Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 208

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 208
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,210,256  
    $20,903,961 
  
    Current liabilities 
     42,171,740  
     27,562,855 
  
    Working capital 
    $(5,961,484) 
    $(6,658,894)

The
working capital decreased by US$697,410, or 10.5%, as of December 31, 2024 from June 30, 2024, primarily as a result of an increase in
contract liabilities and current portion of convertible note, partially offset by an increase in advances to suppliers and other current
assets.

Capital
Commitments and Contingencies

Capital
commitments refer to the allocation of funds for the possible purchase in the near future for fixed assets or investment. Contingency
refers to a condition that arises from past transactions or events, the outcome of which will be confirmed only by the occurrence or
non-occurrence of uncertain futures events.

As
of December 31, 2024 and June 30, 2024, we had no other material capital commitments or contingent liabilities. 

Contractual Obligations

The
Company has no long-term fixed contractual obligations or commitments other than leases that are disclosed in Note 10 in the notes to
our unaudited condensed consolidated financial statements.

Off-Balance
Sheet Commitments and Arrangements

On
May 29, 2023, the Board of the Company approved that we pledged our property as collateral to guarantee a personal loan of a related
party, Zhang Yuying, the legal representative of Tenet-Jove. Based on the memorandum entered between us and Zhang Yuying, Zhang
Yuying was expected to repay his loan and release the pledge before May 31, 2024, and we have the right to claim full compensation
if the property fails to be released by the due date. On May 23, 2024, Zhang Yuying entered into another supplementary agreement
with Guo Weiqing, wherein the parties agreed to extend the due date of the principal amount from May 23, 2024 to May 23, 2025, and
the real estate property continued to be pledged until May 23, 2025. If Zhang Yuying fails to repay the loan and the property is
executed by the Court, the Company has the right to pursue compensation from Zhang Yuying based on the market value of the property.
However,