Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 1171

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 16
Chunk 1171
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, 2024. These factors raise doubts about the Company’s ability
to continue as a going concern.

The Company issued a USD2,000,000
private placement on October 22, 2024, and a USD10,000,000
convertible note on December 12, 2024, to mitigate the condition. The actions have been approved by the BOARD and the cash of total
USD12,000,000
have been raised by the end of March 31, 2025. In addition, the company has signed sales contracts for coffee and beverages with
several American and Chinese companies. Including sales contracts for maca series products signed by enterprises such as Petrochina
Kunlun Haoke Co., Ltd. and Shanghai Jinxianfang Trading Co., LTD. The company’s contracted revenue for the next 12 months from the
date of this report is approximately $8.5 million. With these mitigation plans, the Company is fully capable of sustaining going
concern condition for relevant operations and expansion.

Management
has evaluated the Company’s ability to continue as a going concern in accordance with ASC 205-40, Presentation of Financial Statements
– Going Concern. This evaluation considered the Company’s current financial condition, expected cash flows, obligations due
within the next 12 months, and available sources of liquidity.

While
we understand that the ability of the Company to continue as a going concern is dependent upon its ability to successfully execute its
new business strategy and eventually attain profitable operations, management has concluded that there are no conditions or events that
raise substantial doubt about the Company’s ability to continue as a going concern for at least one year from the issuance date
of these consolidated financial statements. Accordingly, the Company’s consolidated financial statements as of September 30, 2024
have been prepared on a going concern basis.

Use of Estimates

In preparing these consolidated financial statements,
management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.

    F-7

Fair Value of Financial Instruments

Fair value is an estimate of the exit price, representing
the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
(i.e., the exit price at the measurement date).

On August 20,