What changed in this filing

/stocks — the workspaceLOADING

Item 5. Other Information

2015-02-13 compared with 2014-11-13 · 445 added, 371 removed, 713 unchanged (53% of the section changed)

1 unchanged sentence

The following exhibits are filed herewith:

Amended and Restated Articles of Association of the Registrant (1)

Amended and Restated Memorandum of Association of the Registrant (1)

Amended and Restated

Articles of Association of the Registrant (1)

Amended and Restated

Memorandum of Association of the Registrant (1)

Specimen Share Certificate

Translation of Exclusive Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Power of Attorney for rights of Chen Guangqiang in Beijing BHD Petroleum Technology Co., Ltd.

Translation of Power of Attorney for rights of Yin Shenping in Beijing BHD Petroleum Technology Co., Ltd.

Translation of Power of Attorney for rights of Li Hongqi in Beijing BHD Petroleum Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Chen Guangqiang and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Yin Shenping and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Li Hongqi and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Chen Guangqiang and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Yin Shenping and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Li Hongqi and Beijing BHD Petroleum Technology Co., Ltd.

Translation of Exclusive Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

Translation of Exclusive

Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

and Beijing BHD Petroleum Technology Co.,

Translation of Power

of Attorney for rights of Chen Guangqiang in Beijing BHD Petroleum Technology Co., Ltd.

Translation of Power

of Attorney for rights of Yin Shenping in Beijing BHD Petroleum Technology Co., Ltd.

Translation of Power

of Attorney for rights of Li Hongqi in Beijing BHD Petroleum Technology Co., Ltd.

Translation of Exclusive

Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Chen Guangqiang and Beijing BHD Petroleum Technology

Translation of Exclusive

Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Yin Shenping and Beijing BHD Petroleum Technology

Translation of Exclusive

Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Li Hongqi and Beijing BHD Petroleum Technology

Translation of Equity

Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Chen Guangqiang and Beijing BHD Petroleum Technology

Translation of Equity

Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Yin Shenping and Beijing BHD Petroleum Technology Co.,

Translation of Equity

Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Li Hongqi and Beijing BHD Petroleum Technology Co.,

Translation of Exclusive

Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

and Jining ENI Energy Technology Co., Ltd.

Translation of Power of Attorney for rights of Chen Guangqiang in Jining ENI Energy Technology Co., Ltd.

Translation of Power of Attorney for rights of Yin Shenping in Jining ENI Energy Technology Co., Ltd.

Translation of Power of Attorney for rights of Li Hongqi in Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Chen Guangqiang and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Yin Shenping and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Li Hongqi and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Chen Guangqiang and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Yin Shenping and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Li Hongqi and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

Translation of Power

of Attorney for rights of Chen Guangqiang in Jining ENI Energy Technology Co., Ltd.

Translation of Power

of Attorney for rights of Yin Shenping in Jining ENI Energy Technology Co., Ltd.

Translation of Power

of Attorney for rights of Li Hongqi in Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive

Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Chen Guangqiang and Jining ENI Energy Technology

Translation of Exclusive

Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Yin Shenping and Jining ENI Energy Technology

Translation of Exclusive

Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Li Hongqi and Jining ENI Energy Technology

Translation of Equity Interest

Pledge Agreement between Recon Technology (Jining) Co., Ltd., Chen Guangqiang and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge

Agreement between Recon Technology (Jining) Co., Ltd., Yin Shenping and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge

Agreement between Recon Technology (Jining) Co., Ltd., Li Hongqi and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Technical

Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

and Nanjing Recon Technology Co., Ltd.

Translation of Power of Attorney for rights of Chen Guangqiang in Nanjing Recon Technology Co., Ltd.

Translation of Power of Attorney for rights of Yin Shenping in Nanjing Recon Technology Co., Ltd.

Translation of Power of Attorney for rights of Li Hongqi in Nanjing Recon Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Translation of Power of Attorney for

rights of Chen Guangqiang in Nanjing Recon Technology Co., Ltd.

Translation of Power of Attorney for

rights of Yin Shenping in Nanjing Recon Technology Co., Ltd.

Translation of Power of Attorney for

rights of Li Hongqi in Nanjing Recon Technology Co., Ltd.

Translation of Exclusive Equity Interest

Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Chen Guangqiang and Nanjing Recon Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Translation of Exclusive Equity Interest

Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Yin Shenping and Nanjing Recon Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Translation of Exclusive Equity Interest

Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Li Hongqi and Nanjing Recon Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Chen Guangqiang and Nanjing Recon Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Yin Shenping and Nanjing Recon Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Li Hongqi and Nanjing Recon Technology Co., Ltd.

20 unchanged sentences

Li Hongqi (1)

Form of Warrant Exchange Agreement by and among the Company and certain warrant holders dated February 13, 2015.(3)

Subsidiaries of the Registrant (2)

Stock Option Plan (1)

Code of Business Conduct and Ethics (1)

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Code of Business Conduct

and Ethics (1)

Certifications pursuant to Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley

Certifications pursuant to Rule 13a-14(a)

or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley

Certifications pursuant to 18 U.S.C.

8 unchanged sentences

XBRL Taxonomy Extension Definition Linkbase Document (3)

Incorporated by reference to the Company’s Registration Statement on Form S-1, Registration No.

Incorporated by reference to the Company’s Quarterly Report on Form 10-Q/A, filed on January 31, 2012.

Incorporated by reference to the Company’s

Registration Statement on Form S-1, Registration No.

