warrant liabilities from period to period are recorded in the consolidated statements of operations and comprehensive loss under the caption “Change in fair value of derivative liabilities. As of March 31, 2021, the Company has issued an aggregate of 111,319 (1,113,188 pre reverse split) shares of common stock to certain investors in the June 2019 offering upon exercise of the pre-funded Series B warrants for a total consideration of $111. Underwritten Public Offering and Exercise of the Over-Allotment Option On August 4, 2020, the Company entered into an underwriting agreement with The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the Underwriters, relating to an underwritten public offering of 1,200,000 (12,000,000 pre reverse split) shares of the Company’s common stock at the Offering Price. Pursuant to the terms of the Underwriting Agreement, the Company granted the Underwriters a 45-day option to purchase up to an additional 180,000 (1,800,000 pre reverse split)shares of common stock to cover over-allotments, if any, at the Offering Price less the underwriting discounts and commissions. An underwriting discount of 7% was applied to the Offering Price, except for shares of common stock purchased by certain existing investors of the Company (the “Excluded Investors”), an underwriting discount of 6% was applied. On August 6, 2020, the Company completed the underwritten offering. The net proceeds to the Company from this offering, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $5.3 million. On August 13, 2020, the Underwriters exercised their over-allotment option to purchase an additional 180,000 (1,800,000 pre reverse split) shares of common stock at $5.0 ($0.50 pre reverse split) per share. This transaction was completed on August 13, 2020. Net proceeds from the exercise of the underwriters’ over-allotment option were approximately $0.8 million net of underwriting discounts and commissions and offering expenses. In connection with the underwritten offering, the Company issued the Underwriters or their permitted designees, on a private placement basis, the Underwriters’ Warrants to purchase up to 56,800 (568,000 pre reverse split) shares of common stock. These warrants are valid for a period of five years and exercisable commencing six months from August 4, 2020 at a price per share equal to 125% of the Offering Price and are exercisable on a “cashless” basis. February 2021 Registered Direct Offering On February 8, 2021, the Company entered into a placement agency agreement with FT Global Capital, Inc., to act as exclusive placement agent in connection with the registered direct public offering. Pursuant to the terms of the placement agency agreement, the Company agreed to pay the Placement Agent a cash fee equal to 7.5% of the gross proceeds raised in the Offering, and to reimburse the Placement Agent for certain expenses, including legal fees and expenses, up to $60,000 in the aggregate. The Placement Agent is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by investors that the Placement Agent had introduced to the Company. On February 10, 2021, the Company completed the registered direct offering. The net proceeds to the Company from this offering, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $5.7 million. In connection with the offering, the Company issued the placement agent warrants to purchase up to 38,044 (380,435 pre reverse split) shares of its common stock. These warrants are exercisable for a period of five years commencing 180 days from February 8, 2020 at a price of $13.8 ($1.38 pre reverse split) per share and are exercisable on a “cashless” basis. In addition, the company issued The Benchmark Company, LLC and Axiom Capital Management, Inc. ss from the offering and warrants to purchase up to 15,218 (152,174 pre reverse split) shares of its common stock, in consideration for the termination of the ROFR. These warrants are exercisable for a period of five years from February 8, 2020 at a price of $17.25 ($1.725 pre reverse split) per share. May 2021 Registered Direct Offering On May 11, 2021, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Investors”) pursuant to which the Company will sell to the Investors, in a registered direct offering, an aggregate of 553,192 (5,531,916 pre reverse split) units (the “Units”), each consisting of 0.1 (one pre reverse split) share (the “Shares”) of the Company’s common stock, par value $0.0001 per share (“Common Stock”) and a warrant to purchase 0.1 (one pre reverse split) share of the Company’s Common Stock (the “Warrants”), at a purchase price of $1.175 per unit, for aggregate gross proceeds to the Company of $6,500,000, before deducting fees to the placement agent and other estimated offering expenses payable by the Company. On May 13, 2021, the Company completed the registered direct offering. The net proceeds to the Company from this offering, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $5.8 million. The Warrants have a term of five years and are exercisable by the holders at any time after the date of issuance at an exercise price of $10.5 ($1.05 pre reverse split) per share. The exercise price and the number of shares issuable upon exercise of the Warrants are subject to an adjustment upon the occurrence of certain events, including, but not limited to, stock splits or dividends, business combinations, sale of assets, similar recapitalization transactions, or other similar transactions. The exercise price of the Warrants is also subject to an adjustment in the event that the Company issues or is deemed to issue shares of Common Stock for less than the applicable exercise price of such Warrants. However, the exercise price of the Warrants shall not be lower than $10.5 ($1.05 pre reverse split) as a result of an adjustment, unless the Company has obtained the stockholder approval. The exercisability of the Warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99%. FT Global Capital, Inc. (“FT Global Capital”) acted as the exclusive placement agent in connection with this offering pursuant to the terms of a placement agency agreement, dated May 11, 2021, between the Company and FT Global Capital (the “Placement Agent Agreement”). Pursuant to the Placement Agent Agreement, the Company agreed to pay FT Global Capital a cash fee equal to seven point five percent (7.5%) of the aggregate proceeds received by the Company from the sale of its securities to the investors introduced to the Company by FT Global Capital. FT Global Capital is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by investors that FT Global Capita had introduced to the Company. In addition to the cash fees, the Company agreed to issue to the Placement Agent warrants to purchase an aggregate of up to seven point five percent (7.5%) of the aggregate number of shares of our Common Stock sold in the offering (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Warrants, exercisable at a price of $10.5 ($1.05 pre reverse split) per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Warrants. In connection with the offering, the Company issued the investors warrants and placement agent warrants to purchase up to 553,192 (5,531,916 pre reverse split) and 41,490 (414,894 pre reverse split) shares of its common stock, respectively. These warrants are exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. November 2021 Private Placement On November 8, 2021, the Company, entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”) pursuant to which the Company will sell to the Investors, in a private placement (the “Private Placement”), an aggregate of $5,000,000 worth of securities of the Company, consisting of up to 5,000 shares (the “Preferred Shares”) of Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”) and warrants (the “Investor Warrants”) to initially acquire up to an aggregate number of shares of common stock of the Company, par value $0.0001 per share (the “Common Stock”) that equals to the number of shares of Common Stock to be issued upon conversion of the Preferred Shares at $0.68 per share (the “Initial Conversion Price”) (as exercised, collectively, the “Warrant Shares”). The purchase price for the Preferred Shares shall be $1,000 per each Preferred Share (and related Investor Warrant). On November 10, 2021, the Company completed the Private Placement. The net proceeds to the Company from this offering, after deducting the placement agent commissions and other estimated offering expenses payable by the Company, were approximately $4.4 million. The Series A Convertible Preferred Stock is included in mezzanine equity on the consolidated balance sheets, because it is redeemable by the holders upon events of change of control which are not within the Company’s control. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. Pursuant to the certificate of designations for the Series A Preferred Stock (the “COD”), at any time after the initial issuance date, each holder shall be entitled to convert any portion of the outstanding Preferred Shares held by such holder into shares of Common Stock (the “Conversion Shares”) at Initial Conversion Price, which shall be adjusted to the greater of $0.41 per share or 85% of the closing bid price of the Company’s Common Stock reported on the NASDAQ Capital Market on the Applicable Date, which is the earlier of the first date on which the registration statement covering the resale of the Conversion Shares and Warrant Shares is declared effective by the SEC or the first date on which all such shares are eligible to be resold by the Investors pursuant to Rule 144 or Rule 144A promulgated under the Securities Act. The Investor Warrants have a term of five years and are exercisable by the holders at any time after six months and one day of the date of issuance at an exercise price of $8.2 ($0.82 pre reverse split) per share. The exercise price and the number of shares issuable upon exercise of the Investor Warrants are subject to an adjustment upon the occurrence of certain events, including, but not limited to, stock splits or dividends, business combinations, sale of assets, similar recapitalization transactions, or other similar transactions. The exercise price of the Investor Warrants are also subject to an adjustment in the event that the Company issues or is deemed to issue shares of Common Stock for less than the applicable exercise price of such Investor Warrants. However, the exercise price of the Investor Warrants shall not be lower than $7.1 ($0.7125 pre reverse split) as a result of an adjustment, unless the Company has obtained the stockholder approval. The exercisability of the Investor Warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% or 9.99% as the Investor chooses. FT Global Capital acted as the exclusive placement agent in connection with this Private Placement pursuant to the terms of a placement agency agreement, dated November 7, 2021, between the Company and FT Global Capital (the “Placement Agent Agreement”). Pursuant to the Placement Agent Agreement, the Company agreed to pay FT Global Capital a cash fee equal to 7.5% of the aggregate proceeds received by the Company from the sale of its securities to the Investors. FT Global Capital is also entitled to additional tail compensation for any financings consummated within the 12-month period following the termination of the Placement Agent Agreement to the extent that such financing is provided to the Company by investors that FT Global Capital had introduced to the Company. In addition to the cash fees, the Company agreed to issue to the Placement Agent warrants to purchase an aggregate of up to 7.5% of the aggregate number of the Conversion Shares (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Investor Warrants, exercisable at a price of $6.8 ($0.68 pre reverse split) per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Investor Warrants. In connection with the Private Placement, the Company issued warrants to the Investors to purchase up to an aggregate number of shares of common stock that equals to the number of shares of common stock to be issued upon conversion of the Series A Preferred Stock at the Initial Conversion Price. Meanwhile, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre reverse split) shares of common stock at an exercise price of $6.8 ($0.68 pre reverse split) per share, which warrants will be exercisable at any time on or after the date of six months from the issuance date and expire on the fifth-year anniversary of their issuance. Share Swap in purchase of XXTX’s remaining minority interest In October 2021, the Company, Senmiao Consulting, XXTX and its shareholders entered into a Share Swap Agreement, pursuant to which the Company, through Senmiao Consulting, shall purchase all of the equity shares of XXTX held by its shareholders by issuing a total of 533,167 (5,331,667 pre reverse split) shares of the Company’s common stock to XXTX’s Shareholders. Upon closing, the Company, through Senmiao Consulting, shall own 100% of the equity interests in XXTX. Common stock issued for consulting services On October 22, 2021, the Company entered into a consulting agreement (the “Consulting Agreement”) with Jolly Good River Group Limited. (the “Consultant”), pursuant to which the Company engaged the Consultant to provide certain market research and business development advisory services for a period of twelve months. As compensation for the services, the Company agreed to issue the Consultant an aggregate of 100,000 (1,000,000 pre reverse split) shares of the Common Stock, par value $0.0001, payable within ten working days from the signing of the Consulting Agreement. As of November 9, 2021, the issuance of 100,000 (1,000,000 pre reverse split) shares of the Company’s common stock has been completed and the Company recorded the consulting fee of $653,000 pursuant to the fair value on November 3, 2021, the grant date. 1-for-10 shares reverse split on common stock The Company considered the above transactions after giving a retroactive effect to a 1-for-10 reverse stock split of its common stock which became effective on April 6, 2022. The Company believed it is appropriate to reflect the above transactions on a retroactive basis similar to those after a stock split or dividend pursuant to ASC 260. All shares and per share amounts used herein and in the accompanying consolidated financial statements have been retroactively stated to reflect the effect of the reverse stock split. Upon execution of the 1-for-10 reverse stock split, the Company recognized additional 8,402 shares of common stock due to round up issue. |
SUBSEQUENT EVENTS_2
SUBSEQUENT EVENTS | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS The Company evaluated all events and transactions that occurred after December 31, 2022 up through February 14, 2023, the date the Company issued these unaudited condensed consolidated financial statements. | 22. SUBSEQUENT EVENTS Conversion Price Adjustment for November 2021 Preferred Shares Pursuant to the COD signed by the Company and certain institutional investors in November 2021 Private Placement, the initial conversion price of the series A convertible Preferred Shares was $0.68. If as of the applicable date the conversion price then in effect is greater than the greater of (x) $0.41 (the “floor Price”) (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) and (y) 85% of the closing bid price on the applicable date (the “Adjustment Price”), the conversion price shall automatically lower to the Adjustment Price accordingly. As the 1-for-10 Adjustments of Exercise Price and Warrant Shares for November 2021 Investors Warrants Pursuant to November 2021 Investors Warrants, if at any time and from time to time on or after the issuance date there occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock (“Stock Combination Event”) and the Event Market Price (which is defined as with respect to any Stock Combination Event date, the quotient determined by dividing (x) the sum of the VWAP of the Common Stock for each of the five (5) lowest trading days during the twenty (20) consecutive trading day period ending and including the trading day immediately preceding the sixteenth (16th) trading day after such Stock Combination Event date, divided by (y) five (5)) is less than the original exercise price of $0.82 then in effect, then on the sixteenth (16th) trading day immediately following such Stock Combination Event, the exercise price then in effect on such sixteenth (16th) trading day shall be reduced (but in no event increased) to the event market price. As the 1-for-10 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of presentation | (a) Basis of presentation The accompanying interim unaudited condensed consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The interim unaudited financial information as of December 31, 2022 and for the three and nine months ended December 31, 2022 and 2021 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 interim unaudited 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, 2022, which was filed with the SEC on July 15, 2022. 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, 2022, its unaudited results of operations for the three and nine months ended December 31, 2022 and 2021, and its unaudited cash flows for the nine months ended December 31, 2022 and 2021, 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. | (a) Basis of presentation The accompanying consolidated financial statements of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of consolidation | (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 subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. | (b) Basis of consolidation The consolidated financial statements include the accounts of the Company and include the assets, liabilities, revenues and expenses of the subsidiaries and VIEs. All inter-company accounts and transactions have been eliminated in consolidation. |
Foreign currency translation | (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 and former VIEs is U.S. dollars (“US$”) and the unaudited condensed consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the unaudited condensed consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: December 31, March 31, 2022 2022 Balance sheet items, except for equity accounts 6.8972 6.3400 For the Three Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss 7.1120 6.3937 For the Nine Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.8547 6.4408 | (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 and former VIEs is U.S. dollars (“US$”) and the consolidated financial statements have been expressed in US$. However, the Company maintains the books and records in its functional currency, Chinese Renminbi (“RMB”), being the functional currency of the economic environment in which its operations are conducted. In general, for consolidation purposes, assets and liabilities of the Company and its subsidiaries whose functional currency is not the US$, are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of the Company and its subsidiaries and former VIEs are recorded as a separate component of accumulated other comprehensive loss within the consolidated statements of changes in stockholders’ equity. Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: March 31, March 31, 2022 2021 Balance sheet items, except for equity accounts 6.3400 6.5527 For the Years Ended March 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.4178 6.7960 |
Use of estimates | (d) Use of estimates In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. | (d) Use of estimates In presenting the consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgment and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause the Company to revise its estimates. The Company bases its estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The inputs into our judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates. Estimates are used when accounting for items and matters including, but not limited to, revenue recognition, residual values, lease classification and liabilities, finance lease receivables, inventory obsolescence, right-of-use assets, determinations of the useful lives and valuation of long-lived assets and goodwill, estimates of allowances for doubtful accounts and prepayments, estimates of impairment of long-lived assets and goodwill, valuation of deferred tax assets, estimated fair value used in business acquisitions, valuation of derivative liabilities, allocation of fair value of derivative liabilities, issuance of common stock and warrants exercised and other provisions and contingencies. |
Fair values of financial instruments | (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. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and March 31, 2022: Carrying Value as of Fair Value Measurement as of December 31, 2022 December 31, 2022 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 572,021 $ — $ — $ 572,021 Fair Value Measurement as of Carrying Value as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for nine months ended December 31, 2022 and for the year ended March 31, 2022: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2021 $ 80,268 $ 163,572 $ 397,525 $ 637,561 $ — $ — $ — $ — $ 1,278,926 Derivative liabilities recognized at grant date — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — (45,675) BALANCE as of March 31, 2022 1,913 10,525 44,581 65,543 778,488 58,387 1,165,465 90,302 2,215,204 Change in fair value of derivative liabilities (1,878) (10,342) (34,526) (51,581) (589,804) (44,236) (843,900) (65,383) (1,641,650) Cashless exercise on November 2021 Investor warrant — — — — — — (1,533) — (1,533) BALANCE as of December 31, 2022 (Unaudited) $ 35 $ 183 $ 10,055 $ 13,962 $ 188,684 $ 14,151 $ 320,032 $ 24,919 $ 572,021 The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of December 31, 2022 and March 31, 2022. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of December 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 Expected term (years) 0.47 0.47 2.59 3.12 3.12 3.37 3.37 3.86 3.86 Risk-free interest rate 2.22 % 2.22 % 4.35 % 4.21 % 4.21 % 4.18 % 4.18 % 4.12 % 4.12 % Expected volatility 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % As of March 31, 2022 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022. As of December 31, 2022 and March 31, 2022, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of December 31, 2022 and March 31, 2022. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. | (e) Fair values of financial instruments Accounting Standards Codification (“ASC”) Topic 825, Financial Instruments (“Topic 825”) requires disclosure of fair value information of financial instruments, whether or not recognized in the balance sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Topic 825 excludes certain financial instruments and all nonfinancial assets and liabilities from its disclosure requirements. Accordingly, the aggregate fair value amounts do not represent the underlying value of the Company. The three levels of valuation hierarchy are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value. The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2022 and March 31, 2021: Carrying Value at Fair Value Measurement at March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 Carrying Value at Fair Value Measurement at March 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 1,278,926 $ — $ — $ 1,278,926 The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 and 2021: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Series B Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2020 $ 315,923 $ 1,371 $ 25,236 $ — $ — $ — $ — $ — $ — $ 342,530 Derivative liabilities recognized at grant date — — — 241,919 755,274 — — — — 997,193 Change in fair value of derivative liabilities 1,234,630 — 138,336 455,162 (117,713) — — — — 1,710,415 Fair value of warrants exercised (1,470,285) — — (299,556) — — — — — (1,769,841) Warrant forfeited due to expiration — (1,371) — — — — — — — (1,371) BALANCE as of March 31, 2021 80,268 — 163,572 397,525 637,561 — — — — 1,278,926 Derivative liabilities recognized at grant date — — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) — (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — — (45,675) BALANCE as of March 31, 2022 $ 1,913 $ — $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 On June 21, 2019, the Company closed a registered direct offering of an aggregate of 178,137 (1,781,361 pre reverse split) shares of common stock, and in connection therewith, issued to the investors (i) for no additional consideration, Series A warrants to purchase up to an aggregate of 133,603 (1,336,021 pre reverse split) shares of common stock, (ii) for nominal additional consideration, Series B warrants to purchase up to a maximum aggregate of 111,632 (1,116,320 pre reverse split) shares of common stock and (iii) placement agent warrants to purchase up to 14,251 (142,509 pre reverse split) shares of common stock (the “June 2019 Placement Agent Warrants”). On August 6, 2020, the Company completed a public offering of 1,200,000 (12,000,000 pre reverse split) shares of the Company’s common stock at $5.0 ($0.50 pre-reverse split) per share (the “Offering Price”), pursuant to an underwriting agreement with The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the several underwriters (the “Underwriters”). On August 13, 2020, the Underwriters exercised their rights to purchase an additional 180,000 (1,800,000 pre reverse split) shares of common stock at the Offering Price. In connection with the offering, the Company issued the Underwriters, on a private placement basis, warrants to purchase up to 56,800 (568,000 pre reverse split) shares of common stock (the “Underwriters’ Warrants”). The Underwriters’ Warrants are exercisable for a period of five years commencing six months from August 4, 2020 at a price per share equal to 125% of the Offering Price and are exercisable on a “cashless” basis. As the underwriting agreement indicated, the Underwriters have the right of first refusal to act as lead or joint investment banker, lead or join book-runner and /or joint placement agent, for each and every future public and private equity and debt offering, including all equity linked financings for the Company, or any successor to or any subsidiary of the Company for a period of twelve months following August 4, 2020, (the “ROFR”). The ROFR was terminated as of February 4, 2021 as disclosed in more details below. On February 10, 2021, the Company completed a registered direct offering of 507,247 (5,072,465 pre reverse split) shares of the Company’s common stock at $13.8 ($1.38 pre-reverse split) per share, pursuant to a placement agency agreement with FT Global Capital, Inc., as exclusive placement agent in connection with this offering. In connection with the offering, the Company issued the placement agent warrants to purchase up to 38,044 (380,435 pre reverse split) shares of its common stock. These warrants are exercisable for a period of five years commencing 180 days from February 8, 2020 at a price of $13.8 ($1.38 pre-reverse split) per share and are exercisable on a “cashless” basis. In addition, the company issued to the Underwriters seven percent of the gross proceeds from the offering and warrants to purchase up to 15,218 (152,174 pre reverse split) shares of its common stock, in consideration for the termination of the ROFR as mentioned above. These warrants are exercisable for a period of five years from February 8, 2020 at a price of $17.25 ($1.725 pre-reverse split) per share. On May 13, 2021, the Company completed a registered direct offering of 553,192 (5,531,916 pre-reverse split) shares of the Company’s common stock at $11.75 ($1.175 pre-reverse split) per share, pursuant to a securities purchase agreement with certain purchasers dated May 11, 2021. As a result, the Company raised approximately $5.8 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 553,192 (5,531,916 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre-reverse split) per share (the “May 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the issuance date. In connection with the offering, the Company paid the placement agent cash commission of approximately $487,500 and issued to it warrants to purchase up to 41,490 (414,894 pre-reverse split) shares of common stock at an exercise price of $10.5 ($1.05 pre reverse split) per share (the “May 2021 Placement Agent Warrants”), which warrants will be exercisable at any time on or after the issuance date and expire on the fifth-year anniversary of their issuance. On November 10, 2021, the Company completed a private placement of 5,000 shares of the Company’s series A convertible preferred stock at $1,000 per share, pursuant to a securities purchase agreement with certain institutional investors. As a result, the Company raised approximately $4.4 million, net of placement agent fees and offering expenses, to support the Company’s working capital requirements. In connection with the offering, The Company also issued warrants to the investors to purchase a total of 735,295 (7,352,941 pre-reverse split) shares of common stock at an exercise price of $8.20 ($0.82 pre-reverse split) per share (the “November 2021 Investors Warrants”). The warrants have a term of five years and are exercisable at any time on or after the initial exercisability date. In connection with the offering, the Company paid the placement agent cash commission of approximately $375,000 and issued to it warrants to purchase up to 55,148 (551,471 pre-reverse split) shares of common stock at an exercise price of $6.80 ($0.68 pre-reverse split) per share (the “November 2021 Placement Agent Warrants”), which warrants will be exercisable at any time beginning from the date of six months from the closing of the Offering and expire on the fifth-year anniversary of their issuance. The Series A Convertible Preferred Stock is redeemable as change of control occur. A discount to the redemption amount of a contingently redeemable preferred share should be amortized only once it is probable the share will become redeemable. The Company determined that the redemption is uncertain as the cash redemption feature upon change of control is at the option of the holder, and the redemption date upon the change of control is uncertain. The strike price of the Company’s Series A and Series B warrants, the placement agent warrants, the Underwriters’ Warrants, the ROFR warrants, and the investors warrants are denominated in US$ and the Company’s functional currency is RMB; therefore, those warrant shares are not considered indexed to the Company’s own stock which should be classified as derivative liability. The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of March 31, 2022 and March 31, 2021. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of March 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % As of March 31, 2021 June 20, 2019 August 4, 2020 February 10, 2021 Series A Placement Agent Underwriters’ Placement Agent ROFR Granted Date Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 6,993 14,251 31,808 38,044 15,218 Valuation date 3/31/2021 3/31/2021 3/31/2021 3/31/2021 3/31/2021 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 Stock price* $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Expected term (years) 2.22 2.22 4.35 4.87 4.87 Risk-free interest rate 0.20 % 0.20 % 0.73 % 0.88 % 0.88 % Expected volatility 132 % 132 % 132 % 132 % 132 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 As of March 31, 2022 and 2021, financial instruments of the Company comprised primarily current assets and current liabilities including cash and cash equivalents, restricted cash, accounts receivable, inventories, finance lease receivables, prepayments, other receivables and other assets, due from related parties, borrowings from financial institutions, accounts payable, advance from customers, lease liabilities, accrued expenses and other liabilities, due to related parties and affiliates, and operating and financing lease liabilities, which approximate their fair values because of the short-term nature of these instruments, and non-current liabilities of borrowings from financial institutions, which approximate their fair values because of the stated loan interest rate to the rate charged by similar financial institutions. The non-current portion of accounts receivables, finance lease receivables, and operating and financing lease liabilities were recorded at gross adjusted for the interest using the effective interest rate method. The Company believes that the effective interest rates underlying these instruments approximate their fair values because the Company used its incremental borrowing rate to recognize the present value of these instruments as of March 31, 2022 and March 31, 2021. Other than as listed above, the Company did not identify any assets or liabilities that are required to be presented on the balance sheet at fair value. |
Business combinations and non-controlling interests | (g) Business combinations and non-controlling 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 at 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s unaudited condensed consolidated balance sheets and unaudited condensed consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the unaudited condensed consolidated statements of cash flows. | (f) Business combinations and non-controlling 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 non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling 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 non-controlling 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 non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets and consolidated statements of operations and comprehensive loss. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows. |
Segment reporting | (h) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 | (g) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised of certain members of the Company’s management team. During the year ended March 31, 2019 and 2021, the Company acquired Hunan Ruixi and XXTX, respectively. The Company 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 20. |
Cash and cash equivalents | (i) Cash and cash equivalents Cash and cash equivalents primarily consist of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. Cash and cash equivalents also consist of funds received from automobile purchasers as payments for automobiles, funds received from automobile lessees as payments for rentals, which were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. | (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. Cash and cash equivalents also consist of funds received from automobile purchasers as payment for automobiles, related insurances and taxes to be paid on behalf of the automobile purchasers, which funds were held at the third-party platforms’ fund accounts and which are unrestricted and immediately available for withdrawal and use. |
Accounts receivable, net | (j) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. 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, 2022 and March 31, 2022, allowance for doubtful accounts amounted to $0 and $112,905, respectively. | (i) Accounts receivable, net Accounts receivable are recorded at the invoiced amount less an allowance for any uncollectible accounts and do not bear interest, and are due on demand. 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 March 31, 2022 and March 31, 2021, allowance for doubtful accounts amounted to $112,905 and $1,739, respectively, was provided for continuing operations. As of March 31, 2021, allowance for doubtful accounts amounted to $76,428 was provided for discontinued operations. |
