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Discontinued Operations

6 Months Ended

Sep. 30, 2024

Discontinued Operations [Line Items]

DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

Discontinued operations - P2P lending services business

Since October 2019, the Company has discontinued its online P2P lending services business. Carrying amounts of major classes of liabilities was included as part of discontinued operations of Online P2P lending services, whose change was due to the effect of exchange rate changes as of September 30, 2024 and March 31, 2024:

		September 30,				March 31,
		2024				2024
		(Unaudited)
Current liabilities
Accrued expenses and other liabilities		$	477,402			$	464,000

Discontinued operations – Online ride-hailing platform service

The Company used to operate online ride-hailing platform services through its own platform from October 2020 to August 2024, through XXTX, which was a wholly owned subsidiary of Senmiao Zecheng, a wholly-owned subsidiary of the Company. On August 8, 2024, Senmiao Consulting entered into a certain Acquisition Agreement with Debt Assumption Takeover (the “Acquisition Agreement”) with Jiangsu Yuelaiyuexing Technology Co., Ltd. (the “Purchaser”), and other parties thereto, in connection with the acquisition (the “Acquisition”) by the Purchaser of 100% of the Company’s equity interest in XXTX and its subsidiaries. On August 20, 2024, the Acquisition was completed and the Company disposed of its 100% equity interest in XXTX and its subsidiaries to the Purchaser, effectively discontinued its operations in the online ride-hailing platform service segment. This decision was driven by recurring losses in the segment, which prompted the Company to strategically exit the online ride-hailing business. The Company recognized a gain of $397,775 from the deconsolidation of XXTX accordingly. In accordance with ASC 205-20-45, the discontinuation of the Company’s online ride-hailing platform service was accounted for as a discontinued operation, as it represented a strategic shift with a significant impact on the Company’s overall operations and financial results.

Reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations of online ride-hailing platform service in consolidated balance sheets as of September 30, 2024 and March 31, 2024 are as follows:

		September 30, 2024				March 31, 2024
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	—			$	54,580
Accounts receivable			—				14,130
Prepayments, other receivables, and other current assets, net			—				344,444
Due from a related party			—				6,938
Total current assets			—				420,092

Property and equipment, net:			—				1,267

Other Assets
Intangible assets, net			—				140,698

Total assets		$	—			$	562,057

LIABILITIES
Current liabilities
Borrowings from financial institutions		$	—			$	142,456
Accounts payable			—				44,128
Accrued expenses and other liabilities			110,347				671,868
Total current liabilities			110,347				858,452

Other liabilities:
Borrowings from financial institutions, noncurrent			—				71,228
Deferred tax liability			—				11,611
Total Other liabilities			—				82,839

Total liabilities		$	110,347			$	941,291

The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of online ride-hailing platform service in the unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended September 30, 2024 and 2023.

		For the Three Months Ended								For the Six Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenues		$	100,850			$	643,813			$	344,241			$	1,549,419
Cost of revenues			(71,199	)			(449,958	)			(247,025	)			(1,046,681	)
Gross profit			29,651				193,855				97,216				502,738
Operating expenses
Selling, general and administrative expenses			(80,167	)			(303,545	)			(166,937	)			(658,390	)
Provision for credit losses			(173,278	)			—				(173,278	)			—
Total operating expenses			(253,445	)			(303,545	)			(340,215	)			(658,390	)
Loss from operations			(223,794	)			(109,690	)			(242,999	)			(155,652	)
Other income (expenses), net			37,017				(13,128	)			33,214				(19,000	)
Interest expense			(2,512	)			(2,233	)			(8,372	)			(2,233	)
Loss before income taxes			(189,289	)			(125,051	)			(218,157	)			(176,885	)
Income tax benefit			2,575				—				4,510				—
Net loss attributable to stockholders		$	(186,714	)		$	(125,051	)		$	(213,647	)		$	(176,885	)

Reconciliation of the amount of cash flows from discontinued operations in the unaudited condensed consolidated statements of cash flows for the six months ended September 30, 2024 and 2023 are as follows:

		For the Six Months Ended September 30,
		2024				2023
		(Unaudited)				(Unaudited)
Net cash used in operating activities from discontinued operations		$	(73,478	)		$	(252,697	)

Net cash provided by investing activities from discontinued operations		$	49			$	—

Net cash (used in) provided by financing activities from discontinued operations		$	(82,026	)		$	251,232