Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 874

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 7
Chunk 874
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 the Company granted
58,619 performance-based restricted shares to executive officers, employees and consultants as part of the 2013 Stock Incentive
Plan and the 2019 Stock Incentive Plan. 50% of the Performance-Based Restricted Shares would vest, if at all, in fiscal year
2023, based on the Company’s achievement of a specified amount of cash on hand, sales growth, increased gross margin, and
reduced operating losses in fiscal year 2023, and the other 50% of the Performance-Based Restricted Shares will vest, if at
all, in fiscal year 2024, based on performance metrics to be set by the Board in its sole and absolute discretion. The performance
goals for fiscal year 2023 were not achieved and the Company recognized common stock compensation expense of $Nil for the year ended
September 30, 2023, related to these Restricted Shares.

The
Company recognized common stock compensation expense of $176,775 and
$Nil 
in fiscal year ending September 30 2023 and September 30, 2024, respectively.

Grant of Restricted Stock Awards to the Company’s
Independent Board Members

During
the year ended September 30, 2024, no restricted stock awards were issued to any board members. 

Forfeiture of Restricted Shares

During the year ended September 30, 2024, 30,464
restricted shares were forfeited because of the termination of employment or performance goals not achieved.

Common Stock issued for services

During the year ended September 30, 2024, the company
did not have Common Stock issued for services.

Exercise of options

During the year ended September 30, 2024, the company
did not exercise any options. 

9. STOCK OPTIONS AND WARRANTS

Options

During the fiscal year ended September 30, 2024, the
Company granted 0 new stock options, issued 0 shares upon the exercise of outstanding stock options.

During
the fiscal year ended September 30, 2023, the Company granted 6,000 new stock options at an exercise price of $8.15 to an employee. These
options shall be vested and become exercisable 1/3 on each anniversary of the grant date. The options will expire ten years from the grant
date, unless terminated earlier as provided by the option agreements. 

    F-16

The fair value
of each option award was estimated on the date of grant using