Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 8

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 1
Chunk 8
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. As of March 31, 2025, the Company had cash of $2,404
and working capital of $10,537,508. These factors raise doubts about the Company’s ability to continue as a going concern.

The Company anticipates that it will
need to raise additional capital immediately in order to continue to fund its operations. There is no assurance that the Company will
be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds the Company
might raise will enable the Company to complete its initiatives or attain profitable operations. Additionally, management’s strategic
plans include expanding into new markets.

Management
has evaluated the Company’s ability to continue as a going concern under ASC 205-40, Presentation of Financial Statements - Going
Concern, and considered its financial condition, projected cash flows, obligations due within 12 months, and 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. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue
as a going concern. Accordingly, the Company’s consolidated financial statements as of March 31, 2025 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.

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).

    7

On
August 20, 2024, the Company entered into a convertible note purchase agreement with certain investors (the “August Notes Investors”)
to issue and sell convertible notes in the aggregate principal amount of $1,300,000 (the “August Notes”). The Notes bear
interest at an annual rate of 7% and have a maturity date of one year from the issuance date. The Notes shall not be converted until
the Company obtains shareholder approval for the issuance of shares underlying the Notes. Upon obtaining such approval,