Senmiao Technology Ltd
For the period ended Sep 30, 2025. Filed Nov 19, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 19, 2025
VAI$2.19+30.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-19.
0001213900-25-078153
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-19.
0001213900-25-112606
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 146 current paragraphs.
64 unchanged; 40 reworded; 22 added; 15 removed; 0 previous and 20 current paragraphs rearranged.
Tables are not compared: 15 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
For the three months ended September 30, 2024, we had other income, net of $388,405, which primarily consist of (1) a gain of $397,775 from deconsolidation of XXTX; (2) penalty income of approximately $28,000 from the customers; (3) income of approximately $3,000 from the disposal of our own vehicles used for operating leases; partially offset by (4) the expense of approximately $20,000 from the termination of our right-of-use assets for an exhibition hall we leased in Changsha; and (5) the miscellaneous expense of approximately $20,000.
Current report
Results of Continuing Operations for the six months ended September 30, 2025 Compared to the six months ended September 30, 2024
Current report
Service fees from NEVs leasing
Current report
Monthly services commissions
Current report
Financing revenues
Current report
Default revenue
Current report
We generated revenues of $8,936 and $26,903 from the automobile purchase services during the six months ended September 30, 2025 and 2024, respectively. The decrease was due to the number of automobiles purchase transactions decreased to 7 during the six months ended September 30, 2025 from 19 in the same period in 2024.
Current report
Cost of Revenues
Current report
Gross Profit
Current report
We had a gross profit of $117,518 from our Auto Operating Leasing during the six months ended September 30, 2025, which increased by $51,805 from a gross profit of $65,713 in the six months ended September 30, 2024. The increase was attributable to the average utilization of the automobiles for operating lease increased from 85.2% in the six months ended September 30, 2024 to 89.9% in the six months ended September 30, 2025. We had a gross profit of $353,525 from our Other Automobile transaction and related Services during the six months ended September 30, 2025, which increased by $69,369 from a gross profit of $284,156 in the six months ended September 30, 2024. The increase was attributable to our Service fees from NEVs leasing increased in the six months ended September 30, 2025 based on our timely product solutions in accordance which adjusted with different market conditions. As a result, our overall gross profit margin for the six months ended September 30, 2025 increased to approximately 26.2% from approximately 21.5% for the six months ended September 30, 2024.
Current report
Selling, general and administrative expenses primarily consist of salary and employee benefits, office rental expense, travel expenses, and other expenses. Selling, general and administrative expenses increased from $1,384,149 for the six months ended September 30, 2024 to $1,715,500 for the six months ended September 30, 2025, representing an increase of $331,351, or approximately 23.9%. The decrease mainly consisted of (1) the increase of $553,279 in professional service fees such as financial, market consulting and outsourced operating services related to automobile lease, mainly attributable to the streamlining of the workforce in Chengdu, thereby sharing venue and personnel resources with Jinkailong, which resulted the corresponding service fee obligations; partly offset by (2) a decrease of $177,153 in salary and employee benefits as the average monthly number of our employees decreased from 62 for the six months ended September 30, 2024 to 37 for the six months ended September 30, 2025; and (3) a decrease of $44,775 in other miscellaneous expenses for the six months ended September 30, 2025.
Current report
For the six months ended September 30, 2024, we had other income, net of $439,864, which primarily consist of the (1) a gain of $397,775 from deconsolidation of XXTX; (2) penalty income of approximately $60,000 from the customers; (3) income of approximately $6,000 from the disposal of our own vehicles used for operating leases; partially offset by (4) the expense of approximately $20,000 from the termination of our right-of-use assets for an exhibition hall we leased in Changsha, and (5) the miscellaneous expense of approximately $4,000.
Current report
Interest Expense on Finance Leases
Current report
Income Tax Expense
Current report
Net loss from continuing operations
Current report
As a result of the foregoing, net loss from continuing operations for the six months ended September 30, 2025 was $1,000,168, representing an increase of $25,544 from net loss of $974,624 for the six months ended September 30, 2024.
Current report
For the three and six months ended September 30, 2024, XXTX provided provision for credit losses of $173,278 against receivables from a prepaid software development fee and a deposit due to the termination on the development which resulting from the discontinuing of the business.
Current report
For the three and six months ended September 30, 2024, XXTX had other income, net of $37,017 and $33,214, respectively, which primarily due to the miscellaneous income in its daily operations.
Current report
For the three and six months ended September 30, 2024, XXTX had deferred tax benefit of $2,575 and $4,510, respectively, resulted from deferred tax.
Current report
Although we have completed one financing transaction with gross proceeds of $0.66 million as of the filing date of this Report and expect to complete another with gross proceeds of $2.8 million by November 21, 2025, we still determine there is substantial doubt about our ability to continue as a going concern. This is due to the cost incurred to obtain the financing and the planned settlement of payables, which result in the financing obtained not being sufficient for us to maintain a net working capital position for a reasonable period of time (i.e., one year from the filing date of these unaudited condensed consolidated financial statements). Given we are expected to sustain operating cash outflow, there is still substantial doubt on going concern. If we are unable to generate significant revenue, we may be required to curtail or cease its operations. We are trying to alleviate the going concern risk through the following sources:
Current report
For the six months ended September 30, 2024, we had net cash used in investing activities of $271,201, which consisted of the net outflows of $271,250 from continuing operations and net inflows of $49 from discontinued operations. The majority of net cash used in investing activities from continuing operations was (1) a loan to a related party of $137,897; (2) the cash of $148,481 released upon disposal of XXTX; (3) the purchase furniture for office purpose of $1,189; partially offset by (4) the proceeds from sales of the used-automobiles of $16,317.
Current report
Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. The management determined there were no critical accounting estimates.
Removed paragraphs (15)
Previous report
Revenues
Previous report
Selling, General and Administrative Expenses
Previous report
Provision for credit losses
Previous report
Other income, net
Previous report
Revenues
Previous report
Selling, General and Administrative Expenses
Previous report
For the three months ended June 30, 2024, XXTX had deferred tax benefit of $1,935, resulted from deferred tax, while all the subsidiaries of XXTX suffered losses for the three months ended June 30, 2024, no income taxes were recorded for the corresponding period accordingly.
Previous report
We do not believe that the proceeds from our future public offerings and our anticipated cash flows would be sufficient to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business for the next 12 months from the date of this Quarterly Report. We have determined there is substantial doubt about our ability to continue as a going concern. If we are unable to generate significant revenue, we may be required to cease or curtail our operations. We are trying to alleviate the going concern risk through the following sources:
Previous report
For the three months ended June 30, 2025, we had net cash used in investing activities of $385, which was the cash of $385 released upon disposal of Corenel.