Inventories | (k) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. For the three and nine months ended December 31, 2022, $0 and $3,085 impairment of inventories were provided from continuing operations, respectively. | (j) Inventories Inventories consist of automobiles which are held primarily for sale and for leasing purposes, and are stated at lower of cost or net realizable value, as determined using the weighted average cost method. Management compares the cost of inventories with the net realizable value and if applicable, an allowance is made for writing down the inventory to its net realizable value, if lower than cost. On an ongoing basis, inventories are reviewed for potential write-down for estimated obsolescence or unmarketable inventories which equals the difference between the costs of inventories and the estimated net realizable value based upon forecasts for future demand and market conditions. When inventories are written-down to the lower of cost or net realizable value, it is not marked up subsequently based on changes in underlying facts and circumstances. As of March 31, 2022, impairments of inventories amounted to $60,398 was provided for certain vehicles held for sale. |
Finance lease receivables, net | (l) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is 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, 2022 and March 31, 2022, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of December 31, 2022 and March 31, 2022, finance lease receivables consisted of the following: December 31, March 31, 2022 2022 (Unaudited) Minimum lease payments receivable $ 288,026 $ 511,030 Less: Unearned interest (67,484) (103,786) Financing lease receivables, net $ 220,542 $ 407,244 Finance lease receivables, net, current portion $ 170,337 $ 314,264 Finance lease receivables, net, non-current portion $ 50,205 $ 92,980 Future scheduled minimum lease payments for investments in sales-type leases as of December 31, 2022 are as follows: Minimum future payments receivable Twelve months ending December 31, 2023 $ 196,715 Twelve months ending December 31, 2024 66,544 Twelve months ending December 31, 2025 24,767 Total $ 288,026 | (k) Finance lease receivables, net Finance lease receivables, which result from sales-type leases, are measured at discounted present value of (i) future minimum lease payments, (ii) any residual value not subject to a bargain purchase option as a finance lease receivables on its balance sheet and (iii) accrued interest on the balance of the finance lease receivables based on the interest rate inherent in the applicable lease over the term of the lease. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic conditions to make adjustments in the allowance when necessary. Finance lease receivables is charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of March 31, 2022 and March 31, 2021, the Company determined no allowance for doubtful accounts was necessary for finance lease receivables. As of March 31, 2022 and March 31, 2021, finance lease receivables consisted of the following: March 31, March 31, 2022 2021 Minimum lease payments receivable $ 511,030 $ 1,343,662 Less: Unearned interest (103,786) (328,585) Financing lease receivables, net $ 407,244 $ 1,015,077 Finance lease receivables, net, current portion $ 314,264 $ 541,605 Finance lease receivables, net, non-current portion $ 92,980 $ 473,472 Future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 are as follows: Minimum future payments receivable Twelve months ending March 31, 2023 $ 345,425 Twelve months ending March 31, 2024 150,633 Twelve months ending March 31, 2025 14,972 Total $ 511,030 |
Property and equipment, net | (m) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other equipment, which are stated at cost less accumulated depreciation less any provision required for impairment in value. Depreciation is computed using the straight-line method with no residual value based on the estimated useful life. The useful life of property and equipment is summarized as follows: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the three months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $11 from continuing operations, respectively. For the nine months ended December 31, 2022 and 2021, the impairment for property and equipment was $0 and $2,936 from continuing operations, respectively. For the three and nine months ended December 31, 2021, the impairment for property and equipment was $6,007 and $35,609 from discontinued operations, respectively. Costs of repairs and maintenance are expensed as incurred and asset improvements are capitalized. The cost and related accumulated depreciation of assets disposed of or retired are removed from the accounts, and any resulting gain or loss is reflected in the unaudited condensed consolidated statements of operations and comprehensive loss. | (l) Property and equipment, net Property and equipment primarily consist of automobiles, leasehold improvements, computers and other 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: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobiles 3 - 5 years The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered impaired if its carrying amount exceeds the future net undiscounted cash flows that the asset is expected to generate. If such asset is considered to be impaired, the impairment recognized is the amount by which the carrying amount of the asset, if any, exceeds its fair value determined using a discounted cash flow model. For the years ended March 31, 2022 and 2021, the Company did not recognize impairment for property and equipment from continuing operations. For the years ended March 31, 2022 and 2021, the impairment for property and equipment was $32,479 and $10,459 from discontinued operations, respectively. 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 consolidated statements of operations and comprehensive loss. |
Intangible assets, net | (n) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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, 2022 and 2021, there was no impairment of intangible assets. | (m) Intangible assets, net 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 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 years ended March 31, 2022 and 2021, there was no impairment of intangible assets. |
Goodwill | (o) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the unaudited condensed consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the three and nine months ended December 31, 2022, the Company did not record impairment against goodwill. For the three and nine months ended December 31, 2021, the company recorded an impairment of $0 and $139,580 against goodwill, respectively. | (n) Goodwill Goodwill represents the excess of the consideration paid of an acquisition over the fair value of the net identifiable assets of the acquired subsidiaries at the date of acquisition. Goodwill is not amortized and is tested for impairment at least annually, more often when circumstances indicate impairment may have occurred. Goodwill is carried at cost less accumulated impairment losses. If impairment exists, goodwill is immediately written off to its fair value and the loss is recognized in the consolidated statements of operations and comprehensive loss. Impairment losses on goodwill are not reversed. The Company reviews the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist annually or more frequently if events and circumstances indicate that it is more likely than not that an impairment has occurred. The Company assesses qualitative factors to determine whether it is necessary to perform the two-step in accordance with ASC 350-20. If the Company believes, as a result of the qualitative carrying amount, the two-step quantitative impairment test described below is required. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business acquisition with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. For the years ended March 31, 2022 and 2021, the Company recorded an impairment of $139,930 and $0 against goodwill, respectively. |
Earnings (loss) per share | (p) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is anti-dilutive. As of December 31, 2022, the Company’s dilutive securities from the outstanding series A convertible preferred stock are convertible into approximately 870,706 shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. | (o) Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (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 income (loss) per share, net income (loss) attributable to stockholders for basic earnings (loss) per share is adjusted by the effect of dilutive securities, including share-based awards, under the treasury stock method and convertible securities under the if-converted method. Potentially dilutive securities, of which the amounts are insignificant, have been excluded from the computation of diluted net earnings (loss) per share if their inclusion is anti-dilutive. As of March 31, 2022, the Company’s dilutive securities from series A convertible preferred stock are convertible into approximately 735,295 (7,352,941 pre-reverse split) shares of common stock. This amount is not included in the computation of dilutive loss per share because their impact is anti-dilutive. |
Mezzanine Equity (redeemable) | (q) Mezzanine Equity (redeemable) The Company evaluates its convertible preferred stock in accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to determine if its convertible preferred stock should be treated as a liability or an equity. As a result, the convertible preferred stock should be treated as an equity as it did not meet the definition of liability instrument. In accordance with ASC 480-10-S99, the convertible preferred stock should be classified as a mezzanine equity, since it contained a change of control redemption right feature which is not solely within the control of the Company. | (p) Mezzanine Equity (redeemable) The Company evaluates its convertible preferred stock in accordance with ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, to determine if its convertible preferred stock should be treated as a liability or an equity. As a result, the convertible preferred stock should be treated as an equity as it did not meet the definition of liability instrument. In accordance with ASC 480-10-s99, the convertible preferred stock should be classified as a mezzanine equity, since it contained a change of control redemption right feature which is not solely within the control of the Company. |
Derivative liabilities | (r) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the unaudited condensed consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. | (q) Derivative liabilities A contract is designated as an asset or a liability and is carried at fair value on the Company’s balance sheet, with any changes in fair value recorded in the Company’s results of operations. The Company then determines which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability. The changes in the values of these instruments are shown in the consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”. |
Revenue recognition | (s) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of December 31, 2022, the Company had outstanding contracts for automobile transaction and related services amounting to $26,573, of which $24,558 is expected to be completed within twelve months after December 31, 2022, and $2,015 is expected to be completed after December 31, 2023. Disaggregated information of revenues by business lines are as follows: For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 781,210 $ 510,636 $ 2,570,959 $ 1,165,625 - Service fees from NEVs leasing 49,002 43,015 291,675 87,112 - Revenues from sales of automobiles — — 225,900 — - Service fees from automobile purchase services — — 21,192 — - Service fees from management and guarantee services 8,915 11,616 31,659 54,987 - Financing revenues 8,606 22,072 30,965 86,454 - Other service fees 82,892 55,624 181,050 140,960 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 930,625 642,963 3,353,400 1,535,138 Online Ride-hailing Platform Services (Continuing Operations) 810,295 1,017,156 2,970,518 1,617,454 Total Revenues from Continuing Operations 1,740,920 1,660,119 6,323,918 3,152,592 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals — 1,436,886 — 4,274,900 - Service fees from NEVs leasing — 242 — 58,185 - Commission from Online Ride-hailing platforms — 274,643 — 274,643 - Service fees from management and guarantee services — 38,221 — 96,019 - Financing revenues — 3,677 — 15,284 - Other service fees — 129,261 — 377,410 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) — 1,882,930 — 5,096,441 Total revenues $ 1,740,920 $ 3,543,049 $ 6,323,918 $ 8,249,033 Automobile transaction and related services Operating lease revenues from automobile rentals –The Company generates revenue from sub-leasing automobiles from some online ride-hailing drivers or third-parties and leasing its own automobiles. The Company recognizes revenue wherein an automobile is transferred to the lessees and the lessees has the ability to control the asset, is accounted for under ASC Topic 842. Rental transactions are satisfied over the rental period and is recognized over time. Meanwhile, the Company recognized the revenue from operating lease by using the output method based on periodic settlement between the Company and the online ride-hailing drivers or third-parties and leasing its own automobiles. Rental periods are short term in nature, generally are twelve months or less. Service fees from NEVs leasing and automobile purchase services – Services fees from NEVs leasing and automobile purchase services are paid by lessees who rent new energy electric vehicles from the Company or automobile purchasers for a series of the services provided to them throughout the purchase process such as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installment of GPS devices, ride-hailing driver qualification and other administrative procedures. The amount of services fees for NEVs leasing is based on the product solutions while the fees for purchase is based on the sales price of the automobiles and relevant services provided. The Company recognizes revenue when all the services are completed and an automobile is delivered to the purchaser at a point in time. Accounts receivable related to the revenue from NEVs leasing is collected upon the NEVs are delivered to lessees while accounts receivables from purchase services are being collected over 36 to 48 months. The interest component is included in the non-current portion of the accounts receivable. Sales of automobiles – The Company generated revenue from sales of automobiles to the customers of Hunan Ruixi. The control over the automobile is transferred to the purchaser along with the delivery of automobiles. The amount of the revenue is based on the sale price agreed by Hunan Ruixi and the customers. The Company recognizes revenues when an automobile is delivered and control is transferred to the purchaser at a point in time. Accounts receivable related to the revenue are being collected within 12 months. Service fees from management and guarantee services – Over 95% of the Company’s customers are online ride-hailing drivers. Some of the drivers sign affiliation agreements with the Company, pursuant to which the Company provides them with management and guarantee services during the affiliation period. Service fees for management and guarantee services are paid by such automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. The Company recognizes revenue over the affiliation period when performance obligations are completed. Financing revenues – Interest income from the lease arising from the Company’s sales-type leases and bundled lease arrangements are recognized as financing revenues over the lease term based on the effective rate of interest in the lease. Online ride-hailing platform services The Company generates revenue from providing services to online ride-hailing drivers (“Drivers”) to assist them in providing transportation services to riders (“Riders”) looking for taxi/ride-hailing services. The Company earns commissions for each completed ride in an amount equal to the difference between an upfront quoted fare and the amount earned by a Driver based on actual time and distance for the ride charged to the Rider. As a result, the Company bears a single performance obligation in the transaction of connecting Drivers with Riders to facilitate the completion of a successful transportation service for Riders. The Company recognizes revenue upon completion of a ride as the single performance obligation is satisfied and the Company has the right to receive payment for the services rendered upon the completion of the ride. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the service provided to the Rider and is the principal (i.e., “gross”), or it arranges for other parties to provide the service to the Rider and is an agent (i.e., “net”). Since the Company is not primarily responsible for ride-hailing services provided to Riders, it does not have discretion in establishing the price of the online ride-hailing service and inventory risk related to the services as the Company earns commissions for each completed order as the difference between an upfront quote fare and the amount earned by a driver based on actual time and distance for ride charged to the rider. Thus, the Company recognizes revenue at a net basis. Leases - Lessor The Company recognized revenue as lessor in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75)%; and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90)%. Automobiles included in arrangements meeting these conditions are accounted for as sales-type leases. Interest income from the lease is recognized in financing revenues over the lease term. Automobile included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. The Company excludes from the measurement of its lease revenues any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company considers the economic life of most of the automobiles to be three A portion of the Company’s direct sales of automobile to end customers are made through bundled lease arrangements which typically include automobile, services (automobile purchase services, facilitation services, and management and guarantee services) and financing components where the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. Revenues under these bundled lease arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement and the financing components. Lease deliverables include the automobile and financing, while the non-lease deliverables generally consist of the services and repayment of advanced fees made on behalf of its customers. The Company considers the fixed payments for purposes of allocation to the lease elements of the contract. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed lease payments that the customer is obligated to make over the lease term. Amounts allocated to the automobile and financing elements are then subjected to the accounting estimates under ASC 842 to ensure the values reflect standalone selling prices. The remainder of any fixed payments are allocated to non-lease elements (automobile purchase services, facilitation fees, and management and guarantee services), for which these revenues are recognized in a manner consistent with the guidance for service fees from automobile purchase services, facilitation fees from automobile transactions, and service fees from management and guarantee services as discussed above. The Company’s lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon the local prevailing rates in the marketplace where its customer will be able to obtain an automobile loan under similar terms from the bank. The Company reassesses its pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. As of December 31, 2022, the Company’s pricing interest rate was 6.0% per annum. | (r) Revenue recognition The Company recognized its revenue under Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (ASC 606). ASC 606 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. It also requires the Company to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time, based on when control of goods and services transfers to a customer. To achieve that core principle, the Company applies the five steps defined under ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract with a customer when the contract is committed in writing, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration to collect is substantially probable. As of March 31, 2022, the Company had outstanding contracts for automobile transaction and related services amounting to $136,418, of which $91,448 is expected to be completed within twelve months after March 31, 2022, and $44,971 is expected to be completed after March 31, 2023. Disaggregated information of revenues by business lines are as follows: For the Years Ended March 31, 2022 2021 Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 1,722,480 $ 224,590 - Service fees from NEVs leasing 126,227 — - Financing revenues 101,828 184,115 - Service fees from management and guarantee services 73,554 79,565 - Service fees from automobile purchase services 1,468 188,822 - Revenues from sales of automobiles 26,019 487,947 - Other service fees 196,069 120,547 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 2,247,645 1,285,586 Online Ride-hailing Platform Services (Continuing Operations) 2,665,457 903,254 Total Revenues from Continuing Operations 4,913,102 2,188,840 Online Lending Services (Discontinued Operations) -Transaction fees — 3,488 - Service fees — 3,665 Total revenues from Online Lending Services (Discontinued Operations) — 7,153 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals 5,452,483 3,207,781 - Commissions from online ride-hailing platforms 399,600 32,797 - Service fees from NEVs leasing 232,295 — -Financing revenues 15,855 43,744 -Service fees from management and guarantee services 217,838 206,248 -Facilitation fees from automobile transactions — 1,665 -Other service fees 512,045 479,459 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) 6,830,116 3,971,694 Total Revenues from Discontinued Operations 6,830,116 3,978,847 Total revenues $ 11,743,218 $ 6,167,687 Automobile transaction and related services Operating lease revenues from automobile rentals –The Company generates revenue from sub-leasing automobiles from some online ride-hailing drivers or third-parties and leasing its own automobiles. The Company recognizes revenue wherein an automobile is transferred to the lessees and the lessees has the ability to control the asset, is accounted for under ASC Topic 842. Rental transactions are satisfied over the rental period. Rental periods are short term in nature, generally are twelve months or less. Financing revenues – Interest income from the lease arising from the Company’s sales-type leases and bundled lease arrangements are recognized as financing revenues over the lease term based on the effective rate of interest in the lease. Service fees from management and guarantee services – Over 95% of the Company’s customers are online ride-hailing drivers. The drivers sign affiliation agreements with the Company, pursuant to which the Company provides them with management and guarantee services during the affiliation period. Service fees for management and guarantee services are paid by such automobile purchasers on a monthly basis for the management and guarantee services provided during the affiliation period. The Company recognizes revenue over the affiliation period when performance obligations are completed. Sales of automobiles – The Company generated revenue from sales of automobiles to the customers of Jinkailong and Hunan Ruixi. The control over the automobile is transferred to the purchaser along with the delivery of automobiles. The amount of the revenue is based on the sale price agreed by Hunan Ruixi or Jinkailong and the customers. The Company recognizes revenues when an automobile is delivered and control is transferred to the purchaser at a point in time. Accounts receivable related to the revenue are being collected over 36 to 48 months. The interest component is included in the non-current portion of the accounts receivable. Service fees from NEVs leasing and automobile purchase services – Services fees from NEVs leasing and automobile purchase services are paid by lessees who rent new energy electric vehicles from the Company or automobile purchasers for a series of the services provided to them throughout the purchase process such as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installment of GPS devices, ride-hailing driver qualification and other administrative procedures. The amount of services fees for NEVs leasing is based on the product solutions while the fees for purchase is based on the sales price of the automobiles and relevant services provided. The Company recognizes revenue when all the services are completed and an automobile is delivered to the purchaser at a point in time. Accounts receivable related to the revenue from NEVs leasing is collected upon the NEVs are delivered to lessees while accounts receivables from purchase services are being collected over 36 to 48 months. The interest component is included in the non-current portion of the accounts receivable. Online ride-hailing platform services The Company generates revenue from providing services to online ride-hailing drivers (“Drivers”) to assist them in providing transportation services to riders (“Riders”) looking for taxi/ride-hailing services. The Company earns commissions for each completed ride in an amount equal to the difference between an upfront quoted fare and the amount earned by a Driver based on actual time and distance for the ride charged to the Rider. As a result, the Company bears a single performance obligation in the transaction of connecting Drivers with Riders to facilitate the completion of a successful transportation service for Riders. The Company recognizes revenue upon completion of a ride as the single performance obligation is satisfied and the Company has the right to receive payment for the services rendered upon the completion of the ride. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the service provided to the Rider and is the principal (i.e., “gross”), or it arranges for other parties to provide the service to the Rider and is an agent (i.e., “net”). Since the Company is not primarily responsible for ride-hailing services provided to Riders, it does not have inventory risk related to the services. Thus, the Company recognizes revenue at a net basis. Leases The Company accounts for leases in accordance with ASC 842. The two primary accounting provisions the Company uses to classify transactions as sales-type or operating leases are: (i) a review of the lease term to determine if it is for the major part of the economic life of the underlying equipment (defined as greater than 75%); and (ii) a review of the present value of the lease payments to determine if they are equal to or greater than substantially all of the fair market value of the equipment at the inception of the lease (defined as greater than 90%). Automobiles included in arrangements meeting these conditions are accounted for as sales-type leases. Interest income from the lease is recognized in financing revenues over the lease term. Automobile included in arrangements that do not meet these conditions are accounted for as operating leases and revenue is recognized over the term of the lease. The Company excludes from the measurement of its lease revenues any tax assessed by a governmental authority that is both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company considers the economic life of most of the automobiles to be three A portion of the Company’s direct sales of automobile to end customers are made through bundled lease arrangements which typically include automobile, services (automobile purchase services, facilitation services, and management and guarantee services) and financing components where the customer pays a single negotiated fixed minimum monthly payment for all elements over the contractual lease term. Revenues under these bundled lease arrangements are allocated considering the relative standalone selling prices of the lease and non-lease deliverables included in the bundled arrangement and the financing components. Lease deliverables include the automobile and financing, while the non-lease deliverables generally consist of the services and repayment of advanced fees made on behalf of its customers. The Company considers the fixed payments for purposes of allocation to the lease elements of the contract. The fixed minimum monthly payments are multiplied by the number of months in the contract term to arrive at the total fixed lease payments that the customer is obligated to make over the lease term. Amounts allocated to the automobile and financing elements are then subjected to the accounting estimates under ASC 842 to ensure the values reflect standalone selling prices. The remainder of any fixed payments are allocated to non-lease elements (automobile purchase services, facilitation fees, and management and guarantee services), for which these revenues are recognized in a manner consistent with the guidance for service fees from automobile purchase services, facilitation fees from automobile transactions, and service fees from management and guarantee services as discussed above. The Company’s lease pricing interest rates, which are used in determining customer payments in a bundled lease arrangement, are developed based upon the local prevailing rates in the marketplace where its customer will be able to obtain an automobile loan under similar terms from the bank. The Company reassesses its pricing interest rates quarterly based on changes in the local prevailing rates in the marketplace. As of March 31, 2022, the Company’s pricing interest rate was 6.0% per annum. |
Income taxes | (t) Income taxes 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. Provisions or benefits for income taxes consists of tax estimated from taxable income plus or minus deferred tax expenses (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 consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forwards 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 utilized. 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 any significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of December 31, 2022 and March 31, 2022. As of December 31, 2022, the calendar years ended December 31, 2018 through 2022 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The Company presents deferred tax assets and liabilities as non-current in the balance sheet based on an analysis of each taxpaying component within a jurisdiction. | (s) Income taxes 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. Provisions or benefits for income taxes consists of tax estimated from taxable income plus or minus deferred tax expenses (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 consolidated financial statements and the corresponding tax basis. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable income will be utilized with prior net operating loss carried forwards 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 utilized. 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 any significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of March 31, 2022 and March 31, 2021. As of March 31, 2022, the calendar years ended December 31, 2016 through 2020 for the Company’s PRC entities remain open for statutory examination by PRC tax authorities. The Company presents deferred tax assets and liabilities as non-current in the balance sheet based on an analysis of each taxpaying component within a jurisdiction. |
Comprehensive income (loss) | (u) Comprehensive loss Comprehensive loss includes net loss and foreign currency adjustments. Comprehensive loss is reported in the unaudited condensed 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. | (t) Comprehensive income (loss) Comprehensive income (loss) includes net income (loss) and foreign currency adjustments. Comprehensive income (loss) is reported in the consolidated statements of operations and comprehensive income (loss). Accumulated other comprehensive income (loss), as presented on the consolidated balance sheets are the cumulative foreign currency translation adjustments. |
Share-based awards | (v) Share-based awards Share-based awards granted to the Company’s employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares. At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period. | (u) Share-based awards Share-based awards granted to the Company’s employees are measured at fair value on grant date and share-based compensation expense is recognized (i) immediately at the grant date if no vesting conditions are required, or (ii) using the accelerated attribution method, net of estimated forfeitures, over the requisite service period. The fair value of restricted shares is determined with reference to the fair value of the underlying shares. At each date of measurement, the Company reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Company, including but not limited to the fair value of the underlying shares, expected life, expected volatility and expected forfeiture rates. The Company is required to consider many factors and make certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards changes significantly, share-based compensation expense may differ materially in the future from that recorded in the current reporting period. |
Leases | (w) Leases - lessee The Company accounts for leases in accordance with ASC 842. The Company enters into certain agreements as a lessee to lease automobiles and to conduct its automobiles rental operations. If any of the following criteria are met, the Company classifies the lease as a finance lease (as a lessee) or as a direct financing or sales-type lease (as a lessee): ● The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; ● The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; ● The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; ● The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or ● The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible. Finance and operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of finance and operating lease liabilities in any tested asset group and include the associated lease payments in the undiscounted future pre-tax cash flows. For the three and nine months ended December 31, 2022 and 2021, the Company recognized impairment loss of $0 and $1,964 on its finance lease ROU assets, respectively. | (v) Leases The Company accounts for leases in accordance with ASC 842. Beginning in the fiscal year ended March 31, 2020, the Company entered into certain agreements as a lessor under which it leased automobiles for a short-term period (usually under 12 months) to ride-hailing car service drivers. The Company also entered into certain agreements as a lessee to lease automobiles and to conduct its automobiles rental operations. If any of the following criteria are met, the Company classifies the lease as a finance lease (as a lessee) or as a direct financing or sales-type lease (both as a lessor): ● The lease transfers ownership of the underlying asset to the lessee by the end of the lease term; ● The lease grants the lessee an option to purchase the underlying asset that the Company is reasonably certain to exercise; ● The lease term is for 75% or more of the remaining economic life of the underlying asset, unless the commencement date falls within the last 25% of the economic life of the underlying asset; ● The present value of the sum of the lease payments equals or exceeds 90% of the fair value of the underlying asset; or ● The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. Leases that do not meet any of the above criteria are accounted for as operating leases. The Company combines lease and non-lease components in its contracts under Topic 842, when permissible. Finance and operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since the implicit rate for the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments, in a similar economic environment and over a similar term. Lease terms used to calculate the present value of lease payments generally do not include any options to extend, renew, or terminate the lease, as the Company does not have reasonable certainty at lease inception that these options will be exercised. The Company generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Company has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The finance or operating lease ROU asset also excludes lease incentives. Lease expense is recognized on a straight-line basis over the lease term for operating lease. Meanwhile, the Company recognizes the finance leases ROU assets and interest on an amortized cost basis. The amortization of finance ROU assets is recognized on an accretion basis as amortization expense, while the lease liability is increased to reflect interest on the liability and decreased to reflect the lease payments made during the period. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the automobile loans on the remaining balance of the liability. The Company reviews the impairment of its ROU assets consistent with the approach applied for its other long-lived assets. The Company reviews the recoverability of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on its ability to recover the carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company has elected to include the carrying amount of finance and operating lease liabilities in any tested asset group and include the associated lease payments in the undiscounted future pre-tax cash flows. For the years ended March 31, 2022 and 2021, the Company recognized impairment loss on its finance lease ROU assets of $3,044 and $10,953, respectively, from its continuing operations. For the years ended March 31, 2022 and 2021, the Company recognized impairment loss of $0 and $109,427 on its finance lease ROU assets from its discontinued operations, respectively. |
