4. DISCONTINUED OPERATIONS

On October 17, 2019, the Board approved the Plan under which the Company has discontinued and is winding down its online P2P lending services business. The Company determined that the continued operation of its online P2P lending services business was not viable in light of the recently tightened regulations on online peer-to-peer lending in China generally and the unofficial request from local regulator to reduce the Company’s online peer-to-peer lending transaction volume on a monthly basis. The Company also determined that the discontinuation of its online P2P lending services business would allow the Company to focus its resources on its automobile financing facilitation and transaction business. In connection with the Plan, the Company ceased facilitation of loan transactions on its online lending platform and assumed all the outstanding loans from investors on the platform. The decision and action taken by the Company of discontinuing the online lending services business represented a major shift that will have a major effect on the Company’s operations and financial results, which triggers discontinued operations accounting in accordance with ASC 205-20-45.

The fair value of discontinued operations, determined as of October 17, 2019, includes estimated consideration expected to be received, less costs to sell. After consideration of the determination of fair value of the discontinued operations including the assumption of all the outstanding loans from investors on the platform, $143,668 of accounts receivable, $3,760,599 of other receivables, and $143,943 of prepayments for impaired intangible assets were indicated as of the date the Company’s Board of Directors approved the winding down of the Company’s online P2P lending services business on October 17, 2019, and the Company recognized $4,048,210 provision for doubtful accounts as of September 30, 2019 in related to the Company's online lending services business, while the Company did not recognize any additional provision for doubtful accounts for the six months ended September 30, 2020.

The following table sets forth the reconciliation of the carrying amounts of major classes of assets and liabilities from discontinued operations in the unaudited condensed consolidated balance sheets as of September 30, 2020.

Carrying amounts of major classes of assets included as part of discontinued operations:


	September 30,		March 31,
	2020		2020
	(Unaudited)

Current assets
Cash and cash equivalents	$	—	$	10,139
Prepayments, other receivables and other assets, net		588,068		816,441
Total current assets		588,068		826,580

Property and equipment, net		7,412		11,206

Total assets	$	595,480	$	837,786

Carrying amounts of major classes of liabilities included as part of discontinued operations:


	September 30,		March 31,
	2020		2020
	(Unaudited)

Current liabilities
Accrued expenses and other liabilities	$	3,030,422	$	4,204,012
Due to stockholders		47,084		182,095
Due to related parties and affiliates		—		76,286
Lease liabilities		—		53,899
Total current liabilities		3,077,506		4,516,292

Total liabilities	$	3,077,506	$	4,516,292

The following table sets forth the reconciliation of the amounts of major classes of income and losses from discontinued operations in the unaudited condensed consolidated statements of operations and comprehensive loss for three months and six months ended September 30, 2020 and 2019.


	For the Three Months Ended				For the Six Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenues	$	2,474	$	35,879	$	4,554	$	117,756

Operating expenses
Selling, general and administrative expenses		—		(496,472)		(88,438)		(1,076,527)
Impairments of intangible assets and goodwill		—		(266,534)		—		(266,534)
Total operating expenses		—		(763,006)		(88,438)		(1,343,061)

Income (loss) from discontinued operations		2,474		(727,127)		(83,884)		(1,225,305)

Other income, net		5,401		6,120		6,105		25,195

Income (loss) before income taxes		7,875		(721,007)		(77,779)		(1,200,110)

Income tax expenses		—		—		—		—

Net income (loss) attributable to stockholders	$	7,875	$	(721,007)	$	(77,779)	$	(1,200,110)