Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 107

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 107
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1, 2020 under favorable terms that are co-terminus with the original lease ended June
30, 2024. During the year ended September 30, 2024, we recognized sublease income of $161,672 pursuant to the sublease included in other
income on our financial statements.

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. Foreign currency translation adjustment attributable to CIMG Inc. recorded to other comprehensive
income and loss amounted to $312,906 and $36,599 as of September 30, 2024 and 2023, respectively.

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

Equity Method

Investee companies that are not consolidated, but
over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company
exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation
of the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting
securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reflected within
the Company’s consolidated balance sheets and consolidated statements of operations; however, the Company’s share of the earnings
or losses of the Investee company is reflected in the caption Gain (loss) from equity method investment in the consolidated statements
of operations. The Company’s carrying value in an equity method investee company is reflected in the caption “Investment in
unconsolidated affiliate’’ in the Company’s consolidated balance sheets.

| F-11 |

When the Company’s carrying value in an equity
method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless
the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently
reports income, the Company will