Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 53

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 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 of the Company’s common stock, par value US$0.001 per share, to the equity holders of Biowin or any persons
designated by Biowin, the total consideration of the acquisition was US$12,097,000. According to the Supplementary Agreement, dated as
of December 30, 2022, by and among the Shineco Life, the Seller and Biowin, the Seller transferred its controlling rights of production
and operation of Biowin to Shineco Life on January 1, 2023. The management determined that January 1, 2023 was the acquisition date of
Biowin. The acquisition provides a unique opportunity for the Company to step into the Point-of-Care Testing industry.

The transaction was accounted for in accordance with
the provisions of ASC 805-10, Business Combinations. The Company retained independent appraisers to advise management in the determination
of the fair value of the various assets acquired and liabilities assumed. The values assigned in these financial statements represent
management’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$6,574,743. The results of operations of Biowin have been
included in the unaudited condensed consolidated 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, the management recorded an impairment
loss on goodwill of Biowin, which amounted to US$4,555,996 during the year ended June 30, 2024.

The identifiable