Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 937

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 7A
Chunk 937
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 loss of $
0.

Intangible assets have either an identifiable or
indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or
legal life, whichever is shorter. We have identifiable useful life intangible assets related to acquired Dripkit tradename and customer
relationships. We evaluate these intangible assets annually for impairment, and when indications of potential impairment exist. The management
uses considerable judgment to determine key assumptions, including projected revenue, projected costs, marketing expenses and projected
profits, etc. This kind of analysis requires important estimates and judgments, including the estimation of future cash flows, which
depends on internal forecasts, the estimation of the long-term growth rate of our business, the estimation of the useful life of the
cash flows that will occur, customer churn, and the determination of our weighted average cost of capital.

Income Taxes

In accordance with ASC 740 - Income Taxes, the provision
for income taxes is computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and
liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured
using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on
available evidence, are not expected to be realized.

The Company also follows the guidance related to accounting
for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of
a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.
For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability
for unrecognized tax benefits was recorded as of September 30, 2024 and 2023.

    F-12

Related parties

A party is considered to be related to the Company
if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with
the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal
owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly
influence the management or operating policies of the other to an