Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 74

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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,124)
  
    Total deferred tax liability 
     (9,435,301) 
     (10,266,124)
  
    Deferred tax liability, net 
     (8,959,583) 
     (9,835,306)
  
    Less: deferred tax liability, net, held for discontinued operations 
     (7,958,986) 
     (8,646,588)
  
    Deferred tax liability, net, held for continuing operations 
    $(1,000,597) 
    $(1,188,718)

    39

SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE 

    March 31, 2025  
    June 30, 2024 

    Beginning balance 
    $1,110,668  
    $2,471,066 
  
    Acquisition of subsidiaries 
     -  
     154,481 
  
    Disposal of Tenet Jove 
     -  
     (2,392,580)
  
    Current year addition 
     2,914,444  
     881,746 
  
    Exchange difference 
     1,464  
     (4,045)
  
    Valuation allowance 
     4,026,576  
     1,110,668 
  
    Less: valuation allowance, held for discontinued operations 
     (3,666,103) 
     (902,285)
  
    Valuation allowance, held for continuing operations 
    $360,473  
    $208,383 

(b) Value-Added Tax

The Company is subject to a VAT for selling goods.
All of the Company’s products that were sold in the PRC were subject to a Chinese value-added tax at rates ranging from 3% to 13%,
depending on the type of products sold. For overseas sales, VAT is exempted on the exported goods. The amount of VAT liability is determined
by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant
supporting invoices (input VAT). Under commercial practice in the PRC, the Company pays VAT based on tax invoices issued. The tax invoices
may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the
revenue is recognized and the date on which the tax invoice