Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | Hi-Great Group Holding Co |
Document Type | 10-Q/A |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 100,000,000 |
Amendment Flag | true |
Amendment Description | Amendment No 1 |
Entity Central Index Key | 0001807616 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Period End Date | Mar. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity File Number | 000-56200 |
Entity Incorporation, State or Country Code | NV |
Entity Interactive Data Current | No |
Entity Tax Identification Number | 46-2218131 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash | $ 54,744 | $ 24,041 |
Inventory | 16,560 | 47,760 |
Deferred cost of good sols | ||
Total current assets | 71,304 | 71,801 |
NON-CURRENT ASSETS: | ||
Right of use asset – operating lease – related party | 120,111 | 126,250 |
TOTAL ASSETS | 191,415 | 198,051 |
CURRENT LIABILITIES: | ||
Accounts payable | 50,500 | 22,200 |
Accounts payable – related party | 25,353 | 28,750 |
Notes payable – related party | 15,000 | 15,000 |
Loan payable - related party | 2,465 | 2,465 |
Accrued royalty- related party | 53,365 | 44,891 |
Accrued interest | 901 | 714 |
State Income Tax Payable | 800 | 800 |
Total current liabilities | 148,384 | 114,820 |
NON-CURRENT LIABILITIES: | ||
Operating lease obligation – related party | 93,508 | 96.250 |
TOTAL LIABILITIES | 241,892 | 211,070 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $0.001 per share; 1,100,000,000 shares authorized; 100,000,000 shares issued and outstanding | 100,000 | 100,000 |
Additional paid in capital | 619,566 | 619,566 |
Accumulated deficit | (770,043) | (732,584) |
Total stockholders’ deficit | (50,477) | (13,018) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 191,415 | $ 198,051 |
Balance Sheets (Parentheticals)
Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 |
Common stock, shares issued | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 100,000,000 | 100,000,000 |
Statement of Operations (Unaudi
Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 57,590 | $ 18,750 |
Cost of sales - royalty- related party | 14,358 | 4,688 |
Cost of goods sales | 25,316 | 6,640 |
Gross margin | 17,916 | 7,422 |
Operating expenses: | ||
Professional fees | 16,500 | 18,500 |
Rent expense | 30,000 | 30,000 |
General and administrative expenses | 7,767 | 2,145 |
Total operating expense | 54,267 | 50,645 |
Loss from operations | (36,351) | (43,223) |
Other income (expense): | ||
Interest income | ||
Interest expense | (188) | (151) |
Total other income (expense) | (188) | (151) |
Net loss | $ (36,539) | $ (43,374) |
Net loss per common share – basic and diluted (in Dollars per share) | $ 0 | $ 0 |
Weighted average common shares outstanding – basic and diluted (in Shares) | 100,000,000 | 100,000,000 |
Statements of Stockholders_ Def
Statements of Stockholders’ Deficit (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at beginning at Dec. 31, 2018 | $ 30,000 | $ 671,866 | $ (701,866) | |
Balance at beginning (in Shares) at Dec. 31, 2018 | 30,000,000 | |||
Common stock issued to related party | $ 70,000 | 70,000 | ||
Common stock issued to related party (in Shares) | 70,000,000 | |||
Forgiveness of notes and interest receivable – related party | (56,809) | (56,809) | ||
Forgiveness of loan payable – related party | 4,509 | 4,509 | ||
Net loss | (17,936) | (17,936) | ||
Balance at ending at Dec. 31, 2019 | $ 100,000 | 619,566 | (719,802) | (236) |
Balance at ending (in Shares) at Dec. 31, 2019 | 100,000,000 | |||
Net loss | (13,702) | (13,702) | ||
Balance at ending at Dec. 31, 2020 | $ 100,000 | 619,566 | (733,504) | (13,018) |
Balance at ending (in Shares) at Dec. 31, 2020 | 100,000,000 | |||
Net loss | (36,540) | (36,540) | ||
Balance at ending at Mar. 31, 2021 | $ 100,000 | $ 619,566 | $ (770,044) | $ (50,477) |
Balance at ending (in Shares) at Mar. 31, 2021 | 100,000,000 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (36,539) | $ (43,374) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | 23,228 | |
Amortization of right of use asset – operating lease | ||
Changes in assets and liabilities: | ||
Inventory | 31,200 | (258) |
Deferred Cost of Goods Sold | (2,800) | |
Accounts payable – related party | 28,300 | 38,000 |
Accrued royalty | 8,475 | 4,688 |
Accrued interest | 188 | (151) |
Deferred Revenue | 7,040 | |
Operating Lease Obligation (Current Portion) | (3,397) | 105,764 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 28,227 | 132,137 |
INVESTING ACTIVITIES: | ||
Notes receivable – related party | ||
Right of Use Asset – Related Party | 6,139 | (128,992) |
