CIMG Inc., formerly known as Nuzee, Inc., reported a net loss of $8.56 million for the fiscal year ending September 30, 2024, a slight improvement from the $8.75 million loss recorded in the previous year. The company's revenue decreased by 9.8% to $1.93 million, down from $1.76 million in 2023. This decline is attributed to a shift in focus from coffee products to the newly launched Maca Series, which includes Maca Peptide Coffee, Maca-Noni, Maca Wine, and Maca Purified Powder. The cost of sales also decreased by 3.59% to $1.90 million, contributing to a gross profit of $32,169, a significant recovery from a gross loss of $210,817 in the prior year.
CIMG has undergone significant strategic changes, including the sale of its wholly-owned subsidiaries, NuZee KOREA Ltd. and NuZee Investment Co., Ltd., to former CEO Masateru Higashida in June 2024. The company is now concentrating on expanding its sales and distribution channels in Asia, particularly focusing on maca-based products, which are marketed as health-oriented superfoods. The company has secured exclusive distribution rights for these products from Jiangsu Kangduoyuan Beverage Co., Ltd., a leading maca producer in Asia.
Operationally, CIMG has made strides in its distribution network, targeting significant retail partnerships in China. The company aims to distribute Maca-Noni drinks to 25,000 convenience stores and 300 vending machines within the next three years. As of September 30, 2024, CIMG employed 17 full-time staff across its operations in the U.S., Hong Kong, and China. The company is also navigating regulatory challenges in China, particularly concerning cybersecurity and data protection laws, which could impact its ability to operate and raise capital.
Looking ahead, CIMG anticipates needing additional capital to fund its operations, as its current cash balance of $460,000 is insufficient for the next twelve months. The company plans to raise funds through public or private equity offerings. However, it faces ongoing compliance challenges with Nasdaq listing requirements, including maintaining a minimum stockholders' equity of $2.5 million and a minimum bid price of $1.00 per share. Failure to comply with these requirements could lead to delisting from the Nasdaq Capital Market, which would adversely affect the company's financial condition and stock price.
About CIMG Inc.
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