Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 111

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 5
Chunk 111
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consist solely of independent directors) must approve all related party transactions. All related party transactions will be made or entered into on terms that are no less favorable to use than can be obtained from unaffiliated third parties. Related party transactions that we have previously entered into were not approved by independent directors, as we had no independent directors at that time.

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Holding Company Structure

We are a holding company with no material operations of our own. We used to conduct our operations through our subsidiaries in China. As a result, our ability to pay dividends depended upon dividends paid by our PRC subsidiaries in previous years.

Currently, our operation is conducted through our wholly owned subsidiaries, 2Lab3 and 51% owned subsidiary, Bomie Wookoo Inc in the United States.

C. Research and development, patents, and licenses, etc.

Please refer to Item 4 Subparagraph B “ Information on the Company - Business Overview - Research and Development”, “ Information on the Company - Business Overview - Trademarks, Copyrights, Patents and Domain Names” and “ Information on the Company - Business Overview - Licenses, Permits and Government Regulations.”

D. Trend Information

Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our net revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

E. Critical Accounting Estimates

Management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant estimates required to be made by management include, but are not limited to, the valuation of accounts receivable and related allowance for doubtful accounts, useful lives of property and equipment and intangible assets, the recoverability of long-lived assets, inventory reserve, goodwill impairment, income taxes related to realization of deferred tax assets and uncertain tax position, provisions necessary for contingent liabilities and contingent consideration. The current economic environment has increased the degrees of uncertainty inherent in those estimates and assumptions, actual results could differ from those estimates.

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ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES