SUBSEQUENT EVENTS

6 Months Ended

Sep. 30, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

18.    SUBSEQUENT EVENTS

Exercise of Warrants

On October 10, 2020, one of the holders of Series A warrants exercised the warrants to purchase 337,500 shares of the Company's common stock at an exercise price of $0.50 per share, generating gross proceeds of $168,750 to the Company.

Acquisition of  XXTX

On September 11, 2020, Sichuan Senmiao entered into an Investment Agreement of XXTX with all the original shareholders of XXTX, pursuant to which, Sichuan Senmiao agreed to make an investment of RMB3.16 million (approximately $0.5 million) in XXTX in cash in exchange for a 51% equity interest. On October 23, 2020, the registration procedures for the change in shareholders and registered capital have been completed and XXTX became a majority owned subsidiary of Sichuan Senmiao. As of the issuance date of these financial statements, Sichuan Senmiao has made a capital contribution of RMB0.8 million (approximately $0.1 million) to XXTX and the remaining amount is expected to be paid before December 31, 2021. The Company operates a ride-hailing platform through XXTX.

Issuance of RSUs

On October 29, 2020, the Board approved the issuance of an aggregate of 131,819 RSUs to directors, officers and certain employees as stock compensation for their services for the year ending March 31, 2021. Total RSUs granted to these directors, officers and employees were valued at an aggregate fair value of $145,000. These RSUs will vest in four equal quarterly installments on January 29, 2021, April 29, 2021, July 29, 2021 and October 29, 2021 or in full upon the occurrence of a change in control of the Company, provided that the director, officer or the employee remains in service through the applicable vesting date. The RSUs will be settled by the Company’s issuance of shares of common stock in certificated or uncertificated form upon the earlier of (i) vesting date, (ii) a change in control and (ii) termination of the services of the director, officer or employee due to a "separation of service" within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, or the death or disability of such director, officer or employee.