Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 91

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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Wang Acquisition”) to Shineco Life. In consideration of the FuWang Acquisition,
(a) Shineco Life paid the Seller RMB 63.89 million in cash, (b) the Company issued and transferred 3,400,000 shares of the Company’s
common stock, par value $0.001 per share to the Seller, and (c) the Company transferred its 71.42% equity interests in Dream Partner to the Seller.
The Company obtained the controlling rights of production and operation of FuWang (HK) on April 1, 2025.

    48

In accordance with ASU No. 2014-08, Reporting Discontinued
Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of
an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a
major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E
to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the
authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and
non-current liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing
operations. At the same time, the results of all discontinued operations, less applicable income taxes benefit, shall be reported as a
component of net loss separate from the net loss of continuing operations in accordance with ASC 205-20-45. The assets and liabilities
of the Tenet-Jove Disposal Group and Wintus have been reclassified as “assets of discontinued operations” and “liabilities
of discontinued operations” within current and non-current assets and liabilities, respectively, on the unaudited condensed consolidated
balance sheet as of March 31, 2025 and the consolidated balance sheet as of June 30, 2024.
The results of operations of Tenet-Jove Disposal Group and Wintus have been reclassified to “net income (loss) from discontinued
operations” in the unaudited condensed consolidated statements of loss and comprehensive
loss for the nine and three months ended March 31, 2025 and 2024.

The carrying amount of the major classes of assets
and