Hi-Great Group Holding Company (HIGR) 10-K Review: Agritourism Ambitions Meet Financial Reality

Every year, publicly traded companies drop their 10-K like proverbial gauntlets, challenging investors to dig into their numbers, strategies, and risks. This review pulls back the curtain on Hi-Great Group Holding Company (OTC Pink: HIGR), a development-stage enterprise trying to carve out a niche in two fast-growing but capital-intensive markets: nutraceuticals and agritourism. Buckle up—this blog post dives deep into HIGR’s most important disclosures, financial performance, strategic vision, and risk factors.

Warren.AI 💰 2.5 / 10

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Table of Contents

1. Company Overview & History
2. Core Business Lines

• Nutritional Health Supplements
• Family Weekend Farming Resort (Agritourism)

1. Growth Strategy & Intellectual Property
2. Financial Highlights & Analysis

• Income Statement Trends
• Balance Sheet Strength
• Cash Flow Position

1. Key Risk Factors
2. Governance & Related-Party Transactions
3. Investment Outlook & Score

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1. Company Overview & History

Founded in 2010 and reincorporated in Nevada, Hi-Great Group Holding Company ("HIGR") remains a small, development-stage issuer. A major turning point came in October 2019 when 70% of voting stock shifted to a new majority shareholder, triggering a slate of management changes. Today, the executive team is led by CEO Alex Jun Ho Yang and CFO/Secretary Ho Soon Yang, a husband-and-wife duo with backgrounds in real estate, supplement distribution, and religious/nonprofit leadership.

HIGR has never been profitable. Over the past five years, it has operated at a loss, burning investor capital in two nascent ventures:

• Nutritional Supplements under license from SellaCare, Inc. (25% royalty on gross sales)
• Family Weekend Farming Resort ("Agritourism") on leased land near Los Angeles

The SEC labels HIGR as a "smaller reporting company"—no surprise, as it has no exchange listing, minimal market trading, and just $69K in revenue for the latest fiscal year.

2. Core Business Lines

a) Nutritional Health Supplements

HIGR holds an exclusive license with SellaCare, Inc., granting the right to manufacture and sell patented chelated mineral formulations (U.S. Patent #5,128,139). Products include alkalizing rice concentrates, amino acid blends, and—planned for the future—CBD-infused supplements. Sales are conducted primarily online through redesigned e-commerce sites.

Key points:

• 2024 revenue: $69,210 (down 37% from $109,491 in 2023)
• Royalty cost: 25% of net sales or $1K/month minimum
• Gross margin: 49% in 2024 (33,968 / 69,210)

b) Family Weekend Farming Resort (Agritourism)

Agritourism is HIGR’s moonshot. The plan:

1. Phase 1: Build clubhouse, restrooms, showers, showrooms, foundation for 1,000 plots
2. Phase 2: Expand to 2,000–3,000 weekend-garden parcels, add garden co-op center, healthy catering
3. Phase 3: Launch turnkey franchise model for private landowners nationwide

This concept taps into a global trend—"Allotment Gardens" in the U.K., "Kleingarten" in Germany, "Dacha" in Russia—bringing weekend family farming close to the urban sprawl of Los Angeles. HIGR’s edge: single-source its own herbs for future supplements and cosmetics.

Status: Still in a pre-revenue, capital-intensive build-out phase. No material revenue or membership fees have been recognized to date.

3. Growth Strategy & Intellectual Property

1. Organic Supplements: Leverage online marketing, expert videos, new branding
2. CBD Oils & Cosmetics: Integrate hemp compounds for cross-selling into beauty
3. Solar-Powered Resort: Use reclaimed materials, container cottages, on-site solar installation
4. Franchise Rollout: Monetize the agritourism blueprint globally

Trademark and Patent: HIGR’s worldwide license covers the chelated mineral patent (U.S. 5,128,139). No new IP filings announced.

4. Financial Highlights & Analysis

a) Income Statement Trends (2023 vs. 2024)

| Metric | 2023 | 2024 | % Change | | —————— | ———— | ———— | ————— | | Revenue | $109,491 | $69,210 | –37% | | Cost of Goods Sold | $58,573 | $35,243 | –40% | | Gross Profit | $50,918 | $33,968 | –33% | | OpEx (total) | $170,400 | $83,477 | –51% | | Operating Loss | $(119,482) | $(49,509) | –59% | | Net Loss | $(121,758) | $(48,616) | –60% |

Insight: Operating expenses fell by half, driven by lower professional fees and G&A, yet revenue dropped even more steeply. HIGR remains unprofitable with a $48K net loss.

b) Balance Sheet Strength

• Total Assets: $95K → $87K (–9%)
• Total Liabilities: $199K → $250K (+26%)
• Stockholders’ Deficit: $(103K) → $(163K)

Liabilities now exceed assets by $163K, reflecting losses and unpaid related-party royalties. No cash on hand at the start of 2024; ended with just $2,140.

c) Cash Flow Position

Operating CF: +$16K (vs. –$40K prior year) Investing CF: +$21K (from amortization of right-of-use asset) Financing CF: –$35K (lease repayments)

Cash Balance: $0 → $2,140

Management still depends on debt or equity infusions to fund Phase 1 of agritourism build-out, plus working capital for supplements.

5. Key Risk Factors

1. Going Concern: Auditor flagged substantial doubt.
2. Limited Track Record: < $70K annual revenue, cumulative deficit $893K.
3. Related-Party Transactions: 25% royalties to SellaCare, land lease to entity controlled by majority shareholder—conflict potential.
4. Execution Risk: Capital-intensive build-out, regulatory permits, franchise scaling.
5. Market Competition: Nutraceuticals are crowded; agritourism is novel but unproven in U.S. suburbs.
6. Governance Weakness: No independent board members or audit committee; segregation of duties lacking.

6. Governance & Related-Party Transactions

• Directors: Alex Jun Ho Yang (CEO/Chair) and Ho Soon Yang (CFO/Secretary)—husband and wife.
• No Independent Directors: Heightened oversight risk.
• Major Related-Party Deals:
• License with SellaCare, Inc. (controlled by majority shareholder)
• Land lease to Sella Property, LLC (controlled by majority shareholder)

7. Investment Outlook & Score

HIGR is a pure development-stage play with an ambitious dual strategy:

1. Supplements—modest online revenue, unprofitable, heavy royalty drag.
2. Agritourism—big vision, tiny balance sheet, lack of capital, planning risk.

Bottom line: This is a high-risk, near zero-revenue company with persistent losses, weak governance, and related-party exposure. The patent license and agritourism concept have theoretical upside, but execution and financing hurdles are daunting.

Net Loss (2024): $48,616

Investment Score (1–10): 2.5

This low score reflects HIGR’s early development stage, limited financial resources, and significant execution risks. Only speculative, risk-tolerant investors with a deep appetite for turnaround stories should engage at current pricing.

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