Significant risks and uncertainties | (x) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amounts as of the balance sheet dates. On December 31, 2022 and March 31, 2022, approximately $91,000 and $117,000, respectively, were deposited with a bank in the United States which is insured by the U.S. government up to $250,000. On December 31, 2022 and March 31, 2022, approximately $1,361,000 and $874,000, respectively, were deposited in financial institutions located in mainland China, which were insured by the government authority. Under the Deposit Insurance System in China, an enterprise’s deposits at one bank are insured for a maximum of approximately $70,000 (RMB500,000). To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out entirely in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the social, political, economic and legal environments in the PRC as well as by the general state of the PRC economy. In addition, the Company’s business may be influenced by changes in PRC government laws, rules and policies with respect to, among other matters, the response to the COVID-19 pandemic, anti-inflationary measures, currency conversion and remittance of currency outside of China, rates and methods of taxation and other factors. b. In measuring the credit risk of accounts receivables due from the automobile purchasers (the “customers”), the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the risk exposures to the customer and its likely future development. Historically, most of the automobile purchasers would pay the Company their previously defaulted amounts within one to three months. As a result, the Company would provide full provisions on accounts receivable if the customers default on repayments for over three months. As of December 31, 2022 and March 31, 2022, allowance for doubtful accounts amounted to $0 and $112,905, respectively. For the nine months ended December 31, 2022 and 2021, the Company wrote off accounts receivable of $107,820 and $45,465 from continuing operations, respectively, which represent due from automobile purchasers from continuing operation. For the nine months ended December 31, 2021, the Company wrote off accounts receivable of $11,952 from discontinued operations, which represent due from automobile purchasers. 2) Foreign currency risk As of December 31, 2022 and March 31, 2022, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $91,000 and $117,000, respectively, in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the People’s Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significantly affected. RMB depreciated from 6.34 RMB into US$1.00 on March 31, 2022 to 6.90 RMB into US$1.00 on December 31, 2022. | (w) Significant risks and uncertainties 1) Credit risk a. Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash and cash equivalents. The maximum exposure of these assets to credit risk is their carrying amounts as of the balance sheet dates. On March 31, 2022 and March 31, 2021, approximately $117,000 and $1,560,000, respectively, were deposited with a bank in the United States which is insured by the U.S. government up to $250,000. On March 31, 2022 and March 31, 2021, approximately $874,000 and $2,339,000, respectively, were deposited in financial institutions located in mainland China, which were insured by the government authority. Under the Deposit Insurance System in China, an enterprise’s deposits at one bank are insured for a maximum of approximately $80,000 (RMB500,000). To limit exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in China which management believes are of high credit quality. The Company’s operations are carried out entirely in mainland China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the social, political, economic and legal environments in the PRC as well as by the general state of the PRC economy. In addition, the Company’s business may be influenced by changes in PRC government laws, rules and policies with respect to, among other matters, the response to the COVID-19 pandemic, anti-inflationary measures, currency conversion and remittance of currency outside of China, rates and methods of taxation and other factors. b. In measuring the credit risk of accounts receivables due from the automobile purchasers (the “customers”), the Company mainly reflects the “probability of default” by the customer on its contractual obligations and considers the current financial position of the customer and the risk exposures to the customer and its likely future development. Historically, most of the automobile purchasers would pay the Company their previously defaulted amounts within one to three months. As a result, the Company would provide full provisions on accounts receivable if the customers default on repayments for over three months. As of March 31, 2022 and March 31, 2021, allowance for doubtful accounts amounted to $112,905 and $1,739 was provided for continuing operations, respectively. As of March 31, 2021, allowance for doubtful accounts amounted to $76,428 was provided for discontinued operations. For the years ended March 31, 2022 and 2021, the Company wrote off accounts receivable of $44,227 and $89,921 from continuing operations, respectively, which represent due from automobile purchasers from continuing operation. For the years ended March 31, 2022 and 2021, the Company wrote off accounts receivable of $16,273 and $395,463 from discontinued operations, respectively, which represent due from automobile purchasers. 2) Foreign currency risk As of March 31, 2022 and March 31, 2021, substantially all of the Company’s operating activities and major assets and liabilities, except for the cash deposit of approximately $117,000 and $2,073,000, respectively, in U.S. dollars, are denominated in RMB, which are not freely convertible into foreign currencies. All foreign exchange transactions take place through either the People’s Bank of China (“PBOC”) or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other regulatory institutions requires a payment application together with invoices and signed contracts. The value of RMB is subject to change in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. When there is a significant change in value of RMB, the gains and losses resulting from translation of financial statements of a foreign subsidiary will be significantly affected. RMB was appreciated from 6.55 RMB into US$1.00 on March 31, 2021 to 6.34 RMB into US$1.00 on March 31, 2022. |
Reclassification | (y) Reclassification Certain items of operating expenses in the unaudited condensed consolidated statements of operations and comprehensive loss of comparative period have been reclassified to conform to the unaudited condensed consolidated financial statements for the current period. The reclassification has no impact on net loss. | (x) Reclassification Certain items of operating expenses in the consolidated statements of operations and comprehensive of comparative period have been reclassified to conform to the consolidated financial statements for the current period. The reclassification has no impact on net loss. |
Recently issued accounting standards | (z) Recently issued accounting standards In June 2016, the FASB issued new accounting guidance ASU 2016-13 for recognition of credit losses on financial instruments, which is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. In November 2019, the FASB issued ASU No. 2019-10, which is to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet adopted this update and it will become effective on April 1, 2023, assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. CECL adoption will have broad impact on the financial statements of financial services firms, which will affect key profitability and solvency measures. Some of the more notable expected changes include: - Higher allowance on financial guarantee reserve and finance lease receivable levels and related deferred tax assets. While different asset types will be impacted differently, the expectation is that reserve levels will generally increase across the board for all financial firms. - Increased reserve levels may lead to a reduction in capital levels. - As a result of higher reserving levels, the expectation is that CECL will reduce cyclicality in financial firms’ results, as higher reserving in “good times” will mean that less dramatic reserve increases will be loan related income (which will continue to be recognized on a periodic basis based on the effective interest method) and the related credit losses (which will be recognized up front at origination). This will make periods of loan expansion seem less profitable due to the immediate recognition of expected credit losses. Periods of stable or declining loan levels will look comparatively profitable as the income trickles in for loans, where losses had been previously recognized. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the unaudited condensed consolidated financial position, statements of operations and cash flows of the Company. | (y) Recently issued accounting standards In June 2016, the FASB issued new accounting guidance ASU 2016-13 for recognition of credit losses on financial instruments, which is effective January 1, 2020, with early adoption permitted on January 1, 2019. The guidance introduces a new credit reserving model known as the Current Expected Credit Loss (“CECL”) model, which is based on expected losses, and differs significantly from the incurred loss approach used today. The CECL model requires measurement of expected credit losses not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information and will likely result in earlier recognition of credit reserves. In November 2019, the FASB issued ASU No. 2019-10, which is to update the effective date of ASU No. 2016-13 for private companies, not-for-profit organizations and certain smaller reporting companies applying for credit losses standard. The new effective date for these preparers is for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has not yet adopted this update and it will become effective on April 1, 2023, assuming the Company will remain eligible to be smaller reporting company. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. CECL adoption will have broad impact on the financial statements of financial services firms, which will affect key profitability and solvency measures. Some of the more notable expected changes include: - Higher allowance on financial guarantee reserve and finance lease receivable levels and related deferred tax assets. While different asset types will be impacted differently, the expectation is that reserve levels will generally increase across the board for all financial firms. - Increased reserve levels may lead to a reduction in capital levels. - As a result of higher reserving levels, the expectation is that CECL will reduce cyclicality in financial firms’ results, as higher reserving in “good times” will mean that less dramatic reserve increases will be loan related income (which will continue to be recognized on a periodic basis based on the effective interest method) and the related credit losses (which will be recognized up front at origination). This will make periods of loan expansion seem less profitable due to the immediate recognition of expected credit losses. Periods of stable or declining loan levels will look comparatively profitable as the income trickles in for loans, where losses had been previously recognized. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The adoption of this standard on April 1, 2021 did not have a material impact on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendment in this Update is to address issues identified as a result of the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, the Board decided to reduce the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this Update are effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company has adopted this standard for the fiscal year beginning April 1, 2021. In May 2021, The FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40)”. The amendments in this Update provide the following guidance for a modification or an exchange of a freestanding equity-classified written call option that is not within the scope of another Topic: (1) An entity should treat a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as an exchange of the original instrument for a new instrument. (2) An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows: a. For a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a “debt” or “debt instrument”), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged. Specifically, an entity should consider: a. An increase or a decrease in the fair value of the modified or exchanged written call option in applying the 10 percent cash flow test and/or calculating the fees between debtor and creditor in accordance with Subtopic 470-50, Debt—Modifications and Extinguishments. ii. An increase (but not a decrease) in the fair value of the modified or exchanged written call option in calculating the third-party costs in accordance with Subtopic 470-50. b. For all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged. c. An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange on the basis of the substance of the transaction, in the same manner as if cash had been paid as consideration, as follows: a. A financing transaction to raise equity. The effect should be recognized as an equity issuance cost in accordance with the guidance in Topic 340, Other Assets and Deferred Costs. b. A financing transaction to raise or modify debt. The effect should be recognized as a cost in accordance with the guidance in Topic 470, Debt, and Topic 835, Interest. c. Other modifications or exchanges that are not related to financings or compensation for goods or services or other exchange 3 transactions within the scope of another Topic. The effect should be recognized as a dividend. For entities that present EPS in accordance with Topic 260, that dividend should be an adjustment to net income (or net loss) in the basic EPS calculation. An entity should recognize the effect of a modification or an exchange of a freestanding equity-classified written call option to compensate for goods or services in accordance with the guidance in Topic 718, Compensation—Stock Compensation. In a multiple-element transaction (for example, one that includes both debt financing and equity financing), the total effect of the modification should be allocated to the respective elements in the transaction. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. The Company is currently evaluating the impact of this new standard on Company’s consolidated financial statements and related disclosures. Adoption of this new update will not materially impact the Company’s consolidated financial statements and related disclosures. In July 2021, The FASB issued ASU 2021-05, “Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments” The amendments in this Update affect lessors with lease contracts that (1) have variable lease payments that do not depend on a reference index or a rate and (2) would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing. The amendments amend the lease classification requirements for lessors to align them with practice under Topic 840. Lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if both of the following criteria are met: (1) The lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria in paragraphs 842-10-25-2 through 25-3. (2) The lessor would have otherwise recognized a day-one loss. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not derecognize the underlying asset, and, therefore, does not recognize a selling profit or loss. The leased asset continues to be subject to the measurement and impairment requirements under other applicable GAAP 3 before and after the lease transaction (for example, Topic 360, Property, Plant, and Equipment). The amendments are effective for fiscal years beginning after December 15, 2021, for all entities, and interim periods within those fiscal years for public business entities and interim periods within fiscal years beginning after December 15, 2022, for all other entities. Adoption of this new update will not materially impact the Company’s consolidated financial statements and related disclosures. 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_7
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | ||
Schedule of total assets and total liabilities VIEs | On December 7, 2021, XXTX entered into a series of contractual arrangements (collectively, the “Youlu VIE Agreements”) with Youlu and each of its equity holders (“Youlu Shareholders”). The term of Youlu is similar to the Youlu VIE Agreements with Sichuan Senmiao as described above. According to the VIE Agreements, Youlu was obligated to pay XXTX service fees approximately equal to its net income. Youlu’s entire operations were, in fact, directly controlled by XXTX. There were no unrecognized revenue-producing assets that were held by Youlu. However, on March 31, 2022, the Youlu VIE Agreements were terminated by XXTX and Youlu Shareholders. As Youlu had limited operation, the termination had no significant impact on the consolidated financial statements. Total assets and total liabilities of the Company’s VIEs included in the Company’s consolidated financial statements as of March 31, 2022 and 2021 are as follows after Jinkailong and Youlu deconsolidated from the Company’s consolidated financial statements at March 31, 2022: March 31, March 31, 2022 2021 Current assets: Cash and cash equivalents $ — $ 27,229 Accounts receivable, net, current portion — — Prepayments, other receivables and other assets, net — 135 Other receivable- intercompany — 1,718,343 Current assets - discontinued operations (1) — 2,995,558 Total current assets — 4,741,265 Property and equipment, net: Property and equipment, net — — Property and equipment, net - discontinued operations — 454,228 Total property and equipment, net — 454,228 Other assets: Operating lease right-of-use assets, net, related parties — 9,896 Other assets - discontinued operations — 4,674,403 Total other assets — 4,684,299 Total assets $ — $ 9,879,792 Current liabilities: Accrued expenses and other liabilities $ — $ 581,126 Other payable - intercompany — 2,715,847 Due to related parties and affiliates — 82,908 Operating lease liabilities - related parties — 4,989 Current liabilities - discontinued operations (2) — 15,896,580 Total current liabilities — 19,281,450 Other liabilities: Operating lease liabilities, non-current - related parties — 3,850 Other liabilities - discontinued operations — 2,250,393 Total other liabilities — 2,254,243 Total liabilities $ — $ 21,535,693 (1) Includes intercompany receivables of $0 and intercompany payables of $274,731 as of March 31, 2022 and March 31, 2021, respectively. (2) Includes intercompany payables of $0 and $4,203,454 as of March 31, 2022 and March 31, 2021, respectively. | |
Schedule of net revenue, loss from operations and net loss of the VIEs | For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021* (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net revenue from continuing operations $ — $ 152 $ — $ 23,380 Net revenue from discontinued operations $ — $ 1,882,930 $ — $ 5,096,441 Loss from operations from continuing operations $ — $ (57,616) $ — $ (107,802) Loss from operations from discontinued operations $ — $ (390,710) $ — $ (2,182,402) Net loss from continuing operations attributable to stockholders $ — $ (57,141) $ — $ (105,760) Net loss from discontinued operations attributable to stockholders — (309,583) — (1,789,880) Net loss attributable to stockholders $ — $ (366,724) $ — $ (1,895,640) * Net revenue, loss from operations and net loss attributable to stockholders for the three and nine months ended December 31, 2021 were retroactively restated for comparative purpose. | Net revenue, loss from operations and net loss of the VIEs that were included in the Company’s consolidated financial statements for the years ended March 31, 2022 and 2021 are as follows: For the Years Ended March 31, 2022 2021* Net revenue from continuing operations $ 32,817 $ — Net revenue from discontinued operations $ 6,830,116 $ 3,978,847 Loss from operations from continuing operations $ (179,068) $ (532,455) Loss from operations from discontinued operations $ (2,537,715) $ (4,254,403) Net loss from continuing operations attributable to stockholders $ (175,283) $ (530,983) Net loss from discontinued operations attributable to stockholders $ (2,032,934) $ (3,722,648) Net loss attributable to stockholders $ (2,208,218) $ (4,253,630) |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of translation of amounts from RMB into US$ | December 31, March 31, 2022 2022 Balance sheet items, except for equity accounts 6.8972 6.3400 For the Three Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss 7.1120 6.3937 For the Nine Months Ended December 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.8547 6.4408 | Translation of amounts from RMB into US$ has been made at the following exchange rates for the respective periods: March 31, March 31, 2022 2021 Balance sheet items, except for equity accounts 6.3400 6.5527 For the Years Ended March 31, 2022 2021 Items in the statements of operations and comprehensive loss, and statements of cash flows 6.4178 6.7960 |
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | Carrying Value as of Fair Value Measurement as of December 31, 2022 December 31, 2022 (Unaudited) Level 1 Level 2 Level 3 Derivative liabilities $ 572,021 $ — $ — $ 572,021 Fair Value Measurement as of Carrying Value as of March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2022 and March 31, 2021: Carrying Value at Fair Value Measurement at March 31, 2022 March 31, 2022 Level 1 Level 2 Level 3 Derivative liabilities $ 2,215,204 $ — $ — $ 2,215,204 Carrying Value at Fair Value Measurement at March 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Derivative liabilities $ 1,278,926 $ — $ — $ 1,278,926 |
Schedule of reconciliation of beginning and ending balance of the assets and liabilities measured at fair value on recurring basis | August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2021 $ 80,268 $ 163,572 $ 397,525 $ 637,561 $ — $ — $ — $ — $ 1,278,926 Derivative liabilities recognized at grant date — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — (45,675) BALANCE as of March 31, 2022 1,913 10,525 44,581 65,543 778,488 58,387 1,165,465 90,302 2,215,204 Change in fair value of derivative liabilities (1,878) (10,342) (34,526) (51,581) (589,804) (44,236) (843,900) (65,383) (1,641,650) Cashless exercise on November 2021 Investor warrant — — — — — — (1,533) — (1,533) BALANCE as of December 31, 2022 (Unaudited) $ 35 $ 183 $ 10,055 $ 13,962 $ 188,684 $ 14,151 $ 320,032 $ 24,919 $ 572,021 | The following is a reconciliation of the beginning and ending balance of the assets and liabilities measured at fair value on a recurring basis for the years ended March 31, 2022 and 2021: August February 2020 2021 Underwritten Registered May 2021 November 2021 2019 Registered Direct Offering Public Direct Registered Direct Offering Private Placement Series A Series B Placement Offering Offering Investors Placement Investors Placement Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Total BALANCE as of March 31, 2020 $ 315,923 $ 1,371 $ 25,236 $ — $ — $ — $ — $ — $ — $ 342,530 Derivative liabilities recognized at grant date — — — 241,919 755,274 — — — — 997,193 Change in fair value of derivative liabilities 1,234,630 — 138,336 455,162 (117,713) — — — — 1,710,415 Fair value of warrants exercised (1,470,285) — — (299,556) — — — — — (1,769,841) Warrant forfeited due to expiration — (1,371) — — — — — — — (1,371) BALANCE as of March 31, 2021 80,268 — 163,572 397,525 637,561 — — — — 1,278,926 Derivative liabilities recognized at grant date — — — — — 3,313,864 248,541 4,060,857 310,173 7,933,435 Change in fair value of derivative liabilities (32,680) — (153,047) (352,944) (572,018) (2,535,376) (190,154) (2,895,392) (219,871) (6,951,482) Fair value of warrants exercised (45,675) — — — — — — — — (45,675) BALANCE as of March 31, 2022 $ 1,913 $ — $ 10,525 $ 44,581 $ 65,543 $ 778,488 $ 58,387 $ 1,165,465 $ 90,302 $ 2,215,204 |
Schedule of estimates of fair value to warrants using Black Scholes valuation model | June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of December 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,310,763 55,148 Valuation date 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 12/31/2022 Exercise price $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09 Expected term (years) 0.47 0.47 2.59 3.12 3.12 3.37 3.37 3.86 3.86 Risk-free interest rate 2.22 % 2.22 % 4.35 % 4.21 % 4.21 % 4.18 % 4.18 % 4.12 % 4.12 % Expected volatility 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % 122 % As of March 31, 2022 June 20, August 4, February 10, May 13, November 10, 2019 2020 2021 2021 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 5,335,763 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 1.13 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022. | The Company’s Series A and Series B warrants, the June 2019 Placement Agent Warrants, the Underwriters’ Warrants, the ROFR Warrants, the May 2021 Investors Warrants, the May 2021 Placement Agent Warrants, and the November 2021 Investors Warrants and November 2021 Placement Agent Warrants are not traded in an active securities market; therefore, the Company estimates the fair value to those warrants using the Black-Scholes valuation model on June 20, 2019 (the grant date), August 4, 2020 (the grant date), February 10, 2021 (the grant date), May 13, 2021 (the grant date), November 10, 2021 (the grant date), as of March 31, 2022 and March 31, 2021. June 20, 2019 August 4, 2020 February 10, 2021 May 13, 2021 November 10, 2021 Series A Series B Placement Agent Underwriters’ Placement Agent ROFR Investor Placement Agent Investor Placement Agent Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 133,602 111,632 14,251 56,800 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 6/20/2019 6/20/2019 6/20/2019 8/4/2020 2/10/2021 2/10/2021 5/13/2021 5/13/2021 11/10/2021 11/10/2021 Exercise price* $ 37.20 $ 37.20 $ 33.80 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 28.00 $ 28.00 $ 28.00 $ 5.10 $ 16.30 $ 16.30 $ 7.20 $ 7.20 $ 6.70 $ 6.70 Expected term (years) 4 1 4 5 5 5 5 5 5 5 Risk-free interest rate 1.77 % 1.91 % 1.77 % 0.19 % 0.46 % 0.46 % 0.84 % 0.84 % 1.23 % 1.23 % Expected volatility 86 % 91 % 86 % 129 % 132 % 132 % 131 % 131 % 126 % 126 % As of March 31, 2022 August 4, June 20, 2019 2020 February 10, 2021 May 13, 2021 November 10, 2021 Placement Placement Placement Placement Series A Agent Underwriters’ Agent ROFR Investor Agent Investor Agent Granted Date Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 2,590 14,251 31,808 38,044 15,218 553,192 41,490 735,295 55,148 Valuation date 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 3/31/2022 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 $ 10.50 $ 10.50 $ 8.20 $ 6.80 Stock price* $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 $ 2.30 Expected term (years) 1.22 1.22 3.35 3.87 3.87 4.12 4.12 4.62 4.62 Risk-free interest rate 1.77 % 1.77 % 2.44 % 2.44 % 2.44 % 2.43 % 2.43 % 2.43 % 2.43 % Expected volatility 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % 123 % As of March 31, 2021 June 20, 2019 August 4, 2020 February 10, 2021 Series A Placement Agent Underwriters’ Placement Agent ROFR Granted Date Warrants Warrants Warrants Warrants Warrants # of shares exercisable* 6,993 14,251 31,808 38,044 15,218 Valuation date 3/31/2021 3/31/2021 3/31/2021 3/31/2021 3/31/2021 Exercise price* $ 5.00 $ 5.00 $ 6.30 $ 13.80 $ 17.30 Stock price* $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Expected term (years) 2.22 2.22 4.35 4.87 4.87 Risk-free interest rate 0.20 % 0.20 % 0.73 % 0.88 % 0.88 % Expected volatility 132 % 132 % 132 % 132 % 132 % *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
Schedule of finance lease receivables | December 31, March 31, 2022 2022 (Unaudited) Minimum lease payments receivable $ 288,026 $ 511,030 Less: Unearned interest (67,484) (103,786) Financing lease receivables, net $ 220,542 $ 407,244 Finance lease receivables, net, current portion $ 170,337 $ 314,264 Finance lease receivables, net, non-current portion $ 50,205 $ 92,980 | As of March 31, 2022 and March 31, 2021, finance lease receivables consisted of the following: March 31, March 31, 2022 2021 Minimum lease payments receivable $ 511,030 $ 1,343,662 Less: Unearned interest (103,786) (328,585) Financing lease receivables, net $ 407,244 $ 1,015,077 Finance lease receivables, net, current portion $ 314,264 $ 541,605 Finance lease receivables, net, non-current portion $ 92,980 $ 473,472 |
Schedule of future scheduled minimum lease payments for investments in sales-type leases | Minimum future payments receivable Twelve months ending December 31, 2023 $ 196,715 Twelve months ending December 31, 2024 66,544 Twelve months ending December 31, 2025 24,767 Total $ 288,026 | Future scheduled minimum lease payments for investments in sales-type leases as of March 31, 2022 are as follows: Minimum future payments receivable Twelve months ending March 31, 2023 $ 345,425 Twelve months ending March 31, 2024 150,633 Twelve months ending March 31, 2025 14,972 Total $ 511,030 |
Schedule of property and equipment | Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment, fixture and furniture 3 - 5 years Automobiles 3 - 5 years | Property and equipment primarily consist of automobiles, leasehold improvements, computers and other 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: Categories Useful life Leasehold improvements Shorter of the remaining lease terms or estimated useful lives Computer equipment 2 - 5 years Office equipment 3 - 5 years Automobiles 3 - 5 years |
Schedule of separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives using the straight-line method | Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 years | 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: Categories Useful life Software 5-10 years Online ride-hailing platform operating license 2-10 years |
Schedule of disaggregated information of revenues | For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 781,210 $ 510,636 $ 2,570,959 $ 1,165,625 - Service fees from NEVs leasing 49,002 43,015 291,675 87,112 - Revenues from sales of automobiles — — 225,900 — - Service fees from automobile purchase services — — 21,192 — - Service fees from management and guarantee services 8,915 11,616 31,659 54,987 - Financing revenues 8,606 22,072 30,965 86,454 - Other service fees 82,892 55,624 181,050 140,960 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 930,625 642,963 3,353,400 1,535,138 Online Ride-hailing Platform Services (Continuing Operations) 810,295 1,017,156 2,970,518 1,617,454 Total Revenues from Continuing Operations 1,740,920 1,660,119 6,323,918 3,152,592 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals — 1,436,886 — 4,274,900 - Service fees from NEVs leasing — 242 — 58,185 - Commission from Online Ride-hailing platforms — 274,643 — 274,643 - Service fees from management and guarantee services — 38,221 — 96,019 - Financing revenues — 3,677 — 15,284 - Other service fees — 129,261 — 377,410 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) — 1,882,930 — 5,096,441 Total revenues $ 1,740,920 $ 3,543,049 $ 6,323,918 $ 8,249,033 | For the Years Ended March 31, 2022 2021 Automobile Transaction and Related Services (Continuing Operations) - Operating lease revenues from automobile rentals $ 1,722,480 $ 224,590 - Service fees from NEVs leasing 126,227 — - Financing revenues 101,828 184,115 - Service fees from management and guarantee services 73,554 79,565 - Service fees from automobile purchase services 1,468 188,822 - Revenues from sales of automobiles 26,019 487,947 - Other service fees 196,069 120,547 Total revenues from Automobile Transaction and Related Services (Continuing Operations) 2,247,645 1,285,586 Online Ride-hailing Platform Services (Continuing Operations) 2,665,457 903,254 Total Revenues from Continuing Operations 4,913,102 2,188,840 Online Lending Services (Discontinued Operations) -Transaction fees — 3,488 - Service fees — 3,665 Total revenues from Online Lending Services (Discontinued Operations) — 7,153 Automobile Transaction and Related Services (Discontinued Operations) -Operating lease revenues from automobile rentals 5,452,483 3,207,781 - Commissions from online ride-hailing platforms 399,600 32,797 - Service fees from NEVs leasing 232,295 — -Financing revenues 15,855 43,744 -Service fees from management and guarantee services 217,838 206,248 -Facilitation fees from automobile transactions — 1,665 -Other service fees 512,045 479,459 Total revenues from Automobile Transaction and Related Services (Discontinued Operations) 6,830,116 3,971,694 Total Revenues from Discontinued Operations 6,830,116 3,978,847 Total revenues $ 11,743,218 $ 6,167,687 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
BUSINESS COMBINATION | |
Summary of fair value of the identifiable assets acquired and liabilities assumed | Under ASC 805-30-30-1, goodwill is calculated as follows as of March 31, 2022: Fair value Purchase consideration paid $ 472,573 Fair value of non-controlling interest 326,570 Less: fair value of nets assets of XXTX: Cash and cash equivalents 105,386 Other current assets 525,005 Plant and equipment 790 Intangible assets 265,536 Total assets 896,717 Total liabilities (230,247) Total fair value of net assets of XXTX 666,470 Goodwill as of the acquisition date 132,673 Effect of exchange rate changes on goodwill 7,257 Less: impairment loss of goodwill (139,930) Goodwill as of March 31, 2022 $ — |
DISCONTINUED OPERATIONS (Tabl_2
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Schedule of gain on deconsolidation | March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 | |
Online Lending Business [Member] | ||
Schedule of disposal Groups, Including Discontinued Operations | Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: December 31, March 31, 2022 2022 (Unaudited) Current liabilities Accrued expenses and other liabilities $ 468,376 $ 509,540 Due to a stockholder 17,360 18,886 Total current liabilities 485,736 528,426 | Carrying amounts of major classes of assets included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current assets Prepayments, other receivables and other assets, net $ — $ 393,348 Total current assets — 393,348 Property and equipment, net — 5,592 Total assets $ — $ 398,940 Carrying amounts of major classes of liabilities included as part of discontinued operations of Online P2P lending services: March 31, March 31, 2022 2021 Current liabilities Accrued expenses and other liabilities $ 509,540 $ 2,288,066 Due to a stockholder 18,886 48,795 Total current liabilities 528,426 2,336,861 Total liabilities $ 528,426 $ 2,336,861 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Online P2P lending services in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ — $ 7,153 Operating expenses Selling, general and administrative expenses — (88,438) Total operating expenses — (88,438) Loss from discontinued operations — (81,285) Other income, net — 19,309 Loss before income taxes — (61,976) Income tax expenses — — Net loss attributable to stockholders $ — $ (61,976) |
