Senmiao Technology(US:AIHS)2025-02-14 21:15Financial Performance - Total revenues for the three months ended December 31, 2024, were $919,836, a decrease of 17.0% compared to $1,108,207 for the same period in 2023[18]. - Gross profit for the nine months ended December 31, 2024, was $526,256, down from $741,763 in the same period of 2023, representing a decline of 29.0%[18]. - The net loss attributable to the Company's stockholders for the nine months ended December 31, 2024, was $1,950,184, compared to a net loss of $2,287,783 for the same period in 2023, indicating an improvement of 14.7%[18]. - The Company reported a loss from operations of $706,224 for the three months ended December 31, 2024, compared to a loss of $902,364 for the same period in 2023, showing a 21.7% improvement[18]. - The net loss per share for the three months ended December 31, 2024, was $(0.05), an improvement from $(0.10) for the same period in 2023[19]. - For the nine months ended December 31, 2024, Senmiao Technology reported a net loss of $1,771,649, compared to a net loss of $2,522,727 for the same period in 2023, indicating a 29.7% improvement in losses year-over-year[22]. - The company experienced a net loss from continuing operations of $1,558,002 for the nine months ended December 31, 2024, down from $2,154,948 in the prior year, reflecting a 27.6% reduction in operational losses[22]. - The Company reported a net loss of approximately $1.8 million for the nine months ended December 31, 2024, and an accumulated deficit of approximately $43.3 million as of the same date[34]. - As of December 31, 2024, the company reported a net loss before income tax of $583,378 for the three months ended December 31, 2024, compared to a loss of $703,034 for the same period in 2023[134]. - For the nine months ended December 31, 2024, the total net loss before income tax was $1,558,002, a decrease from $2,154,948 for the same period in 2023[134]. Assets and Liabilities - Total current assets decreased to $1,988,738 as of December 31, 2024, from $2,651,160 as of March 31, 2024, reflecting a decline of 25.0%[16]. - Total liabilities as of December 31, 2024, were $5,426,690, a slight increase from $5,343,210 as of March 31, 2024[16]. - Senmiao Technology's total equity as of December 31, 2024, was $2,230,485, down from $5,865,746 as of December 31, 2023, indicating a decline of 62.0%[21]. - The working capital deficit was approximately $3.4 million as of December 31, 2024[34]. - The balance of common stock increased to 10,518,040 shares as of December 31, 2024, from 9,568,040 shares as of December 31, 2023, reflecting a 9.9% increase in shares outstanding[21]. Cash Flow and Investments - Cash and cash equivalents increased to $949,224 as of December 31, 2024, from $737,719 as of March 31, 2024, representing a growth of 28.6%[16]. - Cash provided by operating activities from continuing operations was $621,883 for the nine months ended December 31, 2024, compared to $603,079 in 2023, showing a slight increase of 3.0%[22]. - Net cash used in investing activities for the nine months ended December 31, 2024, was $448,208, compared to $541,204 in the same period of 2023, indicating a 17.2% decrease in cash outflows for investments[22]. - Total cash, cash equivalents, and restricted cash at the end of the period for December 31, 2024, was $949,224, a decrease from $1,067,197 at the end of December 31, 2023[23]. Operational Changes - The company completed the acquisition of its ride-hailing platform, Xixingtianxia, on August 20, 2024, marking a strategic shift in its business operations[27]. - The company ceased its online ride-hailing platform services on August 20, 2024, which had been operational since October 2020[171]. - The company disposed of XXTX in August 2024, which was part of its strategy to maximize efficiency in resource allocation and performance assessment[55]. - The company has one operating segment focused on automobile transactions and related services, following the discontinuation of its online ride-hailing platform services in August 2024[55]. Revenue Sources - Operating lease revenues from automobile rentals for the nine months ended December 31, 2024, were $2,087,986, a decrease of 31.9% compared to $3,069,458 in 2023[71]. - Service fees from NEVs leasing increased to $142,751 for the nine months ended December 31, 2024, compared to $33,309 in 2023, reflecting a significant growth[71]. - For the three months ended December 31, 2024, the company generated $747,000 from Auto Operating Leasing, $44,000 from Auto Commissions, and $24,000 from Auto Financing, contributing to a total revenue breakdown of 81.2%, 4.8%, and 2.6% respectively[175]. - The average monthly rental income per automobile decreased from approximately $477 in Q4 2023 to approximately $383 in Q4 2024, significantly impacting gross profit margins[210]. Credit Losses and Provisions - The company reported a significant increase in provision for credit losses, amounting to $722,681 for the nine months ended December 31, 2024, compared to $680,396 in the previous year, representing a 6.2% increase[22]. - The allowance for credit losses due from Jinkailong was $3,778,815 as of December 31, 2024, with provisions recorded of $367,245 for the three months ended December 31, 2024[32]. - Provision for credit losses amounted to $367,245 against receivables from Jinkailong for the three months ended December 31, 2024, with no additional provision made in the prior year[212]. Management and Future Outlook - Management has substantial doubt about the Company's ability to continue as a going concern due to financial challenges and reliance on equity and debt financing[35]. - The Company is exploring various financing options, including equity financing and support from related parties, to alleviate going concern risks[35]. - The company plans to strengthen marketing efforts and maintain its active driver base to promote growth in the automobile rental business[178]. - The company plans to provide a series of product solutions to sustain and further increase the number of automobiles for operating leases, focusing on the automobile rental business as a major revenue source[199]. Miscellaneous - The company has not yet adopted recent accounting standards updates, including ASU 2023-06, which will enhance disclosure requirements[90]. - The company is currently evaluating the impact of ASU 2023-07 on its financial statements, which will enhance segment reporting disclosures[91]. - The exchange rate for RMB to USD was 7.2993 as of December 31, 2024, impacting the financial reporting[43]. - The company had accounts receivable from operating leases totaling approximately $40,000 as of December 31, 2024[184].