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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
and prudent. Actual results could differ from these estimates.
55
Real estate property development completed and under development
Real estate property consists of finished residential
unit sites, commercial offices and residential unit sites under development. Green Giant Inc. leases the land for the residential unit sites
under land use right leases with various terms from the PRC government. The cost of land use rights is included in the development cost
and allocated to each project. Real estate property development completed and real estate property under development are stated at the
lower of cost or fair value.
Expenditures for land development, including cost
of land use rights, deed tax, pre-development costs, and engineering costs, exclusive of depreciation, are capitalized and allocated to
development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio
of the sales area of units to the estimated total sales area of the project (or phase of the project) multiplied by the total cost of
the project (or phase of the project).
Cost of amenities transferred to buyers is allocated
to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving, etc. Once the projects
are completed, the amenities are under control of the property management companies.
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
to specific units within a project based on the ratio
of the sales area of units to the estimated total sales area of the project (or phase of the project) multiplied by the total cost of
the project (or phase of the project).
Cost of amenities transferred to buyers is allocated
to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving, etc. Once the projects
are completed, the amenities are under control of the property management companies.
Real estate property development completed and
under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only
if the carrying amount of the asset is not recoverable and exceeds fair value. The carrying amount is not recoverable if it exceeds the
sum of the undiscounted cash flows expected to be generated by the asset. Green Giant Inc. reviewed all of its real estate projects for future
losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value of such project.
For the years ended September 30, 2022, the Company recognized $67.8 million impairment for real estate property under development.
Capitalization of Interest
Interest incurred during and directly related
to real estate development projects is
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
sum of the undiscounted cash flows expected to be generated by the asset. Green Giant Inc. reviewed all of its real estate projects for future
losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value of such project.
For the years ended September 30, 2022, the Company recognized $67.8 million impairment for real estate property under development.
Capitalization of Interest
Interest incurred during and directly related
to real estate development projects is capitalized to the related real estate property under development during the active development
period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially
complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the
weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development
is recorded as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred.
Subsequent Events
On January 12, 2023, the Company and FT Global
Capital Inc. (“FT Global”) entered into a settlement agreement (the “FT Global Settlement Agreement”), pursuant
to which FT Global has
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
borrowings or the
weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development
is recorded as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred.
Subsequent Events
On January 12, 2023, the Company and FT Global
Capital Inc. (“FT Global”) entered into a settlement agreement (the “FT Global Settlement Agreement”), pursuant
to which FT Global has waived all claims and liabilities against the Company in connection with the Company’s private placement
in October 2022 and terminated the Exclusive Placement Agent Agreement entered by and between the Company and FT Global in May 2022. Under
the terms of the FT Global Settlement Agreement, the Company is obligated to pay to FT Global cash compensation of $40,000 and share compensation
of 40,000 shares of the Company’s restricted common stock.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Not applicable.
56
Item 8. Financial Statements and Supplementary Data
GREEN GIANT INC.
TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firms
F-2
Consolidated Balance Sheets as of September 30,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Company is obligated to pay to FT Global cash compensation of $40,000 and share compensation
of 40,000 shares of the Company’s restricted common stock.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Not applicable.
56
Item 8. Financial Statements and Supplementary Data
GREEN GIANT INC.
TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firms
F-2
Consolidated Balance Sheets as of September 30, 2022 and 2021
F-8
Consolidated Statements of Income and Comprehensive Income (Loss) for the Years ended September 30, 2022 and 2021 respectively
F-9
Consolidated Statements of Stockholders’ Equity for the Years ended September 30, 2022 and 2021
F-10
Consolidated Statements of Cash Flows for the Years ended September 30, 2022 and 2021
F-11
Notes to Consolidated Financial Statements
F-12 - F-32
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and Shareholders of
Green Giant Inc. (formerly China HGS Real
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Years ended September 30, 2022 and 2021
F-10
Consolidated Statements of Cash Flows for the Years ended September 30, 2022 and 2021
F-11
Notes to Consolidated Financial Statements
F-12 - F-32
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and Shareholders of
Green Giant Inc. (formerly China HGS Real Estate Inc.)
Opinion on the Financial Statements
We have audited the accompanying consolidated
balance sheets of Green Giant. Inc. (formerly China HGS Real Estate Inc.) and subsidiaries (the “Company”) as of September
30, 2022, and the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity, and cash
flows for the year ended September 30, 2022, and the related notes (collectively referred to as the “financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of September 30, 2022, and the results of its operations and its cash flows for the year ended September 30, 2022
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
statements of operations and comprehensive loss, changes in stockholders’ equity, and cash
flows for the year ended September 30, 2022, and the related notes (collectively referred to as the “financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company
as of September 30, 2022, and the results of its operations and its cash flows for the year ended September 30, 2022, in conformity with
accounting principles generally accepted in the United States of America.
Explanatory Paragraph – Going Concern
The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern. At September 30, 2022, the Company’s real estate
sales was $9.6 million decreased by 83.7% from 58.9 million in the previous period, and the operating losses is $106.9 million. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters
are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty.
Basis for Opinion
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
’s real estate
sales was $9.6 million decreased by 83.7% from 58.9 million in the previous period, and the operating losses is $106.9 million. These
conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters
are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements
based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Green Giant Inc. is not required
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
B)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Green Giant Inc. is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.
F-2
Critical Audit Matters
The critical audit matters communicated below
are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Going concern
Description of the Matter
At September 30, 2022, the Company’s real
estate sales was $9.6 million. decreased by 83.7% from $58.9 million in the previous period, and the operating losses is $106.9
million. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management plans to transforming
and expanding to provide an energy storage integrated solution. However, there is no assurance that the measures can be achieved as planned.
This significant unusual situation is a critical
audit matter as it relates to a material disclosure of going concern and involved complex estimation by management and its judgement.
How we Addressed the Matter
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
in the previous period, and the operating losses is $106.9
million. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management plans to transforming
and expanding to provide an energy storage integrated solution. However, there is no assurance that the measures can be achieved as planned.
This significant unusual situation is a critical
audit matter as it relates to a material disclosure of going concern and involved complex estimation by management and its judgement.
How we Addressed the Matter in Our Audit
Our principal audit procedures included,
among others:
Obtaining
an understanding, and evaluating management’s assessment on whether there are conditions or events that raise substantial doubt
about the entity’s ability to continue as a going concern for a reasonable period of time;
Assessing
the management’s plans and obtaining sufficient appropriate audit evidence to determine whether or not substantial doubt can be
alleviated or still exists;
Reviewing
the relevant disclosures to the consolidated financial statements.
Impairment of long-lived assets related to Real estate property
under development
Description of the Matter
At September 30, 2022, the Company’s book
value of Real estate property under development was $145.3 million. As discussed in Note 2 to the consolidated
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
essing
the management’s plans and obtaining sufficient appropriate audit evidence to determine whether or not substantial doubt can be
alleviated or still exists;
Reviewing
the relevant disclosures to the consolidated financial statements.
Impairment of long-lived assets related to Real estate property
under development
Description of the Matter
At September 30, 2022, the Company’s book
value of Real estate property under development was $145.3 million. As discussed in Note 2 to the consolidated financial statements, real
estate property under development is tested for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition
of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds
the fair value.
The principal considerations for our determination
that performing procedures relating to the impairment of long-lived assets related to Real estate property under development is a critical
audit matter as there was significant judgment made by management estimating the discount rate and discounting period. This in turn led
to a high degree of auditor judgment, and effort in performing procedures to evaluate the significant assumptions in the value in
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds
the fair value.
The principal considerations for our determination
that performing procedures relating to the impairment of long-lived assets related to Real estate property under development is a critical
audit matter as there was significant judgment made by management estimating the discount rate and discounting period. This in turn led
to a high degree of auditor judgment, and effort in performing procedures to evaluate the significant assumptions in the value in use
estimate.
How we Addressed the Matter in Our Audit
Addressing the matter involved performing procedures
and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These audit procedures
included:
evaluating
the estimation methodology and testing the aforementioned significant assumptions and the completeness, accuracy, and relevance of underlying
data used.
significant
assumptions were compared to current available economic trends data and known regulatory changes and evaluations were made of how changes
to such assumptions, and other factors would affect the outcomes.
assess the
arithmetical correctness of the valuation model and the completeness of disclosures in the consolidated financial statements.
F-3
Revenue Recognition
As disclose on Note 2 to the consolidated financial statements, Green Giant Inc. follows the Financial Accounting
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
assumptions and the completeness, accuracy, and relevance of underlying
data used.
significant
assumptions were compared to current available economic trends data and known regulatory changes and evaluations were made of how changes
to such assumptions, and other factors would affect the outcomes.
assess the
arithmetical correctness of the valuation model and the completeness of disclosures in the consolidated financial statements.
F-3
Revenue Recognition
As disclose on Note 2 to the consolidated financial statements, Green Giant Inc. follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606- “Revenue from Contracts with Customers,” (“ASC 606”). Under ASC 606, revenue is recognized in accordance with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects to be entitled to for those goods and services.
Green Giant Inc. generates revenue from real estate
sales of condominiums and commercial properties which are recognized when or as the control of the asset is transferred to the customer.
Other than the sale of individual condominium units for which there were no sales during the year ended September 30, 2022, revenue is
recognized at a point in time when the customer obtains control of the asset.
How we Addressed the Matter in Our Audit
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
that the Company expects to be entitled to for those goods and services.
Green Giant Inc. generates revenue from real estate
sales of condominiums and commercial properties which are recognized when or as the control of the asset is transferred to the customer.
Other than the sale of individual condominium units for which there were no sales during the year ended September 30, 2022, revenue is
recognized at a point in time when the customer obtains control of the asset.
How we Addressed the Matter in Our Audit
We identified revenue recognition as a critical
audit matter due to the significant management judgment in determining revenue recognition for these customer agreements. This required
a high degree of professional judgment and additional effort was required in performing the audit procedures to evaluate the methodology.
The primary procedure we performed to address this critical audit matter included the following: We obtained an understanding and evaluated the design of internal control that addressed the risks of material misstatement relating to revenue recognition. We evaluated management’s significant accounting policies related to these customer agreements for reasonableness. We obtained and read a sample of the agreements and evaluated management’s assumptions used to identify performance obligations and stand-alone prices for each distinct performance obligation, identified and reviewed unique contract terms that may impact the timing and amount of revenue recognized and identified the pattern of delivery
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
this critical audit matter included the following: We obtained an understanding and evaluated the design of internal control that addressed the risks of material misstatement relating to revenue recognition. We evaluated management’s significant accounting policies related to these customer agreements for reasonableness. We obtained and read a sample of the agreements and evaluated management’s assumptions used to identify performance obligations and stand-alone prices for each distinct performance obligation, identified and reviewed unique contract terms that may impact the timing and amount of revenue recognized and identified the pattern of delivery, transfer of control and appropriateness of management’s application of accounting policies in accordance with ASC Topic 606.
/s/ OneStop Assurance PAC
We have served as the Company’s auditors since 2022.
Singapore
January 13, 2023
PCAOB Register Number 6732
F-4
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and Shareholders of
Green Giant Inc. (formerly China HGS Real Estate Inc.)
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheet of Green
Giant Inc. (formerly China HGS Real Estate Inc.) (the “Company”) as of September 30, 2021, and the related consolidated
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
B Register Number 6732
F-4
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and Shareholders of
Green Giant Inc. (formerly China HGS Real Estate Inc.)
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheet of Green
Giant Inc. (formerly China HGS Real Estate Inc.) (the “Company”) as of September 30, 2021, and the related consolidated statements
of income and comprehensive income (loss), changes in stockholders’ equity, and cash flows for the year ended September 30, 2021,
and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2021 and the
results of its operations and its cash flows for the year ended September 30, 2021, in conformity with accounting principles generally
accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements
based
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2021 and the
results of its operations and its cash flows for the year ended September 30, 2021, in conformity with accounting principles generally
accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements
based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Green Giant Inc. is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Green Giant Inc. is not required to have, nor were we
engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides
a reasonable basis for our opinion.
Critical Audit
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides
a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below
are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved
our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
F-5
Valuation of real estate property
As described in Note 2 to the consolidated financial
statements
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
(2) involved
our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below,
providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
F-5
Valuation of real estate property
As described in Note 2 to the consolidated financial
statements, the Company tests real estate completed and under development for recoverability when events or changes in circumstances indicate
that its carrying value may not be recoverable. Management determines whether impairment has occurred by comparing each property’s
fair value determined utilizing future estimated undiscounted cash flows to the property’s carrying value.
Green Giant Inc.’s undiscounted future estimated
cash flows analysis requires management to make significant estimates and assumptions. If the expected future cash flows is less than
the carrying value of the property, the Company will recognize an impairment charge. Fair value is determined based on independent appraisals,
selling prices of comparable properties, sale agreements under negotiation, and/or final selling prices.
We identified the valuation and impairment of
real estate as a critical audit matter
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
to the property’s carrying value.
Green Giant Inc.’s undiscounted future estimated
cash flows analysis requires management to make significant estimates and assumptions. If the expected future cash flows is less than
the carrying value of the property, the Company will recognize an impairment charge. Fair value is determined based on independent appraisals,
selling prices of comparable properties, sale agreements under negotiation, and/or final selling prices.
We identified the valuation and impairment of
real estate as a critical audit matter not only because of the materiality in the consolidated financial statements, but also due to significant
estimates and assumptions management makes to evaluate the recoverability of its real estate properties. Given these factors, the related
audit effort in evaluating management’s assumptions in determining the recoverability of real estate assets was extensive and required
a high degree of auditor judgment.
The primary procedures we performed to address
this critical audit matter included the following: We obtained an understanding and evaluated the design of control over management’s
evaluation of recoverability of real estate property assets, including key inputs utilized in estimating the undiscounted future cash
flows from sales. We reviewed and tested the undiscounted cash flow analysis, including estimates of timing of sales and estimated sales
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of real estate assets was extensive and required
a high degree of auditor judgment.
The primary procedures we performed to address
this critical audit matter included the following: We obtained an understanding and evaluated the design of control over management’s
evaluation of recoverability of real estate property assets, including key inputs utilized in estimating the undiscounted future cash
flows from sales. We reviewed and tested the undiscounted cash flow analysis, including estimates of timing of sales and estimated sales
proceeds, for each real estate asset with possible impairment indicators by evaluating the source information and assumptions used by
management and tested the mathematical accuracy of the calculations. We made inquiries of management regarding the current state of potential
transactions and about management’s judgments to understand the probability of future events that could affect the cash flow assumptions
utilized for the properties. We also obtained and reviewed the independent valuation reports issued by the independent valuation firm
on the properties, noting the valuation methodology and assumptions used in the determination of the related fair value of the property
as well as the relevant qualifications, and experience of the firm in the preparation of the valuation reports.
Revenue Recognition
As disclosed in Note 2 to the consolidated financial
statements, the Company follows the Financial Accounting
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
future events that could affect the cash flow assumptions
utilized for the properties. We also obtained and reviewed the independent valuation reports issued by the independent valuation firm
on the properties, noting the valuation methodology and assumptions used in the determination of the related fair value of the property
as well as the relevant qualifications, and experience of the firm in the preparation of the valuation reports.
Revenue Recognition
As disclosed in Note 2 to the consolidated financial
statements, the Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 606- “Revenue from Contracts with Customers,” (“ASC 606”). Under ASC 606, revenue is recognized in accordance
with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects to be entitled
to for those goods and services.
F-6
Green Giant Inc. generates revenue from real estate
sales of condominiums and commercial properties which are recognized when: a) construction is beyond a preliminary stage; b) the buyer
is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest; c) sufficient units have
already been sold to assure that the entire property will
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
that reflects the consideration that the Company expects to be entitled
to for those goods and services.
F-6
Green Giant Inc. generates revenue from real estate
sales of condominiums and commercial properties which are recognized when: a) construction is beyond a preliminary stage; b) the buyer
is committed to the extent of being unable to require a refund except for non-delivery of the unit or interest; c) sufficient units have
already been sold to assure that the entire property will not revert to rental property; d) sale prices are collectible; and e) aggregate
sales proceeds and costs can be reasonably estimated. Other than the sale of individual condominium units for which there were no sales
during the year ended September 30, 2021, revenue is recognized at a point in time when the customer obtains control of the asset.
We identified revenue recognition as a critical
audit matter due to the significant management judgment in determining revenue recognition for these customer agreements. This required
a high degree of auditor judgment and additional effort was required in performing the audit procedures to evaluate the methodology.
The primary procedures we performed to address
this critical audit matter included the following: We obtained an understanding and evaluated the design of internal control that addressed
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, revenue is recognized at a point in time when the customer obtains control of the asset.
We identified revenue recognition as a critical
audit matter due to the significant management judgment in determining revenue recognition for these customer agreements. This required
a high degree of auditor judgment and additional effort was required in performing the audit procedures to evaluate the methodology.
The primary procedures we performed to address
this critical audit matter included the following: We obtained an understanding and evaluated the design of internal control that addressed
the risks of material misstatement relating to revenue recognition. We evaluated management’s significant accounting policies related
to these customer agreements for reasonableness. We obtained and read a sample of the agreements and evaluated management’s assumptions
used to identify performance obligation and the price for the performance obligation, identified and reviewed unique contract terms that
may impact the timing and amount of revenue recognized and identified the pattern of delivery, transfer of control and appropriateness
of management’s application of accounting policies in accordance with ASC Topic 606.
/s/ Wei, Wei & Co., LLP
We have served as the Company’s auditors from December 2020 to
August 2022.
Flushing, New York
January 13, 2022
PC
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the performance obligation, identified and reviewed unique contract terms that
may impact the timing and amount of revenue recognized and identified the pattern of delivery, transfer of control and appropriateness
of management’s application of accounting policies in accordance with ASC Topic 606.
/s/ Wei, Wei & Co., LLP
We have served as the Company’s auditors from December 2020 to
August 2022.
Flushing, New York
January 13, 2022
PCAOB ID: 2388
F-7
GREEN GIANT INC.