Incorporated by reference to the Company’s Quarterly Report

on Form 10-Q/A, filed on January 31, 2012.

Filed herewith.

2 unchanged sentences

RECON TECHNOLOGY, LTD

November 13, 2014

February 13, 2015

Chief Financial Officer

(Principal Financial and Accounting Officer)

In accordance with the requirements of

the Exchange Act, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

RECON TECHNOLOGY, LTD

February 13, 2015

/s/ Yin Shen ping

1 unchanged sentence

Chief Executive Officer

(Principal Executive Officer)

November 13, 2014

Chief Financial Officer

(Principal Financial and Accounting Officer)

RECON TECHNOLOGY,

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited Condensed Consolidated Balance Sheets as of June 30, 2014 and September 30, 2014

Unaudited Condensed Consolidated Statements of

Operations and Comprehensive Income (Loss) for the three months ended September 30, 2013 and 2014

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2013 and 2014

Unaudited Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2014

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income for the six and three months ended December 31, 2013 and 2014

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2013 and 2014

Notes to Unaudited Condensed Consolidated Financial Statements

RECON TECHNOLOGY, LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE

RECON TECHNOLOGY,

condensed Consolidated Balance Sheets

As of June 30,

As of September 30,

As of December 31,

Current assets

Cash and cash equivalents

Notes receivable

Trade accounts receivable, net

11 unchanged sentences

Long-term trade accounts receivable, net

Long-term trade accounts receivable-related party, net

Long-term other receivable

3 unchanged sentences

Trade accounts payable

Trade accounts payable- related parties

Other payables

12 unchanged sentences

dollar par value, 25,000,000 shares authorized;

4,717,336 and 4,726,711 shares issued and outstanding as of June 30, 2014 and September 30, 2014, respectively)

4,717,336 and 4,726,711 shares issued and outstanding as of June 30, 2014 and December 31, 2014, respectively)

Additional paid-in capital

7 unchanged sentences

condensed consolidated financial statements

RECON TECHNOLOGY, LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

RECON TECHNOLOGY,

condensed Consolidated Statements of OPERATIONS and

Comprehensive Income

For the six months ended

For the three months ended

September 30,

Hardware and software

16 unchanged sentences

Change in fair value of warrants liability

Gain (loss) from foreign currency exchange

Loss from foreign currency exchange

Other expense

Other income (expenses)

Income (loss) before income tax

Income before income tax

Provision for income tax

Net Income (loss)

Net income attributable to non-controlling interest

Net Income (loss) attributable to Recon Technology, Ltd

Comprehensive income (loss)

Net income (loss)

Net Income attributable to Recon Technology, Ltd

Comprehensive income

Foreign currency translation adjustment

Comprehensive income (loss)

Comprehensive income

Comprehensive income attributable to non-controlling interest

Comprehensive income (loss) attributable to Recon Technology, Ltd

Earnings per common share - basic and diluted

Weighted - average shares -basic and diluted

The accompanying notes are an integral part of these unaudited

condensed consolidated financial statements.

Comprehensive income attributable to Recon Technology, Ltd

Earnings per common share - basic

Earnings per common share - diluted

Weighted - average shares -basic

Weighted - average shares -diluted

The accompanying notes are an integral part

of these unaudited condensed consolidated financial statements

RECON TECHNOLOGY,

condensed Consolidated Statements of Cash Flows

For the three months ended September 30,

For six months ended December 31,

Cash flows from operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Provision/(recovery of) for doubtful accounts

Adjustments to reconcile net income to net cash used in operating activities:

Gain from disposal of equipment

Provision for doubtful accounts

Share based compensation

Loss from investment

Deferred tax provision/(benefit)

Deferred tax benefit

Change in fair value of warrants liability

Restricted shares issued to consulting firm

Restricted shares issued for services

Changes in operating assets and liabilities:

Notes receivable

Trade accounts receivable

(27,881,579 )

Trade accounts receivable-related parties

Notes receivable

Other receivable, net

1 unchanged sentence

Purchase advance, net

Purchase advance-related party, net

Tax recoverable

11 unchanged sentences

Net cash used in operating activities

(15,389,618 )

Cash flows from investing activities:

Purchase of property and equipment

Proceeds from disposal of equipment

Net cash used in investing activities

2 unchanged sentences

Repayments of short-term bank loans

Proceeds from short-term borrowings-related parties

Repayment of short-term borrowings

Repayment of short-term borrowings-related parties

Net cash provided by (used in) financing activities

Proceeds from sale of common stock, net of issuance costs

Net cash provided by financing activities

Effect of exchange rate fluctuation on cash and cash equivalents

Net decrease in cash and cash equivalents

Net ncrease (decrease) in cash and cash equivalents

(13,146,622 )

6 unchanged sentences

Cancelation of prior issuance of 40,625 shares of common stock for professional services

The accompanying notes are an integral part of these unaudited

condensed consolidated financial statements.

accompanying notes are an integral part of these unaudited condensed consolidated financial statements

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

ORGANIZATION AND NATURE OF OPERATIONS

54 unchanged sentences

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation - The

accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles

generally accepted in the United States of America and have been consistently applied.

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

Basis of Presentation -

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting

principles generally accepted in the United States of America for interim financial information pursuant to the rules of the

SEC and have been consistently applied.

In the opinion of the management, all adjustments (consisting only normal recurring

accruals) considered necessary for a fair presentation have been included.

