|
Nevada
|
| |
6199
|
| |
35-2600898
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Richard I. Anslow, Esq.
Lawrence A. Rosenbloom, Esq. Ellenoff Grossman & Schole LLP 1345 Avenue of Americas, 11th Floor New York, NY 10105 Tel: (212) 370-1300 Fax: (212) 370-7889 |
| |
Ralph V. De Martino, Esq.
F. Alec Orudjev, Esq. Schiff Hardin LLP 901 K Street NW Suite 700 Washington, D.C. 20001 Phone (202) 778-6400 Fax: (202) 778-6460 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☐ | | | Smaller reporting company ☒ | |
| (Do not check if a smaller reporting company) | | | Emerging growth company ☒ | |
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | | | | | $ | | | ||
Underwriting fee and commissions
(1)
|
| | | $ | | | | | | $ | | | |
Proceeds to us, before expenses
|
| | | $ | | | | | | $ | | | |
| | |
Page
Number |
| |||
| | | | 1 | | | |
| | | | 9 | | | |
| | | | 50 | | | |
| | | | 51 | | | |
| | | | 53 | | | |
| | | | 54 | | | |
| | | | 55 | | | |
| | | | 56 | | | |
| | | | 72 | | | |
| | | | 106 | | | |
| | | | 111 | | | |
| | | | 114 | | | |
| | | | 115 | | | |
| | | | 116 | | | |
| | | | 118 | | | |
| | | | 119 | | | |
| | | | 121 | | | |
| | | | 126 | | | |
| | | | 126 | | | |
| | | | 126 | | | |
| | | | 127 | | | |
| | | | F-1 | | |
| | |
As of December 31, 2017
|
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
Cash and cash equivalents
|
| | | $ | 85,202 | | | | | | 11,529,685 | | |
Total liabilities
|
| | | | 894,313 | | | | | | 894,313 | | |
Share capital (22,500,000 shares of common stock issued and outstanding, actual; 25,750,000 shares of common stock issued and outstanding, as adjusted)
|
| | | | 2,250 | | | | | | 2,575 | | |
Accumulated deficit
|
| | | | 1,733,837 | | | | | | 1,733,837 | | |
Stockholders’ equity
|
| | | | 9,156,252 | | | | | | 20,600,048 | | |
Total capitalization
|
| | | $ | 10,050,565 | | | | | | 21,495,048 | | |
|
|
Assumed initial public offering price per share
|
| | | $ | 4.25 | | |
|
Pro forma net tangible book value per share as of September 30, 2017
|
| | | $ | (0.0352 ) | | |
|
Increase in pro forma net tangible book value per share attributable to price paid by new investors
|
| | | $ | 0.4488 | | |
|
Pro forma net tangible book value per share after this offering
|
| | | $ | 0.4136 | | |
|
Dilution in pro forma net tangible book value per share to new investors in this offering
|
| | | $ | 3.8364 | | |
| | |
Shares purchased
|
| |
Total
consideration |
| |
Average price
per share |
| | | | |||||||||||||||||||||||||||
| | |
Number
|
| |
%
|
| |
$
|
| |
%
|
| |
$
|
| | | | |||||||||||||||||||||
| | |
(in thousands, except for percentages and per share data)
|
| | | | |||||||||||||||||||||||||||||||||
Existing stockholders
|
| | | | 22,500,000 | | | | | | 87.38 % | | | | | | 4,500 | | | | | | 0.03 % | | | | | | 0.0002 | | | | | | ||||||
New investors
|
| | | | 3,250,000 | | | | | | 12.62 % | | | | | | 13,812,500 | | | | | | 99.97 % | | | | | | 4.25 | | | | | | | | | | | |
Total
|
| | | | 25,750,000 | | | | | | 100.00 % | | | | | | 13,817,000 | | | | | | 100.00 % | | | | | | 0.5366 | | | | | | ||||||
|
| | |
For the Three Months Ended
|
| |||||||||||||||||||||||||||
| | |
December 31,
2017 |
| |
September 30,
2017 |
| |
June 30,
2017 |
| |
March 31,
2017 |
| |
December 31,
2016 |
| |||||||||||||||
Loan Amount (Standard Loan)
|
| | | $ | 10,776,692 | | | | | $ | 12,142,615 | | | | | $ | 5,834,087 | | | | | $ | 2,493,794 | | | | | $ | 4,005,092 | | |
Loan Amount (Assignment of Loan)
|
| | | $ | 14,840,155 | | | | | $ | 13,025,964 | | | | | $ | 3,100,300 | | | | | | 0 | | | | | | 0 | | |
Number of Investors
|
| | | | 271 | | | | | | 329 | | | | | | 381 | | | | | | 329 | | | | | | 359 | | |
Number of Borrowers
|
| | | | 2,043 | | | | | | 289 | | | | | | 160 | | | | | | 26 | | | | | | 140 | | |
Average Investment Amount
|
| | | $ | 94,527 | | | | | $ | 76,500 | | | | | $ | 23,450 | | | | | $ | 7,580 | | | | | $ | 11,156 | | |
Average Borrowing Amount
|
| | | $ | 12,539 | | | | | $ | 87,088 | | | | | $ | 55,841 | | | | | $ | 95,915 | | | | | $ | 28,608 | | |
Transaction Fees from Borrowers
|
| | | $ | 72,420 | | | | | $ | 56,246 | | | | | $ | 42,889 | | | | | $ | 35,745 | | | | | $ | 20,828 | | |
Transaction Fees from Creditor Partners
|
| | | $ | 68,594 | | | | | $ | 50,330 | | | | | $ | 16,663 | | | | | $ | — | | | | | $ | — | | |
Service Fees from Investors
|
| | | $ | 11,524 | | | | | $ | 10,592 | | | | | $ | 6,240 | | | | | $ | 7,945 | | | | | $ | 8,719 | | |
| | |
For the Three Months Ended
|
| |||||||||||||||||||||||||||
| | |
December 31,
2017 |
| |
September 30,
2017 |
| |
June 30,
2017 |
| |
March 31,
2017 |
| |
December 31,
2016 |
| |||||||||||||||
Reinvestment of existing investors
|
| | | | 225 | | | | | | 252 | | | | | | 73 | | | | | | 235 | | | | | | 353 | | |
Reinvestment rate of existing investors
|
| | | | 87.51 % | | | | | | 63.83 % | | | | | | 57.21 % | | | | | | 45.25 % | | | | | | 49.58 % | | |
Number of new investors
|
| | | | 17 | | | | | | 77 | | | | | | 308 | | | | | | 94 | | | | | | 46 | | |
Total number of investors
|
| | | | 271 | | | | | | 329 | | | | | | 381 | | | | | | 329 | | | | | | 359 | | |
Average loan amount of each investor
|
| | | $ | 94,527 | | | | | $ | 76,500 | | | | | $ | 23,450 | | | | | $ | 7,580 | | | | | $ | 11,156 | | |
Average number of total loans held by each investor
|
| | | | 17.24 | | | | | | 8.31 | | | | | | 6.00 | | | | | | 6.95 | | | | | | 6.37 | | |
| | |
For the Three Months Ended
|
| ||||||||||||||||||||||||||||||
Applicable Metric
|
| |
December 31,
2017 |
| |
September 30,
2017 |
| |
June 30,
2017 |
| |
March 31,
2017 |
| |
December 31,
2016 |
| ||||||||||||||||||
Re-Borrowing rate of existing borrowers
|
| |
Individuals
|
| | | | 0.05 % | | | | | | — | | | | | | 25 % | | | | | | 29 % | | | | | | 5 % | | |
| SMEs | | | | | 28 % | | | | | | 50 % | | | | | | 19 % | | | | | | 0 % | | | | | | 21 % | | | ||
|
Assigned
loans |
| | | | 30 % | | | | | | 52 % | | | | | | 0 % | | | | | | 0 % | | | | | | 0 % | | | ||
Number of new borrowers
|
| |
Individuals
|
| | | | 1,775 | | | | | | 1 | | | | | | 3 | | | | | | 2 | | | | | | 120 | | |
| SMEs | | | | | 2 | | | | | | 10 | | | | | | 34 | | | | | | 10 | | | | | | 11 | | | ||
|
Assigned
loans |
| | | | 196 | | | | | | 218 | | | | | | 114 | | | | | | 0 | | | | | | 0 | | | ||
Total number of borrowers
|
| |
Individuals
|
| | | | 1,775 | | | | | | 1 | | | | | | 4 | | | | | | 10 | | | | | | 126 | | |
| SMEs | | | | | 66 | | | | | | 41 | | | | | | 42 | | | | | | 16 | | | | | | 14 | | | ||
|
Assigned
loans |
| | | | 202 | | | | | | 247 | | | | | | 114 | | | | | | 0 | | | | | | 0 | | | ||
Average loan amount of
each borrower |
| |
Individuals
|
| | | $ | 534 | | | | | $ | 1,417 | | | | | $ | 19,311 | | | | | $ | 21,774 | | | | | $ | 15,525 | | |
| SMEs | | | | $ | 148,930 | | | | | $ | 296,127 | | | | | $ | 134,215 | | | | | $ | 145,157 | | | | | $ | 146,321 | | | ||
|
Assigned
loans |
| | | $ | 73,466 | | | | | $ | 52,737 | | | | | $ | 27,196 | | | | | | — | | | | | | — | | | ||
Total amount of loans
|
| |
Individuals
|
| | | $ | 947,315 | | | | | $ | 1,417 | | | | | $ | 77,244 | | | | | $ | 171,285 | | | | | $ | 1,956,601 | | |
| SMEs | | | | $ | 9,829,377 | | | | | $ | 12,141,198 | | | | | $ | 5,756,843 | | | | | $ | 2,322,509 | | | | | $ | 2,048,491 | | | ||
|
Assigned
loans |
| | | $ | 14,840,155 | | | | | $ | 13,025,964 | | | | | $ | 3,100,300 | | | | | | — | | | | | | — | | |
Quarter ended
|
| |
Number of
Investment |
| |
Total Amount of
Investment |
| |
Average Amount of
Investment |
| |||||||||
December 31, 2016
|
| | | | 66 | | | | | $ | 745,907 | | | | | $ | 11,212 | | |
March 31, 2017
|
| | | | 15 | | | | | $ | 61,484 | | | | | $ | 4,099 | | |
June 30, 2017
|
| | | | 34 | | | | | $ | 263,482 | | | | | $ | 7,718 | | |
September 30, 2017
|
| | | | 140 | | | | | $ | 1,045,949 | | | | | $ | 7,471 | | |
December 31, 2017
|
| | | | 226 | | | | | $ | 804,986 | | | | | $ | 3,562 | | |
Quarter ended
|
| |
Guarantee
|
| |
Loan Amount
|
| |||
December 31, 2016
|
| |
Unaffiliated Third
Party Guarantee |
| | | $ | 4,004,799 | | |
March 31, 2017
|
| |
Unaffiliated Third
Party Guarantee |
| | | $ | 152,415 | | |
June 30, 2017
|
| |
Unaffiliated Third
Party Guarantee |
| | | $ | 5,762,961 | | |
