Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 541

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 3
Chunk 541
---
 not exercise any options. 

9. STOCK OPTIONS AND WARRANTS

Options

During the fiscal year ended September 30, 2024, the
Company granted 0 new stock options, issued 0 shares upon the exercise of outstanding stock options.

During
the fiscal year ended September 30, 2023, the Company granted 6,000 new stock options at an exercise price of $8.15 to an employee. These
options shall be vested and become exercisable 1/3 on each anniversary of the grant date. The options will expire ten years from the grant
date, unless terminated earlier as provided by the option agreements. 

    F-16

The fair value
of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as
follows: expected volatility was based on the volatility of a peer group of companies. The expected term of options granted was determined
using the simplified method under SAB 107 which represents the mid-point between the vesting term and the contractual term. The risk-free
rate is calculated using the U.S. Treasury yield curve and is based on the expected term of the option.

The Black-Scholes option pricing model was used with
the following weighted-average assumptions for options granted during the year ended September 30, 2024 and 2023, respectively:

SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR FAIR VALUE MEASUREMENT OF OPTIONS GRANTED 

    For employees 
    September 30, 2024  
    September 30, 2023 
  
    Risk-free interest rate 
     0% 
     4.39%
  
    Expected option life 
     0.00  
     6 years 
  
    Expected volatility 
     0% 
     68.60%
  
    Expected dividend yield 
     0.00% 
     0.00%
  
    Exercise price 
    $-  
    $8.15 

The Company is expensing these stock option awards
on a straight-line basis over the requisite service period.

Due to forfeitures exceeded previously recognized expense, and the company reversed prior costs. So
the Company recognized stock option expense of $(62,308) for the years ended September 30, 2024 

The Company recognized stock option expense of
$288,030
for the years ended September 30, 2023.

Unamortized option