Company: PAVS
Filing Date: 2025-08-04
Form Type: 20-F
Source: 0001929980-25-000590
Chunk: 189

Company: Paranovus Entertainment Technology Ltd.
Filing Date: 2025-08-04
Form: 20-F
Item: Item 18
Chunk 189
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 was based on closing market price of the Company’s common share on the acquisition date.

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:                                                      
  Cash consideration                                                             $        22,440,000  
  Subtotal                                                                       $        22,440,000  
  Recognized amounts of identifiable assets acquired and liability assumed:                           
  Cash                                                                           $           152,456  
  Current assets other than cash                                                             665,180  
  Property, plant and equipment, net                                                          24,856  
  Intangible asset – customer relationships                                               10,751,426  
  Operating lease assets                                                                     101,588  
  Current liabilities                                                                    ( 2,010,410  
  Total identifiable net assets                                                  $         9,685,096  
  Fair value of non-controlling interests                                                  4,745,697  
  Goodwill *                                                                     $        17,500,601  

  The goodwill generated from the expected synergies from the cooperation of providing TikTok-related e-commerce solutions for customers, leveraging its network in the e-commerce industry and uti...  

The business combination accounting is provisionally complete for all assets and liabilities acquired on the acquisition date and the Company will continue to evaluate the asset values within the 1-year timeframe according to ASC 805.

  F-30               
  Table of Contents  

NOTE 12 - DISCONTINUED OPERATIONS

Disposition of the automobile segment

On July 5, 2024, the Company terminated the automobile business and transferred the 100% of the equity interests of Happiness Hong Kong and its subsidiaries together with the automobile-related business to a third party for HK$ 10,000 consideration by the strategic decision.

Disposition of the healthcare and E-commerce segment

On April 10, 2023, the Company entered into an agreement to transfer 100% of the equity interests in the Fujian Happiness Biotech Co., Limited (“ Fujian Happiness”) and its subsidiaries to the third-party Fujian Hengda Beverage Co., Ltd (“ Fujian Hengda”), a PRC company which is not affiliate of the Company or any of its directors or officers. Pursuant to the Disposition SPA, the Purchaser agreed to purchase the Fujian Happiness in exchange for cash consideration of RMB 78 million (approximately $11.3 million, the “ Purchase Price”). Upon the closing of the transaction (the “ Dis