September 30, 2017
|
| |
Unaffiliated Third
Party Guarantee |
| | | $ | 12,141,198 | | |
December 31, 2017
|
| |
Unaffiliated Third
Party Guarantee |
| | | $ | 26,436,523 | | |
Quarter ended
|
| |
Average Customer
Acquisition Cost |
| |||
December 31, 2016
|
| | | $ | 13.90 | | |
March 31, 2017
|
| | | $ | 7.98 | | |
June 30, 2017
|
| | | $ | 3.79 | | |
September 30, 2017
|
| | | $ | 23.17 | | |
December 31, 2017
|
| | | $ | 17.76 | | |
| | |
For the Three Months Ended
December 31, |
| | ||||||||||||||
| | |
2017
|
| |
2016
|
| |
Change
|
| |||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | |||||||||||
Revenues | | | | $ | 152,538 | | | | | $ | 29,779 | | | | | $ | 122,759 | | |
Operating expenses | | | | | |||||||||||||||
Selling, general and administrative expenses
|
| | | | (288,620 ) | | | | | | (41,987 ) | | | | | | (246,633 ) | | |
Amortization of intangible assets
|
| | | | (165,206 ) | | | | | | (161,646 ) | | | | | | (3,560 ) | | |
Total operating expenses
|
| | | | (453,826 ) | | | | | | (203,633 ) | | | | | | (250,193 ) | | |
Loss from operations
|
| | | | (301,288 ) | | | | | | (173,854 ) | | | | | | (127,434 ) | | |
Other income | | | | | |||||||||||||||
Interest income
|
| | | | 58 | | | | | | 2 | | | | | | 56 | | |
Other income, net
|
| | | | 13 | | | | | | — | | | | | | 13 | | |
Total other income
|
| | | | 71 | | | | | | 2 | | | | | | 69 | | |
Loss before income taxes
|
| | | | (301,217 ) | | | | | | (173,852 ) | | | | | | (127,365 ) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | |
Net Loss
|
| | | $ | (301,217 ) | | | | | $ | (173,852 ) | | | | | $ | (127,365 ) | | |
|
| | |
For the Three Months Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue
|
| | | $ | 152,538 | | | | | $ | 29,779 | | |
Transaction fees from borrowers
|
| | | | 72,420 | | | | | | 20,992 | | |
Transaction fees from Creditor Partners
|
| | | | 68,594 | | | | | | — | | |
Service fees from investors
|
| | | | 11,524 | | | | | | 8,787 | | |
| | |
For the Nine Months Ended
December 31, |
| | ||||||||||||||
| | |
2017
|
| |
2016
|
| |
Change
|
| |||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| | |||||||||||
Revenues | | | | $ | 335,498 | | | | | $ | 29,779 | | | | | $ | 305,719 | | |
Operating expenses | | | | | |||||||||||||||
Selling, general and administrative expenses
|
| | | | (960,349 ) | | | | | | (53,697 ) | | | | | | (906,652 ) | | |
Amortization of intangible assets
|
| | | | (488,210 ) | | | | | | (161,646 ) | | | | | | (326,564 ) | | |
Total operating expenses
|
| | | | (1,448,559 ) | | | | | | (215,343 ) | | | | | | (1,233,216 ) | | |
Loss from operations
|
| | | | (1,113,061 ) | | | | | | (185,564 ) | | | | | | (927,497 ) | | |
Other income | | | | | |||||||||||||||
Interest income
|
| | | | 210 | | | | | | 3 | | | | | | 207 | | |
Other income, net
|
| | | | 1,711 | | | | | | — | | | | | | 1,711 | | |
Total other income
|
| | | | 1,921 | | | | | | 3 | | | | | | 1,918 | | |
Loss before income taxes
|
| | | | (1,111,140 ) | | | | | | (185,561 ) | | | | | | (925,579 ) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss from continuing operations
|
| | | | (1,111,140 ) | | | | | | (185,561 ) | | | | | | (925,579 ) | | |
Net loss from discontinued operations
|
| | | | — | | | | | | (86,876 ) | | | | | | 86,876 | | |
Net Loss
|
| | | $ | (1,111,140 ) | | | | | $ | (272,437 ) | | | | | $ | (838,703 ) | | |
|
| | |
For the Nine Months Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue | | | | | 335,498 | | | | | | 29,779 | | |
Transaction fees from borrowers
|
| | | | 171,556 | | | | | | 20,992 | | |
Transaction fees from Creditor Partners
|
| | | | 135,586 | | | | | | — | | |
Service fees from investors
|
| | | | 28,356 | | | | | | 8,787 | | |
| | |
For the Years Ended March 31,
|
| | | | | | | |||||||||
| | |
2017
|
| |
2016
|
| |
Change
|
| |||||||||
Revenues
|
| | | $ | 73,237 | | | | | $ | — | | | | | | 73,237 | | |
Operating expenses | | | | | |||||||||||||||
Selling, general and administrative expenses
|
| | | | (258,772 ) | | | | | | (18,724 ) | | | | | | (240,048 ) | | |
Amortization of intangible assets
|
| | | | (324,710 ) | | | | | | — | | | | | | (324,710 ) | | |
Total operating expenses
|
| | | | (583,482 ) | | | | | | (18,724 ) | | | | | | (564,758 ) | | |
Loss from operations
|
| | | | (510,245 ) | | | | | | (18,724 ) | | | | | | (491,521 ) | | |
Other income | | | | | |||||||||||||||
Interest income
|
| | | | 30 | | | | | | 1 | | | | | | 29 | | |
Other income, net
|
| | | | 446 | | | | | | — | | | | | | 446 | | |
Total other income
|
| | | | 476 | | | | | | 1 | | | | | | 475 | | |
Loss before income taxes
|
| | | | (509,769 ) | | | | | | (18,723 ) | | | | | | (491,046 ) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss from continuing operations
|
| | | | (509,769 ) | | | | | | (18,723 ) | | | | | | (491,046 ) | | |
Net (loss)/income from discontinued operations
|
| | | | (86,876 ) | | | | | | 4,449 | | | | | | (91,325 ) | | |
Net Loss
|
| | | $ | (596,645 ) | | | | | $ | (14,274 ) | | | | | | (582,371 ) | | |
|
| | |
For the Years Ended March 31,
|
| | | |||||||||||||
| | |
2017
|
| |
2016
|
| | | ||||||||||
Revenue
|
| | | | 73,237 | | | | | | — | | | | | ||||
Transaction fees from borrowers
|
| | | | 56,573 | | | | | | — | | | | | | | | |
Service fees from investors
|
| | | | 16,664 | | | | | | — | | | | | | |
| | |
For the three months ended
|
| | | | | | | |||||||||||||||
| | |
March 31, 2017
|
| |
December 31, 2016
|
| |
September 30 and
June 30, 2016 |
| |
For the year ended
March 31, 2017 |
| ||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||
Revenue
|
| | | | 43,690 | | | | | | 29,547 | | | | | | — | | | | | | 73,237 | | |
Transaction fees from borrowers
|
| | | | 35,745 | | | | | | 20,828 | | | | | | — | | | | | | 56,573 | | |
Service fees from investors
|
| | | | 7,945 | | | | | | 8,719 | | | | | | — | | | | | | 16,664 | | |
| | |
For the Nine Months Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
Net Cash (Used in)/Provided by Operating Activities
|
| | | | (417,645 ) | | | | | | 8,638 | | |
Net Cash Used in Investing Activities
|
| | | | (412 ) | | | | | | (93,955 ) | | |
Net Cash Provided by Financing Activities
|
| | | | 335,092 | | | | | | — | | |
Effect of Exchange Rate Changes on Cash
|
| | | | 6,875 | | | | | | 85,369 | | |
Cash and cash equivalents at Beginning of Period
|
| | | | 161,292 | | | | | | 165 | | |
Cash and cash equivalents at End of Period
|
| | | $ | 85,202 | | | | | $ | 217 | | |
|
| | |
For the years ended
March 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Net Cash Provided by Operating Activities
|
| | | | 1,324,449 | | | | | | (241 ) | | |
Net Cash Used in Investing Activities
|
| | | | (1,246,018 ) | | | | | | — | | |
Net Cash Provided by Financing Activities
|
| | | | 341,736 | | | | | | — | | |
Effect of Exchange Rate Changes on Cash
|
| | | | (259,040 ) | | | | | | (17 ) | | |
Cash and cash equivalents at Beginning of Year
|
| | | | 165 | | | | | | 423 | | |
Cash and cash equivalents at End of Year
|
| | | $ | 161,292 | | | | | $ | 165 | | |
|
Function
|
| |
Number of Employees
|
| |||
Management
|
| | | | 2 | | |
Technology
|
| | | | 9 | | |
Risk Management
|
| | | | 5 | | |
Operations
|
| | | | 7 | | |
Human Resources
|
| | | | 3 | | |
Business Development
|
| | | | 3 | | |
Finance and Accounting
|
| | | | 3 | | |
Total
|
| | | | 32 | | |
Name
|
| |
Age
|
| |
Position
|
| |||
Xin Chen | | | | | 47 | | | | Chief Executive Officer | |
Rong Zhu | | | | | 39 | | | | Chief Financial Officer and Treasurer | |
Chunhai Li | | | | | 33 | | | | Chief Technology Officer | |
Xiaojuan Lin | | | | | 52 | | | | Director | |
Xiang Hu | | | | | 35 | | | | Director | |
Xi Wen | | | | | 34 | | | |
Chairman of the Board, President and Secretary
|
|
Yulei Rao | | | | | 53 | | | | Director | |
Trent D. Davis | | | | | 50 | | | | Director nominee* | |
Name and principal position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
awards ($) |
| |
Option
awards ($) |
| |
Non equity
incentive plan compensation ($) |
| |
Nonqualified
deferred compensation earnings ($) |
| |
All other
compensation ($) |
| |
Total
($) |
| |||||||||||||||||||||||||||
Xin Chen, Chief Executive
Officer |
| | | | 2017 | | | | | | 15,601 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,601 (1) | | |