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, 2014.

The results of operations for the interim periods presented may not be indicative of the operating

results to be expected for the Company’s fiscal year ending June 30, 2015.

The results of operations for the interim periods presented may not be indicative of the

operating results to be expected for the Company’s fiscal year ending June 30, 2015.

Variable Interest Entities - A

9 unchanged sentences

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Assets recognized as a result of consolidating

5 unchanged sentences

have been expressed in Chinese Yuan.

The statements as of and for the three months period ended September 30, 2014 have been translated

The statements as of and for the six months period ended December 31, 2014 have been translated

into United States dollars (“U.S.

1 unchanged sentence

The translation has been made

at the rate of ¥6.1534 = US$1.00, the approximate exchange rate prevailing on September 30, 2014.

at the rate of ¥6.1385 = US$1.00, the approximate exchange rate prevailing on December 31, 2014.

These translated U.S.

7 unchanged sentences

Significant estimates include revenue recognition, allowance for doubtful

accounts, the useful lives of property and equipment, deferred income tax, warrants liability and the fair value of stock based

Since the use of estimates is an integral component of the financial reporting process, actual results could differ from

those estimates.

accounts, the useful lives of property and equipment and the fair value of stock based payments.

Since the use of estimates is

an integral component of the financial reporting process, actual results could differ from those estimates.

Fair Values of Financial Instruments

34 unchanged sentences

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Purchase Advances - Purchase

27 unchanged sentences

flows expected to be generated by the asset.

There were no impairments at June 30, 2014 and September 30, 2014.

There were no impairments at June 30, 2014 and December 31, 2014.

Revenue Recognition - The

36 unchanged sentences

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Share-Based Compensation -

24 unchanged sentences

Income tax returns for the years prior to 2010 are no longer subject to examination by tax authorities.

Earnings (loss) per Share (“EPS”)

- Basic EPS is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary

Earnings per Share (“EPS”)

- Basic EPS is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary

shares outstanding.

Diluted EPS are computed by dividing net income (loss) attributable to ordinary shareholders by the weighted-average

Diluted EPS are computed by dividing net income attributable to ordinary shareholders by the weighted-average

number of ordinary shares and dilutive potential ordinary share equivalents outstanding.

1 unchanged sentence

of ordinary shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using the treasury stock

The effect from options and warrants would have been anti-dilutive due to the fact that the exercise prices were

higher than the average stock price during the three months ended September 30, 2013.

The effect from options, restricted shares

and warrants would have been anti-dilutive due to the fact that we incurred a net loss during the three months ended September

For the six months ended December 31, 2014, there were 104,359 restricted shares included in the weighted average

dilutive shares calculation.

For the three months ended December 31, 2013 and 2014, there were 62,445 and 94,106 restricted shares

included in the weighted average dilutive shares calculation, respectively.

The effect from options, restricted shares and warrants

would have been anti-dilutive due to the fact that the exercise prices were higher than the average stock price during the six

months ended December 31, 2013.

Recently Issued Accounting Pronouncements

In June 2014, the FASB issued ASU 2014-12,

“Compensation-Stock Compensation (Topic 718):

Accounting for Share-Based Payments When the Terms of an Award Provide That

a Performance Target Could Be Achieved after the Requisite Service Period,”

(“ASU 2014-12”).

ASU 2014-12 requires

that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance

As such, the performance target should not be reflected in estimating the grant-date fair value of the award.

the issuance of ASU 2014-12, U.S.

GAAP did not contain explicit guidance on how to account for those share-based payments.

reporting entities accounted for performance targets that could be achieved after the requisite service period as performance conditions

that affect the vesting of the award and, therefore, did not reflect the performance target in the estimate of the grant-date fair

value of the award.

Other reporting entities treated those performance targets as non-vesting conditions that affected the grant-date

fair value of the award.

We currently treat performance targets that affect vesting as a performance condition and as such, it

is not included in the grant-date fair value.

Therefore, the impact upon adoption would not be material to our consolidated financial

position or results of operations.

The amendments in ASU 2014-12 are effective for fiscal years and interim periods within those

years, beginning after December 15, 2015.

Earlier application is permitted.

The Company does not expect the adoption of his

guidance will have a significant impact on the Company’s unaudited condensed consolidated financial statements .

In August 2014, The FASB issued ASU 2014-15,

“'Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”

(“ASU 2014-15”).

ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern

within one year of the date of issuance of the entity’s financial statements.

Further, an entity must provide certain disclosures

if "conditions or events raise substantial doubt about an entity’s ability to continue as a going concern."

amendments in ASU 2014-15 are effective for annual periods beginning after 15 December 2015, and interim periods thereafter, with

early adoption permitted.

The Company does not expect the adoption of his guidance will have a significant impact on the Company’s

unaudited condensed consolidated financial statements.

The Company does not expect the adoption of this guidance will have a significant

impact on the Company’s unaudited condensed consolidated financial statements.

In November 2014, The

November 2014, The FASB issued Accounting Standards Update (ASU) No.

2014-17, “Business Combinations (Topic 805):

Accounting, a consensus of the FASB Emerging Issues Task Force, which was ratified by the Financial Accounting Standards Board

(FASB) on Oct 8, 2014.

2014-17 impacts the stand-alone financial statements of an acquired entity (subsidiary), however

it does not change the requirement for an acquirer (parent) to apply business combination accounting and record its new basis in

the acquired entity’s assets, liabilities, and non-controlling interests in the acquirer’s consolidated financial statements.

