Hi-Great Group's Sales Plunge 38%, Net Loss Widens Amid Going Concern Warning

TL;DR

**HIGR is a burning cash pile with plummeting sales and a going concern warning; steer clear.**

AI Summary

Hi-Great Group Holding Co (HIGR) reported a significant decline in financial performance for the nine months ended September 30, 2025, with sales plummeting to $34,518 from $55,700 in the prior year, representing a 38% decrease. The company's net loss widened to $44,268 for the nine-month period, compared to a net loss of $43,006 in the same period of 2024. Gross profit also fell sharply to $13,854 from $27,675 year-over-year. Operating expenses remained high at $58,559, contributing to an operating loss of $44,706. Cash at the end of the period increased to $7,986 from $232, primarily due to cash provided by investing activities of $6,892 and financing activities of $2,062, including the issuance of 2,500,000 common shares for $2,500. 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.

Why It Matters

HIGR's continued significant losses and reliance on external financing signal high risk for investors, indicating a lack of sustainable business operations. The substantial decline in sales and widening net loss, coupled with a 'going concern' warning, suggest that the company is struggling to establish a viable business model in the competitive agritourism and herbal supplement markets. Employees face uncertainty regarding job security, and customers might question the long-term availability of products from a company in such a precarious financial state. The competitive landscape, particularly with related-party transactions like the SellaCare licensing agreement, raises questions about fair market dealings and potential conflicts of interest.

Risk Assessment

Risk Level: high — HIGR explicitly states it has 'not yet established an ongoing source of revenues sufficient to cover its operating costs' and is 'dependent on debt and equity financing to fund its operations,' indicating a significant going concern risk. The net loss of $44,268 for the nine months ended September 30, 2025, and total liabilities of $277,282 against total assets of $72,286 further underscore its precarious financial position.

Analyst Insight

Investors should avoid HIGR given its development stage, consistent losses, and explicit going concern warning. The company's inability to generate sufficient revenue to cover operating costs and its reliance on external financing make it a highly speculative investment with substantial downside risk.

Financial Highlights

debt To Equity

N/A

revenue

$34,518

operating Margin

N/A

total Assets

$72,286

total Debt

$277,282

net Income

-$44,268

eps

N/A

gross Margin

40.1%

cash Position

$7,986

revenue Growth

-38.0%

Revenue Breakdown

Key Numbers

• $34,518 — Sales (for the nine months ended September 30, 2025, down from $55,700 in 2024)
• $44,268 — Net Loss (for the nine months ended September 30, 2025, widened from $43,006 in 2024)
• $13,854 — Gross Profit (for the nine months ended September 30, 2025, down from $27,675 in 2024)
• $58,559 — Total Operating Expense (for the nine months ended September 30, 2025)
• $7,986 — Cash (as of September 30, 2025, up from $2,140 as of December 31, 2024)
• $171,037 — Accrued Royalty – related party (as of September 30, 2025, paid to SellaCare, Inc.)
• 102,500,000 — Common Shares Outstanding (as of December 1, 2025)
• $277,282 — Total Liabilities (as of September 30, 2025)
• $72,286 — Total Assets (as of September 30, 2025)
• $2,500 — Issuance of Common Stock (cash provided by financing activities for 2,500,000 shares)

Key Players & Entities

• Hi-Great Group Holding Company (company) — registrant
• Esther Yang (person) — majority shareholder and former director
• SellaCare, Inc. (company) — related party for licensing agreement and product supply
• Sella Property, LLC (company) — related party for land lease
• David Lazar (person) — former President, Secretary, Treasurer and Director
• Ho Soon Yang (person) — President, CEO, CFO, Treasurer, Secretary and Chairman of the Board
• Alex Jun Ho Yang (person) — Chief Executive Officer and Board Member
• Madeline Choi (person) — Secretary to the Company and recipient of common stock
• Custodian Ventures, LLC (company) — former custodian and common stock issuer
• Globex Transfer, LLC (company) — vendor awarded common stock for services

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 widening net loss of $44,268 for the nine months ended September 30, 2025. This raises substantial doubt about its ability to continue as a going concern.
• Declining Sales and Gross Profit [high — financial]: Sales have plummeted by 38% to $34,518 for the nine months ended September 30, 2025, from $55,700 in the prior year. Gross profit also fell by 50% to $13,854 from $27,675, indicating significant operational challenges.
• High Operating Expenses [medium — operational]: Total operating expenses remained high at $58,559 for the nine months ended September 30, 2025, contributing to an operating loss of $44,706. This indicates a lack of cost control or an inability to scale operations efficiently.
• Dependence on Financing [medium — financial]: The company relies heavily on debt and equity financing, as evidenced by the issuance of 2,500,000 common shares for $2,500 and an increase in total liabilities to $277,282. This dependence creates vulnerability to market conditions and investor sentiment.
• Related Party Transactions [medium — financial]: Significant amounts are owed for accrued royalties to SellaCare, Inc. ($171,037) and a land lease to Sella Property, LLC, an entity controlled by Esther Yang. These related party transactions require careful scrutiny for fairness and potential conflicts of interest.

Industry Context

Hi-Great Group Holding Co operates as a development stage enterprise, suggesting it is in a nascent phase within its industry. The company's financial struggles, characterized by declining sales and widening losses, indicate a challenging competitive landscape or an inability to gain market traction. Its reliance on financing and related-party transactions further suggests a potentially less established position compared to more mature industry players.

