Hi-Great Group's Losses Widen Amid Revenue Decline, Cash Dwindles

TL;DR

**HIGR is a burning cash pile with widening losses and heavy related-party dealings; steer clear unless you're a high-risk speculator.**

AI Summary

Hi-Great Group Holding Co (HIGR) reported a significant decline in financial performance for the six months ended June 30, 2025. Revenue decreased by 21.8% to $19,018 from $24,330 in the prior year period. The company's net loss widened to $35,982, a 25.3% increase from a net loss of $28,710 in the same period of 2024. Gross profit also saw a substantial drop, falling 40.2% to $6,914 from $11,558. Operating expenses increased to $43,334 from $41,730, driven by higher professional fees and general and administrative expenses. Cash balances plummeted to $222 as of June 30, 2025, from $2,140 at December 31, 2024. The company continues to operate as a development stage enterprise, relying on debt and equity financing, and faces a going concern risk due to insufficient revenues to cover operating costs. Related party transactions, including a licensing agreement with SellaCare, Inc. and a land lease with Sella Property, LLC (both controlled by the majority shareholder), continue to impact financial results, with accrued royalty expenses of $166,977 as of June 30, 2025.

Why It Matters

Hi-Great Group's continued inability to generate sufficient revenue and its widening net losses are critical for investors, signaling a high-risk investment. The company's reliance on related party transactions, such as the 25% gross revenue royalty to SellaCare, Inc. and the land lease with Sella Property, LLC, both controlled by the majority shareholder, raises questions about corporate governance and potential conflicts of interest. For employees, the 'going concern' warning indicates job insecurity. Customers of HIGR's herbal supplements, sold under the SellaCare brand, might face supply chain instability if the company's financial health deteriorates further, impacting the competitive landscape for niche health product providers.

Risk Assessment

Risk Level: high — The company explicitly states a 'going concern' risk, indicating it has not established an ongoing source of revenues sufficient to cover operating costs and is dependent on debt and equity financing. Cash balances are critically low at $222 as of June 30, 2025, down from $2,140 at December 31, 2024, and the accumulated deficit has grown to $928,776, up from $892,794.

Analyst Insight

Investors should exercise extreme caution and consider avoiding HIGR stock given the severe 'going concern' risk, widening losses, and minimal cash reserves. Potential investors should await clear evidence of sustainable revenue generation and a solidified business model before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$19,018

operating Margin

-191.5%

total Assets

$69,022

total Debt

$265,732

net Income

-$35,982

eps

N/A

gross Margin

36.4%

cash Position

$222

revenue Growth

-21.8%

Revenue Breakdown

Key Numbers

• $19,018 — Revenue (Decreased by 21.8% for the six months ended June 30, 2025, from $24,330 in 2024.)
• $35,982 — Net Loss (Widened by 25.3% for the six months ended June 30, 2025, from $28,710 in 2024.)
• $6,914 — Gross Profit (Decreased by 40.2% for the six months ended June 30, 2025, from $11,558 in 2024.)
• $43,334 — Total Operating Expense (Increased for the six months ended June 30, 2025, from $41,730 in 2024.)
• $222 — Cash (As of June 30, 2025, a significant drop from $2,140 at December 31, 2024.)
• $166,977 — Accrued Royalty – Related Party (As of June 30, 2025, indicating substantial payments to SellaCare, Inc.)
• $928,776 — Accumulated Deficit (As of June 30, 2025, indicating significant historical losses.)
• 102,500,000 — Common Shares Outstanding (As of June 30, 2025, with 2,500,000 shares issued during the period.)
• 25% — Royalty Rate (Paid to SellaCare, Inc. on all Gross revenues.)
• $30,000 — Annual Rent Payments (For land lease with Sella Property, LLC.)

Key Players & Entities

• Hi-Great Group Holding Co (company) — registrant
• SellaCare, Inc. (company) — licensing agreement partner and related party
• Sella Property, LLC (company) — land lease partner and related party
• Esther Yang (person) — majority shareholder and controller of related parties
• David Lazar (person) — former President, Secretary, Treasurer, and Director
• Custodian Ventures, LLC (company) — former custodian and stock transferor
• Ho Soon Yang (person) — current Chief Financial Officer and Secretary
• Alex Jun Ho Yang (person) — current Chief Executive Officer and Board Member
• Madeline Choi (person) — former Secretary
• Jung Ho Yang (person) — related party loan provider

FAQ

Risk Factors

• Going Concern Risk [high — financial]: The company is a development stage enterprise with insufficient revenues to cover operating costs, leading to a significant net loss and a severe cash crunch. Cash balance has plummeted to $222 from $2,140 in six months.
• Dependence on Financing [high — financial]: The company relies heavily on debt and equity financing to sustain operations. The accumulated deficit stands at $928,776, indicating a history of losses and a need for continuous external funding.
• Related Party Transactions [medium — operational]: Significant royalty expenses of $166,977 are accrued from a licensing agreement with SellaCare, Inc., an entity controlled by the majority shareholder. This creates potential conflicts of interest and impacts profitability.
• Increased Operating Expenses [medium — operational]: Total operating expenses increased to $43,334 from $41,730, primarily due to higher professional fees and general and administrative expenses, further pressuring profitability.
• COVID-19 Impact [low — market]: While the direct impact on day-to-day operations has been minimal, the pandemic could affect the company's ability to enter into business combinations as other businesses adjust their activities.

