Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 130

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 130
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,562,855 
  
    Working capital 
    $(13,683,398) 
    $(6,658,894)

The working capital decreased by US$7,024,504, or
105.5%, as of March 31, 2025 from June 30, 2024, primarily as a result of an increase in current liabilities held for discontinued operations,
current portion of convertible note and other payables and accrued expenses, partially offset by an increase in current assets held for
discontinued operations and other current assets.

Capital Commitments and Contingencies

Capital commitments refer to the allocation of funds
for the possible purchase in the near future for fixed assets or investment. Contingency refers to a condition that arises from past transactions
or events, the outcome of which will be confirmed only by the occurrence or non-occurrence of uncertain futures events.

As of March 31, 2025 and June 30, 2024, we had no
other material capital commitments or contingent liabilities.

Contractual Obligations

The Company has no long-term fixed contractual obligations
or commitments other than leases that are disclosed in Note 10 in the notes to our unaudited condensed consolidated financial statements.

Off-Balance Sheet Commitments and Arrangements

On May 29, 2023, the Board of the Company approved
that we pledged our property as collateral to guarantee a personal loan of a related party, Zhang Yuying, the legal representative of
Tenet-Jove. Based on the memorandum entered between us and Zhang Yuying, Zhang Yuying was expected to repay his loan and release the pledge
before May 31, 2024, and we have the right to claim full compensation if the property fails to be released by the due date. On May 23,
2024, Zhang Yuying entered into another supplementary agreement with Guo Weiqing, wherein the parties agreed to extend the due date of
the principal amount from May 23, 2024 to May 23, 2025, and the real estate property continued to be pledged until May 23, 2025. If Zhang
Yuying fails to repay the loan and the property is executed by the Court, the Company has the right to pursue compensation from Zhang
Yuying based on the market value of the property. However, Zhang Yuying was unable to repay the loan to Guo Weiqing due to shortage of
fund. On November 20