CIMG Inc. SEC 10-Q Report

CIMG Inc., a company engaged in the consumer food and beverage industry, has released its Form 10-Q report for the first quarter of 2025. The report reveals significant financial and operational developments, including a notable decrease in revenues and ongoing operational challenges. The company is also undergoing strategic shifts to expand its market presence and improve profitability.

Financial Highlights

Revenues, net: $22,853, reflecting a significant decrease compared to the previous period, indicating challenges in maintaining sales momentum.

Gross profit(loss): $15,479, showing a positive gross profit despite lower revenues, suggesting effective cost management.

Loss from operations: $(2,254,956), indicating ongoing operational challenges and the need for strategic adjustments to improve profitability.

Net Loss: $(1,921,805), highlighting continued financial losses, which may impact future financial stability and require additional capital.

Basic and diluted loss per common share: $(0.17), reflecting the impact of net losses on shareholder value.

Business Highlights

Geographical Performance: The company operates in two geographical segments, North America and China. For the six months ended March 31, 2025, the company reported net revenue from the P.R.C. amounting to $22,853, while North America contributed significantly to the previous year's revenue.

New Subsidiary: On March 10, 2025, CIMG Inc.'s subsidiary, Zhongyan Shangyue Technology Co., Ltd., entered into an agreement to acquire a 51% equity interest in Shanghai Huomao Cultural Development Co., Ltd. This acquisition was completed on April 22, 2025, expanding the company's operational footprint in China.

Business Strategy Shift: The company has shifted its focus from specialty coffee to a broader range of consumer food and beverage products, leveraging its online sales platform with a natural language search function to expand sales and distribution channels in Asia.

Operational Challenges: The company faces challenges related to its ability to continue as a going concern, with a need to raise additional capital to fund operations and execute its new business strategy.

Future Outlook: Management plans to expand into new markets as part of its strategic initiatives, although the company acknowledges the uncertainty surrounding its ability to achieve profitable operations in the near term.

SEC Filing: CIMG Inc. [ IMG ] - 10-Q - Sep. 24, 2025