ESG Inc. Files Q2 2024 10-Q

TL;DR

ESG Inc. 10-Q filed for Q2 2024. Financials updated.

AI Summary

ESG Inc. filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The company, formerly known as PLASMA INNOVATIVE INC., is incorporated in Nevada and operates in the biological products sector. Its principal executive offices are located at 523 School House Rd, Kennett Square, PA.

Why It Matters

This filing provides investors with an update on ESG Inc.'s financial health and operational status for the second quarter of 2024, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant negative news.

Key Players & Entities

• ESG Inc. (company) — Filer of the 10-Q
• PLASMA INNOVATIVE INC. (company) — Former name of ESG Inc.
• 20240630 (date) — End of the reporting period
• 20240802 (date) — Filing date
• 523 SCHOOL HOUSE RD (address) — Business and mailing address
• KENNETT SQUARE (location) — City of business and mailing address
• PA (location) — State of business and mailing address
• 19348 (postal_code) — ZIP code of business and mailing address

FAQ

Filing Documents

• esgh-20240630_10q.htm (10-Q) — 535KB
• esgh-20240630_ex31z1.htm (EX-31.1) — 11KB
• esgh-20240630_ex32z1.htm (EX-32.1) — 5KB
• image_01.jpg (GRAPHIC) — 61KB
• 0001520138-24-000258.txt ( ) — 3872KB
• esgh-20240630.xsd (EX-101.SCH) — 37KB
• esgh-20240630_cal.xml (EX-101.CAL) — 59KB
• esgh-20240630_def.xml (EX-101.DEF) — 91KB
• esgh-20240630_lab.xml (EX-101.LAB) — 244KB
• esgh-20240630_pre.xml (EX-101.PRE) — 202KB
• esgh-20240630_10q_htm.xml (XML) — 499KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 1 2 3 4 Notes to the Unaudited Financial Statements 5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 14 Item 4.

Controls and Procedures

Controls and Procedures 14 PART II OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 14 Item 1A

Risk Factors

Risk Factors 14 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14 Item 3. Defaults Upon Senior Securities 14 Item 4. Submission of Matters to a Vote of Securities Holders 15 Item 5. Other Information 15 Item 6. Exhibits 15

Signatures

Signatures 16 -i-

Financial Information

Part I. Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) ESG INC. Consolidated Balance Sheet June 30, 2024 (Unaudited) December 31, 2023 ASSETS Current Assets Cash 135,223 342,342 Accounts receivable and other receivables 149,360 79,221 Advance to suppliers 1,425,950 166,010 Inventaries 2,173,954 1,651,376 Total Current Assets 3,884,487 2,238,949 Property, plant and equipment, net 17,763,242 18,694,969 Intangible assets, net 2,997,136 3,085,906 Value added tax receivable 2,267,926 2,211,980 Note receivable - 41,848 Total Non-current Assets 23,028,304 24,034,703 Total Assets 26,912,791 26,273,652 LIABILITIES AND EQUITY Currrent Liabilities Short-term bank loans 6,877,941 6,904,228 Account payable 3,012,362 1,450,405 Payable to related party 30,000 Accrued expenses and other liabilities 2,536,454 2,312,772 Deferred revenue 1,263,353 1,355,552 Total Current Liabilities 13,690,110 12,052,957 Long-term payable 1,331,190 1,423,116 Total Non-current liabilities 1,331,190 1,423,116 Total Liabillities 15,021,300 13,476,073 Shareholders' Equity (Deficit) Common stock, $ 0.001 par value, 65,000,000 authorized, 25,899,468 issued and outstanding as of June 30, 2024 and December 31,2023. 25,900 25,900 Additional paid in capital 11,152,388 11,152,388 Accumulated comprehensive income (loss) ( 597,819 ) ( 430,206 ) Accumulated deficit ( 1,731,131 ) ( 1,224,811 ) Equity Attributable to stockholders of ESG Inc. 8,849,338 9,523,271 Equity attributable to noncontrolling interest 3,042,153 3,274,308 Total Equity 11,891,491 12,797,579 Total Liabilities and Stockholders' Equity 26,912,791 26,273,652 -1- ESG INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenues 2,509,781 3,632,544 4,888,062 5,440,863 Cost of goods sold 2,077,594 2,929,277 4,546,508 4,3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (Unaudited) NOTE 1- ORGANIZATION AND DESCRIPTION OF BUSINESS ESG Inc. ("ESG") was incorporated in July 2021, a Nevada corporation and headquartered at Kennett Square, Pennsylvania, USA, and is a holding company without operations and is engaged in food production and distribution through its subsidiaries. ESG incorporated ESG China Limited as ESG's wholly owned subsidiary in Hong Kong on November 18, 2022. ESG China Limited incorporated Hainan ESG Technology Co., Ltd., a China corporation ("Hainan ESG") with 100 % of ownership on January 16, 2023. ESG, ESG China Limited and Hainan ESG have no operations or transactions. On September 28, 2023, ESG entered into a share exchange agreement with Funan Allied United Farmer Products Co., Ltd., a China corporation incorporated in May 2017 ("AUFP"), and 74.52% of shareholders of AUFP, (each a "Shareholder," and collectively, the "Shareholders"), through Hainan ESG. Pursuant to such agreement, the Shareholders exchanged their equity of AUFP to Hainan ESG for shares of common stock of ESG, and ESG has agreed to offer 10,432,800 of ESG shares. Following this transaction, AUFP became a 74.52 % subsidiary of ESG through Hainan ESG. AUFP incorporated Anhui Allied United Mushroom Technology Co., Ltd. ("AUMT") in China in March 2018, to manufacture white button mushroom compost while AUFP incorporated Anhui Allied United Mushroom Co., Ltd. ("AUM") in China in April, 2018, to grow fresh white button mushroom and provide mushroom growing management services. AUFP, AUMT and AUM are operating entities in China. Prior to the share exchange, Mr. Zhi Yang owned 30 % of AUFP, Fuyang Zhihan Agricultural Information Co. Ltd. ("Zhihan") owned 24.52 % of AUFP and Mr. Chris Alonzo owned 10 % of AUFP. ESG, after the share exchange agreement described above is completed, owns 74.52 % of AUFP and its subsidiaries, AUM and AUMT in China. Currently Mr. Zhi Yang and Zhihan contro

financial statements of the Company

financial statements of the Company. Our operating subsidiaries are involved in direct white button mushroom composting, growing, food production, distribution as well as import and export of Phase III compost and food to strategize. With the core business philosophy to develop and operate sustainable and technology-driven food businesses consistent with the principles of Environmental, Sustainable and Governance investing, we believe that the growing global demand for sustainable high quality food presents a unique opportunity to operate companies engaged in this critical area that is being paid increasing attention by global investors. -5- NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and include all adjustments necessary for the fair presentation of the Company's financial position for the periods presented. The consolidated financial statements of the Company include the financial statements of the Company and its 74.52 % owned subsidiaries in China. All inter-company transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation. The Equity attributable to minority shareholders who own 25.48 % of AUFP and its subsidiaries are non-controlling interest ("NCI"). The NCI were $ 3,042,153 and $ 3,274,308 as of June 30, 2024 and December 31, 2023, respectively. Interim Financial Information The unaudited financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) applicable to interim financial information and the requirements of Form 10-Q and Rule 8-03 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosure required by accounting principles generally accepted in the United

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