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 $1,069,173 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 revenues were $84,431, a significant decrease of 94.85% compared to $1,641,955 for the same period in 2024[95]. - The gross profit for the nine months ended June 30, 2025 was $20,612, compared to a gross loss of $178,185 for the same period in 2024[95]. - The net loss from continuing operations for the nine months ended June 30, 2025 was $2,990,047, an improvement from a net loss of $4,663,887 in the same period of 2024[95]. Expenses and Liabilities - 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 28.69% from $4,748,076 in the prior year[72][73]. - 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 57.1%[14]. - The total current liabilities, including accounts payable and accrued expenses, decreased to $1,628,598 as of June 30, 2025, from $2,240,337 as of September 30, 2024[69]. - The accounts payable decreased to $482,000 as of June 30, 2025, down 56.17% from $1,098,582 as of September 30, 2024[69]. - Accrued expenses slightly increased to $1,146,598 as of June 30, 2025, compared to $1,141,755 as of September 30, 2024[69]. Assets and Capital - 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]. - As of June 30, 2025, the company reported cash of $35,958 and working capital of $10,571,104[37]. - The company experienced a significant increase in cash used in operating activities, totaling $11,233,693 for the nine months ended June 30, 2025, compared to $4,270,542 for the same period in 2024[25]. - CIMG Inc. issued 19,457,618 shares of common stock for cash, raising approximately $9,561,299 during the reporting period[25]. - The company issued 6,000,000 shares of common stock for a total value of $1,068,480 at a purchase price of $0.17808 per share on June 2, 2025[112]. - The Company raised $4,000,000 through a private placement of convertible notes at a conversion price of $0.24 per share, maturing on August 31, 2026[128]. Strategic Initiatives - The company is focusing on expanding its co-packing services to other products complementary to its current offerings, aiming to enhance revenue streams[12]. - CIMG Inc. is transitioning from a focus on specialty coffee to a broader range of consumer food and beverage products, leveraging an online sales platform[28]. - The company plans to expand its sales and distribution channels in Asia, aiming to enhance its market reach and product offerings[28]. - The company completed the acquisition of Beijing Xilin and Huomao in March and April 2025, respectively, expanding its market presence in China[32]. - Zhongyan, a wholly-owned subsidiary of the Company, acquired 51% equity interest in Shenzhen Zhimeng Qiyang Technology Co., Ltd. for a total valuation of RMB13,000,000[129]. - The Company established a new wholly-owned subsidiary, Beijing Zhongyan Shangyue Holdings Co., LTD, on September 3, 2025[130]. Legal and Compliance - The Company is currently involved in ongoing legal proceedings related to the Kim Litigation and the Ex-Directors lawsuit, with no trial dates set[124][134]. - Mr. Sooncha Kim filed a complaint against the Company seeking $1,041,216 in damages for alleged breaches of a Convertible Note and Warrant Purchase Agreement[123]. - A judgment by default was entered against the Company for $58,920.34 in the Ex-Directors lawsuit, with total claims expected to reach $222,062.28 after amendments[126]. - The Company entered into a settlement agreement with a former employee, paying $125,000 to resolve a lawsuit[122]. - The Company believes it has a basis to defend against the claims in the Kim Litigation, although the outcome remains uncertain[125]. Financial Challenges - 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 a rise of 3.6%[14]. - The total accumulated deficit as of June 30, 2025, was $(85,335,700), reflecting ongoing financial challenges[25]. - The company anticipates needing to raise additional capital immediately to fund operations, with no assurance of obtaining funds on commercially acceptable terms[38]. - The company recognized a foreign currency translation loss of $(178,895) for the nine months ended June 30, 2025[25]. - The company recorded total accounts receivable of $75,630 as of June 30, 2025, compared to $3,450,141 as of September 30, 2024, reflecting a significant decrease[44][45]. - The company recorded an allowance for credit loss of $Nil as of June 30, 2025, compared to $3,450,141 as of September 30, 2024[44].
CIMG lnc(IMG) - 2025 Q4 - Annual Report