Company: IMG
Filing Date: 2025-11-18
Form Type: 10-Q/A
Source: 0001493152-25-024067
Chunk: 7

Company: CIMG Inc.
Filing Date: 2025-11-18
Form: 10-Q/A
Chunk 7
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inciples of Consolidation

The Company prepares its financial statements on the basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation.

Earnings per Share

Basic earnings per common share is equal to net earnings or loss divided by the weighted average of shares outstanding during the reporting period. Diluted earnings per share reflects 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 March 31, 2025 and March 31, 2024, the total number of common stock equivalents was 25,799,900and 241,907, respectively, and composed of stock options and warrants. Due to the Company’s net loss for the periods presented, all common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per shar e.

Going Concern and Capital Resources

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 March 31, 2025, the Company had cash of $2,404
and working capital of $10,537,508. These factors raise doubts about the Company’s ability to continue as a going concern.

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