Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 19

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 1
Chunk 19
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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 to employees, regardless of whether the directors are also employees.
In June 2018, the FASB issued ASU 2018-07 which simplifies several aspects of the accounting for non-employee transactions by stipulating
that the existing accounting guidance for share-based payments to employees (accounted for under ASC Topic 718, “Compensation-Stock
Compensation”) will also apply to non-employee share-based transactions (accounted for under ASC Topic 505, “Equity”).
The Company implemented ASU 2018-07 on October 1, 2019 and the impact of the implementation was not material to the financial statements.

    15

We
determine the fair value of share-based payments using the Black Scholes option-pricing model for common stock options and warrants and
the closing price of our common stock for common share issuances. We recognize forfeitures as they occurred.

For
three months ended December 31, 2024, the Company issued 800,000 shares of its common stock under the 2024 Equity Incentive Plan.

Comprehensive
income/loss

Comprehensive
income/loss is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.
Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive
income/loss are required to be reported in a financial statement that is presented with the same prominence as other financial statements.
The Company’s current component of other comprehensive income/loss pertains to foreign currency translation adjustments.

Segment
Information

ASC
Topic 280, “Disclosures about Segments of an Enterprise and Related Information,” established standards for the way that
public business enterprises report information about operating segments in annual financial statements and requires those enterprises
to report selected information about operating segments in interim financial reports issued to stockholders. Management has determined
that the Company operates in one business segment, which is the commercialization and development of functional beverages.

Recent
Accounting Pronouncements

In
August 2020, the FASB issued ASU 2020-06, Debt — De