Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 614

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 4
Chunk 614
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 ASC 740 - Income Taxes, the provision
for income taxes is computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and
liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured
using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on
available evidence, are not expected to be realized.

The Company also follows the guidance related to accounting
for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of
a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit.
For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit
that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability
for unrecognized tax benefits was recorded as of September 30, 2024 and 2023.

    F-12

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 in the same manner as share-based compensation