Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 129

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 129
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.6 million and US$2.3 million from operating activities for the nine months ended March 31, 2025 and
2024, respectively. As of March 31, 2025 and June 30, 2024, the Company had accumulated a deficit of US$73.1 million and US$54.3 million,
and as of March 31, 2025, the Company had negative working capital of US$13.7 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.

68

Working Capital

The following table provides the information about
our working capital as of March 31, 2025 and June 30, 2024:

    March 31, 2025  
    June 30, 2024 

    Current assets 
    $34,918,780  
    $20,903,961 
  
    Current liabilities 
     48,602,178  
     27