| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 the meetings of the board of directors or to govern the financial and operating policies of the investee
pursuant to a statute or under an agreement among the shareholders or equity holders Consolidation of Variable Interest
Entities VIEs are generally entities that lack
sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate
decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary
beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. There are no consolidated assets of the
VIEs and the VIEs’ subsidiaries that are collateral for the obligations of the VIEs and the VIEs’ subsidiaries and can only
be used to settle the obligations of the VIEs and the VIEs’ subsidiaries. As the VIEs are incorporated as limited
liability companies under the PRC Company Law, creditors or beneficial interest holders of the VIEs do not have recourse to the general
credit of the Company for any of the liabilities of the VIEs in normal course of business. There are no terms in any arrangements,
considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial
support to the VIEs and the VIEs’ subsidiaries. However, if the VIEs and the VIEs’ subsidiaries ever need financial support,
the Company or its subsidiaries may, at their option and subject to statutory limits and restrictions, provide financial support to the
VIEs and the VIEs’ subsidiaries through loans to the shareholder of the VIEs and the VIEs’ subsidiaries or entrustment loans
to the VIEs and the VIEs’ subsidiaries. The carrying amount of the VIEs and their
subsidiaries’ consolidated income information held for discontinued operations were as follows: SCHEDULE
OF CONSOLIDATED ASSETS AND LIABILITIES AND INCOME INFORMATION
2024 2023 2024 2023
For the six months ended For the three months ended December 31,
2024 2023 2024 2023
Income from operations $ - $ 60,426 $ - $ -
Net income $ - $ 60,426 $ - $ - Non-controlling Interests U.S. GAAP requires that non-controlling
interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts
attributable to the non-controlling interests in the net loss of these entities are reported separately in the unaudited condensed consolidated
statements of income (loss) and comprehensive income (loss). Risks and Uncertainties The operations of the Company are located
in the PRC and are subject to special considerations and significant risks not typically associated with companies in North America and
Western Europe. These include risks associated with, among others, the political, economic, and legal environment and foreign currency
exchange. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in the
PRC, and by changes in governmental policies or interpretations with respect to laws and regulations, anti-inflationary measures, currency
conversion, remittances abroad, and rates and methods of taxation, among other things. Although the Company has not experienced losses
from these factors and believes that it is in compliance with existing laws and regulations, there is no guarantee that the Company will
continue to do so in the future. Use of Estimates The preparation of the unaudited condensed
consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed
consolidated financial statements as well as the reported amounts of revenue and expenses during the reporting periods. Significant estimates
required to be made by management include, but are not limited to, useful lives of property and equipment, and intangible assets, the
recoverability of long-lived assets, assessment of expected credit losses for accounts receivable and other current asset, the valuation
allowance of deferred taxes, and inventory reserves. Actual results could differ from those estimates. Revenue Recognition The Company generates its revenue primarily
through sales of Luobuma products, other agricultural products, healthy meals and rapid diagnostic and other products, as well as providing
logistic services and other processing services to external customers in accordance with ASC 606. ASC 606 establishes principles for
reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts
to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods
or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those
goods or services recognized as performance obligations are satisfied. With the adoption of ASC 606, “Revenue
from Contracts with Customers,” revenue is recognized when all of the following five steps are met: (i) identify the contract(s)
with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the
transaction price to the performance obligations; (v) recognize revenue when (or as) each performance obligation is satisfied. The Company
has assessed the impact of the guidance by reviewing its existing customer contracts to identify differences that will result from applying
the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control,
and principal versus agent considerations. In accordance with ASC 606, the Company evaluates whether it is appropriate to record the
gross amount of product sales and related costs or the net amount earned as commissions. When the Company is a principal, that the Company
obtains control of the specified goods or services before they are transferred to the customers, the revenue should be recognized in
the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When
the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods
or services, the revenue should be recognized in the net amount for the amount of commission which the Company earns in exchange for
arranging for the specified goods or services to be provided by other parties. Based on the assessment, the Company concluded that there
was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there
was no material changes to the Company’s financial statements upon adoption of ASC 606. More specifically, revenue related to
the Company’s products and services is generally recognized as follows: Sales of products: Revenue from the provision of services Cash and Cash Equivalents Cash and cash equivalents consist of
cash on hand, cash on deposit, and other highly liquid investments which are unrestricted as to withdrawal or use, and which have original
maturities of three months or less when purchased. The Company maintains cash with various financial institutions mainly in the PRC.
