Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 13

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 1
Chunk 13
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09 (Topic 606) “Revenue from Contracts with Customers.” Topic
606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). The new standard’s
core principle is that an entity will recognize revenue at an amount that reflects the consideration to which the entity expects to be
entitled in exchange for transferring goods or services to a customer. The principles in the standard are applied in five steps: 1) Identify
the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate
the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance
obligation. We adopted Topic 606 as of October 1, 2018 on a modified retrospective basis. The adoption of Topic 606 did not have a material
impact on our consolidated financial statements, including the presentation of revenues in our Consolidated Statements of Operations.

Per
ASC 606-10-32-2, an entity shall consider the terms of the contract and its customary business practices to determine the transaction
price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised
goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration
promised in a contract with a customer may include fixed amounts, variable amounts, or both.

Per
ASC 606-10-25-23 An entity shall recognize revenue when (or as) the entity satisfies a performance obligation by transferring a promised
good or service (that is, an asset) to a customer.

Per
ASC 606-10-55-37 An entity is a principal if it controls the specified good or service before that good or service is transferred to
a customer. However, an entity does not necessarily control a specified good if the entity obtains legal title to that good only momentarily
before legal title is transferred to a customer. An entity that is a principal may satisfy its performance obligation to provide the
specified good or service itself or it may engage another party (for example, a subcontractor) to satisfy some or all of the performance
obligation on its behalf.

ASC
606-10-55-38 An entity is an agent if the entity’s performance obligation is to arrange for the provision of the specified good
or service by another party.