Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 202

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 202
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 or 243.18%, as compared
to the same period in 2024. The increase was mainly due to 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.” The increase was partially
offset by the decreased general and administrative expenses of Fuzhou Meida due to the temporary suspension of its business operation,
as mentioned above.

Selling Expenses

For the three months ended March
31, 2025, our selling expenses were US$20,113, representing a decrease of US$41,103, or 67.14%, 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 three months ended March 31, 2025.

Research and Development Expenses

For the three months ended March
31, 2025, our research and development expenses were US$15,487, representing a decrease of US$16,408, or 51.44%, as compared to
the same period in 2024. The decrease was mainly due to less research and development activities towards product development, as we tried
to control our costs during the three months ended March 31, 2025.

Amortization of Debt Issuance and Other Costs

For the three months ended March
31, 2025, our amortization of debt issuance and other costs expenses was US$146,976, representing a decrease of US$99,039, or 40.26%,
as compared to amortization of debt issuance and other costs expenses of US$246,015 for the same period in 2024. The decrease was mainly
due to the decreased extension fee to be amortized during the three months ended March 31, 2025
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.

64

Interest Expenses, Net

For the three months ended March
31, 2025, our net interest expenses were US$262,239, representing an increase of US$11,340, or 4.52%, as compared to net
interest expenses of US$250,899 in the same period in 2024. The