Continuing-operations revenue fell 15.6% year-over-year to $360,889, led by an 18.9% drop in operating-lease revenue to $313,335 as the company leased 329 automobiles at roughly $344 average monthly rent versus 339 at ~$398 in the prior-year quarter; finance-lease revenue halved to $11,813 (26 average vehicles vs. 52), overall auto utilization declined to 93.1% from 96.0%, and the operating loss widened to $630,780.
The company completed the disposition of its entire Sichuan Province operation on December 31, 2025, selling 100% equity interests in Yicheng, Senmiao Consulting, and their subsidiaries to a non-affiliated Hong Kong buyer for nil consideration while assuming $518,388 in liabilities; prior-year Sichuan results were retrospectively reclassified as discontinued operations, and no Sichuan revenue was recognized in the current quarter.
Hunan Ruixi ceased its automobile finance-lease business on July 31, 2025 after operating since March 2019; the company now generates continuing-operations revenue solely from short-term operating leases, NEV leasing service fees, and ancillary services in Hunan Province, staffing the Changsha operation with one sales employee and three parking/management staff.
NEV leasing service fees resumed at $21,291 for the quarter (vs. $0 in the prior-year quarter) after a suspension running from August 2023 through July 2025; the fees cover ride-hailing training, Network-Appointed Taxi Transport Certificate application assistance, and operational management services for electric-vehicle lessees.
In July 2026, subsequent to quarter-end, the company's Wyoming subsidiary Green Energy signed an operating agreement with Constant Energy Construction Corp. to establish Nebula Matrix AI LLC, in which the company holds 90% economic and voting interests, with the stated purpose of developing, financing, and operating AI data centers and digital infrastructure projects in the United States; the company also appointed David Nichols as strategic advisor for AI and digital infrastructure. No specific project locations, capital contributions, timelines, or power-capacity targets were finalized as of the filing date, and the company noted that no assurance exists of generating operating revenue from the planned data-center initiatives.
Management concluded that disclosure controls and procedures were not effective as of June 30, 2026 due to material weaknesses in internal control over financial reporting, including insufficient accounting personnel to handle complex U.S. GAAP issues, absence of an internal audit function, and IT general-control deficiencies; these weaknesses contributed to a restatement of the company's unaudited financial statements for the three and nine months ended December 31, 2025.
(Filed on June 30, 2026)
-22.2%
-4.4%
$3.6M
On December 31, 2025 (end of Q3 FY2026), the company completed the sale of all its Sichuan Province subsidiaries (Yicheng, Senmiao Consulting and subsidiaries) to non-affiliated Hu Mao Sheng Tang Holdings Limited for nil consideration while assuming $518,388 in liabilities, ceasing all automobile transaction services in Sichuan. Post-transaction, all continuing operations are concentrated in Changsha through the single subsidiary Hunan Ruixi. In Q4, on January 15, 2026, the company submitted a Nasdaq compliance plan reporting the Disposition, believing it remedied a stockholders' equity deficiency flagged in December 2025.
During fiscal year 2026, the company began evaluating expansion into AI infrastructure and appointed David Nichols as strategic advisor focused on power infrastructure origination, capital formation, and institutional partnerships. Management is conducting commercial, operational, and strategic due diligence on several potential AI data center projects but has entered no definitive agreements as of the filing date. In February 2026 (Q4), the company established Green Energy Capital Asset Inc., a wholly-owned Wyoming corporation, to support new energy and digital infrastructure initiatives.
Annual operating metrics (fiscal year ended March 31, 2026, not Q4-only): the company leased approximately 340 automobiles at an average monthly rental of roughly $381 per vehicle, with operating lease utilization declining to 88.3% from 92.3% in the prior year. Revenue from continuing operations was $1.55 million (down from $1.90 million), and net loss from continuing operations widened to $5.27 million (from $1.91 million). The company serviced approximately 1,000 customers, predominantly online ride-hailing drivers in Changsha, and generated $64,833 in new NEV leasing service fees (a new revenue line not present in the prior year).
Changsha municipal regulations require all newly added vehicles used for online ride-hailing to be new energy vehicles starting in 2027. The company's current fleet of ~340 vehicles includes a mix of conventional and NEV models, and the filing flags uncertainty about whether the company has sufficient capital to acquire NEVs at scale given its loss history, noting dependencies on NEV manufacturer relationships (e.g., BYD), charging infrastructure adaptation, and driver acceptance as operational transition risks.
The company identified material weaknesses in internal control over financial reporting during the FY2026 audit, including insufficient personnel with U.S. GAAP expertise (which resulted in restatement of unaudited financial statements for the three and nine months ended December 31, 2025), lack of adequate internal audit policies, and deficiencies in IT general controls (logical access security, change management, IT operations, and cybersecurity). Management plans to hire additional accounting staff, establish an internal audit function, and improve IT systems, but noted no assurance of successful remediation.
