7. PREPAYMENTS, RECEIVABLES AND OTHER ASSETS

As of December 31, 2019 and March 31, 2019, the prepayments, receivables and other assets were comprised of the following:


	December 31, 2019		March 31, 2019
	(Unaudited)
Receivables from borrowers of online lending platform, net (i)	$	906,718	$	—
Due from automobile purchasers, net (ii)		3,178,623		2,564,834
Prepayments for automobiles (iii)		555,543		394,821
Deposits		537,266		294,986
Value added tax ("VAT") recoverable (iv)		105,478		228,196
Deferred issuance costs pursuant to Registration Statement on Form S-3 (v)		—		149,696
Prepaid expenses		261,378		112,147
Employee advances		39,307		—
Others		27,935		48,788
Total prepayments, receivables and other assets		5,612,248		3,793,468
Total prepayments, receivables and other assets - discontinued operations		(910,565)		(6,214)
Total prepayments, receivables and other assets - continuing operations	$	4,701,683	$	3,787,254

(i) Receivables from borrowers of online lending platform, net

The balance of receivables from borrowers of online lending platform represented the outstanding loans the Company assumed from investors on the platform, which will be collected from related borrowers. As of December 31, 2019, the Company recorded allowance of $3,749,284 against doubtful receivables.

(ii) Due from automobile purchasers, net

The balance due from automobile purchasers represented the payment of automobiles and related insurances and taxes made on behalf of the automobile purchasers. The balance is expected to be collected from the automobile purchasers in installments. As of December 31, 2019 and March 31, 2019, the Company recorded allowance of $143,796 and $2,995, respectively, against doubtful receivables.

(iii) Prepayments for automobiles

The balance represented amounts advanced to dealers for automobiles and to other third parties for automobiles related taxes and insurances.

(iv) VAT recoverable

The balance of VAT recoverable represented the amount to be utilized to offset the Company’s future VAT arising from sales of goods.

(v) Deferred issuance costs pursuant to Registration Statement on Form S-3

On April 15, 2019, the Company’s Registration Statement on Form S-3 registering up to $80,000,000 in aggregate principal amount of its common stock, preferred stock, debt securities, warrants, rights and/or units were declared effective. The deferred issuance costs pursuant to Form S-3 represented the direct and incremental costs related to the registered direct offering closed on June 21, 2019. The deferred issuance costs were netted against the gross proceeds of the offering on the effective date of the offering.