Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 48

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 amortization expense charged to the continuing
operations for the nine and three months ended March 31, 2025 and 2024.

Amortization expense charged to the discontinued operations
was US$14,523 and US$14,982 for the nine months ended March 31, 2025 and 2024, respectively. Amortization expense charged to the discontinued
operations was US$4,831 and US$5,627 for the three months ended March 31, 2025 and 2024, respectively.

    23

NOTE 10 - LEASES

Lessee

The Company leases offices space and warehouse under
non-cancellable operating leases, with terms ranging from one to seven and a half years. The lease terms vary from 2 years to 7.5 years.
The Company considers those renewal or termination options 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 held for continuing operations recorded on the balance sheets.

SCHEDULE
OF OPERATING LEASE RELATED ASSETS AND LIABILITIES

    March 31, 2025  
    June 30, 2024 

    ROU lease assets 
    $68,729  
    $145,323 

    Operating lease liabilities – current 
     306,236  
     272,787 
  
    Operating lease liabilities – non-current 
     6,137  
     - 
  
    Total operating lease liabilities 
    $312,373  
    $272,787 

The weighted average remaining lease terms and discount
rates for all of operating leases held for continuing operations were as follows as of March 31, 2025 and June 30, 2024:

SCHEDULE
OF WEIGHTED AVERAGE REMAINING LEASE TERMS AND DISCOUNT