Jinkailong [Member] | ||
Schedule of disposal Groups, Including Discontinued Operations | The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended December 31, 2022 and 2021. For the Three Months Ended For the Nine Months Ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $ — $ 1,882,930 $ — $ 5,096,441 Cost of revenue — (1,375,818) — (4,295,661) Gross profit — 507,112 — 800,780 Operating expenses Selling, general and administrative expenses — (525,673) — (2,597,474) Amortization of intangible assets — (395,398) — (395,398) Impairments of intangible assets and goodwill — (6,007) — (35,609) Recovery of bad debts expense — 29,256 — 45,299 Total operating expenses — (897,822) — (2,983,182) Loss from discontinued operations — (390,710) — (2,182,402) Other expense, net — (27,645) — (236,355) Income (loss) before income taxes — (418,355) — (2,418,757) Income tax expenses — — — — Net loss — (418,355) — (2,418,757) Less: net loss from discontinued operations attributable to noncontrolling interest — (108,772) — (628,877) Net loss attributable to stockholders $ — $ (309,583) $ — $ (1,789,880) | Carrying amounts of major classes of assets included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current assets Cash and cash equivalents $ — $ 107,546 Accounts receivable, net — 935,164 Prepayments, receivables and other assets, net — 1,245,195 Due from related parties — 39,572 Total current assets — 2,327,477 Property and equipment, net — 448,816 Other assets Operating lease right-of-use assets, net — 265,470 Financing lease right-of use assets, net — 4,201,693 Accounts receivable, net, noncurrent — 207,240 Total other assets — 4,674,403 Total assets $ — $ 7,450,696 Carrying amounts of major classes of liabilities included as part of discontinued operations of Jinkailong: March 31, March 31, 2022 2021 Current liabilities Borrowings from financial institutions $ — $ 310,662 Advance from customers — 45,413 Income tax payable — 17,408 Accrued expenses and other liabilities — 3,782,365 Due to related parties and affiliates — 269,918 Operating lease liabilities — 99,831 Finance lease liabilities — 4,814,808 Total current liabilities — 9,340,405 Other liabilities Borrowings from financial institutions, noncurrent — 44,962 Operating lease liabilities, non-current — 167,822 Financing lease liabilities, non-current — 2,037,609 Total other liabilities — 2,250,393 Total liabilities $ — $ 11,590,798 The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Jinkailong in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2022 and 2021. For the Years Ended March 31, 2022 2021 Revenues $ 6,830,116 $ 3,971,694 Cost of revenues (5,183,806) (3,985,413) Gross profit 1,646,310 (13,719) Operating expenses Selling, general and administrative expenses (4,139,800) (4,367,529) Long live assets impairment (32,479) (119,886) Recovery of (Provision for) doubtful account (11,746) 328,016 Total operating expenses (4,184,025) (4,159,399) Loss from discontinued operations (2,537,715) (4,173,118) Other expense, net (209,494) (945,825) Loss before income taxes (2,747,209) (5,118,943) Income tax expenses — (6,295) Net Loss (2,747,209) (5,125,238) Less: net loss from discontinued operations attributable to noncontrolling interest 714,274 1,332,562 Net loss attributable to stockholders $ (2,032,935) $ (3,792,676) |
Schedule of gain on deconsolidation | Consolidation included Jinkailong as of Deconsolidation Consolidation as of March 31, 2022 of Jinkailong March 31, 2022 ASSETS Current assets Cash and cash equivalents $ 1,241,452 $ (56,231) $ 1,185,221 Accounts receivable, net, current portion 766,373 (348,351) 418,022 Inventories 286,488 — 286,488 Finance lease receivables, net, current portion 314,264 — 314,264 Prepayments, other receivables and other assets, net 3,699,361 (986,153) 2,713,208 Due from related parties, current portion (1) 51,135 631,200 682,335 Total current assets 6,359,073 (759,535) 5,599,538 Property and equipment, net Property and equipment, net 5,916,327 (257,554) 5,658,773 Total property and equipment, net 5,916,327 (257,554) 5,658,773 Other assets Operating lease right-of-use assets, net 306,330 (196,709) 109,621 Operating lease right-of-use assets, net, related parties 515,906 — 515,906 Financing lease right-of-use assets, net 1,349,922 (1,043,989) 305,933 Intangible assets, net 959,551 — 959,551 Accounts receivable, net, noncurrent 2,732 (2,663) 69 Finance lease receivables, net, noncurrent 92,980 — 92,980 Due from a related party, noncurrent (1) — 6,635,746 6,635,746 Total other assets 3,227,421 5,392,385 8,619,806 Total assets $ 15,502,821 $ 4,375,296 $ 19,878,117 LIABILITIES AND EQUITY (DEFICIENCY) Current liabilities Borrowings from financial institutions $ 471,913 $ (326,371) $ 145,542 Accounts payable 14,446 - 14,446 Advances from customers 1,087,928 (967,299) 120,629 Income tax payable 17,992 (17,992) — Accrued expenses and other liabilities 7,316,269 (4,871,902) 2,444,367 Due to related parties and affiliates 478,825 (467,143) 11,682 Operating lease liabilities 164,321 (114,144) 50,177 Operating lease liabilities - related parties 330,781 — 330,781 Financing lease liabilities 3,502,481 (3,197,924) 304,557 Derivative liabilities 2,215,204 — 2,215,204 Current liabilities - discontinued operations 528,426 — 528,426 Total current liabilities 16,128,586 (9,962,775) 6,165,811 Other liabilities Borrowings from financial institutions, noncurrent 9,271 (9,271) — Operating lease liabilities, non-current 135,323 (87,413) 47,910 Operating lease liabilities, non-current - related parties 226,896 — 226,896 Financing lease liabilities, non-current 793,980 (792,604) 1,376 Deferred tax liability 46,386 — 46,386 Total other liabilities 1,211,856 (889,288) 322,568 Total liabilities 17,340,442 (10,852,063) 6,488,379 Commitments and contingencies Mezzanine Equity (redeemable) Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 shares issued and outstanding at December 31, 2021), net of issuance costs of $118,344 820,799 — 820,799 Stockholders’ equity (deficiency) Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 shares issued and outstanding at March 31, 2022.) (2) 630 — 630 Additional paid-in capital 42,803,033 — 42,803,033 Accumulated deficit (45,553,090) 10,951,545 (34,601,545) Accumulated other comprehensive income (loss) (780,112) 670,658 (109,454) Total Senmiao Technology Limited stockholders’ equity (deficiency) (3,529,539) 11,622,203 8,092,664 Non-controlling interests 871,119 3,605,156 4,476,275 Total equity (deficiency) 2,658,420 15,227,359 12,568,939 Total liabilities and equity (deficiency) $ 15,502,821 $ 4,375,296 $ 19,878,117 (1) As result of deconsolidation, the Company recognized $7,298,208 of related party receivable from Jinkailong, of which, $6,635,746 is to be repaid over a period from April 2023 to December 2026, classified as due from related parties, noncurrent. Besides, the deconsolidation also excluded $31,263 receivables due from related parties, which was recorded by Jinkailong. (2) Giving retroactive effect to the 1-for-10 March 31, 2022 Carrying amount of net deficit of Jinkailong as of March 31, 2022 $ 15,227,359 Carrying amount of non-controlling interest (3,605,156) Cumulative currency translation adjustment removal (670,658) Net gain on deconsolidation of Jinkailong $ 10,951,545 |
ACCOUNTS RECEIVABLE, NET (Tab_2
ACCOUNTS RECEIVABLE, NET (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET | ||
Schedule of accounts receivable | December 31, March 31, 2022 2022 (Unaudited) Receivables of automobile sales due from automobile purchasers $ 107,246 $ 392,530 Receivables of service fees due from automobile purchasers 15,949 17,350 Receivables of online ride hailing fees from online ride-hailing drivers 46,848 121,116 Receivables of operating lease 34,720 — Less: Allowance for doubtful accounts — (112,905) Accounts receivable, net $ 204,763 $ 418,091 Accounts receivable, net, current portion $ 204,763 $ 418,022 Accounts receivable, net, non-current portion $ — $ 69 | As of March 31, 2022 and March 31, 2021, accounts receivable were comprised of the following: March 31, March 31, 2022 2021 Receivables of automobile sales due from automobile purchasers $ 392,530 $ 760,126 Receivables of service fees due from automobile purchasers 17,350 731,962 Receivables of online ride hailing fees from online ride-hailing drivers 121,116 162,197 Receivables of operating lease — 170,707 Less: Unearned interest — (40,447) Less: Allowance for doubtful accounts (112,905) (78,167) Accounts receivable, net 418,091 1,706,378 Accounts receivable, net – discontinued operations — (1,142,404) Accounts receivable, net – continuing operations $ 418,091 $ 563,974 Accounts receivable, net, current portion – continuing operations $ 418,022 $ 502,031 Accounts receivable, net, non-current portion – continuing operations 69 61,943 Accounts receivable, net, current portion – discontinued operations — 935,164 Accounts receivable, net, non-current portion – discontinued operations $ — $ 207,240 |
Schedule of movement of allowance for doubtful accounts | December 31, March 31, 2022 2022 (Unaudited) Beginning balance $ 112,905 $ 78,167 Addition 3,392 153,988 Write off (107,820) (44,227) Deconsolidation of Jinkailong — (76,428) Translation adjustment (8,477) 1,405 Ending balance $ — $ 112,905 | Movement of allowance for doubtful accounts for March 31, 2022 and March 31, 2021 are as follows: March 31, March 31, 2022 2021 Beginning balance $ 78,167 $ 379,689 Addition 153,988 374,785 Recovery — (209,723) Write off (44,227) (485,384) Deconsolidation of Jinkailong (76,428) — Translation adjustment 1,405 18,800 Ending balance $ 112,905 $ 78,167 |
INVENTORIES (Tables)_2
INVENTORIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INVENTORIES | ||
Schedule of inventories | December 31, March 31, 2022 2022 (Unaudited) Automobiles (i) $ — $ 286,488 | March 31, March 31, 2022 2021 Automobiles (i) $ 286,488 $ 127,933 (i) As of March 31, 2022, the Company owned 36 automobiles with a total value of $346,886 for sale or sales-type leases. As of March 31, 2021, the Company owned three automobiles with a total value of $47,410 for sale, and six automobiles with a total value of $80,523 for either leasing or sale. |
PREPAYMENTS, OTHER RECEIVABLE_6
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS | ||
Schedule of prepayments, receivables and other assets | December 31, March 31, 2022 2022 (Unaudited) Deposits (i) $ 618,689 $ 731,279 Receivables from aggregation platforms (ii) 253,168 163,384 Prepaid expenses (iii) 242,779 957,200 Due from automobile purchasers, net (iv) 103,333 238,421 Employee advances 8,951 11,054 Value added tax (“VAT”) recoverable (v) 93,214 597,884 Others 42,683 13,986 Total prepayments, receivables and other assets $ 1,362,817 $ 2,713,208 | As of March 31, 2022 and March 31, 2021, the prepayments, receivables and other assets were comprised of the following: March 31, March 31, 2022 2021 Receivables from borrowers of online lending platform, net (i) $ — $ 393,348 Prepaid expenses (ii) 957,200 829,032 Deposits (iii) 731,279 537,619 Value added tax (“VAT”) recoverable 597,884 99,445 Due from automobile purchasers, net (iv) 238,421 504,792 Receivables from aggregation platforms (v) 163,384 867,614 Prepayments for automobiles (vi) — 1,026,802 Employee advances 11,054 9,739 Others 13,986 30,235 Total prepayments, receivables and other assets 2,713,208 4,298,626 Total prepayments, receivables and other assets - discontinued operations — (1,638,543) Total prepayments, receivables and other assets - continuing operations $ 2,713,208 $ 2,660,083 (i ) Receivables from borrowers of online lending platform, net The balance of receivables from borrowers of online lending platform represented the outstanding loans the Company assumed from investors on the Company’s discontinued P2P lending platform, which will be collected from related borrowers. As of March 31, 2022 and March 31, 2021, the Company recorded allowance of $4,024,651 and $3,894,011, respectively, against doubtful receivables. (ii) Prepaid expense The balance of prepaid expense represented automobile liability insurance premium for automobiles for operating lease and other miscellaneous expense such as office lease, office remodel expense and etc. that will expire within one year. (iii) Deposits The balance of deposits mainly represented the security deposit made by the Company to various automobile leasing companies, financial institutions and Didi Chuxing Technology Co., Ltd., who runs an online ride-hailing platform. (iv) Due from automobile purchasers, net 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. As of March 31, 2022 and 2021, the Company recorded allowance of $0 and $3,240, from continuing operations, respectively, against doubtful receivables. As of March 31, 2021, the Company recorded allowance of $38,519 from discontinued operations against doubtful receivables. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $84,600 and $175,460, respectively, while wrote off balance due from automobile purchasers of $84,600 and $172,336, respectively, and recovered allowance against the balance due from automobile purchasers of $3,308 and $0, respectively from continuing operations. During the years ended March 31, 2022 and 2021, the Company recorded additional allowances of $35,983 and $93,246, respectively, while wrote off balance due from automobile purchasers of $1,134 and $295,741, respectively, and recovered allowance against the balance due from automobile purchasers of $12,352 and $125,940, respectively from discontinued operations. (v) Receivables from aggregation platforms The balance of receivables from aggregation platforms represented the amount due from the collaborated aggregation platforms based on the confirmed billings, which will be disbursed to the drivers who completed their rides through the Company’s online ride-hailing platform. (v i) Prepayments for automobiles The balance represented advanced payments in purchasing automobiles from auto dealers or other parties. |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT, NET | ||
Schedule of property and equipment | December 31, March 31, 2022 2022 (Unaudited) Leasehold improvements $ 182,429 $ 198,463 Computer equipment 44,433 47,849 Office equipment, fixtures and furniture 78,036 81,898 Automobiles 4,652,593 6,463,698 Subtotal 4,957,491 6,791,908 Less: accumulated depreciation and amortization (1,427,295) (1,133,135) Total property and equipment, net $ 3,530,196 $ 5,658,773 | March 31, March 31, 2022 2021 Leasehold improvements $ 198,463 $ 192,020 Electronic devices 47,849 53,200 Office equipment, fixtures and furniture 81,898 104,735 Vehicles 6,463,698 3,778,811 Subtotal 6,791,908 4,128,766 Less: accumulated depreciation and amortization (1,133,135) (423,027) Total property and equipment, net 5,658,773 3,705,739 Total property and equipment, net - discontinued operations — (454,408) Total property and equipment, net - continuing operations $ 5,658,773 $ 3,251,331 |
INTANGIBLE ASSETS, NET (Table_2
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
INTANGIBLE ASSETS, NET | ||
Schedule of intangible assets | December 31, March 31, 2022 2022 (Unaudited) Software $ 793,195 $ 796,042 Online ride-hailing platform operating licenses 439,662 450,701 Subtotal 1,232,857 1,246,743 Less: accumulated amortization (413,186) (287,192) Total intangible assets, net $ 819,671 $ 959,551 | March 31, March 31, 2022 2021 Software $ 796,042 $ 794,548 Online ride-hailing platform operating licenses 450,701 297,258 Less: Accumulated amortization (287,192) (123,675) Total intangible assets, net $ 959,551 $ 968,131 |
Schedule of amortization expenses | Amortization expenses Twelve months ending December 31, 2023 $ 179,616 Twelve months ending December 31, 2024 169,528 Twelve months ending December 31, 2025 133,240 Twelve months ending December 31, 2026 85,157 Twelve months ending December 31, 2027 78,586 Thereafter 173,544 Total $ 819,671 | Amortization expenses Twelve months ending March 31, 2023 $ 186,772 Twelve months ending March 31, 2024 178,660 Twelve months ending March 31, 2025 171,289 Twelve months ending March 31, 2026 111,011 Twelve months ending March 31, 2027 79,563 Thereafter 232,256 Total $ 959,551 |
ACCRUED EXPENSES AND OTHER LI_5
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Schedule of accrued expenses and other liabilities | December 31, March 31, 2022 2022 (Unaudited) Accrued payroll and welfare $ 1,305,857 $ 1,176,442 Payables to drivers from aggregation platforms (i) 845,726 806,921 Deposits (ii) 555,513 783,830 Accrued expenses 261,085 94,106 Other taxes payable 113,083 5,260 Loan repayments received on behalf of financial institutions (iii) 63,989 28,704 Payables for expenditures on automobile transaction and related services 26,562 56,222 Other payables 11,770 2,422 Total accrued expenses and other liabilities 3,183,585 2,953,907 Total accrued expenses and other liabilities - discontinued operations (468,376) (509,540) Total accrued expenses and other liabilities - continuing operations $ 2,715,209 $ 2,444,367 (i) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (ii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iii) 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. | March 31, March 31, 2022 2021 Payables to investors of online lending platform (i) $ — $ 1,795,066 Accrued payroll and welfare 1,176,442 1,306,509 Payables to drivers from aggregation platforms (ii) 806,921 2,352,264 Deposits (iii) 783,830 1,639,681 Accrued expenses 94,106 6,090 Payables for expenditures on automobile transaction and related services 56,222 159,388 Loan repayments received on behalf of financial institutions (iv) 28,704 839,770 Other taxes payable 5,260 398,220 Other payables (v) 2,422 446,670 Total accrued expenses and other liabilities 2,953,907 8,943,658 Total accrued expenses and other liabilities - discontinued operations (509,540) (6,070,431) Total accrued expenses and other liabilities - continuing operations $ 2,444,367 $ 2,873,227 (i) The balance of payables to investors of online lending platform represented the outstanding loans from investors on the Company’s discontinued P2P lending platform, which was assumed by the Company in connection with the Plan to discontinue its online lending services business. As of March 31, 2022, the Company has fully settled the outstanding loans. (ii) The balance of payables to drivers from aggregation platforms represented the amount the Company collected on behalf of drivers who completed their transaction through the Company’s online ride-hailing platform base on the confirmed billings. (iii) The balance of deposits represented the security deposit from operating and finance lease customers to cover lease payment and related automobile expense in case the customers’ accounts are in default. The balance is refundable at the end of the lease term, after deducting any missed lease payment and applicable fee. (iv) 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. (v) The balance of other payables represented amount due to suppliers and vendors for operations purposes. |
EQUITY (Tables)_2
EQUITY (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
EQUITY | ||
Summary of allocation of net proceeds | Fair value of the warrants $ 3,562,404 Common stock 2,208,649 Total net proceeds $ 5,771,053 | |
Schedule of RSU activity | Fair value of Investor warrants $ 4,060,857 Series A Preferred Stock 939,143 Total gross proceeds 5,000,000 Issuance cost (630,063) Total net proceeds $ 4,369,937 | |
Schedule of fair value of derivative instrument allocated | Fair value of investor warrants $ 4,060,857 Fair value of placement agent warrants (i) 310,173 Total fair value of warrants allocated to derivative liabilities $ 4,371,030 (i) The issuance costs for placement agent warrants which was classified as liability were immediately expensed. | |
Summary of outstanding warrants | The Company has warrants outstanding as follows giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2021 110,107 110,107 $ 11.60 4.09 Granted 5,985,591 5,985,591 $ 2.11 5.00 Exercised (4,400) (4,400) — — Balance, March 31, 2022 6,091,298 6,091,298 $ 2.28 4.32 Exercised (25,000) (25,000) — — Balance, December 31, 2022 (Unaudited) 6,066,298 6,066,298 $ 2.29 3.81 | Subsequent to the initial recording, the change in the fair value of the warrants, determined under the Black-Scholes valuation model, on each reporting date will result in either an increase or decrease the amount recorded as liability, based on the fluctuations with the Company’s stock price with a corresponding adjustment to other income (or expense). During the year ended March 31, 2022, the change of fair value was a gain of $3,115,263 recognized in the consolidated statements of operations and comprehensive loss based on the increase in fair value of the liabilities since issuance. As of March 31, 2022, the fair value of the derivative instrument totaled $1,255,767. The Company has warrants outstanding, pre reverse split, as follows: Weighted Average Average Remaining Warrants Warrants Exercise Contractual Outstanding Exercisable Price Life Balance, March 31, 2020 1,519,602 1,519,602 $ 1.76 3.21 Granted 1,100,609 1,100,609 $ 1.48 5.00 Forfeited (3,132) (3,132) — — Exercised (1,516,010) (1,516,010) — — Balance, March 31, 2021 1,101,069 1,101,069 $ 1.16 4.09 Granted 13,851,222 13,851,222 $ 0.91 5.00 Exercised (44,029) (44,029) — — Balance, March 31, 2022 14,908,262 14,908,262 $ 0.93 4.32 |
INCOME TAXES (Tables)_2
INCOME TAXES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Schedule of components of income tax expense | For the Three Months ended For the Nine Months ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Deferred income tax expenses — 4,539 — 4,550 Total income tax expenses $ — $ 4,539 $ — $ 4,550 | Income taxes in the PRC are consist of: For the Years ended March 31, 2022 2021 Current income tax expenses $ 4,566 $ 8,332 Deferred income tax expenses — — Total income tax expenses $ 4,566 $ 8,332 |
Schedule of reconciliation of statutory tax rate to effective tax rate | Below is a reconciliation of the statutory tax rate to the effective tax rate: For the Years Ended March 31, 2022 2021 U.S. Statutory tax rate 21.0 % 21.0 % Differential of PRC statutory tax rate 4.0 % 4.0 % Permanent difference of write-off of receivables from guarantee of loans (0.5) % (2.4) % Permanent difference of US (income) expenses not (taxable) deductible in PRC 17.8 % (3.7) % Valuation allowance on deferred income tax asset (43.6) % (17.2) % Others 1.2 % (1.8) % Effective tax rate (0.1) % (0.1) % | |
Continuing Operations [Member] | ||
Schedule of tax effects of temporary differences | December 31, March 31, 2022 2022 (Unaudited) Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,732,507 $ 2,315,793 Net operating loss carryforwards in the U.S. 1,508,215 1,234,789 Allowance for doubtful account 131,775 29,129 Less: valuation allowance (4,372,497) (3,579,711) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 42,746 $ 46,386 Deferred tax liabilities, net $ 42,746 $ 46,386 | The tax effects of temporary differences from continuing operations that give rise to the Company’s deferred tax assets and liabilities are as follows: March 31, March 31, 2022 2021 Deferred Tax Assets Net operating loss carryforwards in the PRC $ 2,315,793 $ 415,533 Net operating loss carryforwards in the U.S. 1,234,789 754,502 Allowance for doubtful account 29,129 1,245 Less: valuation allowance (3,579,711) (1,171,280) Deferred tax assets, net $ — $ — Deferred tax liabilities: Capitalized intangible assets cost $ 46,386 $ 45,146 Deferred tax liabilities, net $ 46,386 $ 45,146 |
Discontinued Operations [Member] | ||
Schedule of tax effects of temporary differences | December 31, 2022 March 31, 2022 (Unaudited) Net operating loss carry forwards in the PRC $ 2,595,919 $ 2,595,919 Less: valuation allowance (2,595,919) (2,595,919) Total $ — $ — | The tax effects of temporary differences from discontinued operations that give rise to the Company’s deferred tax assets are as follows: March 31, 2022 March 31, 2021 Net operating loss carryforwards in the PRC $ 2,595,919 $ 3,802,496 Allowance for doubtful accounts — 20,190 Less: valuation allowance (2,595,919) (3,822,686) $ — $ — |
RELATED PARTY TRANSACTIONS AN_7
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | ||
Summary of amounts payable to stockholders, related parties and affiliates | December 31, March 31, 2022 2022 (Unaudited) Jun Wang (Stockholder of the Company)* $ 17,360 $ 18,886 Total due to a stockholder 17,360 18,886 Total due to a stockholder – discontinued operations (17,360) (18,886) Total due to a stockholder – continuing operations $ — $ — December 31, March 31, 2022 2022 (Unaudited) Loan payable to a related party (i) $ 114,425 $ 9,897 Others (ii) 2,812 1,785 Total due to related parties and affiliates $ 117,237 $ 11,682 (i) As of December 31, 2022 and March 31, 2022, the balances represented borrowings from Xi Wen, the CEO of the Company, of which, $114,425 and $9,897 are unsecured, interest free and due on demand, respectively. (ii) As of December 31, 2022 and March 31, 2022, the balances of $2,812 and $1,785 , respectively, represented payables to Jinkailong, the Company’s equity investee company, for operational purposes. December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 27,519 $ 446,372 Lease II (ii) 112,268 69,534 Total Operating lease right-of-use assets - related parties $ 139,787 $ 515,906 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ 91,732 $ 246,516 Lease II (ii) 71,826 84,265 Total Operating lease liabilities, current - related parties $ 163,558 $ 330,781 December 31, March 31, 2022 2022 (Unaudited) Lease I (i) $ — $ 211,953 Lease II (ii) 52,205 14,943 Total Operating lease liabilities, non-current - related parties $ 52,205 $ 226,896 (i) The Company entered into two office lease agreements with Hong Li, supervisor of Sichuan Senmiao, which were set to expire on January 1, 2020. On April 1, 2020, the two office leases were updated with a leasing term from April 1, 2020 to March 31, 2023. On March 1, 2021, the Company entered into an additional office lease which was set to expire on February 1, 2026. On April 1, 2021, the Company entered into another office lease which was set to expire on April 1, 2024. In October 2022, the Company terminated the leases signed on March 1, 2021 and April 1, 2021 as mentioned above. (ii) In November 2018, Hunan Ruixi entered into an office lease agreement with Hunan Dingchentai Investment Co., Ltd. (“Dingchentai”), a company where one of the Company’s independent directors serves as legal representative and general manager. The term of the lease agreement was from November 1, 2018 to October 31, 2023 and the rent was approximately $44,250 per year, payable on a quarterly basis. The original lease agreement with Dingchentai was terminated on July 1, 2019. The Company entered into another lease with Dingchentai on substantially similar terms on September 27, 2019, and a renewal lease contract was signed on June 2022 which extended the original lease to May 2025. | Due to a stockholder comprised of amounts payable to a stockholder named below and are unsecured, interest free and due on demand. March 31, March 31, 2022 2021 Jun Wang $ 18,886 $ 48,795 Total due to a stockholder 18,886 48,795 Total due to a stockholder – discontinued operations (18,886) (48,795) Total due to a stockholder – continuing operations $ — $ — 3) Due to related parties and affiliates March 31, March 31, 2022 2021 Loan payable to related parties (i) $ 9,897 $ 182,281 Others (ii) 1,785 170,546 Total due to related parties and affiliates 11,682 352,827 Total due to related parties and affiliates – discontinued operations — (269,918) Total due to related parties and affiliates – continuing operations $ 11,682 $ 82,909 (i) As of March 31, 2022 and March 31, 2021, the balances represented borrowings from a related party, of which, $ 9,897 and $ 78,708 are unsecured, interest free and due on demand, respectively, from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 103,574 represented borrowings from two related parties, which are unsecured, interest free and due on demand, respectively, from the Company’s discontinued operations. (ii) As of March 31, 2022 and March 31, 2021, the balances of $1,785 and $4,201 , respectively, represented payables to a related party for operational purposes from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 166,345 represented payables to four other related parties for operational purposes from the Company’s continuing operations. These balances are interest free and due on demand. |
LEASES (Tables)_2
LEASES (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
LEASES | ||
Schedule of operating and finance lease expenses | For the Three Months Ended For the Nine Months Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Classification (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost Automobile lease costs Cost of revenues $ 564,646 501,847 1,622,601 1,205,011 Lease expenses Selling, general and administrative 88,493 165,263 313,753 434,733 Finance lease cost Amortization of leased asset Cost of revenue 73,991 834,807 203,044 2,419,695 Amortization of leased asset General and administrative 62,255 76,187 196,890 522,605 Interest on lease liabilities Interest expenses on finance leases 7,602 97,919 15,903 313,766 Total lease expenses $ 796,987 1,676,023 2,352,191 4,895,810 Total Lease expenses – discontinued operations — 989,573 — 3,240,386 Total Lease expenses- continuing operations $ 796,987 686,450 2,352,191 1,655,424 | For the Years Ended Classification March 31, 2022 March 31, 2021 Operating lease cost Automobile lease costs Cost of revenues 1,749,959 42,306 Lease expenses Selling, general and administrative $ 585,719 $ 396,276 Finance lease cost Amortization of leased asset Cost of revenues 2,844,167 2,441,873 Amortization of leased asset General and administrative 974,422 1,656,336 Interest on lease liabilities Interest expenses on finance leases 333,210 733,202 Total lease expenses 6,487,477 5,269,993 Total lease expenses – discontinued operations 4,150,972 4,748,180 Total Lease expenses- continuing operations $ 2,336,505 $ 521,813 |
Schedule of minimum lease payments in future periods | *Operating lease Finance lease payments payments Total Twelve months ending December 31, 2023 $ 265,601 278,610 544,211 Twelve months ending December 31, 2024 95,690 269,675 365,365 Twelve months ending December 31, 2025 63,120 202,256 265,376 Twelve months ending December 31, 2026 14,982 — 14,982 Total lease payments 439,393 750,541 1,189,934 Less: discount (22,205) (58,657) (80,862) Present value of lease liabilities $ 417,188 691,884 1,109,072 *As of December 31, 2022, the outstanding balance of operating lease payments due to related parties was $215,763. | *Operating lease Finance lease payments payments Total Twelve months ending March 31, 2023 $ 386,942 $ 317,499 $ 704,441 Twelve months ending March 31, 2024 194,311 1,403 195,714 Twelve months ending March 31, 2025 64,268 — 64,268 Twelve months ending March 31, 2026 52,585 — 52,585 Total lease payments 698,106 318,902 1,017,008 Less: discount (42,342) (12,969) (55,311) Present value of lease liabilities $ 655,764 $ 305,933 $ 961,697 |
SEGMENT INFORMATION (Tables)_2
SEGMENT INFORMATION (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
SEGMENT INFORMATION | ||
Summary of each segment's revenue, loss from operations, loss before income taxes and net loss | For the Three Months ended December 31, 2022 Automobile Online ride- Transaction and hailing Related platform Services Services Unallocated Consolidated Revenues $ 930,625 $ 810,295 $ — $ 1,740,920 Interest income $ 467 $ 64 $ 13 $ 544 Depreciation and amortization $ 429,419 $ 12,128 $ 21,638 $ 463,185 Loss from operations $ (999,958) $ (69,672) $ (259,746) $ (1,329,376) Loss before income taxes $ (700,414) $ (56,667) $ (229,188) $ (986,269) Net loss $ (700,414) $ (56,667) $ (229,188) $ (986,269) Capital expenditure $ 1,238,504 $ — $ — $ 1,238,504 For the Nine Months ended December 31, 2022 Online ride- Automobile hailing Transaction and platform Related Services Services Unallocated Consolidated Revenues $ 3,353,400 $ 2,970,518 $ — $ 6,323,918 Interest income $ 1,292 $ 168 $ 57 $ 1,517 Depreciation and amortization $ 1,470,335 $ 47,594 $ 63,298 $ 1,581,227 Loss from operations $ (2,854,231) $ (262,097) $ (1,238,849) $ (4,355,177) Income (loss) before income taxes $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Net income (loss) $ (2,071,478) $ (253,477) $ 402,802 $ (1,922,153) Capital expenditure $ 1,240,404 $ — $ — $ 1,240,404 For the three months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 2,525,893 $ 1,017,156 $ — $ 3,543,049 $ 1,882,930 $ 1,660,119 Interest income $ 618 $ 72 $ 81 $ 771 $ 288 $ 483 Interest expense $ 16,451 $ 24 $ — $ 16,475 $ 16,475 $ — Depreciation and amortization $ 1,425,441 $ 8,058 $ 3,179 $ 1,436,678 $ 886,651 $ 550,027 Loss from operations $ (1,289,884) $ (629,177) $ (979,941) $ (2,899,002) $ (390,710) $ (2,508,292) Income (loss) before income taxes $ (1,069,871) $ (792,769) $ 1,735,058 $ (127,582) $ (418,355) $ 290,773 Net income (loss) $ (1,074,410) $ (792,769) $ 1,735,058 $ (132,121) $ (418,355) $ 286,234 Capital expenditure $ 1,321,226 $ — $ — $ 1,321,226 $ — $ 1,321,226 For the nine months ended December 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Continuing related service services Unallocated Total operations operations Revenues $ 6,631,579 $ 1,617,454 $ — $ 8,249,033 $ 5,096,441 $ 3,152,592 Interest income $ 1,198 $ 785 $ 389 $ 2,372 $ 514 $ 1,858 Interest expense $ 37,587 $ 6,536 $ — $ 44,123 $ 38,251 $ 5,872 Depreciation and amortization $ 4,269,755 $ 23,135 $ 9,580 $ 4,302,470 $ 2,857,864 $ 1,444,606 Loss from operations $ (3,606,376) $ (6,358,532) $ (1,813,645) $ (11,778,553) $ (2,182,402) $ (9,596,151) Income (loss) before income taxes $ (3,520,754) $ (6,649,325) $ 2,549,947 $ (7,620,132) $ (2,418,757) $ (5,201,375) Net income (loss) $ (3,525,304) $ (6,649,325) $ 2,549,947 $ (7,624,682) $ (2,418,757) $ (5,205,925) Capital expenditure $ 3,484,051 $ — $ — $ 3,484,051 $ — $ 3,484,051 | For the year ended March 31, 2022 Automobile Transaction and Online ride- related hailing platform Discontinued Continuing service services Unallocated Total operations operations Revenues $ 9,077,761 $ 2,665,457 $ — $ 11,743,218 $ 6,830,116 $ 4,913,102 Loss from operations $ (3,957,831) $ (6,962,113) $ (3,179,759) $ (14,099,703) $ (2,537,715) $ (11,561,988) loss before income taxes $ (4,682,007) $ (7,438,693) $ 3,771,912 $ (8,348,788) $ (2,747,209) $ (5,601,579) Net income (loss) $ (4,686,573) $ (7,438,693) $ 3,771,912 $ (8,353,354) $ (2,747,209) $ (5,606,145) For the year ended March 31, 2021 Online ride- Automobile hailing Transaction and platform Discontinued Discontinued Continuing Related services services P2P Business Unallocated Total operations operations Revenues $ 5,257,280 $ 903,254 $ 7,153 $ — $ 6,167,687 $ 3,978,847 $ 2,188,840 Loss from operations $ (6,126,494) $ (1,894,971) $ (81,285) $ (2,163,082) $ (10,265,832) $ (4,254,403) $ (6,011,429) loss before income taxes $ (7,009,570) $ (1,703,551) $ (61,976) $ (3,872,915) $ (12,648,012) $ (5,180,919) $ (7,467,093) Net income (loss) $ (7,024,200) $ (1,703,551) $ (61,976) $ (3,872,912) $ (12,662,639) $ (5,187,214) $ (7,475,425) |
PARENT-ONLY FINANCIALS (Tables)
PARENT-ONLY FINANCIALS (Tables) | 12 Months Ended |
Mar. 31, 2022 | |
PARENT-ONLY FINANCIALS | |
