CIMG Inc. reports $67 million in Bitcoin, only $5,397 in cash, faces $7.38 million deficit

CIMG Inc. disclosed in its Aug. 13 quarterly filing that it requires immediate capital despite holding 1,145.4 BTC valued at 67.19 million dollars as of June 30. The company reported just 5,397 dollars in cash and 1.87 million dollars in current assets against 9.25 million dollars in current liabilities, resulting in a working-capital deficit of 7.38 million dollars. CIMG indicated it may monetize its Bitcoin holdings, but cautioned about the asset's volatility and the lack of assured financing. The company's management plans to seek additional equity or debt have not alleviated concerns regarding its ability to continue operations. CIMG's Singapore subsidiary self-custodies the Bitcoin in segregated Safe Wallet addresses under a 3-of-3 multisignature arrangement, which could delay transfers if one signer is unavailable. The June registration statement characterized Bitcoin as a long-term reserve, with no expectation for routine operational use or near-term monetization. CIMG's loss attributable to the company increased to 10.49 million dollars for the June quarter and 45.36 million dollars for the nine-month period, with operations consuming 10.35 million dollars in cash during that time. Without new financing, the company's ability to fund operations remains uncertain.