Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 79

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 79
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 | $                        |    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, 2024, the company’s
board of directors passed a resolution to sale (1) NuZee KOREA Ltd a company incorporated in Korea and a wholly-owned subsidiary of the
Company; and (2) NuZee Investment Co., Ltd, a company incorporated in Japan and a wholly-owned subsidiary of the Company.

During the year ended September
30, 2024 and September 30, 2023, the cash outflows arising from the cessation of business operations were $127,102 and $866,645 respectively.

Operating Activities

We used $9,970,680 and $6,381,560 of cash in operating activities during the years ended September 30, 2024 and 2023, the cash outflow arising from the purchase of raw materials, finishedproducts and the disposal of subsidiaries.

Investing Activities

We used $320,043 and $31,813 of cash in investing activities during the years ended September 30, 2024 and 2023, the cash outflow
arising from the purchase of equipment.

Financing Activities

Historically, we have funded our operations through the issuance of our equity securities.

Cash provided from financing activities increased from $(36,031) as of September 30, 2023 to $9,586,272 as of September 30, 2024. The main reason for the increase is that no funds were raised in the year ending September 30, 2023, while in the year ending September 30, 2024, we raised funds by selling our equity securities and issuing convertible bonds. During the year ending September 30, 2024, financing activities included private placement and convertible notes.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that may have a current or future material effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results