Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 194

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 194
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 legal case; see more details in “Off-Balance
Sheet Commitments and Arrangements.” The decrease was also due to decreased professional service fee in relation to the acquisition
of Wintus of approximately US$780,000, a decrease in staff compensation in relation to the issuance of restricted shares to the management
of approximately US$400,000, a deceased allowance for credit losses and doubtful accounts of approximately US$399,000, as well as decreased
general and administrative expenses of approximately US$158,000 by Fuzhou Meida due to the temporary suspension of its business operation
as mentioned above. The decrease was partially offset by increased compensation expense of approximately US$2,788,000 in relation to the
Company’s legal case; see more details in “Off-Balance Sheet Commitments and Arrangements.”

Selling Expenses

For the nine
months ended March 31, 2025, our selling expenses were US$88,030, representing a decrease of US$69,624, or 44.16%, as compared
to the same period in 2024. The decrease was mainly due to the implementation of cost control measurements, as we reduced the number of
sales personnel and cut down the spending on selling activities during the nine months ended March
31, 2025.

Research and Development Expenses

For the nine
months ended March 31, 2025, our research and development expenses were US$54,602, representing a decrease of US$23,209, or 29.83%,
as compared to the same period in 2024. The decrease was mainly due to less research and development activities towards products development
as we tried to control our costs during the nine months ended March 31, 2025.

Gain from disposal of a subsidiary

On November 20, 2024, the Company entered into an
agreement to transfer 100% equity interests in Chongshi to a third party as payment for a loan. See Note 8 to our unaudited condensed
consolidated financial statements included elsewhere in this Report. The consideration for this transfer was RMB 8.0 million (approximately
US$1.1 million), and the gain from disposal of Chongshi was US$114,945 during the nine months ended
March 31, 2025.

Other income, net

For the nine ended March
31, 2025, our net other income was US$3,505, representing a