Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 23

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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    per share (the “August 2024 Shares”), at a purchase price of US$13.20
    per share, and for an aggregate purchase price of US$8,241,750.
    The SPA, the transaction contemplated thereby, and the issuance of the August 2024
    Shares have been approved by the Company’s board of directors. The closing of the transaction contemplated by the SPA took
    place on September 10, 2024. As of December 31, 2024, proceeds of approximately US$4.7
    million were received by the Company, and the remaining proceeds are expected to be fully received by June 30, 2025.

    4)
    On December 24, 2024, the Company entered into a securities purchase agreement
with nine non-U.S. investors (the “December 2024 Purchasers”), pursuant to which the Company agreed to sell, and the December
2024 Purchasers agreed to purchase, severally and not jointly, an aggregate of 15,000,000 shares of common stock of the Company (the “December
2024 Shares”) at a purchase price of US$2.18 per share for gross proceeds of US$32.7 million. The December 2024 Shares were issued
to the December 2024 Purchasers on January 10, 2025.

    5)
    The Company has borrowed funds from commercial banks and third parties.
    As of December 31, 2024, the Company had US$14.0 million in short-term loans outstanding and US$1.7 million in long-term loans outstanding.
    The management expects that the Company will be able to renew its existing bank loans upon their maturity based on past experience
    and its good credit history. As of the date of this report, the Company has borrowed additional loans of approximately US$2.1 million from United
Overseas Bank and renewed two short-term bank loans amounting to approximately US$1.8 million upon maturity.

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.

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 (“