Previous report
In presenting the unaudited condensed consolidated financial statements in accordance with U.S. GAAP, management make estimates and assumptions that affect the amounts reported and related disclosures. Estimates, by their nature, are based on judgement and available information. Accordingly, actual results could differ from those estimates. On an ongoing basis, management reviews these estimates and assumptions using the currently available information. Changes in facts and circumstances may cause us to revise our estimates. we base our estimates on past experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are used when accounting for items and matters including, but not limited to the critical accounting estimates as follows.
Previous report
A contract is designated as an asset or a liability and is carried at fair value on a company’s balance sheet, with any changes in fair value recorded in a company’s results of operations. We then determine which options, warrants and embedded features require liability accounting and records the fair value as a derivative liability by using Black-Scholes model. The changes in the values of these instruments are shown in the accompanying consolidated statements of operations and comprehensive loss as “change in fair value of derivative liabilities”.
Previous report
In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires us to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. We adopted this guidance effective April 1, 2023. ASC 326 introduces an approach based on expected losses to estimate the allowance for credit losses, which replaces the previous incurred loss impairment model. The adoption of this guidance did not have a material impact on our consolidated financial statements. Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for credit losses. We estimate the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated economic conditions, customer-specific circumstances, recent payment history and other relevant factors.
Previous report
The balance of other receivables is unsecured and is reviewed periodically to determine whether their carrying value has become impaired. We consider the balances to be impaired if the collectability of the balances becomes doubtful. We use the individual specific valuation method to estimate the allowance for uncollectible balances. The allowance is also based on management’s best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management’s estimate of credit worthiness and the economic environment.
Previous report
As of June 30, 2025 and March 31, 2025, there was no allowance for credit losses of gross accounts receivable balances. The provision is recorded against accounts receivable balances, with a corresponding charge recorded in the consolidated statements of operations and comprehensive loss. Delinquent account balances are written-off against the allowance for credit losses after management has determined that the likelihood of collection is not probable. No allowance for credit losses for accounts receivable as of June 30, 2025 and March 31, 2025. Allowance for credit losses balances amounted to $0 and $17,063 as of June 30, 2025 and March 31, 2025, respectively for deposits and other receivables. Allowance for credit losses balances amounted to $5,232,834 and $5,165,699 as of June 30, 2025 and March 31, 2025, respectively, for amount due from a related party.
Previous report
Long-lived assets, including property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. We assess the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, we would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the three months ended June 30, 2025 and 2024, we did not recognize impairment for property and equipment and intangible assets.
Reworded paragraphs (40)
Previous wording
Since November 22, 2018, the acquisition date of Hunan Ruixi, and as of June 30, 2025, we have facilitated financing for an aggregate of 312 automobiles with a total value of approximately $5.3 million, sold an aggregate of 1,516 automobiles with a total value of approximately $14.5 million and delivered 2,185 automobiles under operating leases and 192 automobiles under financing leases to customers, the vast majority of whom are online ride-hailing drivers.
Current wording
Since November 22, 2018, the acquisition date of Hunan Ruixi, and as of September 30, 2025, we have facilitated financing for an aggregate of 312 automobiles with a total value of approximately $5.3 million, sold an aggregate of 1,516 automobiles with a total value of approximately $14.5 million and delivered 2,234 automobiles under operating leases and 197 automobiles under financing leases to customers, the vast majority of whom are online ride-hailing drivers.
Previous wording
The table below provides a breakdown of the number of vehicles sold or delivered under different leasing arrangements or managed by us and corresponding revenue generated for the three months ended June 30, 2025 and 2024, respectively:
Current wording
The table below provides a breakdown of the number of vehicles sold or delivered under different leasing arrangements or managed by us and corresponding revenue generated for the three and six months ended September 30, 2025 and 2024, respectively:
Previous wording
During the three months ended June 30, 2025, our Auto Operating Leasing, Auto Commissions, Auto Financing and other services income accounted for approximately 80.9%, 4.2%, 2.6% and 12.3% of our total revenue from our automobile transactions and related services, respectively, while our Auto Operating Leasing, Auto Commissions, Auto Financing, and other services income accounted for approximately 86.0%, 3.0%, 2.5% and 8.5% for the three months ended June 30, 2024, respectively.
Current wording
During the three months ended September 30, 2025, our Auto Operating Leasing, Auto Commissions, Auto Financing and other services income accounted for approximately 79.8%, 2.6%, 2.0% and 15.6% of our total revenue from our automobile transactions and related services, respectively, while our Auto Operating Leasing, Auto Commissions, Auto Financing, and other services income accounted for approximately 78.4%, 4.1%, 3.6%, and 13.9% for the three months ended September 30, 2024, respectively. During the six months ended September 30, 2025, our Auto Operating Leasing, Auto Commissions, Auto Financing and other services income accounted for approximately 80.3%, 3.3%, 2.3%, and 14.1% of our total revenue from our automobile transactions and related services, respectively, while our Auto Operating Leasing, Auto Commissions, Auto Financing, and other services income accounted for approximately 82.5%, 3.5%, 3.0%, and 11.0% for the six months ended September 30, 2024, respectively.
Previous wording
Due to the fierce competition of online ride-hailing industry in those cities we operated in, we have witnessed a high turn-over rate on the short-term car rentals during the three months ended June 30, 2025. To meet the demand in Chengdu and Changsha, we have purchased and leased automobiles from third parties for our operating lease. The daily management and timely maintenance of leased automobiles will have a significant effect on the stability and potential growth of our income from leasing automobiles in the next twelve months. The effective management, including maintaining the high turn-over rate of our automobiles through our proprietary system and experienced auto-management team could provide in-time delivery and qualified automobiles to potential lessees, either for personal use or providing online ride-hailing services. As of June 30, 2025, for parking and management of automobiles for operating lease, we had one parking lot and three employees in Changsha, and we also share the parking lot with our equity investee company, Jinkailong in Chengdu. During the three months ended June 30, 2025 and 2024, the average utilization of the automobiles for operating lease was approximately 88.0% and 90.4%, respectively.
