Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 43

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 8
Chunk 43
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 of the net liabilities, resulting in a negative NCI of $19,374 recognized within the equity section of the consolidated
balance sheet.

The
Company recognized a loss on acquisition of $20,164, representing its proportionate share (51%) of the net liabilities assumed. This
amount was recorded in the consolidated statement of operations under “Loss on acquisition”.

No
goodwill or bargain purchase gain was recognized as the fair value of net assets acquired was negative and no consideration was transferred.
The Company concluded that the acquired set of activities constitutes a business under ASC 805-10-20.

Foreign
Currency Translation

The
financial position and results of operations of each of the Company’s foreign subsidiaries are measured using the foreign
subsidiary’s local currency as the functional currency. Revenues and expenses of each such subsidiary have been translated
into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates
of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate
component of stockholders’ equity, unless there is a sale or complete liquidation of the underlying foreign investment. The
foreign currency translation adjustment attributable to CIMG Inc. was recorded in other comprehensive income (loss) in the amounts
of $(254,555) and $50,566 for the six months ended March 31, 2025 and 2024, respectively.

Transaction
gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency.

Revenue
Recognition

In
May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic
606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). The new standard’s
core principle is that an entity will recognize revenue at an amount that reflects the consideration to which the entity expects to be
entitled in exchange for transferring goods or services to a customer. The principles in the standard are applied in five steps: 1) Identify
the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate
the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance
obligation. We adopted Topic 606 as of October 1, 2018 on