NuZee(NUZE) - 2025 Q4 - Annual Report

Financial Performance - CIMG Inc. reported net revenues of $61,578 for the three months ended June 30, 2025, a decrease of 83.2% compared to $366,888 for the same period in 2024[16] - The company's gross profit for the three months ended June 30, 2025, was $5,133, compared to a gross loss of $146,213 in the prior year, indicating a significant improvement in cost management[16] - CIMG Inc. reported a net loss of $1,068,242 for the three months ended June 30, 2025, compared to a net loss of $1,440,197 for the same period in 2024, representing a 25.8% improvement[16] - For the nine months ended June 30, 2025, the net loss from continuing operations was $2,990,047, compared to a net loss of $5,242,739 for the same period in 2024, indicating a reduction in losses[25] - For the nine months ended June 30, 2025, the company reported revenues of $84,431, a significant decrease of 94.85% compared to $1,641,955 for the same period in 2024[95] - The net loss for the nine months ended June 30, 2025 was $2,990,047, a reduction of 43.5% from the net loss of $5,242,739 in the same period of 2024[95] Operating Expenses and Management - Operating expenses for the three months ended June 30, 2025, were $1,117,290, down from $1,335,371 in the same period last year, reflecting a reduction of approximately 16.4%[16] - Operating expenses for the nine months ended June 30, 2025 were $3,387,725, down 28.7% from $4,748,076 in the prior year[72][73][95] Assets and Liabilities - The total assets of CIMG Inc. increased to $13,309,302 as of June 30, 2025, compared to $5,587,655 as of September 30, 2024, indicating a growth of 138.5%[14] - Current liabilities decreased to $2,671,985 as of June 30, 2025, from $6,238,323 as of September 30, 2024, a reduction of approximately 57.0%[14] - The company’s accumulated deficit increased to $85,335,700 as of June 30, 2025, compared to $82,344,722 as of September 30, 2024, reflecting ongoing financial challenges[14] Cash Flow and Financing - The company reported a significant increase in cash provided by financing activities, totaling $10,964,632 for the nine months ended June 30, 2025, compared to $3,626,638 for the same period in 2024[25] - As of June 30, 2025, the total cash balance was $35,958, a decrease from $374,458 at the end of June 30, 2024[25] - The company issued 6,000,000 shares of common stock in a private placement, raising approximately $451,628[22] - The Company anticipates needing to raise additional capital immediately to fund operations, with no assurance of obtaining funds on commercially acceptable terms[38] Strategic Initiatives - The company is focusing on expanding its co-packing services and developing innovative new products to enhance revenue streams[12] - CIMG Inc. completed the acquisition of Beijing Xilin and Huomao, enhancing its market presence in Asia[32] - The company is expanding its sales and distribution channels in Asia to include a broader range of consumer food and beverage products, leveraging an online sales platform[28] Legal and Compliance Issues - The Company is facing a lawsuit from Mr. Sooncha Kim, claiming damages of $1,041,216 due to alleged breaches of a Convertible Note and Warrant Purchase Agreement[123] - A judgment by default of $58,920.34 was entered against the Company in a lawsuit filed by former directors for unpaid fees and expenses[125] - The total amount of judgments sought by the former directors is $222,062.28, reflecting individual claims for Kevin Connor ($54,000), Chris Jones ($52,125), Nobuki Kurita ($46,500), and David Robson ($50,250)[126] Inventory and Receivables - As of June 30, 2025, total inventory was valued at $11,882,544, a substantial increase from $4,548,035 as of September 30, 2024[78][79] - Total accounts receivable as of June 30, 2025, was $75,630, with no allowance for credit loss[45] Other Financial Metrics - The company recorded a foreign currency translation gain of $42,408 for the nine months ended December 31, 2023[22] - The Company recorded a total of $1,248,957 in prepaid expenses and other current assets as of June 30, 2025, significantly higher than $382,648 as of September 30, 2024[77] - Other income for the nine months ended June 30, 2025 was $452,142, primarily due to the settlement and forgiveness of accounts payable, compared to $412,580 in 2024[74][75]