Industry Context

Hi-Great Group Holding Co operates as a development stage enterprise, a segment characterized by high risk and the need for substantial capital investment. The company's financial performance is heavily influenced by its ability to secure financing and generate revenue from its nascent business activities. The broader industry context for such companies often involves intense competition for funding and a challenging path to profitability.

Regulatory Implications

As a development stage enterprise, Hi-Great Group Holding Co is subject to standard SEC reporting requirements. The company's reliance on related party transactions and its precarious financial position, including the going concern risk, may attract increased scrutiny from regulators and auditors regarding financial transparency and corporate governance.

What Investors Should Do

1. Monitor Cash Burn Rate
2. Evaluate Related Party Agreements
3. Assess Path to Profitability
4. Review Financing Strategy

Key Dates

• 2025-06-30: End of Six-Month Period — Reporting period for the 10-Q, showing significant revenue decline and widened net loss.
• 2025-03-16: Annual Rent Payment Due — Annual rent payment of $30,000 for land lease with Sella Property, LLC is due, impacting cash outflow.
• 2020-03-19: Licensing Agreement with SellaCare, Inc. — Established the 25% royalty rate on gross revenues, a significant cost impacting profitability.
• 2020-03-16: Land Lease with Sella Property, LLC — Secured property for operations with annual rent of $30,000.
• 2019-10-11: Change of Control — Esther Yang acquired 70,000,000 shares, leading to a change in control of the company.
• 2010-09-30: Company Incorporation — Hi-Great Group Holding Company was originally incorporated.

Glossary

Development Stage Enterprise

A company that has established a business plan but has not yet begun generating significant revenue or has not yet achieved profitability. (Hi-Great Group Holding Co is classified as such, indicating it is in the early stages of its business and has not yet proven its business model.)

Accumulated Deficit

The total cumulative net losses of a company since its inception, less any net gains. (Hi-Great Group Holding Co has an accumulated deficit of $928,776, highlighting its history of unprofitability.)

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least 12 months. (The company faces a going concern risk due to its financial condition, meaning there is substantial doubt about its ability to continue operating.)

Related Party Transaction

A financial transaction between entities that are controlled by the same party or parties. (Transactions with SellaCare, Inc. and Sella Property, LLC, controlled by the majority shareholder, are significant and impact the company's financials.)

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. (Gross profit decreased by 40.2% to $6,914, indicating a significant deterioration in the company's core profitability.)

Accrued Royalty – Related Party

Royalty expenses that have been incurred but not yet paid, owed to a related party. (The $166,977 accrued royalty payment to SellaCare, Inc. is a substantial liability and a significant cost.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Hi-Great Group Holding Co experienced a significant downturn compared to the prior year. Revenue dropped by 21.8% to $19,018, and the net loss widened by 25.3% to $35,982. Gross profit saw a substantial decline of 40.2%, while operating expenses increased. The company's cash position has critically deteriorated, falling from $2,140 to just $222, exacerbating its going concern risk.

Key Financial Figures

• $0 — 2025. As of June 30, 2024, a total of $0 in loan payable to related party. NOTE
• $70,000 — avid Lazar) at par for shares valued at $70,000 in exchange for settlement of a portion
• $16,100 — dvanced to the Company in the amount of $16,100, and the promissory note issued to the
• $53,900 — ote issued to the Company in the amount $53,900. On October 14, 2019, as a result of a
• $19,018 — six months ended June 30, 2025, we had $19,018 of sales compared to $24,330 for the si
• $24,330 — 25, we had $19,018 of sales compared to $24,330 for the six months ended June 30, 2024.
• $12,105 — the six months ended June 30, 2025, was $12,105 compared to $12,773 for the six months
• $12,773 — June 30, 2025, was $12,105 compared to $12,773 for the six months ended June 30, 2024.
• $23,165 — months ended June 30, 2025, we incurred $23,165 of professional fee expenses compared t
• $22,500 — f professional fee expenses compared to $22,500 for the six months ended June 30, 2024.
• $20,168 — months ended June 30, 2025, we incurred $20,168 of general and administrative expenses
• $19,230 — nistrative expenses ("G&A") compared to $19,230 for the six months ended June 30, 2024.
• $35,982 — 30, 2025, the Company had a net loss of $35,982 as compared to a net loss of $28,710 fo
• $28,710 — of $35,982 as compared to a net loss of $28,710 for the six months ended June 30, 2024.
• $928,776 — ces We have an accumulated deficit of $928,776 and had a net loss of $35,982 for the s

Filing Documents

• ea0255437-10q_higreat.htm (10-Q) — 260KB
• ea025543701ex31-1_higreat.htm (EX-31.1) — 11KB
• ea025543701ex31-2_higreat.htm (EX-31.2) — 11KB
• ea025543701ex32_higreat.htm (EX-32) — 4KB
• 0001213900-25-084241.txt ( ) — 1858KB
• higr-20250630.xsd (EX-101.SCH) — 13KB
• higr-20250630_cal.xml (EX-101.CAL) — 25KB
• higr-20250630_def.xml (EX-101.DEF) — 70KB
• higr-20250630_lab.xml (EX-101.LAB) — 147KB
• higr-20250630_pre.xml (EX-101.PRE) — 82KB
• ea0255437-10q_higreat_htm.xml (XML) — 89KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 2 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 6 Item 4.

