Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 52

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 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 following table summarizes the allocation of estimated
fair values of net assets acquired and liabilities assumed:

SCHEDULE
OF ALLOCATION OF ESTIMATED FAIR VALUES

    Due from related party 
    $108,296 
  
    Inventory 
     18,115,423 
  
    Other current assets 
     224,522 
  
    Right of use assets 
     1,127,130 
  
    Long-term investments and other non-current assets 
     166,107 
  
    Other payables and other current liabilities 
     (2,503,607)
  
    Operating lease liabilities 
     (1,013,492)
  
    Total purchase price for acquisition, net of US$112,070 of cash 
    $16,224,379 

Under ASC 805-10, acquisition-related costs (i.e.,
advisory, legal, valuation and other professional fees) are not included as a component of consideration transferred, but are expensed
in the periods in which the costs are incurred. Acquisition-related costs were nil for the nine and three months ended March 31, 2025
and 2024.

    26

The Company has included the operating results of
Guangyuan in the unaudited condensed consolidated financial statements since the Acquisition Date. Nil in net sales and US$12,060 in net
loss of Guangyuan were included in discontinued operations in the unaudited condensed consolidated financial statements for the nine months
ended March 31, 2024. Nil in net sales and net loss of Guangyuan were included in discontinued operations in the unaudited condensed consolidated
financial statements for the three months ended March 31, 2024.

Acquisition of Biowin

On October 21, 2022, the Company, through its wholly-owned
subsidiary, Shineco Life, entered into a stock purchase agreement with