Company: IMG
Filing Date: 2025-11-18
Form Type: 10-Q/A
Source: 0001493152-25-024063
Chunk: 15

Company: CIMG Inc.
Filing Date: 2025-11-18
Form: 10-Q/A
Chunk 15
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---------------------------|:----|:--|-------------:|:--|:----|:--|--------------:|:--|
| Machinery                  
 & Equipment                |     | $ |        2,268 |   |     | $ |     1,465,566 |   |
| Vehicles                   |     |   |            - |   |     |   |        57,431 |   |
| Less                       
 - Accumulated Depreciation |     |   |         (271 | ) |     |   |    (1,127,820 | ) |
| Less-Impairment            
 on Property and Equipment  |     |   |            - |   |     |   |      (214,709 | ) |
| Disposal                   
 of property and equipment  |     |   |            - |   |     |   |      (178,200 | ) |
| Net                        
 Property and Equipment     |     | $ |        1,997 |   |     | $ |         2,268 |   |

The Company is required to make deposits or prepayments and progress payments on equipment purchases before the Company receives possession and title. As a result, the Company accounts for such payments as Other Assets until it has possession at which time the equipment is recorded as Property and Equipment. There were no such deposits as of December 31, 2024 or September 30, 2024.

Samples

The Company distributes samples of its products as a component of its marketing program. Costs for samples are expensed at the time the samples are produced and recorded under operating expenses in the consolidated statements of operations.

| 14 |

Long-Lived Assets

The Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicated that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and a current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash