Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 71

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 a third extension amendment dated June 11, 2024, with the Investor
to extend the maturity date to August 23, 2025, thereby increasing the principal amount to US$10,698,374.

For the above-mentioned convertible promissory notes
issued, interest accrues on the outstanding balance of these notes at 6% per annum. The Investor may seek repayment of all or any part
of the outstanding balance of the note, at any time after six months from the issue date upon three trading days’ notice, in cash
or converting into shares of the Company’s common stock at a price equal to 80% multiplied by the lowest daily volume weighted average
price (“VWAP”) during the fifteen trading days immediately preceding the applicable redemption conversion, subject to certain
adjustments and ownership limitations specified in the note. Following the receipt of a redemption notice, the Company may either ratify
Investor’s proposed allocation in the applicable redemption notice or elect to change the allocation by written notice to Investor
within twenty-four (24) hours of its receipt of such redemption notice, so long as the sum of the cash payments and the amount of redemption
conversions equal the applicable redemption amount.

For the nine months ended March 31, 2025 and 2024,
a total of US$482,664 and US$612,072 in amortization of the debt issuance and other costs from continuing operations was recorded on the
unaudited condensed consolidated statements of loss and comprehensive loss, respectively. For the three months ended March 31, 2025 and
2024, a total of US$146,976 and US$246,015 in amortization of the debt issuance and other costs from continuing operations was recorded
on the unaudited condensed consolidated statements of loss and comprehensive loss, respectively.

As of March 31, 2025, shares of the Company’s
common stock totaling 1,172,135 were issued by the Company to the Investor equaling principal and interests amounted to US$15,258,357,
and cash totaling US$1,050,000 was repaid to the Investor. The Notes balance was US$9,741,322, with a carrying value of US$9,908,256,
net of deferred financing costs of US$166,934 was recorded in the accompanying unaudited condensed consolidated balance sheets as of March
31, 2025.

NOTE 15 - TAXES

(a) Corporate Income Taxes

The Company