Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 62

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 related party of the Company until December 28, 2025.

Lease from a related party

The Company entered into a two-year lease agreement
for the lease of office space from a related party company, of which the CEO is the Company’s shareholder.

As of March 31, 2025, the operating lease right-of-use
assets and corresponding operating lease liabilities of leases from the related party held for continuing operation were US$20,526 and
US$165,196, respectively.

As of June 30, 2024, the operating lease right-of-use
assets and corresponding operating lease liabilities of leases from the related party held for continuing operation were US$80,746 and
US$163,306, respectively.

During the nine months ended March 31, 2025 and 2024,
the Company’s continuing operations incurred operating lease expenses in leases from the related party of US$62,423 and US$62,493,
respectively. During the three months ended March 31, 2025 and 2024, the Company’s continuing operations incurred operating lease
expenses in leases from the related party of US$20,624 and US$20,946, respectively.

NOTE 13 – LOANS

Short-term loans

Short-term loans from third parties

During the year ended June 30, 2024, the Company entered
into loan agreements with two third parties. These short-term loans from third parties are mainly used for short-term funding to support
the Company’s working capital needs. One of the loans amounting to US$516,811 was borrowed from April 9, 2024 to July 8, 2024 and
bear to interest. The loan was fully repaid upon maturity by the Company during the nine months ended March 31, 2025. The other loan amounting
to US$509,119 was borrowed from June 21, 2024 to August 4, 2024 with an interest rate of 15% per annum, and the loan is guaranteed by
a third party. The Company made partial payment for the other loan, and the balance of US$459,977 was extended with a new maturity date
of December 31, 2025. In addition, the Company also borrowed a loan amounting to US$62,002 from a third party during the nine months ended
March 31, 2025, and the loan bears no interest and is due on demand.

The Company recorded interest