AAGH 10-K/A
America Great Health (AAGH)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Amendment No.1)
For the fiscal year ended
For the transition period from to
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(Exact name of registrant as specified in its charter)
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EXPLANATORY NOTE
America Great Health (the “Company”) is filing this Amendment No. 1 on Form 10-K/A (the “Amended 10-K’’) to amend the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Original 10-K”), originally filed with the Securities and Exchange Commission (the “SEC”) on October 13, 2023, solely to amend the Report of Independent Registered Public Accounting Firm included in Item 15. F2 – Report of Independent Registered Public Accounting Firm TAAD LLP (PCABO ID #5854). The correct exhibit should be the Report of Independent Registered Public Accounting Firm included in Item 15. F2 – Report of Independent Registered Public Accounting Firm WWC P.C. (PCABO ID #1171). The Company did not get the appropriate approval from WWC P.C. when Form 10K was filed.
Another amendment is to the follow note:
NOTE 3 – OTHER ASSET
As of June 30, 2023 and 2022, other receivable amounted to $11,836 and $13,836, respectively. Other receivable consists of the following:
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June 30, 2023 |
June 30, 2022 |
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Rent deposits |
11,836 | 13,836 | ||||||
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Total |
11,836 | 13,836 | ||||||
Except as described above, no other amendments are being made to the Original 10-K. This Amended 10-K does not reflect events occurring after the filing of the Original 10-K or modify or update the disclosure contained therein in any way other than as required to reflect the amendments discussed above.
The Company has attached to this Amended 10-K updated certifications executed as of the date of this Amended 10-K by the Principal Executive Officer and Principal Financial Officer as required by Sections 302 and 906 of the Sarbanes Oxley Act of 2002. These updated certifications are attached as Exhibits 31.1 and 32.1 to this Amended 10-K.
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Report of Independent Registered Public Accountant Firm
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To: The Board of Directors and Stockholders of
America Great Health and Subsidiaries
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of America Great Health and Subsidiaries (the “Company”) as of June 30, 2022, and the related consolidated statements of operations, stockholders' deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2022, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
Going Concern Matter
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company had a net working capital deficit as of June 30, 2022, and the Company has suffered recurring losses from operations that raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 financial statements are free of material misstatement, whether due to error or fraud. The Company 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 audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error 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 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 board of directors, as the Company does not have an audit committee and that (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the 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 matter below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.
Investment in Purecell Group (“Purecell”)
As described in Note 1,8 and 9 to the consolidated financial statements, the Company issued 545,000,000 shares to acquire 51% of Purecell’s equity interest. Management reviews its equity investment in Purecell and accounted for under the equity methods because the Company does not have significant control over Purecell. The Company hired an external valuation firm to perform 409A valuation as of the acquisition date to determine the fair value of the Company’s common share. The share was valued at $0.00001 per share. On the contract, the management states of Purecell’s autonomy operation, and fail to clarify the shares of revenue or profit. In addition, the management team failed to negotiate with an amendment on such an agreement. The nature of the acquisition given that Purecell attracted millions of substantial capital investment is questionable.
We determined that the presentation and carrying value of the investment in Purecell was a critical audit matter because there is significant judgment and estimation necessary to determine that the investment was properly classified as an equity method investment and that the related carrying value was properly measured. Addressing this matter involved understanding the Company’s methodology and the reasonableness of their assumptions, performing independent analysis and evaluating audit evidence to mitigate the risk of material misstatement.
Fair Value of Shares
We determined that fair value of shares related to issuance of common stock as compensation and for the issuance of common stock as component of a financing transaction that also included debt issuance required estimation and significant judgement. In order to address this critical audit matter, we were required to gain an understanding of the Company’s methodology, assumptions and inputs in developing their estimation for the value of the shares. We also performed our own independent analysis and estimate of the value shares issued to mitigate the risk of material misstatement.
/s/ WCC, P.C.
WWC, P.C.
San Mateo, CA
Certified Public Accountants
PCAOB ID: 1171
We have served as the Company’s auditor since March 02, 2022
October 31, 2022
(b) Exhibits. The following exhibits of the Company are included herein.
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31.1 |
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32.1 |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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AMERICA GREAT HEALTH |
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Date: November 15, 2023 |
/s/ Quinn Chen |
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Quinn Chen, Chief Financial Officer |
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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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Date: November 15, 2023 |
/s/ Mike Q. Wang |
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Mike Q. Wang, President, Chief Executive Officer, |
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Secretary and Director |
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