Current wording
Due to the fierce competition of online ride-hailing industry in those cities we operated in, we have witnessed a high turn-over rate on the short-term car rentals during the three and six months ended September 30, 2025. To meet the demand in Chengdu and Changsha, we have purchased and leased automobiles from third parties for our operating lease. The daily management and timely maintenance of leased automobiles will have a significant effect on the stability and potential growth of our income from leasing automobiles in the next twelve months. The effective management, including maintaining the high turn-over rate of our automobiles through our proprietary system and experienced auto-management team could provide in-time delivery and qualified automobiles to potential lessees, either for personal use or providing online ride-hailing services. As of September 30, 2025, for parking and management of automobiles for operating lease, we had one parking lot and three employees in Changsha, and we also share the parking lot with our equity investee company, Jinkailong in Chengdu. During the three months ended September 30, 2025 and 2024, the average utilization of the automobiles for operating lease was approximately 91.9% and 80.4%, respectively. During the six months ended September 30, 2025 and 2024, the average utilization of the automobiles for operating lease was approximately 89.9% and 85.2%, respectively.
Previous wording
For receivables from Auto Operating Leasing, we usually settle the rental income with each online ride-hailing driver monthly based on the product solutions they chose. In accordance with the development of the operating lease business, our Partner Platforms, such as Gaode, agree to temporarily “lock-up” the fares of the rides which the driver earned from the platform to ensure the timely collection of our rental receivables from them. As of June 30, 2025, we had accounts receivable of operating lease of approximately $35,000 in total. Besides, during the three months ended June 30, 2025, we settled our commissions with the Partner Platforms for our online ride-hailing platform services and automobile rental income on a monthly basis.
Current wording
For receivables from Auto Operating Leasing, we usually settle the rental income with each online ride-hailing driver monthly based on the product solutions they chose. In accordance with the development of the operating lease business, our Partner Platforms, such as Gaode, agree to temporarily “lock-up” the fares of the rides which the driver earned from the platform to ensure the timely collection of our rental receivables from them. As of September 30, 2025, we had accounts receivable of operating lease of approximately $26,000 in total. Besides, during the three and six months ended September 30, 2025, we settled our commissions with the Partner Platforms for our online ride-hailing platform services and automobile rental income on a monthly basis.
Previous wording
We manage the credit risk arising from the default of automobile purchasers and lessees by performing credit checks on each automobile purchaser or lessee based on the credit reports from People’s Bank of China and third-party credit rating companies, and personal information including residence, ethnicity group, driving history and involvement in legal proceeding. Our risk department continuously monitors the payment by each purchaser and sends them payment reminders. We also keep monitoring the daily gross fare earned by the online ride-hailing drivers, who are our majority customers and run their business through our Partner Platforms during the three months ended June 30, 2025. We do this so that we can evaluate their financial conditions and provide them with assistance including the transfer of automobile to a new driver if they are no longer interested in providing ride-hailing services or are unable to earn enough income to make monthly lease/loan payments. We also charge default expenses from customers for their behaviors violated to the contracts.
Current wording
We manage the credit risk arising from the default of automobile purchasers and lessees by performing credit checks on each automobile purchaser or lessee based on the credit reports from People’s Bank of China and third-party credit rating companies, and personal information including residence, ethnicity group, driving history and involvement in legal proceeding. Our risk department continuously monitors the payment by each purchaser and sends them payment reminders. We also keep monitoring the daily gross fare earned by the online ride-hailing drivers, who are our majority customers and run their business through our Partner Platforms during the three and six months ended September 30, 2025. We do this so that we can evaluate their financial conditions and provide them with assistance including the transfer of automobile to a new driver if they are no longer interested in providing ride-hailing services or are unable to earn enough income to make monthly lease/loan payments. We also charge default expenses from customers for their behaviors violated to the contracts.
Previous wording
However, the participants in the online ride-hailing industry are facing increasingly fierce competitions. According to the Ministry of Transportation (the “MOT”) of the People’s Republic of China, as of June 30, 2025, approximately 389 online ride-hailing platforms have obtained booking taxi operating licenses, representing an increase of approximately 10% as compared with the one as of June 30, 2024. And the total volume of online ride-hailing orders was approximately 757 million in June 2025 in China, representing a decrease of approximately 25% as compared with the one as of June 30, 2024. Meanwhile, approximately 3.21 million online booking taxi transportation certificates and approximately 7.48 million online booking taxi driver’s licenses were issued nationwide in China as of December 31, 2024, respectively. Since 2023, the municipal transportation bureaus in a series of cities in China have released operational dynamics and risk warnings for the online ride-hailing industry, stating that the online ride-hailing market has become saturated. They remind enterprises and practitioners who intend to engage in online ride-hailing services should have a detailed understanding of relevant regulations, conduct market research, fully consider changes in operating income due to factors such as supply and demand, market conditions, fluctuations or continuous declines, objectively evaluate the actual income level of industry practitioners, and make rational and prudent career choices.
Current wording
However, the participants in the online ride-hailing industry are facing increasingly fierce competitions. According to the Ministry of Transportation (the “MOT”) of the People’s Republic of China, as of September 30, 2025, approximately 393 online ride-hailing platforms have obtained booking taxi operating licenses, representing an increase of approximately 9% as compared with the one as of September 30, 2024. And the total volume of online ride-hailing orders was approximately 758 million in September 2025 in China, representing a decrease of approximately 26% as compared with the one as of September 30, 2024. Meanwhile, approximately 3.21 million online booking taxi transportation certificates and approximately 7.48 million online booking taxi driver’s licenses were issued nationwide in China as of December 31, 2024, respectively. Since 2023, the municipal transportation bureaus in a series of cities in China have released operational dynamics and risk warnings for the online ride-hailing industry, stating that the online ride-hailing market has become saturated. They remind enterprises and practitioners who intend to engage in online ride-hailing services should have a detailed understanding of relevant regulations, conduct market research, fully consider changes in operating income due to factors such as supply and demand, market conditions, fluctuations or continuous declines, objectively evaluate the actual income level of industry practitioners, and make rational and prudent career choices.
Previous wording
However, approximately 39% of ride-hailing drivers who leased our automobiles or used our services have not obtained the driver’s license for online ride-hailing services as of June 30, 2025 while all of the cars used for online ride-hailing services which we provided management services have the automobile certificate. Without requisite automobile certificate or driver’s license, these drivers may be suspended from providing ride-hailing services, confiscated their illegal income and subject to fines of up to 10 times of their illegal income. Meanwhile, during the three months ended June 30, 2025, Gaode conducted several rounds of compliance checks in Chengdu and other cities and reduced the number of orders dispatched platforms that allowed drivers to provide services without appropriate licenses or certificates. We assisted drivers to obtain the required certificate and license for our Automobile Transaction and Related Services. However, there was no guarantee that all of the drivers who run their online ride-hailing business would be able to obtain all the certificates and licenses. These Partner Platforms may not allow unqualified drivers who lease our automobiles to drive through these platforms, or reduce their commission income, so that they may not be able to earn enough income from those Partner Platforms to pay our rental fees. Our business and results of operations shall be materially and adversely affected if we could not serve qualified drivers or our served drivers are suspended from providing ride-hailing services.
