CIMG Inc. reported fiscal‑year‑2025 revenue of $10.3 million, a 433 % year‑over‑year increase from $1.93 million in the prior year. The surge was driven by contracts in the company’s AI computing infrastructure and digital health platforms, the two core segments that now comprise the entire business after the full divestiture of its legacy coffee co‑packing operation.
Net loss for the year was $3.2 million, a significant improvement from the $8.97 million loss reported for the 2024 fiscal year. The narrowing loss reflects a 45.5 % reduction in net loss, driven by lower operating expenses and a shift toward higher‑margin services, although the company remains in a loss‑making phase as it invests heavily in technology development and market expansion.
CIMG raised $5 million in convertible notes, with an initial tranche of $1.6 million closed on February 13, 2026. The financing provides a runway for scaling the new AI and digital‑health platforms, but it is far smaller than the previously reported $69 million figure, correcting a factual error in the original article.
Revenue concentration remains a risk: two customers account for 96 % of sales, and a one‑time order for exosome eye drops contributed roughly 60 % of the total revenue increase. The company’s gross margin contracted from 1.7 % to 1.2 % year‑over‑year, indicating pricing pressure and high cost of scaling the new business model.
CIMG’s balance sheet is heavily weighted by Bitcoin holdings—approximately 500 BTC valued at $57.05 million as of September 30, 2025—adding volatility to total assets. The company has regained compliance with Nasdaq’s minimum bid‑price requirement but remains under a one‑year monitoring period for timely filings, underscoring ongoing regulatory risk.
Management remains cautious in its outlook, projecting continued revenue growth while acknowledging that the company will stay in the loss‑making zone as it invests in infrastructure and talent. The guidance signals confidence in the long‑term trajectory of the AI and digital‑health businesses, but it also highlights the need for sustained capital to achieve profitability.
The results underscore a pivotal transformation: CIMG has exited its legacy coffee business, focused on high‑margin AI computing and digital‑health services, and secured modest financing to support that shift. While revenue growth is impressive, the company’s thin margins, customer concentration, Bitcoin‑linked asset volatility, and Nasdaq monitoring status present significant risks that investors must weigh against the upside of the new business model.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.