CONSOLIDATED BALANCE SHEETS
September 30,
September 30,
2022
2021
ASSETS
Cash
1,360,217
170,001
Restricted cash
3,007,960
3,295,188
Contract assets
7,628,770
13,723,793
Real estate property-development completed
74,772,530
88,145,841
Other assets
3,767,190
8,358,925
Prepayment for energy equipment
26,936,915
Property,plant and equipment,net
483,219
558,086
Security deposits
1,771,019
1
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
cash
3,007,960
3,295,188
Contract assets
7,628,770
13,723,793
Real estate property-development completed
74,772,530
88,145,841
Other assets
3,767,190
8,358,925
Prepayment for energy equipment
26,936,915
Property,plant and equipment,net
483,219
558,086
Security deposits
1,771,019
1,955,202
Real estate property under development
145,300,588
222,458,149
Due from local government- property development completed
42,358,986
46,335,378
Total Assets
307,387,394
385,000,563
LIABILITIES AND STOCKHOLDERS’ EQUITY
Construction loans
108,366,351
119,636,222
Accounts payable
10,606,635
18,259,151
Other payables
13,578,713
6,430,992
Construction deposits
3,029,565
3,344,917
Contract liabilities
1,989,898
1,886,075
Customer deposits
19,842,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
000,563
LIABILITIES AND STOCKHOLDERS’ EQUITY
Construction loans
108,366,351
119,636,222
Accounts payable
10,606,635
18,259,151
Other payables
13,578,713
6,430,992
Construction deposits
3,029,565
3,344,917
Contract liabilities
1,989,898
1,886,075
Customer deposits
19,842,768
19,803,917
Accrued expenses
10,547,436
1,987,567
Taxes payable
19,980,358
22,954,011
Total liabilities
187,941,724
194,302,852
Commitments and Contingencies
Stockholders’ equity*
Commons stock,$0.001 par value,200,000,000 shares authorized;46,464,929 and 25,617,807 shares outstanding as at September 30, 2022 and September 30,2021
46,464
25,617
Additional paid-in capital
184,821,771
136,535,303
Statutory surplus
11,095,939
11,095,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Commitments and Contingencies
Stockholders’ equity*
Commons stock,$0.001 par value,200,000,000 shares authorized;46,464,929 and 25,617,807 shares outstanding as at September 30, 2022 and September 30,2021
46,464
25,617
Additional paid-in capital
184,821,771
136,535,303
Statutory surplus
11,095,939
11,095,939
Retained earnings
(67,432,727
40,691,955
Accumulated other comprehensive loss
(9,085,777
2,348,897
Total stockholders’ equity
119,445,670
190,697,711
Total Liabilities and Stockholders’ Equity
307,387,394
385,000,563
The accompanying notes are an integral part of
these consolidated financial statements
F-8
GREEN GIANT INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS) INCOME
FOR THE YEARS ENDED SEPTEMBER 30,
2022 and 2021
2022
2021
Real estate sales
9,577
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Total Liabilities and Stockholders’ Equity
307,387,394
385,000,563
The accompanying notes are an integral part of
these consolidated financial statements
F-8
GREEN GIANT INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
(LOSS) INCOME
FOR THE YEARS ENDED SEPTEMBER 30,
2022 and 2021
2022
2021
Real estate sales
9,577,405
58,915,239
Less: Sales tax
(505,652
(424,074
Cost of real estate sales
5,489,411
46,510,001
Gross profit
3,582,342
11,981,164
Operating expenses
Selling and distribution expenses
361,746
186,886
General and administrative expenses
31,198,365
2,691,170
Impairment of contract assets
5,264,748
Impairment of real estate property under development
73,624,727
Total operating expenses
110,449,586
2,878,056
Operating (loss)income
(106,867,244
9,103,108
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
,164
Operating expenses
Selling and distribution expenses
361,746
186,886
General and administrative expenses
31,198,365
2,691,170
Impairment of contract assets
5,264,748
Impairment of real estate property under development
73,624,727
Total operating expenses
110,449,586
2,878,056
Operating (loss)income
(106,867,244
9,103,108
Interest income, net
5,927
5,690
Other expense, net
(1,263,365
(246,814
Income before income taxes
(108,124,682
8,861,984
Provision for income taxes
2,486,546
Net (loss)income
(108,124,682
6,375,438
Other comprehensive income:
Foreign currency translation adjustment
(11,434,674
9,388,387
Comprehensive (loss) income
(119,559,356
15,763,825
Basic and diluted income per common share*:
Basic
(2.99
0.27
Diluted
(2.16
0.27
Weight
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
,486,546
Net (loss)income
(108,124,682
6,375,438
Other comprehensive income:
Foreign currency translation adjustment
(11,434,674
9,388,387
Comprehensive (loss) income
(119,559,356
15,763,825
Basic and diluted income per common share*:
Basic
(2.99
0.27
Diluted
(2.16
0.27
Weighted average common shares outstanding*:
Basic
36,189,189
23,944,328
Diluted
50,055,537
23,944,328
The accompanying notes are an integral part of
these consolidated financial statements
F-9
GREEN GIANT INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’
EQUITY
FOR THE YEARS ENDED SEPTEMBER 30,
2022 AND 2021
Accumulated
Additional
Other
Common Stock
Paid-in
Statutory
Retained
Comprehensive
Shares*
Amount
Capital
Reserve
Earnings(Deficit)
Income (Loss)
Total
Balance at September 30, 2020
22
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
GIANT INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’
EQUITY
FOR THE YEARS ENDED SEPTEMBER 30,
2022 AND 2021
Accumulated
Additional
Other
Common Stock
Paid-in
Statutory
Retained
Comprehensive
Shares*
Amount
Capital
Reserve
Earnings(Deficit)
Income (Loss)
Total
Balance at September 30, 2020
22,525,693
22,525
129,930,330
10,458,395
34,954,061
(7,039,490
168,325,821
Issurance of shares for debt settlement
3,092,114
3,092
6,604,973
6,608,065
Net income
6,375,438
6,375,438
Appropriation to statutory reserve
637,544
(637,544
Foreign currency translation adjustments
9,388,387
9,388,387
Balance at September 30, 2021
25,617,807
25,617
136,535,303
11,095,939
40,691,955
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
092
6,604,973
6,608,065
Net income
6,375,438
6,375,438
Appropriation to statutory reserve
637,544
(637,544
Foreign currency translation adjustments
9,388,387
9,388,387
Balance at September 30, 2021
25,617,807
25,617
136,535,303
11,095,939
40,691,955
2,348,897
190,697,711
Private placements
14,847,122
14,847
28,922,068
28,936,915
Net income
(108,124,682
(108,124,682
Appropriation to statutory reserve
Share-based compensation
6,000,000
6,000
19,364,400
19,370,400
Foreign currency translation adjustments
(11,434,674
(11,434,674
Balance at September 30, 2022
46,464,929
46,464
184,821,771
11,095,939
(67,432,727
(9,085,777
119,445,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
ation to statutory reserve
Share-based compensation
6,000,000
6,000
19,364,400
19,370,400
Foreign currency translation adjustments
(11,434,674
(11,434,674
Balance at September 30, 2022
46,464,929
46,464
184,821,771
11,095,939
(67,432,727
(9,085,777
119,445,670
The accompanying notes are an integral part of
these consolidated financial statements
F-10
GREEN GIANT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30,
2022 and 2021
2022
2021
Cash flows from operating activities:
Net (loss) income
(108,124,682
6,375,438
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation
24,201
43,510
Impairment
78,889,475
Share based compensation
19,370,400
Contract assets
(51,931
1,284,745
Real estate property
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
1
2022
2021
Cash flows from operating activities:
Net (loss) income
(108,124,682
6,375,438
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation
24,201
43,510
Impairment
78,889,475
Share based compensation
19,370,400
Contract assets
(51,931
1,284,745
Real estate property development completed
5,503,345
11,498,195
Real estate property under development
(13,039,391
21,526,902
Due from local government- property development completed
(43,311,572
Other assets
4,143,409
208,522
Accounts payables
(6,439,990
(1,830,135
Other payables
8,357,875
2,165,081
Contract liabilities
305,561
(60,288
Customer deposits
2,067,231
(637,942
Construction deposits
(29,601
Accrued expenses
9,482,260
Taxes payables
(1,245,270
2,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
,409
208,522
Accounts payables
(6,439,990
(1,830,135
Other payables
8,357,875
2,165,081
Contract liabilities
305,561
(60,288
Customer deposits
2,067,231
(637,942
Construction deposits
(29,601
Accrued expenses
9,482,260
Taxes payables
(1,245,270
2,162,978
Net cash (used in) operating activities
(757,507
(604,167
Cash Flows from Investing Activities:
Prepayment for energy equipment
(26,936,915
Net Cash (used in) Investing Activities
(26,936,915
Cash flow from financing activities:
Proceeds from private placements
28,936,915
Net cash provide by financing activities
28,936,915
Effect of changes in foreign exchange rate on cash
(339,505
201,820
Net increase (decrease) in cash
902,988
(402,347
Cash, restricted cash, beginning of year
3,465,189
3,867,536
Cash, restricted cash, end of year
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
,915
Cash flow from financing activities:
Proceeds from private placements
28,936,915
Net cash provide by financing activities
28,936,915
Effect of changes in foreign exchange rate on cash
(339,505
201,820
Net increase (decrease) in cash
902,988
(402,347
Cash, restricted cash, beginning of year
3,465,189
3,867,536
Cash, restricted cash, end of year
4,368,177
3,465,189
Supplemental disclosures of cash flow information:
Interest paid
2,018,918
Income taxes paid
18,733
266,999
Cash
1,360,217
170,001
Restricted cash
3,007,960
3,295,188
4,368,177
3,465,189
Non-cash financing activities:
Reclassification of interest payable to construction loan
6,612,142
5,024,385
Settlements of accounts payable with real estate property under development
(14,532,967
Issuance of stock for settlement of accounts payable
6,608,065
The accompanying notes are an integral part of
these
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
cash
3,007,960
3,295,188
4,368,177
3,465,189
Non-cash financing activities:
Reclassification of interest payable to construction loan
6,612,142
5,024,385
Settlements of accounts payable with real estate property under development
(14,532,967
Issuance of stock for settlement of accounts payable
6,608,065
The accompanying notes are an integral part of
these consolidated financial statements
F-11
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION
Green Giant Inc (Formerly known as China HGS Real
Estate Inc.) (the “Company” or “GGE” or “we”, “our”, “us”) is a
corporation organized under the laws of the State of Florida.
GGE does not conduct any substantive operations
of its own. Instead, through its subsidiary, Shaanxi HGS Management and Consulting Co., Ltd (“Shaanxi HGS”), it entered into
certain exclusive contractual agreements with the owners of the Company’s PRC operating subsidiary, Sha
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
state Inc.) (the “Company” or “GGE” or “we”, “our”, “us”) is a
corporation organized under the laws of the State of Florida.
