Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 72

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 72
---
  
    $1,268,904 
  
    Value added tax payable 
     240,620  
     303,739 
  
    Business tax and other taxes payable 
     1,822  
     1,178 
  
    Total tax payable 
    $1,557,427  
    $1,573,821 

    Income tax payable - current portion 
    $1,371,236  
    $1,387,630 

    Income tax payable – non-current portion 
    $186,191  
    $186,191 

NOTE 16 - STOCKHOLDERS’ EQUITY

Initial Public Offering

On September 28, 2016, the Company completed
its initial public offering of 1,713,190 shares of common stock (before the effect of the reverse stock splits mentioned below) at
a price of US$4.50 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”.

    36

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 December 31, 2024 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