Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 851

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 7
Chunk 851
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, the usual 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
September 30, 2024 and September 30, 2023, the total number of Common Stock equivalents was 235,280
and 248,856,
respectively, and composed of stock options and warrants.

Going Concern and Capital Resources

The Company’s consolidated financial statements
are 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 September 30, 2024, the Company
had cash of $464,222 and working capital of $(269,285).
There were continued net losses for the 2 years ended September 30, 2024. These factors raise doubts about the Company’s ability
to continue as a going concern.

The Company issued a USD2,000,000
private placement on October 22, 2024, and a USD10,000,000
convertible note on December 12, 2024, to mitigate the condition. The actions have been approved by the BOARD and the cash of total
USD12,000,000
have been raised by the end of March 31, 2025. In addition, the company has signed sales contracts for coffee and beverages with
several American and Chinese companies. Including sales contracts for maca series products signed by enterprises such as Petrochina
Kunlun Haoke Co., Ltd. and Shanghai Jinxianfang Trading Co., LTD. The company’s contracted revenue for the next 12 months from the
date of this report is approximately $8.5 million. With these mitigation plans, the Company is fully capable of sustaining going