Senmiao Technology(AIHS) - 2025 Q1 - Quarterly Report

Financial Position - Total current assets decreased from $2,651,160 to $2,273,697, a decline of approximately 14.2%[11] - Cash and cash equivalents decreased from $792,299 to $748,869, a reduction of about 5.5%[11] - Total liabilities increased from $5,573,116 to $5,714,908, an increase of approximately 2.5%[12] - Accumulated deficit increased from $(41,384,268) to $(42,057,688), reflecting a worsening financial position[12] - Total stockholders' equity decreased from $4,054,004 to $3,258,150, a decline of approximately 19.6%[12] - Total assets decreased from $9,861,484 to $9,207,422, a decline of approximately 6.6%[12] - The working capital deficit was approximately $3.3 million as of June 30, 2024, indicating liquidity challenges[32] Revenue and Profitability - Total revenues for the three months ended June 30, 2024, were $1,122,400, a decrease of 46.4% compared to $2,094,714 for the same period in 2023[14] - Gross profit for the three months ended June 30, 2024, was $320,535, down from $581,940 in 2023, reflecting a gross margin decline[14] - Net loss attributable to the Company's stockholders for the three months ended June 30, 2024, was $673,420, compared to a net loss of $427,828 in 2023, representing a 57.4% increase in loss[14] - Operating expenses totaled $1,113,709 for the three months ended June 30, 2024, down from $1,370,362 in 2023, indicating a reduction of 18.7%[14] - Total comprehensive loss attributable to the Company's stockholders for the three months ended June 30, 2024, was $735,740, compared to $923,965 in 2023, indicating a decrease of 20.4%[14] Cash Flow and Liquidity - Net cash provided by operating activities was $16,762 for the three months ended June 30, 2024, a significant decrease from $204,866 in 2023[19] - Cash, cash equivalents, and restricted cash at the end of the period were $751,457, down from $1,173,795 at the end of June 30, 2023[19] - As of June 30, 2024, total cash, cash equivalents, and restricted cash amounted to $751,457, a decrease of approximately 36% from $1,173,795 as of June 30, 2023[21] Credit Losses and Provisions - The company recognized a provision for credit losses of $173,441 for the three months ended June 30, 2024, compared to $127,073 in 2023, reflecting an increase of 36.5%[19] - The Company recorded an allowance for credit losses of $1,535 against accounts receivable as of June 30, 2024, slightly down from $1,545 as of March 31, 2024[60] - The allowance for credit losses for prepayments and other receivables was $20,342 as of June 30, 2024, down from $20,474 as of March 31, 2024[100] Segment Performance - Revenue from Automobile Transaction and Related Services was $879,009, down 26.0% from $1,189,108 in the previous year[73] - Online Ride-hailing Platform Services generated $243,391, a significant decline of 73.1% from $905,606 in the prior year[73] Derivative Liabilities and Fair Value - As of June 30, 2024, the total derivative liabilities amounted to $297,120, an increase from $288,833 as of March 31, 2024, reflecting a change in fair value of $8,287[48] - The fair value of derivative instruments related to warrants as of June 30, 2024, totaled $291,973, down from $294,833 as of March 31, 2024, reflecting a decrease of 1.0%[122] Management and Operational Challenges - Management has expressed substantial doubt about the company's ability to continue as a going concern due to ongoing financial losses and liquidity issues[33] - The company is exploring equity financing and other sources of financing to support its working capital needs[33] - The company is actively seeking to improve its internal controls and financial reporting processes due to identified weaknesses[275] - The company plans to enhance its IT environment and internal audit functions to address compliance and operational deficiencies[276] Stock and Equity - The weighted average number of common stock shares increased to 10,518,040 for the three months ended June 30, 2024, compared to 7,891,392 in 2023[14] - The conversion price of the series A Convertible Preferred Shares was reduced from $4.10 to $2.00, increasing the number of common stock shares available upon conversion from 1,092,683 to 2,240,000[130] - As of June 30, 2024, the Company granted a total of 30,379 RSUs, with 26,447 RSUs issued under the Equity Incentive Plan[128] Expenses and Cost Management - The company made employee benefit contributions of $44,549 for the three months ended June 30, 2024, compared to $78,843 for the same period in 2023, a decrease of 43.5%[119] - The company incurred rental expenses of $4,516 for the three months ended June 30, 2024, compared to $30,327 for the same period in 2023, indicating a decrease of 85.1%[156] - Operating lease costs for automobiles totaled $224,713 for the three months ended June 30, 2024, down 56.5% from $515,874 in the same period of 2023[163]