Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 82

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 March 31, 2025, one vendor
accounted for approximately 93% of the Company’s total purchases from the continuing operations. For the three months ended March
31, 2025, no vendor accounted for more than 10% of the Company’s total purchases from the continuing operations.

For the nine months ended March 31, 2025, two vendors
accounted for approximately 35% of the Company’s total purchases from the discontinued operations. For the three months ended March
31, 2025, four vendors accounted for approximately 92% of the Company’s total purchases from the discontinued operations.

For the nine months ended March 31, 2024, two vendors
accounted for approximately 35% of the Company’s total purchases from the continuing operations. For the three months ended March
31, 2024, four vendors accounted for approximately 82% of the Company’s total purchases from the continuing operations.

For the nine months ended March 31, 2024, two vendors
accounted for approximately 36% of the Company’s total purchases from the discontinued operations. For the three months ended March
31, 2024, one vendor accounted for approximately 99% of the Company’s total purchases from the discontinued operations.

NOTE 18 - COMMITMENTS AND CONTINGENCIES

Lease commitments

The Company leases offices for operation under operating
leases. Future minimum lease payments of US$313,453 under non-cancellable operating leases with initial terms in excess of one year were
included in Note 10.

Legal Contingencies

On November 26, 2021, the Company filed a complaint
in the Supreme Court of the State of New York, New York County against Lei Zhang and Yan Li, as defendants, and Transhare Corporation
(“Transhare”), as a nominal defendant, asserting that defendants had not paid for certain restricted shares of the Company’s
common stock pursuant to stock purchase agreements they executed with the Company. In December, defendants filed an answer and counterclaim
against the Company, which they amended on January 27, 2022 after the Company moved to dismiss their counterclaims. They brought claims
for, among others, breach of contract, breach of the covenant of good faith and fair dealing, and fraud, asserting that the Company made
false and materially misleading statements, specifically regarding the sale of such shares to Lei Zhang and Yan Li and the removal of
their restrictive legends. Defendants are seeking money damages of at least US$