Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 52

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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,555,996)
  
    Goodwill, net 
    $2,018,747  
    $2,018,747 

The following table summarizes the allocation
of estimated fair values of net assets acquired and liabilities assumed:

SCHEDULE
OF ALLOCATION OF ESTIMATED FAIR VALUES

    Accounts receivable, net 
    $807,771 
  
    Inventories, net 
     784,336 
  
    Other current assets, net 
     49,979 
  
    Property and equipment, net 
     138,252 
  
    Intangible assets 
     12,683,656 
  
    Operating lease right-of-use assets 
     173,831 
  
    Goodwill 
     6,574,743 
  
    Deferred tax assets, net 
     346,523 
  
    Short-term bank loans 
     (1,594,596)
  
    Accounts payable 
     (349,989)
  
    Advances from customers 
     (407,437)
  
    Other current liabilities 
     (446,729)
  
    Operating lease liabilities - non-current 
     (45,730)
  
    Deferred tax liabilities 
     (1,937,804)
  
    Non-controlling interest 
     (5,301,785)
  
    Total purchase price for acquisition, net of US$621,979 of cash 
    $11,475,021 

The fair value of identified intangible
assets, which are trademarks and patents, and its estimated useful lives as of December 31, 2024 is as follows:

SCHEDULE
OF INTANGIBLE ASSETS

    Average

    Useful Life

    (in Years)

    Intangible assets 
    $12,683,656  
    10
  
    Less: accumulated amortization 
     (2,536,731) 

    Total intangible assets, net 
    $10,146,925  

The amortization expense of intangible
assets was US$634,183 and US$634,182 from the continuing operations for the six months ended December 31, 2024 and 2023, respectively.
The amortization expense of intangible assets was US$317,091 and US$317,091 from the continuing operations for the three months ended
December 31, 2024 and 2023, respectively.

Under ASC 805-10, acquisition-related
costs (i