Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 39

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 issued ASU 2024-01,
Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity
regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This
standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt this
guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.

In March 2024, the FASB issued ASU No.
2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements.” ASU 2024-02 removes references
to various FASB Concepts Statements within the Codification. The guidance in ASU No. 2024-02 is effective for fiscal years beginning
after December 15, 2024, including interim periods within those fiscal years, and can be applied either prospectively to all new transactions
recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative
period presented in which the amendments were first applied. Early adoption is permitted. The Company plans to adopt this guidance effective
July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements.

The Company believes that other recent
accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated financial statements.

    18

NOTE 4 – ACCOUNTS RECEIVABLE,
NET

The accounts receivable, net consisted
of the following:

SCHEDULE
OF ACCOUNTS RECEIVABLE

    December 31, 2024  
    June 30, 2024 

    Accounts receivable 
    $2,966,428  
    $2,571,987 
  
    Less: allowance for credit losses 
     (1,725,867) 
     (1,356,873)
  
    Accounts receivable, net 
    $1,240,561  
    $1,215,114 

Movement of allowance for credit losses
is as follows:

SCHEDULE
OF MOVEMENT OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

    December 31, 2024  
    June 30, 2024 

    Beginning balance 
    $1