SENMIAO TECHNOLOGY LIMITED
Unaudited Pro Forma Condensed Combined Balance Sheet
(Expressed in U.S. dollar, except for the number of shares)
As of June 30, 2024
| June 30, 2024 | Pro Forma adjustments | June 30, 2024 | ||||||||||
| Consolidated | disposal of XXTX | Pro Forma Consolidated | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| (a) | ||||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 748,869 | $ | (34,588 | ) | $ | 714,281 | |||||
| Restricted cash | 2,588 | - | 2,588 | |||||||||
| Accounts receivable, net | 20,156 | (8,103 | ) | 12,053 | ||||||||
| Accounts receivable, a related party | 1,878 | - | 1,878 | |||||||||
| Finance lease receivables, current | 179,356 | - | 179,356 | |||||||||
| Prepayments, other receivables and other current assets, net | 1,001,171 | (275,894 | ) | 725,277 | ||||||||
| Due from related parties, net, current | 319,679 | (3,986 | ) | 315,693 | ||||||||
| Total current assets | 2,273,697 | (322,571 | ) | 1,951,126 | ||||||||
| Property and equipment, net | 2,341,445 | (892 | ) | 2,340,553 | ||||||||
| Other assets | ||||||||||||
| Operating lease right-of-use assets, net | 51,489 | - | 51,489 | |||||||||
| Operating lease right-of-use assets, net, a related party | 37,060 | - | 37,060 | |||||||||
| Financing lease right-of-use assets, net | 294,241 | - | 294,241 | |||||||||
| Intangible assets, net | 548,671 | (117,421 | ) | 431,250 | ||||||||
| Finance lease receivable, non-current | 102,192 | - | 102,192 | |||||||||
| Due from a related party, net, non-current | 2,922,894 | - | 2,922,894 | |||||||||
| Other non-current assets | 635,733 | - | 635,733 | |||||||||
| Total other assets | 4,592,280 | (117,421 | ) | 4,474,859 | ||||||||
| Total assets | $ | 9,207,422 | $ | (440,884 | ) | $ | 8,766,538 | |||||
| LIABILITIES, MEZZANNIE EQUITY AND EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Borrowings from a financial institution, current | $ | 141,536 | $ | (141,536 | ) | $ | - | |||||
| Accounts payable | 152,784 | (45,125 | ) | 107,659 | ||||||||
| Advances from customers | 123,350 | - | 123,350 | |||||||||
| Income tax payable | 19,889 | - | 19,889 | |||||||||
| Accrued expenses and other liabilities | 3,803,459 | (231,897 | ) | 3,571,562 | ||||||||
| Due to related parties | 194,707 | - | 194,707 | |||||||||
| Operating lease liabilities, current | 14,104 | - | 14,104 | |||||||||
| Operating lease liabilities -a related party | 51,993 | - | 51,993 | |||||||||
| Financing lease liabilities, current | 331,462 | - | 331,462 | |||||||||
| Derivative liabilities | 297,120 | - | 297,120 | |||||||||
| Current liabilities - discontinued operations | 461,005 | - | 461,005 | |||||||||
| Total current liabilities | 5,591,409 | (418,558 | ) | 5,172,851 | ||||||||
| Other liabilities | ||||||||||||
| Borrowings from a financial institution, non-current | 35,384 | (35,384 | ) | - | ||||||||
| Operating lease liabilities, non-current | 15,334 | - | 15,334 | |||||||||
| Financing lease liabilities, non-current | 63,368 | - | 63,368 | |||||||||
| Deferred tax liability | 9,413 | (9,413 | ) | - | ||||||||
| Total other liabilities | 123,499 | (44,797 | ) | 78,702 | ||||||||
| Total liabilities | 5,714,908 | (463,355 | ) | 5,251,553 | ||||||||
| Commitments and contingencies | ||||||||||||
| Mezzanine Equity | ||||||||||||
| Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 991 shares issued and outstanding at June 30, 2024) | 234,364 | - | 234,364 | |||||||||
| Stockholders’ equity | ||||||||||||
| Common stock (par value $0.0001 per share, 500,000,000 shares authorized; 10,518,040 shares issued and outstanding at June 30, 2024 ) | 1,051 | - | 1,051 | |||||||||
| Additional paid-in capital | 43,950,123 | - | 43,950,123 | |||||||||
| Accumulated deficit | (42,057,688 | ) | 393,980 | (41,663,708 | ) | |||||||
| Accumulated other comprehensive loss | (1,734,325 | ) | (371,509 | ) | (2,105,834 | ) | ||||||
| Total Senmiao Technology Limited stockholders’ equity | 159,161 | 22,471 | 181,632 | |||||||||
