Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 55

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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686,700)
  
    Advances from customers 
     (78,677)
  
    Tax payable 
     (600,742)
  
    Deferred income 
     (77,007)
  
    Other current liabilities 
     (2,277,877)
  
    Long-term bank loans 
     (2,071,093)
  
    Operating lease liabilities - non-current 
     (1,847)
  
    Deferred tax liabilities 
     (9,186,376)
  
    Non-controlling interest 
     (8,197,473)
  
    Total purchase price for acquisition, net of US$1,003,678 of cash 
    $41,002,273 
  
    Total purchase price for acquisition 
    $41,002,273 

    27

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 
    $35,487,273  
    10
  
    Less: accumulated amortization 
     (5,027,364) 

    Total intangible assets, net 
    $30,459,909  

The amortization expense of intangible
assets was US$1,774,363 and US$1,478,636 from the continuing operations for the six months ended December 31, 2024 and 2023, respectively.
The amortization expense of intangible assets was US$887,182 and US$887,181 from the continuing operations for the three months ended
December 31, 2024 and 2023, respectively.

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 and US$779,606 for the six months ended
December 31, 2024 and 2023, respectively. Acquisition-related costs were nil for the three months ended December 31, 2024 and 2023, respectively.

The Company has included the operating
results of Wintus in continuing operations in its unaudited condensed consolidated financial statements since the Acquisition Date. US$5,005,387