NET CASH USED IN INVESTING ACTIVITIES | 6,139 | (128,992) |
FINANCING ACTIVITIES: | ||
Proceeds from common stock – related party | ||
Proceeds from related party notes payable | 10,000 | |
Operating Lease Obligation | (2,742) | |
Retained Earnings | (920) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | (3,662) | 10,000 |
NET INCREASE IN CASH | 30,703 | 13,145 |
CASH – BEGINNING OF PERIOD | 24,041 | 7,229 |
CASH – END OF PERIOD | 54,744 | 20,374 |
Non-cash investing and financing activities: | ||
Note receivables-related party | ||
Common stock-related party | ||
Right of use asset – operating lease | $ (128,992) |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization and Description of Business [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 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 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 In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a pandemic, and it continues to spread throughout the United States and the rest of the world with different geographical locations impacted more than others. The outbreak of COVID-19 and public and private sector measures to reduce its transmission, such as the imposition of social distancing and orders to work-from-home, stay-at-home and shelter-in-place, have had a minimal impact on our day to day operations. However, this could impact our efforts to enter into a business combination as other businesses have had to adjust, reduce or suspend their operating activities. The extent of the impact will vary depending on the duration and severity of the economic and operational impacts of COVID-19. The Company is unable to predict the ultimate impact at this time. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited financial statements are prepared on the basis of accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. The Company is a development stage enterprise devoting substantial efforts to establishing a new business, financial planning, raising capital, and research into products which may become part of the Company’s product portfolio. The Company has not realized significant sales through since inception. A development stage company is defined as one in which all efforts are devoted substantially to establishing a new business and, even if planned principal operations have commenced, revenues are insignificant. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates Cash and Cash Equivalents For purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents. Reclassifications Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the three months ended March 31, 2021. Revenue Recognition The Company records revenue in accordance with FASB Accounting Standards Codification (“ASC”) as topic 606 (“ASC 606”). The revenue recognition standard in ASC 606 outlines a single comprehensive model for recognizing revenue as performance obligations, defined in a contract with a customer as goods or services transferred to the customer in exchange for consideration, are satisfied. The standard also requires expanded disclosures regarding the Company’s revenue recognition policies and significant judgments employed in the determination of revenue. The Company is involved in Agritourism and sells herbal supplements. The Company sells herbal supplements it buys directly from SellaCare, Inc. and sells those supplements using the SellaCare brand. SellaCare, Inc is a company that is controlled by the Company’s majority shareholder. Cost of Goods Sold Cost of sales includes all direct expenses incurred to produce the revenue for the period. This includes, but is not limited to, product cost and shipping. Cost of goods sold are recorded in the same period as the resulting revenue. The company pays a sales based royalty payment of 25% of gross revenue to SellaCare, Inc., its related party. This royalty expense is included in cost of goods sold. Leases The Company adopted the new lease accounting standard, “Accounting Standards Codification Topic 842 Leases (ASC 842)” using the modified retrospective basis for all agreements existing as of January 1, 2019 as described further below under Accounting Standards Adopted The Company recognizes a right-of-use asset and lease liability for all financing and operating leases with terms greater than twelve months. The lease liability is measured based on the present value of the lease payments not yet paid. The right-of-use asset is measured based on the initial measurement of the lease liability adjusted for any direct costs incurred upon commencement of the lease. The right-of-use assets