The amendments in this Update are effective on November 18, 2014.

After the effective date, an acquired

entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event.

Management believes this ASU 2014-17 does not have any significant impact on the Company’s consolidated financial statements.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

In December 2014, The

FASB issued Accounting Standards Update (ASU) No.

2014-16, “Determining Whether the Host Contract in a Hybrid Financial Instrument

Issued in the Form of a Share Is More Akin to Debt or to Equity,”

in response to the EITF’s final consensus on Issue

The ASU requires an entity to “determine the nature of the host contract by considering all stated and implied substantive

terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances”

(commonly referred to as the whole-instrument approach).

The ASU applies to all entities and is effective for annual periods

beginning after December 15, 2015, and interim periods thereafter.

2014-18, “Business Combinations (Topic 805):

accounting for identifiable

intangible assets in a business combination (a consensus of the private company council)”.

2014-18 affects all entities

except for public business entities and not-for-profit entities as defined in the Master Glossary of the FASB Accounting Standards

Codification®.

An entity within the scope of this Update that elects the accounting alternative to recognize or otherwise consider

the fair value of intangible assets as a result of any in-scope transactions should no longer recognize separately from goodwill

(1) customer-related intangible assets unless they are capable of being sold or licensed independently from the other assets of

the business and (2) noncompetition agreements.

The decision to adopt the accounting alternative in this Update must be made upon

the occurrence of the first transaction within the scope of this accounting alternative in fiscal years beginning after December

15, 2015, and the effective date of adoption depends on the timing of that first in-scope transaction.

If the first in-scope transaction

occurs in the first fiscal year beginning after December 15, 2015, the elective adoption will be effective for that fiscal year’s

annual financial reporting and all interim and annual periods thereafter.

If the first inscope transaction occurs in fiscal years

beginning after December 15, 2016, the elective adoption will be effective in the interim period that includes the date of that

first in-scope transaction and subsequent interim and annual periods thereafter.

Early application is permitted for any interim

and annual financial statements that have not yet been made available for issuance.

In January 2015, the

FASB issued ASU 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement

Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”).

ASU 2015-01 eliminates from GAAP the

concept of extraordinary items.

The amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider

whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual

in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently

The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning

after December 15, 2015.

Early adoption is permitted.

The Company is currently in

the process of evaluating the impact of this new standard update.

The impact upon adoption would not affect our consolidated financial position

or results of operations.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Notes receivable

Notes receivable consisted of the following:

June 30, 2014

Notes receivable

Total Notes receivable

Notes receivable represents trade accounts receivable

due from various customers where the customers’

banks have guaranteed the payment.

The notes are non-interest bearing

and normally paid within three to six months.

The Company has collected ¥2,777,565

($452,483) on January 22, 2015.

TRADE ACCOUNTS RECEIVABLE, NET

1 unchanged sentence

June 30, 2014

September 30,

Trade accounts receivable

2 unchanged sentences

June 30, 2014

September 30,

Third Party –

Beijing Yabei Nuoda Science and Technology Co.

Allowance for doubtful accounts

Total - long-term trade accounts receivable, net

The receivable from Yabei Nuoda was recognized

primarily from the sale of automation system and services based on written contracts.

Based on the repayment agreement signed on

August 27, 2014, the outstanding balance will be collected in four years beginning 2016, with each installment of ¥4,015,644.

June 30, 2014

Related Party

4 unchanged sentences

Total - related-parties, net

Related Party

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

June 30, 2014

September 30,

Non-Current Portion

Related Party –

Beijing Yabei Nuoda Science and Technology Co.

Allowance for doubtful accounts

Total - related-parties, net

Total - long-term trade accounts receivable, net

* One of the Founders, Mr.

Shenping, was the legal representative of Beijing Yabei Nuoda Science and Technology Co.

Ltd (“Yabei Nuoda”)

before December 2013, and Chairman as of end of the quarter ended September 30, 2014.

Yin Shenping,

was the legal representative of Beijing Yabei Nuoda before December

2013 and Chairman as of September 30, 2014.

On October 30, 2014, Mr.

from the chairman position and thus Yabei Nuoda is not related party of the Company after October 30, 2014.

have any equity interest in this company currently.

The receivable from Yabei Nuoda was generated primarily from the sale of

automation system and services based on written contracts.

Based on the repayment agreement signed on August 27, 2014,

the outstanding balance will be collected in four years with each installment of ¥4,015,644.

Yin resigned from the chairman position and thus Yabei Nuoda

ceased to be a related party of the Company after October 30, 2014.

Yin does not have any equity interest

in this company currently.

OTHER RECEIVABLES, NET

1 unchanged sentence

June 30, 2014

September 30,

Current Portion

4 unchanged sentences

Allowance for doubtful accounts

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

June 30, 2014

September 30,

Non-Current Portion

Due from ENI (A)

(A) After ENI ceased to be a VIE of the Company, ENI in January 2012

agreed to repay the loan on a payment schedule, with interest accrued during the period at an annual rate of 4%.

In accordance

with the payment schedule, the principal plus accrued interest is required to be repaid over approximately three years on a quarterly

basis beginning March 2012.

(A) After Jining ENI Energy Technology Co.

(“ENI”) ceased to be

of the Company in

payment schedule,

with interest accrued during the period at an annual rate of 4%.

accordance with the payment schedule, the principal plus accrued interest is required to be repaid over approximately three

years on a quarterly basis beginning March 2012.

