Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 50

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 8
Chunk 50
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     - 
  
    Total
income tax expense 
     -  
     - 

    Loss before income
    tax 
    $(1,921,805) 
     (3,802,542)
  
    Tax benefit at statutory U.S. federal rate (21%) 
     (403,579) 
     (798,534)
  
    Non-deductible expenses 
     4,234
 
     - 
  
    Foreign rate differential 
     (66,084) 
     27,786 
  
    Change in valuation allowance 
     465,429  
     770,748 
  
    Income
    tax expense 
    $-  
     - 

For the six months ended March 31, 2025 and 2024,
the Company incurred losses and generated net operating loss (“NOL”) carryforwards. However, due to uncertainty surrounding
the Company’s ability to realize these deferred tax assets, a full valuation allowance was recorded, resulting in no income tax
benefit being recognized in the periods presented.

    13

Related
parties

A
party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls,
is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management and other parties with which the Company may
deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of
the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence
the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties
and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing
its own separate interests is also a related party.

Stock-based
Compensation

We
account for share-based awards issued to employees in accordance with Accounting Standards Codification (ASC) 718, “Compensation-Stock
Compensation”. Accordingly, employee share-based payment compensation is measured at the grant date, based on the fair value of
the award, and is recognized as an expense over the requisite service period, which is normally the vesting period. Share-based compensation
to directors is treated