Current wording
However, approximately 40% of ride-hailing drivers who leased our automobiles or used our services have not obtained the driver’s license for online ride-hailing services as of September 30, 2025 while all of the cars used for online ride-hailing services which we provided management services have the automobile certificate. Without requisite automobile certificate or driver’s license, these drivers may be suspended from providing ride-hailing services, confiscated their illegal income and subject to fines of up to 10 times of their illegal income. Meanwhile, during the three and six months ended September 30, 2025, Gaode conducted several rounds of compliance checks in Chengdu and other cities and reduced the number of orders dispatched platforms that allowed drivers to provide services without appropriate licenses or certificates. We assisted drivers to obtain the required certificate and license for our Automobile Transaction and Related Services. However, there was no guarantee that all of the drivers who run their online ride-hailing business would be able to obtain all the certificates and licenses. These Partner Platforms may not allow unqualified drivers who lease our automobiles to drive through these platforms, or reduce their commission income, so that they may not be able to earn enough income from those Partner Platforms to pay our rental fees. Our business and results of operations shall be materially and adversely affected if we could not serve qualified drivers or our served drivers are suspended from providing ride-hailing services.
Previous wording
Revenue from our automobile transaction and related services mainly includes operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, financing revenues, default revenue, service fees from automobile purchase services, and other services fees, which accounted for approximately 80.9%, 9.7%, 4.2%, 2.6%, 1.2%, 0.1% and 1.3%, respectively, of the total revenue during the three months ended June 30, 2025. Meanwhile, operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, financing revenues, default revenue, service fees from automobile purchase services and other services fees, which accounted for approximately 86.0%, 2.5%, 3.0%, 2.5%, 2.6%, 2.5% and 0.9%, respectively, of the total revenue during the three months ended June 30, 2024.
Current wording
Revenue from our automobile transaction and related services mainly includes operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, default revenue, financing revenues, service fees from automobile purchase services, and other services fees, which accounted for approximately 79.8%, 11.9%, 2.6%, 2.3%, 2.0%, 0.8% and 0.6%, respectively, of the total revenue during the three months ended September 30, 2025. Meanwhile, operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, financing revenues, default revenue, service fees from automobile purchase services and other services fees, which accounted for approximately 78.4%, 6.9%, 4.1%, 3.6%, 3.3%, 0.7% and 3.0%, respectively, of the total revenue during the three months ended September 30, 2024.
Previous wording
We generate revenues from leasing our own automobiles and sub-leasing automobiles leased from third-parties and related parties or rendered by online ride-hailing drivers with their authorization for a lease term of no more than twelve months. The decrease in rental income of $60,912 or approximately 8.1% during the three months ended June 30, 2025 was mainly due to the decrease in average monthly rental income per automobile and partially offset by the increase in number of automobiles leased for operating lease. We leased over 660 automobiles with an average monthly rental income of approximately $400 per automobile, resulting in a rental income of $695,403, including rental income of $24,057 from another related party, for the three months ended June 30, 2025. We leased approximately 640 automobiles with an average monthly rental income of approximately $413 per automobile, resulting in a rental income of $756,315, including rental income of $5,243 from a related party, for the three months ended June 30, 2024.
Current wording
We generate revenues from leasing our own automobiles and sub-leasing automobiles leased from third-parties and related parties or rendered by online ride-hailing drivers with their authorization for a lease term of no more than twelve months. The increase in rental income of $163,097 or approximately 27.9% during the three months ended September 30, 2025 was mainly due to the increase in number of automobiles leased for operating lease. We leased over 710 automobiles with an average monthly rental income of approximately $402 per automobile, resulting in a rental income of $747,515, including rental income of $29,842 from a related party, for the three months ended September 30, 2025. We leased approximately 596 automobiles with an average monthly rental income of approximately $405 per automobile, resulting in a rental income of $584,418, including rental income of $3,622 from another related party, for the three months ended September 30, 2024.
Previous wording
We generated revenues of $83,444 and $22,094 from leasing NEVs by charging leases service fees during the three months ended June 30, 2025 and 2024, respectively. The amount of services fees for NEVs leasing were based on our product solutions timely in accordance which adjusted with different market conditions.
Current wording
We generated revenues of $111,115 and $51,694 from leasing NEVs by charging leases service fees during the three months ended September 30, 2025 and 2024, respectively. The amount of services fees for NEVs leasing were based on our timely product solutions in accordance which adjusted with different market conditions.
Previous wording
We generated revenues of $35,825 and $26,254 from the monthly management and related services provided to our Partner Platforms and other companies during the three months ended June 30, 2025 and 2024, respectively. The increase of $9,571 or approximately 36.5% was due to increase in the number of the automobiles and drivers we served, who ran their business through the Partner Platforms.
Current wording
We generated revenues of $24,058 and $30,681 from the monthly management and related services provided to our Partner Platforms and other companies during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
We generated default revenues of $10,229 and $22,764 from the automobile lessee’s early-termination of the contracts or other violation behaviors to the contracts during the three months ended June 30, 2025 and 2024, respectively.
Current wording
We generated default revenues of $21,291 and $24,931 from the automobile lessee’s early-termination of the contracts or other violation behaviors to the contracts during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
We started our financial leasing business in March 2019 and began to generate interest income from providing financial leasing services to ride-hailing drivers in April 2019. We also charge the customers of our automobile financing facilitation services interest on their monthly payments which cover purchase price of automobile and our services fees and facilitation fees for terms of 36 or 48 months. We recognized a total interest income of $22,331 from an average monthly number of 52 automobiles and $22,176 from an average monthly number of 38 automobiles during the three months ended June 30, 2025 and 2024, respectively. The increase was due to the average number of automobiles served for financial leasing increased during the three months ended June 30, 2025.
Current wording
We started our financial leasing business in March 2019 and began to generate interest income from providing financial leasing services to ride-hailing drivers in April 2019. We also charge the customers of our automobile financing facilitation services interest on their monthly payments which cover purchase price of automobile and our services fees and facilitation fees for terms of 36 or 48 months. We recognized a total interest income of $18,849 from an average monthly number of 50 automobiles and $26,853 from an average monthly number of 48 automobiles during the three months ended September 30, 2025 and 2024, respectively. The decrease was due to the monthly payment we charged to customers decreased during the three months ended September 30, 2025.
