Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 95

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 5
Chunk 95
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 leaders (KOLs) often supported by advertising, and direct B2B sales. In addition, BW earns service-based fees by providing e-commerce enablement solutions such as livestreaming operations, influencer engagement, and ad placement for third-party merchants.

On March 28, 2023, we closed an acquisition of 100% membership interests of 2lab3. 2lab3 is a Los Angeles-based company engaged in the business of developing AI-powered applications.

In summary, we generated a revenue and had net loss of $71,542 and $8,305,429, respectively, for the year ended March 31, 2025, representing an increase of $71,542 or 100.00% and decrease of $1,621,895 or 16.34% respectively, compared with the fiscal year ended March 31, 2024, during which we generated revenue and had net loss of $0 and $9,927,324, respectively. We incurred our net loss from continuing operations of $7,002,647 and net loss from discontinued operations of $1,302,782 for the year ended March 31, 2025. We incurred a net loss of $9,927,324 for the year ended March 31, 2024, representing a decrease of $62,259,792 or 86.25%, compared with the fiscal year ended March 31, 2023, during which we incurred net loss of $72,187,116.

Critical Accounting Policies

We believe it is helpful to investors to understand the critical accounting policies underlying our financial statements and the following discussion of our company’s financial condition and results of operations.

Use of Estimates

In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable and related allowance for doubtful accounts, useful lives of property, plant and equipment, net and intangible assets, the recoverability of long-lived assets, inventory reserve, allowance for credit losses, goodwill impairment, income taxes related to realization of deferred tax assets and uncertain tax position, provisions necessary for contingent liabilities and purchase price allocation in connection with the business combination