Senmiao

Capital allocation has relied on repeated equity-linked financings that carry heavy warrant overhang and cause significant dilution. Shares outstanding rose from 1.05 million at March 31, 2025 to 4.56 million at March 31, 2026, then to 14.56 million by August 10, 2026, with authorization increased to 500 million common shares.

The company also disclosed a non-reliance event for its December 31, 2025 quarter, and material weaknesses in internal control persist. We do not see evidence of high-return reinvestment or disciplined buybacks; rather, financings appear necessary to fund losses.