Company: IMG
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001493152-25-020586
Chunk: 52

Company: CIMG Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 8
Chunk 52
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angible
assets

Intangible
assets have either an identifiable or indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line
basis over their economic or legal life, whichever is shorter. We have identifiable useful life intangible assets related to acquired
Dripkit tradename and customer relationships. We evaluate these intangible assets annually for impairment, and when indications of potential
impairment exist. The management uses considerable judgment to determine key assumptions, including projected revenue, projected costs,
marketing expenses and projected profits, etc. This kind of analysis requires important estimates and judgments, including the estimation
of future cash flows, which depends on internal forecasts, the estimation of the long-term growth rate of our business, the estimation
of the useful life of the cash flows that will occur, customer churn, and the determination of our weighted average cost of capital.
We confirm that for nine months ending June 30, 2025, we recorded impairment losses related to trademarks at $Nil. These impairment losses
are included in our statement of operations. After including the above impairments, as of June 30, 2025 and September 30, 2024, the Company’s
intangible assets related to trademarks were $57,500 and $80,000 respectively.

Income
Taxes

In
accordance with 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.

    14

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 June 30,2025 and September
30, 2024.

United
States

CIMG
Inc. and Wewin are incorporated in the