are amortized on a straight-line basis over the lease term, and are tested for impairment in a manner consistent with the other long-lived assets held by the Company. Adoption of Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2021 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 3 – GOING CONCERN The accompanying financial statements have been prepared assuming the continuation of the Company as a going concern. The Company 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. Management of the Company is making efforts to raise additional funding until a registration statement relating to an equity funding facility is in effect. While management of the Company believes that it will be successful in its capital formation and planned operating activities, there can be no assurance that the Company will be able to raise additional equity capital or be successful in the development and commercialization of the products it develops or initiates collaboration agreements thereon. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 – RELATED PARTY TRANSACTIONS On December 27, 2019, the company obtained a loan in the amount of $5,000 from Jung Ho Yang. The note bears an interest rate of 5% and matures on November 30, 2020. As of March 31, 2021, there is $190 of interest accrued on this note. On January 28, 2020, the company obtained a loan in the amount of $10,000 from Sellacare America, Inc. The note bears an interest rate of 5% and matures on November 30, 2020 As of March 31, 2021, there is $188 of interest accrued on this note. 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 On March 16, 2020, the Company entered into a land lease for property located in the unincorporated area in Pearblossom, County of Los Angeles, California, in agreement with Sella Property, LLC. Sella Property, LLC is an entity controlled by Company’s majority shareholder. The lease calls for rent payments of $30,000 in annual installments due on the 16 th As of March 31, 2021, there is a $400 in loan payable to Esther Yang and $2,065 due to another related party. |
Lease Obligation
Lease Obligation | 3 Months Ended |
Mar. 31, 2021 | |
Leases, Operating [Abstract] | |
LEASE OBLIGATION | NOTE 5 – LEASE OBLIGATION On February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The ASU introduces a new leasing model for both lessees and lessors. Topic 842 provides guidance in how to identify whether a lease arrangement exists. Management has evaluated its leasing arrangement and has classified it as operating lease. Operating Lease Obligations On March 16, 2020, the Company entered into a land lease for property located in the unincorporated area Pearblossom, County of Los Angeles, State of California.in agreement with Sella Property, LLC. Sella Property, LLC is a company controlled by the majority shareholder of the Company. The lease calls for rent payments of $30,000 in annual installments due on the 16 th Lease obligations at March 31, 2021 consisted of the following: For the year ended December 31: 2021 $ 30,000 2022 30,000 2023 30,000 2024 30,000 2025 30,000 Total payments $ 150,000 Less current portion (56,492 ) Lease obligation – long term $ 93,508 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 6 – SUBSEQUENT EVENTS Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued and has determined that no material subsequent events exist. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited financial statements are prepared on the basis of accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2021. The Company is a development stage enterprise devoting substantial efforts to establishing a new business, financial planning, raising capital, and research into products which may become part of the Company’s product portfolio. The Company has not realized significant sales through since inception. A development stage company is defined as one in which all efforts are devoted substantially to establishing a new business and, even if planned principal operations have commenced, revenues are insignificant. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting within the statements of cash flows, the Company considers all cash on hand, cash accounts not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash and cash equivalents. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the three months ended March 31, 2021. |
