Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 1183

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 16
Chunk 1183
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 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.

Goodwill and intangible assets

During the year ended September 30, 2024, we
recorded a goodwill impairment 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