Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 205

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 205
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31, 2025
and June 30, 2024, except the above-mentioned convertible note, we did not engage in any foreign currency borrowings or loan contracts.

Liquidity and Capital Resources

We currently finance our business operations primarily
through short-term, convertible notes and the sale of our common stock. Our current cash primarily consists of cash on hand and cash in
bank, which is unrestricted as to withdrawal and use and is deposited with banks in China.

As of March
31, 2025, we had approximately US$1.7 million in short-term bank loans outstanding. We expect that we will be able to renew all
of the existing bank loans upon their maturity based on our past experience and outstanding credit history.

On June 16, 2021, we entered into a securities purchase
agreement pursuant to which we issued an unsecured convertible promissory note with a one-year maturity term to an institutional accredited
investor Streeterville Capital, LLC (“Investor”). The convertible promissory note has the original principal amount of US$3,170,000
and Investor gave consideration of US$3.0 million, reflecting original issue discount of US$150,000 and Investor’s legal fee of
US$20,000. We received principal in full from the Investor. On September 7, 2022, we signed an extension amendment with the Investor to
extend the maturity date to June 17, 2023. On October 21, 2022, the Company signed a standstill agreement with the Investor, pursuant
to which the Investor would not seek to redeem any portion of the note during the period from October 21, 2022 to January 20, 2023. On
January 18, 2023, the Investor re-started the redemption of the notes. On June 15, 2023, the Company signed an extension amendment with
the Investor to extend the maturity date to June 17, 2024. On December 21, 2023, the Company entered into a preliminary agreement with
the Investor, pursuant to which the Investor would not seek repayment of any portion of the note during the period from December 22, 2023
to April 16, 2024. On June 11, 2024, the Company signed an extension amendment with the Investor to extend the maturity date to June 17,
2025.

66

On July 16, 2021, we entered