GGE does not conduct any substantive operations
of its own. Instead, through its subsidiary, Shaanxi HGS Management and Consulting Co., Ltd (“Shaanxi HGS”), it entered into
certain exclusive contractual agreements with the owners of the Company’s PRC operating subsidiary, Shaanxi Guangsha Investment
and Development Group Co., Ltd (“Guangsha”). Pursuant to these agreements, Shaanxi HGS is obligated to absorb a majority of
the risk of loss from Guangsha’s activities and entitles Shaanxi HGS to receive a majority of Guangsha’s expected residual
returns. In addition, Guangsha’s shareholders have pledged their equity interest in Guangsha to Shaanxi HGS, irrevocably granted
Shaanxi HGS an exclusive option to purchase, to the extent permitted under PRC Law, all or part of the equity interests in Guangsha and
agreed to entrust all the rights to exercise their voting power to the person(s) appointed by Shaanxi HGS.
Based on these
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
majority of Guangsha’s expected residual
returns. In addition, Guangsha’s shareholders have pledged their equity interest in Guangsha to Shaanxi HGS, irrevocably granted
Shaanxi HGS an exclusive option to purchase, to the extent permitted under PRC Law, all or part of the equity interests in Guangsha and
agreed to entrust all the rights to exercise their voting power to the person(s) appointed by Shaanxi HGS.
Based on these contractual arrangements, management
believes that Guangsha should be considered a “Variable Interest Entity” (“VIE”) under the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810 “Consolidation of Variable
Interest Entities, an Interpretation of ARB No. 51”, because the equity investors in Guangsha no longer have the characteristics
of a controlling financial interest, and the Company, through Shaanxi HGS, is the primary beneficiary of Guangsha. Accordingly, Guangsha
has been consolidated.
Green Giant Inc., through its subsidiaries and VIE,
engages in real estate development, in the construction and sale of residential apartments, parking lots and commercial properties. Total
assets and liabilities presented on the consolidated balance
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
an Interpretation of ARB No. 51”, because the equity investors in Guangsha no longer have the characteristics
of a controlling financial interest, and the Company, through Shaanxi HGS, is the primary beneficiary of Guangsha. Accordingly, Guangsha
has been consolidated.
Green Giant Inc., through its subsidiaries and VIE,
engages in real estate development, in the construction and sale of residential apartments, parking lots and commercial properties. Total
assets and liabilities presented on the consolidated balance sheets and sales, cost of sales, net income presented on Consolidated Statement
of Income and Comprehensive Income (Loss) as well as the cash flows from operations, investing and financing activities presented on the
Consolidated Statement of Cash Flows are substantially the financial position, operations and cash flow of Guangsha. Green Giant Inc. has not
provided any financial support to Guangsha for the years ended September 30, 2022 and 2021. The following assets,liabilities
and impairment loss of the consolidated VIE are included in the accompanying consolidated financial statements of the Company as of September 30,
2022 and 2021:
Balance as of
September 30,
September 30,
2022
2021
Total assets
280,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
and cash flow of Guangsha. Green Giant Inc. has not
provided any financial support to Guangsha for the years ended September 30, 2022 and 2021. The following assets,liabilities
and impairment loss of the consolidated VIE are included in the accompanying consolidated financial statements of the Company as of September 30,
2022 and 2021:
Balance as of
September 30,
September 30,
2022
2021
Total assets
280,939,924
385,000,583
Total liabilities
183,674,040
189,470,931
2022
2021
Impairment loss
78,889,475
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation and basis of presentation
Green Giant Inc.’s
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Green Giant Inc.
(the “Company” or “China HGS”), China HGS Investment Inc. (“HGS Investment”), Shaanxi HGS Management
and Consulting Co., Ltd. (“Shaanxi H
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
POLICIES
Principles of consolidation and basis of presentation
Green Giant Inc.’s
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”). The consolidated financial statements include the accounts of Green Giant Inc.
(the “Company” or “China HGS”), China HGS Investment Inc. (“HGS Investment”), Shaanxi HGS Management
and Consulting Co., Ltd. (“Shaanxi HGS”) and its variable interest entity (“VIE”), Shaanxi Guangsha Investment
and Development Group Co., Ltd. (“Guangsha”). All inter-company transactions and balances between the Company and its
subsidiaries have been eliminated upon consolidation.
Green Giant Inc.’s operations involve real estate
development and sales. Starting from the year ended September 30, 2020, the Company has been involved in larger real estate property development
with an extended development cycle. As a result, it is not possible to precisely measure the duration of its operating cycle. The accompanying
consolidated balance sheets of the Company have been prepared on an unclassified basis in accordance with real estate industry practice.
F-12
GREEN GIANT INC.
NOTES TO CONSOLIDATED FIN
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cik:1158420
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name:Green Giant Inc.
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filing_type:10-K
Text:
involve real estate
development and sales. Starting from the year ended September 30, 2020, the Company has been involved in larger real estate property development
with an extended development cycle. As a result, it is not possible to precisely measure the duration of its operating cycle. The accompanying
consolidated balance sheets of the Company have been prepared on an unclassified basis in accordance with real estate industry practice.
F-12
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Liquidity
In
assessing the liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue
sources in the future, and its operating and capital expenditure commitments. As of September 30, 2022, our total cash and restricted
cash balance was approximately $4.37 million, a increase from approximately $3.5 million as of September 30, 2021. With respect to capital
funding requirements, the Company budgeted its capital spending based on ongoing assessments of needs to maintain adequate cash. As of
September 30, 2022, we had approximately $74.8 million of completed residential apartments and commercial units available for sale to
potential buyers. Although we
|
YOU are a financial analyst. You are reading a report of a company.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
2, our total cash and restricted
cash balance was approximately $4.37 million, a increase from approximately $3.5 million as of September 30, 2021. With respect to capital
funding requirements, the Company budgeted its capital spending based on ongoing assessments of needs to maintain adequate cash. As of
September 30, 2022, we had approximately $74.8 million of completed residential apartments and commercial units available for sale to
potential buyers. Although we reported approximately $10.6 million accounts payable as of September 30, 2022, due to the long-term relationship
with our construction suppliers and subcontractors, we were able to effectively manage cash spending on construction and negotiate with
them to adjust the payment schedule based on our cash on hand. In addition, most of our existing real estate development projects relate
to the old town renovation which are supported by the local government. As of September 30, 2022, we reported approximately $108.4 million
of construction loans borrowed from financial institutions controlled by the local government and such loans can only be used on the
old town renovation related project development. We expect that we will be able to renew all of the existing construction loans upon
their maturity and borrow
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
our cash on hand. In addition, most of our existing real estate development projects relate
to the old town renovation which are supported by the local government. As of September 30, 2022, we reported approximately $108.4 million
of construction loans borrowed from financial institutions controlled by the local government and such loans can only be used on the
old town renovation related project development. We expect that we will be able to renew all of the existing construction loans upon
their maturity and borrow additional new loans from local financial institutions, when necessary, based on our past experience and the
Company’s good credit history. Also, the Company’s cash flows from pre-sales and current sales should provide financial support
for our current development projects and operations. For the year ended September 30, 2022, we had six large ongoing construction projects
(see Note 3, real estate properties under development) which were under the preliminary development stage due to delayed inspection and
acceptance of the development plans by the local government. In June 2020, we completed the residence relocation surrounding the Liangzhou
Road related projects and launched the construction of these projects in December 2020. For the other four projects, we expect we will
be able to obtain the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
30, 2022, we had six large ongoing construction projects
(see Note 3, real estate properties under development) which were under the preliminary development stage due to delayed inspection and
acceptance of the development plans by the local government. In June 2020, we completed the residence relocation surrounding the Liangzhou
Road related projects and launched the construction of these projects in December 2020. For the other four projects, we expect we will
be able to obtain the government’s approval of the development plans on these projects in the coming fiscal year and start the
pre-sale of the real estate properties to generate cash when certain property development milestones have been achieved.
Revenue recognition
Green Giant Inc. follows FASB ASC Topic 606 “Revenue
from Contracts with Customers” (“ASC 606”). Under ASC 606, Revenue from Contracts with Customers, revenue is recognized
in accordance with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects
to be entitled to for those goods and services. Green Giant Inc. determines revenue recognition through the following steps:
identification of the contract, or contracts, with a customer;
identification of the performance obligations in the contract;
determination of the transaction price, including the constraint on variable consideration
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
with Customers” (“ASC 606”). Under ASC 606, Revenue from Contracts with Customers, revenue is recognized
in accordance with the transfer of goods and services to customers at an amount that reflects the consideration that the Company expects
to be entitled to for those goods and services. Green Giant Inc. determines revenue recognition through the following steps:
identification of the contract, or contracts, with a customer;
identification of the performance obligations in the contract;
determination of the transaction price, including the constraint on variable consideration;
allocation of the transaction price to the performance obligations in the contract; and
recognition of revenue when (or as) the Company satisfies a performance obligation.
F-13
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Most of the Company’s revenue is derived
from real estate sales of condominiums and commercial properties in the PRC. The majority of the Company’s contracts contain a single
performance obligation involving significant real estate development activities that are performed together to deliver a real estate property
to its customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer.
The control of the asset may transfer over time or at a point in time. For the sales of individual condominium
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Company’s revenue is derived
from real estate sales of condominiums and commercial properties in the PRC. The majority of the Company’s contracts contain a single
performance obligation involving significant real estate development activities that are performed together to deliver a real estate property
to its customers. Revenues arising from real estate sales are recognized when or as the control of the asset is transferred to the customer.
The control of the asset may transfer over time or at a point in time. For the sales of individual condominium units in a real estate
development project, the Company has an enforceable right to payment for performance completed to date, revenue is recognized over time
by measuring the progress towards complete satisfaction of that performance obligation (“percentage completion method”). Otherwise,
revenue is recognized at a point in time when the customer obtains control of the asset. For the years ended September 30, 2022 and 2021,
the Company did not have any construction in progress meet the revenue recognition under percentage completion method.