The first four payments are RMB 1.2 million each.

In March, June, September and December of 2012, the

Company received RMB 4.8 million.

Starting March 2013, installments for each quarter would be ¥1,777,653.

The Company has received

the payments on time in March and June, 2013.

On September 30, 2013, ENI proposed to extend the payment period and signed a new

contract with the Company.

According to the new arrangement, the remaining part of this loan will be repaid over four years with

quarterly installments of ¥699,147.

The Company received the payments timely since March 2013.

For the three months period

ended September 30, 2014, the quarterly payment of ¥699,147 was received on October 10, 2014.

In March, June, September

and December of 2012, the Company received RMB 4.8 million.

Starting March 2013, installments for each quarter would be

¥1,777,653.

The Company received the payments on time in March and June, 2013.

On September 30, 2013, ENI proposed to

extend the payment period and signed a new contract with the Company.

According to the new arrangement, the then remaining

balance of this loan will be repaid by June 2017 with quarterly installments of ¥699,147.

The has Company received the

payments timely under the new agreement.

(B) Loans to third parties are mainly used for short-term funding

3 unchanged sentences

and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance.

Other receivables - related parties represent loans

to related parties for working capital advances to related entities.

Such advances are due-on-demand and non-interest bearing.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

receivables - related parties represent loans to related parties for working capital advances to related entities.

Such advances

are due-on-demand and non-interest bearing.

Below is a summary of other receivables - related parties which

2 unchanged sentences

June 30, 2014

September 30,

Name of Related Party

2 unchanged sentences

Other-travel advances

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

* Not a related party after October

31, 2014 (See Note 3).

PURCHASE ADVANCES

3 unchanged sentences

June 30, 2014

September 30,

Prepayment for inventory purchase

Allowance for doubtful accounts

Below is a summary of purchase advances to related party.

is a summary of purchase advances to related party.

June 30, 2014

September 30,

Related Party

Xiamen Huangsheng Hitek Computer Network Co.

Guangxi Dadong Agriculture Co.

Xiamen Huasheng Hitek Computer Network Co.

The Company entered into a purchase agreement with Xiamen Huasheng

Hitek in September, 2014 and planned to offset the purchase advance.

At September 30, 2014, remaining amount to be paid was ¥797,585,

which was included in accounts payable-related party.

In October, 2014, the Company didn’t offset the advance payment and

paid the whole contract amount in cash.

(A) One of the Founders and a family member collectively own 57% of

Xiamen Huasheng Haitian Computer Network Co.

(B) One of the Founders and a family member own Guangxi Dadong Agriculture

This advance was repaid to the Company on October 27, 2014 due to the cancelation of the purchase.

Xiamen Huasheng Hitek Computer Network Co.

Current ending balance of the purchase advances to Xiamen Huasheng Hitek is expect

to be settled within one year.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Inventories consisted of the following:

June 30, 2014

September 30,

Small component parts

3 unchanged sentences

Total inventories

was no inventory obsolescence reserve at June 30, 2014 and September 30, 2014.

was no inventory obsolescence reserve at June 30, 2014 and December 31, 2014.

PROPERTY AND EQUIPMENT, NET

1 unchanged sentence

June 30, 2014

September 30,

Motor vehicles

3 unchanged sentences

Property and equipment, net

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Depreciation expense was ¥150,973 and

¥121,347 ($19,720) for the three months ended September 30, 2013 and 2014, respectively.

¥153,164 ($24,951) for the three months ended December 31, 2013 and 2014, respectively.

Depreciation expense was ¥301,341 and

¥274,511 ($44,720) for the six months ended December 31, 2013 and 2014, respectively.

LONG-TERM INVESTMENT

3 unchanged sentences

Since the restriction for the shares is for two years, the Company was able to acquire the shares at 50% of the market

The investment was accounted for using the equity method.

As of June 30, 2014 and September 30, 2014, Recon owned 24.02%

of Avalon’s outstanding shares.

Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under

the ticker symbol AOGN.

However, based on the available information and discussion with the management team of Avalon, Avalon’s

operating loss would not be recovered in the foreseeable future, therefore, the Company recorded an investment loss of ¥1,535,250

( $250,000) during the year ended June 30, 2014.

The investment was accounted for using the equity method and no gain or loss from equity investment was recorded for the

year ended June 30, 2013 due to immateriality.

As of June 30, 2014 and December 31, 2014, Recon owned 24.02% and 23.61% of Avalon’s

outstanding shares, respectively.

Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under the

ticker symbol AOGN.

Avalon is building a portfolio of oil and gas producing properties to generate asset growth.

However, the stock

is not actively traded and, based on available information and discussion with the management team of Avalon, we believe Avalon’s

operating loss would not be recovered in the foreseeable future, therefore, the Company believes the investment was impaired and

recorded an investment loss of ¥1,535,250 ( $250,000) for the year ended June 30, 2014 to write its investment own to

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

OTHER PAYABLES

1 unchanged sentence

June 30, 2014

September 30,

Consulting services

1 unchanged sentence

June 30, 2014

September 30,

Related Party

3 unchanged sentences

Due to management staff on behalf of Recon

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(1) Includes an advance from Yabei Nuoda for RMB 61,301 and an advance

from Xiamen Henda Haitek for RMB 2,499,347 to supplement the Company’s working capital.

