Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 24

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 to purchase, severally and not jointly, an aggregate of 15,000,000
    shares of common stock of the Company (the “Shares”) at a purchase price of US$2.18
    per share for gross proceeds of US$32.7
    million. In reliance on the Purchasers’ representations to the Company, the Shares were not subject to
    the registration requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. The Shares were issued to the
    Purchasers on January 10, 2025, and the proceeds of approximately US$27.6
    million were received in April 2025. The remaining proceeds are expected to be fully received by June 30, 2025.

Management believes that the foregoing measures collectively
will provide sufficient liquidity for the Company to meet its future liquidity needs for at least the 12 months following the date of
this filing.

    9

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated
financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US
GAAP”) for interim financial information pursuant to the rules of the SEC and have been consistently applied. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
Interim results are not necessarily indicative of results for the full year. These financial statements should be read in conjunction
with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended June 30, 2024,
which was filed on September 30, 2024.

The unaudited condensed consolidated financial statements
include the financial statements of the Company and its subsidiaries, for which the Company is the primary beneficiary, including the
Hong Kong-registered entities and PRC-registered entities owned by the Company. The results of subsidiaries acquired or disposed of are
recorded in the unaudited condensed consolidated income statements from the effective date of acquisition or up to the effective date
of disposal, as appropriate. A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting
power, or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors or to cast a majority
of votes at