Controls and Procedures

Controls and Procedures 6 PART II 7 Item 1.

Legal Proceedings

Legal Proceedings 7 Item 1A.

Risk Factors

Risk Factors 7 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 7 Item 3. Defaults Upon Senior Securities 7 Item 4. Mining Safety Disclosures 7 Item 5. Other Information 7 Item 6. Exhibits 7

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INDEX TO FINANCIAL STATEMENTS Balance Sheets as of June 30, 2025 (unaudited) and December 31, 202 4 F-1 F-2 F-3 F-4 Notes to the Financial Statements (unaudited) F-5 1 HI-GREAT GROUP HOLDING COMPANY BALANCE SHEETS Jun 30, Dec 31, 2025 2024 (Unaudited) (Audited) ASSETS Current assets: Cash $ 222 $ 2,140 Inventory 68,800 76,150 Advances to Suppliers - 1,750 Receivable from Citi Bank - - Total current assets 69,022 80,040 Non-current assets: Right of use asset – operating lease – related party - 6,892 Total assets $ 69,022 $ 86,932 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 88,005 $ 87,500 Accrued expenses 10,750 - Notes payable – related party - - Loan payable – related party - - Accrued royalty– related party 166,977 162,222 Deferred revenue - - Operating lease obligation, current portion – related party - - - - Total current liabilities 265,732 249,722 Non-Current Liabilities: Operating lease obligation – related party - 438 Total Liabilities 265,732 250,160 Commitments and Contingencies Stockholders' Deficit: Preferred stock, par value $ 0.001 per share; 10,000,000 shares authorized; no shares issued and outstanding Common stock, par value $ 0.001 per share; 1,100,000,000 shares authorized; 102,500,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 102,500 100,000 Additional paid in capital 629,566 629,566 Accumulated Deficit ( 928,776 ) ( 892,794 ) Total stockholders' equity ( 196,710 ) ( 163,229 ) Total liabilities and stockholders' equity $ 69,02

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS June 30, 2025 (Unaudited) NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Basis of Presentation and Organization Hi-Great Group Holding Company (the "Company") is a development stage enterprise that was originally incorporated, on September 30, 2010 , under the laws of the State of Nevada. On March 8, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for Hi-Great Group Holding Company, proper notice having been given to the officers and directors of Hi-Great Group Holding Company. There was no opposition. On March 15, 2019, the Company filed a certificate of revival with the state of Nevada, appointing David Lazar as President, Secretary, Treasurer and Director. On October 11, 2019, Custodian Ventures entered into a stock purchase agreement whereby they transferred 70,000,000 shares of common stock to Esther Yang in exchange for $ 225,000 in cash. As a result of the sale, there was a change of control of the Company. There is no family relationship or other relationship between the Seller and the Purchaser. On March 19, 2020, the Company entered in a licensing agreement with SellaCare, Inc. for the licensing of Patents and all future products developed by the SellaCare, Inc. The licensing agreement calls for the Company to pay 25 % of all Gross revenues or $ 1,000 , whichever is greater and not less than $ 1,000 , beginning April 30, 2020 and payable the 15 th of every month thereafter. On March 16, 2020, the Company entered into a land lease for property located in the unincorporated area of Pearblossom, County of Los Angeles, California, in agreement with Sella Property, LLC. Sella Property, LLC is an entity controlled by Esther Yang. The lease calls for rent payments of $ 30,000 in annual installments due on the 16 th day of March each year. In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a pandemic, and it continues to spread

MANAGEMENT'S DISCUSSION AND ANALYSIS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following information should be read in conjunction with our financial statements and related notes thereto included in Part I, Item 1, above.

Forward Looking Statements

Forward Looking Statements Certain matters discussed herein are forward-looking our future strategic plans; our future operating results; our business prospects; our contractual arrangements and relationships with third parties; the dependence of our future success on the general economy; our possibility of not successfully raising future financings; and the adequacy of our cash resources and working capital. These forward-looking statements can generally be identified as such because the context of the statement will include words such as we "believe," "anticipate," "expect," "estimate" or words of similar meaning. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which are described in close proximity to such statements, and which could cause actual results to differ materially from those anticipated. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this Form 10-Q, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Executive Overview Hi-Great Group Holding Company (the "Company") is a development stage enterprise that was originally incorporated, on September 30, 2010, under the laws of the State of Nevada. On March 8, 2019, the eight judicial District Court of Nevada appointed Custodian Ventures, LLC as custodian for Hi-Great Group Holding Company, proper notice having been given to the officers and directors of Hi-Great Group Holding Company. There was no o

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