Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 358

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1B
Chunk 358
---
 statements.

We
determine the fair value of share-based payments using the Black Scholes option-pricing model for common stock options and warrants and
the closing price of our common stock for common share issuances. We recognize forfeitures as they occurred.

During the year ended September 30, 2024, we did
not distribute employee stock rewards to our staff.

Comprehensive income/loss

Comprehensive income/loss is defined to include all
changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that
are required to be recognized under current accounting standards as components of comprehensive income/loss are required to be reported
in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component
of other comprehensive income/loss pertains to foreign currency translation adjustments.

Segment Information

ASC Topic 280, “Disclosures about Segments of
an Enterprise and Related Information,” established standards for the way that public business enterprises report information about
operating segments in annual financial statements and requires those enterprises to report selected information about operating segments
in interim financial reports issued to stockholders. Management has determined that the Company operates in one business segment, which
is the commercialization and development of functional beverages.

Recent Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, Debt — Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s
Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s
Own Equity. ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models available for
convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible
instruments and requires the use of the if-converted method. The amendments in this Update are effective for public business entities
that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies
as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all
other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those
fiscal years. Early adoption is permitted.

 In
November 2023