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DISCONTINUED OPERATIONS

3 Months Ended

Sep. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 20 - DISCONTINUED OPERATIONS

On May 29, 2023, Shineco Life entered into a stock purchase agreement with Dream Partner, Wintus and certain shareholders of Dream Partner (the “Sellers”), pursuant to which Shineco Life shall acquire 71.42% equity interest in Wintus (the “Acquisition”). On September 19, 2023, the Company closed the Acquisition. As the consideration for the Acquisition, the Company (a) paid the Sellers an aggregate cash consideration of US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667 shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Sellers 100% of the Company’s equity interest in Beijing Tenet-Jove Technological Development Co., Ltd.

In accordance with ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, a disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria in paragraph 205-20-45-1E to be classified as held for sale. When all of the criteria to be classified as held for sale are met, including management, having the authority to approve the action, commits to a plan to sell the entity, the major current assets, other assets, current liabilities, and non-current liabilities shall be reported as components of total assets and liabilities separate from those balances of the continuing operations. At the same time, the results of all discontinued operations, less applicable income taxes benefit, shall be reported as a component of net loss separate from the net loss of continuing operations in accordance with ASC 205-20-45. The results of operations of Tenet-Jove Disposal Group have been reclassified to “net income from discontinued operations” in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) for the three months ended September 30, 2024 and 2023.

The summarized operating result of discontinued operations included in the Company’s unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) consist of the following:


		For the Three Months Ended September 30,
		2024				2023

REVENUE		$	-			$	4,439

COST OF REVENUE
Cost of products			-				4,178
Business and sales related tax			-				5
Total cost of revenue			-				4,183

GROSS PROFIT			-				256

OPERATING EXPENSES
General and administrative expenses			-				41,033
Selling expenses			-				28,947
Total operating expenses			-				69,980

LOSS FROM OPERATIONS			-				(69,724	)

OTHER INCOME
Interest income, net			-				20,269
Total other income			-				20,269

LOSS BEFORE BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS			-				(49,455	)

BENEFIT FOR INCOME TAXES FROM DISCONTINUED OPERATIONS			-				-

LOSS FROM DISCONTINUED OPERATIONS, NET OFF TAX			-				(49,455	)

INCOME ON DISPOSAL OF DISCONTINUED OPERATIONS			-				8,904,702

NET INCOME FROM DISCONTINUED OPERATIONS			-				8,855,247

Net loss attributable to non-controlling interest			-				(795	)

NET INCOME FROM DISCONTINUED OPERATIONS ATTRIBUTABLE TO SHINECO, INC.		$	-			$	8,856,042