Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 111

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 111
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 Recognition

The Maca Series products are pure plant products that
we purchase maca raw materials and entrust to process. Therefore, the raw materials - the procurement cost of maca, the packaging cost
of goods, the freight cost of goods and so on.

Selling, General and Administrative Expense

Selling, general and administrative expenses (SG&A)
are primarily comprised of personnel costs, selling and marketing expenses, depreciation and amortization, insurance expenses, professional
services, travel and office expenses, etc. In some cases, the company bears shipping costs for shipping customer orders, and shipping
and handling costs are recorded under operating expenses in the consolidated statement of operations.

As of September 30, 2024 and September 30, 2023,
the operating expenses were $6,425,571 and $8,174,200 respectively.

Asset impairment loss

During
the year ended September 30, 2024 and September 30, 2023, the asset impairment loss are $1,019,471
and $Nil. The
mainly due to the impairment of inventories and fixed assets.

SCHEDULE OF ASSET IMPAIRMENT LOSS

|                                         |     | September 
 30.       
 2024      |           |     | September 
 30,       
 2023      |   |
|:----------------------------------------|:----|:----------|----------:|:----|:----------|:--|
| Property and equipment asset impairment |     |           |   203,973 |     |           | - |
| Impairment loss on inventory            |     |           |   815,498 |     |           | - |
| Total                                   |     | $         | 1,019,471 |     | $         | - |

Other income

During the year ended September 30, 2024 and
September 30, 2023, the other income are $532,593
and $341,667. It is mainly due
to the recovery of bad debts and the income from rent transfer.

| F-12 |

Other expense

During the year ended September 30, 2024, the
other expense is $665,795, primarily includes
sublease expense, interest expense and administrative expense.

During the year ended September 30, 2023, the other expense is
$246,160, primarily includes write off of deferred financing costs and sublease expense.

Prepaid expenses and other current assets

Prepaid expenses