| | | 2016 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | ||
Rong Zhu, Chief Financial
Officer and Treasurer |
| | | | 2017 | | | | | | 4,457 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,457 (2) | | |
| | | 2016 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | ||
Chunhai Li, Chief Technology Officer
|
| | | | 2017 | | | | | | 5,977 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,977 (3) | | |
| | | 2016 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Prior to Offering
|
| |
After Offering
|
| ||||||||||||||||||
Name and Address of Beneficial Owner
(1)
|
| |
Amount and
Nature of Beneficial Ownership |
| |
Approximate
Percentage of Outstanding Shares (2) |
| |
Amount and
Nature of Beneficial Ownership |
| |
Approximate
Percentage of Outstanding Shares (3) |
| ||||||||||||
5% Stockholders | | | | | | ||||||||||||||||||||
Senmiao International Investment Group
Limited (4) |
| | | | 10,575,000 | | | | | | 47 % | | | | | | 10,575,000 | | | | | | 41.1 % | | |
THS Investment Group Limited
(5)
|
| | | | 1,687,500 | | | | | | 7.5 % | | | | | | 1,687,500 | | | | | | 6.6 % | | |
HSM Investment Group Limited
(6)
|
| | | | 1,912,500 | | | | | | 8.5 % | | | | | | 1,912,500 | | | | | | 7.4 % | | |
HSA Investment Group Limited
(7)
|
| | | | 2,475,000 | | | | | | 11 % | | | | | | 2,475,000 | | | | | | 9.6 % | | |
Officers and Directors | | | | | | ||||||||||||||||||||
Xin Chen
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Rong Zhu
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Chunhai Li
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Xi Wen
(8)
|
| | | | 1,122,750 | | | | | | 4.99 % | | | | | | 1,122,750 | | | | | | 4.4 % | | |
Xiang Hu
(4)
|
| | | | 10,575,000 | | | | | | 47 % | | | | | | 10,575,000 | | | | | | 41.1 % | | |
Xiaojuan Lin
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Yulei Rao
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Trent D. Davis
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All directors and executive officers as a group (eight individuals)
|
| | | | 11,697,750 | | | | | | 51.99 % | | | | | | 11,697,750 | | | | | | 45.4 % | | |
Underwriters
|
| |
Number of Shares
|
|
ViewTrade Securities, Inc.
|
| | ||
| | | ||
| | | ||
Total
|
| |
|
|
| | |
Per Share
|
| |
Aggregate
Amount |
| ||||||
Public offering price
|
| | | $ | [•] | | | | | $ | [•] | | |
Underwriting discount
(1)
|
| | | $ | [•] | | | | | $ | [•] | | |
Non-accountable expense allowance
(2)
|
| | | $ | [•] | | | | | $ | [•] | | |
Proceeds before other expenses
|
| | | $ | [•] | | | | | $ | [•] | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | |
| | | | | | | | |
March 31,
|
| |||||||||
| | |
Note
|
| |
2017
|
| |
2016
|
| |||||||||
| | | | | | | | |
Restated
Note 3 |
| | ||||||||
ASSETS | | | | | |||||||||||||||
Current Assets | | | | | |||||||||||||||
Cash and cash equivalents
|
| | | | | | | | | $ | 161,292 | | | | | $ | 165 | | |
Prepayments, receivables and other assets
|
| | | | 6 | | | | | | 19,476 | | | | | | 1,550,544 | | |
| | | | | | | | | | | 180,768 | | | | |
|
1,550,709
|
| |
Assets of disposal group classified as held for sale
|
| | | | 5 | | | | | | — | | | | | | 19,960,291 | | |
Total Current Assets
|
| | | | | | | | | | 180,768 | | | | | | 21,511,000 | | |
Property and equipment, net
|
| | |
|
7
|
| | | | | 4,648 | | | | | | — | | |
Other Assets | | | | | |||||||||||||||
Platform
|
| | | | 8 | | | | | | 3,874,166 | | | | | | — | | |
User relationship
|
| | | | 4,8 | | | | | | 363,285 | | | | | | — | | |
Goodwill
|
| | | | 4 | | | | | | 5,631,819 | | | | | | — | | |
Total Assets
|
| | | | | | | | | $ | 10,054,686 | | | | | $ | 21,511,000 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | |||||||||||||||
Current Liabilities | | | | | |||||||||||||||
Accrued expenses and other liabilities
|
| | | | 9 | | | | | $ | 90,256 | | | | | $ | 31,585 | | |
Due to shareholders
|
| | | | 13 | | | | | | 333,761 | | | | | | — | | |
| | | | | | | | | | | 424,017 | | | | |
|
31,585
|
| |
Liabilities directly associated with the assets classified as held for sale
|
| | | | 5 | | | | | | — | | | | | | 4,458,543 | | |
Total Current Liabilities
|
| | | | | | | | | | 424,017 | | | | | | 4,490,128 | | |
Commitments and Contingencies
|
| | | | | | | | | | — | | | | | | — | | |
Shareholders’ Equity | | | | | |||||||||||||||
Common stocks (par value $0.0001 per share, 100,000,000 shares
authorized; 20,250,000 and 20,250,000 shares issued and outstanding at March 31, 2017 and 2016, respectively*) |
| | | | 11 | | | | | $ | 2,025 | | | | | $ | 2,025 | | |
Additional Paid-in capital
|
| | | | | | | | | | 11,359,103 | | | | | | 11,359,103 | | |
Accumulated deficit
|
| | | | | | | | | | (622,697 ) | | | | | | (34,815 ) | | |
Accumulated other comprehensive loss
|
| | | | | | | | | | (1,107,762 ) | | | | | | (506,140 ) | | |
Total Shareholders’ Equity
|
| | | | | | | | | | 9,630,669 | | | | | | 10,820,173 | | |
Non controlling interests
|
| | | | | | | | | | — | | | | | | 6,200,699 | | |
Total equity
|
| | | | | | | | | | 9,630,669 | | | | | | 17,020,872 | | |
Total Liabilities and Shareholders’ Equity
|
| | | | | | | | | $ | 10,054,686 | | | | | $ | 21,511,000 | | |
|
| | |
Note
|
| |
For the Years Ended March 31,
|
| ||||||||||||
| | | | | | | | |
2017
|
| |
2016
|
| ||||||
| | | | | | | | |
Restated
note 3 |
| | | | | | | |||
Revenues
|
| | | | | | | | | $ | 73,237 | | | | | $ | — | | |
Gross revenues
|
| | | | | | | | | | 73,237 | | | | | | — | | |
Operating expenses | | | | | | | | | | | | | | | |||||
Selling, general and administrative expenses
|
| | | | | | | | | | (258,772 ) | | | | | | (18,724 ) | | |
Amortization of intangible assets
|
| | | | | | | | | | (324,710 ) | | | | | | — | | |
Total operating expenses
|
| | | | | | | | | | (583,482 ) | | | | | | (18,724 ) | | |
Loss from operations
|
| | | | | | | | | | (510,245 ) | | | | | | (18,724 ) | | |
Other income/(expense) | | | | | | | | | | | | | | | |||||
Interest income
|
| | | | | | | | | | 30 | | | | | | 1 | | |
Other income, net
|
| | | | | | | | | | 446 | | | | | | — | | |
Total other income
|
| | | | | | | | | | 476 | | | | | | 1 | | |
Loss before income taxes
|
| | | | | | | | | | (509,769 ) | | | | | | (18,723 ) | | |
Income tax expense
|
| | | | 12 | | | | | | — | | | | | | — | | |
Net loss from continuing operations
|
| | | | | | | | | | (509,769 ) | | | | | | (18,723 ) | | |
Net (loss)/income from discontinued operations, net of tax
|
| | | | | | | | | | (86,876 ) | | | | | | 4,449 | | |
Net Loss
|
| | | | | | | | | | (596,645 ) | | | | | | (14,274 ) | | |
Net (loss)/income attributable to non-controlling interests
|
| | | | | | | | | | (8,763 ) | | | | | | 1,780 | | |
Net loss attributable to Senmiao Technology Limited
|
| | | | | | | | | | (587,882 ) | | | | | | (16,054 ) | | |
Net loss attributable to Senmiao Technology Limited from continuing operation
|
| | | | | | | | | | (509,769 ) | | | | | | (18,723 ) | | |
Net (loss)/income attributable to Senmiao Technology Limited from discontinued operation
|
| | | | | | | | | | (78,113 ) | | | | | | 2,669 | | |
Other comprehensive income | | | | | | | | | | | | | | | |||||
Foreign currency translation adjustment
|
| | | | | | | | | | (807,024 ) | | | | | | (917,319 ) | | |
Comprehensive Loss
|
| | | | | | | | | | (1,403,669 ) | | | | | | (931,593 ) | | |
Less: comprehensive loss attributable to non-controlling interests
|
| | | | | | | | | | (214,165 ) | | | | | | (332,163 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited
|
| | | | | | | | | $ | (1,189,504 ) | | | | | $ | (599,430 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited from
continuing operation |
| | | | | | | | | | (1,191,718 ) | | | | | | (602,309 ) | | |
Comprehensive (loss)/income attributable to Senmiao Technology Limited from discontinued operation
|
| | | | | | | | | | 2,214 | | | | | | 2,879 | | |
Weighted average number of common shares
|
| | | | |||||||||||||||
Basic
|
| | | | | | | | | | 20,250,000 | | | | | | 20,250,000 | | |
Diluted
|
| | | | | | | | | | 20,250,000 | | | | | | 20,250,000 | | |
Earnings per share | | | | | | | | | | | | | | | |||||
Basic loss for the year attributable to the shareholders of the Company
|
| | | | | | | | | $ | (0.03 ) | | | | | $ | (0.00 ) | | |
