NuZee(US:NUZE)2026-03-05 22:25Financial Performance - CIMG Inc. reported revenues of $15,768,796 for the three months ended December 31, 2025, a significant increase from $22,853 in the same period last year[18]. - The company incurred a net loss of $19,510,872 for the quarter, compared to a net loss of $1,536,249 in the prior year, reflecting a substantial increase in losses[18]. - Gross profit for the quarter was $89,111, with a cost of sales amounting to $15,679,685, indicating a gross margin of approximately 0.56%[18]. - For the three months ended December 31, 2025, CIMG Inc. reported a net loss of $19,510,872, compared to a net loss of $1,536,249 for the same period in 2024, indicating a significant increase in losses[27]. - The company experienced a fair value variation of $17,502,596 during the same period, which contributed to the overall financial performance[27]. - The gross profit for the three months ended December 31, 2025, was $89,111, with a loss from operations of $1,957,241[136]. Assets and Liabilities - Total current assets decreased to $3,490,838 from $17,126,342 in the previous quarter, primarily due to a significant drop in cash and cash equivalents[15]. - Total liabilities decreased to $11,051,607 from $27,645,099, reflecting a reduction in current liabilities[15]. - The company’s accumulated deficit increased to $106,705,592 as of December 31, 2025, compared to $87,228,118 at the end of the previous quarter[15]. - As of December 31, 2025, CIMG Inc. had cash of $45,356 and negative working capital of $7,562,771, highlighting liquidity challenges[47]. - Accounts payable and accrued expenses totaled $2,864,751 as of December 31, 2025, compared to $1,464,144 as of September 30, 2025, indicating a substantial increase in liabilities[109]. - The company reported short-term loans of $452,764 as of December 31, 2025, including $348,926 related to ongoing litigation with Mr. Sooncha Kim[110][111]. Equity and Stock Activity - The company’s total stockholders' equity increased to $56,432,361 from $46,530,449, indicating a positive change in equity position[15]. - CIMG Inc. completed a 1-for-20 reverse stock split on December 5, 2025, reducing the number of shares outstanding significantly[15]. - The Company executed a 1-for-20 reverse stock split on December 5, 2025, affecting all share and per-share amounts presented in the financial statements[46]. - The Company’s board approved an increase in the authorized number of Common Stock from 200,000,000 to 600,000,000 shares on September 25, 2025[123]. - For the three months ended December 31, 2025, $1,838,041 worth of convertible notes were converted into the company's common stock, reducing outstanding convertible notes to approximately $Nil[112]. - During the same period, the Company issued 148,100,000 shares for a private placement, generating $37,025,000 in consideration[144]. Cash Flow and Financing - Net cash used in operating activities for the three months ended December 31, 2025, was $8,527,698, compared to $1,338,781 for the same period in 2024[27]. - The company reported net cash provided by financing activities of $8,453,075 for the three months ended December 31, 2025, primarily from the issuance of Common Stock[27]. - The Company issued convertible notes totaling $10,000,000 on December 12, 2024, with $8,145,000 subscribed by non-related parties[116]. - The Company entered into a convertible bond purchase agreement on August 21, 2025, to issue convertible notes with an aggregate principal amount of $4,000,000[118]. - The Company completed a private placement of convertible promissory notes totaling $5,000,000, with an initial tranche of $1,600,000 issued at a 7% annual interest rate[170]. Operational Changes and Strategy - The company completed several acquisitions, including a 51% stake in Shanghai Huomao and Beijing Xilin, to expand its market presence in Asia[32][33]. - CIMG Inc. is transitioning from a focus on specialty coffee products to a broader range of consumer food and beverage products, supported by an online sales platform[30]. - The Company operates a trading model for the Maca Product Series, with costs primarily including the purchase cost of raw materials and processing-related expenses[70]. Risk and Compliance - The Company has a concentration of credit risk primarily from cash and cash equivalents and accounts receivable, with ongoing monitoring and evaluations in place[85]. - The Company’s internal control over financial reporting was assessed as ineffective as of December 31, 2025[165]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[163]. - The Company did not identify any new risk factors for the three months ended December 31, 2025[169]. - The Company has not experienced any defaults upon senior securities[173]. Legal and Regulatory Matters - A judgment of $222,062.28 was entered against the Company due to a lawsuit filed by former directors for unpaid fees and expenses[156]. - The Company was ordered to pay a judgment of $222,062.28 to former directors for unpaid fees and expenses, including prejudgment interest and costs[161]. - The Company had a total tax payable of $2,394,591 as of December 31, 2025, up from $1,314,686 as of September 30, 2025[126][127]. Miscellaneous - The Company recognized right-of-use assets of $12,927 and lease liabilities of $6,445 as of December 31, 2025, reflecting its lease commitments[105]. - The Company did not grant any restricted stock awards or issue shares for services during the three months ended December 31, 2025[145][148]. - No stock options were exercised during the three months ended December 31, 2025, and 1,022 options were forfeited[149][150]. - The Company changed its independent registered public accounting firm, engaging ST & Partners PLT effective February 18, 2026[159]. - The Company established two wholly-owned subsidiaries: Foshan Dingyue Technology Co., Ltd. and Foshan Lintai Technology Co., Ltd. in February 2026[162].