Under the percentage completion method, revenue
and profit from the sales of long-term real estate development properties is recognized by the percentage of completion method on the
sale of individual units when all the following criteria are met:
a.
Construction is beyond a preliminary stage.
b.
The buyer
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
time when the customer obtains control of the asset. For the years ended September 30, 2022 and 2021,
the Company did not have any construction in progress meet the revenue recognition under percentage completion method.
Under the percentage completion method, revenue
and profit from the sales of long-term real estate development properties is recognized by the percentage of completion method on the
sale of individual units when all the following criteria are met:
a.
Construction is beyond a preliminary stage.
b.
The buyer is committed to the extent of being unable to require a refund except for non-delivery of the
unit or interest.
c.
Sufficient units have already been sold to assure that the entire property will not revert to rental property.
d.
Sale prices are collectible.
e.
Aggregate sales proceeds and costs can be reasonably estimated.
If any of the above criteria are not met, proceeds
shall be accounted for as deposits until the criteria are met.
Under the percentage of completion method, revenues
from individual real estate condominium units sold under development and related costs are recognized over the course of the construction
period, based on the completion progress of a project. The progress towards complete satisfaction of the performance obligation is measured
based on the Company’s efforts or inputs to the satisfaction of
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
Aggregate sales proceeds and costs can be reasonably estimated.
If any of the above criteria are not met, proceeds
shall be accounted for as deposits until the criteria are met.
Under the percentage of completion method, revenues
from individual real estate condominium units sold under development and related costs are recognized over the course of the construction
period, based on the completion progress of a project. The progress towards complete satisfaction of the performance obligation is measured
based on the Company’s efforts or inputs to the satisfaction of the performance obligation, by reference to the contract costs incurred
up to the end of reporting period as a percentage of total estimated costs for each contract. In relation to any project, revenue is determined
by calculating the ratio of incurred costs, including land use rights costs and construction costs, to total estimated costs and applying
that ratio to the contracted sales amounts. Cost of sales is recognized by determining the ratio of contracted sales during the period
to total estimated sales value and applying that ratio to the incurred costs. Current period amounts are calculated based on the difference
between the life-to-date project totals and the previously recognized amounts.
Any changes in significant judgments and/or estimates
used in determining construction and development revenue could significantly change the timing or amount of construction and development
revenue recognized
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, to total estimated costs and applying
that ratio to the contracted sales amounts. Cost of sales is recognized by determining the ratio of contracted sales during the period
to total estimated sales value and applying that ratio to the incurred costs. Current period amounts are calculated based on the difference
between the life-to-date project totals and the previously recognized amounts.
Any changes in significant judgments and/or estimates
used in determining construction and development revenue could significantly change the timing or amount of construction and development
revenue recognized. Changes in total estimated project costs or losses, if any, are recognized in the period in which they are determined.
Revenue from the sales of previously completed
real estate condominium units is recognized at the time of the closing of an individual unit sale. This occurs when the customer obtains
the physical possession, the legal title, or the significant risks and rewards of ownership of the property and the Company has the right
to payment and the collection of the consideration is probable. For municipal road construction projects, revenues are generally recognized
at the time the projects are completed.
F-14
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Disaggregation of Revenues
Disaggregated revenues are as follows:
For the years ended
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The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
the physical possession, the legal title, or the significant risks and rewards of ownership of the property and the Company has the right
to payment and the collection of the consideration is probable. For municipal road construction projects, revenues are generally recognized
at the time the projects are completed.
F-14
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Disaggregation of Revenues
Disaggregated revenues are as follows:
For the years ended September 30,
2022
2021
Revenue recognized for completed condominium real estate projects, net of sales taxes
9,071,753
15,179,593
Revenue recognized for completed condominium real estate projects sold to government, net of sales taxes
43,311,572
Total revenue, net of sales taxes
9,071,753
58,491,165
Contract balances
Timing of revenue recognition may differ from
the timing of billing and cash receipts from customers. Green Giant Inc. records a contract asset when revenue is recognized prior to invoicing,
or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is
conditional upon factors other than the passage of time. Contract assets include billed and bill
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
,572
Total revenue, net of sales taxes
9,071,753
58,491,165
Contract balances
Timing of revenue recognition may differ from
the timing of billing and cash receipts from customers. Green Giant Inc. records a contract asset when revenue is recognized prior to invoicing,
or a contract liability when cash is received in advance of recognizing revenue. A contract asset is a right to consideration that is
conditional upon factors other than the passage of time. Contract assets include billed and billable receivables, which are the Company’s
unconditional rights to consideration other than the passage of time. Contract liabilities include cash collected in advance and in excess
of revenue recognized. Customer deposits are excluded from contract liabilities.
Green Giant Inc. has elected to apply the optional
practical expedient for costs to obtain a contract which allows the Company to immediately expense sales commissions (included under selling
expenses) because the amortization period of the asset that the Company otherwise would have used is one year or less.
Green Giant Inc. provides “mortgage loan guarantees”
only with respect to buyers who make down-payments of 20%-50% of the total purchase price of the property. The period of the mortgage
loan guarantee begins on the date the bank approves the buyer’s mortgage and
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
actical expedient for costs to obtain a contract which allows the Company to immediately expense sales commissions (included under selling
expenses) because the amortization period of the asset that the Company otherwise would have used is one year or less.
Green Giant Inc. provides “mortgage loan guarantees”
only with respect to buyers who make down-payments of 20%-50% of the total purchase price of the property. The period of the mortgage
loan guarantee begins on the date the bank approves the buyer’s mortgage and we receive the loan proceeds in our bank account and
ends on the date the “Certificate of Ownership” evidencing that title to the property has been transferred to the buyer. The
procedures to obtain the Certificate of Ownership take six to twelve months (the “Mortgage Loan Guarantee Period”). If,
after investigation of the buyer’s income and other relevant factors, the bank decides not to grant the mortgage loan, our mortgage-loan
based sales contract terminates and there will be no guarantee obligation. If, during the Mortgage Loan Guarantee Period, the buyer defaults
on his or her monthly mortgage payment for three consecutive months, we are required to return the loan proceeds back to the
bank, although we have the right to keep the customer’s deposit and res
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YOU are a financial analyst. You are reading a report of a company.
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
gage Loan Guarantee Period”). If,
after investigation of the buyer’s income and other relevant factors, the bank decides not to grant the mortgage loan, our mortgage-loan
based sales contract terminates and there will be no guarantee obligation. If, during the Mortgage Loan Guarantee Period, the buyer defaults
on his or her monthly mortgage payment for three consecutive months, we are required to return the loan proceeds back to the
bank, although we have the right to keep the customer’s deposit and resell the property to a third party. Once the Certificate of
Ownership has been issued by the relevant government authority, our loan guarantee terminates. If the buyer then defaults on his or her
mortgage loan, the bank has the right to take the property back and sell it and use the proceeds to pay off the loan. Green Giant Inc. is not
liable for any shortfall that the bank may incur in this event. To date, no buyer has defaulted on his or her mortgage payments during
the Mortgage Loan Guarantee Period and the Company has not returned any loan proceeds pursuant to its mortgage loan guarantees.
Use of estimates
The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements
and
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cik:1158420
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name:Green Giant Inc.
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use the proceeds to pay off the loan. Green Giant Inc. is not
liable for any shortfall that the bank may incur in this event. To date, no buyer has defaulted on his or her mortgage payments during
the Mortgage Loan Guarantee Period and the Company has not returned any loan proceeds pursuant to its mortgage loan guarantees.
Use of estimates
The preparation of financial statements in conformity
with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements
and accompanying notes, and disclosure of contingent liabilities at the date of the consolidated financial statements. Estimates are used
for, but not limited to, the assumptions and estimates used by management in recognizing development revenue under the percentage of completion
method, the selection of the useful lives of property and equipment, provision necessary for contingent liabilities, revenue recognition,
taxes and budgeted costs. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable
and prudent. Actual results could differ from these estimates.
Changes of estimated gross profit margins related
to revenue recognized under the percentage of completion method are made in the period in which circumstances requiring the revisions
become known. For the year ended September 30, 2022 and 2021, the Company did not change the estimated
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The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
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equipment, provision necessary for contingent liabilities, revenue recognition,
taxes and budgeted costs. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable
and prudent. Actual results could differ from these estimates.
Changes of estimated gross profit margins related
to revenue recognized under the percentage of completion method are made in the period in which circumstances requiring the revisions
become known. For the year ended September 30, 2022 and 2021, the Company did not change the estimated revenue and related gross profit
margin.
Going Concern
Green Giant Inc.’s financial statements are prepared
assuming that the Company will continue as a going concern.
Green Giant Inc. incurred operating losses of $106.9
million and had negative operating cash flows of $0.8 million and may continue to incur operating losses and generate negative cash
flows as the Company implements its future business plan. In order to meet its working capital needs through the next twelve months and
to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or debt. Although
the Company intends to obtain additional financing to meet its cash needs, the Company may be unable to secure any additional financing
on terms that are favorable or acceptable to it, if at all
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Source:
cik:1158420
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name:Green Giant Inc.
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filing_type:10-K
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may continue to incur operating losses and generate negative cash
flows as the Company implements its future business plan. In order to meet its working capital needs through the next twelve months and
to fund the growth of the Company, the Company may consider plans to raise additional funds through the issuance of equity or debt. Although
the Company intends to obtain additional financing to meet its cash needs, the Company may be unable to secure any additional financing
on terms that are favorable or acceptable to it, if at all.
The ability of the Company to continue as a going concern is dependent
upon its ability to successfully execute its new business strategy and eventually attain profitable operations. The accompanying financial
statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.
