Company: IMG
Filing Date: 2025-11-07
Form Type: 10-Q/A
Source: 0001493152-25-021258
Chunk: 37

Company: CIMG Inc.
Filing Date: 2025-11-07
Form: 10-Q/A
Chunk 37
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 )% |

For the three months ended June 30, 2025, revenue decreased by $305,310, or approximately 83.22%, compared to the same period in 2024.
The decline was primarily attributable to a significant reduction in sales of the Company’s original single-bag coffee products,
which did not generate any revenue during the period. Revenue for the current quarter was mainly derived from sales of the maca series
products, which have become the Company’s principal product line. To strengthen sales performance, management has actively expanded
distribution channels and increased product launch activities to establish a stronger foundation for revenue growth in subsequent quarters.

| 25 |

Cost of sales and gross margin

|                       |     | Three months ended 
 June 30,           |   2025 |   |     |   |     2024 |    |     | Change |  Dollars |   |     |     | %       |    |
|:----------------------|:----|:-------------------|-------:|:--|:----|:--|---------:|:---|:----|:-------|---------:|:--|:----|:----|:--------|:---|
| Cost of sales         |     | $                  | 56,445 |   |     | $ |  513,101 |    |     | $      | (456,656 | ) |     |     | (89.00  | )% |
| Gross profit (loss)   |     |                    |  5,133 |   |     | $ | (146,213 | )  |     | $      |  151,346 |   |     |     | (103.51 | )% |
| Gross profit (loss) % |     |                    |   8.34 | % |     |   |   (39.85 | )% |     |        |        - |   |     |     | -       |    |

For the three months ended June 30, 2025, we recorded a gross profit of $5,133, compared to a gross loss of $146,213 for the same period
in 2024. Our gross profit margin was 8.34% for the three months ended June 30, 2025, compared to (39.85)% for the prior-year period. The
improvement in gross performance was primarily attributable to cost reductions resulting from the introduction of new products and the