Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 54

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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’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.

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

SCHEDULE OF GOODWILL ACQUIRED

    December 31, 2024  
    June 30, 2024 

    Goodwill 
    $21,440,360  
    $21,440,360 
  
    Less: impairment for goodwill 
     (10,268,823) 
     (10,268,823)
  
    Goodwill, net 
    $11,171,537  
    $11,171,537 

The following table summarizes the allocation
of estimated fair values of net assets acquired and liabilities assumed:

SCHEDULE
OF ALLOCATION OF ESTIMATED FAIR VALUES

    Accounts receivable, net 
    $12,507,353 
  
    Advances to suppliers, net 
     3,513,448 
  
    Inventories, net 
     1,782,180 
  
    Derivative financial assets 
     6,212 
  
    Other current assets, net 
     1,426,163 
  
    Property and equipment, net 
     5,407,301 
  
    Intangible assets 
     36,117,041 
  
    Operating lease right-of-use assets 
     1,999 
  
    Goodwill 
     21,440,360 
  
    Short-term bank loans 
     (12,021,992)
  
    Accounts payable 
     (6,