CIMG lnc(IMG) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION Cautionary Note Regarding Forward-Looking Statements This section cautions that forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, with no obligation for updates - Forward-looking statements are based on information available at the time they are made and management's good faith belief, subject to risks and uncertainties that could cause actual results to differ materially[10] - The company does not undertake any obligation to update or revise forward-looking statements, cautioning against undue reliance on them[11] - Key factors that could cause differences include funding plans, capital resources, estimates accuracy, Nasdaq listing compliance, economic conditions, market preferences, competition, strategic transaction results, reliance on third-party partners, regulatory developments, retention of key personnel, intellectual property protection, corporate infrastructure, litigation outcomes, financial performance, and use of offering proceeds[12] Item 1. FINANCIAL STATEMENTS This section presents CIMG Inc.'s unaudited consolidated financial statements, including Balance Sheets, Statements of Operations, Comprehensive Loss, Changes in Stockholders' Equity, and Cash Flows, with detailed notes for the quarter ended December 31, 2024 Consolidated Balance Sheets (unaudited) - Cash & cash equivalents decreased significantly from $464,222 to $124,715 - Total stockholders' equity turned positive, increasing from an accumulated deficit of $(650,668) to $1,527,570 | ASSETS (Unaudited) | December 31, 2024 ($) | September 30, 2024 ($) | | :------------------- | :-------------------- | :--------------------- | | Cash & cash equivalent | 124,715 | 464,222 | | Inventories, net | 4,608,307 | 4,548,035 | | Total current assets | 5,034,920 | 5,405,641 | | Total assets | 5,167,814 | 5,587,655 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Accounts payable and accrued expenses | 1,820,200 | 2,240,337 | | Short term loan | 433,512 | 1,920,507 | | Convertible Notes | 678,308 | 1,063,624 | | Total current liabilities | 3,640,244 | 6,238,323 | | Total liabilities | 3,640,244 | 6,238,323 | | Total stockholders' equity | 1,527,570 | (650,668) | Consolidated Statements of Operations (unaudited) - Net revenues decreased significantly from $965,932 in Q4 2023 to $22,853 in Q4 2024 - Net loss improved from $(2,148,611) in Q4 2023 to $(1,536,249) in Q4 2024, and basic/diluted loss per share improved from $(1.84) to $(0.17) | (Unaudited) | Three Months Ended Dec 31, 2024 ($) | Three Months Ended Dec 31, 2023 ($) | | :------------ | :---------------------------------- | :---------------------------------- | | Revenues, net | 22,853 | 965,932 | | Cost of sales | (7,374) | (841,398) | | Gross profit | 15,479 | 124,534 | | Operating expenses | (1,517,758) | (2,145,642) | | Loss from operations | (1,502,279) | (2,021,108) | | Net loss | (1,536,249) | (2,148,611) | | Basic and diluted loss per common share | (0.17) | (1.84) | Consolidated Statements of Comprehensive Loss (unaudited) - The foreign currency translation adjustment resulted in a loss of $(192,038) in Q4 2024, compared to a gain of $42,408 in Q4 2023 | (Unaudited) | Three Months Ended Dec 31, 2024 ($) | Three Months Ended Dec 31, 2023 ($) | | :------------ | :---------------------------------- | :---------------------------------- | | Net loss | (1,536,249) | (2,148,611) | | Foreign currency translation | (192,038) | 42,408 | | Total other comprehensive income (loss), net of tax | (192,038) | 42,408 | | Comprehensive loss | (1,728,287) | (2,106,203) | Consolidated Statements of Changes in Stockholders' Equity (unaudited) - Total common stock shares outstanding increased from 4,978,245 to 10,739,800 during the quarter[23] - Additional paid-in capital increased by $3,906,468, primarily from common stock issued for cash, compensation, and private placement[23] - Total stockholders' equity improved from a deficit of $(650,668) to a positive balance of $1,527,570[23] | (Unaudited) | Balance Sep 30, 2024 ($) | Common Stock issued for cash ($) | Common stock compensation ($) | Issued private placement ($) | Issued warrants ($) | Other comprehensive income ($) | Net loss ($) | Balance Dec 31, 2024 ($) | | :------------ | :----------------------- | :------------------------------- | :---------------------------- | :--------------------------- | :------------------ | :----------------------------- | :----------- | :----------------------- | | Common Stock Shares | 4,978,245 | 1,396,813 | 800,000 | 3,508,769 | 55,973 | - | - | 10,739,800 | | Amount | 50 | 13 | 8 | 35 | 1 | - | - | 107 | | Additional paid-in capital | 81,260,605 | 1,382,831 | 523,672 | 1,999,965 | - | - | - | 85,167,073 | | Accumulated deficit | (82,344,722) | - | - | - | - | - | (1,536,249) | (83,880,971) | | Accumulated Comprehensive income | 433,399 | - | - | - | - | (192,038) | - | 241,361 | | Total | (650,668) | 1,382,844 | 523,680 | 2,000,000 | 1 | (192,038) | (1,536,249) | 1,527,570 | Consolidated Statements of Cash Flows (unaudited) - Net cash used in operating activities decreased from $(2,193,439) in Q4 2023 to $(1,338,781) in Q4 2024[26] - Investing activities showed no cash usage in Q4 2024, a significant change from $(307,044) used in Q4 2023[26] - Cash at the end of the period was $124,715, a decrease from the beginning of the period but an increase compared to $116,067 in Q4 2023[26] | (Unaudited) | Three Months Ended Dec 31, 2024 ($) | Three Months Ended Dec 31, 2023 ($) | | :------------ | :---------------------------------- | :---------------------------------- | | Net cash used in operating activities | (1,338,781) | (2,193,439) | | Net cash used in investing activities | 0 | (307,044) | | Net cash provided by financing activities | 1,191,312 | 1,65