The advances are payable on demand

and non-interest bearing.

(1) Includes an advance from Xiamen Henda Haitek for RMB 2,499,347

to supplement the Company’s working capital.

The advances are payable on demand and non-interest bearing.

TAXES PAYABLE

2 unchanged sentences

June 30, 2014

September 30,

Enterprise income tax payable

4 unchanged sentences

June 30, 2014

September 30,

Industrial and commercial bank, floating interest rate at 5.6%, due on December 24, 2014

1 unchanged sentence

Total short-term bank loans

expense was ¥219,672 and ¥157,511 ($25,597) for the three months ended September 30, 2013 and 2014, respectively.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

expense was ¥257,085 and ¥80,667 ($13,141) for the three months ended December 31, 2013 and 2014, respectively.

expense was ¥476,757 and ¥238,178 ($38,801) for the six months ended December 31, 2013 and 2014, respectively.

SHORT-TERM BORROWINGS DUE

3 unchanged sentences

June 30, 2014

September 30,

Short-term borrowings due to related parties:

Short-term borrowings due to related

Short-term borrowing from a Founder, 6.6% annual interest, due on December 25, 2014

Short-term borrowing from a Founder, 7.0% annual interest, due on October 20, 2015

Short-term borrowing from a Founder, 6.0% annual interest, due on October 2, 2015

Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co.

Ltd., no interest, due on November 14, 2014, and extended to November 15, 2015

Ltd., no interest, due on November 14, 2015

Total short-term borrowings due to related parties

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Interest expense for short-term borrowings

due to related parties was ¥532 and ¥84,333 ($13,705) for the three months ended September 30, 2013 and 2014, respectively.

Note 13 –WARRANTS LIABILITY

due to related parties was ¥910 and ¥146,445 ($23,857) for the three months ended December 31, 2013 and 2014, respectively.

Interest expense for short-term borrowings

due to related parties was ¥1,441 and ¥230,778 ($37,595) for the six months ended December 31, 2013 and 2014, respectively.

Note 14 –WARRANT LIABILITY

In connection with the stock offering in

10 unchanged sentences

Model using the following assumptions:

September 30,

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Annual dividend yield

15 unchanged sentences

within the fair value hierarchy the warrants liability that was accounted at fair value on a recurring basis.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Fair Value Measurement at

3 unchanged sentences

June 30, 2014

Warrants liability

2 unchanged sentences

Carrying Value at

September 30, 2014

December 31, 2014

Warrants liability

1 unchanged sentence

is a reconciliation of the beginning and ending balance of the warrant liability measured at fair value on a recurring basis for

three months ended September 30, 2014:

six months ended December 31, 2014:

Change of warrants liability

1 unchanged sentence

Change of warrant liability

Ending balance -September 30, 2014

Ending balance -December 31, 2014

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

SHAREHOLDERS’

15 unchanged sentences

Purchase Agreement, except that these warrants are not exercisable for a period of six months and will expire three years from

the initial exercise date.

In addition to the above warrants issued to the placement

agent, the Company granted warrants for 170,000 shares in connection with its IPO offering, and none of these warrants was

exercised during this period.

the initial exercise date in 2016.

In addition to the above warrants issued to the placement agent,

the Company granted warrants for 170,000 sharesin connection with its IPO offering, and none of these warrants was exercised during

Appropriated Retained Earnings

5 unchanged sentences

of the companies.

As of June 30, 2014 and September 30, 2014, the balance of total statutory reserves was ¥4,148,929 ($674,250).

As of June 30, 2014 and December 31, 2014, the balance of total statutory reserves was ¥4,148,929 and ¥4,631,899

STOCK-BASED COMPENSATION

9 unchanged sentences

following weighted-average assumptions:

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Stock price at grant date

4 unchanged sentences

Forfeiture rate****

* Volatility is projected using the performance

of PHLX Oil Service Sector index.

* Volatility is projected using

the performance of PHLX Oil Service Sector index.

** The life of options represents the period

9 unchanged sentences

fair value of the options was ¥30.17 ($4.42) per share.

The Company granted options to purchase 415,000 ordinary shares to its employees and non-employee director on

March 26, 2012.

The options have an excise price of $2.96, which was equal to the share price of the Company’s ordinary shares

at March 26, 2012, and will vest over a period of five years, with the first 20% vesting on March 26, 2013.

The options expire

ten years after the date of grant, on March 26, 2022.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Options Plan –

Company granted options to purchase 415,000 ordinary shares to its employees and non-employee director on March 26, 2012.

have an excise price of $2.96, which was equal to the share price of the Company’s ordinary shares at March 26, 2012, and

will vest over a period of five years, with the first 20% vesting on March 26, 2013.

The options expire ten years after the date

of grant, on March 26, 2022.

The Company recognizes

6 unchanged sentences

Outstanding as of July 1, 2014

Outstanding as of September 30, 2014

Outstanding as of December 31, 2014

The following

is a summary of the status of options outstanding and exercisable at September 30, 2014:

is a summary of the status of options outstanding and exercisable at December 31, 2014:

Outstanding Options

4 unchanged sentences

Contractual life

During the three months September 30, 2014,

the Company has granted restricted shares of common stock to consultants as follow:

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

During the six months December 31, 2014,

the Company has granted restricted ordinary shares as follows:

On July 19, 2014, the Company granted 50,000

restricted shares to a non-affiliate as compensation for certain consulting service.

