Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 107

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 107
---
 other costs expenses was US$335,688, representing a decrease
of US$30,369, or 8.30%, as compared to amortization of debt issuance and other costs expenses of US$366,057 for the same period in 2023.
The decrease was mainly due to the decreased extension fee to be amortized during the six months ended December 31, 2024 as compared
to the same period last year, as our balance of the convertible note decreased, our extension fee decreased when we signed extension
amendments with the investor to extend the maturity date of the convertible notes.

Interest
Expenses, Net

For
the six months ended December 31, 2024, our net interest expenses were US$407,840, representing a decrease of US$413,461, or 50.34%,
as compared to net interest expenses of US$821,301 in the same period in 2023. The decrease in net interest expenses was mainly attributable
to the increased interest income generated from loans to third parties, and decreased interest expense for convertible notes as a result
of decreased balance of the convertible note, which was partially offset by the increased interest expenses on short-term and long-term
loans borrowed by Wintus. We had six months of interest expenses on loans during the six months ended December 31, 2024 as compared to
five months of interest expenses on loans during the same period last year as we completed the acquisition of Wintus on July 31, 2023.

Benefit
for Income Taxes

For
the six months ended December 31, 2024, our benefit for income taxes was US$535,426, representing a decrease of US$422,502, or 44.11%,
as compared to benefit for income taxes of US$957,928 in the same period last year. During the six months ended December 31, 2023, we
recorded deferred income tax benefit upon the recognition of deferred tax assets derived from the net operating loss carry-forwards by
Wintus. However, these deferred tax assets were fully allowanced off during the six months ended December 31, 2024, as the management
believe it is more likely than not that its deferred tax assets derived from the net operating loss carried forward could not be realized
due to uncertainty on future earnings. Hence, resulted in a decreased benefit for income tax during the six months ended December 31,
2024 as compared