Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 100

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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 distributing specialized fabrics, textiles, and other by-products derived from an indigenous
Chinese plant Apocynum Venetum, known in Chinese as “Luobuma” or “Bluish Dogbane,” as well as Luobuma raw materials
processing; this segment is conducted through our wholly owned subsidiary, Tenet-Jove. Second, planting, processing and distributing green
and organic agricultural produce, growing and cultivation of yew trees, as well as planting fast-growing bamboo willows and scenic greening
trees; this segment is conducted through Qingdao Zhihesheng and Guangyuan. Third, providing domestic air and overland freight forwarding
services by outsourcing these services to a third party; this segment is conducted through Zhisheng Freight. Meanwhile, Wintus is engaged
in producing, processing and distributing agricultural products, such as silk, silk fabrics and fresh fruit. The business segments conducted
by Tenet-Jove Disposal Group and Wintus were reclassified as discontinued operations. The assets and liabilities of the Tenet-Jove Disposal
Group and Wintus have been reclassified as “assets of discontinued operations” and “liabilities of discontinued operations”
within current and non-current assets and liabilities, respectively, on the unaudited condensed consolidated balance sheet as of March
31, 2025 and the consolidated balance sheet as of June 30, 2024. The results of operations of Tenet-Jove Disposal Group and Wintus
have been reclassified to “net income (loss) from discontinued operations” in the unaudited condensed consolidated statements
of loss and comprehensive loss for the nine
and three months ended March 31, 2025 and 2024.

Financing Activities

On June 16, 2021, the Company entered into a securities
purchase agreement pursuant to which the Company issued an unsecured convertible promissory note with a one-year maturity term to an institutional
accredited investor, Streeterville Capital, LLC (“Investor”). The note had an original principal amount of US$3,170,000 and
Investor gave consideration of US$3.0 million, reflecting original issue discount of US$150,000 and Investor’s legal fee of US$20,000.
Interest accrues on the outstanding balance of the note at 6% per annum. The Company has received the principal in full from the Investor
and used the proceeds for general working capital purposes. On September 7, 2022, the Company signed