SHINECO, INC. (NASDAQ:TYHT) Files An 8-K Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition.
The Company incorporates by reference the disclosure below in
Item 4.02(a) and 9.01.
Item 4.02(a) Non-Reliance on Previously Issued Financial
Statements or a Related Audit Report or Completed Interim
Report
On May 4, 2017, management of the Company determined that the
previously issued financial statements contained in the Companys
Quarterly Report on Form 10-Q for the quarter ended September 30,
2016 should be amended to correct errors in those financial
statements. Management discussed these matters with the Audit
Committee, which approved the recommendation of management to
restate the financial statements. The Audit Committee discussed
the issues related to the non-reliance and restatement with the
Companys independent auditor, Friedman LLP. A draft of the
Companys current report on Form 8-K dated May 10, 2017 was
provided to such auditor for review prior to filing.
The Company determined that other payables and additional paid-in
capital were not properly recorded in the previously issued
unaudited condensed consolidated financial statements as of
September 30, 2016. The Company inadvertently omitted to accrue
$843,844 issuance costs related to its initial public offering in
the quarter ended September 30, 2016. Those issuance costs should
be offset against the offering proceeds that were recorded in the
Additional Paid-in Capital account. The effects of the Companys
previously issued unaudited condensed consolidated financial
statements as of September 30, 2016 are summarized as follows:
Selected Unaudited Consolidated Balance Sheets Information as of
September 30, 2016
| Previously | ||||||||||||
| Reported | Adjustment | Restated | ||||||||||
| Other payables | $ | 2,135,695 | $ | 843,844 | $ | 2,979,539 | ||||||
| Additional paid-in capital | $ | 23,581,146 | $ | (843,844 | ) | $ | 22,737,302 | |||||
Selected Unaudited Consolidated Statements of Cash Flows for the
three months ended September 30, 2016
| Three months ended September 30, 2016 | ||||||||||||
| Previously | ||||||||||||
| Reported | Adjustment | Restated | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
| Other payables and accrued expenses | $ | 143,166 | $ | 843,844 | $ | 987,010 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Proceeds from public offerings, net of offering cost | $ | 6,238,393 | $ | (843,844 | ) | $ | 5,394,549 | |||||
As a result of these corrections, management has recommended and
the Audit Committee has approved the restatement of its
previously issued financial statements through the filing of an
amended Form 10-Q for the quarter ended September 30, 2016.
About SHINECO, INC. (NASDAQ:TYHT)
Shineco, Inc. is a holding company. The Company provides health and well-being focused plant-based products by using its subsidiaries’ and variable interest entities’ vertically- and horizontally-integrated production, distribution and sales channels. The Company operates through three segments: developing, manufacturing and distributing of specialized fabrics, textile products and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, known as Bluish Dogbane (Luobuma); planting, processing and distributing of traditional Chinese medicinal herbal products, as well as other pharmaceutical products (Herbal products), and planting, processing and distributing of green and organic agricultural produce, as well as growing and cultivating of Chinese Yew trees (Agricultural products). It utilizes engineering technologies and biotechnologies to produce, among other products, Chinese herbal medicines, organic agricultural produce and specialized textiles. SHINECO, INC. (NASDAQ:TYHT) Recent Trading Information
SHINECO, INC. (NASDAQ:TYHT) closed its last trading session at with 78,932 shares trading hands.