ESG Inc. Files Q2 2025 10-Q

TL;DR

ESG Inc. 10-Q filed for Q2 2025. Financials out.

AI Summary

ESG Inc. filed its 10-Q for the period ending June 30, 2025, reporting on its financial performance. The company, formerly known as PLASMA INNOVATIVE INC., is incorporated in Nevada and operates in Agriculture Production - Crops. Its principal business address is in Kennett Square, PA.

Why It Matters

This filing provides investors with ESG Inc.'s financial health and operational updates for the second quarter of 2025, crucial for investment decisions.

Risk Assessment

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

Key Numbers

• Q2 2025 — Reporting Period (The financial results cover the second quarter of 2025.)
• 20250630 — Period End Date (The financial statements are as of this date.)
• 20250815 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• ESG Inc. (company) — Filer of the 10-Q
• PLASMA INNOVATIVE INC. (company) — Former name of ESG Inc.
• 20250630 (date) — End of the reporting period
• 20250815 (date) — Filing date
• Kennett Square, PA (location) — Business and mailing address

FAQ

Key Financial Figures

• $1,116,689 — FP and SME Guarantee Corporation. (5) $1,116,689 and $1,096,206 of loans from Bank of Ch
• $1,096,206 — antee Corporation. (5) $1,116,689 and $1,096,206 of loans from Bank of China were pledge
• $420,067 — d in 2019. The payment of approximately $420,067 was posted under the wrong supplier acc
• $1,450,405 — lowing: accounts payable decreased from $1,450,405 to $ 1,300,676 , the accumulated defici
• $1,224,811 — the accumulated deficit decreased from $1,224,811 to $ 1,113,233 and noncontrolling inter
• $3,274,308 — noncontrolling interest increased from $3,274,308 to $ 3,312,459 . The Company assessed t

Filing Documents

• esgh-20250630_10q.htm (10-Q) — 627KB
• esgh-20250630_10qex31z1.htm (EX-31) — 12KB
• esgh-20250630_10qex32z1.htm (EX-32) — 5KB
• 0001520138-25-000260.txt ( ) — 3176KB
• esgh-20250630.xsd (EX-101.SCH) — 23KB
• esgh-20250630_cal.xml (EX-101.CAL) — 42KB
• esgh-20250630_def.xml (EX-101.DEF) — 51KB
• esgh-20250630_lab.xml (EX-101.LAB) — 175KB
• esgh-20250630_pre.xml (EX-101.PRE) — 133KB
• esgh-20250630_10q_htm.xml (XML) — 580KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 1 Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024(Unaudited) 3 Consolidated Statements of Cash Flows for the Six Months ended June 30, 2025 and 2024 (Unaudited) 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 17 Item 4.

Controls and Procedures

Controls and Procedures 17 PART II OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Submission of Matters to a Vote of Securities Holders 19 Item 5. Other Information 19 Item 6. Exhibits 19

Signatures

Signatures 21 1 Printer to update

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. ESG INC. Consolidated Balance Sheet ( Unaudited) June 30, December 31, 2025 2024 Assets Current Assets Cash $ 129,372 $ 110,343 Restricted cash - 56,398 Accounts receivable 3,637,675 2,917,093 Inventories 2,114,503 2,906,383 Other receivable 277,984 245,232 Advance to suppliers 494,520 736,094 Total Current Assets 6,654,054 6,971,543 Property, plant and equipment, net 16,815,744 17,184,192 Intangible assets, net 2,954,995 2,934,213 Value added tax receivable 2,872,675 2,704,109 Total Non-current Assets 22,643,414 22,822,514 Total Assets $ 29,297,468 $ 29,794,057 Liabilities and Shareholders' Equity Current Liabilities Short-term bank loans $ 6,002,150 $ 5,988,024 Account payable 1,494,224 4,604,011 Accrued expenses and other current liabilities 4,800,392 3,092,953 Deferred income, current 113,704 121,897 Total Current liabilities 12,410,470 13,684,988 Bank loans Deferred income 1,051,664 1,073,487 Long-term payable 1,031,438 1,095,690 Total Non-current liabilities 2,083,102 2,169,177 Total Liabilities 14,493,572 15,854,164 Commitments and Contingencies Shareholders' Equity Common stock 25,900 25,900 Additional paid in capital 11,152,388 11,152,388 Accumulated comprehensive income (loss) ( 289,746 ) ( 711,270 ) Accumulated deficit 136,290 ( 168,600 ) Total Company stockholders' Equity 11,024,832 10,298,418 Noncontrolling interest 3,779,064 3,519,577 Total Equity 14,803,896 13,817,995 Total Liabilities and Stockholders' Equity $ 29,297,468 $ 29,794,057 The accompanying notes are an integral part of these consolidated financial statements. 1 ESG INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues $ 2,490,036 $ 2,509,781 $ 4,077,180 $ 4,888,062 Cost of

