Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 183

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 183
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of products: We recognized revenue from the sale of products at the point in time when the goods were delivered and title to the
goods passed to the customer, provided that there were no uncertainties regarding customer acceptance; persuasive evidence of an arrangement
existed; the sales price was fixed or determinable; and collectability was deemed probable.

Revenue
from provision of services: The Company merely acts as an agent in these types of services transactions. Revenue from domestic air
and overland freight forwarding services was recognized at the point in time upon the performance of services as stipulated in the underlying
contract or when commodities were being released from the customer’s warehouse; the service price was fixed or determinable; and
collectability was deemed probable.

Fair
Value of Financial Instruments

We
follow the provisions of ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value,
prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value
as follows:

Level
1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level
2 applies to assets or liabilities for which there are inputs, other than quoted prices in level, that are observable for the asset or
liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities
in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant
inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level
3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement
of the fair value of the asset or liability.

The
carrying value of financial instruments included in current assets and liabilities approximate their fair values because of the short-term
nature of these instruments.

51

Results
of Operations for the Six Months Ended December 31, 2024 and 2023

Overview

The
following table summarizes our results of operations for the six months ended December 31, 2024 and 2023:

    Six Months Ended  December 31,  
    Variance 

    2024  
    2023  
    Amount  
    % 
  
    Revenue 
    $5,223,456  
    $3,952,759  
    $1,270,697