As of December 31, 2024 and June 30, 2024, the Company had no Under PRC laws, it is generally required
that a commercial bank in the PRC that holds third-party cash deposits protect the depositors’ rights over and interests in their
deposited money. PRC banks are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered
to take over the operation and management of any PRC bank that faces a material credit crisis. Company monitors the respective financial institutions where they maintain
their cash with and has not experienced any problems. Accounts Receivable, Net Accounts receivable are recorded at net
realizable value, consisting of the carrying amount less an allowance for credit losses, as necessary. As of December 31, 2024 and June
30, 2024, the allowance for credit losses was US$ 1,725,867 1,356,873 Advances to Suppliers, Net Advances to suppliers consist of payments
to suppliers for materials that have not been received. As of December 31, 2024 and June 30, 2024, the allowance for uncollectible advances
to suppliers was US$ 1,441,757 111,483 Credit Losses On July 1, 2023, the Company adopted
Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial
Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current
expected credit loss (“CECL”) methodology. The adoption of the credit loss accounting standard has no material impact on
the Company’s consolidated financial statements as of July 1, 2023. The Company’s account receivables
and other receivables included in other current assets on the unaudited condensed consolidated balance sheets are within the scope of
ASC Topic 326. The Company makes estimates of expected credit and collectability trends for the allowance for credit losses based upon
assessment of various factors, including historical experience, the age of the accounts receivable and other receivables balances, credit-worthiness
of the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions,
and other factors that may affect its ability to collect from the customers and other debtors. The Company also provides specific provisions
for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. ASC Topic 326 is also applicable to loans
to third parties that are included in the other current assets on the unaudited condensed consolidated balance sheets. Management estimates
the allowance for credit losses on loans that do not share similar risk characteristics on an individual basis. The key factors considered
when determining the above allowances for credit losses include estimated loan collection schedule, discount rate, and assets and financial
performance of the borrowers. Expected credit losses are recorded as
general and administrative expenses on the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss).
After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company
recovers amount previously reserved, the Company will reduce the specific allowance for credit losses. Inventories, Net Inventories, which are stated at the
lower of cost or net realizable value, consist of raw materials, work-in-progress, and finished goods related to the Company’s
products. Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products.
Cost is determined using the weighted average method. The Company periodically evaluates its inventory and records an inventory reserve
for certain inventories that may not be saleable or whose cost exceeds net realizable value. As of December 31, 2024 and June 30, 2024,
the inventory reserve was nil 30,443 Business Acquisitions Business acquisitions are accounted for
under the acquisition method. The acquisition method requires the reporting entity to identify the acquirer, determine the acquisition
date, recognize and measure the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired
entity, and recognize and measure goodwill or a bargain gain from the purchase. The acquiree’s results are included in the Company’s
consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values
on the date acquired and the excess of the purchase price over the amounts assigned is recorded as goodwill, or if the fair value of
the net assets acquired exceeds the purchase price consideration, a bargain purchase gain is recorded. Adjustments to fair value assessments
are generally recorded to goodwill over the measurement period (not longer than 12 months). The acquisition method also requires that
acquisition-related transaction and post-acquisition restructuring costs be charged to expense as committed, and requires the Company
to recognize and measure certain assets and liabilities, including those arising from contingencies and contingent consideration in a
business combination. Goodwill Goodwill represents the excess of the
purchase price over the fair value of assets acquired. The goodwill impairment test compares the fair value of a reporting unit with
its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting
unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit’s goodwill
is compared to the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount
of goodwill recognized in a business combination. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair
value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For each of these tests, the fair value of
each of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow
methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable
market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private
transaction (to the extent available). Leases Lessee accounting The Company follows FASB ASC No. 842,
Leases Operating lease ROU assets and operating
lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement
date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on
the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also
includes any lease payments made and excludes lease incentives and includes initial direct costs incurred. The Company’s lease
terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
Lease expenses for minimum lease payments are recognized on a straight-line basis over the lease term. All operating lease ROU assets
are reviewed for impairment annually. For the six and three months ended December 31, 2024 and 2023, the Company did not recognize any
impairment of its ROU assets. Lessor accounting The Company rents out its office to a
third party, which is classified as an operating lease in accordance with Topic 842. The revenue from an operating lease is recognized
in other income in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) on a straight-line
basis over the term of the lease. Property and Equipment, Net Property and equipment are stated at