Diluted loss for the year attributable to the shareholders of the Company
|
| | | | | | | | | | (0.03 ) | | | | | | (0.00 ) | | |
Earnings per share from continuing operations | | | | | | | | | | | | | | | | | | | |
Basic loss from continuing operations attributable to the shareholders of the Company
|
| | | | | | | | | | (0.03 ) | | | | | | (0.00 ) | | |
Diluted loss from continuing operations attributable to the shareholders of the Company
|
| | | | | | | | | | (0.03 ) | | | | | | (0.00 ) | | |
Earnings per share from discontinued operations | | | | | |||||||||||||||
Basic (loss)/profit from discontinued operations attributable to the shareholder of the Company
|
| | | | | | | | | | (0.00 ) | | | | | | 0.00 | | |
Diluted (loss)/profit from discontinued operations attributable to the
shareholder of the Company |
| | | | | | | | | $ | (0.00 ) | | | | | $ | 0.00 | | |
| | |
Common Stock (note 10)
|
| |
Additional
Paid-in capital |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income |
| |
Non-controlling
interest |
| |
Total
equity |
|||||||||||||||||||||||
| | |
Shares
|
| |
Par value
|
| ||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Restated
Note 3 |
| |
Restated
Noted 3 |
| | | | | | | |
Restated
Note 3 |
||||||||
Balance as of March 31, 2015
|
| | | | 20,250,000 | | | | | $ | 2,025 | | | | | $ | 11,359,103 | | | | | $ | (18,761 ) | | | | | $ | 77,236 | | | | | $ | 6,532,862 | | | | | $ | 17,952,465 |
Net (loss)/income
|
| | | | — | | | | | | — | | | | | | — | | | | | | (16,054 ) | | | | | | — | | | | | | 1,780 | | | | |
|
(14,274
)
|
Foreign currency translation loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (583,376 ) | | | | | | (333,943 ) | | | | |
|
(917,319
)
|
Balance as of March 31, 2016
|
| | | | 20,250,000 | | | | | $ | 2,025 | | | | | $ | 11,359,103 | | | | | $ | (34,815 ) | | | | | $ | (506,140 ) | | | | | $ | 6,200,699 | | | | | $ | 17,020,872 |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (587,882 ) | | | | | | — | | | | | | (8,763 ) | | | | |
|
(596,645
)
|
Foreign currency translation loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (601,622 ) | | | | | | (205,402 ) | | | | |
|
(807,024
)
|
Disposal of a subsidiary
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,986,534 ) | | | | |
|
(5,986,534
)
|
Balance as of March 31, 2017
|
| | | | 20,250,000 | | | | | $ | 2,025 | | | | | $ | 11,359,103 | | | | | $ | (622,697 ) | | | | | $ | (1,107,762 ) | | | | | $ | — | | | | | $ | 9,630,669 |
|
| | |
For The Years Ended March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
Restated
note 3 |
| | | | | | | |||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss from continuing operations
|
| | | $ | (509,769 ) | | | | | $ | (18,723 ) | | |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
| | | | | | | | | | | | |
Depreciation of property and equipment
|
| | | | 961 | | | | | | — | | |
Amortization of intangible assets
|
| | | | 324,710 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | ||||||||||
Prepayments, receivables and other assets
|
| | | | 1,465,865 | | | | | | — | | |
Accrued expenses and other liabilities
|
| | | | 42,682 | | | | | | 18,482 | | |
Net Cash Provided by/(Used in) Operating Activities
|
| | | | 1,324,449 | | | | | | (241 ) | | |
Net Cash Provided by/(Used in) Operating Activities from Continuing Operations
|
| | |
|
1,325,242
|
| | | |
|
(491
)
|
| |
Net Cash Used in by Operating Activities from Discontinued Operations
|
| | | | (793 ) | | | | | | 250 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Disposal of a subsidiary
|
| | | | 8,914,833 | | | | | | — | | |
Purchase of property and equipment
|
| | | | (1,975 ) | | | | | | — | | |
Purchase of intangible assets
|
| | | | (59,432 ) | | | | | | — | | |
Consideration paid in a business acquisition
|
| | | | (10,099,444 ) | | | | | | — | | |
Net Cash Used in Investing Activities
|
| | | | (1,246,018 ) | | | | | | — | | |
Net Cash Used in Investing Activities from Continuing Operations
|
| | |
|
(1,246,018
)
|
| | | | | — | | |
Net Cash Used in Investing Activities from Discontinued Operations
|
| | | | — | | | | | | — | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | |
Proceeds borrowed from shareholders
|
| | | | 341,736 | | | | | | — | | |
Net Cash Provided by Financing Activities
|
| | | | 341,736 | | | | | | — | | |
Effect of Exchange Rate Changes on Cash
|
| | | | (259,040 ) | | | | | | (17 ) | | |
Net Increase/(Decrease) In Cash
|
| | | | 161,127 | | | | |
|
(258
)
|
| |
Cash and cash equivalents at Beginning of Year
|
| | | | 165 | | | | |
|
423
|
| |
Cash and cash equivalents at End of Year
|
| | | $ | 161,292 | | | | | $ | 165 | | |
Supplemental Cash Flow Information | | | | | | | | | | | | | |
Cash paid for interest expense
|
| | | $ | — | | | | | $ | — | | |
Cash paid for income tax
|
| | | $ | — | | | | | $ | — | | |
|
| | |
March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Total assets
|
| | | $ | 10,054,686 | | | | | $ | 21,511,000 | | |
Total liabilities
|
| | | $ | 424,017 | | | | | $ | 4,490,128 | | |
| | |
For the Years Ended March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Net Revenues
|
| | | $ | 73,237 | | | | | $ | — | | |
Net Loss
|
| | | | (596,645 ) | | | | | | (14,274 ) | | |
Net Cash Provided by/(Used in) Operating Activities
|
| | | | 1,324,449 | | | | | | (241 ) | | |
Net Cash Used in Investing Activities
|
| | | | (1,246,018 ) | | | | | | — | | |
Net Cash Provided by Financing Activities
|
| | | $ | 341,736 | | | | | $ | — | | |
| | |
March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Balance sheet items, except for equity accounts
|
| | | | 6.8912 | | | | | | 6.4494 | | |
| | |
For the years
ended March 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Items in the statements of operations and comprehensive loss, and statements of cash flows
|
| | | | 6.7304 | | | | | | 6.3271 | | |
| Computer equipment purchased | | |
3 years
|
|
| Computer equipment obtained in the Acquisition (see note 3) | | |
2 years
|
|
| Platform | | |
7 years
|
|
| Customer relationship | | |
10 years
|
|
| | |
As at March 31, 2017
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Accrued expenses and other liabilities
|
| | | $ | 55,819 | | | | | $ | 34,437 | | | | | $ | 90,256 | | |
Total Current Liabilities
|
| | | | 389,580 | | | | | | 34,437 | | | | | | 424,017 | | |
Accumulated deficit
|
| | | | (587,437 ) | | | | | | (35,260 ) | | | | | | (622,697 ) | | |
Accumulated other comprehensive loss
|
| | | | (1,108,585 ) | | | | | | 823 | | | | | | (1,107,762 ) | | |
Total Shareholders’ Equity
|
| | | | 9,665,106 | | | | | | (34,437 ) | | | | | | 9,630,669 | | |
Total equity
|
| | | $ | 9,665,106 | | | | | $ | (34,437 ) | | | | | $ | 9,630,669 | | |
| | |
For The Years Ended March 31, 2017
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Selling, general and administrative expenses
|
| | | $ | (223,512 ) | | | | | $ | (35,260 ) | | | | | $ | (258,772 ) | | |
Total operating expenses
|
| | | | (548,222 ) | | | | | | (35,260 ) | | | | | | (583,482 ) | | |
Loss from operations
|
| | | | (474,985 ) | | | | | | (35,260 ) | | | | | | (510,245 ) | | |
Loss on disposal of a subsidiary
|
| | | | (64,968 ) | | | | | | 64,968 | | | | | | — | | |
Total other income
|
| | | | (64,492 ) | | | | | | 64,968 | | | | | | 476 | | |
Loss before income taxes
|
| | | | (539,477 ) | | | | | | 29,708 | | | | | | (509,769 ) | | |
Net loss from continuing operations
|
| | | | (539,477 ) | | | | | | 29,708 | | | | | | (509,769 ) | | |
Net (loss)/income from discontinued operations, net of tax
|
| | | | (21,908 ) | | | | | | (64,968 ) | | | | | | (86,876 ) | | |
Net Loss
|
| | | | (561,385 ) | | | | | | (35,260 ) | | | | | | (596,645 ) | | |
Net loss attributable to Senmiao Technology Limited
|
| | | | (552,622 ) | | | | | | (35,260 ) | | | | | | (587,882 ) | | |
Net loss attributable to Senmiao Technology Limited from continuing operation
|
| | | | (539,477 ) | | | | | | 29,708 | | | | | | (509,769 ) | | |
Net (loss)/income attributable to Senmiao Technology Limited from discontinued operation
|
| | | | (13,145 ) | | | | | | (64,968 ) | | | | | | (78,113 ) | | |
Foreign currency translation adjustment
|
| | | | (807,847 ) | | | | | | 823 | | | | | | (807,024 ) | | |
