CIMG Inc. (NASDAQ:IMG), a retail company headquartered in Richardson, Texas, has officially terminated its relationship with MaloneBailey, LLP as its independent registered public accounting firm, effective Monday. This decision was made by the Audit Committee of the company's Board of Directors.
According to InvestingPro data, CIMG operates with a market capitalization of $7.41 million and has shown concerning financial metrics, including negative EBITDA of -$7.99 million in the last twelve months.
The reports from MaloneBailey for the fiscal years ending September 30, 2023, and September 30, 2022, contained no adverse opinions or disclaimers. They were not qualified or modified in terms of accounting principles, except for a note on the company's going concern status. This concern appears justified, as InvestingPro analysis reveals the company is quickly burning through cash and its short-term obligations exceed liquid assets, with a current ratio of 0.71.
Throughout the fiscal years ending September 30, 2024, and September 30, 2023, and up until January 20, 2025, there were no disagreements or reportable events between CIMG Inc. and MaloneBailey that would have impacted the auditing reports.
In a subsequent move, CIMG Inc. has appointed Assentsure PAC as its new independent registered public accounting firm to audit its financial statements for the fiscal year ended September 30, 2024, and to review its unaudited financial statements for subsequent quarterly periods.
Prior to the appointment of Assentsure, there were no consultations between CIMG Inc. and Assentsure regarding accounting principles or auditing matters that would be significant to the company's financial statements.
The company's stock has experienced significant volatility, with the share price declining nearly 78% over the past six months. InvestingPro subscribers have access to 15 additional key insights about CIMG's financial health and future prospects, helping investors make more informed decisions during this period of transition.
In other recent news, CIMG Inc. has successfully concluded a $10 million private placement deal, issuing convertible notes and warrants to non-U.S. investors. This transaction is expected to provide the company with vital working capital, considering its negative EBITDA of -$7.99 million in the last twelve months.
Additionally, Jian Liu, a member of the Board of Directors, has resigned, leaving a vacancy yet to be filled. The company has also settled a lawsuit with a former employee without admitting any wrongdoing. Lastly, CIMG Inc. has entered into a one-year endorsement agreement with five renowned sports figures to promote its Macanuoli beverage.
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