Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 7

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 1
Chunk 7
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 registration updates in China.

2.
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Preparation

The
accompanying unaudited consolidated financial statements of CIMG, Inc. and subsidiaries (“the Company”) have been prepared
in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial
reporting and should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s
Annual Report on Form 10-K for the year ended September 30, 2024. Certain information or footnote disclosures normally included in the
annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations
of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, these financial statements
include all normal and recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows
for the interim periods presented. However, the results of operations included in such financial statements may not necessarily be indicative
of future or annual results.

Principles
of Consolidation

The
Company prepares its financial statements on the basis of accounting. The accompanying consolidated financial statements include the
accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, balances and transactions have been
eliminated upon consolidation.

Earnings
per Share

Basic
earnings per common share is equal to net earnings or loss divided by the weighted average of shares outstanding during the reporting
period. Diluted earnings per share reflects the potential dilution that could occur if stock options, warrants and other commitments
to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings
of the Company. As of March 31, 2025 and March 31, 2024, the total number of common stock equivalents was 25,799,900 and 241,907, respectively,
and composed of stock options and warrants. Due to the Company’s net loss for the periods presented, all common stock equivalents were anti-dilutive and
therefore excluded from the calculation of diluted net loss per share.

Going
Concern and Capital Resources

Since
its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting
management and technical staff, acquiring operating assets, raising capital and the commercialization and manufacture of its single
serve coffee products