Senmiao Technology(US:AIHS)2026-02-13 21:06Financial Performance - For the three months ended December 31, 2025, revenues were $358,684, a decrease of 20.5% from $451,447 in the same period of 2024[18]. - Gross profit for the nine months ended December 31, 2025, was $224,641, down 50.7% from $455,912 in the same period of 2024[18]. - The net loss attributable to the Company's stockholders for the nine months ended December 31, 2025, was $1,850,369, compared to a loss of $1,950,184 in the same period of 2024[18]. - The Company reported a comprehensive loss of $2,061,870 for the nine months ended December 31, 2025, compared to $1,823,519 in the same period of 2024[18]. - The loss per share for continuing operations was $(0.85) for the nine months ended December 31, 2025, compared to $(1.11) in the same period of 2024[19]. - For the nine months ended December 31, 2025, the net loss was $1,873,845, compared to a net loss of $1,771,649 for the same period in 2024, indicating an increase in losses[22]. - The total net loss before income tax for the nine months ended December 31, 2025, was $1,771,242, compared to a loss of $992,186 for the same period in 2024, representing an increase of approximately 78.7%[153]. - The U.S. accounted for a net loss before income tax of $1,452,234 for the nine months ended December 31, 2025, compared to a loss of $664,549 in 2024, indicating a significant increase of approximately 118.5%[153]. Operating Expenses - Total operating expenses increased to $2,381,440 for the nine months ended December 31, 2025, compared to $1,619,735 in the same period of 2024, reflecting a rise of 47.0%[18]. - The loss from operations for the nine months ended December 31, 2025, was $2,156,799, compared to a loss of $1,163,823 in the same period of 2024, indicating a worsening operational performance[178]. - Total operating expenses for the nine months ended December 31, 2025, were $1,182,013, up from $1,002,461 in 2024, reflecting an increase of approximately 17.9%[110]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2025, were $3,508,226, significantly higher than $701,302 as of March 31, 2025[16]. - Total current assets increased to $4,331,637 as of December 31, 2025, compared to $2,238,762 as of March 31, 2025, marking a growth of 93.5%[16]. - The company reported a net cash used in operating activities of $1,258,193 for the nine months ended December 31, 2025, compared to a net cash provided of $548,442 in the same period of 2024[22]. - The company experienced net cash outflows of $1.3 million in operating activities during the same period[37]. - The company's cash and cash equivalents increased by approximately $2.8 million compared to September 30, 2025, maintaining a net working capital of approximately $2.4 million as of December 31, 2025[38]. Assets and Liabilities - Total liabilities decreased to $1,946,170 as of December 31, 2025, from $5,218,172 as of March 31, 2025[17]. - The total accumulated deficit increased to $46,959,942 as of December 31, 2025, from $43,334,452 as of December 31, 2024[21]. - As of December 31, 2025, total accounts receivable was $1,213, down from $8,963 as of March 31, 2025, indicating a significant reduction[113]. - Total accrued expenses and other liabilities as of December 31, 2025, were $1,562,117, compared to $1,771,072 as of March 31, 2025, reflecting a decrease of approximately 11.8%[125]. Revenue Streams - Operating lease revenues from automobile rentals for the nine months ended December 31, 2025, were $1,076,175, down from $1,312,582 in 2024, indicating a decline of about 18%[82]. - The Company reported financing revenues of $56,297,000 for the nine months ended December 31, 2025, compared to $72,697,000 in 2024, reflecting a decrease of approximately 22.6%[82]. - The Company generated service fees from NEVs leasing amounting to $33,341,000 for the nine months ended December 31, 2025, with no revenue reported for the same period in 2024[82]. - Default revenues generated were $5,831 million in Q4 2025, down from $7,711 million in Q4 2024, reflecting a decrease of approximately 24.4%[214]. Discontinued Operations - The company discontinued its automobile financial leasing services as of July 31, 2025, focusing on online ride-hailing services[25]. - The Company recognized a gain of $426,766 on the disposal of discontinued operations, specifically from Yicheng and Senmiao Consulting[110]. - For the nine months ended December 31, 2025, the Company reported a net income of $184,128 from discontinued operations, which included a gain on disposal of discontinued operations amounting to $397,775[107]. - The Company sold 100% of the equity interests in Yicheng and Senmiao Consulting for zero consideration, completing the disposition on December 31, 2025, due to recurring losses in the Sichuan region[108]. Market and Operational Strategy - The online ride-hailing market in China is projected to grow from RMB354.7 billion in 2024 to RMB751.3 billion by 2028, driven by increased demand for economical mobility options[202]. - The company plans to enhance marketing efforts and customer acquisition strategies to maintain and grow its automobile lessee base[192]. - The company plans to enhance its business system to improve service quality and user experience to remain competitive in the market[201]. Tax and Regulatory Matters - The effective tax rate for the Company's operations in the PRC is 25%[151]. - The Company recognized deferred tax assets in the U.S. of $1,877,505 as of December 31, 2025, with a valuation allowance of $2,786,458, resulting in net deferred tax assets of $0[155]. Employee and Operational Structure - The company has one employee in its sales department as of December 31, 2025, indicating a lean operational structure[192].