Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 56

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 71.42% equity interest
in Wintus. As the consideration for the acquisition, the Company (a) paid the Wintus Sellers an aggregate cash consideration of US$2,000,000;
(b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted Common Stock;
and (c) transferred and sold to the Sellers 100% of the Company’s equity interest in Tenet-Jove. The management determined that
July 31, 2023 was the acquisition date of Wintus.

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$21,440,360. The results of operations of Wintus have been
included in the 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, our management recorded an impairment
loss on the goodwill of Wintus, which amounted to US$10,268,823 during the year ended June 30, 2024 and US$7,950,478 during the nine and
three months ended March 31, 2025.

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

SCHEDULE OF GOODWILL ACQUIRED

    March 31, 2025  
    June 30, 2024 

    Goodwill 
    $21,440,360  
    $21,440,360 
  
    Less: impairment for goodwill 
     (18,219,301) 
     (10,268,823)
  
    Goodwill, net 
     3,221,059