Company: IMG
Filing Date: 2025-11-18
Form Type: 10-Q/A
Source: 0001493152-25-024063
Chunk: 33

Company: CIMG Inc.
Filing Date: 2025-11-18
Form: 10-Q/A
Chunk 33
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Results of Operations

During the current fiscal year, we began selling and shipping the maca series products. We do not expect the revenue for the three months ending December 31, 2024 to predict future quarters, as the maca product line was still in the process of new channel expansion in the December quarter, and sales revenue declined in the December quarter.

Our results of operations for the three months ended December 31, 2024 are influenced by the aforementioned transactions.

Comparison of three months ended December 31, 2024 and 2023

Revenue

|         |     | Three months ended 
 December 31,       |   2024 |     |   |    2023 |     | Change | Dollars  |   |     |     | %      |    |
|:--------|:----|:-------------------|-------:|:----|:--|--------:|:----|:-------|:---------|:--|:----|:----|:-------|:---|
| Revenue |     | $                  | 22,853 |     | $ | 965,932 |     | $      | (943,079 | ) |     |     | (97.63 | )% |

For the three months ended December 31, 2024, revenue decreased by $943,079, or approximately 97.63%, compared to the same period in 2023. The decline was primarily attributable to a significant reduction in sales of the Company’s original single-bag coffee products, which did not generate any revenue during the period. Revenue for the current quarter was mainly derived from sales of the maca series products, which have become the Company’s principal product line. To strengthen sales performance, management has actively expanded distribution channels and increased product launch activities to establish a stronger foundation for revenue growth in subsequent quarters.

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Cost of sales and gross margin

|                       |     | Three months ended 
 December 31,       |   2024 |   |     |   |    2023 |   |     | Change | Dollars  |   |     |     | %      |    |
|:----------------------|:----|:-------------------|-------:|:--|:----|:--|--------:|:--|:----|:-------|:---------|:--|:----|:----|:-------|:---|
| Cost of sales         |     | $                  |  7,374