Revenue Recognition | Revenue Recognition The Company records revenue in accordance with FASB Accounting Standards Codification (“ASC”) as topic 606 (“ASC 606”). The revenue recognition standard in ASC 606 outlines a single comprehensive model for recognizing revenue as performance obligations, defined in a contract with a customer as goods or services transferred to the customer in exchange for consideration, are satisfied. The standard also requires expanded disclosures regarding the Company’s revenue recognition policies and significant judgments employed in the determination of revenue. The Company is involved in Agritourism and sells herbal supplements. The Company sells herbal supplements it buys directly from SellaCare, Inc. and sells those supplements using the SellaCare brand. SellaCare, Inc is a company that is controlled by the Company’s majority shareholder. |
Cost of Goods Sold | Cost of Goods Sold Cost of sales includes all direct expenses incurred to produce the revenue for the period. This includes, but is not limited to, product cost and shipping. Cost of goods sold are recorded in the same period as the resulting revenue. The company pays a sales based royalty payment of 25% of gross revenue to SellaCare, Inc., its related party. This royalty expense is included in cost of goods sold. |
Leases | Leases The Company adopted the new lease accounting standard, “Accounting Standards Codification Topic 842 Leases (ASC 842)” using the modified retrospective basis for all agreements existing as of January 1, 2019 as described further below under Accounting Standards Adopted The Company recognizes a right-of-use asset and lease liability for all financing and operating leases with terms greater than twelve months. The lease liability is measured based on the present value of the lease payments not yet paid. The right-of-use asset is measured based on the initial measurement of the lease liability adjusted for any direct costs incurred upon commencement of the lease. The right-of-use assets are amortized on a straight-line basis over the lease term, and are tested for impairment in a manner consistent with the other long-lived assets held by the Company. |
Adoption of Recent Accounting Pronouncements | Adoption of Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Lease Obligation (Tables)
Lease Obligation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases, Operating [Abstract] | |
Schedule of lease obligations | For the year ended December 31: 2021 $ 30,000 2022 30,000 2023 30,000 2024 30,000 2025 30,000 Total payments $ 150,000 Less current portion (56,492 ) Lease obligation – long term $ 93,508 |
Organization and Description _2
Organization and Description of Business (Details) - USD ($) | Oct. 11, 2019 | Mar. 19, 2020 | Mar. 16, 2020 |
Organization and Description of Business [Abstract] | |||
Common stock shares (in Shares) | 70,000,000 | ||
Common stock, exchange for cash | $ 225,000 | ||
Licensing agreement description | 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 15th of every month thereafter. | ||
Rent payment | $ 30,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Jan. 28, 2020 | Mar. 19, 2020 | Mar. 16, 2020 | Mar. 31, 2021 | Dec. 27, 2019 |
Related Party Transactions (Details) [Line Items] | |||||
Accrued interest | $ 190 | ||||
Accrued interest | 188 | ||||
License expense | 53,365 | ||||
Rent payments | $ 30,000 | ||||
Maturity date, description | The lease begins March 16, 2020 and matures March 16, 2025 and accrues interest based on an incremental interest rate of 5.25%. | ||||
Lease payments remain | 93,508 | ||||
Due to related parties | 2,065 | ||||
Jung Ho Yang [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Loan amount | $ 5,000 | ||||
Interest rate, percenatge | 5.00% | ||||
Sellacare America, Inc [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Loan amount | $ 10,000 | ||||
Interest rate, percenatge | 5.00% | ||||
Maturity date | Nov. 30, 2020 | ||||
SellaCare, Inc [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Licensing agreement, description | 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 15th of every month thereafter. | ||||
Esther Yang [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Loans payable | $ 400 |
Lease Obligation (Details)
Lease Obligation (Details) | 1 Months Ended |
Mar. 16, 2020USD ($) | |
Operating Lease (Textual) | |
Rent payments | $ 30,000 |
Maturity date, description | The lease begins March 16, 2020 and matures March 16, 2025. |
Lease Obligation (Details) - Sc
Lease Obligation (Details) - Schedule of lease obligations | Mar. 31, 2021USD ($) |
Schedule of lease obligations [Abstract] | |
2021 | $ 30,000 |
2022 | 30,000 |
2023 | 30,000 |
2024 | 30,000 |
2025 | 30,000 |
Total payments | 150,000 |
Less current portion | (56,492) |
Lease obligation – long term | $ 93,508 |