Discontinued Operations

12 Months Ended

Mar. 31, 2026

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

Discontinued operations - Online ride-hailing platform service

Since August 2024, the Company has discontinued its online ride-hailing platform service business.

The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of online ride-hailing platform service in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2026 and 2025, respectively.

		For the Years Ended
		March 31,
		2026				2025
Revenues		$	—			$	344,241
Cost of revenues			—				(247,025	)
Gross profit			—				97,216
Operating expenses			—
Selling, general and administrative expenses			—				(166,937	)
Provision for credit losses			—				(173,278	)
Total operating expenses			—				(340,215	)
Loss from operations			—				(242,999	)
Other income, net			—				33,214
Interest expense			—				(8,372	)
Loss before income taxes			—				(218,157	)
Gain on disposal of discontinued operations			—				397,775
Income tax benefit			—				4,510
Net income from discontinued operations		$	—			$	184,128

Reconciliation of the amount of cash flows from discontinued operations in the consolidated statements of cash flows for the years ended March 31, 2026 and 2025 are as follows:

		For the Years Ended March 31,
		2026				2025
Net cash used in operating activities from discontinued operations		$	—			$	(73,441	)

Net cash provided by investing activities from discontinued operations		$	—			$	49

Net cash used in financing activities from discontinued operations		$	—			$	(82,074	)

Discontinued operations - Automobile Transaction related Services in Sichuan

Prior to December 31,2025, the Company used to operate automobile transaction related services in Sichuan Province, China through Disposed Entities. In December 2025, the Company entered into the Sichuan Acquisition Agreement with HMST. Pursuant to the Sichuan Acquisition Agreement, the Company sold 100% of the equity interests in each of Yicheng and Senmiao Consulting to HMST for nil consideration, while the Company undertook certain liabilities of $518,388 which were previously assumed by the Disposed Entities. On December 31, 2025, the Disposition was completed and the Company disposed its 100% equity interest in Disposed Entities. After the disposition, the Company discontinued its operations in Sichuan Province in China. This decision was driven by recurring losses in Sichuan regional business area, which prompted the Company to strategically exit from its operations in Sichuan Province. In connection with this Disposition, the long-term accumulation of local resources, industry reputation and market reputation of Disposed Entities can promote HMST quickly enter the local market, connect channels and partners, and reduce market development costs; at the same time, HMST can rationally utilize its mature entities and basic assets to reduce new establishment and operating costs. In accordance with ASC 205-20-45, the discontinuation of automobile transaction related services in Sichuan was accounted for as a discontinued operation, as it represented a strategic shift with a significant impact on the Company’s overall operations and financial results. Reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations of Disposed Entities in consolidated balance sheet as of March 31, 2025 are as follows:

		March 31, 2025
ASSETS
Current assets
Cash and cash equivalents		$	132,275
Accounts receivable			12,164
Accounts receivable, a related party			7,924
Prepayments, other receivables, and other current assets, net			233,497
Prepayment - a related party			22,662
Due from related parties, net, current			90,951
Total current assets			499,473

Other Assets
Property and equipment, net			2,934
Finance lease right-of-use assets, net			117,867
Due from a related party, net, non-current			964,075
Total other assets			1,084,876

Total assets		$	1,584,349

LIABILITIES
Current liabilities
Accounts payable		$	38,761
Advances from customers			20,726
Income tax payable			19,918
Accrued expenses and other liabilities			2,504,673
Due to related parties			179,017
Finance lease liabilities, current			360,268
Total current liabilities			3,123,363

Total liabilities		$	3,123,363

The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations of Disposed Entities in the consolidated statements of operations and comprehensive loss for the years ended March 31, 2026 and 2025.

		For the Years Ended March 31,
		2026				2025
Revenues		$	1,346,873			$	1,492,901
Cost of revenues			(919,715	)			(1,214,822	)
Gross profit			427,158				278,079
Operating expenses
Selling, general and administrative expenses			(928,071	)			(759,969	)
Provision for credit losses			(253,942	)			(1,396,034	)
Total operating expenses			(1,182,013	)			(2,156,003	)
Loss from operations			(754,855	)			(1,877,924	)
Other income (expenses), net			226,101				(65,030	)
Interest expense on finance leases			(615	)			(15,145	)
Loss before income taxes			(529,369	)			(1,958,099	)
Gain on disposal of discontinued operations*			426,766				—
Income tax expenses			—				—
Net loss from discontinued operations		$	(102,603	)		$	(1,958,099	)

*

As of December 31, 2025, net deficit from discontinued operations of Disposed Entities was $1,419,775. Together with the realized accumulated other comprehensive loss upon disposal of Disposed Entities and the loss of $518,388 through undertaking of certain liabilities, the Company recorded a total gain of $426,766 on disposal of Disposed Entities.

Reconciliation of the amount of cash flows from discontinued operations in the consolidated statements of cash flows for the years ended March 31, 2026 and 2025 are as follows:

		For the Years Ended March 31,
		2026				2025
Net cash (used in) provided by operating activities from discontinued operations		$	(465,097	)		$	247,871

Net cash used in investing activities from discontinued operations		$	—			$	(481,173	)

Net cash provided by (used in) financing activities from discontinued operations		$	80,100			$	(29,706	)