Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 116

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 116
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-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 in the same manner as share-based compensation to employees, regardless of whether the directors are also employees. In June 2018, the FASB issued ASU 2018-07 which simplifies several aspects of the accounting for non-employee transactions by stipulating that the existing accounting guidance for share-based payments to employees (accounted for under ASC Topic 718, “Compensation-Stock Compensation”) will also apply to non-employee share-based transactions (accounted for under ASC Topic 505, “Equity”). The Company implemented ASU 2018-07 on October 1, 2019 and the impact of the implementation was not material to the financial statements.

We determine the fair value of share-based payments using the Black Scholes option-pricing model for common stock options and warrants and the closing price of our common stock for common share issuances. We recognize forfeitures as they occurred.

During the year ended September 30, 2024, we did
not distribute employee stock rewards to our staff.

Comprehensive income/loss

Comprehensive income/loss is defined to include all
changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that
are required to be recognized under current accounting standards as components of comprehensive income/loss are required to be reported
in a financial statement that is presented with the same prominence as other financial statements. The Company’s current component
of other comprehensive income/loss pertains to foreign currency translation adjustments.

Segment Information

ASC Topic 280, “Disclosures about Segments of
an Enterprise and Related Information,” established standards for the way that public business enterprises report information about
operating segments in annual financial statements and requires those enterprises to report selected information about operating segments
in interim financial reports issued to stockholders. Management has determined that the Company operates in one business segment, which
is the commercialization and development of functional beverages.

Recent Accounting Pronouncements

In August 2020, the FASB issued ASU 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s
Own Equity (Subtopic 815-40),