Schedule of condensed balance sheets | CONDENSED BALANCE SHEETS March 31, March 31, 2022 2021 ASSETS Current Assets Cash and cash equivalents $ 116,613 $ 1,609,778 Due from subsidiaries 12,587,739 8,170,057 Prepayments, other receivables and other assets, net 135,252 136,901 Total Current Assets 12,839,604 9,916,736 Other Assets Intangible assets 600,000 675,000 Total Assets $ 13,439,604 $ 10,591,736 LIABILITIES AND EQUITY Current Liabilities Accrued expenses and other liabilities $ — $ — Derivative liabilities 2,215,204 1,278,926 Total Current Liabilities 2,215,204 1,278,926 Other Liabilities Excess of investments in subsidiaries 2,310,937 3,456,097 Total Liabilities 4,526,141 4,735,023 Commitments and Contingencies Mezzanine Equity (redeemable) Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 shares issued and outstanding 820,799 — Stockholders’ Equity Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 and 4,978,073 shares issued outstanding 630 498 Additional paid-in capital 42,803,033 40,759,807 Accumulated deficit (34,601,545) (34,064,921) Accumulated other comprehensive loss (109,454) (838,671) Total Senmiao Technology Limited Stockholders’ Equity 8,092,664 5,856,713 Total Liabilities, Mezzanine Equity and Equity $ 13,439,604 10,591,736 |
Schedule of condensed statement of operations | CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Years Ended March 31, 2022 2021 General and administrative expenses $ (2,339,378) $ (2,070,303) Other Income, net 16,189 582 Change in fair value of derivative liabilities 6,951,482 (1,710,415) Issuance costs for issuing series A convertible preferred stock (821,892) — Equity of losses in subsidiaries (4,343,025) (6,579,922) Net loss (536,624) (10,360,058) Foreign currency translation adjustment 80,321 (331,193) Comprehensive loss attributable to stockholders $ (456,303) $ (10,691,251) |
Schedule of condensed statement of cash flows | CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended March 31, 2022 2021 Cash Flows from Operating Activities: Net loss $ (536,624) $ (10,360,058) Adjustments to reconcile net loss to net cash used in operating activities: Equity of loss of subsidiaries 4,343,025 6,579,922 Amortization of intangible asset 75,000 75,000 Issuance cost incurred for issuing series A convertible preferred stock 821,892 — Stock compensation expense 653,000 445,000 Change in fair value of derivative liabilities (6,951,482) 1,710,415 Prepayments, receivables and other assets 1,651 (44,526) Accrued expenses and other liabilities 175,008 (65,495) Net Cash Used in Operating Activities (1,418,530) (1,659,742) Cash Flows from Investing Activities: Working capital contribution for subsidiaries (5,749,950) (3,600,000) Net Cash Used in Investing Activities (5,749,950) (3,600,000) Cash Flows from Financing Activities: Net proceeds from issuance of common stock and warrants in a registered direct public offering 5,771,053 5,743,905 Net proceeds from issuance of common stock in an underwritten public offering — 5,261,297 Net proceeds from issuance of common stock upon warrants exercised 22,015 683,046 Net proceeds from exercise of underwriters’ over-allotment option — 837,000 Net proceeds from issuance of series A convertible preferred stock and warrants in a private placement offering 4,369,937 — Borrowings to subsidiaries (4,487,690) (5,658,318) Net Cash Provided by Financing Activities 5,675,315 6,866,930 Net increase (decrease) in cash and cash equivalents (1,493,165) 1,607,188 Cash and cash equivalents, beginning of year 1,609,778 2,590 Cash and cash equivalents, end of year $ 116,613 $ 1,609,778 Supplemental Cash Flow Information Cash paid for interest expense $ — $ — Cash paid for income tax $ — $ — Non-cash Transaction in Investing and Financing Activities Prepayments in exchange of intangible assets $ — $ — Allocation of fair value of derivative liabilities for issuance of common stock proceeds $ 7,932,341 $ 997,193 Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised $ 45,674 $ 1,771,213 Issuance of restricted stock units from accrued expenses and other liabilities $ — $ — |
ORGANIZATION AND PRINCIPAL AC_8
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 1,537,609 | $ 1,185,221 | $ 4,340,529 |
Accounts receivable, net, current portion | 204,763 | 418,022 | 502,031 |
Prepayments, other receivables and other assets, net | 1,362,817 | 2,713,208 | 2,660,083 |
Current assets - discontinued operations | 0 | 2,720,825 | |
Total current assets | 3,944,641 | 5,599,538 | 10,893,006 |
Property and equipment, net: | |||
Property and equipment, net | 3,530,196 | 5,658,773 | 3,251,331 |
Property and equipment, net - discontinued operations | 0 | 454,408 | |
Total property and equipment, net | 3,530,196 | 5,658,773 | 3,705,739 |
Other assets: | |||
Operating lease right-of-use assets, net, related parties | 139,787 | 515,906 | 580,367 |
Other assets - discontinued operations | 0 | 4,674,403 | |
Total other assets | 8,063,756 | 8,619,806 | 7,704,534 |
Total assets | 15,538,593 | 19,878,117 | 22,303,279 |
Current liabilities: | |||
Accrued expenses and other liabilities | 2,715,209 | 2,444,367 | 2,873,227 |
Due to related parties and affiliates | 117,237 | 11,682 | 82,909 |
Operating lease liabilities - related parties | 163,558 | 330,781 | 243,726 |
Current liabilities - discontinued operations | 485,736 | 528,426 | 11,677,266 |
Total current liabilities | 4,765,180 | 6,165,811 | 16,778,944 |
Other Liabilities | |||
Operating lease liabilities, noncurrent - related parties | 52,205 | 226,896 | 341,549 |
Other liabilities - discontinued operations | 0 | 2,250,393 | |
Total other liabilities | 481,659 | 322,568 | 2,951,765 |
Total liabilities | $ 5,246,839 | 6,488,379 | 19,730,709 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets: | |||
Cash and cash equivalents | 27,229 | ||
Prepayments, other receivables and other assets, net | 135 | ||
Other receivable - intercompany | 1,718,343 | ||
Current assets - discontinued operations | 2,995,558 | ||
Total current assets | 4,741,265 | ||
Property and equipment, net: | |||
Property and equipment, net - discontinued operations | 454,228 | ||
Total property and equipment, net | 454,228 | ||
Other assets: | |||
Operating lease right-of-use assets, net, related parties | 9,896 | ||
Other assets - discontinued operations | 4,674,403 | ||
Total other assets | 4,684,299 | ||
Total assets | 9,879,792 | ||
Current liabilities: | |||
Accrued expenses and other liabilities | 581,126 | ||
Other payable - intercompany | 2,715,847 | ||
Due to related parties and affiliates | 82,908 | ||
Operating lease liabilities - related parties | 4,989 | ||
Current liabilities - discontinued operations | 15,896,580 | ||
Total current liabilities | 19,281,450 | ||
Other Liabilities | |||
Operating lease liabilities, noncurrent - related parties | 3,850 | ||
Other liabilities - discontinued operations | 2,250,393 | ||
Total other liabilities | 2,254,243 | ||
Total liabilities | 21,535,693 | ||
Other receivable - intercompany, included in current assets - discontinued operations | 0 | 274,731 | |
Other payable - intercompany, included in current liabilities- discontinued operations | $ 0 | $ 4,203,454 |
ORGANIZATION AND PRINCIPAL AC_9
ORGANIZATION AND PRINCIPAL ACTIVITIES - Consolidated financial statements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Loss from operations from continuing operations | $ (986,269) | $ 286,234 | $ (1,922,153) | $ (5,205,925) | $ (5,606,145) | $ (7,475,425) |
Loss from operations from discontinued operations | 0 | (2,418,757) | 8,227,892 | (5,187,214) | ||
Net loss attributable to stockholders | $ (971,341) | 155,459 | $ (1,721,978) | (5,673,230) | (536,624) | (10,360,058) |
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Net revenue from continuing operations | 152 | 23,380 | 32,817 | |||
Net revenue from discontinued operations | 1,882,930 | 5,096,441 | 6,830,116 | 3,978,847 | ||
Loss from operations from continuing operations | (57,616) | (107,802) | (179,068) | (532,455) | ||
Loss from operations from discontinued operations | (390,710) | (2,182,402) | (2,537,715) | (4,254,403) | ||
Net loss from continuing operations attributable to stockholders | (57,141) | (105,760) | (175,283) | (530,983) | ||
Net loss from discontinued operations attributable to stockholders | (309,583) | (1,789,880) | (2,032,934) | (3,722,648) | ||
Net loss attributable to stockholders | $ (366,724) | $ (1,895,640) | $ (2,208,218) | $ (4,253,630) |
ORGANIZATION AND PRINCIPAL A_10
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional information (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 23, 2022 USD ($) | Nov. 09, 2021 shares | Oct. 22, 2021 USD ($) $ / shares | Oct. 22, 2021 D $ / shares | Oct. 22, 2021 item $ / shares | Apr. 21, 2019 shares | Apr. 20, 2019 shares | Aug. 31, 2021 | Feb. 29, 2020 | Aug. 31, 2018 | Dec. 31, 2022 USD ($) segment subsidiary $ / shares | Mar. 31, 2022 USD ($) subsidiary segment $ / shares | Dec. 31, 2022 CNY (¥) subsidiary | Mar. 31, 2022 CNY (¥) subsidiary | Apr. 30, 2021 USD ($) | Mar. 31, 2021 $ / shares | Feb. 05, 2021 USD ($) | Feb. 05, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Sep. 11, 2020 USD ($) | Sep. 11, 2020 CNY (¥) | |
Incorporation, State Country Name | Nevada | Nevada | ||||||||||||||||||||
Entity Incorporation, Date of Incorporation | Jun. 08, 2017 | Jun. 08, 2017 | ||||||||||||||||||||
Number of Operating Segments | segment | 2 | 2 | ||||||||||||||||||||
Par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||
Shares issued (in shares) | shares | 178,136 | 1,781,360 | ||||||||||||||||||||
Sichuan Senmiao's [ Member] | ||||||||||||||||||||||
Total purchase price | $ 0 | |||||||||||||||||||||
Senmiao Consulting [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 94.50% | |||||||||||||||||||||
Corenel [Member] | ||||||||||||||||||||||
Registered capital | $ 1,600,000 | ¥ 10,000,000 | ||||||||||||||||||||
Chengdu Xichuang Technology Service Co., Ltd. [Member] | ||||||||||||||||||||||
Registered capital | $ 32,000 | ¥ 200,000 | ||||||||||||||||||||
Voting Agreement with Jinkailongs other shareholders [Member] | ||||||||||||||||||||||
Business Agreement Term | 18 years | 20 years | ||||||||||||||||||||
Voting Agreement with Jinkailongs other shareholders [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 65% | 35% | 35% | 35% | 35% | |||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | ||||||||||||||||||||||
Investment in subsidiary | $ 5,700,000 | ¥ 36,840,000 | ||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 27.74% | 27.74% | ||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Sichuan Senmiao's [ Member] | ||||||||||||||||||||||
Investment in subsidiary | ¥ | ¥ 3,160,000 | |||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Sichuan Senmiao's [ Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 51% | 51% | ||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Senmiao Consulting [Member] | ||||||||||||||||||||||
Investment in subsidiary | $ 5,180,000 | ¥ 36,840,000 | ||||||||||||||||||||
Increased In Registered Capital | $ 7,140,000 | ¥ 50,800,000 | ||||||||||||||||||||
Capital contribution | $ 5,760,000 | ¥ 39,760,000 | ||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Senmiao Consulting [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 27.74% | 27.74% | ||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Sichuan Senmiao's [ Member] | ||||||||||||||||||||||
Investment in subsidiary | $ 440,000 | |||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Share Swap Agreement [Member] | Senmiao Consulting [Member] | Common Stock [Member] | ||||||||||||||||||||||
Total purchase price | $ 3,500,000 | |||||||||||||||||||||
Par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||
Number of trading days reported | 10 | 10 | ||||||||||||||||||||
Shares issued (in shares) | shares | 533,167 | |||||||||||||||||||||
Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | Share Swap Agreement [Member] | Senmiao Consulting [Member] | Common Stock [Member] | Pre Reverse Split [Member] | ||||||||||||||||||||||
Shares issued (in shares) | shares | 5,331,667 | |||||||||||||||||||||
Jinkailong [Member] | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 35% | 35% | 35% | 35% | ||||||||||||||||||
Chengdu Corenel Technology Co., Ltd. [Member] | Jiekai [Member] | ||||||||||||||||||||||
Registered capital | $ 80,000 | ¥ 500,000 | ||||||||||||||||||||
Chengdu Corenel Technology Co., Ltd. [Member] | Jiekai [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 51% | 51% | ||||||||||||||||||||
Sichuan Senmiao's [ Member] | ||||||||||||||||||||||
Total purchase price | $ 0 | |||||||||||||||||||||
Sichuan Senmiao's [ Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 94.50% | |||||||||||||||||||||
Sichuan Senmiao's [ Member] | Hunan Xixingtianxia Technology Co., Ltd ("XXTX") [Member] | ||||||||||||||||||||||
Capital contribution | $ 5,810,000 | ¥ 36,860,000 | ||||||||||||||||||||
Number of wholly owned subsidiaries | subsidiary | 10 | 8 | 10 | 8 | ||||||||||||||||||
Number of wholly owned subsidiaries that has operations | subsidiary | 1 | 1 | 1 | 1 | ||||||||||||||||||
Hunan Ruixi [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 70% | 70% | ||||||||||||||||||||
Hunan Ruixi [Member] | Equity Transfer Agreement with Another Shareholder of Xichuang [Member] | ||||||||||||||||||||||
Percent of shares transferred as free | 30% | |||||||||||||||||||||
Senmiao HK [Member] | ||||||||||||||||||||||
Registered capital | $ 10,000 | |||||||||||||||||||||
Senmiao HK [Member] | Nonconsolidated investees, other | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage1 | 99.99% |
GOING CONCERN (Details)_2
GOING CONCERN (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Feb. 22, 2021 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) | Sep. 23, 2022 USD ($) item | Dec. 24, 2020 item | |
Going Concern [Line Items] | |||||||||
Net loss from continuing operations | $ 986,269 | $ (286,234) | $ 1,922,153 | $ 5,205,925 | $ 5,606,145 | $ 7,475,425 | |||
Accumulated deficit | 36,323,523 | 36,323,523 | 34,601,545 | 34,064,921 | |||||
Working capital | 800,000 | 800,000 | 600,000 | ||||||
Net operating cash flows from continuing operations | 249,287 | (6,875,694) | (9,036,114) | (3,196,138) | |||||
Net cash used in operating activities from discontinued operations | 0 | $ 416,522 | (123,167) | $ (739,929) | |||||
Purchase commitments | $ 3,200,000 | $ 2,400,000 | $ 2,400,000 | $ 1,700,000 | $ 1,500,000 | ||||
Total number of automobiles | item | 200 | 300 | 300 | 200 | 100 | ||||
Total amount of automobiles | $ 4,700,000 | $ 4,700,000 | $ 3,400,000 | ||||||
Number of automobiles is required to purchase in cash | item | 100 | 100 | 100 | ||||||
Amount of automobiles is required to purchase in cash | $ 1,600,000 | 1,600,000 | $ 1,600,000 | $ 1,700,000 | |||||
Amount of automobiles is required to purchase commitment | $ 1,600,000 | 1,600,000 | 1,600,000 | 1,700,000 | |||||
Maximum contingent liabilities | 46,641 | 46,641 | 800,000 | ||||||
Jinkailong [Member] | |||||||||
Going Concern [Line Items] | |||||||||
Total number of automobiles | item | 75 | ||||||||
Maximum contingent liabilities | $ 4,800,000 | $ 4,800,000 | $ 6,300,000 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign currency translation (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Balance sheet items, except for equity accounts | 6.8972 | 6.3400 | 6.5527 | |
Items in the statements of operations and comprehensive loss, and statements of cash flows | 6.8547 | 6.4408 | 6.4178 | 6.7960 |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value on recurring basis (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | $ 572,021 | $ 2,215,204 | $ 1,278,926 | $ 342,530 |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | 572,021 | 2,215,204 | 1,278,926 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | 0 | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | 0 | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities | $ 572,021 | $ 2,215,204 | $ 1,278,926 |
SUMMARY OF SIGNIFICANT ACCOU_18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of assets and liabilities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Class of Warrant or Right [Line Items] | |||
Beginning balance | $ 2,215,204 | $ 1,278,926 | $ 342,530 |
Derivative liabilities recognized at grant date | 7,933,435 | 997,193 | |
Change in fair value of derivative liabilities | (1,641,650) | (6,951,482) | 1,710,415 |
Fair value of warrants exercised | (45,675) | (1,769,841) | |
Warrant forfeited due to expiration | (1,371) | ||
Ending balance | 572,021 | 2,215,204 | 1,278,926 |
SeriesWarrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 1,913 | 80,268 | 315,923 |
Change in fair value of derivative liabilities | (1,878) | (32,680) | 1,234,630 |
Fair value of warrants exercised | (45,675) | (1,470,285) | |
Ending balance | 35 | 1,913 | 80,268 |
Series B Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 1,371 | ||
Warrant forfeited due to expiration | (1,371) | ||
Private Placement Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 10,525 | 163,572 | 25,236 |
Change in fair value of derivative liabilities | (10,342) | (153,047) | 138,336 |
Ending balance | 183 | 10,525 | 163,572 |
August 2020 [Member] | Underwritten Public Offering Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 44,581 | 397,525 | |
Derivative liabilities recognized at grant date | 241,919 | ||
Change in fair value of derivative liabilities | (34,526) | (352,944) | 455,162 |
Fair value of warrants exercised | (299,556) | ||
Ending balance | 10,055 | 44,581 | 397,525 |
February 2021 [Member] | Registered Direct Offering Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 65,543 | 637,561 | |
Derivative liabilities recognized at grant date | 755,274 | ||
Change in fair value of derivative liabilities | (51,581) | (572,018) | (117,713) |
Ending balance | 13,962 | 65,543 | $ 637,561 |
May 2021 [Member] | Registered Direct Offering Investors Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 778,488 | ||
Derivative liabilities recognized at grant date | 3,313,864 | ||
Change in fair value of derivative liabilities | (589,804) | (2,535,376) | |
Ending balance | 188,684 | 778,488 | |
May 2021 [Member] | Registered Direct Offering Placement Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 58,387 | ||
Derivative liabilities recognized at grant date | 248,541 | ||
Change in fair value of derivative liabilities | (44,236) | (190,154) | |
Ending balance | 14,151 | 58,387 | |
November 2021 [Member] | Private Placement Investors Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 1,165,465 | ||
Derivative liabilities recognized at grant date | 4,060,857 | ||
Change in fair value of derivative liabilities | (843,900) | (2,895,392) | |
Ending balance | 320,032 | 1,165,465 | |
November 2021 [Member] | Private Placement Placement Warrants [Member] | |||
Class of Warrant or Right [Line Items] | |||
Beginning balance | 90,302 | ||
Derivative liabilities recognized at grant date | 310,173 | ||
Change in fair value of derivative liabilities | (65,383) | (219,871) | |
Ending balance | $ 24,919 | $ 90,302 |
SUMMARY OF SIGNIFICANT ACCOU_19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair value of warrants (Details) | Dec. 31, 2022 Y $ / shares shares | Mar. 31, 2022 $ / shares Y shares | Nov. 10, 2021 $ / shares Y shares | May 13, 2021 $ / shares Y shares | Mar. 31, 2021 Y $ / shares shares | Feb. 10, 2021 Y $ / shares shares | Aug. 13, 2020 shares | Aug. 04, 2020 $ / shares Y shares | Jun. 21, 2020 shares | Jul. 21, 2019 shares | Jun. 21, 2019 shares | Jun. 20, 2019 Y $ / shares shares |
SeriesWarrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 133,602 | 133,603 | ||||||||||
SeriesWarrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 2,590 | 2,590 | 6,993 | 133,602 | ||||||||
Series B Warrants [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 111,632 | 111,632 | 111,632 | |||||||||
Series B Warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 111,632 | |||||||||||
Placement agent warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 14,251 | 14,251 | 14,251 | 14,251 | ||||||||
Placement agent warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 38,044 | 38,044 | 38,044 | 38,044 | ||||||||
Placement agent warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 41,490 | 41,490 | 41,490 | |||||||||
Placement agent warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 55,148 | 55,148 | 55,148 | |||||||||
Placement agent warrants [Member] | Maximum [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 14,251 | |||||||||||
Underwriter Warrant [Member] | August 4, 2020 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 31,808 | 31,808 | 31,808 | 56,800 | 56,800 | |||||||
ROFR Warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 15,218 | 15,218 | 15,218 | 15,218 | ||||||||
Investor Warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 553,192 | 553,192 | 553,192 | |||||||||
Investor Warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 5,310,763 | 5,335,763 | 5,335,763 | |||||||||
Exercise price [Member] | SeriesWarrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 5 | 5 | 5 | 37.20 | ||||||||
Exercise price [Member] | Series B Warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 37.20 | |||||||||||
Exercise price [Member] | Placement agent warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 5 | 5 | 5 | 33.80 | ||||||||
Exercise price [Member] | Placement agent warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 13.80 | 13.80 | 13.80 | 13.80 | ||||||||
Exercise price [Member] | Placement agent warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 10.50 | 10.50 | 10.50 | |||||||||
Exercise price [Member] | Placement agent warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 6.80 | 6.80 | 6.80 | |||||||||
Exercise price [Member] | Underwriter Warrant [Member] | August 4, 2020 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 6.30 | 6.30 | 6.30 | 6.30 | ||||||||
Exercise price [Member] | ROFR Warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 17.30 | 17.30 | 17.30 | 17.30 | ||||||||
Exercise price [Member] | Investor Warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 10.50 | 10.50 | 10.50 | |||||||||
Exercise price [Member] | Investor Warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 1.13 | 1.13 | 1.13 | |||||||||
Stock price [Member] | SeriesWarrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 14 | 28 | ||||||||
Stock price [Member] | Series B Warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 28 | |||||||||||
Stock price [Member] | Placement agent warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 14 | 28 | ||||||||
Stock price [Member] | Placement agent warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 14 | 16.30 | ||||||||
Stock price [Member] | Placement agent warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 7.20 | |||||||||
Stock price [Member] | Placement agent warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 6.70 | |||||||||
Stock price [Member] | Underwriter Warrant [Member] | August 4, 2020 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 14 | 5.10 | ||||||||
Stock price [Member] | ROFR Warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 14 | 16.30 | ||||||||
Stock price [Member] | Investor Warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 7.20 | |||||||||
Stock price [Member] | Investor Warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 0.09 | 2.30 | 6.70 | |||||||||
Expected term [Member] | SeriesWarrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 0.47 | 1.22 | 2.22 | 4 | ||||||||
Expected term [Member] | Series B Warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 1 | |||||||||||
Expected term [Member] | Placement agent warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 0.47 | 1.22 | 2.22 | 4 | ||||||||
Expected term [Member] | Placement agent warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 3.12 | 3.87 | 4.87 | 5 | ||||||||
Expected term [Member] | Placement agent warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 3.37 | 4.12 | 5 | |||||||||
Expected term [Member] | Placement agent warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 3.86 | 4.62 | 5 | |||||||||
Expected term [Member] | Underwriter Warrant [Member] | August 4, 2020 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 2.59 | 3.35 | 4.35 | 5 | ||||||||
Expected term [Member] | ROFR Warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 3.12 | 3.87 | 4.87 | 5 | ||||||||
Expected term [Member] | Investor Warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 3.37 | 4.12 | 5 | |||||||||
Expected term [Member] | Investor Warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | Y | 3.86 | 4.62 | 5 | |||||||||
Risk free interest rate [Member] | SeriesWarrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 2.22 | 1.77 | 0.20 | 1.77 | ||||||||
Risk free interest rate [Member] | Series B Warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 1.91 | |||||||||||
Risk free interest rate [Member] | Placement agent warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 2.22 | 1.77 | 0.20 | 1.77 | ||||||||
Risk free interest rate [Member] | Placement agent warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.21 | 2.44 | 0.88 | 0.46 | ||||||||
Risk free interest rate [Member] | Placement agent warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.18 | 2.43 | 0.84 | |||||||||
Risk free interest rate [Member] | Placement agent warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.12 | 2.43 | 1.23 | |||||||||
Risk free interest rate [Member] | Underwriter Warrant [Member] | August 4, 2020 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.35 | 2.44 | 0.73 | 0.19 | ||||||||
Risk free interest rate [Member] | ROFR Warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.21 | 2.44 | 0.88 | 0.46 | ||||||||
Risk free interest rate [Member] | Investor Warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.18 | 2.43 | 0.84 | |||||||||
Risk free interest rate [Member] | Investor Warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.12 | 2.43 | 1.23 | |||||||||
Volatility [Member] | SeriesWarrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 132 | 86 | ||||||||
Volatility [Member] | Series B Warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 91 | |||||||||||
Volatility [Member] | Placement agent warrants [Member] | June 20, 2019 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 132 | 86 | ||||||||
Volatility [Member] | Placement agent warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 132 | 132 | ||||||||
Volatility [Member] | Placement agent warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 131 | |||||||||
Volatility [Member] | Placement agent warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 126 | |||||||||
Volatility [Member] | Underwriter Warrant [Member] | August 4, 2020 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 132 | 129 | ||||||||
Volatility [Member] | ROFR Warrants [Member] | February 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 132 | 132 | ||||||||
Volatility [Member] | Investor Warrants [Member] | May 13, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 131 | |||||||||
Volatility [Member] | Investor Warrants [Member] | November 10, 2021 [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Warrants and Rights Outstanding, Measurement Input | 122 | 123 | 126 |
SUMMARY OF SIGNIFICANT ACCOU_20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finance lease receivables, net (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Allowance for doubtful on finance lease receivables | $ 0 | $ 0 | $ 0 |
Capital Leases, Net Investment in Sales Type Leases [Abstract] | |||
Minimum lease payments receivable | 288,026 | 511,030 | 1,343,662 |
Less: Unearned interest | 67,484 | 103,786 | 328,585 |
Financing lease receivables, net | 220,542 | 407,244 | 1,015,077 |
Finance lease receivables, net, current portion | 170,337 | 314,264 | 541,605 |
Finance lease receivables, net, noncurrent portion | 50,205 | 92,980 | $ 473,472 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |||
Twelve months ending March 31, 2023 | 345,425 | ||
Twelve months ending March 31, 2024 | 150,633 | ||
Twelve months ending March 31, 2025 | 14,972 | ||
Total | $ 288,026 | $ 511,030 |
SUMMARY OF SIGNIFICANT ACCOU_21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment, net (Details) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2022 | |
Minimum [Member] | Computer equipment [Member] | ||
Useful life | 2 years | 2 years |
Minimum [Member] | Office equipment [Member] | ||
Useful life | 3 years | |
Minimum [Member] | Automobiles [Member] | ||
Useful life | 3 years | 3 years |
Maximum [Member] | Computer equipment [Member] | ||
Useful life | 5 years | 5 years |
Maximum [Member] | Office equipment [Member] | ||
Useful life | 5 years | |
Maximum [Member] | Automobiles [Member] | ||
Useful life | 5 years | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible assets, net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Software [Member] | Minimum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | ||||
Software [Member] | Maximum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | ||||
Online Ride-Hailing Platform Services [Member] | Minimum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 2 years | 2 years | ||||
Online Ride-Hailing Platform Services [Member] | Maximum [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregated information of revenues (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues by business lines | ||||||
Total Revenues from Operations | $ 1,710,172 | $ 1,660,119 | $ 6,000,597 | $ 3,152,592 | $ 4,913,102 | $ 2,188,840 |
Total revenues | 1,740,920 | 3,543,049 | 6,323,918 | 8,249,033 | 11,743,218 | 6,167,687 |
Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 930,625 | 642,963 | 3,353,400 | 1,535,138 | 2,247,645 | 1,285,586 |
Total Revenues from Operations | 1,740,920 | 1,660,119 | 6,323,918 | 3,152,592 | 4,913,102 | 2,188,840 |
Total revenues | 1,660,119 | 3,152,592 | 4,913,102 | 2,188,840 | ||
Continuing Operations [Member] | Online Ride-Hailing Platform Services [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Online Lending Services | 810,295 | 1,017,156 | 2,970,518 | 1,617,454 | 2,665,457 | 903,254 |
Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 1,882,930 | 5,096,441 | 6,830,116 | 3,971,694 | ||
Total revenues from Online Lending Services | 7,153 | |||||
Total Revenues from Operations | 6,830,116 | 3,978,847 | ||||
Total revenues | 1,882,930 | 5,096,441 | 6,830,116 | 3,978,847 | ||
Operating lease revenues from automobile rentals [Members] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 781,210 | 510,636 | 2,570,959 | 1,165,625 | 1,722,480 | 224,590 |
Operating lease revenues from automobile rentals [Members] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 1,436,886 | 4,274,900 | 5,452,483 | 3,207,781 | ||
Service fees from NEVs leasing [Members] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 49,002 | 43,015 | 291,675 | 87,112 | 126,227 | |
Service fees from NEVs leasing [Members] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 242 | 58,185 | 232,295 | |||
Commissions from online ride-hailing platforms [Member] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 274,643 | 274,643 | 399,600 | 32,797 | ||
Financing revenues [Members] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 8,606 | 22,072 | 30,965 | 86,454 | 101,828 | 184,115 |
Financing revenues [Members] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 3,677 | 15,284 | 15,855 | 43,744 | ||
Service fees from management and guarantee services [Members] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 8,915 | 11,616 | 31,659 | 54,987 | 73,554 | 79,565 |
Service fees from management and guarantee services [Members] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 38,221 | 96,019 | 217,838 | 206,248 | ||
Service fees from automobile purchase services [Member] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 21,192 | 1,468 | 188,822 | |||
Revenues from sales of automobiles [Members] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 225,900 | 26,019 | 487,947 | |||
Facilitation fees from automobile transactions [Member] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | 1,665 | |||||
Other service fees [Member] | Continuing Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | $ 82,892 | 55,624 | $ 181,050 | 140,960 | 196,069 | 120,547 |
Other service fees [Member] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Automobile Transaction and Related Services | $ 129,261 | $ 377,410 | $ 512,045 | 479,459 | ||
Transaction fees [Member] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Online Lending Services | 3,488 | |||||
Service fees [Member] | Discontinued Operations [Member] | ||||||
Revenues by business lines | ||||||
Total revenues from Online Lending Services | $ 3,665 |
SUMMARY OF SIGNIFICANT ACCOU_24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 10, 2021 USD ($) $ / shares shares | Nov. 07, 2021 USD ($) $ / shares shares | May 13, 2021 USD ($) $ / shares shares | Feb. 10, 2021 $ / shares shares | Aug. 13, 2020 shares | Aug. 06, 2020 $ / shares shares | Aug. 04, 2020 shares | Feb. 08, 2020 $ / shares shares | Jul. 21, 2019 USD ($) shares | Jun. 21, 2019 shares | Apr. 21, 2019 shares | Apr. 20, 2019 shares | Jun. 30, 2019 USD ($) | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) segment shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) segment shares | Mar. 31, 2021 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Mar. 31, 2022 CNY (¥) shares | Jun. 21, 2020 shares | Mar. 31, 2020 USD ($) | |
Number of new shares offered during period | 553,192 | 178,137 | |||||||||||||||||||||
Shares issued (in shares) | 178,136 | 1,781,360 | |||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 6,000,000 | ||||||||||||||||||||||
Number of operating segment | segment | 2 | 2 | |||||||||||||||||||||
Number of reportable segment | segment | 2 | 2 | 2 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | $ 112,905 | $ 78,167 | $ 379,689 | ||||||||||||||||||||
Impairments of inventories | $ | $ 3,085 | $ 0 | 60,398 | 0 | |||||||||||||||||||
Contract receivable for automobile transaction and related services | $ | $ 26,573 | 26,573 | 136,418 | ||||||||||||||||||||
Contract receivable for automobile transaction and related services, expected to be due within twelve months | $ | 24,558 | 24,558 | 91,448 | ||||||||||||||||||||
Contract receivable for automobile transaction and related services, expected to be due in second year | $ | $ 2,015 | $ 2,015 | $ 44,971 | ||||||||||||||||||||
Percentage of customers to which the Company provides them with management and guarantee services | 95% | 95% | |||||||||||||||||||||
Company's pricing interest rate per annum | 6% | 6% | |||||||||||||||||||||
Percentage of Income Taxes Benefit | 50% | 50% | 50% | 50% | 50% | ||||||||||||||||||
Percentage of remaining economic life of underlying asset | 75% | 75% | |||||||||||||||||||||
Percentage of economic life of underlying asset | 25% | 25% | |||||||||||||||||||||
Percentage of equal or exceeds lease payment | 90% | 90% | |||||||||||||||||||||
Impairment loss on goodwill | $ | $ 0 | $ 0 | $ 0 | 139,580 | $ 139,930 | 0 | |||||||||||||||||
Cash deposits | $ | $ 91,000 | $ 117,000 | $ 2,073,000 | ||||||||||||||||||||
Foreign Currency Exchange Rate, Remeasurement | 6.90 | 6.90 | 6.34 | 6.55 | 6.90 | 6.34 | |||||||||||||||||
Series A Convertible Preferred Stock [Member] | |||||||||||||||||||||||
Number of dilutive securities convertible into common stock | 735,295 | ||||||||||||||||||||||
Continuing Operations [Member] | |||||||||||||||||||||||
Allowance for doubtful accounts | $ | $ 0 | $ 0 | $ 112,905 | $ 1,739 | |||||||||||||||||||
Impairment of property and equipment | $ | 0 | 0 | |||||||||||||||||||||
Impairment loss on finance lease ROU assets | $ | 3,044 | 10,953 | |||||||||||||||||||||
Write off accounts receivables | $ | $ 107,820 | 45,465 | 44,227 | 89,921 | |||||||||||||||||||
Discontinued Operations [Member] | |||||||||||||||||||||||
Allowance for doubtful accounts | $ | 76,428 | ||||||||||||||||||||||
Impairment of property and equipment | $ | 32,479 | 10,459 | |||||||||||||||||||||
Impairment loss on finance lease ROU assets | $ | 0 | 109,427 | |||||||||||||||||||||
Write off accounts receivables | $ | $ 11,952 | $ 16,273 | 395,463 | ||||||||||||||||||||
