Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 34

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 8
Chunk 34
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 condition for a controlling financial interest is ownership of a majority voting interest, and, therefore, as a general rule
ownership by one reporting entity, directly or indirectly, of over 50% of the outstanding voting shares of another entity is a condition
pointing toward consolidation.

Earnings
per Share

Basic
earnings per common share are equal to net earnings or loss divided by the weighted average of shares outstanding during the reporting
period. Diluted earnings per share reflect the potential dilution that could occur if stock options, warrants and other commitments to
issue Common Stock were exercised or equity awards vest resulting in the issuance of Common Stock that could share in the earnings of
the Company. As of December 31, 2024 and December 31, 2023, the total number of Common Stock equivalents was 158,877 and 240,863, respectively,
and composed of stock options and warrants. The Company incurred a net loss for the three months
ended December 31, 2024 and 2023, respectively and therefore, basic and diluted earnings per share for those periods are the same because
all potential common equivalent shares would be antidilutive.

Going
Concern and Capital Resources

The accompanying consolidated financial statements
have been prepared assuming that the Company will continue as a going concern.

Since
its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management
and technical staff, acquiring operating assets, raising capital and the commercialization and manufacture of its single serve coffee
products. As of December 31, 2024, the Company had cash of $124,715 and working capital of $1,394,676.

Management has evaluated the Company’s ability to continue as a going
concern under ASC 205-40, Presentation of Financial Statements - Going Concern, and considered its financial condition, projected cash
flows, obligations due within 12 months, and sources of liquidity. Based on this assessment, management has concluded that no substantial
doubt exists regarding the Company’s ability to continue as a going concern for at least one year from the date of issuance of these
consolidated financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Use
of Estimates

In
preparing these consolidated financial statements, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and
the reported amount of revenues