The fair value of the restricted shares

was $190,000 based on the closing stock price $3.8 at July 18, 2014.

On May 7, 2014, the Company granted 40,625

restricted shares to a consulting firm for consulting services.

The total value amounted to ¥1,002,362 ($162,906), based on

the stock closing price of $4.01 at May 7, 2014.

On July 19, 2014, the Company decided to

cancel 40,625 restricted shares, as the services were not provided

pursuant to the agreement it had with the Company.

The fair value of the restricted shares was

$190,000 based on the closing stock price $3.8 at July 18, 2014.

On August 7, 2014, the Company

canceled 40,625 restricted shares, which was issued to Expert Asia Investment Ltd.

on May 8, 2014, as the services

were not provided pursuant to the agreement it had with the Company.

On December 13, 2013, the Company granted

3 unchanged sentences

($688,782), based on the stock closing price of $2.99 at December 13, 2013.

These restricted shares will be vested over three years

These restricted shares will vest over three years

with one third of the shares vesting every year from the grant date.

The Share-based compensation expense recorded

for restricted shares granted were ¥353,437 ($57,399) for the three months ended September 30, 2014.

Total unrecognized share-based

compensation expense for these shares as of September 30, 2014 was approximately ¥3.1 million ($0.5 million), which are expected

to be recognized over a weighted average period of approximately 2.21 years.

The first one third was vested on December 13, 2014 and are

now non-restricted.

The Share-based compensation expense recorded

for stock options granted were ¥414,954 and ¥247,141 ($40,136) for the three months ended September 30, 2013 and 2014,

for restricted shares granted were ¥66,229 and ¥705,612 ($114,949) for the six months ended December 31, 2013 and 2014,

respectively.

The total unrecognized share-based compensation expense for stock options as of September 30, 2014 was approximately

¥2.0 million ($0.3 million), which is expected to be recognized over a weighted average period of approximately 2.49 years.

Total unrecognized share-based compensation expense for these shares as of December 31, 2014 was approximately ¥2.8

million ($0.4 million), which are expected to be recognized over a weighted average period of approximately 1.95 years.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

The Share-based compensation expense recorded

for stock options granted were ¥414,326 and ¥409,418 ($66,697) for the six months ended December 31, 2013 and 2014, respectively.

The total unrecognized share-based compensation expense for stock options as of December 31, 2014 was approximately ¥1.9 million

($0.3 million), which is expected to be recognized over a weighted average period of approximately 2.24 years.

Following is a summary of the restricted

1 unchanged sentence

Restricted stock grants

Nonvested as of July 1, 2014

Nonvested adjustment

Nonvested as of September 30, 2014

Nonvested as of June 30, 2014

No vested adjustment

Nonvested as of December 31, 2014

The Company is not subject to any income

11 unchanged sentences

June 30, 2014

September 30,

Allowance for doubtful receivables

Total deferred income tax assets

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Deferred tax liability is comprised of the following:

June 30, 2014

September 30,

Temporary difference - accounts payable

Income tax cost due to unpayable accounts

Total deferred income tax liability

The Company’s tax provision is comprised of the following:

For the three months ended September 30,

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

The Company’s tax provision (benefit) is comprised of

the following:

For the three months ended December 31,

Current income tax

Deferred income taxes

For the six months ended December 31,

Current income taxes

Deferred income taxes provision (benefit)

Provision for income tax

Deferred income taxes

NON-CONTROLLING INTEREST

6 unchanged sentences

Total non-controlling interest

As of September 30, 2014

As of December 31, 2014

Paid-in capital

3 unchanged sentences

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

CONCENTRATIONS

For the three months ended September 30,

For the three months ended December 31,

2013 and 2014, our two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical

Corporation Limited (“SINOPEC”), represented 50.7%, 14.0% and 58.83%, 10.35% of the Company’s revenue, respectively.

For the three months ended September

30, 2013, four major suppliers accounted for 71.9%

of the company’s total purchase.

For the three months ended September 30, 2014, two major suppliers accounted for 25% of

the company’s total purchases.

COMMITMENTS AND

For the six months ended December 31, 2013

and 2014, our two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical

Corporation Limited (“SINOPEC”), represented 48.04%, 18.01% and 56.79%, 8.89% of the Company’s revenue, respectively.

For the three months ended December 31,

2013, four major suppliers accounted for 52.7% of the

company’s total purchase.

For the three months ended December 31, 2014, one major suppliers accounted for 20% of the company’s

total purchases.

For the six months ended December 31, 2013,

four major suppliers accounted for 48.8% of the company’s

total purchase.

For the six months ended December 31, 2014, one major suppliers accounted for 14% of the company’s total

COMMITMENTS AND CONTINGENCY

(a) Office Leases

3 unchanged sentences

Future payments under such leases

are as follows as September 30, 2014:

Twelve months ending September 30,

are as follows as December 31, 2014:

Twelve months ending December 31,

Office lease payment

In January 2015, BHD renewed its lease agreements

amounted to ¥840,000 ($136,841) for one more year.

(b) Contingency

4 unchanged sentences

provided by the employees.

As of September 30, 2014, the Company estimated its severance payments of approximately ¥1.4 million

As of December 31, 2014, the Company estimated its severance payments of approximately ¥1.5 million

($0.2 million) which has not been reflected in its unaudited condensed consolidated financial statements because the Company has

3 unchanged sentences

to related parties consisted of the following:

For the three months ended September 30,

For the three months ended December 31,

Beijing Yabei Nuoda Science and Technology Co.

