Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 1151

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 15
Chunk 1151
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    $158.24  
     2.65  
     - 
  
    Exercisable on September 30, 2023 
     152,398  
    $158.24  
     2.65  
    $- 

On April 13, 2022, the Company sold 25,279 2022
Units, with each 2022 Unit consisting of (a) one share of our Common Stock and (b) one 2022 Warrant. Each 2022 Warrant entitles the holder
to purchase one share of our Common Stock at an exercise price of $70.00 per share. The 2022 Warrants have a term of 5 years. Holders
may exercise their 2022 Warrants on a “cashless” basis pursuant to a formula set forth in the form of 2022 Warrant.

    F-19

10. INCOME TAX

The company recorded $0 income tax expense for the years ended September
30, 2024 and 2023.

Deferred income taxes reflect the net tax effects
of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for income tax purposes.

The Company will have tax losses available to
be applied against future years’ income as result of the losses incurred. However, due to the losses incurred in the period
and expected future operating results, management determined that it is more likely than not that the deferred tax asset resulting
from the tax losses available for carry forward will not be realized through the reduction of future income tax payments.
Accordingly, a 100%
valuation allowance has been recorded for deferred income tax assets. Cumulative net operating loss carry forward is $51,057,503
and $45,340,996
as of September 30, 2024 and 2023, respectively, and will begin expiring in 2033. Utilization of these NOLs might be subject to
various limitations such as the IRC Section 382 limitation and the 80% taxable income limitation. A full study of the NOL
limitations has not been completed yet.

The Company used statutory blended tax rates of 28%, 11%
and 33.58% for its deferred tax assets that arose in the US, Korea, and Japan respectively.

Deferred tax assets consisted of the following as
of September 30, 2024 and 2023:

SCHEDULE OF DEF