Previous wording
We generated revenues of $1,270 and $21,738 from the automobile purchase services during the three months ended June 30, 2025 and 2024, respectively. The decrease was due to the number of automobiles purchase transactions decreased to 1 during the three months ended June 30, 2025 from 16 in the same period in 2024.
Current wording
We generated revenues of $7,666 and $5,165 from the automobile purchase services during the three months ended September 30, 2025 and 2024, respectively. The increase was due to the number of automobiles purchase transactions increased to 6 during the three months ended September 30, 2025 from 3 in the same period in 2024.
Previous wording
Cost of revenues represents the amortization of ROUs, depreciation and rental cost of automobiles, daily maintenance and insurance expense of automobiles which related to our Auto Operating Leasing. Cost of revenues increased by $37,105 or approximately 5.9% during the three months ended June 30, 2025 as compared with the three months ended June 30, 2024, mainly due to an increase in the monthly average number of the automobiles leased from the third parties for operating lease from 263 in the three months ended June 30, 2024 to 322 in the three months ended June 30, 2025. During the three months ended June 30, 2025 and 2024, we paid $59,639 and $1,627, respectively, to related parties for costs of automobiles under operating leases.
Current wording
Cost of revenues represents the amortization of ROUs, depreciation and rental cost of automobiles, daily maintenance and insurance expense of automobiles which related to our Auto Operating Leasing. Cost of revenues increased by $13,275 or approximately 2.0% during the three months ended September 30, 2025 as compared with the three months ended September 30, 2024, mainly due to an increase in the monthly average number of the automobiles leased for operating lease from 292 in the three months ended September 30, 2024 to 343 in the three months ended September 30, 2025. During the three months ended September 30, 2025 and 2024, we paid $30,633 and $17,334, respectively, to related parties for costs of automobiles under operating leases.
Previous wording
We had gross profit of $196,955 and $252,970, respectively, during the three months ended June 30, 2025 and 2024. The decrease of $56,015 was mainly due to the decrease in gross profit from Auto Operating Leasing. The following table sets forth the breakdown of gross profit by major revenue source for the three months ended June 30, 2025 and 2024:
Current wording
We had gross profit of $274,088 and $96,899, respectively, during the three months ended September 30, 2025 and 2024. The increase of $177,189 was mainly due to the increase in gross profit from Auto Operating Leasing. The following table sets forth the breakdown of gross profit (loss) by major revenue source for the three months ended September 30, 2025 and 2024:
Previous wording
We had a gross profit of $32,259 from our Auto Operating Leasing during the three months ended June 30, 2025, which decreased by $98,017 from a gross profit of $130,276 in the three months ended June 30, 2024. The decrease was attributable to: (1) the decrease in average monthly rental income from approximately $413 for the three months ended June 30, 2024 to approximately $400 for the three months ended June 30, 2025; and (2) the average utilization of the automobiles for operating lease decreased from 90.4% in the three months ended June 30, 2024 to 88.0% in the three months ended June 30, 2025, while the average number of the automobiles leased from the third parties for operating lease increased from 263 to 322. As the gross margin of the revenues from our Auto Business decreased during the three months ended June 30, 2025, our overall gross profit margin decreased to approximately 22.9% from approximately 28.8% during the three months ended June 30, 2024.
Current wording
We had a gross profit of $85,259 from our Auto Operating Leasing during the three months ended September 30, 2025, which increased by $149,822 from a gross loss of $64,563 in the three months ended September 30, 2024. The increase was attributable to the average utilization of the automobiles for operating lease increased from 80.4% in the three months ended September 30, 2024 to 91.9% in the three months ended September 30, 2025. As the gross margin of the revenues from our Auto Business increased during the three months ended September 30, 2025, our overall gross profit margin increased to approximately 29.3% from approximately 13.0% during the three months ended September 30, 2024.
Previous wording
Selling, general and administrative expenses primarily consist of salary and employee benefits, office rental expense, travel expenses, and other costs. Selling, general and administrative expenses decreased from $853,498 for the three months ended June 30, 2024 to $808,245 for the three months ended June 30, 2025, representing a decrease of $45,253, or approximately 5.3%. The decrease mainly consisted of (1) a decrease of $104,593 in salary and employee benefits as the average monthly number of our employees decreased from 56 for the three months ended June 30, 2024 to 38 for the three months ended June 30, 2025; and (2) a decrease of $64,668 in offices rental and charges in the three months ended June 30, 2025; partly offset by (3) the increase of $196,325 in professional service fees such as outsourced operating services related to automobile lease, mainly due to the streamline the workforce and improvement on the daily operation in Chengdu.
Current wording
Selling, general and administrative expenses primarily consist of salary and employee benefits, office rental expense, travel expenses, and other expenses. Selling, general and administrative expenses increased from $530,651 for the three months ended September 30, 2024 to $907,255 for the three months ended September 30, 2025, representing an increase of $376,604, or approximately 71.0%. The increase mainly consisted of (1) the increase of $413,362 in professional service fees such as financial, market consulting and outsourced operating services related to automobile lease, mainly attributable to the streamlining of the workforce in Chengdu, thereby sharing venue and personnel resources with Jinkailong, which resulted in the corresponding service fee obligations; and (2) an increase of $35,802 in miscellaneous expense for the three months ended September 30, 2025; partly offset by (3) a decrease of $72,560 in salary and employee benefits as the average monthly number of our employees decreased from 60 for the three months ended September 30, 2024 to 36 for the three months ended September 30, 2025.
Previous wording
We re-evaluated the possibility of collection of unsettled balances from customers/suppliers of our automobile transactions and related services, and we provided provision for credit losses of $0 and $173,441 against receivables from Jinkailong for the three months ended June 30, 2025 and 2024, respectively.
Current wording
We re-evaluated the possibility of collection of unsettled balances from customers/suppliers of our automobile transactions and related services, and we provided provision for credit losses of $125,046 and $181,995 against receivables from Jinkailong for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
For the three months ended June 30, 2024, we had other income, net of $51,459, which primarily consist of (1) penalty income of approximately $32,000 from the customers; (2) the miscellaneous income of approximately $19,000.
Current wording
For the three months ended September 30, 2025, we had other income, net of $31,356, which primarily consist of the (1) penalty income of approximately $20,000 from the customers; and (2) the miscellaneous other income, net of approximately $11,000.
