Company: IMG
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001493152-25-020586
Chunk: 18

Company: CIMG Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 1
Chunk 18
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, etc. In some cases, the
Company bears shipping costs for shipping customer orders, and shipping and handling costs are recorded under operating expenses in the
consolidated statement of operations.

    12

Other
income

For
the nine months ended June 30, 2025, the other income was $452,142. It is mainly because of the settlement and forgiveness of account
payable.

For
the nine months ended June 30, 2024, the other income was $412,580. It is mainly because of the rental income.

Other
Expense

Other
expense of $54,866 and $145,140 for the nine months ended June 30, 2025 and 2024, respectively, primarily includes write off of deferred
financing costs and sublease expense.

Prepaid
expenses and other current assets

Prepaid
expenses and other current assets for the nine months
ended June 30, 2025 and September 30, 2024 is as follows:

SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 

    June 30,
                                                                               2025  
    September 30,
                                                                               2024 
  
    Prepaid expenses 
    $88,893  
    $197,217 
  
    Other current assets 
     1,160,064  
     185,431 
  
    Total 
    $1,248,957  
    $382,648 

The
Prepaid expenses and other current assets balance of $1,248,957
as of June 30, 2025 primarily consists of deposit, Barcode fee, a retainer for
professional services, employee petty cash advances, and input VAT pending certification for deduction.

Inventory,
net

Inventories,
net, consisting principally of raw materials and finished goods held for production and sale, is stated at the lower cost or net realizable
value, cost being determined using the weighted average cost method. The Company reviews inventory levels at least quarterly and records
a valuation allowance when appropriate. On June 30, 2025, the carrying value of inventory
of $11,882,544.

SCHEDULE OF INVENTORY 

    June 30,
                                                                               2025  
    September 30,
                                                                               2024 
  
    Raw materials 
    $11,744,380  
    $4,490,728 
  
    Finished goods 
    $138,164