Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 131

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 131
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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 DEFERRED TAX ASSETS

|                                                |     |     |        2024 |   |     |   |        2023 |   |
|:-----------------------------------------------|:----|:----|------------:|:--|:----|:--|------------:|:--|
| Net Operating Losses                           |     |     |  14,412,958 |   |     | $ |  12,413,540 |   |
| Stock based compensation                       |     |     |           - |   |     |   |   5,944,806 |   |
| Fixed assets and intangible assets             |     |     |      24,574 |   |     |   |      21,071 |   |
| Total deferred tax assets                      |     |     |  14,437,532 |   |     | $ |  18,379,417 |   |
| Valuation Allowance                            |     |     | (14,437,532 | ) |     | $ | (18,379,417 | ) |
| Deferred tax assets net of valuation allowance |     |     |           - |   |     | $ |           - |   |

11. CONTINGENCIES

Steeped Litigation

As previously
disclosed, on January 27, 2023, Steeped, Inc. d/b/a Steeped Coffee (“Steeped”) filed a complaint against the Company in the
Superior Court of California, Santa Cruz County (Case No. 23CV00234) (the “Complaint”). The Complaint related to Steeped’s
claim that the Company breached a 2021 settlement agreement that resolved Steeped’s 2019 trademark infringement case against the
Company. The earlier case involved Steeped’s purported trademark protection for