Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 159

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 159
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 known to us or that we currently deem to be immaterial also may materially
adversely affect our business, financial condition or results of operations in future periods.

22

Risks
Related to Our Financial Condition and Capital Requirements

We
have a history of net losses. We expect to continue to incur net losses in the future.

We
have incurred net losses since our inception in 2013, including net losses of $8.56 million and $8.75 million for the years ended September
30, 2024, and 2023, respectively. As of September 30, 2024, our accumulated deficit was approximately $81.93 million. We expect to incur
significant sales and marketing expenses, as well as costs associated with operating as an exchange-listed public company, prior to recording
sufficient revenue from our operations to offset these expenses.

These
losses have had, and will continue to have, an adverse effect on our working capital, total assets and stockholders’ equity. Our
ability to become and remain profitable will depend on our ability to generate significantly higher revenues from the sales of our single-service
coffee products, Maca series products, etc., which depends upon a number of factors, including but
not limited to successful sales, manufacturing, marketing and distribution of our products and services.

Because
of the numerous risks and uncertainties associated with our commercialization efforts, we are unable to predict when we will become profitable,
and we may never become profitable. Even if we do achieve profitability, we may not be able to sustain or increase profitability on a
quarterly or annual basis. Our inability to achieve and then sustain profitability would have a material adverse effect 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