Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 68

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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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 six months ended December 31,
2024 and 2023, a total of US$335,688 and US$366,057 in amortization of the debt issuance and other costs from continuing operations was
recorded on the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss), respectively. For the three
months ended December 31, 2024 and 2023, a total of US$146,976 and US$199,234 in amortization of the debt issuance and other costs from
continuing operations was recorded on the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss),
respectively.

As of December 31, 2024, shares of the
Company’s common stock totaling 1,006,133 were issued by the Company to the Investor equaling principal and interests amounted
to US$15,158,357, and cash totaling US$1,050,000 was repaid to the Investor. The Notes balance was US$9,548,551, with a carrying value
of US$9,862,461, net of deferred financing costs of US$313,910 was recorded in the accompanying unaudited condensed consolidated balance
sheets as of December 31, 2024.

    34

NOTE 15 - TAXES

(a) Corporate Income Taxes

The Company is subject to income taxes
on an entity basis on income arising in or derived from the location in which each entity is domiciled.

Shineco is incorporated in the United
States and has no operating activities. Shineco Life is incorporated in Hong Kong and is subject to profit taxes in Hong Kong