Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 351

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1B
Chunk 351
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 the transaction price to the performance obligations
in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance obligation. We adopted Topic 606 as of October
1, 2018 on a modified retrospective basis. The adoption of Topic 606 did not have a material impact on our consolidated financial statements,
including the presentation of revenues in our Consolidated Statements of Operations.

Per ASC 606-10-32-2, an entity shall consider
the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount
of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding
amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer
may include fixed amounts, variable amounts, or both.

Per ASC 606-10-25-23 An entity shall recognize revenue when (or as) the entity satisfies a performance obligation
by transferring a promised good or service (that is, an asset) to a customer.

Per ASC 606-10-55-37 An entity is a principal if it controls the specified good or service before that good or
service is transferred to a customer. However, an entity does not necessarily control a specified good if the entity obtains legal title
to that good only momentarily before legal title is transferred to a customer. An entity that is a principal may satisfy its performance
obligation to provide the specified good or service itself or it may engage another party (for example, a subcontractor) to satisfy some
or all of the performance obligation on its behalf.

ASC 606-10-55-38 An entity is an agent if the
entity’s performance obligation is to arrange for the provision
of the specified good or service by another party. An entity that is an agent does not control the specified good or service provided
by another party before that good or service is transferred to the customer. When (or as) an entity that is an agent satisfies a performance
obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging
for the specified goods or services to be provided by the other party. An entity’s
fee or commission might be the net amount of consideration that the entity retains after paying the other party the consideration received
in exchange for the goods or services to be provided by that party.

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