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Shineco, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a revenue increase to $2,174,285 from $1,645,857 in the same quarter the previous year, driven by the acquisition of Wintus and the expansion into agricultural products.
Cost of revenue was $1,882,444, representing 87% of sales, compared to 94% in the same quarter of the previous year. The improvement is attributed to increased sales of agricultural products.
The company reported a gross profit of $291,841, up from $98,955 in the previous year, reflecting better cost management and increased sales volume.
General and administrative expenses decreased to $2,636,575 from $3,259,465, primarily due to reduced professional service fees and staff compensation.
Net loss from continuing operations was $2,558,128, down from $3,513,123 in the previous year, reflecting improved gross profit and reduced expenses.
Cash used in operating activities was $2,085,232, while cash used in investing and financing activities was $3,133,148 and $5,066,481, respectively.
Shineco had a negative working capital of $7,305,591 as of September 30, 2024, indicating liquidity challenges.
The filing notes the company's dependence on continued financial support from stockholders and potential financing to meet future obligations.
The report mentions a 1-for-24 reverse stock split effective November 12, 2024, impacting share and per-share data retrospectively.
Shineco's management acknowledges material weaknesses in its internal controls over financial reporting, specifically a lack of full-time U.S. GAAP personnel and segregation of duties.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Shineco Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.