Senmiao Technology Ltd Leases Disclosure
15. LEASES
Lessor
The Company’s operating leases for automobile rentals have rental periods that are typically short term, generally is twelve months or less. In the revenue recognition section of Note 3 (q), the Company discloses that revenue earned from automobile rentals, wherein an identified asset is transferred to the customer and the customer has the ability to control that asset, is accounted for under Topic 842 upon adoption for the years ended March 31, 2026 and 2025.
Lessee
As of March 31, 2026 and 2025, the Company has engaged in offices and showroom leases which were classified as operating leases. Payments under the Company’s lease arrangement are fixed.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company recognized lease expense on a straight-line basis over the lease term for operating lease. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate applied to the remaining balance of the liability.
As of March 31, 2026, the weighted-average remaining operating lease term of its existing leases is approximately 1.17 years.
expense for office and showroom leases totaled $41,067 and $73,736 for the years ended March 31, 2026 and 2025 respectively, of which $38,508 and $53,272 were amortization of leased asset for operating leases for the years ended March 31, 2026 and 2025, respectively.
The following table sets forth the Company’s minimum lease payments in future periods:
| Operating lease | ||||
| payments* | ||||
| Twelve months ending March 31, 2027 | $ | 59,521 | ||
| Total lease payments | 59,521 | |||
| Less: imputed interest | (1,498 | ) | ||
| Present value of lease liabilities | $ | 58,023 | ||
| * | As of March 31, 2026, the outstanding balance of operating lease payments due to a related party was $58,023, which included $17,506 of rent for the period from January to May 2026 that should be paid by March 31, 2026 in accordance with the lease contract.
As of March 31, 2025, the outstanding balance of operating lease payments due to a related party was $10,365. |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Jun 30, 2026 | Showing above |
| 2025 | Jul 10, 2025 | |
| 2024 | Jun 27, 2024 | |
| 2023 | Jul 13, 2023 | |
| 2022 | Jul 15, 2022 | |
| 2021 | Jul 8, 2021 | |
| 2020 | Jul 9, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.