Green Giant Inc. is transforming itself from legacy
business to a new energy corporation and has appointed a CEO in USA subsidiary to lead and operate the new business venture.
F-15
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fair value of financial instruments
Green Giant Inc. follows the provisions of ASC Topic
820, “Fair Value Measurements and Disclosures.” It clarifies the definition of fair value, prescribes methods for measuring
fair value, and establishes a fair
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
.
Green Giant Inc. is transforming itself from legacy
business to a new energy corporation and has appointed a CEO in USA subsidiary to lead and operate the new business venture.
F-15
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Fair value of financial instruments
Green Giant Inc. follows the provisions of ASC Topic
820, “Fair Value Measurements and Disclosures.” It clarifies the definition of fair value, prescribes methods for measuring
fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
Level 1-Inputs are unadjusted quoted prices in
active markets for identical assets or liabilities available at the measurement date.
Level 2-Inputs are unadjusted quoted prices for
similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not
active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.
Level 3-Inputs are unobservable inputs which reflect
the reporting entity’s own assumptions or what assumptions the market participants would use in pricing the asset or liability based
on the best available information.
The carrying amounts reported in the accompanying
consolidated balance sheets for cash, restricted cash and
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cik:1158420
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name:Green Giant Inc.
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filing_type:10-K
Text:
active markets, quoted prices for identical or similar assets and liabilities in markets that are not
active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.
Level 3-Inputs are unobservable inputs which reflect
the reporting entity’s own assumptions or what assumptions the market participants would use in pricing the asset or liability based
on the best available information.
The carrying amounts reported in the accompanying
consolidated balance sheets for cash, restricted cash and all other current assets, security deposits for land use rights, loans and all
current liabilities approximate their fair value based on the short-term maturity of these instruments. The fair value of the customer,
construction and security deposits approximate their carrying amounts because the deposits are received in cash. It was impractical to
estimate the fair value of the amount due from the local government and the other payables.
Foreign currency translation
Green Giant Inc.’s financial information is presented
in U.S. dollars. The functional currency of the Company’s operating VIE is Renminbi (“RMB”), the currency of the PRC.
The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC Topic 830-30 “Translation
of Financial Statements”. The financial information
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cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
was impractical to
estimate the fair value of the amount due from the local government and the other payables.
Foreign currency translation
Green Giant Inc.’s financial information is presented
in U.S. dollars. The functional currency of the Company’s operating VIE is Renminbi (“RMB”), the currency of the PRC.
The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC Topic 830-30 “Translation
of Financial Statements”. The financial information is first prepared in RMB and then is translated into U.S. dollars at year-end
exchange rates as to assets and liabilities and average exchange rates as to revenue,expenses and cash flows. Capital accounts are translated
at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are
included as a component of accumulated other comprehensive income (loss) in stockholders’ equity.
2022
2021
Year end RMB : USD exchange rate
7.1135
6.4434
Annual average RMB : USD exchange rate
6.5532
6.5072
The RMB is not freely convertible into foreign
currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
The effects of foreign currency translation adjustments are
included as a component of accumulated other comprehensive income (loss) in stockholders’ equity.
2022
2021
Year end RMB : USD exchange rate
7.1135
6.4434
Annual average RMB : USD exchange rate
6.5532
6.5072
The RMB is not freely convertible into foreign
currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB
amounts could have been, or could be, converted into U.S. dollars at the rates used in translation.
Cash
Cash includes cash on hand and demand deposits
in accounts maintained with large reputable commercial banks within the PRC. Green Giant Inc. considers all highly liquid investments with
original maturities of three months or less when purchased to be cash equivalents.
Restricted cash
The restricted cash is required by the banks as
collateral for mortgage loans given to the home buyers before obtaining the certificates of ownership of the properties as collateral.
In order to provide the banks with the certificates of ownership, the Company is required to complete certain procedures with the Chinese
government, which normally takes six to twelve months. Because the banks provide the loan proceeds to the Company
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
investments with
original maturities of three months or less when purchased to be cash equivalents.
Restricted cash
The restricted cash is required by the banks as
collateral for mortgage loans given to the home buyers before obtaining the certificates of ownership of the properties as collateral.
In order to provide the banks with the certificates of ownership, the Company is required to complete certain procedures with the Chinese
government, which normally takes six to twelve months. Because the banks provide the loan proceeds to the Company without obtaining
certificates of ownership as loan collateral during this six to twelve month period, the mortgage banks require the Company to maintain,
as restricted cash, 5% to 10% of the mortgage proceeds as security for the Company’s obligations under such guarantees. The restricted
cash is released by the banks once they receive the certificate of ownership. These deposits are not covered by insurance. Green Giant Inc.
has not experienced any losses in such accounts and management believes its restricted cash account is not exposed to any significant
risks.
F-16
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Security deposits for land use rights
Security deposits for land use rights consist
of deposits held by the PRC government for the purchase of
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
cash is released by the banks once they receive the certificate of ownership. These deposits are not covered by insurance. Green Giant Inc.
has not experienced any losses in such accounts and management believes its restricted cash account is not exposed to any significant
risks.
F-16
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Security deposits for land use rights
Security deposits for land use rights consist
of deposits held by the PRC government for the purchase of land use rights and the deposits held by an unrelated party to transfer its
land use rights to the Company. The deposits will be reclassified to real estate property under development upon the transfer of legal
title.
Real estate property development completed and under development
Real estate property consists of finished residential
unit sites, commercial offices and residential unit sites under development. Green Giant Inc. leases the land for the residential unit sites
under land use right leases with various terms from the PRC government. The cost of land use rights is included in the development cost
and allocated to each project. Real estate property development completed and real estate property under development are stated at the
lower of cost or fair value.
Expenditures for land development, including cost
of land use rights, deed tax,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
finished residential
unit sites, commercial offices and residential unit sites under development. Green Giant Inc. leases the land for the residential unit sites
under land use right leases with various terms from the PRC government. The cost of land use rights is included in the development cost
and allocated to each project. Real estate property development completed and real estate property under development are stated at the
lower of cost or fair value.
Expenditures for land development, including cost
of land use rights, deed tax, pre-development costs, and engineering costs, exclusive of depreciation, are capitalized and allocated to
development projects by the specific identification method. Costs are allocated to specific units within a project based on the ratio
of the sales area of units to the estimated total sales area of the project (or phase of the project) multiplied by the total cost of
the project (or phase of the project).
Cost of amenities transferred to buyers is allocated
to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving, etc. Once the projects
are completed, the amenities are under control of the property management companies.
Real estate property development completed and
under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
or phase of the project) multiplied by the total cost of
the project (or phase of the project).
Cost of amenities transferred to buyers is allocated
to specific units as a component of total construction cost. The amenity cost includes landscaping, road paving, etc. Once the projects
are completed, the amenities are under control of the property management companies.
Real estate property development completed and
under development are subject to valuation adjustments when the carrying amount exceeds fair value. An impairment loss is recognized only
if the carrying amount of the assets is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds
the sum of the undiscounted cash flows expected to be generated by the assets. Green Giant Inc. reviews all of its real estate projects for
future losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value of such
project. For the years ended September 30, 2022 and 2021, the Company recognized $73.6 million and nil impairment loss for its real
estate properties, respectively.
Capitalization of interest
Interest incurred during and directly related
to real estate development projects is capitalized to the related real estate property under development during the active development
period, which
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
future losses and impairment by comparing the estimated future undiscounted cash flows for each project to the carrying value of such
project. For the years ended September 30, 2022 and 2021, the Company recognized $73.6 million and nil impairment loss for its real
estate properties, respectively.
Capitalization of interest
Interest incurred during and directly related
to real estate development projects is capitalized to the related real estate property under development during the active development
period, which generally commences when borrowings are used to acquire real estate assets and ends when the properties are substantially
complete or the property becomes inactive. Interest is capitalized based on the interest rate applicable to specific borrowings or the
weighted average of the rates applicable to other borrowings during the period. Interest capitalized to real estate property under development
is recorded as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. For the
years ended September 30, 2022 and 2021, the total interest capitalized in the real estate property development was $6,612,142 and $7,043,303,
respectively.
Property, plant and equipment, net
Property, plant and equipment are recorded at
cost
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
period. Interest capitalized to real estate property under development
is recorded as a component of cost of real estate sales when related units are sold. All other interest is expensed as incurred. For the
years ended September 30, 2022 and 2021, the total interest capitalized in the real estate property development was $6,612,142 and $7,043,303,
respectively.
Property, plant and equipment, net
Property, plant and equipment are recorded at
cost less accumulated depreciation and any impairment losses. The cost of an asset comprises its purchase price and any directly attributable
costs of bringing the asset to its working condition and location for its intended use.
Depreciation is computed using the straight-line
method over the estimated useful lives of the assets, less any estimated residual value. Estimated useful lives of the assets are as follows:
Buildings
39 years
Machinery and office equipment
5-10 years
Vehicles
8 years
F-17
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Any gain or loss on disposal or retirement of
a fixed asset is recognized in the profit and loss account and is the difference between the net sales proceeds and the net carrying amount
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
the assets, less any estimated residual value. Estimated useful lives of the assets are as follows:
Buildings
39 years
Machinery and office equipment
5-10 years
Vehicles
8 years
F-17
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Any gain or loss on disposal or retirement of
a fixed asset is recognized in the profit and loss account and is the difference between the net sales proceeds and the net carrying amount
of the asset. When property and equipment are retired or otherwise disposed of, the asset and accumulated depreciation are removed from
the accounts and the resulting profit or loss is reflected in income (loss).
Maintenance, repairs and minor renewals are charged
directly to expense as incurred unless such expenditures extend the useful life or represent a betterment, in which case they are capitalized.
