Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 39

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 8
Chunk 39
---
 approval for the issuance of shares underlying the Notes. Upon obtaining such approval, the holder may
convert the Notes into a number of shares of Common Stock equal to (i) the outstanding principal amount of the Notes, plus any accrued
but unpaid interest, divided by (ii) $0.94, the conversion price. Any conversion of the Notes resulting in a fractional share shall be
rounded down to the nearest whole share. On October 31, 2024, the conversion of this convertible note into stocks has been completed.

Per
ASC 470-20-25-5, An embedded beneficial conversion feature (“BCF”) present in a convertible instrument shall be recognized
separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital.

Cash
and Cash Equivalents

The
Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents.
The Company had no cash equivalents for the three and six months ended March 31, 2025 and 2024.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The
Company places its cash with high quality banking institutions. From time to time, the Company may or may not maintain cash balances
at certain institutions in excess of the Federal Deposit Insurance Corporation limit.

Accounts
Receivable, net

Trade
accounts receivable is periodically evaluated for collectability based on past credit history with customers and their current financial
condition. Bad debts expense or write offs of receivables are determined on the basis of loss experience, known and inherent risks in
the receivable portfolio and current economic conditions. The Company recorded an allowance for credit loss of $Nil and $3,450,141 as
of both March 31, 2025, and September 30, 2024 respectively.

SCHEDULE OF ACCOUNTS RECEIVABLES 

    March 31,
                                                                                2025  
    September 30,
                                                                                2024 
  
    Accounts receivable 
    $79,941  
    $3,450,141 
  
    Less: allowance for credit
    loss 
     -  
     (3,450,141)
  
    Total
    accounts receivable 
    $79,941  
    $- 

Assets
Held for Sale-Current

As
of March 31,