| Non-controlling interests | 3,098,989 | - | 3,098,989 | |||||||||
| Total equity | 3,258,150 | 22,471 | 3,280,621 | |||||||||
| Total liabilities, mezzanine equity and equity | $ | 9,207,422 | $ | (440,884 | ) | $ | 8,766,538 | |||||
The Unaudited Pro Forma Financial Information include the following pro forma adjustments to give effect to the disposal of XXTX:
| (a) | To eliminate assets and liabilities of XXTX and its subsidiaries as of June 30, 2024. |
SENMIAO TECHNOLOGY LIMITED
Unaudited Pro Forma Condensed Combined Balance Sheet
(Expressed in U.S. dollar, except for the number of shares)
As of March 31, 2024
| 3/31/2024 | Pro Forma adjustments | 3/31/2024 | ||||||||||
| Consolidated | disposal of XXTX | Pro Forma Consolidated | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| a | ||||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 792,299 | $ | (54,580 | ) | $ | 737,719 | |||||
| Restricted cash | 2,337 | - | 2,337 | |||||||||
| Accounts receivable, net | 34,013 | (14,130 | ) | 19,883 | ||||||||
| Finance lease receivables, current | 144,166 | - | 144,166 | |||||||||
| Prepayments, other receivables and other current assets, net | 1,022,813 | (344,444 | ) | 678,369 | ||||||||
| Due from related parties, net, current | 655,532 | (6,368 | ) | 649,164 | ||||||||
| Total current assets | 2,651,160 | (419,522 | ) | 2,231,638 | ||||||||
| Property and equipment, net | 2,676,524 | (1,266 | ) | 2,675,258 | ||||||||
| Other assets | ||||||||||||
| Operating lease right-of-use assets, net | 60,862 | - | 60,862 | |||||||||
| Operating lease right-of-use assets, net, a related party | 47,128 | - | 47,128 | |||||||||
| Financing lease right-of-use assets, net | 355,383 | - | 355,383 | |||||||||
| Intangible assets, net | 590,727 | (140,698 | ) | 450,029 | ||||||||
| Finance lease receivable, non-current | 92,524 | - | 92,524 | |||||||||
| Due from a related party, net, non-current | 2,747,313 | - | 2,747,313 | |||||||||
| Other non-current assets | 639,863 | - | 639,863 | |||||||||
| Total other assets | 4,533,800 | (140,698 | ) | 4,393,102 | ||||||||
| Total assets | $ | 9,861,484 | $ | (561,486 | ) | $ | 9,299,998 | |||||
| LIABILITIES, MEZZANNIE EQUITY AND EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Borrowings from a financial institution, current | $ | 142,456 | $ | (142,456 | ) | $ | - | |||||
| Accounts payable | 140,532 | (44,129 | ) | 96,403 | ||||||||
| Advances from customers | 122,461 | - | 122,461 | |||||||||
| Income tax payable | 20,019 | - | 20,019 | |||||||||
| Accrued expenses and other liabilities | 3,648,407 | (366,405 | ) | 3,282,002 | ||||||||
| Due to related parties | 170,986 | - | 170,986 | |||||||||
| Operating lease liabilities, current | 14,007 | - | 14,007 | |||||||||
| Operating lease liabilities -a related party | 51,741 | - | 51,741 | |||||||||
| Financing lease liabilities, current | 279,768 | - | 279,768 | |||||||||
| Derivative liabilities | 288,833 | - | 288,833 | |||||||||
| Current liabilities - discontinued operations | 464,000 | - | 464,000 | |||||||||
| Total current liabilities | 5,343,210 | (552,990 | ) | 4,790,220 | ||||||||
| Other liabilities | ||||||||||||
| Borrowings from a financial institution, non-current | 71,228 | (71,228 | ) | - | ||||||||
| Operating lease liabilities, non-current | 20,430 | - | 20,430 | |||||||||
| Financing lease liabilities, non-current | 126,637 | - | 126,637 | |||||||||
| Deferred tax liability | 11,611 | (11,611 | ) | - | ||||||||
| Total other liabilities | 229,906 | (82,839 | ) | 147,067 | ||||||||
| Total liabilities | 5,573,116 | (635,829 | ) | 4,937,287 | ||||||||
| Commitments and contingencies | ||||||||||||
| Mezzanine Equity | ||||||||||||
| Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 991 shares issued and outstanding at March 31, 2024) | 234,364 | - | 234,364 | |||||||||
| Stockholders’ equity | ||||||||||||
| Common stock (par value $0.0001 per share, 500,000,000 shares authorized; 10,518,040 shares issued and outstanding at March 31, 2024 )* | 1,051 | - | 1,051 | |||||||||
