Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 51

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 of the Company’s common stock, par value US$0.001 per share, to the equity holders of
Biowin or any persons designated by Biowin, the total consideration of the acquisition was US$12,097,000. According to the Supplementary
Agreement, dated as of December 30, 2022, by and among the Shineco Life, the Seller and Biowin, the Seller transferred its controlling
rights of production and operation of Biowin to Shineco Life on January 1, 2023. The management determined that January 1, 2023 was the
acquisition date of Biowin. The acquisition provides a unique opportunity for the Company to step into the Point-of-Care Testing industry.

The transaction was accounted for in
accordance with the provisions of ASC 805-10, Business Combinations. The Company retained independent appraisers to advise management
in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial
statements represent management’s best estimate of fair values as of the Acquisition Date.

As required by ASC 805-20, Business Combinations—Identifiable
Assets and Liabilities, and Any Non-controlling Interest, management conducted a review to reassess whether they identified all the assets
acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of
net assets acquired.

The excess of the purchase price over
the aggregate fair value of assets acquired was allocated to goodwill which amounted to US$6,574,743. The results of operations of Biowin
have been included in the unaudited condensed consolidated statements of operations from the date of acquisition.

The management performed an evaluation
on the impairment of goodwill, and due to the lower-than-expected revenue and profit and unfavorable business environment, the management
recorded an impairment loss on goodwill of Biowin, which amounted to US$4,555,996 during the year ended June 30, 2024.

    25

The identifiable goodwill acquired and
the carrying value consisted of the following:

SCHEDULE OF GOODWILL ACQUIRED

    December 31, 2024  
    June 30, 2024 

    Goodwill 
    $6,574,743  
    $6,574,743 
  
    Less: impairment for goodwill 
     (4,555,996) 
     (4