Comprehensive Loss
|
| | | | (1,369,232 ) | | | | | | (34,437 ) | | | | | | (1,403,669 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited
|
| | | | (1,155,067 ) | | | | | | (34,437 ) | | | | | | (1,189,504 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited from continuing operation
|
| | | | (1,142,014 ) | | | | | | (49,704 ) | | | | | | (1,191,718 ) | | |
Comprehensive (loss)/income attributable to Senmiao Technology
Limited from discontinued operation |
| | | | (13,053 ) | | | | | | 15,267 | | | | | | 2,214 | | |
Earnings per share
|
| | | | |||||||||||||||
Basic loss for the year attributable to the shareholders of the Company
|
| | | | (0.03 ) | | | | | | (0.00 ) | | | | | | (0.03 ) | | |
Diluted loss for the year attributable to the shareholders of the Company
|
| | | | (0.03 ) | | | | | | (0.00 ) | | | | | | (0.03 ) | | |
Earnings per share from continuing operations
|
| | | | |||||||||||||||
Basic loss from continuing operations attributable to the shareholders of the Company
|
| | | | (0.03 ) | | | | | | 0.00 | | | | | | (0.03 ) | | |
Diluted loss from continuing operations attributable to the shareholders of the Company
|
| | | | (0.03 ) | | | | | | 0.00 | | | | | | (0.03 ) | | |
Earnings per share from discontinued operations
|
| | | | |||||||||||||||
Basic (loss)/profit from discontinued operations attributable to the shareholder of the Company
|
| | | | (0.00 ) | | | | | | (0.00 ) | | | | | | (0.00 ) | | |
Diluted (loss)/profit from discontinued operations attributable to the shareholder of the Company
|
| | | $ | (0.00 ) | | | | | $ | (0.00 ) | | | | | $ | (0.00 ) | | |
| | |
Accumulated
Deficit as Reported |
| |
Accumulated
Deficit as Restated |
| |
Accumulated
other comprehensive Income as Reported |
| |
Accumulated
other comprehensive Income as Restated |
| |
Total Equity
as Reported |
| |
Total Equity
as Restated |
| ||||||||||||||||||
Net loss
|
| | | $ | (552,622 ) | | | | | $ | (587,882 ) | | | | | $ | — | | | | | $ | — | | | | | $ | (561,385 ) | | | | | $ | (596,645 ) | | |
Foreign currency translation loss
|
| | | | — | | | | | | — | | | | | | (602,445 ) | | | | | | (601,622 ) | | | | | | (807,847 ) | | | | | | (807,024 ) | | |
Disposal of a subsidiary
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,986,534 ) | | | | | | (5,986,534 ) | | |
Balance as of March 31,
2017 |
| | | $ | (587,437 ) | | | | | $ | (622,697 ) | | | | | $ | (1,108,585 ) | | | | | $ | (1,107,762 ) | | | | | $ | 9,665,106 | | | | | $ | 9,630,669 | | |
|
| | |
For The Years Ended March 31, 2017
|
| |||||||||||||||
| | |
As Previously
Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Net loss from continuing operations
|
| | | $ | (539,477 ) | | | | | | 29,708 | | | | | | (509,769 ) | | |
Loss on disposal of a subsidiary
|
| | | | 64,968 | | | | | | (64,968 ) | | | | | | — | | |
Accrued expenses and other liabilities
|
| | | | 7,422 | | | | | | 35,260 | | | | | | 42,682 | | |
| | |
Fair value
|
| |||
Net tangible assets
|
| | | $ | 3,735 | | |
Platform
|
| | | | 4,230,000 | | |
User relationships
|
| | | | 395,000 | | |
Goodwill
|
| | | | 5,817,308 | | |
Total purchase consideration
|
| | |
$
|
10,446,043
|
| |
|
| | |
For the Year Ended March 31, 2017
|
| |||||||||||||||||||||
| | |
Senmiao
|
| |
Acquisition*
|
| |
Acquisition
adjustments |
| |
Pro Forma
Financial Data |
| ||||||||||||
| | |
Restated
|
| | | | | | | | | | | | | |
Restated
|
| ||||||
Revenues
|
| | | $ | 73,237 | | | | | $ | 118,534 | | | | | | — | | | | | $ | 191,771 | | |
Gross revenues
|
| | | | 73,237 | | | | | | 118,534 | | | | | | — | | | | | | 191,771 | | |
Operating expenses | | | | | | ||||||||||||||||||||
Selling, general and administrative expenses
|
| | | | (258,772 ) | | | | | | (69,806 ) | | | | | | — | | | | | | (328,578 ) | | |
Amortization of intangible assets
|
| | | | (324,710 ) | | | | | | — | | | | | | (319,074 ) (1) | | | | | | (643,784 ) | | |
Total operating expenses
|
| | | | (583,482 ) | | | | | | (69,806 ) | | | | | | (319,074 ) | | | | | | (972,362 ) | | |
(Loss)/Income from operations
|
| | | | (510,245 ) | | | | | | 48,728 | | | | | | (319,074 ) | | | | | | (780,591 ) | | |
Other income | | | | | | ||||||||||||||||||||
Interest income
|
| | | | 30 | | | | | | — | | | | | | — | | | | | | 30 | | |
Other income, net
|
| | | | 446 | | | | | | — | | | | | | — | | | | | | 446 | | |
Total other income
|
| | | | 476 | | | | | | — | | | | | | — | | | | | | 476 | | |
(Loss)/Income Before Income Taxes
|
| | | | (509,769 ) | | | | | | 48,728 | | | | | | (319,074 ) | | | | | | (780,115 ) | | |
Income tax recovery/(expense)
|
| | | | — | | | | | | (12,290 ) | | | | | | 12,290 (2) | | | | | | — | | |
Net (Loss)/Income from continuing operations
|
| | | | (509,769 ) | | | | | | 36,438 | | | | | | (306,784 ) | | | | | | (780,115 ) | | |
Net loss from discontinued operations
|
| | | | (86,876 ) | | | | | | — | | | | | | — | | | | | | (86,876 ) | | |
Net (Loss)/Income
|
| | | $ | (596,645 ) | | | | | $ | 36,438 | | | | | $ | (306,784 ) | | | | | $ | (866,991 ) | | |
|
| | |
For the six
months ended September 30, 2016 |
| |
For the year
ended March 31, 2016 |
| ||||||
| | |
(Restated)
|
| | ||||||||
Sales
|
| | | $ | 12,936 | | | | | $ | 88,992 | | |
General and administrative expenses
|
| | | | (35,088 ) | | | | | | (92,760 ) | | |
Other income
|
| | | | 244 | | | | | | 8,970 | | |
Income tax expense
|
| | | | — | | | | | | (753 ) | | |
Loss on disposal of a subsidiary
|
| | | | (64,968 ) | | | | | | — | | |
Net (loss)/income from discontinued operations
|
| | | $ | (86,876 ) | | | | | $ | 4,449 | | |
|
| | |
September 30,
2016 |
| |
March 31,
2016 |
| ||||||
Cash and cash equivalents
|
| | | $ | 1,084 | | | | | $ | 1,948 | | |
Due from related parties
|
| | | | 9,270,711 | | | | | | 9,864,099 | | |
Other current assets
|
| | | | 7,511,162 | | | | | | 7,768,428 | | |
Long-term investment
|
| | | | 2,248,801 | | | | | | 2,325,816 | | |
Assets of disposal group classified as held for sale
|
| | | $ | 19,031,758 | | | | | $ | 19,960,291 | | |
Due to related parties
|
| | | $ | 3,930,649 | | | | | $ | 4,415,346 | | |
Other current liabilities
|
| | | | 134,774 | | | | | | 43,197 | | |
|
| | |
September 30,
2016 |
| |
March 31,
2016 |
| ||||||
Liabilities directly associated with the assets classified as held for sale
|
| | | $ | 4,065,423 | | | | | $ | 4,458,543 | | |
Non-controlling interest in net assets of discontinued operation
|
| | | $ | 5,986,534 | | | | |||||
Company’s interest in net assets of discontinued operation
|
| | | | 8,979,801 | | | | |||||
Less: Cash consideration received from disposal of the subsidiary
|
| | | | 8,914,833 | | | | |||||
Loss on disposal of a subsidiary
|
| | | $ | 64,968 | | | |
| | |
March 31, 2017
|
| |
March 31, 2016
|
| ||||||
Due from a third party
|
| | | $ | — | | | | | $ | 1,550,544 | | |
Staff IOU
|
| | | | 8,654 | | | | | | — | | |
Prepaid expenses
|
| | | | 6,961 | | | | | | — | | |
Advance to a supplier
|
| | | | 3,309 | | | | | | — | | |
Others
|
| | | | 552 | | | | | | | | |
| | | | $ | 19,476 | | | | | $ | 1,550,544 | | |
|
| | |
Useful life
|
| |
March 31, 2017
|
| |
March 31, 2016
|
| ||||||
Purchased computer equipment
|
| |
3 years
|
| | | $ | 1,971 | | | | | $ | — | | |
Computer equipment acquired in the Acquisition (Note 3)
|
| |
2 years
|
| | | | 3,616 | | | | |||||
Less: accumulated depreciation
|
| | | | | | | (939 ) | | | | | | — | | |
| | | | | | | $ | 4,648 | | | | | $ | — | | |
|
| | |
Fair value
|
| |||
Net tangible assets
|
| | | $ | 3,735 | | |
Platform
|
| | | | 4,230,000 | | |
User relationships
|
| | | | 395,000 | | |
Goodwill
|
| | | | 5,817,308 | | |
Total purchase consideration
|
| | |
$
|
10,446,043
|
| |
|
| | |
Useful life
|
| |
March 31, 2017
|
| |
March 31, 2016
|
| ||||||
| | |
(years)
|
| | | ||||||||||
User relationship
|
| |
10
|
| | | $ | 382,405 | | | | | $ | — | | |
Less: accumulated amortization
|
| | | | | | | (19,120 ) | | | | | | — | | |
| | | | | | | $ | 363,285 | | | | |
$
|
—
|
| |
Platform
|
| |
7
|
| | | $ | 4,095,124 | | | | | $ | — | | |
Software
|
| | | | | | | 77,055 | | | | |||||
Less: accumulated amortization
|
| | | | | | | (298,013 ) | | | | | | — | | |
| | | | | | |
$
|
3,874,166
|
| | | | $ | — | | |
|
| | |
March 31, 2017
|
| |
March 31, 2016
