Company: IMG
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001493152-25-020586
Chunk: 50

Company: CIMG Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 8
Chunk 50
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Expense

Other
expense of $54,866 and $145,140 for the nine months ended June 30, 2025 and 2024, respectively, primarily includes write off of deferred
financing costs and sublease expense.

Prepaid
expenses and other current assets

Prepaid
expenses and other current assets for the nine months
ended June 30, 2025 and September 30, 2024 is as follows:

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 

    June 30,
                                                                               2025  
    September 30,
                                                                               2024 
  
    Prepaid expenses 
    $88,893  
    $197,217 
  
    Other current assets 
     1,160,064  
     185,431 
  
    Total 
    $1,248,957  
    $382,648 

The
Prepaid expenses and other current assets balance of $1,248,957
as of June 30, 2025 primarily consists of deposit, Barcode fee, a retainer for
professional services, employee petty cash advances, and input VAT pending certification for deduction.

Inventory,
net

Inventories,
net, consisting principally of raw materials 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. The Company reviews inventory levels at least quarterly and records
a valuation allowance when appropriate. On June 30, 2025, the carrying value of inventory
of $11,882,544.

SCHEDULE OF INVENTORY 

    June 30,
                                                                               2025  
    September 30,
                                                                               2024 
  
    Raw materials 
    $11,744,380  
    $4,490,728 
  
    Finished goods 
    $138,164  
     57,307 
  
    Total 
    $11,882,544  
    $4,548,035 

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 nine months ended June 30, 2025 and 2024 was $12,832
and $119,607, respectively. Property and equipment as of June