Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 123

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 123
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 occurred at the beginning of the periods presented.

As
disclosed in the Company’s unaudited condensed consolidated financial statements, the Company had recurring net losses from continuing
operations of US$4.8 million and US$8.6 million, and cash outflow of US$2.7 million and US$2.5 million from operating activities from
continuing operations for the six months ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and June 30, 2024, the
Company had accumulated a deficit of US$58.0 million and US$54.3 million, and as of December 31, 2024, the Company had negative working
capital of US$6.0 million. The Company’s management believes these factors raise substantial doubt about the Company’s ability
to continue as a going concern for the next twelve months. In assessing the Company’s going concern, the Company’s management
monitors and analyzes the Company’s cash on-hand and its ability to generate sufficient revenue sources in the future to support
its operating and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements,
operating expenses and capital expenditure obligations. Direct offering and debt financing have been utilized to finance the working
capital requirements of the Company. The continuation of the Company as a going concern through the next twelve months is dependent on
the continued financial support from its stockholders. The Company’s management believes that the Company’s current access
to loans, equity financing as well as financial support from its stockholders will be sufficient to meet its working capital needs for
at least the next 12 months. The Company intends to continue to carefully execute its growth plans and manage market risk. If the Company
fails to satisfy the Nasdaq Stock Market LLC’s (“Nasdaq”) continued listing requirements, such as the corporate governance
requirements or the minimum closing bid price requirement, Nasdaq may take steps to delist its common stock. Any continuing failure to
remain in compliance with Nasdaq’s continued listing standards and any subsequent failure to timely resume compliance with Nasdaq’s
continued listing standards within the applicable cure period could have adverse consequences and, among other things, substantially
impair the Company’s ability to raise additional funds and could result in a loss of institutional investor interest and fewer
development opportunities for the Company.

Working
Capital

The
following table provides the information about our working capital as of December 31, 2024