Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 454

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 2
Chunk 454
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 and absolute discretion. The performance
goals for fiscal year 2023 were not achieved and the Company recognized common stock compensation expense of $Nil for the year ended
September 30, 2023, related to these Restricted Shares.

The
Company recognized common stock compensation expense of $176,775 and
$Nil 
in fiscal year ending September 30 2023 and September 30, 2024, respectively.

Grant of Restricted Stock Awards to the Company’s
Independent Board Members

During
the year ended September 30, 2024, no restricted stock awards were issued to any board members. 

Forfeiture of Restricted Shares

During the year ended September 30, 2024, 30,464
restricted shares were forfeited because of the termination of employment or performance goals not achieved.

Common Stock issued for services

During the year ended September 30, 2024, the company
did not have Common Stock issued for services.

Exercise of options

During the year ended September 30, 2024, the company
did not exercise any options. 

9. STOCK OPTIONS AND WARRANTS

Options

During the fiscal year ended September 30, 2024, the
Company granted 0 new stock options, issued 0 shares upon the exercise of outstanding stock options.

During
the fiscal year ended September 30, 2023, the Company granted 6,000 new stock options at an exercise price of $8.15 to an employee. These
options shall be vested and become exercisable 1/3 on each anniversary of the grant date. The options will expire ten years from the grant
date, unless terminated earlier as provided by the option agreements. 

    F-16

The fair value
of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as
follows: expected volatility was based on the volatility of a peer group of companies. The expected term of options granted was determined
using the simplified method under SAB 107 which represents the mid-point between the vesting term and the contractual term. The risk-free
rate is calculated using the U.S. Treasury yield curve and is based on the expected term of the option.

The Black-Scholes option pricing model was used with
the following weighted-average assumptions for options granted during the year ended September 30, 2024 and 2023, respectively:

SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR