Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 50

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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acquired and all the liabilities assumed, and followed ASC 805-20’s measurement procedures for recognition of the fair value of
net assets acquired.

    24

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 six and three months ended December
31, 2024 and 2023.

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
six months ended December 31, 2023. 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 December 31, 2023.

Acquisition of Biowin

On October 21, 2022, the Company, through
its wholly-owned subsidiary, Shineco Life, entered into a stock purchase agreement with the Seller and Biowin, pursuant to which Shineco
Life would acquire 51% of the issued equity interests of Biowin from Seller. On December 30, 2022, Shineco Life closed the acquisition
of 51% of the issued equity interests of Biowin. As the consideration for the acquisition, the Company paid to Seller US$9,000,000 in
cash and the Company issued 13,583 shares