Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 188

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 18
Chunk 188
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 since the acquisition date of March 28, 2023.

The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified and contingent consideration as of the acquisition day.

The identifiable intangible assets acquired upon acquisition were proprietary technology with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration was based on the closing market price of the Company’s common share on the acquisition date.

  F-29               
  Table of Contents  

According to the independent valuation report, the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values was as follows:

  Fair value of total consideration transferred:                                                    
  Equity instrument (1.374 million Class A Ordinary Shares issued)               $       7,081,250  
  Subtotal                                                                       $       7,081,250  
  Recognized amounts of identifiable assets acquired and liability assumed:                         
  Cash                                                                           $             555  
  Intangible asset –proprietary technology                                               1,900,000  
  Current liabilities                                                                      ( 3,341  
  Total identifiable net assets                                                  $       1,897,214  
  Fair value of non-controlling interests                                                        -  
  Goodwill *                                                                     $       5,184,036  

  The goodwill generated from the expected synergies from the output capacity of the transaction and service scenario of developing AI-powered applications.  

Acquisition ofBW

On March 25, 2025, the Company acquired51% equity interest of BW and its subsidiaries with total cash consideration of $22.44million. BW is a company incorporated in New York, the United States and has no substantive operations other than holding all of the equity interest of Wookoo and Bomie. Wookoo is focus on e-commerce sales and Bomie US is focus on trading and providing E-commerce solutions. The acquisition has further strengthened the E-commerce network of the Company. The results of BW and its subsidiaries have been included in the consolidated financial statements of the Company since the acquisition date of March 25, 2025.

The Company engaged an independent valuation firm to assist management in valuing assets acquired, liabilities assumed, intangible assets identified and contingent consideration as of the acquisition day.

The identifiable intangible assets acquired upon acquisition were customer relationships with definite useful life. All other current assets and current liabilities carrying value approximated fair value at the time of acquisition. The fair value of the consideration