Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 41

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 8
Chunk 41
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. The Company did not apply the recognition requirements of ASC 842
to operating leases with a remaining lease term of 12 months or less.

In
May 2022, the Company renewed the office and manufacturing space in Vista, California through March 31, 2025, which was scheduled to
expire on January 31, 2023. The lease has a monthly base rent of $8,451, plus common area expenses. Along with the extension, we leased
an additional 1,796 square feet that has a monthly base rent of $2,514 through March 31, 2025.

The
Company leased a new larger office and manufacturing space in Seoul, Korea beginning November 15, 2021, through November 15, 2023. The
lease has a monthly expense of $7,040. Accordingly, we have added ROU Assets and Lease Liabilities related to those leases as of September
30, 2023.

Effective
September 1, 2024, we have leased a principal office space located at 16097 Poppyseed Cir, Unit 1904, Delray Beach, Florida, 33484, which
we lease for $3,500 per month until August 31, 2025.

The
lease in San On Street, Tuen Mun, Hong Kong has a term of 12 months from December 18, 2024 to December 17, 2025 at a rate of RMB 4,167
($594) per month. The lease is a short-term lease which has a lease term of 12 months and does not include an option to purchase the
underlying asset. The Company did not recognize ROU assets or lease liabilities for short term leases.

    9

As
of March 31, 2025, the Company’s operating leases had a weighted average remaining lease term of 1 year and a weighted-average
discount rate of 5% or 7.5%. Other information related to our operating leases is as follows:

SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE  

    ROU Asset – October 1, 2024 
    $99,746 
  
    ROU Asset added during the period 
     -  
  
    Amortization during the
    period 
     (83,300)
  
    ROU Asset – March 31, 2025 
    $16,446 

    Lease Liability – October 1,