Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 531

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 3
Chunk 531
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 authority. No liability
for unrecognized tax benefits was recorded as of September 30, 2024 and 2023.

    F-12

Related parties

A party is considered to be related to the Company
if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with
the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal
owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly
influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully
pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting
parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that
one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Stock-based Compensation

We
account for share-based awards issued to employees in accordance with Accounting Standards Codification (ASC) 718, “Compensation-Stock
Compensation”. Accordingly, employee share-based payment compensation is measured at the grant date, based on the fair value of
the award, and is recognized as an expense over the requisite service period, which is normally the vesting period. Share-based compensation
to directors is treated in the same manner as share-based compensation to employees, regardless of whether the directors are also employees.
In June 2018, the FASB issued ASU 2018-07 which simplifies several aspects of the accounting for non-employee transactions by stipulating
that the existing accounting guidance for share-based payments to employees (accounted for under ASC Topic 718, “Compensation-Stock
Compensation”) will also apply to non-employee share-based transactions (accounted for under ASC Topic 505, “Equity”).
The Company implemented ASU 2018-07 on October 1, 2019 and the impact of the implementation was not material to the financial statements.

We
determine the fair value of share-based payments using the Black Scholes option-pricing model for common stock options and warrants and
the closing price of our common stock for common share issuances. We recognize forfeitures as they occurred.

During the year ended September 30, 202