Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 47

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 that are reasonably certain to be exercised in the determination
of the lease term and initial measurement of ROU assets and lease liabilities. Lease expenses for lease payment are recognized on a straight-line
basis over the lease term. Leases with initial terms of 12 months or less are not recorded on the balance sheet.

When available, the Company uses the
rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a
readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing
rate. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The table below presents the operating
lease related assets and liabilities recorded on the balance sheets.

SCHEDULE
OF OPERATING LEASE RELATED ASSETS AND LIABILITIES

    December 31, 2024  
    June 30, 2024 

    ROU lease assets 
    $112,159  
    $146,035 

    Operating lease liabilities – current 
     297,775  
     272,787 
  
    Operating lease liabilities – non-current 
     12,143  
     - 
  
    Total operating lease liabilities 
    $309,918  
    $272,787 

The weighted average remaining lease
terms and discount rates for all of operating leases were as follows as of December 31, 2024 and June 30, 2024:

SCHEDULE
OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT RATES FOR OPERATING LEASES

    December 31, 2024  
    June 30, 2024 

    Remaining lease term and discount rate: 

    Weighted average remaining lease term (years) 
     0.94  
     1.00 
  
    Weighted average discount rate 
     4.31% 
     4.38%

The components of lease expenses for
continuing operations were as follows:

SCHEDULE
OF COMPONENTS OF LEASE EXPENSES

    2024  
    2023  
    2024  
    2023 

    For the six months ended  December 31,  
    For
the three months ended  December
31,  

    2024  
    2023  
    2024