Previous wording
Interest expense on finance leases for the three months ended June 30, 2025 and 2024 was $615 and $5,088, respectively, representing the interest expense accrued under financing leases for the leased automobiles Corenel, our former subsidiary, leased from a third-party company.
Current wording
Interest expense on finance leases for the three months ended September 30, 2025 and 2024 was $0 and $4,270, respectively, representing the interest expense accrued under financing leases for the leased automobiles Corenel, our former subsidiary, leased from a third-party company.
Previous wording
Warrants issued in our registered direct offerings that took place in February 2021 and May 2021, and the August 2020 underwritten public offering, and the November 2021 private placement were classified as liabilities under the caption “Derivative Liabilities” in the consolidated balance sheet and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. The change in fair value of derivative liabilities for the three months ended June 30, 2025 and 2024 was a gain of $77,182 and a loss of $8,287, respectively. The following table sets forth the breakdown of the gain (loss) in fair value of derivative liabilities for the three months ended June 30, 2025 and 2024:
Current wording
Warrants issued in our registered direct offerings that took place in February 2021 and May 2021, and the August 2020 underwritten public offering, and the November 2021 private placement were classified as liabilities under the caption “Derivative Liabilities” in the unaudited condensed consolidated balance sheet and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. The change in fair value of derivative liabilities for the three months ended September 30, 2025 and 2024 was a gain of $3,127 and a loss of $7,127, respectively. The following table sets forth the breakdown of the gain (loss) in fair value of derivative liabilities for the three months ended September 30, 2025 and 2024:
Previous wording
As a result of the foregoing, net loss from continuing operations for the three months ended June 30, 2025 was $276,438, representing a decrease of 459,447 from net loss of $735,885 for the three months ended June 30, 2024.
Current wording
As a result of the foregoing, net loss from continuing operations for the three months ended September 30, 2025 was $723,730, representing an increase of $484,991 from net loss of $238,739 for the three months ended September 30, 2024.
Previous wording
For the three months ended June 30, 2025, we had other income, net of $258,285, which primarily consist of the (1) a gain of approximately $245,000 from disposal of Corenel; (2) penalty income of approximately $15,000 from the customers; partially offset by (3) the expense of approximately $14,000 for processing automobile violation fines; and (4) the miscellaneous other income, net of approximately $18,000.
Current wording
For the six months ended September 30, 2025, we had other income, net of $289,641, which primarily consist of the (1) a gain of approximately $240,000 from disposal of Corenel; (2) penalty income of approximately $35,000 from the customers; (3) the miscellaneous other income, net of approximately $30,000; partially offset by (4) the expense of approximately $16,000 for processing automobile violation fines.
Previous wording
Results of Discontinued Operations for the three months ended June 30, 2025 Compared to the three months ended June 30, 2024
Current wording
Results of Discontinued Operations for the three and six months ended September 30, 2025 Compared to the three and six months ended September 30, 2024
Previous wording
The results of discontinued operations was the financial figures of our former subsidiary, XXTX. As of August 20, 2024, we deconsolidated XXTX and its business result was included in our online ride-hailing platform services before we deconsolidated its financial figures.
Current wording
The result of discontinued operations was the financial figures of our former subsidiary, XXTX. As of August 20, 2024, we deconsolidated XXTX and its business result was included in our online ride-hailing platform services before we deconsolidated its financial figures.
Previous wording
During the three months ended June 30, 2024, approximately 0.4 million rides with gross fare of approximately $1.3 million were completed through our Xixingtianxia platform and an average of over 2,300 ride-hailing drivers completed rides and earned income through Xixingtianxia (the “Active Drivers”) each month. XXTX earned online ride-hailing platform service fees of $243,391, after netting off approximately $24,000 incentives paid to Active Drivers.
Current wording
During the three months ended September 30, 2024, approximately 0.2 million rides with gross fare of approximately $0.5 million were completed through Xixingtianxia platform and an average of over 1,700 ride-hailing drivers completed rides and earned income through Xixingtianxia (the “Active Drivers”) each month. XXTX earned online ride-hailing platform service fees of $100,850, after netting off approximately $7,000 incentives paid to Active Drivers.
Previous wording
Selling, general and administrative expenses from discontinued operations primarily consisted of (1) $35,778 in salary and employee benefits; (2) $22,547 in depreciation of office equipment and amortization of intangible assets; (3) $20,814 in entertainment, advertising and promotion; and (4) other miscellaneous expenses in the three months ended June 30, 2024.
Current wording
Selling, general and administrative expenses from discontinued operations primarily consisted of (1) $29,081 in salary and employee benefits; (2) $15,186 in depreciation of office equipment and amortization of intangible assets; (3) $9,868 in entertainment, advertising and promotion; and (4) other miscellaneous expenses in the three months ended September 30, 2024.
Previous wording
As a result of the foregoing, the net loss from discontinued operations for the three months ended June 30, 2024 was $26,933.
Current wording
As a result of the foregoing, the net loss from discontinued operations for the three and six months ended September 30, 2024 was $186,714 and $213,647, respectively.
Previous wording
We had cash and cash equivalents of $867,767 as of June 30, 2025 as compared to $833,577 as of March 31, 2025. We primarily hold our excess unrestricted cash in short-term interest-bearing bank accounts at financial institutions.
Current wording
We had cash and cash equivalents of $676,980 as of September 30, 2025 as compared to $833,577 as of March 31, 2025. We primarily hold our excess unrestricted cash in short-term interest-bearing bank accounts at financial institutions.
Previous wording
Our business is capital intensive. We have considered whether there is substantial doubt about our ability to continue as a going concern due to (1) the net loss of approximately $0.3 million for the three months ended June 30, 2025; (2) accumulated deficit of approximately $45.3 million as of June 30, 2025; (3) the working capital deficit of approximately $2.5 million as of June 30, 2025.
Current wording
Our business is capital intensive. We have considered whether there is substantial doubt about our ability to continue as a going concern due to (1) the net loss of approximately $1.0 million for the six months ended September 30, 2025; (2) accumulated deficit of approximately $45.9 million as of September 30, 2025; (3) the working capital deficit of approximately $2.6 million as of September 30, 2025.
Previous wording
For the three months ended June 30, 2025, net cash used in operating activities was $321,155 from continuing operations. While for the three months ended June 30, 2024, net cash provided by operating activities was $16,762, which consisted of net cash inflows of $66,414 from continuing operations and net cash outflows of $49,652 from discontinued operations.
