Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 79

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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claim against Transhare Corporation seeking declaratory judgment.

    39

The Company participated in a formal
mediation with the defendants Lei Zhang and Yan Li on September 18, 2023. As a result of the mediation, the parties were able to reach
a settlement agreement in December 2023. The parties executed a Settlement Agreement on December 21, 2023, and the claims by each side
were formally dismissed by the court on December 22, 2023. The subscription receivable amounted to US$3,024,000 was waived by the Company
during the fiscal year ended June 30, 2024, and the Company will not retrieve the shares that were issued to the defendants.

NOTE 19 - SEGMENT REPORTING

ASC 280, “Segment Reporting,”
establishes standards for reporting information about operating segments on a basis consistent with the Group’s internal organizational
management structure as well as information about geographical areas, business segments, and major customers in for details on the Group’s
business segments.

The Company’s chief operating decision
maker has been identified as the Chief Executive Officer who reviews the financial information of separate operating segments when making
decisions about allocating resources and assessing performance of the Group. Based on management’s assessment, the Company has
determined that it has following operating segments according to its major products and locations as follows:

    ●
    Developing, manufacturing, and distributing of specialized fabrics,
    textile products, and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, commonly known as “Bluish
    Dogbane” or known in Chinese as “Luobuma” (referred to herein as Luobuma), which are reclassified as discontinued
    operations:

    The operating companies of this segment, namely Tenet-Jove and Tenet
    Huatai, specialize in Luobuma growing, development and manufacturing of relevant products, as well as purchasing Luobuma raw materials
    processing.

    This segment’s operations are focused in the north region of
    Mainland China, mostly carried out in Beijing, Tianjin, and Xinjiang.

    ●
    Planting, processing, and distributing of green and organic agricultural
    produce as well as growing and cultivating of Chinese Yew trees (“Other agricultural products”), which are reclassified
    as discontinued operations:

    The operating company of this segment, Qingdao Zhihesheng, is engaged
    in the business of growing and distributing green and