Impairment of long-lived assets
Green Giant Inc. reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the
estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment
exists, an impairment loss will be recognized for the amount by which the carrying
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
such expenditures extend the useful life or represent a betterment, in which case they are capitalized.
Impairment of long-lived assets
Green Giant Inc. reviews its long-lived assets for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the
estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment
exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value.
Assets are grouped and evaluated at the lowest
level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. Green Giant Inc. considers
historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of
the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds
estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the
asset to its fair value. The estimation of fair value is generally determined by using the asset’s expected future discounted cash
flows or market value. Green Giant Inc. estimates fair value of the assets based on certain assumptions such as budgets,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
carrying amount of
the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds
estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the
asset to its fair value. The estimation of fair value is generally determined by using the asset’s expected future discounted cash
flows or market value. Green Giant Inc. estimates fair value of the assets based on certain assumptions such as budgets, internal projections,
and other available information as considered necessary. There impairment of long-lived assets is $78.9 million and nil for the years
ended September 30, 2022 and 2021.
For contract assets and prepayment of uncompleted
projects, the Company adopts aging analysis and discounted cash flow by attaching a percentage rate to calculate impair loss respecctively.
Customer deposits
Customer deposits consist of amounts received
from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for
the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the
Company upon the completion of the financing rather than the completion of the project. Green Giant Inc.
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Company adopts aging analysis and discounted cash flow by attaching a percentage rate to calculate impair loss respecctively.
Customer deposits
Customer deposits consist of amounts received
from customers relating to the sale of residential units in the PRC. In the PRC, customers will generally obtain permanent financing for
the purchase of their residential unit prior to the completion of the project. The lending institution will provide the funding to the
Company upon the completion of the financing rather than the completion of the project. Green Giant Inc. receives these funds and recognizes
them as a liability until the revenue can be recognized.
Property warranties
Green Giant Inc. provides its customers with warranties
which cover major defects of the building structure and certain fittings and facilities of properties sold. The warranty period varies
from two years to five years, depending on different property components the warranty covers. Green Giant Inc. continually estimates potential
costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a property. Reserves
are determined based on historical data and trends with respect to similar property types and geographical areas. Green Giant Inc. continually
monitors the warranty reserve and makes adjustments to its pre-existing warranties, if any, in order to reflect changes in trends and
historical data as information becomes available
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
five years, depending on different property components the warranty covers. Green Giant Inc. continually estimates potential
costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a property. Reserves
are determined based on historical data and trends with respect to similar property types and geographical areas. Green Giant Inc. continually
monitors the warranty reserve and makes adjustments to its pre-existing warranties, if any, in order to reflect changes in trends and
historical data as information becomes available. Green Giant Inc. may seek further recourse against its contractors or any related third parties
if it can be proved that the faults are caused by them. In addition, the Company also withholds up to 2% of the contract cost from sub-contractors
for periods of two to five years. These amounts are included in construction deposits, and are only paid to the extent that there has
been no warranty claim against the Company relating to the work performed or materials supplied by the subcontractors. For the years
ended September 30, 2022 and 2021, the Company had not recognized any warranty costs in excess of the amount retained from subcontractors
and therefore, no warranty reserve is considered necessary at the balance sheet dates.
Construction deposits
Construction deposits are
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
to five years. These amounts are included in construction deposits, and are only paid to the extent that there has
been no warranty claim against the Company relating to the work performed or materials supplied by the subcontractors. For the years
ended September 30, 2022 and 2021, the Company had not recognized any warranty costs in excess of the amount retained from subcontractors
and therefore, no warranty reserve is considered necessary at the balance sheet dates.
Construction deposits
Construction deposits are the warranty deposits
the real estate contractors provide to the Company upon signing the construction contracts. Green Giant Inc. can use such deposits to reimburse
customers in the event of customer claims due to construction defects. The remaining balance of the deposits are returned to the contractors
when the terms of the after-sale property warranty expires, which normally occurs within two to five years after the date of the deposit.
Income taxes
In accordance with FASB ASC Topic 740 “Income
Taxes,” deferred tax assets and liabilities are for the expected future tax consequences of events that have been included in the
financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years
of differences between the tax bases of assets and liabilities and their financial reporting amounts
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
after-sale property warranty expires, which normally occurs within two to five years after the date of the deposit.
Income taxes
In accordance with FASB ASC Topic 740 “Income
Taxes,” deferred tax assets and liabilities are for the expected future tax consequences of events that have been included in the
financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years
of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted
tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation
allowances is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized.
F-18
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ASC 740-10-25 prescribes a more-likely-than-not
threshold for consolidated financial statement recognition and measurement of a tax positions taken (or expected to be taken) in a tax
return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income
tax assets and liabilities, accounting for interest and penalties associated with tax positions, years
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
18
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
ASC 740-10-25 prescribes a more-likely-than-not
threshold for consolidated financial statement recognition and measurement of a tax positions taken (or expected to be taken) in a tax
return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income
tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination,
accounting for income taxes in interim periods and income tax disclosures. There are no material uncertain tax positions as of September
30, 2022 and September 30, 2021.
Green Giant Inc. is a corporation organized under the
laws of the State of Florida. However, all of the Company’s operations are conducted solely by its subsidiaries and VIE in the PRC. No
income is earned in the United States and the management does not repatriate any earnings outside the PRC. As a result, the Company did
not generate any U.S. taxable income for the years ended September 30, 2022 and 2021. As of September 30, 2022, the Chinese
entities’ income tax
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
of Florida. However, all of the Company’s operations are conducted solely by its subsidiaries and VIE in the PRC. No
income is earned in the United States and the management does not repatriate any earnings outside the PRC. As a result, the Company did
not generate any U.S. taxable income for the years ended September 30, 2022 and 2021. As of September 30, 2022, the Chinese
entities’ income tax returns filed in China for the years ended December 31, 2021, 2020, 2019, 2018, 2017 and 2016 are
subject to examination by the Chinese taxing authorities.
The parent Company, China HGS Real Estate Inc.’s
both U.S. federal tax returns and Florida state tax returns are delinquent since 2009. Its tax years ended September 30, 2009
through September 30, 2021 remain open for statutory examination by U.S. federal and state tax authorities.
On December 22, 2017, the Tax Cuts and Jobs
Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Inc.’s
both U.S. federal tax returns and Florida state tax returns are delinquent since 2009. Its tax years ended September 30, 2009
through September 30, 2021 remain open for statutory examination by U.S. federal and state tax authorities.
On December 22, 2017, the Tax Cuts and Jobs
Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but
are not limited to, a U.S. corporate tax rate decrease from 35% to 21% effective for tax years beginning after
December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time
transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Due to the complexity
involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded accrued amounts in our consolidated
financial statements as of September 30, 2022 and 2021, including an approximately $2.3 million provision on the deemed repatriation
of undistributed
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
system to a territorial system, and a one-time
transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Due to the complexity
involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded accrued amounts in our consolidated
financial statements as of September 30, 2022 and 2021, including an approximately $2.3 million provision on the deemed repatriation
of undistributed foreign earnings and an additional $0.8 million provision for delinquent U.S. and State tax fillings. Green Giant Inc. is
in the process of engaging a tax professional to file its delinquent tax returns. Failure to furnish any income tax and information returns
with respect to any foreign business entity required, within the time prescribed by the IRS, subjects the Company to civil penalties.
Land appreciation tax (“LAT”)
In accordance with the relevant taxation laws
in the PRC, the Company is subject to LAT based on progressive rates ranging from 30% to 60% on the appreciation of land value, which
is calculated as the proceeds of sales of properties less deductible expenditures including borrowing costs and all property development
expenditures. LAT is exempted if
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
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filing_type:10-K
Text:
respect to any foreign business entity required, within the time prescribed by the IRS, subjects the Company to civil penalties.
Land appreciation tax (“LAT”)
In accordance with the relevant taxation laws
in the PRC, the Company is subject to LAT based on progressive rates ranging from 30% to 60% on the appreciation of land value, which
is calculated as the proceeds of sales of properties less deductible expenditures including borrowing costs and all property development
expenditures. LAT is exempted if the appreciation values do not exceed certain thresholds specified in the relevant tax laws.
The whole project must be completed before the
LAT obligation can be assessed. Accordingly, the Company should record the liability and the total related expense at the completion of
a project unless the tax authorities impose an assessment at an earlier date. The methods to implement this tax law vary among different
geographic areas. Hanzhong, where the projects Mingzhu Garden, Nan Dajie and Central Plaza are located, implements this tax rule by
requiring real estate companies prepay the LAT based upon customer deposits received. The tax rate in Hanzhong is 1%. Yang County, where
the Yangzhou Pearl Garden and Yangzhou Palace projects are located, has a tax rate
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
assessment at an earlier date. The methods to implement this tax law vary among different
geographic areas. Hanzhong, where the projects Mingzhu Garden, Nan Dajie and Central Plaza are located, implements this tax rule by
requiring real estate companies prepay the LAT based upon customer deposits received. The tax rate in Hanzhong is 1%. Yang County, where
the Yangzhou Pearl Garden and Yangzhou Palace projects are located, has a tax rate of 0.5%.
Comprehensive income (loss)
In accordance with ASC 220-10-55, comprehensive
income (loss) is defined as all changes in equity except those resulting from investments by owners and distributions to owners. Green Giant Inc.’s
only components of comprehensive income (loss) for the years ended September 30, 2022 and 2021 were net income and foreign currency
translation adjustments.
Advertising expenses
Advertising costs are expensed as incurred. For
the years ended September 30, 2022 and 2021, the Company recorded advertising expenses of $4,593 and $59,481, respectively.
F-19
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Share
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
income (loss) for the years ended September 30, 2022 and 2021 were net income and foreign currency
translation adjustments.
