Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 102

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 102
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 during the two years ended September 30, 2024. These conditions initially raised substantial
doubt about the Company’s ability to continue as a going concern.

In response, the Company undertook several mitigating
actions. It completed a private placement of $2.0 million on October 22, 2024, and issued a $10.0 million convertible note on December
12, 2024. These transactions were approved by the Board of Directors, and the aggregate $12.0 million in proceeds was received by March
31, 2025. Furthermore, the Company executed sales agreements for coffee and beverage products, including its Maca Series, with various
American and Chinese companies. These include contracts with PetroChina Kunlun Haoke Co., Ltd. and Shanghai Jinxianfang Trading Co., Ltd.,
with total expected contractual revenue of approximately $8.5 million over the 12-month period following the issuance date of these financial
statements.

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 and expenses during the
reporting periods. Actual results could differ from those estimates.

| F-9 |

Fair Value of Financial Instruments

Fair value is an estimate of the exit price, representing
the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
(i.e., the exit price at the measurement date).

On August 20, 2024, the Company entered into a convertible note purchase
agreement with certain investors (the “August Notes Investors”) to issue and sell convertible notes in the aggregate principal
amount of $1,300,000 (the “August Notes”).The Notes bear interest at an annual rate of 7% and have a maturity date of one
year from the issuance date. The