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025 2 (Unaudited) Note 1 – Summary of Significant Accounting Policies Basis of Presentation and Preparation The consolidated financial statements include the accounts of ESG Inc. and its wholly owned subsidiaries (collectively "ESG" or the "Company"). In the opinion of the Company's management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles ("GAAP") requires the use of management estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company's annual consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 Form 10-K"). Note 2 – Going Concern The accompanying consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As of June 30, 2025, the Company had limited cash and working capital deficiency of $ 5,756,417 . These factors, among others, raise the substantial doubt about the Company's ability to continue as a going concern. These consolidated

financial statements do not include any adjustments that may result from the outcome of these uncertainties

financial statements do not include any adjustments that may result from the outcome of these uncertainties. The working capital deficiency was primarily caused by bank loans and payables. The bank loans had total balance of $ 6,002,150 , and all the bank loans need to be renewed yearly and classified as current liabilities. Management is working to replace current bank loans with long-term loans to improve our capital structure. However, there is no assurance that all management's plans will be successful. In addition, the Company had $ 2,872,675 of value added tax receivable which was classified as non-current assets as of June 30, 2025, the Company filed application for a tax refund in May, 2025 to enhance our liquidity. Note 3 – Revenue Net sales disaggregated by significant products for the three and six months ended June 30, 2025 and 2024 were as follows: Schedule of disaggregation of revenue Three Month Ended % of Total Revenue Geographic Products June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 China, mainland Compost III $ 490,980 $ 992,593 19.7 % 39.5 % China, mainland White Button Mushroom 887,923 1,517,188 35.7 % 60.5 % China, Hongkong Mushroom powder seasonings 1,111,133 - 44.6 % - Total Total net sales $ 2,490,036 $ 2,509,781 - - 1 Printer to add. 5 Six Month Ended % of Total Revenue Geographic Products June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 China, mainland Compost III $ 602,758 $ 1,686,078 31.4 % 34.5 % China, mainland White Button Mushroom 1,281,571 3,201,984 14.8 % 65.5 % China, Hongkong Mushroom powder seasonings 2,192,851 - 53.8 % - Total Total net sales $ 4,077,180 $ 4,888,062 - - Note 4 – Concentration Customer The Company had two customers that individually represented 10% or more of total sales, which accounted for 53.8 % and 17.2 % for the six months ended June 30, 2025. For the year ended December 31, 2025, there were 5 custome

Management's Discussion and Analysis of Financial

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q (this "Form 10-Q") for the quarterly period ended June 30, 2025, as well as the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 filed by the Company with the U.S. Securities and Exchange Commission (the "SEC") on April 15, 2025 (the "2024 Form 10-K"). Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks, uncertainties and assumptions. You should read the "Forward-Looking Statements" and "Risk Factors" sections of this Form 10-Q and our 2024 Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements.

Forward-Looking Statements

Forward-Looking Statements This Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this report other than statements of historical fact, including statements regarding our business plans and strategies; projections of revenues, expenses, profitability or cash flows; expectations regarding plant expansions, new product development and processing capabilities; the impact of government policies, subsidies or tax incentives; and anticipated benefits of our composting and mushroom-processing initiatives, are forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "seek," "target," "will," "would" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on management's current beliefs and assumptions and on information currently available to us, but involve a number of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those set forth in or implied by such statements. Important factors that could cause actual results to differ include, but are not limited to, the following (see "Risk Factors" in Part II, Item 1A of our 2024 Form 10-K for further discussion): recent shifts in U.S. and international trade policies—especially those affecting China—may increase tariffs or investment restrictions and adversely impact our supply chain, financing and operating results. the impact of contagious-disease outbreaks (e.g., COVID-19 or future epidemics) on our operations, supply chains and customers; our dependence on a small number of large distributors and processors in China; our ability to comply with PRC food-safety, environmental, composting and export regulations and to maintain all necessary licenses and permits; Lack of diversification in our business via a reliance on fresh w

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