Pre Reverse Split [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 5,531,916 | 1,781,361 | |||||||||||||||||||||
Pre Reverse Split [Member] | Series A Convertible Preferred Stock [Member] | |||||||||||||||||||||||
Number of dilutive securities convertible into common stock | 7,352,941 | ||||||||||||||||||||||
Over-Allotment option | |||||||||||||||||||||||
Shares issued (in shares) | 180,000 | 180,000 | |||||||||||||||||||||
Over-Allotment option | Pre Reverse Split [Member] | |||||||||||||||||||||||
Shares issued (in shares) | 1,800,000 | 1,800,000 | |||||||||||||||||||||
Private Placement [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 56,800 | ||||||||||||||||||||||
Offering price | $ / shares | $ 6.8 | ||||||||||||||||||||||
Shares issued (in shares) | 55,148 | ||||||||||||||||||||||
Exercisable term | 5 years | ||||||||||||||||||||||
Exercise price of warrants (as a percent) | 125% | ||||||||||||||||||||||
Cash commission | $ | $ 375,000 | ||||||||||||||||||||||
Private Placement [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 568,000 | ||||||||||||||||||||||
Offering price | $ / shares | $ 0.68 | ||||||||||||||||||||||
Shares issued (in shares) | 551,471 | ||||||||||||||||||||||
Offering Price [Member] | |||||||||||||||||||||||
Shares issued | 1,200,000 | ||||||||||||||||||||||
Offering price | $ / shares | $ 5 | ||||||||||||||||||||||
Shares issued (in shares) | 180,000 | ||||||||||||||||||||||
Offering Price [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Shares issued | 12,000,000 | ||||||||||||||||||||||
Offering price | $ / shares | $ 0.50 | ||||||||||||||||||||||
Shares issued (in shares) | 1,800,000 | ||||||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 15,218 | ||||||||||||||||||||||
Offering price | $ / shares | $ 17.25 | ||||||||||||||||||||||
Exercisable term | 5 years | ||||||||||||||||||||||
Warrant [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 152,174 | ||||||||||||||||||||||
Offering price | $ / shares | $ 1.725 | ||||||||||||||||||||||
Placement Agency Agreement [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 507,247 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 38,044 | ||||||||||||||||||||||
Offering price | $ / shares | $ 13.8 | $ 13.8 | |||||||||||||||||||||
Exercisable term | 5 years | ||||||||||||||||||||||
Exercise price of warrants (as a percent) | 7% | ||||||||||||||||||||||
Placement Agency Agreement [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 5,072,465 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 380,435 | ||||||||||||||||||||||
Offering price | $ / shares | $ 1.38 | $ 1.38 | |||||||||||||||||||||
Automobiles [Member] | Minimum [Member] | |||||||||||||||||||||||
Useful life | 3 years | 3 years | |||||||||||||||||||||
Automobiles [Member] | Maximum [Member] | |||||||||||||||||||||||
Useful life | 5 years | 5 years | |||||||||||||||||||||
Revenues from sales of automobiles [Members] | Minimum [Member] | |||||||||||||||||||||||
Accounts receivable collection period | 36 months | ||||||||||||||||||||||
Revenues from sales of automobiles [Members] | Maximum [Member] | |||||||||||||||||||||||
Accounts receivable collection period | 48 months | ||||||||||||||||||||||
Service fees from automobile purchase services [Member] | Minimum [Member] | |||||||||||||||||||||||
Accounts receivable collection period | 36 months | 36 months | |||||||||||||||||||||
Service fees from automobile purchase services [Member] | Maximum [Member] | |||||||||||||||||||||||
Accounts receivable collection period | 48 months | 48 months | |||||||||||||||||||||
CHINA [Members] | |||||||||||||||||||||||
Deposits, Savings Deposits | $ | 1,361,000 | $ 1,361,000 | $ 874,000 | 2,339,000 | |||||||||||||||||||
Maximum Insurance Claim Deposit | 70,000 | 70,000 | 80,000 | ¥ 500,000 | ¥ 500,000 | ||||||||||||||||||
UNITED STATES [Members] | |||||||||||||||||||||||
Deposits, Savings Deposits | $ | $ 91,000 | $ 91,000 | 117,000 | $ 1,560,000 | |||||||||||||||||||
Cash, FDIC Insured Amount | $ | $ 250,000 | ||||||||||||||||||||||
May 2021 [Member] | |||||||||||||||||||||||
Offering price | $ / shares | $ 11.75 | ||||||||||||||||||||||
Exercisable term | 5 years | ||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 5,800,000 | ||||||||||||||||||||||
Cash commission | $ | $ 487,500 | ||||||||||||||||||||||
May 2021 [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Offering price | $ / shares | $ 1.175 | ||||||||||||||||||||||
November 10, 2021 [Member] | |||||||||||||||||||||||
Offering price | $ / shares | $ 1,000 | ||||||||||||||||||||||
Exercisable term | 5 years | ||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 4,400,000 | ||||||||||||||||||||||
Cash commission | $ | $ 375,000 | ||||||||||||||||||||||
November 10, 2021 [Member] | Private Placement [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 5,000 | ||||||||||||||||||||||
Underwriter Warrant [Member] | August 4, 2020 [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 56,800 | 56,800 | 31,808 | 31,808 | 31,808 | 31,808 | 31,808 | 31,808 | |||||||||||||||
Underwriter Warrant [Member] | August 4, 2020 [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 568,000 | ||||||||||||||||||||||
Underwriter Warrant [Member] | August 4, 2020 [Member] | Private Placement [Member] | |||||||||||||||||||||||
Exercise price of warrants (as a percent) | 125% | ||||||||||||||||||||||
Investor Warrants [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 735,295 | ||||||||||||||||||||||
Investor Warrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 7,352,941 | ||||||||||||||||||||||
Investor Warrants [Member] | May 2021 [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 553,192 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 553,192 | 553,192 | |||||||||||||||||||||
Offering price | $ / shares | $ 10.5 | ||||||||||||||||||||||
Investor Warrants [Member] | May 2021 [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 5,531,916 | ||||||||||||||||||||||
Offering price | $ / shares | $ 1.05 | ||||||||||||||||||||||
Investor Warrants [Member] | November 10, 2021 [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 735,295 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | 5,335,763 | 5,310,763 | 5,310,763 | 5,335,763 | 5,310,763 | 5,335,763 | |||||||||||||||||
Offering price | $ / shares | $ 8.20 | ||||||||||||||||||||||
Investor Warrants [Member] | November 10, 2021 [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 7,352,941 | ||||||||||||||||||||||
Offering price | $ / shares | $ 0.82 | ||||||||||||||||||||||
Placement agent warrants [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 55,148 | ||||||||||||||||||||||
Placement agent warrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Number of new shares offered during period | 551,471 | ||||||||||||||||||||||
Placement agent warrants [Member] | Maximum [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 14,251 | ||||||||||||||||||||||
Placement agent warrants [Member] | Maximum [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 142,509 | ||||||||||||||||||||||
Placement agent warrants [Member] | May 2021 [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 41,490 | 41,490 | |||||||||||||||||||||
Offering price | $ / shares | $ 10.5 | ||||||||||||||||||||||
Shares issued (in shares) | 41,490 | ||||||||||||||||||||||
Placement agent warrants [Member] | May 2021 [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Offering price | $ / shares | $ 1.05 | ||||||||||||||||||||||
Shares issued (in shares) | 414,894 | ||||||||||||||||||||||
Placement agent warrants [Member] | November 10, 2021 [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 55,148 | 55,148 | 55,148 | 55,148 | 55,148 | 55,148 | |||||||||||||||||
Offering price | $ / shares | $ 6.80 | ||||||||||||||||||||||
Shares issued (in shares) | 55,148 | ||||||||||||||||||||||
Placement agent warrants [Member] | November 10, 2021 [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Offering price | $ / shares | $ 0.68 | ||||||||||||||||||||||
Shares issued (in shares) | 551,471 | ||||||||||||||||||||||
SeriesWarrants [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 133,602 | 133,603 | |||||||||||||||||||||
SeriesWarrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 1,336,021 | 1,336,021 | |||||||||||||||||||||
Series B Warrants [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 111,632 | 111,632 | 111,632 | ||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 111 | ||||||||||||||||||||||
Series B Warrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of warrant number of securities called by warrants | 1,116,320 | 1,116,320 | 1,116,320 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Nov. 09, 2021 shares | Oct. 31, 2021 USD ($) shares | Oct. 31, 2021 CNY (¥) shares | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2025 USD ($) | Dec. 31, 2022 | Feb. 05, 2021 USD ($) | Feb. 05, 2021 CNY (¥) | Oct. 23, 2020 | Sep. 11, 2020 USD ($) | Sep. 11, 2020 CNY (¥) | |
Agreed consideration | ||||||||||||
Exchange rate | 6.3400 | 6.5527 | 6.8972 | |||||||||
Cash acquired from XXTX, net of cash paid to XXTX | $ 0 | $ 8,065 | ||||||||||
XXTX | ||||||||||||
Agreed consideration | ||||||||||||
Investment in subsidiary | $ 5,700,000 | ¥ 36,840 | $ 500,000 | ¥ 3,160 | ||||||||
Percentage of ownership interest acquired | 51% | 51% | ||||||||||
Increased In Registered Capital | 7,800,000 | ¥ 50,800 | ||||||||||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | shares | 533,167 | 533,167 | 533,167 | |||||||||
Equity Method Investment, Ownership Percentage1 | 100% | 100% | ||||||||||
Consideration paid in cash | $ 5,810,000 | ¥ 36,860 | ||||||||||
Exchange rate | 6.69 | |||||||||||
Cash acquired from XXTX, net of cash paid to XXTX | $ 8,065 | |||||||||||
Remaining purchase consideration payable | $ 5,700,000 | |||||||||||
XXTX | Pre Reverse Split [Member] | ||||||||||||
Agreed consideration | ||||||||||||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | shares | 5,331,667 | 5,331,667 | 5,331,667 | |||||||||
XXTX | ||||||||||||
Agreed consideration | ||||||||||||
Equity Method Investment, Ownership Percentage1 | 100% | 100% | 27.74% | 27.74% | ||||||||
Forecast | XXTX | ||||||||||||
Agreed consideration | ||||||||||||
Remaining purchase consideration payable | $ 300,000 |
BUSINESS COMBINATION - Identifi
BUSINESS COMBINATION - Identifiable assets and liabilities (Details) - USD ($) | 3 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Business Acquisition [Line Items] | |||||||
Goodwill as of the acquisition date | $ 0 | $ 135,388 | $ 135,388 | ||||
Less: impairment loss of goodwill | $ 0 | $ 0 | $ 0 | (139,580) | (139,930) | $ 0 | |
Goodwill as of March 31, 2022 | $ 135,388 | 0 | 135,388 | ||||
XXTX | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration paid | 472,573 | ||||||
Fair value of non-controlling interest | 326,570 | ||||||
Cash and cash equivalents | 105,386 | ||||||
Other current assets | 525,005 | ||||||
Plant and equipment | 790 | ||||||
Intangible assets | 265,536 | ||||||
Total assets | 896,717 | ||||||
Total liabilities | (230,247) | ||||||
Total fair value of net assets of XXTX | 666,470 | ||||||
Goodwill as of the acquisition date | 132,673 | $ 0 | 0 | ||||
Effect of exchange rate changes on goodwill | 7,257 | ||||||
Less: impairment loss of goodwill | $ (139,930) | ||||||
Goodwill as of March 31, 2022 | $ 0 | $ 0 |
DISCONTINUED OPERATIONS (Deta_2
DISCONTINUED OPERATIONS (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Oct. 17, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Other receivables | $ 4,024,651 | $ 3,894,011 | |||
Additional paid-in capital | $ 43,339,412 | 42,803,033 | $ 40,759,807 | ||
Jinkailong [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Additional paid-in capital | 0 | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Online Lending Business [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accounts receivable, net | $ 143,668 | ||||
Other receivables | 3,760,599 | ||||
Prepayments for impaired intangible assets | $ 143,943 | ||||
Provision for doubtful accounts | $ 4,048,210 | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Additional paid-in capital | $ 0 | $ 42,803,033 |
DISCONTINUED OPERATIONS - Car_2
DISCONTINUED OPERATIONS - Carrying amounts of major classes of assets and liabilities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Oct. 17, 2019 |
Current assets | ||||
Total current assets | $ 0 | $ 2,720,825 | ||
Other Assets | ||||
Total Other Assets | 0 | 4,674,403 | ||
Current liabilities | ||||
Total current liabilities | $ 485,736 | 528,426 | 11,677,266 | |
Other Liabilities | ||||
Other liabilities discontinued operations | 0 | 2,250,393 | ||
Total other liabilities | 0 | 2,250,393 | ||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Online Lending Business [Member] | ||||
Current assets | ||||
Accounts receivable, net | $ 143,668 | |||
Prepayments, other receivables and other assets, net | 0 | 393,348 | ||
Property and equipment, net | 0 | 5,592 | ||
Other Assets | ||||
Total Asset | 0 | 398,940 | ||
Current liabilities | ||||
Accrued expenses and other liabilities | 468,376 | 509,540 | 2,288,066 | |
Due to stockholder | 17,360 | 18,886 | 48,795 | |
Total current liabilities | $ 485,736 | 528,426 | 2,336,861 | |
Other Liabilities | ||||
Total liabilities | 528,426 | 2,336,861 | ||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | ||||
Current liabilities | ||||
Total current liabilities | 528,426 | |||
Deconsolidation of Jinkailong | Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 107,546 | ||
Accounts receivable, net | 0 | 935,164 | ||
Prepayments, other receivables and other assets, net | 0 | 1,245,195 | ||
Due from related parties | 0 | 39,572 | ||
Total current assets | 0 | 2,327,477 | ||
Property and equipment, net | 0 | 448,816 | ||
Other Assets | ||||
Operating lease right-of-use assets, net | 0 | 265,470 | ||
Financing lease right-of use assets, net | 0 | 4,201,693 | ||
Accounts receivable, net, noncurrent | 0 | 207,240 | ||
Total Other Assets | 0 | 4,674,403 | ||
Total Asset | 0 | 7,450,696 | ||
Current liabilities | ||||
Borrowings from financial institutions | 0 | 310,662 | ||
Advance from customers | 0 | 45,413 | ||
Income tax payable | 0 | 17,408 | ||
Accrued expenses and other liabilities | 0 | 3,782,365 | ||
Due to related parties and affiliates | 0 | 269,918 | ||
Operating lease liabilities | 0 | 99,831 | ||
Finance lease liabilities | 0 | 4,814,808 | ||
Total current liabilities | 0 | 9,340,405 | ||
Other Liabilities | ||||
Borrowings from financial institutions, noncurrent | 0 | 44,962 | ||
Operating lease liabilities, non-current | 0 | 167,822 | ||
Financing lease liabilities, non-current | 0 | 2,037,609 | ||
Other liabilities discontinued operations | 0 | 2,250,393 | ||
Total other liabilities | 0 | 2,250,393 | ||
Total liabilities | $ 0 | $ 11,590,798 |
DISCONTINUED OPERATIONS - Rec_2
DISCONTINUED OPERATIONS - Reconciliation of major classes of income and losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating expenses | ||||||
Less: net loss from discontinued operations attributable to noncontrolling interest | $ (14,928) | $ (178,808) | $ (200,175) | $ (1,322,575) | $ 3,872,645 | $ (970,019) |
Net income (loss) attributable to the Company's stockholders | $ (971,341) | 155,459 | (1,721,978) | (5,673,230) | (536,624) | (10,360,058) |
Net loss attributable to stockholders | $ 0 | (2,418,757) | 8,227,892 | (5,187,214) | ||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Online Lending Business [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | 0 | 7,153 | ||||
Operating expenses | ||||||
Selling, general and administrative expenses | 0 | (88,438) | ||||
Total operating expenses | 0 | (88,438) | ||||
Loss from discontinued operations | 0 | (81,285) | ||||
Other income, net | 0 | 19,309 | ||||
Income (loss) before income taxes | 0 | (61,976) | ||||
Income tax expenses | 0 | 0 | ||||
Net loss attributable to stockholders | 0 | (61,976) | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | 1,882,930 | 5,096,441 | 6,830,116 | 3,971,694 | ||
Cost of revenues | (1,375,818) | (4,295,661) | (5,183,806) | (3,985,413) | ||
Gross profit | 507,112 | 800,780 | 1,646,310 | (13,719) | ||
Operating expenses | ||||||
Selling, general and administrative expenses | (525,673) | (2,597,474) | (4,139,800) | (4,367,529) | ||
Long live assets impairment | (32,479) | (119,886) | ||||
Recovery of (Provision for) doubtful account | 29,256 | 45,299 | (11,746) | 328,016 | ||
Total operating expenses | (897,822) | (2,983,182) | (4,184,025) | (4,159,399) | ||
Loss from discontinued operations | (390,710) | (2,182,402) | (2,537,715) | (4,173,118) | ||
Other income, net | (27,645) | (236,355) | (209,494) | (945,825) | ||
Income (loss) before income taxes | (418,355) | (2,418,757) | (2,747,209) | (5,118,943) | ||
Income tax expenses | 0 | 0 | (6,295) | |||
Net loss | (418,355) | (2,418,757) | (2,747,209) | (5,125,238) | ||
Less: net loss from discontinued operations attributable to noncontrolling interest | (108,772) | (628,877) | 714,274 | 1,332,562 | ||
Net income (loss) attributable to the Company's stockholders | $ (2,032,935) | $ (3,792,676) | ||||
Net loss attributable to stockholders | $ (309,583) | $ (1,789,880) | ||||
Equity Method Investment, Ownership Percentage1 | 35% | 35% | 35% |
DISCONTINUED OPERATIONS - Gain
DISCONTINUED OPERATIONS - Gain on deconsolidation (Details) - USD ($) | 12 Months Ended | |||||||||||
Mar. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | ||||
Current assets | ||||||||||||
Cash and cash equivalents | $ 1,185,221 | $ 1,537,609 | $ 4,340,529 | |||||||||
Accounts receivable, net, current portion | 418,022 | 204,763 | 502,031 | |||||||||
Inventories | 286,488 | 0 | 127,933 | |||||||||
Finance lease receivables, net, current portion | 314,264 | 170,337 | 541,605 | |||||||||
Prepayments, other receivables and other assets, net | 2,713,208 | 1,362,817 | 2,660,083 | |||||||||
Due from related parties, current portion | 682,335 | 659,299 | 0 | |||||||||
Total current assets | 5,599,538 | 3,944,641 | 10,893,006 | |||||||||
Property and equipment, net | ||||||||||||
Property and equipment, net | 5,658,773 | 3,530,196 | 3,251,331 | |||||||||
Property and equipment, net - discontinued operations | 0 | 454,408 | ||||||||||
Total property and equipment, net | 5,658,773 | 3,530,196 | 3,705,739 | |||||||||
Other assets | ||||||||||||
Operating lease right-of-use assets, net | 109,621 | 174,262 | 233,751 | |||||||||
Operating lease right-of-use assets, net, related parties | 515,906 | 139,787 | 580,367 | |||||||||
Financing lease right-of-use assets, net | 305,933 | 690,365 | 577,079 | |||||||||
Intangible assets, net | 959,551 | 819,671 | 968,131 | |||||||||
Goodwill | 0 | 135,388 | ||||||||||
Accounts Receivable, Net, Noncurrent | 69 | 0 | 61,943 | |||||||||
Finance lease receivables, net, noncurrent | 92,980 | 50,205 | 473,472 | |||||||||
Due from a related party, noncurrent | 6,635,746 | 5,351,735 | 0 | |||||||||
Total other assets | 8,619,806 | 8,063,756 | 7,704,534 | |||||||||
Total assets | 19,878,117 | 15,538,593 | 22,303,279 | |||||||||
Current liabilities | ||||||||||||
Borrowings from financial institutions | 145,542 | 22,857 | 0 | |||||||||
Accounts payable | 14,446 | 61,090 | 44,769 | |||||||||
Advances from customers | 120,629 | 120,871 | 110,173 | |||||||||
Accrued expenses and other liabilities | 2,444,367 | 2,715,209 | 2,873,227 | |||||||||
Due to related parties and affiliates | 11,682 | 117,237 | 82,909 | |||||||||
Operating lease liabilities | 50,177 | 104,075 | 109,813 | |||||||||
Operating lease liabilities - related parties | 330,781 | 163,558 | 243,726 | |||||||||
Financing lease liabilities | 304,557 | 402,526 | 358,135 | |||||||||
Derivative liabilities | 2,215,204 | 572,021 | 1,278,926 | |||||||||
Current liabilities - discontinued operations | 528,426 | 485,736 | 11,677,266 | |||||||||
Total current liabilities | 6,165,811 | 4,765,180 | 16,778,944 | |||||||||
Other Liabilities | ||||||||||||
Operating lease liabilities, non-current | 47,910 | 97,350 | 95,886 | |||||||||
Operating lease liabilities, non-current - related parties | 226,896 | 52,205 | 341,549 | |||||||||
Financing lease liabilities, non-current | 1,376 | 289,358 | 218,944 | |||||||||
Deferred tax liability | 46,386 | 42,746 | 44,993 | |||||||||
Other liabilities discontinued operations | 0 | 2,250,393 | ||||||||||
Total other liabilities | 322,568 | 481,659 | 2,951,765 | |||||||||
Total liabilities | 6,488,379 | 5,246,839 | 19,730,709 | |||||||||
Commitments and contingencies | ||||||||||||
Mezzanine Equity (redeemable) | ||||||||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding at March 31, 2022 and 2021, respectively), net of issuance costs of $118,344 | 820,799 | 285,802 | 0 | |||||||||
Stockholders' equity | ||||||||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,178,381 and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)* | 630 | [1] | 782 | [1] | 498 | [2] | ||||||
Additional paid-in capital | 42,803,033 | 43,339,412 | 40,759,807 | |||||||||
Accumulated deficit | (34,601,545) | (36,323,523) | (34,064,921) | |||||||||
Accumulated other comprehensive loss | (109,454) | (1,327,692) | (838,671) | |||||||||
Total Senmiao Technology Limited stockholders' equity | 8,092,664 | 5,688,979 | 5,856,713 | |||||||||
Non-controlling interests | 4,476,275 | 4,316,973 | (3,284,143) | |||||||||
Total equity | 12,568,939 | 10,005,952 | $ 10,662,480 | $ 12,112,569 | $ (1,969,316) | $ (2,560,833) | $ (2,540,300) | 2,572,570 | $ 1,472,357 | |||
Total liabilities, mezzanine equity and equity | 19,878,117 | 15,538,593 | 22,303,279 | |||||||||
Carrying amount of non-controlling interest | (4,476,275) | (4,316,973) | 3,284,143 | |||||||||
Jinkailong [Member] | ||||||||||||
Stockholders' equity | ||||||||||||
Additional paid-in capital | 0 | |||||||||||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Online Lending Business [Member] | ||||||||||||
Current liabilities | ||||||||||||
Current liabilities - discontinued operations | 528,426 | 485,736 | 2,336,861 | |||||||||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 1,185,221 | |||||||||||
Accounts receivable, net, current portion | 418,022 | |||||||||||
Inventories | 286,488 | |||||||||||
Finance lease receivables, net, current portion | 314,264 | |||||||||||
Prepayments, other receivables and other assets, net | 2,713,208 | |||||||||||
Due from related parties, current portion | 682,335 | |||||||||||
Total current assets | 5,599,538 | |||||||||||
Property and equipment, net | ||||||||||||
Property and equipment, net - discontinued operations | 5,658,773 | |||||||||||
Total property and equipment, net | 5,658,773 | |||||||||||
Other assets | ||||||||||||
Operating lease right-of-use assets, net | 109,621 | |||||||||||
Operating lease right-of-use assets, net, related parties | 515,906 | |||||||||||
Financing lease right-of-use assets, net | 305,933 | |||||||||||
Intangible assets, net | 959,551 | |||||||||||
Accounts Receivable, Net, Noncurrent | 69 | |||||||||||
Finance lease receivables, net, noncurrent | 92,980 | |||||||||||
Due from a related party, noncurrent | 6,635,746 | |||||||||||
Total other assets | 8,619,806 | |||||||||||
Total assets | 19,878,117 | |||||||||||
Current liabilities | ||||||||||||
Borrowings from financial institutions | 145,542 | |||||||||||
Accounts payable | 14,446 | |||||||||||
Advances from customers | 120,629 | |||||||||||
Accrued expenses and other liabilities | 2,444,367 | |||||||||||
Due to related parties and affiliates | 11,682 | |||||||||||
Operating lease liabilities | 50,177 | |||||||||||
Operating lease liabilities - related parties | 330,781 | |||||||||||
Financing lease liabilities | 304,557 | |||||||||||
Derivative liabilities | 2,215,204 | |||||||||||
Current liabilities - discontinued operations | 528,426 | |||||||||||
Total current liabilities | 6,165,811 | |||||||||||
Other Liabilities | ||||||||||||
Operating lease liabilities, non-current | 47,910 | |||||||||||
Operating lease liabilities, non-current - related parties | 226,896 | |||||||||||
Financing lease liabilities, non-current | 1,376 | |||||||||||
Deferred tax liability | 46,386 | |||||||||||
Total other liabilities | 322,568 | |||||||||||
Total liabilities | 6,488,379 | |||||||||||
Commitments and contingencies | ||||||||||||
Mezzanine Equity (redeemable) | ||||||||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding at March 31, 2022 and 2021, respectively), net of issuance costs of $118,344 | 820,799 | |||||||||||
Stockholders' equity | ||||||||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,178,381 and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)* | 630 | |||||||||||
Additional paid-in capital | 42,803,033 | $ 0 | ||||||||||
Accumulated deficit | (34,601,545) | |||||||||||
Accumulated other comprehensive loss | (109,454) | |||||||||||
Total Senmiao Technology Limited stockholders' equity | 8,092,664 | |||||||||||
Non-controlling interests | 4,476,275 | |||||||||||
Total equity | 12,568,939 | |||||||||||
Total liabilities, mezzanine equity and equity | 19,878,117 | |||||||||||
Carrying amount of non-controlling interest | (4,476,275) | |||||||||||
Consolidation included Jinkailong as of March 31, 2022 | Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 1,241,452 | |||||||||||
Accounts receivable, net, current portion | 766,373 | |||||||||||
Inventories | 286,488 | |||||||||||
Finance lease receivables, net, current portion | 314,264 | |||||||||||
Prepayments, other receivables and other assets, net | 3,699,361 | |||||||||||
Due from related parties, current portion | 51,135 | |||||||||||
Total current assets | 6,359,073 | |||||||||||
Property and equipment, net | ||||||||||||
Property and equipment, net - discontinued operations | 5,916,327 | |||||||||||
Total property and equipment, net | 5,916,327 | |||||||||||
Other assets | ||||||||||||
Operating lease right-of-use assets, net | 306,330 | |||||||||||
Operating lease right-of-use assets, net, related parties | 515,906 | |||||||||||
Financing lease right-of-use assets, net | 1,349,922 | |||||||||||
Intangible assets, net | 959,551 | |||||||||||
Accounts Receivable, Net, Noncurrent | 2,732 | |||||||||||
Finance lease receivables, net, noncurrent | 92,980 | |||||||||||
Total other assets | 3,227,421 | |||||||||||
Total assets | 15,502,821 | |||||||||||
Current liabilities | ||||||||||||
Borrowings from financial institutions | 471,913 | |||||||||||
Accounts payable | 14,446 | |||||||||||
Advances from customers | 1,087,928 | |||||||||||
Income tax payable | 17,992 | |||||||||||
Accrued expenses and other liabilities | 7,316,269 | |||||||||||
Due to related parties and affiliates | 478,825 | |||||||||||
Operating lease liabilities | 164,321 | |||||||||||
Operating lease liabilities - related parties | 330,781 | |||||||||||
Financing lease liabilities | 3,502,481 | |||||||||||
Derivative liabilities | 2,215,204 | |||||||||||
Current liabilities - discontinued operations | 528,426 | |||||||||||
Total current liabilities | 16,128,586 | |||||||||||
Other Liabilities | ||||||||||||
Borrowings from financial institutions, noncurrent | 9,271 | |||||||||||
Operating lease liabilities, non-current | 135,323 | |||||||||||
Operating lease liabilities, non-current - related parties | 226,896 | |||||||||||
Financing lease liabilities, non-current | 793,980 | |||||||||||
Deferred tax liability | 46,386 | |||||||||||
Total other liabilities | 1,211,856 | |||||||||||
Total liabilities | 17,340,442 | |||||||||||
Commitments and contingencies | ||||||||||||
Mezzanine Equity (redeemable) | ||||||||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding at March 31, 2022 and 2021, respectively), net of issuance costs of $118,344 | 820,799 | |||||||||||
Stockholders' equity | ||||||||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,178,381 and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)* | 630 | |||||||||||
Additional paid-in capital | 42,803,033 | |||||||||||
Accumulated deficit | (45,553,090) | |||||||||||
Accumulated other comprehensive loss | (780,112) | |||||||||||
Total Senmiao Technology Limited stockholders' equity | (3,529,539) | |||||||||||
Non-controlling interests | 871,119 | |||||||||||
Total equity | 2,658,420 | |||||||||||
Total liabilities, mezzanine equity and equity | 15,502,821 | |||||||||||
Carrying amount of non-controlling interest | (871,119) | |||||||||||
Deconsolidation of Jinkailong | Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | (56,231) | |||||||||||
Accounts receivable, net, current portion | (348,351) | |||||||||||
Prepayments, other receivables and other assets, net | (986,153) | |||||||||||
Due from related parties, current portion | (631,200) | |||||||||||
Total current assets | (759,535) | |||||||||||
Property and equipment, net | ||||||||||||
Property and equipment, net - discontinued operations | (257,554) | |||||||||||
Total property and equipment, net | (257,554) | |||||||||||
Other assets | ||||||||||||
Operating lease right-of-use assets, net | (196,709) | |||||||||||
Financing lease right-of-use assets, net | (1,043,989) | |||||||||||
Accounts Receivable, Net, Noncurrent | (2,663) | |||||||||||
Due from a related party, noncurrent | (6,635,746) | |||||||||||
Total other assets | (5,392,385) | |||||||||||
Total assets | (4,375,296) | |||||||||||
Current liabilities | ||||||||||||
Borrowings from financial institutions | (326,371) | |||||||||||
Advances from customers | (967,299) | |||||||||||
Income tax payable | (17,992) | |||||||||||
Accrued expenses and other liabilities | (4,871,902) | |||||||||||
Due to related parties and affiliates | (467,143) | |||||||||||
Operating lease liabilities | (114,144) | |||||||||||
Financing lease liabilities | (3,197,924) | |||||||||||
Current liabilities - discontinued operations | 0 | 9,340,405 | ||||||||||
Total current liabilities | (9,962,775) | |||||||||||
Other Liabilities | ||||||||||||
Borrowings from financial institutions, noncurrent | (9,271) | |||||||||||
Operating lease liabilities, non-current | (87,413) | |||||||||||
Financing lease liabilities, non-current | (792,604) | |||||||||||
Other liabilities discontinued operations | 0 | $ 2,250,393 | ||||||||||
Total other liabilities | (889,288) | |||||||||||
Total liabilities | (10,852,063) | |||||||||||
Commitments and contingencies | ||||||||||||
Stockholders' equity | ||||||||||||
Accumulated deficit | 10,951,545 | |||||||||||
Accumulated other comprehensive loss | 670,658 | |||||||||||
Total Senmiao Technology Limited stockholders' equity | 11,622,203 | |||||||||||
Non-controlling interests | 3,605,156 | |||||||||||
Total equity | 15,227,359 | |||||||||||
Total liabilities, mezzanine equity and equity | (4,375,296) | |||||||||||
Carrying amount of net deficit of Jinkailong as of March 31, 2022 | 15,227,359 | |||||||||||
Carrying amount of non-controlling interest | (3,605,156) | |||||||||||
Cumulative currency translation adjustment removal | (670,658) | |||||||||||
Net gain on deconsolidation of Jinkailong | $ 10,951,545 | |||||||||||
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022[2]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
DISCONTINUED OPERATIONS - Gai_2
DISCONTINUED OPERATIONS - Gain on deconsolidation (Parenthetical) (Details) | Apr. 06, 2022 | Dec. 31, 2022 $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||
Common Stock, Shares, Issued | 7,693,040 | 6,186,783 | 4,978,073 | ||
Common Stock, Shares, Outstanding | 7,682,908 | 6,186,783 | 4,978,073 | ||
Reverse stock split conversion ratio | 0.1 | ||||
Youlu | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Related party receivable as a result of deconsolidation | $ | $ 23,556 | ||||
Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||
Common Stock, Shares Authorized | 10,000,000 | ||||
Common Stock, Shares, Issued | 6,186,783 | ||||
Common Stock, Shares, Outstanding | 6,186,783 | ||||
Related party receivable as a result of deconsolidation | $ | $ 7,298,208 | ||||
Related party receivable noncurrent as a result of deconsolidation | $ | 6,635,746 | ||||
Due to related party excluded upon deconsolidation | $ | $ 31,263 | ||||
Reverse stock split conversion ratio | 0.1 | ||||
Series A Convertible Preferred Stock [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred Stock, Shares Authorized | 5,000 | 5,000 | 5,000 | ||
Preferred Stock, Shares Issued | 1,741 | 5,000 | 0 | ||
Preferred Stock, Shares Outstanding | 1,741 | 5,000 | 0 | ||
Net of issuance costs | $ | $ 118,344 | $ 118,344 | |||
Series A Convertible Preferred Stock [Member] | Discontinued Operations, Disposed of by Means Other than Sale, Abandonment [Member] | Jinkailong [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||
Preferred Stock, Shares Authorized | 5,000 | ||||
Preferred Stock, Shares Issued | 5,000 | ||||
Preferred Stock, Shares Outstanding | 5,000 | ||||
Net of issuance costs | $ | $ 118,344 |
ACCOUNTS RECEIVABLE, NET (Det_2
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less: Unearned interest | $ (40,447) | |||
Less: Allowance for doubtful accounts | $ (112,905) | (78,167) | $ (379,689) | |
Accounts receivable, net | $ 204,763 | 418,091 | 1,706,378 | |
Accounts receivable, net, current portion | 204,763 | 418,022 | 502,031 | |
Accounts receivable, net, non-current portion | 0 | 69 | 61,943 | |
Discontinued Operations [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less: Allowance for doubtful accounts | (76,428) | |||
Accounts receivable, net | 1,142,404 | |||
Accounts receivable, net, current portion | 204,763 | 418,022 | 935,164 | |
Accounts receivable, net, non-current portion | 69 | 207,240 | ||
Continuing Operations [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Less: Allowance for doubtful accounts | 0 | (112,905) | (1,739) | |
Accounts receivable, net | 418,091 | 563,974 | ||
Accounts receivable, net, current portion | 418,022 | 502,031 | ||
Accounts receivable, net, non-current portion | 69 | 61,943 | ||
Receivables of automobile sales due from automobile purchasers [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 107,246 | 392,530 | 760,126 | |
Receivables of services fees due from automobile purchasers [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 15,949 | 17,350 | 731,962 | |
Receivables of online ride hailing fees from online ride-hailing drivers [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | 46,848 | $ 121,116 | 162,197 | |
Receivables of operating lease [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 34,720 | $ 170,707 |
ACCOUNTS RECEIVABLE, NET - Al_2
ACCOUNTS RECEIVABLE, NET - Allowance for doubtful accounts (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
ACCOUNTS RECEIVABLE, NET | |||
Beginning balance | $ 112,905 | $ 78,167 | $ 379,689 |
Addition | 3,392 | 153,988 | 374,785 |
Recovery | (209,723) | ||
Write off | (107,820) | (44,227) | (485,384) |
Translation adjustment | $ (8,477) | 1,405 | 18,800 |
Deconsolidation of Jinkailong | (76,428) | 0 | |
Ending balance | $ 112,905 | $ 78,167 |
INVENTORIES (Details)_2
INVENTORIES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Public Utilities, Inventory [Line Items] | |||
Inventories | $ 0 | $ 286,488 | $ 127,933 |
Automobiles [Member] | |||
Public Utilities, Inventory [Line Items] | |||
Inventories | $ 0 | $ 286,488 | $ 127,933 |
INVENTORIES - Additional info_2
INVENTORIES - Additional information (Details) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) item | |
Public Utilities, Inventory [Line Items] | ||||
Number of inventory units | item | 3 | |||
Inventory net available for sale | $ 47,410 | |||
Impairments of inventories | $ 3,085 | $ 0 | $ 60,398 | $ 0 |
Automobiles For Either Leasing Or Sale [Member] | ||||
Public Utilities, Inventory [Line Items] | ||||
Number of inventory units | item | 0 | 36 | 6 | |
Inventory net for sale or sales-type leases | $ 0 | $ 346,886 | $ 80,523 |
PREPAYMENTS, OTHER RECEIVABLE_7
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Receivables from borrowers of online lending platform, net (i) | [1] | $ 0 | $ 393,348 | |
Prepaid expenses (ii) | $ 242,779 | 957,200 | 829,032 | |
Deposits (iii) | 618,689 | 731,279 | 537,619 | |
Value added tax ("VAT") recoverable | 93,214 | 597,884 | 99,445 | |
Due from automobile purchasers, net (iv) | 103,333 | 238,421 | 504,792 | |
Receivables from aggregation platforms (v) | 253,168 | 163,384 | 867,614 | |
Prepayments for automobiles (vi) | 1,026,802 | |||