Advertising expenses
Advertising costs are expensed as incurred. For
the years ended September 30, 2022 and 2021, the Company recorded advertising expenses of $4,593 and $59,481, respectively.
F-19
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Share-based Compensation
Green Giant Inc. accounts for share-based awards to employees and nonemployees
directors and consultants in accordance with the provisions of ASC 718, Compensation—Stock Compensation, and under the recently
issued guidance following FASB’s pronouncement, ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to
Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, for employee stock-based awards, share-based
compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting
on a straight-line basis over the requisite service period for the entire award. For the non-employee stock-based awards, the fair value
of the awards to
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
07, Compensation—Stock Compensation (Topic 718): Improvements to
Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, for employee stock-based awards, share-based
compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting
on a straight-line basis over the requisite service period for the entire award. For the non-employee stock-based awards, the fair value
of the awards to non-employees are measured every reporting period based on the value of the Company’s common stock.
Basic and diluted earnings (loss) per share
Green Giant Inc. computes earnings (loss) per share (“EPS”)
in accordance with the FASB ASC Topic 260, “Earnings per share,” which requires companies to present basic and diluted EPS.
Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS is similar
to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and
warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares
that have
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
arnings per share,” which requires companies to present basic and diluted EPS.
Basic EPS is measured as net income (loss) divided by the weighted average common shares outstanding for the period. Diluted EPS is similar
to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and
warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares
that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation
of diluted EPS. As of September 30, 2022, there were outstanding warrants to purchase approximately 30,741,366 shares of the
Company’s common stock (September 30, 2021-nil), which resulted in 13,866,348 dilutive shares for the twelve months ended September
30, 2022.
Concentration risk
Green Giant Inc.’s operations are carried out
in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political,
economic and legal environment in the PRC, and by the general state of the PRC
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
shares of the
Company’s common stock (September 30, 2021-nil), which resulted in 13,866,348 dilutive shares for the twelve months ended September
30, 2022.
Concentration risk
Green Giant Inc.’s operations are carried out
in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political,
economic and legal environment in the PRC, and by the general state of the PRC’s economy. Green Giant Inc.’s operations in the
PRC are subject to specific considerations and significant risks not typically associated with companies in North America. Green Giant Inc.’s
results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures,
currency conversion and remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially
subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Green Giant Inc.’s cash
and restricted cash were on deposit at financial institutions in the PRC, which the management believes are of high credit quality. In
May, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as
commercial
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YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
currency conversion and remittances abroad, and rates and methods of taxation, among other things. Financial instruments which potentially
subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. Green Giant Inc.’s cash
and restricted cash were on deposit at financial institutions in the PRC, which the management believes are of high credit quality. In
May, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as
commercial banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with
them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Company’s accounts, as its
aggregate deposits are much higher than the compensation limit of RMB500,000 (approximately $77,599). However, the Company believes that
the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in China and the Company believes that the Chinese
banks that hold the Company’s cash and restricted cash are financially sound based on public available information. Green Giant Inc.
has not experienced any losses in its bank accounts.
For the year ended September 30, 2022, the Company
had real estate sales revenue of $
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
RMB500,000 (approximately $77,599). However, the Company believes that
the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in China and the Company believes that the Chinese
banks that hold the Company’s cash and restricted cash are financially sound based on public available information. Green Giant Inc.
has not experienced any losses in its bank accounts.
For the year ended September 30, 2022, the Company
had real estate sales revenue of $nil related to sales to the local government for residence reallocation purposes, representing 0% of
the Company’s total real estate sales revenue for the year ended September 30, 2022.
Recent Accounting Pronouncements
Green Giant Inc. considers the applicability
and impact of all ASUs. Management periodically reviews new accounting standards that are issued.
In
June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all
expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable
and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial
assets measured at
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
ASUs. Management periodically reviews new accounting standards that are issued.
In
June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all
expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable
and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial
assets measured at amortized cost. ASU 2016-13 was subsequently amended by ASU 2018-19, Codification Improvements to Topic 326, Financial
Instruments — Credit Losses, ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments — Credit Losses,
Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU 2019-05, Targeted Transition Relief.
For public entities, ASU 2016-13 and its amendments is effective for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
, Financial Instruments — Credit Losses,
Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU 2019-05, Targeted Transition Relief.
For public entities, ASU 2016-13 and its amendments is effective for fiscal years, and interim periods within those fiscal years, beginning
after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December
15, 2022, including interim periods within those fiscal years. As a smaller reporting company,
the Company plans to adopt this guidance effective October 1, 2023.
In December 2019, the
FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as
part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification
Initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or
improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as
part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification
Initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or
improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification
in this Update were submitted by stakeholders as part of the Simplification Initiative. For public business entities, the amendments
in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The
Company adopted this guidance on July 1, 2021 and the adoption of this ASU did not have a material impact on its consolidated financial
statements.
F-20
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In August 2020, the FASB issued ASU 2020-06,
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
on July 1, 2021 and the adoption of this ASU did not have a material impact on its consolidated financial
statements.
F-20
GREEN GIANT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In August 2020, the FASB issued ASU 2020-06,
Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own
Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06). The
amendments in ASU 2020-06 simplify the accounting for convertible instruments by removing major separation models and removing certain
settlement condition qualifiers for the derivatives scope exception for contracts in an entity’s own equity, and simplify the related
diluted net income per share calculation for both Subtopics. ASU 2020-06 is effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2023, for smaller reporting companies, as defined by the SEC. Early adoption is permitted,
but no earlier than fiscal years beginning after December 15
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
and removing certain
settlement condition qualifiers for the derivatives scope exception for contracts in an entity’s own equity, and simplify the related
diluted net income per share calculation for both Subtopics. ASU 2020-06 is effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2023, for smaller reporting companies, as defined by the SEC. Early adoption is permitted,
but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.
In October 2021, the FASB issued ASU 2021-08, Business Combinations
(Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which the amendments in this Update
require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in
accordance with Topic 606.The amendments in this Update address how to determine whether a contract liability is recognized by the acquirer
in a business combination. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal
years. Early adoption is permitted, including early adoption in an interim period,
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
amendments in this Update
require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in
accordance with Topic 606.The amendments in this Update address how to determine whether a contract liability is recognized by the acquirer
in a business combination. The ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal
years. Early adoption is permitted, including early adoption in an interim period, for periods for which financial statements have not
yet been issued.
Management has considered all other recent accounting
pronouncements issued. Green Giant Inc.’s management believes that these recent pronouncements will not have a material effect on the
Company’s financial statements.
NOTE 3. PREPAYMENT FOR EQUIPMENT
As of September 30, 2022 and 2021, prepayment
for energy equipment was as follows:
As of September 30,
2022
2021
Energy Equipments
26,936,915
Total
26,936,915
The above prepayment was for the Company's new
business on green energy. The counterparties are Golden Mainland Inc. and Golden Ocean Inc.
NOTE 4. REAL ESTATE PROPERTY COM
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
FOR EQUIPMENT
As of September 30, 2022 and 2021, prepayment
for energy equipment was as follows:
As of September 30,
2022
2021
Energy Equipments
26,936,915
Total
26,936,915
The above prepayment was for the Company's new
business on green energy. The counterparties are Golden Mainland Inc. and Golden Ocean Inc.
NOTE 4. REAL ESTATE PROPERTY COMPLETED AND UNDER
DEVELOPMENT
The following summarizes the components of real
estate property completed and under development as of September 30, 2022 and 2021:
Balance as of:
September 30,
September 30,
2022
2021
Development completed:
Hanzhong City Mingzhu Garden Phase II
20,672,000
23,464,365
Hanzhong City Oriental Pearl Garden
17,425,514
19,435,711
Yang County Yangzhou Pearl Garden Phase II
2,039,912
2,250,388
Yang County Yangzhou Palace
34,635,104
42,995,377
Real estate property development completed
74,772,530
88
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
Development completed:
Hanzhong City Mingzhu Garden Phase II
20,672,000
23,464,365
Hanzhong City Oriental Pearl Garden
17,425,514
19,435,711
Yang County Yangzhou Pearl Garden Phase II
2,039,912
2,250,388
Yang County Yangzhou Palace
34,635,104
42,995,377
Real estate property development completed
74,772,530
88,145,841
Under development:
Hanzhong City Liangzhou Road and related projects (a)
173,289,941
180,389,654
Hanzhong City Hanfeng Beiyuan East (b)
786,954
868,796
Hanzhong City Beidajie (b)
31,144,446
34,763,987
Yang County East 2nd Ring Road (c)
7,904,869
6,435,712
Real estate property under development
213,126,210
222,458,149
Impairment
(67,825,622
Real estate property under development
145,300,588
222,458,149
(a)
In September
|
YOU are a financial analyst. You are reading a report of a company.
The report is about the company's financial status.
Source:
cik:1158420
ticker:GGE
name:Green Giant Inc.
exchange:Nasdaq
filing_type:10-K
Text:
796
Hanzhong City Beidajie (b)
31,144,446
34,763,987
Yang County East 2nd Ring Road (c)
7,904,869
6,435,712
Real estate property under development
213,126,210
222,458,149
Impairment
(67,825,622
Real estate property under development
145,300,588
222,458,149
(a)
In September 2013, the Company entered into an agreement (“Liangzhou Agreement”) with
the Hanzhong local government on the Liangzhou Road reformation and expansion project (Liangzhou Road Project”). Pursuant to the
agreement, the Company is contracted to reform and expand the Liangzhou Road, a commercial street in downtown Hanzhong City, with a total
length of 2,080 meters and a width of 30 meters and to resettle the existing residences in the Liangzhou road area. The government’s
original road construction budget was approximately $33 million in accordance with the Liangzhou Agreement. Green Giant Inc., in return, is
being compensated by the local government to have an exclusive right on acquiring at least 394
|
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