Current wording
For the six months ended September 30, 2025, net cash used in operating activities was $392,547 from continuing operations. While for the six months ended September 30, 2024, net cash provided by operating activities was $192,349, which consisted of net cash inflows of $265,827 from continuing operations and net cash outflows of $73,478 from discontinued operations.
Previous wording
The increase of $387,569 in net cash used in operating activities from continuing operations for the three months ended June 30, 2025 as compared with the three months ended June 30, 2024 was primarily attributable to (1) the one-off gain of $245,310 from disposal of Corenel during the three months ended June 30, 2025; (2) decrease of $209,008 in the change of accrued expenses and other liabilities; (3) decrease of $173,441 in the provision for credit losses; (4) $85,469 in Change in fair value of derivative liabilities from a loss of $8,287 for the three months ended June 30, 2024 to a gain of $77,182 for the three months ended June 30, 2025; (5) decrease of $47,321 in amortization of right-of-use assets; (6) decrease of $38,556 in the change of prepayments, other receivables and other assets (included third parties and a related party); and partially offset by (7) decrease of $459,447 in net loss from continuing operations.
Current wording
The increase of $658,374 in net cash used in operating activities from continuing operations for the six months ended September 30, 2025 as compared with the six months ended September 30, 2024 was primarily attributable to (1) decrease of $390,149 in the change of accrued expenses and other liabilities; (2) decrease of $230,390 in the provision for credit losses; (3) decrease of $111,901 in amortization of right-of-use assets; (4) $95,723 in change in fair value of derivative liabilities from a loss of $15,414 for the six months ended September 30, 2024 to a gain of $80,309 for the six months ended September 30, 2025; (5) decrease of $66,451 in the change of accounts payable; and partially offset by (6) $151,397 in change of the gain from disposal of a subsidiary. Specifically, there was a one-off gain of $246,378 from disposal of Corenel during the six months ended September 30, 2025, whereas a gain of $397,775 from deconsolidation of XXTX during the six months ended September 30, 2024; (7) decrease of $106,858 in the change of prepayments, other receivables and other assets (included third parties and a related party).
Previous wording
For the three months ended June 30, 2024, we had net cash provided by investing activities of $7,250. The net cash provided by in investing activities consisted of the proceeds from sales of the used-automobiles of $8,433, which was partially offset by the purchase of furniture for office purpose of $1,183.
Current wording
For the six months ended September 30, 2025, we had net cash used in investing activities of $224,174, which consisted of: (1) the loan to a related party of $229,469; (2) the cash of $388 released upon disposal of Corenel; partially offset by (3) the proceeds from sales of the used-automobiles of $5,683.
Previous wording
For the three months ended June 30, 2025, we had net cash provided by financing activities of $377,471 from continuing operations. The net cash provided by financing activities from continuing operations consisted of: (1) net proceeds of $226,000 from the exercise of November 2021 Private Placement Warrants from an investor; (2) borrowings from a related party of $99,347; and (3) repayments from a related party of $52,124.
Current wording
For the six months ended September 30, 2025, we had net cash provided by financing activities of $416,008 from continuing operations, which consisted of: (1) net proceeds of $341,251 from the exercise of November 2021 Private Placement Warrants from an investor; (2) borrowings from a related party of $119,150; (3) repayments from a related party of $83,272; partially offset by (4) repayments to a related party of $127,665.
Previous wording
For the three months ended June 30, 2024, we had net cash used in financing activities of $53,707, which consisted of the net cash outflows of $20,540 from continuing operations and $33,167 from discontinued operations. The net cash used in financing activities from continuing operations primarily consisted of: (1) repayments to related parties and affiliates of $25,365; (2) principal payments made for finance lease liabilities of $8,985; partially offset by (4) repayment from a related party of $13,810.
Current wording
For the six months ended September 30, 2024, we had net cash used in financing activities of $46,293, which consisted net inflows of $35,733 from continuing operations and net outflows of $82,026 from discontinued operations. The majority of net cash provided by financing activities financing activities from continuing operations was consisted of: (1) borrowings from a related party of $33,582; and (2) repayments from a related party of $13,884; partially offset by (3) principal payments made for finance lease liabilities of $11,733.
Previous wording
Pursuant to the Regulations of the State Council on Implementing the Management System for Registered Capital Registration in the Company Law of the People’s Republic of China issued on July 1, 2024 (the “Registered Capital Registration Implementing Rules”), as Jinkailong was registered and established before June 30, 2024, its shareholders should fully pay their unpaid subscribed capital before June 30, 2032. As of June 30, 2025, Hunan Ruixi holds 35% of equity interest of Jinkailong and has not made any payments towards to the investment amounted to RMB3.5 million (approximately $489,000). According to the Registered Capital Registration Implementing Rules, Hunan Ruixi shall pay the subscribed capital of Jinkailong before June 30, 2032.
Current wording
Pursuant to the Regulations of the State Council on Implementing the Management System for Registered Capital Registration in the Company Law of the People’s Republic of China issued on July 1, 2024 (the “Registered Capital Registration Implementing Rules”), as Jinkailong was registered and established before June 30, 2024, its shareholders should fully pay their unpaid subscribed capital before June 30, 2032. As of September 30, 2025, Hunan Ruixi holds 35% of equity interest of Jinkailong and has not made any payments towards to the investment amounted to RMB3.5 million (approximately $492,000). According to the Registered Capital Registration Implementing Rules, Hunan Ruixi shall pay the subscribed capital of Jinkailong before June 30, 2032.
Previous wording
Our unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We have identified certain accounting estimates that are significant to the preparation of our financial statements. These estimates are important for an understanding of our financial condition and results of operation. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting estimates involve the most significant estimates and judgments used in the preparation of our financial statements.
Current wording
Our unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Previous wording
When reading our unaudited condensed consolidated financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. Our critical accounting policies and practices include the following: (i) fair values of financial instruments, including derivative liabilities; (ii) accounts receivable, net; (iii) property and equipment, net; (iv) revenue recognition. See Note 3—Summary of Significant Accounting Policies to our consolidated financial statements in our 2025 Form 10-K for the disclosure of these accounting policies. We believe the following accounting estimates involve the most significant judgments used in the preparation of our financial statements.
Current wording
When reading our unaudited condensed consolidated financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. Our critical accounting policies and practices include the following: (i) accounts receivable, net; (ii) property and equipment, net; (iii) revenue recognition. See Note 3—Summary of Significant Accounting Policies to our consolidated financial statements in our 2025 Form 10-K for the disclosure of these accounting policies.