Employee advances | 8,951 | 11,054 | 9,739 | |
Others | 42,683 | 13,986 | 30,235 | |
Total prepayments, receivables and other assets | $ 1,362,817 | 2,713,208 | 4,298,626 | |
Discontinued Operations [Member] | ||||
Total prepayments, receivables and other assets | 1,638,543 | |||
Continuing Operations [Member] | ||||
Total prepayments, receivables and other assets | $ 2,713,208 | $ 2,660,083 | ||
[1] Receivables from borrowers of online lending platform, net |
PREPAYMENTS, OTHER RECEIVABLE_8
PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS - Additional information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for doubtful receivables | $ 4,024,651 | $ 3,894,011 | |
Discontinued Operations [Member] | |||
Allowance for Doubtful Other Receivables, Current | 38,519 | ||
Amount of additional allowance received | $ 24,838 | 35,983 | 93,246 |
Write Off Receivables | 26,555 | 1,134 | 295,741 |
Allowance recovered | 12,308 | 12,352 | 125,940 |
Continuing Operations [Member] | |||
Allowance for Doubtful Other Receivables, Current | 0 | 3,240 | |
Amount of additional allowance received | 55,459 | 84,600 | 175,460 |
Write Off Receivables | $ 32,201 | 84,600 | 172,336 |
Allowance recovered | $ 3,308 | $ 0 |
PROPERTY AND EQUIPMENT, NET (_3
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | |
Property and equipment | |||||
Property, plant and equipment, Gross | $ 6,791,908 | $ 4,128,766 | $ 4,957,491 | ||
Less: accumulated depreciation and amortization | (1,133,135) | (423,027) | (1,427,295) | ||
Total property and equipment, net | 5,658,773 | 3,705,739 | 3,530,196 | ||
Discontinued Operations [Member] | |||||
Property and equipment | |||||
Total property and equipment, net | 454,408 | ||||
Depreciation and amortization expense | $ 886,651 | $ 2,857,864 | 170,177 | 183,683 | |
Continuing Operations [Member] | |||||
Property and equipment | |||||
Total property and equipment, net | 5,658,773 | 3,251,331 | |||
Depreciation and amortization expense | $ 550,027 | $ 1,444,606 | 956,400 | 85,530 | |
Leasehold improvements [Member] | |||||
Property and equipment | |||||
Property, plant and equipment, Gross | 198,463 | 192,020 | 182,429 | ||
Electronic devices | |||||
Property and equipment | |||||
Property, plant and equipment, Gross | 47,849 | 53,200 | |||
Office equipment, fixtures and furniture [Member] | |||||
Property and equipment | |||||
Property, plant and equipment, Gross | 81,898 | 104,735 | $ 78,036 | ||
Vehicles | |||||
Property and equipment | |||||
Property, plant and equipment, Gross | $ 6,463,698 | $ 3,778,811 |
INTANGIBLE ASSETS, NET (Detai_2
INTANGIBLE ASSETS, NET (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Finite-Lived Intangible Assets, Gross | $ 1,232,857 | $ 1,246,743 | |
Less: Accumulated amortization | (413,186) | (287,192) | $ (123,675) |
Total intangible assets, net | 819,671 | 959,551 | 968,131 |
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets, Gross | 793,195 | 796,042 | 794,548 |
Online Ride-Hailing Platform Services [Member] | |||
Finite-Lived Intangible Assets, Gross | $ 439,662 | $ 450,701 | $ 297,258 |
INTANGIBLE ASSETS, NET - Amor_2
INTANGIBLE ASSETS, NET - Amortization expenses (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
INTANGIBLE ASSETS, NET | ||
Twelve months ending March 31, 2023 | $ 179,616 | $ 186,772 |
Twelve months ending March 31, 2024 | 169,528 | 178,660 |
Twelve months ending March 31, 2025 | 133,240 | 171,289 |
Twelve months ending March 31, 2026 | 85,157 | 111,011 |
Twelve months ending March 31, 2027 | 78,586 | 79,563 |
Thereafter | 173,544 | 232,256 |
Total | $ 819,671 | $ 959,551 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of Intangible Assets | $ 128,538 | $ 104,829 | $ 160,831 | $ 107,765 | ||
Continuing Operations [Member] | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Amortization of Intangible Assets | $ 34,814 | $ 30,186 | $ 128,538 | $ 104,829 | $ 160,831 | $ 107,765 |
BORROWINGS FROM A FINANCIAL I_4
BORROWINGS FROM A FINANCIAL INSTITUTIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Long-Term Debt, Term | 12 months | |||||
Interest rate | 13.04% | 13.04% | 13.04% | |||
Interest expense | $ 450,889 | $ 531,954 | ||||
Shor-Term Loan from Financial Institutions [Member] | ||||||
Short-term loan from a bank and the difference between the actual proceeds disbursed by the financial institution to Jinkailong | $ 22,857 | $ 22,857 | 145,542 | |||
Financial Institutions Borrower [Member] | Discontinued Operations [Member] | ||||||
Interest Expense, Borrowings | $ 16,475 | $ 38,251 | 501,361 | 579,870 | ||
Financial Institutions Borrower [Member] | Continuing Operations [Member] | ||||||
Interest Expense, Borrowings | $ 6,975 | $ 0 | $ 6,975 | $ 5,872 | $ 5,893 | $ 0 |
ACCRUED EXPENSES AND OTHER LI_6
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Payables to investors of online lending platform (i) | $ 1,795,066 | ||
Accrued payroll and welfare | $ 1,305,857 | $ 1,176,442 | 1,306,509 |
Payables to drivers from aggregation platforms (ii) | 845,726 | 806,921 | 2,352,264 |
Deposits (iii) | 555,513 | 783,830 | 1,639,681 |
Accrued expenses | 261,085 | 94,106 | 6,090 |
Payables for expenditures on automobile transaction and related services | 26,562 | 56,222 | 159,388 |
Loan repayments received on behalf of financial institutions (iv) | 63,989 | 28,704 | 839,770 |
Other taxes payable | 113,083 | 5,260 | 398,220 |
Other payables (v) | 11,770 | 2,422 | 446,670 |
Total accrued expenses and other liabilities | 3,183,585 | 2,953,907 | 8,943,658 |
Continuing Operations [Member] | |||
Total accrued expenses and other liabilities | 2,715,209 | 2,444,367 | 2,873,227 |
Discontinued Operations [Member] | |||
Total accrued expenses and other liabilities | $ 468,376 | $ 509,540 | $ 6,070,431 |
EMPLOYEE BENEFIT PLAN (Detail_2
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Continuing Operations [Member] | ||||||
Defined Contribution Plan, Cost | $ 107,638 | $ 130,591 | $ 338,279 | $ 383,896 | $ 602,641 | $ 73,047 |
Defined Benefit Plan, Benefit Obligation | $ 885,967 | $ 885,967 | 963,824 | 111,534 | ||
Discontinued Operations [Member] | ||||||
Defined Contribution Plan, Cost | $ 78,618 | $ 182,128 | $ 464,159 | 340,517 | ||
Defined Benefit Plan, Benefit Obligation | $ 897,091 |
EQUITY - IPO Warrants (Detail_2
EQUITY - IPO Warrants (Details) - shares | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | |
IPO Underwriters Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants outstanding | 3,794 | 3,794 |
IPO Underwriters Warrants [Member] | Pre Reverse Split [Member] | ||
Class of Warrant or Right [Line Items] | ||
Number of warrants outstanding | 37,940 | 37,940 |
Common Stock [Member] | ||
Class of Warrant or Right [Line Items] | ||
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 $48.0 ($4.80 pre reverse split) per share and is not exercisable for a period of 180 days from March 16, 2018 | |
Common Stock [Member] | IPO Underwriters Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 33,794 | 33,794 |
Common Stock [Member] | IPO Underwriters Warrants [Member] | Pre Reverse Split [Member] | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 337,940 | 337,940 |
EQUITY - 2019 Registered Dire_2
EQUITY - 2019 Registered Direct Offering Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||||||
Change in fair value of derivative liabilities | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||
Twenty Nineteen Registered Direct Offering Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants outstanding | 16,841 | 16,841 | 16,841 | 21,244 | ||
Change in fair value of derivative liabilities | $ 524 | $ 32,150 | $ 12,220 | $ 168,230 | $ 185,727 | $ (1,372,966) |
Fair value of the derivative instrument | $ 218 | $ 218 | $ 12,438 | $ 243,840 | ||
Twenty Nineteen Registered Direct Offering Warrants [Member] | Pre Reverse Split [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants outstanding | 168,411 | 168,411 | 168,411 | 212,440 |
EQUITY - August 2020 Underwri_2
EQUITY - August 2020 Underwriters' Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||||||
Change in fair value of derivative liabilities | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||
Underwriters Securities Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants outstanding | 31,808 | 31,808 | 31,808 | 31,808 | ||
Change in fair value of derivative liabilities | $ 1,180 | $ 64,140 | $ 34,526 | $ 315,393 | $ 352,944 | $ (455,162) |
Fair value of the derivative instrument | $ 10,055 | $ 10,055 | $ 44,581 | $ 397,525 | ||
Underwriters Securities Warrants [Member] | Pre Reverse Split [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants outstanding | 318,080 | 318,080 | 318,080 | 318,080 |
EQUITY - February 2021 Regist_2
EQUITY - February 2021 Registered Direct Offering Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||||||
Change in fair value of derivative liabilities | $ (1,641,650) | $ (5,185,309) | $ (6,951,482) | $ 1,710,415 | ||
February 2021 Registered Direct Offering Warrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants outstanding | 53,262 | 53,262 | 53,262 | 53,262 | ||
Change in fair value of derivative liabilities | $ 1,952 | $ 102,568 | $ 51,581 | $ 514,123 | $ 572,018 | $ 117,713 |
Fair value of the derivative instrument | $ 13,962 | $ 13,962 | $ 65,543 | $ 637,561 | ||
February 2021 Registered Direct Offering Warrants [Member] | Pre Reverse Split [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants outstanding | 532,609 | 532,609 | 532,609 | 532,609 |
EQUITY - May 2021 Registered _2
EQUITY - May 2021 Registered Direct Offering Warrants (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 21, 2019 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) shares | Mar. 31, 2021 USD ($) | May 13, 2021 $ / shares | |
Class of Warrant or Right [Line Items] | ||||||||
Common stock | $ 6,000,000 | |||||||
Total net proceeds | $ 0 | $ 5,771,053 | $ 5,771,053 | $ 5,743,905 | ||||
Change in fair value of derivative liabilities | $ (1,641,650) | (5,185,309) | (6,951,482) | $ 1,710,415 | ||||
May 2021 Registered Direct Offering Warrants [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Fair value of the warrants | 3,562,404 | |||||||
Common stock | 2,208,649 | |||||||
Total net proceeds | $ 5,771,053 | |||||||
Number of warrants outstanding | shares | 594,682 | 594,682 | 594,682 | |||||
Change in fair value of derivative liabilities | $ 4,974 | $ 1,186,878 | $ 634,040 | $ 2,036,440 | $ 2,725,530 | |||
Fair value of the derivative instrument | $ 202,835 | $ 202,835 | $ 836,875 | |||||
May 2021 Registered Direct Offering Warrants [Member] | Pre Reverse Split [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Number of warrants outstanding | shares | 5,946,810 | 5,946,810 | 5,946,810 | |||||
Volatility [Member] | May 2021 Registered Direct Offering Warrants [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 131 | |||||||
Risk free interest rate [Member] | May 2021 Registered Direct Offering Warrants [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0.84 | |||||||
Measurement Input, Expected Dividend Rate [Member] | May 2021 Registered Direct Offering Warrants [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | |||||||
Expected term [Member] | May 2021 Registered Direct Offering Warrants [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants and Rights Outstanding, Term | 5 years | |||||||
Closing price | May 2021 Registered Direct Offering Warrants [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants and Rights Outstanding, Measurement Input | $ / shares | 7.2 | |||||||
Closing price | May 2021 Registered Direct Offering Warrants [Member] | Pre Reverse Split [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Warrants and Rights Outstanding, Measurement Input | $ / shares | 0.72 |
EQUITY - November 2021 Privat_2
EQUITY - November 2021 Private Placement Warrants (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
May 13, 2021 shares | Jul. 21, 2019 USD ($) | Jun. 21, 2019 shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) | |
Class of Warrant or Right [Line Items] | |||||||||
Shares Offered During Period, New Issuance | shares | 553,192 | 178,137 | |||||||
Series A Preferred Stock | $ 6,000,000 | ||||||||
Total net proceeds | $ 0 | $ 5,771,053 | $ 5,771,053 | $ 5,743,905 | |||||
Change in fair value of derivative liabilities | (1,641,650) | (5,185,309) | (6,951,482) | $ 1,710,415 | |||||
Total fair value of warrants allocated to derivative liabilities | $ 4,371,030 | ||||||||
Investor Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Shares Offered During Period, New Issuance | shares | 735,295 | ||||||||
Total fair value of warrants allocated to derivative liabilities | $ 4,060,857 | ||||||||
Placement agent warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Shares Offered During Period, New Issuance | shares | 55,148 | ||||||||
Total fair value of warrants allocated to derivative liabilities | $ 310,173 | ||||||||
November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Fair value of the warrants | 4,060,857 | ||||||||
Series A Preferred Stock | 939,143 | ||||||||
Total gross proceeds | 5,000,000 | ||||||||
Issuance cost | (630,063) | ||||||||
Total net proceeds | 4,369,937 | ||||||||
Change in fair value of derivative liabilities | $ 21,927 | $ 2,151,123 | 909,283 | $ 2,151,123 | 3,115,263 | ||||
Fair value of the derivative instrument | $ 344,951 | $ 344,951 | $ 1,255,767 | ||||||
Pre Reverse Split [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Shares Offered During Period, New Issuance | shares | 5,531,916 | 1,781,361 | |||||||
Pre Reverse Split [Member] | Investor Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Shares Offered During Period, New Issuance | shares | 7,352,941 | ||||||||
Pre Reverse Split [Member] | Placement agent warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Shares Offered During Period, New Issuance | shares | 551,471 | ||||||||
Volatility [Member] | November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants and Rights Outstanding, Measurement Input | 126 | ||||||||
Risk free interest rate [Member] | November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants and Rights Outstanding, Measurement Input | 1.23 | ||||||||
Measurement Input, Expected Dividend Rate [Member] | November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | ||||||||
Expected term [Member] | November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||
Closing price | November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants and Rights Outstanding, Measurement Input | $ / shares | 6.7 | ||||||||
Closing price | Pre Reverse Split [Member] | November 2021 Private Placement Warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants and Rights Outstanding, Measurement Input | $ / shares | 0.67 |
EQUITY - Warrants Outstanding_2
EQUITY - Warrants Outstanding (Details) - Warrant [Member] - $ / shares | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2019 | |
Warrants Outstanding | ||||
Balance at the beginning | 6,091,298 | 110,107 | 1,519,602 | |
Granted | 5,985,591 | 1,100,609 | ||
Forfeited | (3,132) | |||
Exercised | (25,000) | (4,400) | (1,516,010) | |
Balance at the end | 6,066,298 | 6,091,298 | 110,107 | |
Warrants Exercisable | ||||
Balance at the beginning | 6,091,298 | 110,107 | 1,519,602 | |
Granted | 5,985,591 | 1,100,609 | ||
Forfeited | (3,132) | |||
Exercised | (25,000) | (4,400) | (1,516,010) | |
Balance at the end | 6,066,298 | 6,091,298 | 110,107 | |
Weighted Average Exercise Price | ||||
Balance at the beginning | $ 2.28 | $ 11.60 | $ 1.76 | |
Granted | 2.11 | 1.48 | ||
Balance at the end | $ 2.29 | $ 2.28 | $ 11.60 | |
Granted | 5 years | 5 years | ||
Average remaining contractual life | 3 years 9 months 21 days | 4 years 3 months 25 days | 4 years 1 month 2 days | 3 years 2 months 15 days |
EQUITY - Restricted Stock Uni_2
EQUITY - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | Oct. 29, 2021 | Oct. 29, 2020 |
Class of Warrant or Right [Line Items] | ||
Granted | 127,273 | |
Aggregate fair value | $ 140,000 | |
Vested | 127,273 | 12,727 |
Settled | 9,545 | |
Pre Reverse Split [Member] | ||
Class of Warrant or Right [Line Items] | ||
Vested | 127,273 | |
Settled | 95,457 |
EQUITY - Equity Incentive Pla_2
EQUITY - Equity Incentive Plan (Details) | Nov. 08, 2018 director |
Equity Incentive Plan [Member] | |
Class of Warrant or Right [Line Items] | |
Number of Directors Ceased To Serve | 2 |
EQUITY - Exercise of 2019 Regis
EQUITY - Exercise of 2019 Registered Direct Offering Warrants (Details) | Apr. 23, 2021 USD ($) shareholder $ / shares shares | Nov. 30, 2021 $ / shares | Dec. 20, 2019 $ / shares | Aug. 15, 2019 $ / shares | Jul. 21, 2019 shares | Jun. 21, 2019 shares |
Class of Warrant or Right [Line Items] | ||||||
Exercise price of warrants | $ 0.82 | |||||
SeriesWarrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Class of warrant number of securities called by warrants | shares | 133,602 | 133,603 | ||||
Exercise price of warrants | $ 15 | $ 37.2 | ||||
SeriesWarrants [Member] | Pre Reverse Split [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Class of warrant number of securities called by warrants | shares | 1,336,021 | 1,336,021 | ||||
Exercise price of warrants | $ 1.50 | $ 3.72 | ||||
Note Warrant [Member] | SeriesWarrants [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of shareholder | shareholder | 1 | |||||
Class of warrant number of securities called by warrants | shares | 4,403 | |||||
Exercise price of warrants | $ 5 | |||||
Gross proceeds from warrant exercises | $ | $ 22,015 | |||||
Note Warrant [Member] | SeriesWarrants [Member] | Pre Reverse Split [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Class of warrant number of securities called by warrants | shares | 44,029 | |||||
Exercise price of warrants | $ 0.50 |
EQUITY - May 2021 Registered _3
EQUITY - May 2021 Registered Direct Offering (Details) - USD ($) | May 13, 2021 | May 11, 2021 | Jul. 21, 2019 | Dec. 31, 2022 | Mar. 31, 2022 | Nov. 30, 2021 | Mar. 31, 2021 |
Class of Warrant or Right [Line Items] | |||||||
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Net proceeds from offering | $ 6,000,000 | ||||||
Exercise price of warrants | $ 0.82 | ||||||
May 2021 Registered Direct Offering | |||||||
Class of Warrant or Right [Line Items] | |||||||
Shares issued | 553,192 | ||||||
Common stock, par value (in dollar per share) | $ 0.0001 | ||||||
Price per share | $ 1.175 | ||||||
Placement Agent Cash Commission | $ 6,500,000 | ||||||
Net proceeds from offering | $ 5,800,000 | $ 5,800,000 | |||||
Warrants and Rights Outstanding, Term | 5 years | ||||||
Exercise price of warrants | $ 10.5 | ||||||
Number of warrants issued | 41,490 | ||||||
Proceeds from the offering and warrants to purchase up shares of its common stock | 553,192 | ||||||
Percentage Of Ownership Upon Exercise Price Of Warrants Or Rights1 | 4.99% | ||||||
May 2021 Registered Direct Offering | Pre Reverse Split [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Shares issued | 5,531,916 | ||||||
Common stock, par value (in dollar per share) | $ 0.0001 | ||||||
Exercise price of warrants | $ 1.05 | ||||||
Number of warrants issued | 414,894 | ||||||
Proceeds from the offering and warrants to purchase up shares of its common stock | 5,531,916 | ||||||
FT Global Capital, Inc. | May 2021 Registered Direct Offering | |||||||
Class of Warrant or Right [Line Items] | |||||||
Cash fee | 7.50% | ||||||
Placement agent warrants [Member] | May 2021 Registered Direct Offering | |||||||
Class of Warrant or Right [Line Items] | |||||||
Cash fee | 7.50% |
EQUITY - November 2021 Privat_3
EQUITY - November 2021 Private Placement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Nov. 10, 2021 | Nov. 09, 2021 | Nov. 08, 2021 | Nov. 07, 2021 | Apr. 21, 2019 | Apr. 20, 2019 | Dec. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Aug. 09, 2022 | Apr. 06, 2022 | Nov. 30, 2021 | Nov. 06, 2021 | Mar. 31, 2021 | Aug. 13, 2020 | |
EQUITY | |||||||||||||||
Value of shares | $ 653,000 | $ 653,000 | |||||||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Threshold percentage on closing bid price | 85% | ||||||||||||||
Exercise price of warrants | $ 0.82 | ||||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 178,136 | 1,781,360 | |||||||||||||
Private Placement | |||||||||||||||
EQUITY | |||||||||||||||
Shares of common stock issued to a consultant for services to be rendered | 5,000 | ||||||||||||||
Initial conversion price | $ 2 | $ 4.10 | |||||||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | ||||||||||||||
Share price | $ 6.8 | ||||||||||||||
Threshold for adjusted conversion price | $ 0.41 | ||||||||||||||
Threshold percentage on closing bid price | 85% | ||||||||||||||
Term of the warrants | 5 years | 5 years | |||||||||||||
Commencement period for warrants to become exercisable | 6 months 1 day | ||||||||||||||
Exercise price of warrants | $ 8.2 | $ 6.8 | 4.1 | ||||||||||||
Minimum adjustment price | $ 7.1 | ||||||||||||||
Cash fee | 7.50% | ||||||||||||||
Cash commission | $ 375,000 | ||||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 55,148 | ||||||||||||||
Private Placement | Series A Convertible Preferred Stock [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Shares of common stock issued to a consultant for services to be rendered | 5,000 | ||||||||||||||
Initial conversion price | $ 0.68 | ||||||||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | ||||||||||||||
Private Placement | Minimum [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Percentage of ownership upon exercise of warrants | 4.99% | ||||||||||||||
Private Placement | Maximum [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Percentage of ownership upon exercise of warrants | 9.99% | ||||||||||||||
Private Placement | Purchase Agreements [Member] | Series A Convertible Preferred Stock [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Value of shares | $ 5,000,000 | ||||||||||||||
Initial conversion price | $ 0.68 | ||||||||||||||
Share price | $ 1,000 | ||||||||||||||
Proceeds from private placement | $ 4,400,000 | $ 4,400,000 | |||||||||||||
Private Placement | Pre Reverse Split [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Share price | $ 0.68 | ||||||||||||||
Exercise price of warrants | $ 0.82 | $ 0.82 | $ 0.68 | $ 0.68 | |||||||||||
Minimum adjustment price | $ 0.7125 | $ 0.7125 | |||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 551,471 |
Share Swap in purchase of XXTX'
Share Swap in purchase of XXTX's remaining minority interest (Details) - XXTX - shares | 1 Months Ended | |
Nov. 09, 2021 | Oct. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | 533,167 | 533,167 |
Pre Reverse Split [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | 5,331,667 | 5,331,667 |
EQUITY - Common stock issued fo
EQUITY - Common stock issued for consulting services (Details) - USD ($) | Nov. 03, 2021 | Oct. 22, 2021 | Dec. 31, 2022 | Mar. 31, 2022 | Nov. 09, 2021 | Mar. 31, 2021 |
Class of Warrant or Right [Line Items] | ||||||
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Common Stock issued as compensation | 7,693,040 | 6,186,783 | 4,978,073 | |||
Consulting Agreement With Jolly Good River Group Limited | ||||||
Class of Warrant or Right [Line Items] | ||||||
Service period for advisory services | 12 months | |||||
Shares of common stock issued to a consultant for services to be rendered | 100,000 | |||||
Common stock, par value (in dollar per share) | $ 0.0001 | |||||
Common Stock issued as compensation | 100,000 | |||||
Consulting Fee | $ 653,000 | |||||
Consulting Agreement With Jolly Good River Group Limited | Pre Reverse Split [Member] | ||||||
Class of Warrant or Right [Line Items] | ||||||
Shares of common stock issued to a consultant for services to be rendered | 1,000,000 | |||||
Common Stock issued as compensation | 1,000,000 |
EQUITY - 1-for- 10 shares rev_2
EQUITY - 1-for- 10 shares reverse split on common stock (Details) | 9 Months Ended | 12 Months Ended | |
Apr. 06, 2022 | Dec. 31, 2022 shares | Mar. 31, 2022 shares | |
Reverse stock split | 0.1 | ||
Additional Shares of Common Stock Round Up Adjustment Due to Retroactive Effect of 1-For-10 Reverse Stock Split | 8,402 | 8,402 | |
Subsequent event | |||
Reverse stock split | 0.1 |
EQUITY - Change of ownership in
EQUITY - Change of ownership interest in a subsidiary (Details) | Mar. 23, 2022 USD ($) |
Sichuan Senmiao's [ Member] | |
Equity interests purchased | 94.50% |
Total consideration | $ 0 |
Sichuan Senmiao's [ Member] | |
Ownership interest of parent | 94.50% |
Ownership interest of noncontrolling interest | 5.50% |
Change in a parent's ownership interest in a subsidiary | 366,604% |
Senmiao Consulting [Member] | |
Ownership interest terminated | 100% |
INCOME TAXES (Details)_2
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
INCOME TAXES | |||||
Current income tax expenses | $ 4,566 | $ 8,332 | |||
Deferred income tax expenses | $ 4,539 | $ 0 | $ 4,550 | 0 | 0 |
Total income tax expenses | $ 4,539 | $ 0 | $ 4,550 | $ 4,566 | $ 8,332 |
INCOME TAXES - Deferred Tax A_2
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Net operating loss carryforwards in the PRC | $ 2,732,507 | $ 2,315,793 | $ 415,533 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Less: valuation allowance | (1,500,000) | (1,230,000) | (800,000) |
Continuing Operations [Member] | |||
Net operating loss carryforwards in the PRC | 2,732,507 | 2,315,793 | 415,533 |
Net operating loss carryforwards in the U.S. | 1,508,215 | 1,234,789 | 754,502 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Less: valuation allowance | (4,372,497) | (3,579,711) | (1,171,280) |
Deferred tax assets, net | 0 | 0 | 0 |
Deferred tax liabilities: | |||
Capitalized intangible assets cost | 42,746 | 46,386 | 45,146 |
Deferred tax liabilities, net | 42,746 | 46,386 | 45,146 |
Discontinued Operations [Member] | |||
Net operating loss carryforwards in the PRC | 2,595,919 | 2,595,919 | 3,802,496 |
Allowance for doubtful accounts | 20,190 | ||
Less: valuation allowance | (2,595,919) | (2,595,919) | $ (3,822,686) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES - Additional inf_2
INCOME TAXES - Additional information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Loss Carryforwards | $ 10,500,000 | $ 8,500,000 | $ 1,700,000 |
Operating Loss Carryforwards Expiration Year | 2025 | 2024 | |
Net Operating Loss Included In Operating Loss Carryforwards | $ 400,000 | $ 2,300,000 | |
Deferred Tax Assets, Operating Loss Carryforwards | $ 7,100,000 | $ 5,900,000 | |
Deferred Tax Assets, Valuation Allowance, Percentage | 100% | 100% | 100% |
Valuation allowances for deferred tax assets | $ 1,500,000 | $ 1,230,000 | $ 800,000 |
Deferred Tax Assets on Allowance For Doubtful Account | 131,775 | 29,129 | 1,245 |
Net operating loss carryforwards in the PRC | 2,732,507 | 2,315,793 | 415,533 |
Allowance for doubtful accounts | $ 131,775 | $ 29,129 | 1,245 |
Effective Income Tax Rate Reconciliation, Percent | 80% | 80% | |
Continuing Operations [Member] | |||
Valuation allowances for deferred tax assets | $ 4,372,497 | $ 3,579,711 | 1,171,280 |
Deferred Tax Assets on Allowance For Doubtful Account | 131,775 | 29,129 | 1,245 |
Net operating loss carryforwards in the PRC | 2,732,507 | 2,315,793 | 415,533 |
Allowance for doubtful accounts | 131,775 | 29,129 | 1,245 |
Discontinued Operations [Member] | |||
Operating Loss Carryforwards | 10,300,000 | 10,300,000 | 15,300,000 |
Valuation allowances for deferred tax assets | 2,595,919 | 2,595,919 | 3,822,686 |
Deferred Tax Assets on Allowance For Doubtful Account | 20,190 | ||
Net operating loss carryforwards in the PRC | $ 2,595,919 | $ 2,595,919 | 3,802,496 |
Allowance for doubtful accounts | $ 20,190 | ||
State Administration of Taxation, China [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | 25% |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Valuation allowance on deferred income tax asset | (43.60%) | (17.20%) | |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 1.20% | (1.80%) | |
Effective Income Tax Rate Reconciliation, Percent | 80% | 80% | |
CHINA [Members] | |||
PRC statutory tax rate | 21% | 21% | |
Tax rate difference in other jurisdiction | 4% | 4% | |
Non-deductible expenses | (0.50%) | (2.40%) | |
Non-deductible impairments for intangibles and goodwill | 17.80% | (3.70%) | |
Effective Income Tax Rate Reconciliation, Percent | (0.10%) | (0.10%) |
CONCENTRATION (Details)_2
CONCENTRATION (Details) - item | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Concentration Risk [Line Items] | |||||
Number of suppliers | 3 | 2 | 2 | 3 | |
Continuing Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of suppliers | 3 | ||||
Discontinued Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Number of suppliers | 1 | 1 | 1 | ||
Revenue | Supplier Concentration Risk [Member] | Suppliers One [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 19.70% | 35.10% | 20.30% | 30.10% | |
Revenue | Supplier Concentration Risk [Member] | Suppliers One [Member] | Continuing Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 25.43% | ||||
Revenue | Supplier Concentration Risk [Member] | Suppliers One [Member] | Discontinued Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 18.10% | 17.40% | 18.18% | ||
Revenue | Supplier Concentration Risk [Member] | Supplier Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 12% | 19.80% | 12% | 18.10% | |
Revenue | Supplier Concentration Risk [Member] | Supplier Two [Member] | Continuing Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 14.97% | ||||
Revenue | Supplier Concentration Risk [Member] | Suppliers Three [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 11.80% | 16.90% | |||
Revenue | Supplier Concentration Risk [Member] | Suppliers Three [Member] | Continuing Operations [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of total cost of revenue | 14.17% |
RELATED PARTY TRANSACTIONS AN_8
RELATED PARTY TRANSACTIONS AND BALANCES - Amount due to related parties and affiliates (Details) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) item | ||
Total due to a stockholder | $ 17,360 | $ 18,886 | $ 48,795 | ||
Loan payable to related parties (i) | 114,425 | 9,897 | [1] | 182,281 | [1] |
Others | 2,812 | 1,785 | 170,546 | ||
Total due to related parties and affiliates | 117,237 | 11,682 | 352,827 | ||
Interest Free Loan Payable to Related Parties Current | 9,897 | $ 78,708 | |||
Number of related parties | item | 2 | ||||
Jun Wang [Member] | |||||
Total due to a stockholder | 17,360 | 18,886 | $ 48,795 | ||
Continuing Operations [Member] | |||||
Total due to related parties and affiliates | 11,682 | 82,909 | |||
Discontinued Operations [Member] | |||||
Total due to a stockholder | $ 17,360 | $ 18,886 | 48,795 | ||
Total due to related parties and affiliates | 269,918 | ||||
Interest Free Loan Payable to Related Parties Current | $ 103,574 | ||||
[1] As of March 31, 2022 and March 31, 2021, the balances represented borrowings from a related party, of which, $ 9,897 and $ 78,708 are unsecured, interest free and due on demand, respectively, from the Company’s continuing operations. In addition, as of March 31, 2021, the balances of $ 103,574 represented borrowings from two related parties, which are unsecured, interest free and due on demand, respectively, from the Company’s discontinued operations. |
RELATED PARTY TRANSACTIONS AN_9
RELATED PARTY TRANSACTIONS AND BALANCES - Additional information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction, Due from (to) Related Party | $ 7,298,208 | $ 24,311 | ||||||
Interest expense on related party transaction | $ 0 | $ 0 | $ 0 | $ 0 | 0 | |||
Due to Officers or Stockholders | 17,360 | 17,360 | 18,886 | 48,795 | ||||
Due to Related Parties Others | 2,812 | 2,812 | 1,785 | 170,546 | ||||
Operating lease right-of-use assets, net | 174,262 | $ 174,262 | $ 109,621 | 233,751 | ||||
Lessee Operating Lease Contract Period Description | November 1, 2018 to October 31, 2023 | November 1, 2018 to October 31, 2023 | ||||||
Advances to non-controlling shareholders | 18,882 | $ 18,882 | $ 19,874 | 15,261 | ||||
Operating Lease, Liability, Current | 104,075 | 104,075 | 50,177 | 109,813 | ||||
Operating Lease, Liability, Noncurrent | 97,350 | 97,350 | 47,910 | 95,886 | ||||
Outstanding balance | 117,237 | 117,237 | 11,682 | 352,827 | ||||
Jinkailong [Member] | ||||||||
Related Party Transaction, Due from (to) Related Party | 5,351,735 | 5,351,735 | 6,635,746 | |||||
Due to Related Parties Others | 2,812 | 2,812 | 1,785 | |||||
Sichuan Qihuaxin Automobiles [Member] | ||||||||
Maintenance Fees To Affiliates | 942,581 | |||||||
Sichuan Yousen Automobiles Maintenance Services Ltd [Member] | ||||||||
Maintenance Fees To Affiliates | 575,136 | |||||||
Xiang Hu [Member] | ||||||||
Proceeds from Related Party Debt | $ 955,000 | |||||||
Due to Officers or Stockholders | 18,886 | 2 | ||||||
Jun Wang [Member] | ||||||||
Proceeds from Related Party Debt | 159,000 | |||||||
Due to Officers or Stockholders | 48,795 | 800,000 | ||||||
Shareholders [Member] | ||||||||
Proceeds from Related Party Debt | $ 159,000 | |||||||
Operating lease, rent expense | 237,968 | 121,012 | ||||||
Hunan Dingchentai Investment Co [Member] | ||||||||
Operating lease, rent expense | 45,651 | 44,169 | ||||||
Operating Leases Annual Rental Payments | $ 44,250 | |||||||
Related Party One [Member] | ||||||||
Due to Related Parties Others | 4,201 | |||||||
Continuing Operations [Member] | ||||||||
Related Party Transaction, Due from (to) Related Party | 5,992,152 | 5,992,152 | ||||||
Operating lease right-of-use assets, net | 446,372 | 475,408 | ||||||
Operating Lease, Liability, Current | 246,516 | 161,818 | ||||||
Operating Lease, Liability, Noncurrent | 211,953 | 285,371 | ||||||
Outstanding balance | 11,682 | 82,909 | ||||||
Continuing Operations [Member] | Hunan Dingchentai Investment Co [Member] | ||||||||
Operating lease right-of-use assets, net | 69,534 | 104,959 | ||||||
Operating Lease, Liability, Current | 81,908 | |||||||
Operating Lease, Liability, Noncurrent | 56,178 | |||||||
Continuing Operations [Member] | Four Other Related Parties [Member] | ||||||||
Due to Related Parties Others | 166,345 | |||||||
Discontinued Operations [Member] | ||||||||
Due to Officers or Stockholders | $ 17,360 | $ 17,360 | 18,886 | 48,795 | ||||
Outstanding balance | $ 269,918 | |||||||
Discontinued Operations [Member] | Hunan Dingchentai Investment Co [Member] | ||||||||
Operating Lease, Liability, Current | 84,265 | |||||||
Operating Lease, Liability, Noncurrent | $ 14,943 |
LEASES - Lease expense (Details
LEASES - Lease expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Finance lease cost | ||||||
Amortization of leased asset | $ 579,209 | $ 635,036 | $ 955,443 | $ 398,292 | ||
Total lease expenses | $ 796,987 | $ 1,676,023 | 2,352,191 | 4,895,810 | 6,487,477 | 5,269,993 |
Continuing Operations [Member] | ||||||
Finance lease cost | ||||||
Interest on lease liabilities | 7,602 | 13,612 | 15,903 | 44,369 | 55,844 | 46,518 |
Total lease expenses | 796,987 | 686,450 | 2,352,191 | 1,655,424 | 2,336,505 | 521,813 |
Discontinued Operations [Member] | ||||||
Finance lease cost | ||||||
Interest on lease liabilities | 84,307 | 269,397 | 277,366 | 686,684 | ||
Total lease expenses | 989,573 | 3,240,386 | 4,150,972 | 4,748,180 | ||
Selling, General and Administrative Expenses [Member] | ||||||
Operating Lease Cost | ||||||
Lease expenses | 88,493 | 165,263 | 313,753 | 434,733 | 585,719 | 396,276 |
Finance lease cost | ||||||
Amortization of leased asset | 974,422 | 1,656,336 | ||||
Cost of Sales [Member] | ||||||
Operating Lease Cost | ||||||
Automobile lease costs | 564,646 | 501,847 | 1,622,601 | 1,205,011 | 1,749,959 | 42,306 |
Finance lease cost | ||||||
Amortization of leased asset | 73,991 | 834,807 | 203,044 | 2,419,695 | 2,844,167 | 2,441,873 |
Interest Expenses on Finance Leases [Member] | ||||||
Finance lease cost | ||||||
Interest on lease liabilities | $ 7,602 | $ 97,919 | $ 15,903 | $ 313,766 | $ 333,210 | $ 733,202 |
LEASES - Lease obligations in_2
LEASES - Lease obligations in future periods (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 |
Operating lease | ||
Twelve months ending June 30, 2023 | $ 386,942 | |
Twelve months ending June 30, 2024 | 194,311 | |
Twelve months ending June 30, 2025 | 64,268 | |
Twelve months ending June 30, 2026 | 52,585 | |
