Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 1006

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 9A
Chunk 1006
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-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.

Return and Exchange Policy

All products are thoroughly inspected and securely
packaged before they are shipped to ensure buyers receive the best possible product. If for any reason buyers are unsatisfied with the
products, they can return them, and the Company will exchange or refund the purchase minus any shipping charges. For wholesale customers,
return policies vary based on their specific agreements with customers. Under chargebacks agreements with the customers, the Company agrees
to reimburse the seller for a portion of the costs incurred by the seller to advertise and promote certain of the Company’s products.
The Company estimates, accrues and recognizes such chargebacks. These amounts are included in the determination of net sales. As of September
30, 2024, CIMG’s Maca collection has never had a return record.

Accounts payable and accrued expenses 

During the year ended September 30, 2024 and September
30, 2023,the accounts payable are $1,294,007 and $1,588,342 respectively, it mainly includes the accounts payable and $325,000 litigation
settlement costs of Nuzee single-serving coffee and DRIPKIT products. For details on litigation and post-litigation payments, please refer
to Note 11.

During the year ended September 30, 2024 and September
30, 2023,the accrued expenses are $695,330 and $225,693 respectively, it mainly includes the accounts payable settlement costs of Nuzee
single-serving coffee and DRIPKIT products.

Accounts payable and accrued expenses for the
years ended September 30, 2024 and 2023 are as follows:

 SCHEDULE OF ACCOUNTS PAYABLE
AND ACCRUED EXPENSES

    September 30