Fri, Jun 6, 10:02 AM (12 days ago)
**Hi-Great Group Holding Company (HGHC) Q1 2025 Financial Summary** **Company Overview:** Hi-Great Group Holding Company (HGHC) is a development-stage enterprise focused on a global licensing agreement related to the KRAS gene and marketing SellaCare's organic longevity health supplement. The company is also exploring the cosmetic sector for sustainable revenue. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** Slight decrease to $8,883,000 from $9,050,000. - **Cost of Sales:** Increased to $7,501,000 from $4,873,000 due to royalty payments. - **Gross Profit:** Decreased to $1,382,000 from $4,178,000. - **Operating Expenses:** Increased significantly to $20,758,000 from $14,987,000, driven by higher professional fees and general administrative expenses. - **Net Loss:** Widened to $18,938,000 from $8,778,000. - **Cash Flow from Operations:** Negative $8,387,000, compared to positive $2,639,000 in Q1 2024. - **Cash Flow from Investing Activities:** Positive $6,892,000, primarily due to right-of-use asset. - **Cash Flow from Financing Activities:** Negative $438,000, compared to negative $9,531,000 in Q1 2024. **Financial Health and Trends:** - **Liquidity:** Cash position decreased to $207,000 from $2,140,000. - **Liabilities:** Increased to $253,243,000 from $249,722,000, primarily due to accrued royalty payments. - **Stockholders' Deficit:** Worsened to $182,166,000 from $163,229,000. - **Accumulated Deficit:** Increased to $911,732,000 from $892,794,000. **Future Operations and Uncertainties:** - **Business Objectives:** Focus on maximizing shareholder returns through dividends, sustainable growth, and potential long-term appreciation. - **COVID-19 Impact:** Minimal impact on day-to-day operations, but potential future effects on business combinations and economic conditions. - **Funding:** Dependent on debt and equity financing to fund operations until a registration statement for an equity funding facility is in effect. - **Controls and Procedures:** Identified material weaknesses, including lack of an audit committee and segregation of duties. **Ticker:** HGHC is not listed on any exchange, so there is no ticker symbol available. **Conclusion:** HGHC faces significant financial challenges, including widening net losses, increased operating expenses, and a deteriorating cash position. The company's future depends on successful fundraising efforts and the execution of its business objectives. However, the identified material weaknesses in internal controls and the uncertainties surrounding the COVID-19 pandemic pose additional risks to the company's operations and financial health.