cost, less accumulated depreciation and amortization. Expenditures for additions, major renewals, and betterments are capitalized, and
expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is provided on a straight-line basis, less
estimated residual value, if any, over an asset’s estimated useful life. Farmland leasehold improvements are amortized over the
shorter of lease term or estimated useful lives of the underlying assets. The estimated useful lives of the Company’s property
and equipment are as follows: SCHEDULE
OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT
Estimated useful lives
Buildings 5 50
Machinery and equipment 3 10
Motor vehicles 5 15
Office equipment 3 10
Farmland leasehold improvements 12 18
Fixture and furniture 3 Construction in progress includes property
and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less
any recognized impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed
and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready
for their intended use. Land Use Rights, Net According to Chinese laws and regulations
regarding land use rights, land in urban districts is owned by the State, while land in the rural areas and suburban areas, except otherwise
provided for by the State, is collectively owned by individuals designated as resident farmers by the State. In accordance with the legal
principle that land ownership is separate from the right to the use of the land, the government grants individuals and companies the
rights to use parcels of land for a specified period of time. Land use rights, which are usually prepaid, are stated at cost less accumulated
amortization. Amortization is provided over the life of the land use rights, using the straight-line method. The useful life is 50 Long-lived Assets Finite-lived assets and intangibles are
reviewed for impairment testing when circumstances require. For purposes of evaluating the recoverability of long-lived assets, when
undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair
value. The long-lived assets of the Company that are subject to evaluation consist primarily of property and equipment, land use rights,
ROU assets and investments. For the six and three months ended December 31, 2024 and 2023, the Company did not recognize any impairment
of its long-lived assets. Derivative Financial Assets Derivative financial assets are measured
at fair value and recognized as either assets or liabilities on the unaudited condensed consolidated balance sheets in either other current
or non-current assets or other current liabilities or non-current liabilities, depending upon maturity and commitment. Changes in the
fair value of derivatives are either recognized periodically in the unaudited condensed consolidated statements of comprehensive income
(loss) or in other comprehensive income (loss), depending on the use of the derivatives and whether they qualify for hedge accounting. The Company selectively uses financial
instruments to manage market risk associated with exposure to fluctuations in prices of raw materials for silk products. These financial
exposures are monitored and managed by the Company as an integral part of its risk management program. The Company does not engage in
derivative instruments for speculative or trading purposes. The Company’s derivative financial assets are not qualified for hedge
accounting. Thus, changes in fair value are recognized in “Investment income from derivative financial assets” in the unaudited
condensed consolidated statements of income (loss) and comprehensive income (loss). The cash flows of derivative financial assets are
classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value
of the derivatives is determined based on relevant market information. Derivative financial assets are presented
as net if rights of setoff exist, with all of the following conditions met: (a) each of the two parties owes the other determinable amounts;
(b) the reporting party has the right to set off the amount owed with the amount owed by the other party; (c) the reporting party intends
to set off; and (d) the right of setoff is enforceable at law. The outstanding derivative financial
assets as of December 31, 2024 and June 30, 2024 were US$ 6,969 6,380 4,239 1,962 3,534 766 Fair Value of Financial Instruments The Company follows the provisions of
ASC 820, “Fair Value Measurements and Disclosures.” ASC 820 clarifies the definition of fair value, prescribes methods for
measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 applies to assets or liabilities
for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities
for which there are inputs, other than quoted prices in level, that are observable for the asset or liability such as quoted prices for
similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume
or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived
principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities
for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the
asset or liability. The carrying value of financial instruments
included in current assets and liabilities approximate their fair values because of the short-term nature of these instruments. Income Taxes Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to differences between the unaudited condensed consolidated financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered
or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in
the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce deferred tax assets to the
amount expected to be realized. The provisions of ASC 740-10-25, “Accounting
for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold for unaudited condensed consolidated financial statement
recognition and measurement of a tax position taken (or expected to be taken) in a tax return. This ASC also provides guidance on the
recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting
for interest and penalties associated with tax positions, and related disclosures. The Company did not have any uncertain tax positions
as of December 31, 2024 and June 30, 2024. The Company had not provided deferred taxes for undistributed earnings of non-U.S. subsidiaries
as of December 31, 2024, as it is the Company’s policy to indefinitely reinvest these earnings in non-U.S. operations. Quantification
of the deferred tax liability, if any, associated with indefinitely reinvested earnings is not practicable. The statute of limitations for the Company’s
U.S. federal income tax returns and certain state income tax returns remains open for tax year 2022 and thereafter. As of December 31,
