Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 862

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 7
Chunk 862
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auction of fixed assets. The  balance of $414,048
as of September 30, 2023, primarily consists of prepaid rent, prepaid insurance, a retainer for professional services, and deferred
offering costs.

Inventory

Inventory, consisting principally of raw
materials, work in process and finished goods held for production and sale, is stated at the lower cost or net realizable value,
cost being determined using the weighted average cost method. In 2024, we have purchased raw materials and finished products from
Hangzhou Yikang Yimei Technology Co., LTD. The current
inventory is stored in Jiangsu, China.  The Company reviews inventory levels at least quarterly. On September 30, 2024, the carrying value of inventory of $4,548,035.

 SCHEDULE OF INVENTORY

    For the
                                                                                Fiscal Year ended
                                                                                September 30, 2024  
    For the
                                                                                Fiscal Year ended
                                                                                September 30, 2023 
  
    Raw materials 
     4,490,728  
     766,916 
  
    Finished goods 
     57,307  
     5,909 
  
    Total 
    $4,548,035  
    $772,825 

As of September 30, 2024, the provision for inventory
obsolescence was $815,498,the mainly because we have cleared raw materials and finished products from Vista, California. Impairment loss
on inventory as of September 30, 2024 consist of : 

SCHEDULE OF IMPAIRMENT LOSS ON INVENTORY

    For the Fiscal Year ended September 30, 2024  
    For the Fiscal Year ended September 30, 2023 
  
    Raw materials 
     798,510  
                  - 
  
    Finished goods 
     16,988  
     - 
  
    Total 
    $815,498  
    $- 

Property and Equipment, net

Property and equipment are stated at cost, net
of accumulated depreciation. Office equipment is depreciated over a 3-year
life, furniture over a 7-year
life, and other equipment over a 5-year
life. Depreciation expense for the years ended September 30, 2024 and 2023 was $160,548
and $184,488,
respectively. Property and equipment as of September 30,