Senmiao Technology Ltd Goodwill & Intangibles Disclosure
10. INTANGIBLE ASSETS, NET
Intangible assets consisted of the following:
| March 31, |
| March 31, | |||
2023 | 2022 | |||||
Software |
| $ | 793,381 | $ | 796,042 | |
Online ride-hailing platform operating licenses |
|
| 441,557 |
| 450,701 | |
Subtotal | 1,234,938 | 1,246,743 | ||||
Less: accumulated amortization | (460,614) | (287,192) | ||||
Total intangible assets, net | $ | 774,324 | $ | 959,551 | ||
Amortization expense from continuing operations totaled $184,215 and $160,831 for the years ended March 31, 2023 and 2022, respectively.
The following table sets forth the Company’s amortization expense for the next five years ending:
| Amortization | ||
expenses | |||
Twelve months ending March 31, 2024 | $ | 177,316 | |
Twelve months ending March 31, 2025 |
| 170,232 | |
Twelve months ending March 31, 2026 |
| 115,868 | |
Twelve months ending March 31, 2027 |
| 79,211 | |
Twelve months ending March 31, 2028 | 77,511 | ||
Thereafter |
| 154,186 | |
Total | $ | 774,324 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Jul 13, 2023 | Showing above |
| 2022 | Jul 15, 2022 | |
| 2021 | Jul 8, 2021 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.