2024, the tax years ended December 31, 2020 through December 31, 2024 for the Company’s PRC subsidiaries remained open for statutory
examination by PRC tax authorities. On December 22, 2017, the “Tax
Cuts and Jobs Act” (“The Act”) was enacted. Under the provisions of The Act, the U.S. corporate tax rate decreased
from 35% 21% 28% 21% 744,766 The Company elects to pay the transition tax over an eight-year period using specified percentages (eight percent per year for the first
five years, 15 percent in year six, 20 percent in year seven, and 25 percent in year eight). Value-Added Tax Sales revenue represents the invoiced
value of goods, net of a value-added tax (“VAT”). All of the Company’s products that were sold in the PRC were subject
to a Chinese value-added tax at rates ranging from 3% to 13%, depending on the type of products sold Foreign Currency Translation The Company uses the United States dollar
(“U.S. dollars,” “USD,” or “US$”) for financial reporting purposes. The Company’s subsidiaries
and VIEs maintain their books and records in their functional currency of Renminbi (“RMB”), the currency of the PRC. In general, for consolidation purposes,
the Company translates the assets and liabilities of its subsidiaries and VIEs into U.S. dollars using the applicable exchange rates
prevailing at the balance sheet date, and the statements of income and cash flows are translated at average exchange rates during the
reporting periods. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily
agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments
resulting from the translation of the financial statements of the subsidiaries and VIEs are recorded as accumulated other comprehensive
loss. The balance sheet amounts, with the exception
of equity, as of December 31, 2024 and June 30, 2024 were translated at 1 0.1370 1 0.1376 1 0.1393 1 0.1385 1 0.1390 1 0.1388 Convertible Notes Payable In accordance with ASC 470 Debt with
conversion and other option Research and Development Expenses Research and development costs relating
to the development of new processes and significant improvements and refinements to existing processes are expensed when incurred in
accordance with the FASB ASC 730, “Research and Development.” The research and development costs primarily comprise employee
costs, consultant fees, materials and testing costs, and depreciation to property and equipment used in the research and development
activities and other miscellaneous expenses. For the six months ended December 31, 2024 and 2023, total research and development expense
from continuing operations were US$ 39,115 45,916 25,697 22,218 Comprehensive Income (Loss) Comprehensive income (loss) consists
of two components, net income (loss) and other comprehensive income (loss). The foreign currency translation gain resulting from translation
of the financial statements expressed in RMB to USD is reported in other comprehensive income (loss) in the unaudited condensed consolidated
statements of income (loss) and comprehensive income (loss). Earnings (Loss) per Share The Company computes earnings (loss)
per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires
companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income (loss) divided by the
weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a
per share basis of potential common shares (e.g., outstanding convertible securities, options, and warrants) as if they had been converted
at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e.,
those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There is no anti-dilutive
effect for the six and three months ended December 31, 2024 and 2023. The following table presents a reconciliation
of basic and diluted earnings (loss) per share for the six and three months ended December 31, 2024 and 2023: SCHEDULE
OF RECONCILIATION OF BASIC AND DILUTED (LOSS) PER SHARE
2024 2023 2024 2023
For the six months ended For
the three months ended December
31,
2024 2023 2024 2023
Net loss from continuing operations attributable to Shineco $ (3,647,182 ) $ (7,817,289 ) $ (1,624,340 ) $ (4,327,442 )
Net income from discontinued operations attributable to Shineco - 8,856,042 - -
Net income (loss) attributable to Shineco (3,647,182 ) 1,038,753 (1,624,340 ) (4,327,442 )
Weighted average shares outstanding - basic and diluted* 1,329,672 172,714 1,796,506 213,749
Net loss from continuing operations per share of common share
Basic and diluted $ (2.74 ) $ (45.26 ) $ (0.90 ) $ (20.25 )
Net earnings from discontinued operations per share of common share
Basic and diluted $ - $ 51.28 $ - $ -
Net earnings (loss) per share of common share
Basic and diluted $ (2.74 ) $ 6.02 $ (0.90 ) $ (20.25 )
* Retrospectively restated for effect of the Reverse Stock Split on
November 12, 2024. New Accounting Pronouncements In December 2023, the FASB issued ASU
No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This ASU requires additional quantitative
and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related
tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The ASU is effective
for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective
or retroactive basis. The Company plans to adopt this guidance effective July 1, 2025 and the Company is currently evaluating the impact
of adopting this ASU on its financial statements. In March 2024, the FASB issued ASU 2024-01,
Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity
regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This
standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company plans to adopt this
guidance effective July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements. In March 2024, the FASB issued ASU No.
2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements.” ASU 2024-02 removes references
to various FASB Concepts Statements within the Codification. The guidance in ASU No. 2024-02 is effective for fiscal years beginning
after December 15, 2024, including interim periods within those fiscal years, and can be applied either prospectively to all new transactions
recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative
period presented in which the amendments were first applied. Early adoption is permitted. The Company plans to adopt this guidance effective
July 1, 2025 and the Company is currently evaluating the impact of adopting this ASU on its financial statements. The Company believes that other recent
accounting pronouncement updates will not have a material effect on the Company’s unaudited condensed consolidated fin |