| Additional paid-in capital | 43,950,123 | - | 43,950,123 | |||||||||
| Accumulated deficit | (41,384,268 | ) | 443,712 | (40,940,556 | ) | |||||||
| Accumulated other comprehensive loss | (1,672,005 | ) | (369,369 | ) | (2,041,374 | ) | ||||||
| Total Senmiao Technology Limited stockholders’ equity | 894,901 | 74,343 | 969,244 | |||||||||
| Non-controlling interests | 3,159,103 | - | 3,159,103 | |||||||||
| Total equity | 4,054,004 | 74,343 | 4,128,347 | |||||||||
| Total liabilities, mezzanine equity and equity | $ | 9,861,484 | $ | (561,486 | ) | $ | 9,299,998 | |||||
The Unaudited Pro Forma Financial Information include the following pro forma adjustments to give effect to the disposal of XXTX:
| (a) | To eliminate assets and liabilities of XXTX and its subsidiaries as of March 31, 2024. |
2
SENMIAO TECHNOLOGY LIMITED
Unaudited Pro Forma Condensed Combined Statement of Operations
(Expressed in U.S. dollar, except for the number of shares)
For the Three Months Ended June 30, 2024
| Consolidated | Pro Forma adjustments | Pro Forma Adjustment | Pro Forma Consolidated | |||||||||||||
| (Unaudited) | disposal of XXTX | Reverse elimination related to XXTX | (Unaudited) | |||||||||||||
| (a) | (b) | |||||||||||||||
| Revenues | ||||||||||||||||
| Revenues | $ | 1,117,157 | $ | (243,391 | ) | $ | 678 | $ | 874,444 | |||||||
| Revenues, a related party | 5,243 | - | - | 5,243 | ||||||||||||
| Total revenues | 1,122,400 | (243,391 | ) | 678 | 879,687 | |||||||||||
| Cost of revenues | ||||||||||||||||
| Cost of revenues | (800,238 | ) | 175,826 | - | (624,412 | ) | ||||||||||
| Cost of revenues, a related party | (1,627 | ) | - | - | (1,627 | ) | ||||||||||
| Total cost of revenues | (801,865 | ) | 175,826 | - | (626,039 | ) | ||||||||||
| Gross profit | 320,535 | (67,565 | ) | 678 | 253,648 | |||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | (940,268 | ) | 87,448 | (678 | ) | (853,498 | ) | |||||||||
| Provision for credit losses | (173,441 | ) | - | - | (173,441 | ) | ||||||||||
| Total operating expenses | (1,113,709 | ) | 87,448 | (678 | ) | (1,026,939 | ) | |||||||||
| Loss from operations | (793,174 | ) | 19,883 | - | (773,291 | ) | ||||||||||
| Other income (expense) | ||||||||||||||||
| Other income, net | 47,656 | 3,803 | - | 51,459 | ||||||||||||
| Interest expense | (5,860 | ) | 5,860 | - | - | |||||||||||
| Interest expense on finance leases | (5,088 | ) | - | - | (5,088 | ) | ||||||||||
| Change in fair value of derivative liabilities | (8,287 | ) | - | - | (8,287 | ) | ||||||||||
| Total other income, net | 28,421 | 9,663 | - | 38,084 | ||||||||||||
| Loss before income taxes | (764,753 | ) | 29,546 | - | (735,207 | ) | ||||||||||
| Income tax benefit | 1,935 | (1,935 | ) | - | - | |||||||||||
| Net Loss | (762,818 | ) | 27,611 | - | (735,207 | ) | ||||||||||
| Net loss attributable to non-controlling interests from operations | 89,398 | - | - | 89,398 | ||||||||||||
| Net loss attributable to the Company’s stockholders | $ | (673,420 | ) | $ | 27,611 | $ | - | $ | (645,809 | ) | ||||||
| Net loss | $ | (762,818 | ) | $ | 27,611 | $ | - | $ | (735,207 | ) | ||||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation adjustment | (33,036 | ) | 2,140 | - | (30,896 | ) | ||||||||||
| Comprehensive loss | (795,854 | ) | 29,751 | - | (766,103 | ) | ||||||||||
| less: Total comprehensive loss attributable to noncontrolling interests | (60,114 | ) | - | - | (60,114 | ) | ||||||||||
| Total comprehensive loss attributable to stockholders | $ | (735,740 | ) | $ | 29,751 | $ | - | $ | (705,989 | ) | ||||||
| Weighted average number of common stock | ||||||||||||||||
| Basic and diluted | 10,518,040 | 10,518,040 | 10,518,040 | 10,518,040 | ||||||||||||
| Net loss per share - basic and diluted | $ | (0.06 | ) | $ | 0.00 | $ | - | $ | (0.07 | ) | ||||||
The Unaudited Pro Forma Financial Information include the following pro forma adjustments to give effect to the disposal of XXTX:
| (a) | To eliminate revenue, costs of revenue, operating and other expenses of XXTX and its subsidiaries for the three months ended June 30, 2024. |
| (b) | Reflect the reversal of intercompany transaction between XXTX and other entities in Senmiao Group for the three months ended June 30, 2024 as a result of deposal of XXTX. |
3
SENMIAO TECHNOLOGY LIMITED
Unaudited Pro Forma Condensed Combined Statement of Operations
(Expressed in U.S. dollar, except for the number of shares)
For the Year Ended March 31, 2024
| Consolidated | Pro Forma adjustments | Pro Forma Adjustment | Pro Forma Consolidated | |||||||||||||
| (Audited) | Disposal of XXTX | Reverse elimination related to XXTX | (Unaudited) | |||||||||||||
| (a) | (b) | |||||||||||||||
| Revenues | ||||||||||||||||
| Revenues | $ | 6,779,686 | $ | (2,494,397 | ) | $ | 68,362 | $ | 4,353,651 | |||||||
| Revenues, a related party | 34,742 | - | - | 34,742 | ||||||||||||
| Total revenues | 6,814,428 | (2,494,397 | ) | 68,362 | 4,388,393 | |||||||||||
| Cost of revenues | ||||||||||||||||
| Cost of revenues | (4,781,009 | ) | 1,858,557 | - | (2,922,452 | ) | ||||||||||
| Cost of revenues, a related party | (472,848 | ) | - | - | (472,848 | ) | ||||||||||
| Total cost of revenues | (5,253,857 | ) | 1,858,557 | - | (3,395,300 | ) | ||||||||||
| Gross profit | 1,560,571 | (635,840 | ) | 68,362 | 993,093 | |||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | (4,115,436 | ) | 1,053,585 | (68,362 | ) | (3,130,213 | ) | |||||||||
| Provision for credit losses | (1,725,746 | ) | - | - | (1,725,746 | ) | ||||||||||
| Stock-based compensation | (444,300 | ) | - | - | (444,300 | ) | ||||||||||
| Total operating expenses | (6,285,482 | ) | 1,053,585 | (68,362 | ) | (5,300,259 | ) | |||||||||
| Loss from operations | (4,724,911 | ) | 417,745 | - | (4,307,166 | ) | ||||||||||
| Other income (expense) | ||||||||||||||||
| Other income, net | 315,450 | 42,742 | - | 358,192 | ||||||||||||
| Interest expense | (17,630 | ) | 17,116 | - | (514 | ) | ||||||||||
| Interest expense on finance leases | (29,088 | ) | - | - | (29,088 | ) | ||||||||||
| Change in fair value of derivative liabilities | 212,949 | - | - | 212,949 | ||||||||||||
| Total other income, net | 481,681 | 59,858 | - | 541,539 | ||||||||||||
| Loss before income taxes | (4,243,230 | ) | 477,603 | - | (3,765,627 | ) | ||||||||||
| Income tax benefit (expense) | 9,016 | (29,222 | ) | (20,206 | ) | |||||||||||
| Net Loss | (4,234,214 | ) | 448,381 | - | (3,785,833 | ) | ||||||||||
| Net loss attributable to non-controlling interests from operations | 565,240 | - | - | 565,240 | ||||||||||||
| Net loss attributable to the Company’s stockholders | $ | (3,668,974 | ) | $ | 448,381 | $ | - | $ | (3,220,593 | ) | ||||||
| Net loss | $ | (4,234,214 | ) | $ | 448,381 | $ | - | $ | (3,785,833 | ) | ||||||
| Other comprehensive loss | ||||||||||||||||
| Foreign currency translation adjustment | (418,784 | ) | 1,203 | - | (417,581 | ) | ||||||||||
| Comprehensive loss | (4,652,998 | ) | 449,584 | - | (4,203,414 | ) | ||||||||||
| less: Total comprehensive loss attributable to noncontrolling interests | (527,591 | ) | - | - | (527,591 | ) | ||||||||||
| Total comprehensive loss attributable to stockholders | $ | (4,125,407 | ) | $ | 449,584 | $ | - | $ | (3,675,823 | ) | ||||||
| Weighted average number of common stock | ||||||||||||||||
| Basic and diluted | 8,863,190 | 8,863,190 | 8,863,190 | 8,863,190 | ||||||||||||
| Net loss per share - basic and diluted | $ | (0.41 | ) | $ | 0.05 | $ | - | $ | (0.43 | ) | ||||||
The Unaudited Pro Forma Financial Information include the following pro forma adjustments to give effect to the disposal of XXTX:
| (a) | To eliminate revenue, costs of revenue, operating and other expenses of XXTX and its subsidiaries for the year ended March 31, 2024. |
| (b) | Reflect the reversal of intercompany transaction between XXTX and other entities in Senmiao Group for the year ended March 31, 2024 as a result of deposal of XXTX. |
4