Regulatory Implications

As a development stage enterprise, Hi-Great Group Holding Co is subject to standard SEC reporting requirements. The company's financial instability and going concern risk may attract increased scrutiny from regulators and auditors. The nature of its related-party transactions also necessitates careful adherence to disclosure and corporate governance regulations to avoid potential conflicts of interest.

What Investors Should Do

1. Monitor closely for any signs of operational improvement or strategic shifts.
2. Evaluate the sustainability of the business model given the persistent operating losses.
3. Scrutinize all related-party transactions for fairness and potential conflicts of interest.
4. Assess the company's ability to secure future financing.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported a 38% decrease in sales and a widened net loss, highlighting significant financial deterioration.
• 2025-12-31: Balance Sheet as of December 31, 2024 — Provided a baseline for comparison, showing total assets of $86,932 and total liabilities of $250,160.
• 2024-09-30: Nine months ended September 30, 2024 — Reported sales of $55,700 and a net loss of $43,006, serving as the prior period comparison.
• 2020-03-19: Licensing Agreement with SellaCare, Inc. — Established a royalty payment structure (25% of gross revenues or $1,000 minimum) which contributes to related party liabilities.
• 2020-03-16: Land Lease with Sella Property, LLC — Incurred annual rent payments of $30,000, with Sella Property, LLC controlled by Esther Yang, a significant shareholder.

Glossary

Development Stage Enterprise

A company that is devoting substantially all of its efforts to establishing a new business and has either no substantial operations or has generated little revenue. (Hi-Great Group Holding Co is classified as such, indicating it is in the early stages of business development and has not yet achieved significant operational scale or profitability.)

Accumulated Deficit

The cumulative net losses of a company since its inception, minus any net gains. (The company has a substantial accumulated deficit of ($937,062) as of September 30, 2025, reflecting its history of losses.)

Going Concern

The assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. (The company's financial condition raises substantial doubt about its ability to continue as a going concern, a critical risk for investors.)

Accrued Royalty – related party

Royalties owed to a related party that have been incurred but not yet paid. (This represents a significant liability of $171,037 owed to SellaCare, Inc., impacting the company's cash flow and financial obligations.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Hi-Great Group Holding Co has experienced a significant downturn. Sales have fallen by 38% from $55,700 to $34,518, and gross profit has been halved from $27,675 to $13,854. The net loss has widened from $43,006 to $44,268, and total operating expenses, while lower than the prior year's $71,574, remain substantial at $58,559, contributing to an operating loss. The company's cash position has improved to $7,986 from $2,140, largely due to financing activities, but this masks the underlying operational deterioration and the increased total liabilities to $277,282.

Key Financial Figures

• $740 — As of September 30, 2025, a total of $740 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
• $34,518 — months ended September 30, 2025, we had $34,518 in sales compared to $55,700 for the ni
• $55,700 — 25, we had $34,518 in sales compared to $55,700 for the nine months ended September 30,
• $13,854 — ne months ended September 30, 2025, was $13,854 compared to $27,675 for the nine months
• $27,675 — ember 30, 2025, was $13,854 compared to $27,675 for the nine months ended September 30,
• $32,015 — s ended September 30, 2025, we incurred $32,015 in professional fee expenses compared t
• $42,600 — n professional fee expenses compared to $42,600 for the nine months ended September 30,
• $19,654 — s ended September 30, 2025, we incurred $19,654 in general and administrative expenses
• $8,301 — nistrative expenses ("G&A") compared to $8,301 for the nine months ended September 30,
• $44,268 — 30, 2025, the Company had a net loss of $44,268 as compared to a net loss of $43,006 fo
• $43,006 — of $44,268 as compared to a net loss of $43,006 for the nine months ended September 30,
• $937,062 — ces We have an accumulated deficit of $937,062 and had a net loss of $44,268 for the n

Filing Documents

• ea0267800-10q_higreat.htm (10-Q) — 245KB
• ea026780001ex31-1_higreat.htm (EX-31.1) — 11KB
• ea026780001ex31-2_higreat.htm (EX-31.2) — 11KB
• ea026780001ex32_higreat.htm (EX-32) — 5KB
• 0001213900-25-121468.txt ( ) — 1834KB
• higr-20250930.xsd (EX-101.SCH) — 13KB
• higr-20250930_cal.xml (EX-101.CAL) — 25KB
• higr-20250930_def.xml (EX-101.DEF) — 72KB
• higr-20250930_lab.xml (EX-101.LAB) — 147KB
• higr-20250930_pre.xml (EX-101.PRE) — 83KB
• ea0267800-10q_higreat_htm.xml (XML) — 80KB

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 September 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 Sep 30, Dec 31, 2025 2024 (Unaudited) (Audited) ASSETS Current assets: Cash $ 7,986 $ 2,140 Inventory 64,300 76,150 Advances to Suppliers - 1,750 Receivable from Citi Bank - - Total current assets 72,286 80,040 Non-current assets: Right of use asset – operating lease – related party - 6,892 Total assets $ 72,286 $ 86,932 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 88,005 $ 87,500 Accrued expenses 17,500 - Notes payable – related party - - Loan payable – related party 740 - Accrued royalty– related party 171,037 162,222 Deferred revenue - - Operating lease obligation, current portion – related party - - - - Total current liabilities 277,282 249,722 Non-Current Liabilities: Operating lease obligation – related party - 438 Total Liabilities 277,282 250,160 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; 100,000,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 102,500 100,000 Additional paid in capital 629,566 629,566 Accumulated Deficit ( 937,062 ) ( 892,794 ) Total stockholders' equity ( 204,996 ) ( 163,229 ) Total liabilities and

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS September 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 s

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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