Financial Performance - Total revenues for the three months ended September 30, 2024, were $745,880, a decrease of 37% compared to $1,183,138 for the same period in 2023[13]. - Gross profit for the three months ended September 30, 2024, was $96,899, down from $180,256 in the same period last year, representing a decline of 46%[13]. - Net loss attributable to the Company's stockholders for the three months ended September 30, 2024, was $711,449, compared to a net loss of $925,957 for the same period in 2023, indicating a reduction in losses by approximately 23%[13]. - Total operating expenses for the three months ended September 30, 2024, were $712,646, a decrease from $1,352,511 in the same period last year, reflecting a reduction of 47%[13]. - The company reported a net loss from continuing operations of $238,739 for the three months ended September 30, 2024, compared to a loss of $1,082,401 for the same period in 2023[13]. - Total comprehensive loss attributable to stockholders for the three months ended September 30, 2024, was $(618,393), compared to $(961,711) for the same period in 2023, indicating an improvement of approximately 36%[13]. - For the six months ended September 30, 2024, the net loss from continuing operations was $974,624, compared to a net loss of $1,451,914 for the same period in 2023, indicating an improvement of approximately 33%[16]. - The company recorded a net loss of $1,188,271 for the six months ended June 30, 2024, compared to a net loss of $1,628,799 for the same period in 2023, reflecting an improvement of approximately 27%[16]. Liabilities and Equity - The total liabilities as of September 30, 2024, were $8,596,506, down from $9,861,484 as of March 31, 2024[12]. - The accumulated deficit increased to $(42,769,137) as of September 30, 2024, compared to $(41,384,268) as of March 31, 2024[12]. - As of September 30, 2024, total equity was $2,952,520, a decrease from $4,054,004 as of March 31, 2024, reflecting a decline of about 27%[15]. - The working capital deficit as of September 30, 2024, was approximately $3.4 million, indicating liquidity challenges[29]. Cash Flow and Investments - The company reported a net cash provided by operating activities of $192,349 for the six months ended June 30, 2024, compared to $88,129 for the same period in 2023, representing an increase of approximately 118%[16]. - The net cash used in investing activities from continuing operations was $271,250 for the six months ended June 30, 2024, compared to $276,658 for the same period in 2023, showing a slight decrease of about 2%[16]. - The cash, cash equivalents, and restricted cash at the end of the period were $792,025 as of June 30, 2024, down from $1,129,530 at the end of the previous period[17]. - As of September 30, 2024, cash and cash equivalents from continuing operations decreased to $792,025 from $1,127,615 as of September 30, 2023, representing a decline of approximately 29.7%[18]. Foreign Currency and Derivative Liabilities - The company experienced a foreign currency translation adjustment of $119,823 for the three months ended September 30, 2024, compared to a loss of $(37,597) in the same period last year[13]. - As of September 30, 2024, the carrying value of derivative liabilities was $304,247, an increase from $288,833 as of March 31, 2024, representing a change of approximately 5%[41]. - The fair value of derivative liabilities as of March 31, 2024, included a change of $(105,242) due to various factors, indicating significant volatility in the company's financial instruments[42]. Credit Losses and Allowances - The allowance for credit losses due from Jinkailong increased to $3,554,026 as of September 30, 2024, up from $3,099,701 as of March 31, 2024[26]. - The company recorded provisions for credit losses of $181,995 and $355,436 for the three and six months ended September 30, 2024, respectively[26]. - The Company recorded an allowance for credit losses of $1,590 against accounts receivable as of September 30, 2024, compared to $1,545 as of March 31, 2024, reflecting a slight increase in expected credit losses[52]. Business Operations and Strategy - The company completed the acquisition of its ride-hailing platform, Xixingtianxia, on August 20, 2024, disposing of its 100% equity interest[21]. - Management has expressed substantial doubt about the company's ability to continue as a going concern due to financial losses and liquidity issues[31]. - The company is exploring equity financing and other sources of financing to support its working capital needs[31]. - The Company aims to enhance its revenue growth by improving existing services and pricing strategies to attract new customers[178]. Market and Industry Trends - The online ride-hailing market in China is projected to grow from RMB354.7 billion in 2024 to RMB751.3 billion in 2028, driven by rising consumer demand and increased penetration of shared mobility services[187]. - Approximately 503 million users were reported in the online ride-hailing service sector by the end of December 2023, representing about 45.7% of total Chinese internet users[187]. - The total volume of online ride-hailing orders in China reached approximately 1,029 million in August 2024, marking a 10% increase from August 2023[189]. Revenue Breakdown - Operating lease revenues from automobile rentals were $584,418 million for the three months ended September 30, 2024, down from $1,020,993 million in the prior year[68]. - Financing revenues increased to $26,853 million in Q3 2024, compared to $11,340 million in Q3 2023, reflecting a significant growth of 137%[68]. - Service fees from NEVs leasing rose to $51,694 million in Q3 2024, compared to $4,626 million in Q3 2023, indicating a growth of 1023%[68]. - Monthly services commissions generated revenues of $30,681 for the three months ended September 30, 2024, down 53.7% from $66,221 in the same period in 2023, attributed to a decrease in the number of automobiles and drivers served[202]. Operational Challenges - The company has been fined approximately $323,000 since October 2020 for providing services to unqualified drivers, highlighting regulatory challenges in the industry[193]. - Approximately 36% of ride-hailing drivers had not obtained the necessary driver's license for online ride-hailing services as of September 30, 2024, which could impact operational capabilities[192].
Senmiao Technology(AIHS) - 2025 Q2 - Quarterly Report