|
| ||||||
Other payable for intangible assets
|
| | | $ | 19,010 | | | | | $ | — | | |
Accrued payroll and welfare
|
| | | | 68,976 | | | | | | 3,088 | | |
Other tax payable
|
| | | | 2,270 | | | | | | — | | |
Others current liabilities
|
| | | | — | | | | | | 28,497 | | |
| | | | $ | 90,256 | | | | | $ | 31,585 | | |
|
|
PRC
|
| | | | 25 % | | |
|
United States
|
| | | | 35 % | | |
| | |
Years ended March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Current income tax expense
|
| | | $ | — | | | | | $ | — | | |
Deferred income tax benefit
|
| | | | — | | | | | | — | | |
| | | | $ | — | | | | | $ | — | | |
|
| | |
Years ended March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
Restated
|
| | ||||||||
Loss from continuing operations before income taxes
|
| | | $ | (509,769 ) | | | | | $ | (18,723 ) | | |
Income tax benefit (expense) at the PRC statutory rate
|
| | | | 127,442 | | | | | | 4,681 | | |
International tax rate differential
|
| | | | — | | | | | | — | | |
Non-deductible expenses
|
| | | | (376 ) | | | | | | — | | |
Change in valuation allowance
|
| | | | (127,066 ) | | | | | | (4,681 ) | | |
| | | | $ | — | | | | | $ | — | | |
|
| | |
March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
Restated
|
| | ||||||||
Deferred tax assets
|
| | | $ | 131,874 | | | | | $ | 7,855 | | |
Less: valuation allowance
|
| | | | (131,874 ) | | | | | | (7,855 ) | | |
| | | | $ | — | | | | | $ | — | | |
|
Name
|
| |
Relationship with the Company
|
|
Jun Wang | | |
2.72% Shareholder of the Company and 4.9% shareholder of Sichuan Senmiao
as of March 31, 2017 |
|
Xiang Hu | | |
52.22% Shareholder of the Company and 90% shareholder of Sichuan Senmiao
as of March 31, 2017 |
|
Hong Li | | |
5.1% Shareholder and management member of Sichuan Senmiao as of March 31, 2017
|
|
| | |
March 31, 2017
|
| |
March 31, 2016
|
| ||||||
Jun Wang
|
| | | $ | 43,534 | | | | | $ | — | | |
Xiang Hu
|
| | | | 290,227 | | | | | | — | | |
| | | | $ | 333,761 | | | | |
$
|
—
|
| |
|
| | |
Rental
payments |
| |||
Year ending June 30, 2018
|
| | | $ | 116,052 | | |
Year ending June 30, 2019
|
| | | | 110,789 | | |
Year ending June 30, 2020 and thereafter
|
| | | | 83,092 | | |
| | | | $ | 309,933 | | |
|
| | |
March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
ASSETS | | | | ||||||||||
Total Assets
|
| | | $ | — | | | | | $ | — | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | ||||||||||
Total Liabilities
|
| | | | — | | | | | | — | | |
Shareholders’ Equity | | | | ||||||||||
Common stocks (par value $0.0001 per share, 100,000,000 shares authorized; 20,250,000 and 20,250,000 shares issued and outstanding at March 31, 2017 and 2016, respectively)
|
| | | $ | 2,025 | | | | | $ | 2,025 | | |
Additional paid-in capital
|
| | | | (2,025 ) | | | | | | (2,025 ) | | |
Retained earnings
|
| | | | — | | | | | | — | | |
Total Shareholders’ Equity
|
| | | | — | | | | | | — | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | — | | | | | $ | — | | |
|
| | |
For the years ended March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Operating expenses: | | | | ||||||||||
General and administrative expenses
|
| | | $ | — | | | | | $ | — | | |
Total operating expenses
|
| | | | — | | | | | | — | | |
Net Loss
|
| | | $ | — | | | | | $ | — | | |
Net loss per common share – basic and diluted
|
| | | | — | | | | | | — | | |
Weighted average number of common shares – basic and diluted
|
| | | | 20,250,000 | | | | | | 20,250,000 | | |
| | |
For the years ended March 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Cash Flows from Operating Activities
|
| | | $ | — | | | | | $ | — | | |
Cash Flows from Investing Activities
|
| | | | — | | | | | | — | | |
Cash Flows from Financing Activities
|
| | | | — | | | | | | — | | |
Changes in cash and cash equivalents
|
| | | | — | | | | | | — | | |
Cash and cash equivalents, beginning of year
|
| | | | — | | | | | | — | | |
Cash and cash equivalents, end of year
|
| | | $ | — | | | | | $ | — | | |
Supplemental Cash Flows Information: | | | | ||||||||||
Income tax paid
|
| | | $ | — | | | | | $ | — | | |
Interest paid
|
| | | $ | — | | | | | $ | — | | |
Non-cash investing and financing activities: | | | | ||||||||||
Shares issued to founders
|
| | | $ | — | | | | | $ | — | | |
| | |
Note
|
| |
December 31,
2017 |
| |
March 31,
2017 |
| |||||||||
| | | | | | | | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | | | $ | 85,202 | | | | | $ | 161,292 | | |
Prepayments, receivables and other assets
|
| | | | 3 | | | | | | 9,370 | | | | | | 19,476 | | |
Total Current Assets
|
| | | | | | | | | | 94,572 | | | | | | 180,768 | | |
Property and equipment, net
|
| | | | 4 | | | | | | 6,902 | | | | | | 4,648 | | |
Other Assets | | | | | | | | | | | | | | | | | | | |
Platform
|
| | | | 5 | | | | | | 3,629,823 | | | | | | 3,874,166 | | |
User relationship
|
| | | | 5 | | | | | | 354,392 | | | | | | 363,285 | | |
Goodwill
|
| | | | | | | | | | 5,964,876 | | | | | | 5,631,819 | | |
Total Assets
|
| | | | | | | | | $ | 10,050,565 | | | | | $ | 10,054,686 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | |
Accrued expenses and other liabilities
|
| | | | 6 | | | | | $ | 206,163 | | | | | $ | 90,256 | | |
Due to shareholders
|
| | | | 10 | | | | | | 688,150 | | | | | | 333,761 | | |
Total Current Liabilities
|
| | | | | | | | | | 894,313 | | | | | | 424,017 | | |
Commitments and Contingencies
|
| | | | | | | | | | — | | | | | | — | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | | | | |
Common stocks (par value $0.0001 per share, 100,000,000 shares
authorized; 22,500,000 and 20,250,000 shares issued and outstanding at December 31, 2017 and March 31, 2017, respectively) |
| | | | 8 | | | | | $ | 2,250 | | | | | $ | 2,025 | | |
Additional Paid-in capital
|
| | | | | | | | | | 11,458,878 | | | | | | 11,359,103 | | |
Subscription receivable
|
| | | | | | | | | | (450 ) | | | | | | — | | |
Accumulated deficit
|
| | | | | | | | | | (1,733,837 ) | | | | | | (622,697 ) | | |
Accumulated other comprehensive loss
|
| | | | | | | | | | (570,589 ) | | | | | | (1,107,762 ) | | |
Total equity
|
| | | | | | | | | | 9,156,252 | | | | | | 9,630,669 | | |
Total Liabilities and Shareholders’ Equity
|
| | | | | | | | | $ | 10,050,565 | | | | | $ | 10,054,686 | | |
|
| | |
Note
|
| |
For the Three Months Ended
December 31 |
| |
For the Nine Months Ended
December 31 |
| ||||||||||||||||||
| | | | | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
| | | | | |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||
Revenues
|
| | | | | | $ | 152,538 | | | | | $ | 29,779 | | | | | $ | 335,498 | | | | | $ | 29,779 | | |
Gross revenues
|
| | | | | | | 152,538 | | | | | | 29,779 | | | | | | 335,498 | | | | | | 29,779 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses
|
| | | | | | | (288,620 ) | | | | | | (41,987 ) | | | | | | (960,349 ) | | | | | | (53,697 ) | | |
Amortization of intangible assets
|
| | | | | | | (165,206 ) | | | | | | (161,646 ) | | | | | | (488,210 ) | | | | | | (161,646 ) | | |
Total operating expenses
|
| | | | | | | (453,826 ) | | | | | | (203,633 ) | | | | | | (1,448,559 ) | | | | | | (215,343 ) | | |
Loss from operations
|
| | | | | | | (301,288 ) | | | | | | (173,854 ) | | | | | | (1,113,061 ) | | | | | | (185,564 ) | | |
Other income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | 58 | | | | | | 2 | | | | | | 210 | | | | | | 3 | | |
Other income, net
|
| | | | | | | 13 | | | | | | — | | | | | | 1,711 | | | | | | — | | |
Total other income
|
| | | | | | | 71 | | | | | | 2 | | | | | | 1,921 | | | | | | 3 | | |
Loss before income taxes
|
| | | | | | | (301,217 ) | | | | | | (173,852 ) | | | | | | (1,111,140 ) | | | | | | (185,561 ) | | |
Income tax expense
|
| |
9
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss from continuing operations
|
| | | | | | | (301,217 ) | | | | | | (173,852 ) | | | | | | (1,111,140 ) | | | | | | (185,561 ) | | |
Net loss from discontinued operations, net of tax
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (86,876 ) | | |
Net Loss
|
| | | | | | | (301,217 ) | | | | | | (173,852 ) | | | | | | (1,111,140 ) | | | | | | (272,437 ) | | |
Net loss attributable to non-controlling interests
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,763 ) | | |
