IMT(US:IMTE)2026-02-02 21:55Financial Performance - As of December 31, 2025, the company reported accumulated losses of $54,341,549 and a loss of $268,377 for the year, primarily due to operating costs and limited sales operations [32]. - The company had cash and cash equivalents of $160 as of December 31, 2025, and estimates that existing cash resources will not be sufficient to fund operations into the second half of 2026 [37]. - The company has incurred significant losses over the past three years (2023 to 2025) and may continue to incur losses as it develops its businesses in nano-coated plate filters and halal products [35]. - Total operating revenues for the year ended December 31, 2025, were $71,580, compared to $60,471 in 2024 and $85,454 in 2023 [209]. - The net loss for the year ended December 31, 2025, was $268,377, compared to a net loss of $1,729,001 in 2024 and $2,203,554 in 2023 [209]. - Revenue for the year ended December 31, 2025, was $71,580, an increase of $11,109, or 18.4%, compared to $60,471 in 2024 [217]. - The main source of revenue in 2025 was consulting services for the Halal process, while 2024's revenue was primarily from the sale of Halal products [217]. Going Concern and Financing - There is substantial doubt regarding the company's ability to continue as a going concern, which may affect its ability to obtain future financing [37]. - The company plans to raise necessary funds to roll out its Halal and lamination manufacturing business within the next 12 months, but there is no certainty of achieving significant operations or profitability [32]. - The company may require additional financing through various means, including joint ventures and debt or equity financing, which could be dilutive to existing shareholders [40]. - The company has never paid a dividend and does not intend to pay dividends in the foreseeable future, meaning shareholders may not receive returns from dividends [157]. - The company may issue additional securities in the future, which could result in dilution to existing shareholders [152]. Operational Risks - The company is currently monitoring geopolitical risks, including the military conflict between Russia and Ukraine, which could adversely affect its business and financial condition [29]. - The company faces risks related to the commercialization of its new products and services, which are essential for attracting and retaining its customer base [43]. - The company faces significant competition in its nano-coated plate filter, switchable glass, and halal products businesses, with competitors having greater financial resources and experience [47]. - The company relies on distributors for its halal products, nano-coated plate filters, and switchable glass products, and failure to retain or attract key distributors could materially impact operations [59]. - The company faces significant competition in the halal food industry, which could lead to decreased demand and reduced margins due to competitors with greater resources and market influence [67]. - The company relies heavily on key personnel for its operations; losing these individuals could adversely impact business continuity and performance [76][77]. - The company experiences rapid growth, which places demands on its management and operational infrastructure; failure to manage this growth could negatively affect product quality and brand reputation [82]. Compliance and Regulatory Issues - The company received a notification from Nasdaq on May 2, 2025, indicating non-compliance with the Nasdaq Listing Rule 5250(c)(1) due to the failure to timely file its annual report for the year ended December 31, 2024 [129]. - The company has until July 2, 2025, to submit a Compliance Plan to regain compliance with Nasdaq Listing Rules [129]. - If Nasdaq accepts the Compliance Plan, the company may be granted an exception until October 29, 2025, to regain compliance [130]. - The company received a notification letter on December 30, 2025, regarding a failure to meet Nasdaq's minimum bid price requirement, with the closing bid price below US$1.00 for 30 consecutive business days [134]. - The company has a Compliance Period of 180 calendar days, until June 29, 2026, to regain compliance with the minimum bid price requirement [134]. - If the company fails to satisfy the continued listing requirements, it may face delisting, negatively affecting the price and liquidity of its Ordinary Shares [136]. Market and Economic Conditions - Economic conditions, including consumer discretionary spending and the ongoing effects of COVID-19, may adversely affect the company's revenues and profitability [73][74]. - Changes in economic, political, and social conditions in key markets like Malaysia and the Middle East could significantly influence business prospects and financial results [114]. - The market for halal products is growing significantly in Asia and Europe, presenting opportunities for the Company to expand its offerings [184]. Product Development and Innovation - The company emphasizes the importance of product innovation and packaging to maintain and grow sales; failure to innovate could materially affect sales and margins [69][68]. - The company intends to build its own brands for air purifiers, halal, and switchable glass products when launching to market [186]. - The company will rely on partners for the development of new technologies in nano-coated plates and lamination lines for switchable glass [190]. - The success of the company's nano-coated plate products depends on the continuous innovation of its third-party equipment manufacturer; failure to innovate could adversely affect business performance [119]. Intellectual Property and Legal Risks - The company faces risks related to intellectual property rights, and failure to protect these rights could negatively impact business and competitive advantage [64][65]. - The company may face substantial costs and operational impacts due to potential claims of intellectual property infringement, which could divert resources and negatively affect financial condition [94]. - Licensing agreements for intellectual property rights may significantly increase operating expenses, and failure to obtain such licenses could hinder product commercialization [95]. - The company does not own patent technologies and relies on equipment suppliers, exposing it to potential infringement claims from competitors and non-practicing entities [96]. Manufacturing and Operational Challenges - Manufacturing electronic glass requires significant investment in equipment and operating capital, and failure to secure adequate capital may adversely affect business operations [60]. - The company has limited manufacturing experience, which may lead to delays in product availability and negatively impact business operations [51]. - The company faces risks related to the operational performance of complex manufacturing equipment, which could affect production efficiency and costs [87]. - Achieving targeted manufacturing costs is essential; failure to do so may lead to significant cost overruns and adversely affect profitability [103]. Financial Reporting and Internal Controls - The company is subject to reporting obligations under U.S. securities laws, and failure to maintain effective internal controls over financial reporting could harm investor confidence [57]. - A material weakness in internal control over financial reporting has been identified, which could impair the accuracy of financial statements [155]. - The company may be classified as a Passive Foreign Investment Company (PFIC), which could subject U.S. investors to adverse tax rules [144].