CIMG Inc. Liquidation Value

CIMG Inc. (ticker: CIMG) presents a deeply negative liquidation posture as of March 31, 2026. The company's own MFFAIS-computed cash liquidation value stands at approximately negative $10.9 million, with liquid and operating liquidation values at approximately negative $9.5 million. These figures reflect the structural asymmetry under the liquidation lens: haircut assets against face-value liabilities. The filing body provides several materially relevant disclosures that sharpen this assessment.

Cash is effectively exhausted: the filing discloses a cash balance of $17,025 at March 31, 2026, down from approximately $50,000 at December 31, 2025. Under the liquidation lens, cash recovers at 100%, contributing negligible asset value. Taxes payable increased from $1.31 million (September 30, 2025) to $2.43 million (March 31, 2026), driven almost entirely by accrued sales taxes — a face-value liability under liquidation. Related-party payables total $1.97 million as of March 31, 2026, unsecured and non-interest bearing per the filing, but they remain face-value obligations in a wind-down. A provision for directors' litigation of $222,062 was recognized as an adjusting subsequent event (default judgment in the Ex-Directors lawsuit). Professional service fees payable to Sunflower Tech Limited for a Bitcoin-related financial advisory engagement total $2.09 million at March 31, 2026, reduced from $3.66 million at September 30, 2025 — a contractual accrued liability sitting at face value in liquidation.

The accumulated deficit reached approximately $122.1 million as of March 31, 2026, up from approximately $106.7 million at December 31, 2025, implying a net loss of approximately $15.4 million in Q2 alone. For the six months ended March 31, 2026, net loss totaled $34.9 million, of which $31.6 million is attributable to fair value variation in digital assets (Bitcoin). The filing discusses Bitcoin holdings and associated fair value variation extensively in MD&A and segment reporting, identifying it as the dominant driver of net loss — but no separate XBRL balance-sheet tag for digital assets appears in TAG_CONTEXT. This is a material omission: the filing references a $55 million Bitcoin-related private placement transaction and significant Bitcoin-related operating cash outflows ($10.1 million cash used in operations for H1 FY2026, primarily attributed to digital asset purchases), yet the digital asset balance sheet line is not separately XBRL-tagged.

Revenue of $19.0 million for the six months ended March 31, 2026 carries a gross margin of 0.53%, meaning the operating business generates virtually no contribution to the liability stack. Operating expenses of $3.4 million for the period, combined with the gross margin of $101,069, produces a loss from operations of $3.3 million before the digital asset fair value charge. PP&E net is de minimis ($1,150 in China as of March 31, 2026). The company has no separately disclosed long-term debt other than the convertible notes issued in February 2026 (initial tranche $1.6 million, 7% interest, maturity August 2027); these are not yet converted and represent face-value claims in liquidation. Subsequent to the period, a further $3.4 million equity facility with High West Partners LLC was approved, with shares issuable at discounts as deep as 15% to VWAP.

Nasdaq delisted the company effective March 6, 2026; the stock now trades OTC. Internal controls are disclosed as not effective. Management's going concern assessment is unalleviated. Recovery to equity in a liquidation scenario is negative and materially so.