Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 76

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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50
per share for gross proceeds of US$7.7 million and net proceeds of approximately US$5.4 million. The Company’s shares of common
stock began trading on September 28, 2016 on the NASDAQ Capital Market under the symbol “TYHT”.

Statutory Reserve

The Company is required to make appropriations to
reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in
accordance with generally accepted accounting principles of the PRC (“PRC GAAP”).

Appropriations to the statutory surplus reserve are
required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the
entities’ registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the board of directors.
As of March 31, 2025 and June 30, 2024, the balance of the required statutory reserves was US$4,350,297 and US$4,350,297, respectively.

On July 10, 2020, the Company’s stockholders
approved a 1-for-9 reverse stock split of the Company’s common stock, par value US$0.001 per share, with a market effective date
of August 14, 2020 (the “2020 Reverse Stock Split”). As a result of the 2020 Reverse Stock Split, each nine pre-split shares
of common stock outstanding automatically combined and converted to one issued and outstanding share of common stock without any action
on the part of stockholders. No fractional shares of common stock were issued to any stockholders in connection with the 2020 Reverse
Stock Split. Each stockholder was entitled to receive one share of common stock in lieu of the fractional share that would have resulted
from the 2020 Reverse Stock Split. The number of the Company’s authorized common stock remained at 100,000,000 shares, and the par
value of the common stock following the 2020 Reverse Stock Split remained at US$0.001 per share. As a result of the 2020 Reverse Stock
Split, the Company’s shares and per share data as reflected in the unaudited condensed consolidated financial statements were retroactively
restated as if the transaction occurred at the beginning of the periods presented.

On April 10, 2021, the Company issued 16,134 shares
of common stock to selected investors at a