Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 84

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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Sellers”), pursuant
to which Shineco Life shall acquire 71.42% equity interest in Wintus (the “Acquisition”). On September 19, 2023, the Company
closed the Acquisition. As the consideration for the Acquisition, the Company (a) paid the Sellers an aggregate cash consideration of
US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted
Common Stock; and (c) transferred and sold to the Sellers 100% of the Company’s equity interest in Beijing Tenet-Jove Technological
Development Co., Ltd.

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
results of operations of Tenet-Jove Disposal Group have been reclassified to “net income from discontinued operations” in
the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) for the six and three months ended December
31, 2024 and 2023.

The summarized operating result of discontinued
operations included in the Company’s unaudited condensed consolidated statements of income (loss) and comprehensive income (loss)
consist of the following:

SCHEDULE OF DISPOSAL GROUP INCLUDING DISCONTINUED OPERATIONS 

    2024  
    2023  
    2024  
    2023 

    For the Six Months Ended December