Net loss attributable to Senmiao Technology Limited
|
| | | | | | | (301,217 ) | | | | | | (173,852 ) | | | | | | (1,111,140 ) | | | | | | (263,674 ) | | |
Net loss attributable to Senmiao Technology Limited from continuing operation
|
| | | | | | | (301,217 ) | | | | | | (173,852 ) | | | | | | (1,111,140 ) | | | | | | (185,561 ) | | |
Net loss attributable to Senmiao Technology Limited from discontinued operation
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (78,113 ) | | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment
|
| | | | | | | 207,125 | | | | | | (566,794 ) | | | | | | 537,173 | | | | | | (1,050,106 ) | | |
Comprehensive Loss
|
| | | | | | | (94,092 ) | | | | | | (740,646 ) | | | | | | (573,967 ) | | | | | | (1,322,543 ) | | |
Less: comprehensive loss attributable to non-controlling interests
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (214,165 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited
|
| | | | | | $ | (94,092 ) | | | | | $ | (740,646 ) | | | | | $ | (573,967 ) | | | | | $ | (1,108,378 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited from continuing operation
|
| | | | | | | (94,092 ) | | | | | | (740,646 ) | | | | | | (573,967 ) | | | | | | (1,110,592 ) | | |
Comprehensive loss attributable to Senmiao Technology Limited from discontinued operation
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,214 | | |
Weighted average number of common shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | | | | 22,500,000 | | | | | | 20,250,000 | | | | | | 21,669,455 | | | | | | 20,250,000 | | |
Diluted
|
| | | | | | | 22,500,000 | | | | | | 20,250,000 | | | | | | 21,669,455 | | | | | | 20,250,000 | | |
Loss per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic loss for the period attributable to the shareholders of the Company
|
| | | | | | $ | (0.01 ) | | | | | $ | (0.00 ) | | | | | $ | (0.05 ) | | | | | $ | (0.01 ) | | |
Diluted loss for the year attributable to the shareholders of the Company
|
| | | | | | | (0.01 ) | | | | | | (0.00 ) | | | | | | (0.05 ) | | | | | | (0.01 ) | | |
Loss per share from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic loss from continuing operations attributable to the shareholders of the Company
|
| | | | | | | (0.01 ) | | | | | | (0.00 ) | | | | | | (0.05 ) | | | | | | (0.01 ) | | |
Diluted loss from continuing operations attributable to the shareholders of the Company
|
| | | | | | | (0.01 ) | | | | | | (0.00 ) | | | | | | (0.05 ) | | | | | | (0.01 ) | | |
Loss per share from discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic loss from discontinued operations attributable to the shareholder
of the Company |
| | | | | | | — | | | | | | (0.00 ) | | | | | | — | | | | | | (0.00 ) | | |
Diluted loss from discontinued operations attributable to the shareholder of the Company
|
| | | | | | $ | — | | | | | $ | (0.00 ) | | | | | $ | — | | | | | $ | (0.00 ) | | |
| | |
Common Stock (note 8)
|
| |
Additional
Paid-in capital |
| |
Subscription
receivable |
| |
Accumulated
deficit |
| |
Accumulated
other comprehensive income |
| |
Non-controlling
interest |
| |
Total equity
|
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Par value
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2015
|
| | | | 20,250,000 | | | | | $ | 2,025 | | | | | $ | 11,359,103 | | | | | $ | — | | | | | $ | (18,761 ) | | | | | $ | 77,236 | | | | | $ | 6,532,862 | | | | | $ | 17,952,465 | | |
Net (loss)/income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (16,054 ) | | | | | | — | | | | | | 1,780 | | | | | | (14,274 ) | | |
Foreign currency translation loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (583,376 ) | | | | | | (333,943 ) | | | | | | (917,319 ) | | |
Balance as of March 31, 2016
|
| | | | 20,250,000 | | | | | $ | 2,025 | | | | | $ | 11,359,103 | | | | | $ | — | | | | | $ | (34,815 ) | | | | | $ | (506,140 ) | | | | | $ | 6,200,699 | | | | | $ | 17,020,872 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (587,882 ) | | | | | | — | | | | | | (8,763 ) | | | | | | (596,645 ) | | |
Foreign currency translation loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (601,622 ) | | | | | | (205,402 ) | | | | | | (807,024 ) | | |
Disposal of a subsidiary
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,986,534 ) | | | | | | (5,986,534 ) | | |
Balance as of March 31, 2017
|
| | | | 20,250,000 | | | | | $ | 2,025 | | | | | $ | 11,359,103 | | | | | $ | — | | | | | $ | (622,697 ) | | | | | $ | (1,107,762 ) | | | | | $ | — | | | | | $ | 9,630,669 | | |
Issuance of common stocks
|
| | | | 2,250,000 | | | | | | 225 | | | | | | 99,775 | | | | | | (450 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | 99,550 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,111,140 ) | | | | | | — | | | | | | — | | | | | | (1,111,140 ) | | |
Foreign currency translation loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 537,173 | | | | | | — | | | | | | 537,173 | | |
Balance as of December 31, 2017 (unaudited)
|
| | | | 22,500,000 | | | | | $ | 2,250 | | | | | $ | 11,458,878 | | | | | $ | (450 ) | | | | | $ | (1,733,837 ) | | | | | $ | (570,589 ) | | | | | $ | — | | | | | $ | 9,156,252 | | |
|
| | |
For the Nine Months Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,111,140 ) | | | | | $ | (185,561 ) | | |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation of property and equipment
|
| | | | 2,615 | | | | | | 466 | | |
Amortization of intangible assets
|
| | | | 488,210 | | | | | | 161,646 | | |
Shares issued to three individuals for consulting services
|
| | | | 99,550 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepayments, receivables and other assets
|
| | | | 6,797 | | | | | | 47,886 | | |
Accrued expenses and other liabilities
|
| | | | 107,141 | | | | | | (15,799 ) | | |
Due to related parties
|
| | | | (10,818 ) | | | | | | — | | |
Net Cash (Used in)/Provided by Operating Activities
|
| | | | (417,645 ) | | | | | | 8,638 | | |
Net Cash (Used in)/Provided by Operating Activities from Continuing Operations
|
| | |
|
(417,645
)
|
| | | |
|
9,684
|
| |
Net Cash Used in Operating Activities from Discontinued Operations
|
| | | | — | | | | | | (1,046 ) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Disposal of a subsidiary
|
| | | | | | | | | | 8,914,833 | | |
Purchase of property and equipment
|
| | | | (412 ) | | | | | | — | | |
Purchase of intangible assets
|
| | | | | | | | | | (23,960 ) | | |
Consideration paid in a business acquisition
|
| | | | | | | | | | (8,984,828 ) | | |
Net Cash Used in Investing Activities
|
| | | | (412 ) | | | | | | (93,955 ) | | |
Net Cash Used in Investing Activities from Continuing Operations
|
| | | | (412 ) | | | | | | — | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | |
Proceeds borrowed from shareholders
|
| | | | 335,092 | | | | | | — | | |
Net Cash Provided by Financing Activities
|
| | | | 335,092 | | | | | | — | | |
Effect of Exchange Rate Changes on Cash
|
| | | | 6,875 | | | | | | 85,369 | | |
Net (Decrease)/Increase In Cash
|
| | | | (76,090 ) | | | | | | 52 | | |
Cash and cash equivalents at Beginning of Period
|
| | | | 161,292 | | | | | | 165 | | |
Cash and cash equivalents at End of Period
|
| | | $ | 85,202 | | | | | $ | 217 | | |
Supplemental Cash Flow Information | | | | | | | | | | | | | |
Cash paid for interest expense
|
| | | $ | — | | | | | $ | — | | |
Cash paid for income tax
|
| | | $ | — | | | | | $ | — | | |
|
| | |
December 31,
2017 |
| |
March 31,
2017 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
Total assets
|
| | | $ | 10,050,565 | | | | | $ | 10,054,686 | | |
Total liabilities
|
| | | $ | 894,313 | | | | | $ | 424,017 | | |
| | |
December 31,
|
||||||||
| | |
2017
|
| |
2016
|
|||||
| | |
(unaudited)
|
| |
(unaudited)
|
|||||
Net revenue
|
| | | $ | 335,498 | | | | | | 29,779 |
Net loss
|
| | | | (1,011,590 ) | | | | | | (185,561 ) |
Net Cash (Used in)/Provided Operating Activities
|
| | | | (417,645 ) | | | | | | 8,638 |
Net Cash Used in Investing Activities
|
| | | | (412 ) | | | | | | (93,955 ) |
Net Cash Provided by Financing Activities
|
| | | | 335,092 | | | | | | — |
| | |
December 31,
2017 |
| |
March 31,
2017 |
| ||||||
Balance sheet items, except for equity accounts
|
| | | | 6.5064 | | | | | | 6.8912 | | |
| | |
For the nine months
