Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 343

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1B
Chunk 343
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, may transfer cash to our PRC subsidiaries, Beijing Zhongyan,
through capital injections and intra-group loans.

2. BASIS OF PRESENTATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES

The summary of significant accounting policies presented
below is designed to assist in understanding the Company’s financial statements. Such financial statements and accompanying notes
are the representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies
conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects and
have been consistently applied in preparing the accompanying financial statements.

Principles 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.

The Company consolidates DZR Tech, Wewin and Beijing
Zhongyan in accordance with ASC 810, and specifically ASC 810-10-15-8 which states, 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