| DISCONTINUED OPERATIONS |
12.
DISCONTINUED OPERATIONS
Due to the declining performance of sales of
e-bicycle business, the Company determined to dispose the variable interest entity, Jiangsu EZGO Electronic Technologies Co., Ltd. (“Jiangsu
EZGO”), and its subsidiaries. On March 30, 2025, the Company’s Board of Directors approved this disposal of Jiangsu EZGO
and its subsidiaries. The disposal is expected to be executed through a sale transaction and is anticipated to be completed within 12
months from the date of approval by the Board of Directors. The VIE and subsidiaries mainly operated in sales of e-bicycles business
in PRC. The disposal of the sales of e-bicycles business represented strategic shifts of the Company that had a major impact on the Company’s
financial results, and met the held-for-sale criteria, which trigger discontinued operations accounting in accordance with ASC 205-20-45.
Therefore, the historical financial results of the sales of e-bicycles business were classified as discontinued operation and the related
assets and liabilities associated with the discontinued operations of the prior year were reclassified as assets/liabilities held for
sale to provide comparable financial information.
The
following tables set forth the assets, liabilities, results of operations and cash flows of the discontinued operations, which were included
in the Company’s unaudited condensed consolidated financial statements.
| | |
As of
September 30,
2024 | | |
As of
March 31,
2025 | |
| | |
| | |
(Unaudited) | |
| Cash and cash equivalents | |
$ | 54,365 | | |
$ | 17,341 | |
| Restricted cash | |
| 842 | | |
| 781 | |
| Accounts receivable, net | |
| 509,458 | | |
| 2,305,995 | |
| Inventories, net | |
| 1,717 | | |
| 821 | |
| Advances to suppliers, net | |
| 164 | | |
| 158 | |
| Amounts due from related parties, current | |
| 4,578,844 | | |
| 3,328,447 | |
| Prepaid expenses and other current assets | |
| 1,454,735 | | |
| 485,091 | |
| Current assets of discontinued operation | |
| 6,600,125 | | |
| 6,138,634 | |
| | |
| | | |
| | |
| Non-current assets: | |
| | | |
| | |
| Property, plant and equipment, net | |
| 33,137 | | |
| 13,667 | |
| Right-of-use assets, net | |
| 48,241 | | |
| 34,803 | |
| Long-term investments, net | |
| 1,407,619 | | |
| 1,300,172 | |
| Non-current assets of discontinued operation | |
| 1,488,997 | | |
| 1,348,642 | |
| | |
| | | |
| | |
| Total assets of discontinued operation | |
$ | 8,089,122 | | |
$ | 7,487,276 | |
| | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 1,067,018 | | |
$ | 1,050,123 | |
| Advances from customers | |
| 228,415 | | |
| 220,766 | |
| Income tax payable | |
| 726,796 | | |
| 702,849 | |
| Lease liabilities, current | |
| 24,262 | | |
| 23,915 | |
| Amounts due to related parties, current | |
| 279,175 | | |
| 1,195,892 | |
| Accrued expenses and other payables | |
| 4,697,057 | | |
| 4,524,877 | |
| Total current liabilities of discontinued operation | |
| 7,022,723 | | |
| 7,718,422 | |
| | |
| | | |
| | |
| Non-current liabilities: | |
| | | |
| | |
| Lease liabilities, non-current | |
| 23,069 | | |
| 10,237 | |
| Total non-current liabilities of discontinued operation | |
| 23,069 | | |
| 10,237 | |
| Total liabilities of discontinued operation | |
| 7,045,792 | | |
| 7,728,659 | |
| | |
Six Months Ended
March 31, | |
| | |
2024 | | |
2025 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Net revenues | |
$ | 1,771,339 | | |
$ | 752,748 | |
| Cost of revenues | |
| (1,892,416 | ) | |
| (736,438 | ) |
| Gross (loss) profit | |
| (121,077 | ) | |
| 16,310 | |
| | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | |
| Selling and marketing | |
| (157,904 | ) | |
| (84,274 | ) |
| General and administrative | |
| (1,227,262 | ) | |
| (111,527 | ) |
| Research and development | |
| (5,161 | ) | |
| - | |
| Total operating expenses | |
| (1,390,327 | ) | |
| (195,801 | ) |
| | |
| | | |
| | |
| Loss from discontinued operations | |
| (1,511,404 | ) | |
| (179,491 | ) |
| | |
| | | |
| | |
| Other income (expenses): | |
| | | |
| | |
| Interest expenses | |
| (5,542 | ) | |
| (12,969 | ) |
| Interest income | |
| 16,494 | | |
| 12,261 | |
| Non-operating income, net | |
| 28,001 | | |
| 14,573 | |
| Total other income, net from discontinued operations | |
| 38,953 | | |
| 13,865 | |
| | |
| | | |
| | |
| Loss from discontinued operations before income taxes and share of loss of equity method investments | |
| (1,472,451 | ) | |
| (165,626 | ) |
| Income tax expenses | |
| - | | |
| - | |
| Share of loss of equity method investments | |
| (56,513 | ) | |
| (63,152 | ) |
| Net loss from discontinued operations | |
| (1,528,964 | ) | |
| (228,778 | ) |
| Less: Net loss attributable to non-controlling interests from discontinued operations | |
| (520,746 | ) | |
| (52,296 | ) |
| Net loss attributable to EZGO Technologies Ltd.’s shareholders from discontinued operation | |
$ | (1,008,218 | ) | |
$ | (176,482 | ) |
| | |
Six Months Ended
March 31, | |
| | |
2024 | | |
2025 | |
| | |
(Unaudited) | | |
(Unaudited) | |
| Net cash provided by operating activities from discontinued operations | |
$ | 138,853 | | |
$ | 750,707 | |
| Net cash provided by investing activities from discontinued operations | |
| 427,990 | | |
| 203,511 | |
| Net cash provided by financing activities from discontinued operation | |
| 113,260 | | |
| 36,428 | |
|