2 unchanged sentences

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

For the six months ended December 31,

Beijing Yabei Nuoda Science and Technology Co.

Xiamen Henda Haitian computer network Inc

Revenues from related parties

* Not a related party after October 31, 2014, (See Note 3).

Purchases from related parties –

from related parties consisted of the following:

For the three months ended September 30,

For the six months ended December 31,

Xiamen Hengda Hitek Computer Network Co.

Purchase from related parties

accounts payable to related parties - The Company owed ¥0 and ¥389,143 ($63,240) to one related party as of

June 30, 2014 and September 30, 2014 .

advance to related parties - The Company paid ¥394,034 and ¥1,500,000 ($243,767) to related parties for materials

as of June 30, 2014 and September 30, 2014 .

There was no purchase from related parties for the three months

ended December 31, 2014.

Leases from related parties - The

10 unchanged sentences

parties - The Company borrowed ¥5,207,728 and ¥9,631,504 ($1,569,032) from the Founders, their family members and

senior officers as of June 30, 2014 and September 30, 2014, respectively.

senior officers as of June 30, 2014 and December 31, 2014, respectively.

For the specific terms and interest rates of the borrowings,

4 unchanged sentences

Chen paid certain operating expense for the Company.

30, 2014 and September, 2014, ¥284,370 and ¥459,252 ($74,634) was due to them, respectively.

30, 2014 and December 31, 2014, ¥284,370 and ¥676,322 ($110,177) was due to them, respectively.

Variable Interest Entities

The Company reports its VIEs’

portion of consolidated

net income and stockholders’

equity as non-controlling interests in the condensed consolidated financial statements.

of consolidated net income and stockholders’

equity as non-controlling interests in the condensed consolidated financial

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL

Summary information regarding consolidated VIEs is as follows:

June 30, 2014

September 30,

Current Assets

9 unchanged sentences

Total Liabilities

financial performance of VIEs reported in the unaudited condensed consolidated statement of income and comprehensive income

for the three months ended September 30, 2014 includes revenues of ¥4,303,999 ($699,451), gross profit of ¥615,313

($99,996), operating expenses of ¥2,511,735 ($408,187), other expense of ¥31,725($5,156) and

a net loss of ¥1,958,392($318,262).

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

SUBSEQUENT EVENT

18, 2014, the Company received ¥6,000,000 ($975,071) loan from a founder of the Company.

This loan is due on October 20, 2015

with a floating annual interest rate of 120% of the benchmark interest rate per year.

financial performance of VIEs reported in the condensed consolidated statement of income and comprehensive income for the three

months ended December 31, 2014 includes revenues of ¥21,328,972 ($3,474,623), gross profit of ¥8,977,931 ($1,462,561),

operating expenses of ¥3,63,239 ($588,619), other income of ¥119,650($19,492) and

a net income of ¥4,865,655($792,646).

financial performance of VIEs reported in the condensed consolidated statement of income and comprehensive income for the six months

ended December 31, 2014 includes revenues of ¥25,632,972 ($4,175,771), gross profit of ¥9,593,245 ($1,562,799), operating

expenses of ¥6,124,974 ($997,797), other income of ¥87,925($14,323) and a net

income of ¥2,907,263 ($473,611).

SUBSEQUENT EVENTS

On January 12, 2015 the Company borrowed

¥1.6 million from its Chief Operating Officer to supplement the Company’s working capital.

This loan is due on

October 12, 2015 with an annual interest rate of 6.16%.

On January 28, 2015, the Company entered into an engagement agreement with Maxim Group LLC ( “Maxim”)

who shall serve as the exclusive agent for the Company in connection with the Company’s offering of up to $10,000,000 of

its registered shares.

On January 29, 2015, the Company’s

shareholders approved an increase of its authorized shares from 25,000,000 shares to 100,000,000 shares.

The shareholders also

approved the Company's 2015 Equity Incentive Plan.

On January 31, 2015, the Company granted

150,000 restricted shares to Mr.

Yin Shenping and 150,000 restricted shares to Mr.

Chen Guangqiang under the Company’s 2015

Inventive Plan.

These restricted shares will vest over three years with one third of the shares vesting every year from the grant

The Company also granted 400,000 options to management and staff.

Exercise price for each warrant is $1.65 per share and

will vest over three years with one third of the warrants vesting every year from the grant date.

On February 2, 2015, the Company entered into an engagement agreement with Maxim who shall serve as the

exclusive financial advisor and investment banker for the Company .

Either party may terminate this engagement agreement at any

time upon 30 days prior written notice after the 6 months anniversary of this agreement.

Pursuant to this agreement, the Company

issued 24,000 restricted shares to Maxim.

On February 13, 2015, the Company

entered into certain warrants exchange agreements with certain holders (the “Holders”) of warrants to purchase

163,950 ordinary shares of the Company (the “Warrants”) issued in the Company’s November 2013

registered offering.

These Holders agreed to exchange the Warrants for 204,938 of ordinary shares (the

“Exchange Shares”) equal to one hundred twenty five percent (125%) of the shares issuable upon exercise of the

The Exchange Shares will be issued to the Holders in exchange for the Warrant and without the payment of any other

consideration by the Holders.

Upon completion of the transaction contemplated in the Exchange Agreement, the Warrants shall

will be automatically canceled and terminated.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 5. Other Information