ended December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Items in the statements of operations and comprehensive loss, and statements of cash flows
|
| | | | 6.7146 | | | | | | 6.6779 | | |
| Computer equipment purchased | | |
3 years
|
|
| Computer equipment obtained in the Acquisition | | |
2 years
|
|
| Platform | | |
7 years
|
|
| Customer relationship | | |
10 years
|
|
| | |
December 31,
2017 |
| |
March 31,
2017 |
||||||
| | |
(unaudited)
|
| | |||||||
Staff IOU
|
| | | $ | 3,838 | | | | | $ | 8,654 | |
Prepaid expenses
|
| | | | 3,391 | | | | | | 6,961 | |
Advance to a supplier
|
| | | | — | | | | | | 3,309 | |
Others
|
| | | | 2,141 | | | | | | 552 | |
| | | | $ | 9,370 | | | | | $ | 19,476 | |
|
| | |
Useful life
|
| |
December 31,
2017 |
| |
March 31,
2017 |
| ||||||
| | | | | |
(unaudited)
|
| | | | | | | |||
Purchased computer equipment
|
| |
3 years
|
| | | $ | 6,764 | | | | | $ | 1,971 | | |
Computer equipment acquired in the Acquisition
|
| |
2 years
|
| | | | 3,830 | | | | | | 3,616 | | |
Less: accumulated depreciation
|
| | | | | | | (3,692 ) | | | | | | (939 ) | | |
| | | | | | | $ | 6,902 | | | | | $ | 4,648 | | |
|
| | |
Fair value
|
| |||
Net tangible assets
|
| | | $ | 3,735 | | |
Platform
|
| | | | 4,230,000 | | |
User relationships
|
| | | | 395,000 | | |
Goodwill
|
| | | | 5,817,308 | | |
Total purchase consideration
|
| | |
$
|
10,446,043
|
| |
|
| | |
Useful life
|
| |
December 31,
2017 |
| |
March 31,
2017 |
| ||||||
| | | | | |
(unaudited)
|
| | | | | | | |||
User relationship
|
| |
10
|
| | | $ | 405,020 | | | | | $ | 382,405 | | |
Less: accumulated amortization
|
| | | | | | | (50,628 ) | | | | | | (19,120 ) | | |
| | | | | | | $ | 354,392 | | | | | $ | 363,285 | | |
Platform
|
| |
7
|
| | | $ | 4,337,303 | | | | | $ | 4,095,124 | | |
Software
|
| | | | | | | 81,612 | | | | | | 77,055 | | |
Less: accumulated amortization
|
| | | | | | | (789,092 ) | | | | | | (298,013 ) | | |
| | | | | | | $ | 3,629,823 | | | | | $ | 3,874,166 | | |
|
| | |
December 31,
2017 |
| |
March 31,
2017 |
||||||
| | |
(unaudited)
|
| | |||||||
Other payable for intangible assets
|
| | | $ | — | | | | | $ | 19,010 | |
Accrued payroll and welfare
|
| | | | 160,318 | | | | | | 68,976 | |
Other tax payable
|
| | | | 8,972 | | | | | | 2,270 | |
Receipts in advance
|
| | | | 810 | | | | | | — | |
Others current liabilities
|
| | | | 36,063 | | | | | | — | |
| | | | $ | 206,163 | | | | | $ | 90,256 | |
|
|
PRC
|
| | | | 25 % | | |
|
United States
|
| | | | 35 % | | |
| | |
For the Three Months
Ended December 31 |
| |
For the Nine months
Ended December 31 |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||
Current income tax expense
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Deferred income tax benefit
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
| | |
December 31,
2017 |
| |
March 31,
2017 |
| ||||||
| | |
(unaudited)
|
| | ||||||||
Deferred tax assets arising from tax losses carried forward
|
| | | $ | 400,787 | | | | | $ | 131,874 | | |
Less: valuation allowance
|
| | | | (400,787 ) | | | | | | (131,874 ) | | |
| | | | $ | — | | | | |
$
|
—
|
| |
|
Name
|
| |
Relationship with the Company
|
|
Jun Wang | | |
2.45% Shareholder of the Company and 2.45% shareholder of Sichuan Senmiao
as of December 31, 2017 |
|
Xiang Hu | | |
47% Shareholder of the Company and 87% shareholder of Sichuan Senmiao
as of December 31, 2017 |
|
Hong Li | | |
2.05% Shareholder and management member of Sichuan Senmiao
as of December 31, 2017 |
|
| | |
December 31, 2017
|
| |
March 31, 2017
|
| ||||||
| | |
(unaudited)
|
| | ||||||||
Jun Wang
|
| | | $ | 68,815 | | | | | $ | 43,534 | | |
Xiang Hu
|
| | | | 619,335 | | | | | | 290,227 | | |
| | | | $ | 688,150 | | | | | $ | 333,761 | | |
|
| | |
Rental
payments |
| |||
Year ending December 31, 2018
|
| | | $ | 125,079 | | |
Year ending December 31, 2019
|
| | | | 117,341 | | |
Year ending December 31, 2020 and thereafter
|
| | | | — | | |
| | | | $ | 242,420 | | |
|
| | |
December 31,
2017 |
| |
March 31,
2017 |
| ||||||
| | |
(unaudited)
|
| | ||||||||
ASSETS | | | | | | | | | | | | | |
Total Assets
|
| | | $ | — | | | | | $ | — | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Total Liabilities
|
| | | | — | | | | | | — | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Common stocks (par value $0.0001 per share, 100,000,000 shares authorized; 22,500,000 and 20,250,000 shares issued and outstanding at December 31, 2017 and March 31, 2017, respectively*)
|
| | | $ | 2,250 | | | | | $ | 2,025 | | |
Additional paid-in capital
|
| | | | 97,750 | | | | | | (2,025 ) | | |
Subscription receivable
|
| | | | (450 ) | | | | | | — | | |
Retained earnings
|
| | | | (99,550 ) | | | | | | — | | |
Total Shareholders’ Equity
|
| | | | — | | | | | | — | | |
Total Liabilities and Shareholders’ Equity
|
| | | $ | — | | | | | $ | — | | |
|
| | |
For the Three Months Ended
December 31 |
| |
For the Nine months Ended
December 31 |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| |
(unaudited)
|
| ||||||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative expenses
|
| | | $ | (99,550 ) | | | | | $ | — | | | | | $ | (99,550 ) | | | | | $ | — | | |
Total operating expenses
|
| | | | (99,550 ) | | | | | | — | | | | | | (99,550 ) | | | | | | — | | |
Net Loss
|
| | | $ | (99,550 ) | | | | | $ | — | | | | | $ | (99,550 ) | | | | | $ | — | | |
Net loss per common share – basic and diluted
|
| | | | (0.00 ) | | | | | | — | | | | | | (0.00 ) | | | | | | — | | |
Weighted average number of common shares – basic and diluted
|
| | | | 22,500,000 | | | | | | 20,250,000 | | | | | | 21,669,455 | | | | | | 20,250,000 | | |
| | |
For the nine months ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
Cash Flows from Operating Activities
|
| | | $ | — | | | | | $ | — | | |
Cash Flows from Investing Activities
|
| | | | — | | | | | | — | | |
Cash Flows from Financing Activities
|
| | | | — | | | | | | — | | |
Changes in cash and cash equivalents
|
| | | | — | | | | | | — | | |
Cash and cash equivalents, beginning of year
|
| | | | — | | | | | | — | | |
Cash and cash equivalents, end of year
|
| | | $ | — | | | | | $ | — | | |
Supplemental Cash Flows Information: | | | | | | | | | | | | | |
Income tax paid
|
| | | $ | — | | | | | $ | — | | |
Interest paid
|
| | | $ | — | | | | | $ | — | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Shares issued to founders
|
| | | $ | — | | | | | $ | — | | |
|
SEC Registration Fees
|
| | | $ | 2,346 | | |
|
FINRA Filing Fees
|
| | | | 3,914 | | |
|
Accounting fees and expenses
|
| | | | 170,536 | | |
|
Printing and engraving expenses
|
| | | | 58,000 | | |
|
Nasdaq Stock Market listing fee
|
| | | | 75,000 | | |
|
Legal fees and expenses
|
| | | | 507,284 | | |
| Miscellaneous (1) | | | | | 515,000 | | |
|
Total
|
| | | | 1,332,080 | | |
|
| | | | SENMIAO TECHNOLOGY LIMITED | | |||
| | | | By: | | | /s/ Xin Chen | |
| | | | | | | Name: Xin Chen | |
| | | | | | | Title: Chief Executive Officer | |
Signature
|
| |
Title
|
| |
Date
|
|
/s/ Xin Chen
Xin Chen
|
| |
Chief Executive Officer
(Principal Executive Officer) |
| | March 13, 2018 | |
/s/ Rong Zhu
Rong Zhu
|
| |
Chief Financial Officer
(Principal Financial and Accounting Officer) |
| | March 13, 2018 | |
*
Xi Wen
|
| | President, Secretary and Chairman | | | March 13, 2018 | |
*
Xiaojuan Lin
|
| | Director | | | March 13, 2018 | |
*
Xiang Hu
|
| | Director | | | March 13, 2018 | |
*
Yulei Rao
|
| | Director | | | March 13, 2018 | |
| *By: | | |
/s/ Xin Chen
|
|
| | | |
Xin Chen
Attorney-In-Fact |
|
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
SENMIAO TECHNOLOGY LIMITED
We consent to the inclusion in the forgoing Registration Statement of SENMIAO TECHNOLOGY LIMITED (the “Company”) on Amendment No.7 to S-1 of our report dated September 28, 2017, except for Notes 1, 11, 15, and 16, which are dated on January 29, 2018, relating to our audit of the consolidated balance sheets as of March 31, 2017 and 2016, and the consolidated statements of operations and comprehensive loss, changes in shareholders’ equity, and cash flows for the years ended March 31, 2016 and 2017.
We also consent to the reference to us under the caption “Experts” in the Registration Statement.
/s/ ZH CPA LLP
Vancouver, BC
March 13, 2018