Rearranged current paragraphs (20)
Current report — wording carried from elsewhere
We started generating revenue from Automobile Transaction and Related Services from our acquisition of Hunan Ruixi on November 22, 2018. As we focus on our automobile rental business, we expect revenue from our automobile rental to continuously account for a majority of our revenues. We plan to provide a series of product solutions to sustain and further increase the number of our automobiles for operating leases.
Current report — wording carried from elsewhere
The following table sets forth the breakdown of revenues by revenue source for the six months ended September 30, 2025 and 2024, respectively:
Current report — wording carried from elsewhere
Revenue from our automobile transaction and related services mainly includes operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, financing revenues, default revenue, service fees from automobile purchase services, and other services fees, which accounted for approximately 80.3%, 10.8%, 3.3%, 2.3%, 1.8%, 0.5% and 1.0%, respectively, of the total revenue during the six months ended September 30, 2025. Meanwhile, operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, financing revenues, default revenue, service fees from automobile purchase services and other services fees, which accounted for approximately 82.5%, 4.5%, 3.5%, 3.0%, 2.9%, 1.7% and 1.9%, respectively, of the total revenue during the six months ended September 30, 2024.
Current report — wording carried from elsewhere
Operating lease revenues from automobile rentals
Current report — wording carried from elsewhere
We generate revenues from leasing our own automobiles and sub-leasing automobiles leased from third-parties and related parties or rendered by online ride-hailing drivers with their authorization for a lease term of no more than twelve months. The increase in rental income of $102,185 or approximately 7.6% during the six months ended September 30, 2025 was mainly due to the increase in number of automobiles leased for operating lease. We leased over 750 automobiles with an average monthly rental income of approximately $401 per automobile, resulting in a rental income of $1,442,918, including rental income of $53,899 from a related party, for the six months ended September 30, 2025. While we leased approximately 627 automobiles with an average monthly rental income of approximately $413 per automobile, resulting in a rental income of $1,340,733, including rental income of $8,865 from another related party, for the six months ended September 30, 2024.
Current report — wording carried from elsewhere
We generated revenues of $194,559 and $73,788 from leasing NEVs by charging leases service fees during the six months ended September 30, 2025 and 2024, respectively. The amount of services fees for NEVs leasing were based on our timely product solutions in accordance which adjusted with different market conditions.
Current report — wording carried from elsewhere
We generated revenues of $59,883 and $56,935 from the monthly management and related services provided to our Partner Platforms and other companies during the six months ended September 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
We started our financial leasing business in March 2019 and began to generate interest income from providing financial leasing services to ride-hailing drivers in April 2019. We also charge the customers of our automobile financing facilitation services interest on their monthly payments which cover purchase price of automobile and our services fees and facilitation fees for terms of 36 or 48 months. We recognized a total interest income of $41,180 from an average monthly number of 51 automobiles and $49,029 from an average monthly number of 43 automobiles during the six months ended September 30, 2025 and 2024, respectively. The decrease was due to the monthly payment we charged to customers decreased during the six months ended September 30, 2025.
Current report — wording carried from elsewhere
We generated default revenues of $31,520 and $47,695 from the automobile lessee’s early-termination of the contracts or other violation behaviors to the contracts during the six months ended September 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Service fees from automobile purchase services and Other Service fees
Current report — wording carried from elsewhere
We generate other revenues from other miscellaneous service fees charged to our customers during the six months ended September 30, 2025 and 2024. Other services fees mainly include the maintenance fees charged to our customers pursuant to certain new production solutions.
Current report — wording carried from elsewhere
Cost of revenues represents the amortization of ROUs, depreciation and rental cost of automobiles, daily maintenance and insurance expense of automobiles which related to our Auto Operating Leasing. Cost of revenues increased by $50,380 or approximately 4.0% during the six months ended September 30, 2025 as compared with the six months ended September 30, 2024, mainly due to an increase in the monthly average number of the automobiles leased for operating lease from 279 in the six months ended September 30, 2024 to 333 in the six months ended September 30, 2025. During the six months ended September 30, 2025 and 2024, we paid $90,272 and $18,961, respectively, to related parties for costs of automobiles under operating leases.
Current report — wording carried from elsewhere
We had gross profit of $471,043 and $349,869, respectively, during the six months ended September 30, 2025 and 2024. The following table sets forth the breakdown of gross profit by major revenue source for the six months ended September 30, 2025 and 2024:
Current report — wording carried from elsewhere
We re-evaluated the possibility of collection of unsettled balances from customers/suppliers of our automobile transactions and related services, and we provided provision for credit losses of $125,046 and $355,436 against receivables from Jinkailong for the six months ended September 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Interest expense on finance leases for the six months ended September 30, 2025 and 2024 was $615 and $9,358, respectively, representing the interest expense accrued under financing leases for the leased automobiles Corenel, our former subsidiary, leased from a third-party company.
Current report — wording carried from elsewhere
Change in Fair Value of Derivative Liabilities
Current report — wording carried from elsewhere
Warrants issued in our registered direct offerings that took place in February 2021 and May 2021, and the August 2020 underwritten public offering, and the November 2021 private placement were classified as liabilities under the caption “Derivative Liabilities” in the unaudited condensed consolidated balance sheet and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. The change in fair value of derivative liabilities for the six months ended September 30, 2025 and 2024 was a gain of $80,309 and a loss of $15,414, respectively. The following table sets forth the breakdown of the gain (loss) in fair value of derivative liabilities for the six months ended September 30, 2025 and 2024:
Current report — wording carried from elsewhere
Generally, our subsidiaries are subject to enterprise income tax on their taxable income in China at a rate of 25%. The enterprise income tax is calculated based on the entity’s global income as determined under PRC tax laws and accounting standards. All the subsidiaries in China suffered losses and no tax expense was recorded for the six months ended September 30, 2025 and 2024.
Current report — wording carried from elsewhere
During the six months ended September 30, 2024, approximately 0.6 million rides with gross fare of approximately $1.8 million were completed through our Xixingtianxia platform and an average of over 2,100 Active Drivers each month. XXTX earned online ride-hailing platform service fees of $344,241, after netting off approximately $32,000 incentives paid to Active Drivers.
Current report — wording carried from elsewhere
Selling, general and administrative expenses from discontinued operations primarily consisted of (1) $64,859 in salary and employee benefits; (2) $37,733 in depreciation of office equipment and amortization of intangible assets; (3) $32,187 in entertainment, advertising and promotion; and (4) other miscellaneous expenses in the six months ended September 30, 2024.