Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 258

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 258
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 share shall be rounded down to the nearest whole share. On October 31, 2024, the
conversion of this convertible note into stocks has been completed.

Per ASC 470-20-25-5, An embedded beneficial conversion
feature (“BCF”) present in a convertible instrument shall be recognized separately at issuance by allocating a portion of
the proceeds equal to the intrinsic value of that feature to additional paid-in capital.

The company evaluated that the fair value of the
instrument is slightly higher than the proceeds from the instrument issuance. The BCF is embedded in the convertible note.

Still, since the converting period is short (only
50 days) and the fair value of the embedded BCF is relatively small, we decided not to separate the feature until the proceeds to paid-in-capital.
Since we do not directly pay the interest expenses, but to put them in the total repayable amount and convert to shares, we do not amortize
the interest expense. 

During the year ended September 30, 2024 and September
30, 2023,the fair value variation on convertible notes is $82,845 and $Nil

Cash and Cash Equivalents

The Company considers all highly liquid
investments with original maturities of three months or less at the date of purchase to be cash equivalents. As
of September 30, 2024 and 2023, the Company had no cash equivalents. 

Concentration of Credit Risk

Financial instruments that potentially subject the
Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash with high quality
banking institutions. From time to time, the Company may or may not maintain cash balances at certain institutions in excess of the Federal
Deposit Insurance Corporation limit.

Accounts Receivable

During the year ended September 30, 2024 and
September 30, 2023, accounts receivable were $Nil and $499,582.

Trade accounts receivable is periodically evaluated for
collectability based on past credit history with customers and their current financial condition. Bad debts expense or write offs of
receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio and current
economic conditions. The Company had $3,441,782
of allowance for expected credit loss as of September 30, 2024 and $117,015
allowance for doubtful accounts as of September 30, 2023.

SCHEDULE OF ACCOUNTS RECEIVABLES