Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 211

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 2
Chunk 211
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 to proceeds
from issuance of common stock of US$6.8 million, proceeds from short-term loans of US$10.4 million, proceeds from long-term loans of
US$0.6 million, partially offset by the repayment of short-term loans of US$10.3 million, repayment of long-term loans of US$0.6 million,
repayment of loan from third party of US$0.6 million and repayment of convertible note of US$0.4 million.

For
the six months ended December 31, 2023, net cash provided by financing activities amounted to approximately US$3.4 million, due to proceeds
from issuance of common stock of US$2.0 million, and proceeds from short-term loans of US$9.8 million, partially offset by the repayment
of short-term loans of US$8.3 million.

64

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As
a small reporting company, we are not required to provide the information required by this item.

ITEM
4. CONTROLS AND PROCEDURES

(a)
Evaluation of Controls and Procedures

We
maintain disclosure controls and procedures designed to provide reasonable assurance that material information required to be disclosed
by us in the reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized, and
reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that the information is accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.

Based
on our review, our management, including our Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls
and procedures were not effective at the reasonable assurance level as of the end of the period covered by this Quarterly Report due
to following material weaknesses:

    ●
    a
    lack of full-time U.S. GAAP personnel in the accounting department to monitor the recording of the transactions;

    ●
    a
    lack of segregation of duties for accounting personnel who prepared and reviewed the journal entries; and

    ●
    a lack of inadequate control procedures and policies on pre-loan preliminary
credit risk evaluation and loan approval.

In
order to address the above material weaknesses, our management has taken the following steps:

    ●
    recruiting
    sufficient qualified professionals with appropriate levels of knowledge and experience