Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 44

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 8
Chunk 44
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30,
                                                                                2024 
  
    Machinery
    & Equipment 
    $2,268  
    $1,465,566 
  
    Vehicles 
     -  
     57,431 
  
    Less
    - Accumulated Depreciation 
     (271) 
     (1,127,820)
  
    Less-Impairment
    on Property and Equipment 
     -  
     (214,709)
  
    Disposal
    of property and equipment 
     -  
     (178,200)
  
    Net
    Property and Equipment 
    $1,997  
    $2,268 

The
Company is required to make deposits or prepayments and progress payments on equipment purchases before the Company receives possession
and title. As a result, the Company accounts for such payments as Other Assets until it has possession at which time the equipment is
recorded as Property and Equipment. There were no such deposits as of December 31, 2024 or September 30, 2024.

Samples

The
Company distributes samples of its products as a component of its marketing program. Costs for samples are expensed at the time the samples
are produced and recorded under operating expenses in the consolidated statements of operations.

    14

Long-Lived
Assets

The
Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicated that their carrying
amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the
market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly
in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses
combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and a current expectation
that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability
is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted
cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances.

Intangible
assets

Intangible
assets have either an identifiable or indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line