(Filed on June 30, 2026)
(Filed on February 13, 2026)
-20.5%
13.8%
$3.5M
Completed strategic exit from Sichuan: On December 31, 2025, the Company closed the sale of 100% of Yicheng, Senmiao Consulting and subsidiaries to non-affiliated HMST for zero consideration, driven by recurring losses in the region. The Company assumed $518,388 in the subsidiaries' debts and recorded a $426,766 gain on disposal; the Sichuan automobile transaction and related services business is now reported as discontinued operations.
Q3 continuing-operations revenue fell 20.6% to $358,684 (prior-year Q3: $451,447). Operating-lease rental revenue declined 22.6% to $317,153 on 322 vehicles (vs. 346) at an average monthly rental of ~$319 (vs. ~$394); fleet utilization dropped to 85.7% from 91.4%. Gross margin compressed to 13.8% from 23.5%. A new NEV-leasing service-fee line contributed $14,799 (zero in prior-year Q3).
Q3 provision for credit losses of $244,908 was recorded against the due-from-Jinkailong balance (prior-year Q3: $104,700), bringing the cumulative allowance to $2,483,315 and fully reserving the gross receivable to a net carrying value of $0. Jinkailong, in which the Company retains a 35% equity stake, was deconsolidated in 2022.
Two equity financings closed in November 2025: a PIPE offering (500,000 shares at $1.32, ~$660K gross) on November 14 and a registered direct offering (1,350,000 shares plus 905,000 pre-funded warrants at $1.26, ~$2.8M gross) on November 20. Cash rose to $3.51M and net working capital to ~$2.4M; management concluded substantial doubt about going concern no longer exists for the next twelve months.
The Company disclosed that disclosure controls and procedures were not effective as of December 31, 2025, citing three material weaknesses: insufficient accounting personnel for complex U.S. GAAP issues, inadequate internal-audit policies, and deficiencies in IT general controls (logical access, change management, IT operations, cybersecurity). No remediation was completed during the quarter.
(Filed on November 19, 2025)
+25.5%
29.3%
$677K
Hunan Ruixi ceased its automobile financial leasing business effective July 31, 2025, narrowing the company's continuing operations to auto operating leases, NEV leasing service fees, monthly platform commissions, default charges, and other support services. The company had been engaged in financial leasing since March 2019 and had delivered 197 vehicles under financing leases cumulatively through the filing date.
Q2 operating-lease performance improved materially: the company leased 715 vehicles (vs. 596 a year earlier) at an average monthly rental of ~$402 per vehicle, producing $747,515 in operating-lease revenue, up 27.9% YoY. Average fleet utilization rose to 91.9% (from 80.4% in Q2 2024), lifting overall gross margin from 13.0% to 29.3%. NEV leasing service fees nearly doubled to $111,115 (from $51,694), while total Q2 revenue reached $936,344, up 25.5% YoY.
The company streamlined its Chengdu workforce, reducing average monthly headcount from 60 to 36 YoY, and entered a cost-sharing arrangement with its 35%-owned equity investee Jinkailong for venue and personnel resources. This drove a $413,362 YoY increase in professional/outsourced service fees in Q2 ($230,935 in service fees to Jinkailong for the quarter) while salary and employee-benefit costs declined $72,560. The company also recorded a $125,046 provision for credit losses against its Jinkailong receivable during Q2, bringing the cumulative allowance to $5.39 million against a gross balance of ~$6.73 million.
A 1-for-10 reverse stock split of common stock became effective July 29, 2025, during the quarter. In Q2, holders of November 2021 private-placement warrants exercised for 53,357 shares at $2.16 per share and six additional holders exercised on a cashless basis for 1,345,820 shares; total outstanding common stock increased from 1,051,804 shares at March 31, 2025 to 2,507,489 shares at September 30, 2025 (all figures retroactively adjusted for both 1-for-10 splits).
Management concluded there is substantial doubt about the company's ability to continue as a going concern, citing a $2.6 million working-capital deficit, $45.9 million accumulated deficit, and ongoing operating cash outflows. Subsequent to quarter-end, the company closed a $660,000 PIPE offering (500,000 shares at $1.32, November 14, 2025) and entered into a registered direct offering for 1,350,000 shares plus 905,000 pre-funded warrants at $1.26 per share (~$2.8 million gross), expected to close by November 21, 2025; management stated that even these financings would not be sufficient to restore a positive working-capital position for one year without further funding.
The filing notes that total China online ride-hailing order volume in September 2025 fell approximately 26% YoY (to ~758 million orders), while the number of licensed platforms rose ~9% to 393. Multiple municipal transportation bureaus have issued market-saturation warnings, and aggregation-platform compliance checks in cities including Chengdu reduced order dispatch to platforms serving drivers without proper licenses; approximately 40% of the company's ride-hailing driver customers had not obtained the required driver's license as of September 30, 2025.
