Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 6

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 6
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 on our business
and financial condition.

Our
independent auditor’s report for the fiscal year ended September 30, 2024 includes an explanatory paragraph regarding substantial
doubt about our ability to continue as a going concern, and absent additional financing we may be unable to remain a going concern.

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 foreseeable. A reduction in consumer demand for, or revenues from the sale of, our maca related products
could further constrain our cash resources.

We
intend to seek to raise additional capital through public or private equity offerings. However, we may not be able raise such additional
capital on favorable terms or at all. If we are unsuccessful in efforts to raise additional capital, based on our current levels of operating
expenses, our current capital is not expected to be sufficient to fund our operations for the next twelve months. These conditions raise
substantial doubt about our ability to continue as a going concern.

We
may also consider raising additional capital in the future to expand our business, to pursue strategic investments or acquisitions, to
take advantage of financing opportunities or for other reasons, including to:

    ●
    fund
    development of our products;
  
    ●
    acquire,
    license or invest in technologies or intellectual property relating to our existing products;
  
    ●
    acquire
    or invest in complementary businesses or assets; and
  
    ●
    finance
    capital expenditures and general and administrative expenses.

23

Our
present and future funding requirements will depend on many factors, including:

    ●
    success
    of our current marketing efforts;
  
    ●
    our
    revenue growth rate and ability to generate cash flows from sales of our products;
  
    ●
    effects
    of competing technological and market developments; and
  
    ●
    changes
    in regulatory oversight applicable to our products.

The
various alternatives for raising additional capital include short-term or long-term debt financings, equity offerings, collaborations
or licensing arrangements and each one carries potential risks. If we raise funds by issuing equity securities, our stockholders will
be further diluted. If we raise funds by issuing debt securities, those debt securities would have rights, preferences and privileges
senior to those of holders of our Common Stock. The