Company: IMG
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001493152-25-020586
Chunk: 42

Company: CIMG Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 8
Chunk 42
---
 2025, the Company had cash of $35,958 and working capital of $10,571,104.

The
Company anticipates that it will need to raise additional capital immediately in order to continue to fund its operations. There is no
assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that
the amount of funds the Company might raise will enable the Company to complete its initiatives or attain profitable operations. Additionally,
management’s strategic plans include expanding into new markets.

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.

While
we understand that the ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its
new business strategy and eventually attain profitable operations, the consolidated financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going concern. Accordingly, the Company’s consolidated financial
statements as of June 30, 2025 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 and expenses during the reporting periods. Actual results could differ from those estimates.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The
Company places its cash with high quality banking institutions. From time to time, the Company may or may not maintain cash balances
at certain institutions in excess of the Federal Deposit Insurance Corporation limit.

Accounts
Receivable, net

Trade
accounts receivable is periodically evaluated for collectability based on past credit history with customers and their current financial
condition. Bad debts expense or write offs of receivables are determined on the basis of loss experience, known and inherent risks in
the receivable portfolio and current economic conditions. The Company recorded an allowance for credit loss of $Nil and $3,450,141 as
of both