Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 28

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 specifically, revenue related to the Company’s
products and services is generally recognized as follows:

Sales of products: The Company 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 the 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.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on hand,
cash on deposit, and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities
of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC. As of March
31, 2025 and June 30, 2024, the Company had no cash equivalents.

Under PRC laws, it is generally required that a commercial
bank in the PRC that holds third-party cash deposits protect the depositors’ rights over and interests in their deposited money.
PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over
the operation and management of any PRC bank that faces a material credit crisis. Company monitors the respective financial institutions
where they maintain their cash with and has not experienced any problems.

Accounts Receivable, Net

Accounts receivable are recorded at net realizable
value, consisting of the carrying amount less an allowance for credit losses, as necessary. As of March 31, 2025 and June 30, 2024, the
allowance for credit losses from the continuing operations was US$950,552 and US$953,956, respectively, and the allowance for credit
losses from the discontinued operations was US$582,942 and US$402,917, respectively. Accounts are written off against the allowance
after efforts at collection prove unsuccessful.

Advances to Suppliers, Net

Advances to suppliers consist of payments to suppliers
for materials that have not been received. As of March 31,