Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 63

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 63
---
 of shares of our
Common Stock. Our principal use of cash is to fund our operations, which includes the commercialization of our products, the continuation
of efforts to improve our products, administrative support of our operations and other working capital requirements.

As
of September 30, 2024, we had a cash balance of $0.46 million. Considering our current cash resources and our current and expected levels
of operating expenses for the next twelve months, we expect to need additional capital to fund our planned operations for at least twelve
months  This evaluation is based on relevant conditions and events that are currently known or reasonably knowable.
A reduction in consumer demand for, or revenues from the sale of, our coffee products could further constrain our cash resources. We
have based these estimates on assumptions that may prove to be wrong, and our operating projections, including our projected revenues
from sales of our coffee products, may change as a result of many factors currently unknown to us.

We
intend to seek to raise additional capital, including through a public or private equity offering, to support our operating activities
over the next 12 months and beyond, which may not be available to us on acceptable terms or may not be available at all. The timing and
amount of capital we need to raise will depend on a number of factors, including our ability to generate sufficient revenue from the
sale of our products to fund our business operations, and the timing and amount of funds received by warrant holders when they exercise
their outstanding warrant cash. Until we are able to generate sufficient revenue, we may seek to raise additional capital through equity,
equity-linked or debt financing.

Summary
of Cash Flows

    Year Ended September 30, 

    2024  
    2023 
  
    Cash used in operating activities 
    $(9,970,680) 
    $(6,381,560)
  
    Cash used in investing activities 
    $(320,043) 
    $(31,813)
  
    Cash provided by used in financing activities 
    $9,586,272  
    $(36,031)
  
    Effect of foreign exchange on cash 
    $312,906  
    $36,599 
  
    Cash flows generated from discontinued business operations 
    $(127,102) 
    $(866,645)
  
    Net decrease in cash 
    $(518,647) 
    $(7,279,450)

Discontinued operations

On June 7, 202