10-K: Hi-Great Group Holding Company Reports Annual Results for Fiscal Year 2024

Hi-Great Group Holding Company reports a net loss of $48,616 on revenue of $69,210 for the year ended December 31, 2024, and is focused on growing its nutritional health supplement sales and developing its Harvest Island Garden Resort.

Summary

• Hi-Great Group Holding Company, a development stage enterprise incorporated in Nevada, filed its annual report on Form 10-K for the fiscal year ended December 31, 2024.
• The company's business plan includes maximizing shareholder returns through dividends, sustainable growth in cash flows, potential long-term appreciation in property value, and distribution of plant-based consumer products.
• The company is focused on growing organically through internet sales of longevity health supplements and integrating CBD oils into new product lines, as well as expanding into the cosmetic sector.
• The company is also developing a weekend gardening resort destination near Los Angeles, combining agriculture with family farm experiences.
• For the year ended December 31, 2024, the company reported revenue of $69,210, compared to $109,491 in 2023, and a cost of sales of $35,243, compared to $58,573 in 2023.
• The company incurred professional fees of $50,050 in 2024, compared to $87,997 in 2023, and depreciation expense of $20,673, compared to $27,565 in 2023.
• General and administrative expenses were $12,754 in 2024, compared to $54,838 in 2023.
• The company reported a net loss of $48,616 for the year ended December 31, 2024, compared to a net loss of $121,758 in the prior year.
• The company has an accumulated deficit of $892,794.
• The company generated $16,127 from operating activities for the year ended December 31, 2024, compared to the used cash of $40,435 for the year ended December 31, 2023.
• The company received $20,673 from investing activities for the year ended December 31, 2024, compared to $29,435 received for the year ended December 31, 2023.
• The company used $34,660 from financing activities for the year ended December 31, 2024, compared to $19,577 cash used for the year ended December 31, 2023.
• The company's common stock is quoted on the OTC Pink Sheets under the symbol HIGR.
• As of the date of the report, there were approximately 69 holders of record of the company's common stock.
• The company is authorized to issue 1,100,000,000 shares of common stock and 10,000,000 shares of preferred stock.
• The company has not previously declared or paid any dividends on its common stock and does not anticipate declaring any dividends in the foreseeable future.
• The company's management has identified a material weakness in internal control over financial reporting due to a lack of resources and segregation of duties.
• The company's headquarters are located in Los Angeles, CA.
• The company's management is making efforts to raise additional funding until a registration statement relating to an equity funding facility is in effect.

Sentiment

Score: 4

Explanation: The document presents a mixed picture. While the company reduced its net loss, revenue declined, and a material weakness in internal control was identified. The company's future plans offer some optimism, but significant challenges remain.

Positives

• The company's net loss decreased significantly from $121,758 in 2023 to $48,616 in 2024.
• The company is actively pursuing new business opportunities, including the development of the Harvest Island Garden Resort and expansion into the cosmetics sector.
• The company generated $16,127 from operating activities for the year ended December 31, 2024, compared to the used cash of $40,435 for the year ended December 31, 2023.
• Professional fees decreased from $87,997 in 2023 to $50,050 in 2024.
• General and administrative expenses decreased from $54,838 in 2023 to $12,754 in 2024.

Negatives

• The company's revenue decreased from $109,491 in 2023 to $69,210 in 2024.
• The company has an accumulated deficit of $892,794.
• The company has identified a material weakness in its internal control over financial reporting due to a lack of resources and segregation of duties.
• The company has not previously declared or paid any dividends on its common stock and does not anticipate declaring any dividends in the foreseeable future.

Risks

• The company has not yet established an ongoing source of revenue sufficient to cover its operating costs and is dependent on debt and equity financing to fund its operations.
• The company's management has identified a material weakness in internal control over financial reporting due to a lack of resources and segregation of duties.
• The company's business is highly dependent on its ability to collect, use, store and manage organizational and property data, and any failure of these systems could result in a material disruption of its business.
• The company faces risks from cybersecurity threats, including potential disruptions of its information and data management systems.

Future Outlook

The company plans to grow organically through internet sales of its current worldwide exclusive license agreement with SellaCare, Inc. in the areas of Longevity Health Supplements and plans to integrate new product lines containing CBD Oils for additional health benefits and also expand into the lucrative cosmetic sector as an overall sustainable revenue platform as they become a major supplier in each of the three industry sectors.

Management Comments

• Our principal business objective is to maximize shareholders returns through a combination of (1) distributions to our shareholders, (2) sustainable long-term growth in cash flows from distribution of our products, which we hope to pass on to shareholders in the form of distributions, (3) potential long-term appreciation in the value of our properties from capital gains upon future sale, (4) other sustainable agricultural business opportunity which the Board of Directors determines to be beneficial to Company, or (5) distribution of plant-based finished consumer product and integrate the use of CBD Oils into its worldwide health supplement business to include expansion into the cosmetics sector using multiple strains of CBD oils and compounds.

Industry Context

The company operates in the health supplement and agritourism industries, which are both experiencing growth. The company's focus on organic and sustainable practices aligns with current consumer trends.

Comparison to Industry Standards

• It is difficult to compare Hi-Great Group Holding Company's financial results to industry standards due to its unique combination of health supplements and agritourism.
• Companies in the health supplement industry, such as Herbalife and Nature's Bounty, typically have much higher revenue and profitability.
• Agritourism businesses vary widely in size and scope, making direct comparisons challenging.
• The company's revenue of $69,210 is significantly lower than established players in either industry.

Related Party Transactions

• The company has a licensing agreement with SellaCare, Inc., where it pays 25% of all gross revenues or $1,000, whichever is greater, with $162,222 of licensing fees accrued as of December 31, 2024.
• The company has a land lease agreement with Sella Property, LLC, for property in Pearblossom, CA, with annual rent payments of $30,000 due on March 16th each year.

Stakeholder Impact

• Shareholders may be concerned about the company's declining revenue and accumulated deficit.
• Employees may be affected by the company's limited resources and potential need for additional funding.
• Customers may benefit from the company's plans to expand its product offerings and develop the Harvest Island Garden Resort.

Next Steps

• The company will focus on continued sales of nutritional health supplements and the build-out of the Harvest Island Garden Resort.
• The company plans to update its marketing and online presence to increase internet traffic and customer retention.
• The company intends to recruit additional professionals to ensure all necessary disclosures are included in filings with the Securities and Exchange Commission.

Key Dates

Keywords

financial results, annual report, health supplements, agritourism, weekend farm, CBD oils, cosmetics, HIGR, Hi-Great Group Holding Company