Total lease payments | $ 439,393 | 698,106 |
Less: discount | (22,205) | (42,342) |
Present value of lease liabilities | 417,188 | 655,764 |
Finance lease | ||
Twelve months ending June 30, 2023 | 317,499 | |
Twelve months ending June 30, 2024 | 1,403 | |
Total lease payments | 750,541 | 318,902 |
Less: discount | (58,657) | (12,969) |
Present value of lease liabilities | 691,884 | 305,933 |
Lease payments | ||
Twelve months ending December 31, 2023 | 365,365 | 704,441 |
Twelve months ending December 31, 2024 | 265,376 | 195,714 |
Twelve months ending December 31, 2025 | 14,982 | 64,268 |
Twelve months ending December 31, 2026 | 52,585 | |
Total lease payments | 1,189,934 | 1,017,008 |
Less: discount | (80,862) | (55,311) |
Present value of lease liabilities | 1,109,072 | 961,697 |
Outstanding balance of operating lease payments | $ 215,763 | $ 557,677 |
LEASES - Additional Informati_2
LEASES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Lease, Weighted Average Discount Rate, Percent | 6% | 6% | 6% | |||
Remaining operating lease term | 2 years 4 months 28 days | 2 years 4 months 28 days | 1 year 1 month 28 days | |||
Remaining finance lease term | 2 years 9 months | 2 years 9 months | 1 year 1 month 2 days | |||
Continuing Operations [Member] | ||||||
Interest expense on finance leases | $ 7,602 | $ 13,612 | $ 15,903 | $ 44,369 | $ 55,844 | $ 46,518 |
Continuing Operations [Member] | Operating Lease for Automobiles [Member] | ||||||
Operating lease expenses | 564,646 | 417,519 | 1,622,601 | 941,818 | 1,390,767 | 42,306 |
Continuing Operations [Member] | Operating Lease from Offices and Showroom [Member] | ||||||
Operating lease expenses | $ 88,493 | 141,208 | $ 313,753 | 367,690 | 460,209 | 245,376 |
Discontinued Operations [Member] | ||||||
Interest expense on finance leases | 84,307 | 269,397 | 277,366 | 686,684 | ||
Discontinued Operations [Member] | Operating Lease for Automobiles [Member] | ||||||
Operating lease expenses | 84,328 | 263,193 | 359,192 | 0 | ||
Discontinued Operations [Member] | Operating Lease from Offices and Showroom [Member] | ||||||
Operating lease expenses | $ 24,055 | $ 67,043 | $ 125,510 | $ 150,900 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 24, 2020 USD ($) item | Sep. 18, 2020 USD ($) | Sep. 18, 2020 CNY (¥) | May 25, 2018 USD ($) item | May 25, 2018 CNY (¥) item | Jul. 31, 2020 USD ($) | Jul. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Mar. 31, 2022 USD ($) item | Mar. 31, 2021 USD ($) | Dec. 31, 2022 CNY (¥) item | Sep. 23, 2022 item | Mar. 31, 2022 CNY (¥) item | Feb. 22, 2021 item | Dec. 24, 2020 CNY (¥) item | Oct. 14, 2020 USD ($) | Oct. 14, 2020 CNY (¥) | |
Total number of automobiles | item | 300 | 200 | 300 | 100 | 200 | 200 | ||||||||||||
Loss Contingency Accrual | $ 46,641 | $ 800,000 | ||||||||||||||||
Loss Contingency, Fair Value of Collateral | 700,000 | |||||||||||||||||
Jinkailong [Member] | ||||||||||||||||||
Total number of automobiles | item | 75 | 75 | ||||||||||||||||
Loss Contingency Accrual | 4,800,000 | 6,300,000 | ||||||||||||||||
Loss Contingency, Fair Value of Collateral | $ 2,800,000 | $ 4,200,000 | ||||||||||||||||
Loss Contingency, Percentage of Contingent Liabilities | 59% | 66% | ||||||||||||||||
Loss contingency, amount past due including interest to financial institutions | $ 3,500,000 | $ 4,800,000 | ||||||||||||||||
Loss contingency, amount of interest past due to financial institutions | $ 281,000 | $ 286,000 | ||||||||||||||||
Amount payable for default mobiles for releasing the 75 automobiles | $ 635,000 | ¥ 4,026,594 | ||||||||||||||||
Period for monthly installments over which default amount to be paid | 35 months | |||||||||||||||||
Amount of automobile loans to be payable for releasing the frozen bank accounts | $ 94,000 | ¥ 600,000 | ||||||||||||||||
Percentage of equity interest ownership | 35% | 35% | 35% | 35% | ||||||||||||||
Maximum amount of obligation if liquidated | $ 507,000 | $ 570,000 | ¥ 3,500,000 | ¥ 3,500,000 | ||||||||||||||
Liabilities (in percent) | 35% | 35% | ||||||||||||||||
Master Contact [Member] | Chengdu Industrial Impawn Co [Member] | ||||||||||||||||||
Loss contingency, amount past due including interest to financial institutions | $ 882,000 | $ 1,032,000 | ||||||||||||||||
Maximum loans to be provided | $ 2,900,000 | ¥ 20,000,000 | ||||||||||||||||
Number of guarantors with whom guarantee contacts are signed | item | 7 | 7 | ||||||||||||||||
Amount of loans used and re-loaned to automobile purchasers | $ 1,003,000 | ¥ 7,019,652 | ||||||||||||||||
Interest and penalty sought | $ 14,330 | ¥ 100,300 | ||||||||||||||||
Total outstanding including interest and penalty | $ 1,428,000 | ¥ 992,728 | ||||||||||||||||
Amount of cash in bank accounts | $ 25,050 | ¥ 175,335 | ||||||||||||||||
Settlement agreement | Chengdu Industrial Impawn Co [Member] | Jinkailong [Member] | ||||||||||||||||||
Maximum contingent liabilities related to loans | $ 55,000 | ¥ 350,000 | ||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Loss Contingency, Percentage of Contingent Liabilities | 90% | |||||||||||||||||
Continuing Operations [Member] | ||||||||||||||||||
Loss contingency accrual, provision | $ 7,284 | $ 15,005 | $ 8,000 | $ 40,504 | ||||||||||||||
Discontinued Operations [Member] | ||||||||||||||||||
Loss contingency accrual, provision | $ 11,140 | $ 716 | $ 158,100 |
SEGMENT INFORMATION (Details)_2
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | $ 1,740,920 | $ 3,543,049 | $ 6,323,918 | $ 8,249,033 | $ 11,743,218 | $ 6,167,687 |
Income (loss) before income taxes | (986,269) | 290,773 | (1,922,153) | (5,201,375) | (5,601,579) | (7,467,093) |
Net income (loss) | (971,341) | 155,459 | (1,721,978) | (5,673,230) | (536,624) | (10,360,058) |
Automobile Transactions And Financing Services [Member] | ||||||
Revenues | 930,625 | 2,525,893 | 3,353,400 | 6,631,579 | 9,077,761 | 5,257,280 |
Loss from operations | (999,958) | (1,289,884) | (2,854,231) | (3,606,376) | (3,957,831) | (6,126,494) |
Income (loss) before income taxes | (700,414) | (1,069,871) | (2,071,478) | (3,520,754) | (4,682,007) | (7,009,570) |
Net income (loss) | (700,414) | (1,074,410) | (2,071,478) | (3,525,304) | (4,686,573) | (7,024,200) |
Online Ride-Hailing Platform Services [Member] | ||||||
Revenues | 810,295 | 1,017,156 | 2,970,518 | 1,617,454 | 2,665,457 | 903,254 |
Loss from operations | (69,672) | (629,177) | (262,097) | (6,358,532) | (6,962,113) | (1,894,971) |
Income (loss) before income taxes | (56,667) | (792,769) | (253,477) | (6,649,325) | (7,438,693) | (1,703,551) |
Net income (loss) | (56,667) | (792,769) | (253,477) | (6,649,325) | (7,438,693) | (1,703,551) |
Unallocated [Member] | ||||||
Loss from operations | (259,746) | (979,941) | (1,238,849) | (1,813,645) | (3,179,759) | (2,163,082) |
Income (loss) before income taxes | (229,188) | 1,735,058 | 402,802 | 2,549,947 | 3,771,912 | (3,872,915) |
Net income (loss) | (229,188) | 1,735,058 | 402,802 | 2,549,947 | 3,771,912 | (3,872,912) |
Consolidated [Member] | ||||||
Revenues | 1,740,920 | 3,543,049 | 6,323,918 | 8,249,033 | 11,743,218 | 6,167,687 |
Loss from operations | (1,329,376) | (2,899,002) | (4,355,177) | (11,778,553) | (14,099,703) | (10,265,832) |
Income (loss) before income taxes | (986,269) | (127,582) | (1,922,153) | (7,620,132) | (8,348,788) | (12,648,012) |
Net income (loss) | $ (986,269) | (132,121) | $ (1,922,153) | (7,624,682) | (8,353,354) | (12,662,639) |
Discontinued P2p Business [Member] | ||||||
Revenues | 7,153 | |||||
Loss from operations | (81,285) | |||||
Income (loss) before income taxes | (61,976) | |||||
Net income (loss) | (61,976) | |||||
Continuing Operations [Member] | ||||||
Revenues | 1,660,119 | 3,152,592 | 4,913,102 | 2,188,840 | ||
Loss from operations | (2,508,292) | (9,596,151) | (11,561,988) | (6,011,429) | ||
Income (loss) before income taxes | 290,773 | (5,201,375) | (5,601,579) | (7,467,093) | ||
Net income (loss) | 286,234 | (5,205,925) | (5,606,145) | (7,475,425) | ||
Discontinued Operations [Member] | ||||||
Revenues | 1,882,930 | 5,096,441 | 6,830,116 | 3,978,847 | ||
Loss from operations | (390,710) | (2,182,402) | (2,537,715) | (4,254,403) | ||
Income (loss) before income taxes | (418,355) | (2,418,757) | (2,747,209) | (5,180,919) | ||
Net income (loss) | $ (418,355) | $ (2,418,757) | $ (2,747,209) | $ (5,187,214) |
SEGMENT INFORMATION - Additio_2
SEGMENT INFORMATION - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Assets | $ 15,538,593 | $ 19,878,117 | $ 22,303,279 |
Automobile Transactions And Financing Services [Member] | |||
Assets | 14,004,591 | 12,022,387 | 8,777,138 |
Automobile Transactions And Financing Services [Member] | Continuing Operations [Member] | |||
Assets | 7,450,698 | ||
Automobile Transactions And Financing Services [Member] | Discontinued Operations [Member] | |||
Assets | 398,940 | ||
Online Ride-Hailing Platform Services [Member] | |||
Assets | 816,024 | 7,003,867 | 3,254,822 |
Unallocated [Member] | |||
Assets | $ 717,978 | $ 851,863 | $ 2,421,681 |
PARENT-ONLY FINANCIALS - Conden
PARENT-ONLY FINANCIALS - Condensed Balance Sheets (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2019 | |||
Current assets: | |||||||
Cash and cash equivalents | $ 1,537,609 | $ 1,185,221 | $ 4,340,529 | ||||
Due from subsidiaries | 659,299 | 682,335 | 0 | ||||
Prepayments, other receivables and other assets, net | 1,362,817 | 2,713,208 | 4,298,626 | ||||
Total Current Assets | 3,944,641 | 5,599,538 | 10,893,006 | ||||
Other assets | |||||||
Total Assets | 15,538,593 | 19,878,117 | 22,303,279 | ||||
Current liabilities: | |||||||
Accrued expenses and other liabilities | 2,715,209 | 2,444,367 | 2,873,227 | ||||
Derivative liabilities | 572,021 | 2,215,204 | 1,278,926 | ||||
Total current liabilities | 4,765,180 | 6,165,811 | 16,778,944 | ||||
Other Liabilities | |||||||
Total Liabilities | 5,246,839 | 6,488,379 | 19,730,709 | ||||
Commitments and contingencies | |||||||
Mezzanine Equity (redeemable) | |||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding at March 31, 2022 and 2021, respectively), net of issuance costs of $118,344 | 285,802 | 820,799 | 0 | ||||
Stockholders' Equity | |||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,178,379 and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)* | 782 | [1] | 630 | [1] | 498 | [2] | |
Accumulated deficit | (36,323,523) | (34,601,545) | (34,064,921) | ||||
Accumulated other comprehensive loss | (1,327,692) | (109,454) | (838,671) | ||||
Total Senmiao Technology Limited Stockholders' Equity | 5,688,979 | 8,092,664 | 5,856,713 | ||||
Total liabilities, mezzanine equity and equity | $ 15,538,593 | 19,878,117 | 22,303,279 | ||||
Parent Company [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 116,613 | 1,609,778 | $ 2,590 | ||||
Due from subsidiaries | 12,587,739 | 8,170,057 | |||||
Prepayments, other receivables and other assets, net | 135,252 | 136,901 | |||||
Total Current Assets | 12,839,604 | 9,916,736 | |||||
Other assets | |||||||
Intangible assets | 600,000 | 675,000 | |||||
Total Assets | 13,439,604 | 10,591,736 | |||||
Current liabilities: | |||||||
Accrued expenses and other liabilities | 0 | 0 | |||||
Derivative liabilities | 2,215,204 | 1,278,926 | |||||
Total current liabilities | 2,215,204 | 1,278,926 | |||||
Other Liabilities | |||||||
Excess of investments in subsidiaries | 2,310,937 | 3,456,097 | |||||
Total Liabilities | 4,526,141 | 4,735,023 | |||||
Commitments and contingencies | |||||||
Mezzanine Equity (redeemable) | |||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 and 0 shares issued and outstanding at March 31, 2022 and 2021, respectively), net of issuance costs of $118,344 | 820,799 | 0 | |||||
Stockholders' Equity | |||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,178,379 and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)* | 630 | 498 | |||||
Additional paid-in capital | 42,803,033 | 40,759,807 | |||||
Accumulated deficit | (34,601,545) | (34,064,921) | |||||
Accumulated other comprehensive loss | (109,454) | (838,671) | |||||
Total Senmiao Technology Limited Stockholders' Equity | 8,092,664 | 5,856,713 | |||||
Total liabilities, mezzanine equity and equity | $ 13,439,604 | $ 10,591,736 | |||||
[1]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022[2]Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022 |
PARENT-ONLY FINANCIALS - Cond_2
PARENT-ONLY FINANCIALS - Condensed Balance Sheets (Parenthetical) (Details) - USD ($) | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Common Stock, Shares, Issued | 7,693,040 | 6,186,783 | 4,978,073 | |
Common Stock, Shares, Outstanding | 7,682,908 | 6,186,783 | 4,978,073 | |
Parent Company [Member] | ||||
Preferred Stock, Shares Issued | 5,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||
Common Stock, Shares, Issued | 6,186,783 | 4,978,073 | ||
Common Stock, Shares, Outstanding | 6,186,783 | 4,978,073 | ||
Series A Convertible Preferred Stock [Member] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Preferred Stock, Shares Authorized | 5,000 | 5,000 | 5,000 | |
Preferred Stock, Shares Issued | 1,741 | 5,000 | 0 | |
Preferred Stock, Shares Outstanding | 1,741 | 5,000 | 0 | |
Net of issuance costs | $ 118,344 | $ 118,344 | ||
Series A Convertible Preferred Stock [Member] | Parent Company [Member] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | |||
Preferred Stock, Shares Authorized | 5,000 | |||
Preferred Stock, Shares Issued | 5,000 | |||
Net of issuance costs | $ 118,344 |
PARENT-ONLY FINANCIALS - Cond_3
PARENT-ONLY FINANCIALS - Condensed Statements of Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
General and administrative expenses | $ (1,385,580) | $ (2,701,921) | $ (4,832,658) | $ (7,102,107) | $ (9,525,408) | $ (5,905,579) | ||||
Change in fair value of derivative liabilities | 30,557 | 3,536,859 | 1,641,650 | 5,185,309 | 6,951,482 | (1,710,415) | ||||
Issuance cost incurred for issuing series A convertible preferred stock | (821,892) | 0 | (821,892) | (821,892) | 0 | |||||
Net loss | (986,269) | $ (1,179,804) | $ 243,920 | (132,121) | $ (121,925) | $ (7,370,636) | (1,922,153) | (7,624,682) | 2,621,747 | (12,662,639) |
Foreign currency translation adjustment | 328,208 | $ (719,920) | $ (785,653) | 70,638 | $ (3,608) | $ (18,572) | (1,177,365) | 48,458 | 64,470 | (314,669) |
Comprehensive loss attributable to stockholders | $ (658,061) | $ (61,483) | $ (3,099,518) | $ (7,576,224) | 2,686,217 | (12,977,308) | ||||
Parent Company [Member] | ||||||||||
General and administrative expenses | (2,339,378) | (2,070,303) | ||||||||
Other Income, net | 16,189 | 582 | ||||||||
Change in fair value of derivative liabilities | 6,951,482 | (1,710,415) | ||||||||
Issuance cost incurred for issuing series A convertible preferred stock | (821,892) | 0 | ||||||||
Equity of losses in subsidiaries | (4,343,025) | (6,579,922) | ||||||||
Net loss | (536,624) | (10,360,058) | ||||||||
Foreign currency translation adjustment | 80,321 | (331,193) | ||||||||
Comprehensive loss attributable to stockholders | $ (456,303) | $ (10,691,251) |
PARENT-ONLY FINANCIALS - Cond_4
PARENT-ONLY FINANCIALS - Condensed Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities: | ||||||||||
Net loss | $ (986,269) | $ (1,179,804) | $ 243,920 | $ (132,121) | $ (121,925) | $ (7,370,636) | $ (1,922,153) | $ (7,624,682) | $ 2,621,747 | $ (12,662,639) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
Amortization expense | 128,538 | 104,829 | 160,831 | 107,765 | ||||||
Issuance cost incurred for issuing series A convertible preferred stock | $ 821,892 | 0 | 821,892 | 821,892 | 0 | |||||
Stock compensation expense | 0 | 653,000 | 653,000 | 445,000 | ||||||
Change in fair value of derivative liabilities | (1,641,650) | (5,185,309) | (6,951,482) | 1,710,415 | ||||||
Change in operating assets and liabilities | ||||||||||
Prepayments, receivables and other assets | 1,115,661 | 683,439 | 28,254 | (1,366,724) | ||||||
Accrued expenses and other liabilities | 639,657 | (664,848) | (377,965) | 2,123,010 | ||||||
Net Cash Used in Operating Activities | 249,287 | (6,459,172) | (9,159,281) | (3,936,067) | ||||||
Cash Flows from Investing Activities: | ||||||||||
Net Cash Used in Investing Activities | 287,146 | (3,538,102) | (3,477,125) | (2,510,862) | ||||||
Cash Flows from Financing Activities: | ||||||||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | 0 | 5,771,053 | 5,771,053 | 5,743,905 | ||||||
Net proceeds from issuance of common stock and warrants in an underwritten public offering | 0 | 5,261,297 | ||||||||
Net proceeds from issuance of common stock upon warrants exercised | 0 | 22,015 | 22,015 | 683,046 | ||||||
Net proceeds from exercise of underwriters' over-allotment option | 0 | 837,000 | ||||||||
Net Cash Provided by Financing Activities | (101,372) | 8,177,287 | 9,755,410 | 10,259,777 | ||||||
Net increase (decrease) in cash and cash equivalents | 352,388 | (1,646,364) | (3,262,854) | 3,604,048 | ||||||
Cash and cash equivalents, beginning of year | 1,185,221 | 4,340,529 | 1,185,221 | 4,340,529 | 4,340,529 | |||||
Cash and cash equivalents, end of year | $ 1,537,609 | 1,537,609 | 1,185,221 | 4,340,529 | ||||||
Non-cash Transaction in Investing and Financing Activities | ||||||||||
Allocation of fair value of derivative liabilities for issuance of common stock proceeds | 0 | 7,933,434 | 7,932,341 | 997,193 | ||||||
Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised | 0 | 45,674 | 45,674 | 1,771,213 | ||||||
Parent Company [Member] | ||||||||||
Cash Flows from Operating Activities: | ||||||||||
Net loss | (536,624) | (10,360,058) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
Equity of loss of subsidiaries | 4,343,025 | 6,579,922 | ||||||||
Amortization expense | 75,000 | 75,000 | ||||||||
Issuance cost incurred for issuing series A convertible preferred stock | 821,892 | 0 | ||||||||
Stock compensation expense | 653,000 | 445,000 | ||||||||
Change in fair value of derivative liabilities | (6,951,482) | 1,710,415 | ||||||||
Change in operating assets and liabilities | ||||||||||
Prepayments, receivables and other assets | 1,651 | (44,526) | ||||||||
Accrued expenses and other liabilities | 175,008 | (65,495) | ||||||||
Net Cash Used in Operating Activities | (1,418,530) | (1,659,742) | ||||||||
Cash Flows from Investing Activities: | ||||||||||
Working capital contribution for subsidiaries | (5,749,950) | (3,600,000) | ||||||||
Net Cash Used in Investing Activities | (5,749,950) | (3,600,000) | ||||||||
Cash Flows from Financing Activities: | ||||||||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | 5,771,053 | 5,743,905 | ||||||||
Net proceeds from issuance of common stock and warrants in an underwritten public offering | 0 | 5,261,297 | ||||||||
Net proceeds from issuance of common stock upon warrants exercised | 22,015 | 683,046 | ||||||||
Net proceeds from exercise of underwriters' over-allotment option | 0 | 837,000 | ||||||||
Net proceeds from issuance of series A convertible preferred stock and warrants in a private placement offering | 4,369,937 | |||||||||
Borrowings to subsidiaries | (4,487,690) | (5,658,318) | ||||||||
Net Cash Provided by Financing Activities | 5,675,315 | 6,866,930 | ||||||||
Net increase (decrease) in cash and cash equivalents | (1,493,165) | 1,607,188 | ||||||||
Cash and cash equivalents, beginning of year | $ 116,613 | $ 1,609,778 | $ 116,613 | $ 1,609,778 | 1,609,778 | |||||
Cash and cash equivalents, end of year | 116,613 | 1,609,778 | ||||||||
Supplemental Cash Flows Information: | ||||||||||
Cash paid for interest expense | 0 | 0 | ||||||||
Cash paid for income tax | 0 | 0 | ||||||||
Non-cash Transaction in Investing and Financing Activities | ||||||||||
Prepayment in exchange of intangible assets | 0 | 0 | ||||||||
Allocation of fair value of derivative liabilities for issuance of common stock proceeds | 7,932,341 | 997,193 | ||||||||
Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised | 45,674 | 1,771,213 | ||||||||
Issuance of restricted stock units from accrued expenses and other liabilities | $ 0 | $ 0 |
PARENT-ONLY FINANCIALS - Restri
PARENT-ONLY FINANCIALS - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | Oct. 29, 2021 | Oct. 29, 2020 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 127,273 | |
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 140,000 | |
RSUs vested | 127,273 | 12,727 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 9,545 | |
Pre Reverse Split [Member] | ||
RSUs vested | 127,273 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 95,457 |
PARENT-ONLY FINANCIALS - Regist
PARENT-ONLY FINANCIALS - Registered Direct Offering (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Oct. 29, 2021 shares | May 13, 2021 USD ($) | May 11, 2021 USD ($) $ / shares | Feb. 10, 2021 USD ($) | Feb. 08, 2021 USD ($) $ / shares shares | Oct. 29, 2020 shares | Aug. 04, 2020 shares | Dec. 20, 2019 director $ / shares | Jul. 21, 2019 USD ($) $ / shares shares | Apr. 21, 2019 shares | Apr. 20, 2019 shares | Jun. 30, 2019 USD ($) | Mar. 31, 2021 shares | Nov. 30, 2021 $ / shares | Aug. 31, 2020 $ / shares | Aug. 18, 2020 $ / shares | Aug. 07, 2020 $ / shares | Jun. 21, 2020 shares | Aug. 15, 2019 $ / shares | Aug. 12, 2019 $ / shares | Aug. 11, 2019 $ / shares | Jun. 21, 2019 shares | Apr. 15, 2019 USD ($) | |
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Sale Of Aggregate Principal Amount Of Our Equity | $ | $ 80,000,000 | ||||||||||||||||||||||
Shares Issued, Price Per Share | $ 33.8 | ||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 6,000,000 | ||||||||||||||||||||||
Net Proceeds From Issuance Of Stock | $ | $ 5,100,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 178,136 | 1,781,360 | |||||||||||||||||||||
Maximum adjustment price | $ 15 | ||||||||||||||||||||||
Quotient Percentage | 100% | ||||||||||||||||||||||
Number of lowest volume weighted average price | director | 5 | ||||||||||||||||||||||
Original exercise price | $ 0.82 | ||||||||||||||||||||||
Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Shares Issued, Price Per Share | $ 3.38 | ||||||||||||||||||||||
Maximum adjustment price | $ 1.50 | ||||||||||||||||||||||
February 2021 Registered Direct Offering | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 13.8 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 38,044 | ||||||||||||||||||||||
Cash fee | 7.50% | ||||||||||||||||||||||
Net proceeds | $ | $ 5,700,000 | ||||||||||||||||||||||
Offering expenses payable | $ | $ 60,000 | ||||||||||||||||||||||
February 2021 Registered Direct Offering | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 1.38 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 380,435 | ||||||||||||||||||||||
February 2021 Registered Direct Offering | LLC and Axiom Capital Management, Inc | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 17.25 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 15,218 | ||||||||||||||||||||||
February 2021 Registered Direct Offering | LLC and Axiom Capital Management, Inc | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 1.725 | ||||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 152,174 | ||||||||||||||||||||||
Offering | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,200,000 | ||||||||||||||||||||||
Offering | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 12,000,000 | ||||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Restricted stock units approved for issuance | shares | 127,273 | ||||||||||||||||||||||
RSUs vested | shares | 127,273 | 12,727 | |||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
RSUs vested | shares | 127,273 | ||||||||||||||||||||||
SeriesWarrants [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Shares Issued, Price Per Share | $ 5 | ||||||||||||||||||||||
Original exercise price | 15 | $ 37.2 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 133,602 | 133,603 | |||||||||||||||||||||
SeriesWarrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Shares Issued, Price Per Share | $ 0.50 | ||||||||||||||||||||||
Original exercise price | $ 1.50 | $ 3.72 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 1,336,021 | 1,336,021 | |||||||||||||||||||||
Series B Warrants [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 111 | ||||||||||||||||||||||
Original exercise price | $ 0.001 | $ 37.2 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 111,632 | 111,632 | 111,632 | ||||||||||||||||||||
Series B Warrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 0.0001 | $ 3.72 | |||||||||||||||||||||
Class of warrant number of securities called by warrants | shares | 1,116,320 | 1,116,320 | 1,116,320 | ||||||||||||||||||||
May 2021 Registered Direct Offering | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 5,800,000 | $ 5,800,000 | |||||||||||||||||||||
Original exercise price | $ 10.5 | ||||||||||||||||||||||
Warrants and Rights Outstanding, Term | 5 years | ||||||||||||||||||||||
May 2021 Registered Direct Offering | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Shares Issued, Price Per Share | 0.1 | ||||||||||||||||||||||
Original exercise price | $ 1.05 | ||||||||||||||||||||||
Placement agent warrants [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 5 | $ 37.2 | |||||||||||||||||||||
Placement agent warrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Original exercise price | $ 0.50 | $ 3.72 | |||||||||||||||||||||
FT Global Capital, Inc. | May 2021 Registered Direct Offering | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Cash fee | 7.50% | ||||||||||||||||||||||
Placement agent warrants [Member] | May 2021 Registered Direct Offering | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Cash fee | 7.50% | ||||||||||||||||||||||
Common Stock [Member] | Series B Warrants [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 111,319 | ||||||||||||||||||||||
Common Stock [Member] | Series B Warrants [Member] | Pre Reverse Split [Member] | |||||||||||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,113,188 |
PARENT-ONLY FINANCIALS - Underw
PARENT-ONLY FINANCIALS - Underwritten Public Offering and Exercise of the Over-Allotment Option (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||||||||||
Nov. 07, 2021 | Aug. 13, 2020 | Aug. 06, 2020 | Aug. 04, 2020 | Apr. 21, 2019 | Apr. 20, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Nov. 10, 2021 | Jul. 21, 2019 | |
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 178,136 | 1,781,360 | ||||||||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | $ 0 | $ 5,771,053 | $ 5,771,053 | $ 5,743,905 | ||||||||
Price per share | $ 33.8 | |||||||||||
Pre Reverse Split [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Price per share | $ 3.38 | |||||||||||
Offering | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 1,200,000 | |||||||||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | $ 5,300,000 | |||||||||||
Offering | Pre Reverse Split [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 12,000,000 | |||||||||||
Over-Allotment option | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 180,000 | 180,000 | ||||||||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | $ 800,000 | |||||||||||
Price per share | $ 5 | |||||||||||
Over-Allotment option | Securities sold except to Excluded Investors | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Underwriting discount (as a percent) | 7% | |||||||||||
Over-Allotment option | If securities are sold to Excluded Investors | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Underwriting discount (as a percent) | 6% | |||||||||||
Over-Allotment option | Pre Reverse Split [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 1,800,000 | 1,800,000 | ||||||||||
Price per share | $ 0.50 | |||||||||||
Private Placement [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 55,148 | |||||||||||
Warrants expected to be issued | 56,800 | |||||||||||
Warrants and Rights Outstanding, Term | 5 years | 5 years | ||||||||||
Exercise price of warrants (as a percent) | 125% | |||||||||||
Private Placement [Member] | Pre Reverse Split [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 551,471 | |||||||||||
Warrants expected to be issued | 568,000 |
PARENT-ONLY FINANCIALS - May 20
PARENT-ONLY FINANCIALS - May 2021 Registered Direct Offering (Details) - USD ($) | Feb. 10, 2021 | Feb. 08, 2021 | Jul. 21, 2019 | Dec. 31, 2022 | Mar. 31, 2022 | Nov. 30, 2021 | Mar. 31, 2021 | Aug. 31, 2020 | Aug. 18, 2020 |
Class of Warrant or Right [Line Items] | |||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Net proceeds from offering | $ 6,000,000 | ||||||||
Exercise price of warrants | $ 0.82 | ||||||||
February 2021 Registered Direct Offering | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Cash fee | 7.50% | ||||||||
Net proceeds | $ 5,700,000 | ||||||||
Offering expenses payable | $ 60,000 | ||||||||
Exercise price of warrants | $ 13.8 | ||||||||
February 2021 Registered Direct Offering | LLC and Axiom Capital Management, Inc | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Exercise price of warrants | $ 17.25 | ||||||||
Placement agent warrants [Member] | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Exercise price of warrants | $ 5 | $ 37.2 |
PARENT-ONLY FINANCIALS - Privat
PARENT-ONLY FINANCIALS - Private Placements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Nov. 10, 2021 | Nov. 09, 2021 | Nov. 08, 2021 | Nov. 07, 2021 | Apr. 21, 2019 | Apr. 20, 2019 | Dec. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2022 | Aug. 09, 2022 | Apr. 06, 2022 | Nov. 30, 2021 | Nov. 06, 2021 | Mar. 31, 2021 | Aug. 13, 2020 | |
EQUITY | |||||||||||||||
Value of shares | $ 653,000 | $ 653,000 | |||||||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Threshold percentage on closing bid price | 85% | ||||||||||||||
Exercise price of warrants | $ 0.82 | ||||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 178,136 | 1,781,360 | |||||||||||||
Private Placement | |||||||||||||||
EQUITY | |||||||||||||||
Shares of common stock issued to a consultant for services to be rendered | 5,000 | ||||||||||||||
Initial conversion price | $ 2 | $ 4.10 | |||||||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | ||||||||||||||
Share price | $ 6.8 | ||||||||||||||
Threshold for adjusted conversion price | $ 0.41 | ||||||||||||||
Threshold percentage on closing bid price | 85% | ||||||||||||||
Term of the warrants | 5 years | 5 years | |||||||||||||
Commencement period for warrants to become exercisable | 6 months 1 day | ||||||||||||||
Exercise price of warrants | $ 8.2 | $ 6.8 | 4.1 | ||||||||||||
Minimum adjustment price | $ 7.1 | ||||||||||||||
Cash fee | 7.50% | ||||||||||||||
Cash commission | $ 375,000 | ||||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 55,148 | ||||||||||||||
Private Placement | Series A Convertible Preferred Stock [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Shares of common stock issued to a consultant for services to be rendered | 5,000 | ||||||||||||||
Initial conversion price | $ 0.68 | ||||||||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | ||||||||||||||
Private Placement | Minimum [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Percentage of ownership upon exercise of warrants | 4.99% | ||||||||||||||
Private Placement | Maximum [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Percentage of ownership upon exercise of warrants | 9.99% | ||||||||||||||
Private Placement | Purchase Agreements [Member] | Series A Convertible Preferred Stock [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Value of shares | $ 5,000,000 | ||||||||||||||
Initial conversion price | $ 0.68 | ||||||||||||||
Share price | $ 1,000 | ||||||||||||||
Proceeds from private placement | $ 4,400,000 | $ 4,400,000 | |||||||||||||
Private Placement | Pre Reverse Split [Member] | |||||||||||||||
EQUITY | |||||||||||||||
Share price | $ 0.68 | ||||||||||||||
Exercise price of warrants | $ 0.82 | $ 0.82 | $ 0.68 | $ 0.68 | |||||||||||
Minimum adjustment price | $ 0.7125 | $ 0.7125 | |||||||||||||
Issuance of common stock and warrants in a registered direct offering, net of issuance costs | 551,471 |
PARENT-ONLY FINANCIALS - Share
PARENT-ONLY FINANCIALS - Share Swap in purchase of XXTXs remaining minority interest (Details) - XXTX - shares | 1 Months Ended | |
Nov. 09, 2021 | Oct. 31, 2021 | |
Class of Warrant or Right [Line Items] | ||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | 533,167 | 533,167 |
Pre Reverse Split [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance of common stock in purchase of XXTX's remaining NCI (in shares) | 5,331,667 | 5,331,667 |
PARENT-ONLY FINANCIALS - Common
PARENT-ONLY FINANCIALS - Common stock issued for consulting services (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Nov. 03, 2021 | Oct. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Mar. 31, 2022 | Nov. 09, 2021 | Mar. 31, 2021 | Jul. 21, 2019 | |
Class of Warrant or Right [Line Items] | ||||||||
Common stock, par value (in dollar per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Value of shares | $ 653,000 | $ 653,000 | ||||||
Common Stock issued as compensation | 7,693,040 | 6,186,783 | 4,978,073 | |||||
Price per share | $ 33.8 | |||||||
Additional shares of common stock round up adjustment due to retroactive effect of 1-for-10 reverse stock split | 8,402 | 8,402 | ||||||
Pre Reverse Split [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Price per share | $ 3.38 | |||||||
Consulting Agreement With Jolly Good River Group Limited | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Service period for advisory services | 12 months | |||||||
Shares of common stock issued to a consultant for services to be rendered | 100,000 | |||||||
Common stock, par value (in dollar per share) | $ 0.0001 | |||||||
Value of shares | $ 100,000 | |||||||
Common Stock issued as compensation | 100,000 | |||||||
Consulting Fee | $ 653,000 | |||||||
Consulting Agreement With Jolly Good River Group Limited | Pre Reverse Split [Member] | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Shares of common stock issued to a consultant for services to be rendered | 1,000,000 | |||||||
Value of shares | $ 1,000,000 | |||||||
Common Stock issued as compensation | 1,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 9 Months Ended | ||||
Apr. 06, 2022 $ / shares | Nov. 30, 2021 $ / shares shares | Dec. 31, 2022 shares | Aug. 09, 2022 $ / shares | Nov. 10, 2021 $ / shares | Nov. 07, 2021 $ / shares | |
Subsequent Event [Line Items] | ||||||
Floor Price | $ 0.41 | |||||
Threshold percentage on closing bid price | 85% | |||||
Reverse stock split | 0.1 | |||||
Exercise price of warrants | $ 0.82 | |||||
Number of shares issued upon conversion | shares | 1,496,125 | |||||
Series A Convertible Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares converted | shares | 520 | 3,259 | ||||
Number of shares issued upon conversion | shares | 126,831 | 870,706 | ||||
Private Placement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Initial conversion price | $ 4.10 | $ 2 | ||||
Threshold percentage on closing bid price | 85% | |||||
Reverse stock split | 0.1 | |||||
Exercise price of warrants | $ 4.1 | $ 8.2 | $ 6.8 | |||
Private Placement [Member] | Series A Convertible Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Initial conversion price | $ 0.68 | |||||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Reverse stock split | 0.1 | |||||
Subsequent event | Private Placement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Reverse stock split | 0.1 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Details) | 1 Months Ended | |||
Apr. 06, 2022 | Nov. 30, 2021 $ / shares shares | Nov. 30, 2021 D $ / shares shares | Nov. 30, 2021 item $ / shares shares | |
Subsequent Event [Line Items] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.82 | $ 0.82 | $ 0.82 | |
Reverse stock split | 0.1 | |||
Investor Warrants [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of lowest trading days | 5 | 5 | ||
Consecutive trading day period | 20 days | |||
Number of volume weighted average price | item | 5 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.13 | $ 1.13 | $ 1.13 | |
Reverse stock split | 0.1 | |||
Class of Warrant or Right, Outstanding | shares | 5,335,763 | 5,335,763 | 5,335,763 | |
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Reverse stock split | 0.1 | |||
Subsequent event | Investor Warrants [Member] | ||||
Subsequent Event [Line Items] | ||||
Reverse stock split | 0.1 |