Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 263

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 263
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reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously
recognized.

Revenue Recognition

In FY 2024, We have reduced our single-serving
pour-over coffee packaging business, and in the portion of bagged coffee sales, we have added other brands, such as “Maca Coffee”
and other finished products with maca as the main raw material, such as “Maca Noni”. In 2024, we sell maca peptide coffee and
other new products on a distribution model. We usually sign distribution contracts with distributors on a batch basis. Based on the contract,
we deliver the goods after full payment to our bank account. We courier the goods to the customer. The customer will sign a receipt after
receiving the goods. The customers can also choose to pick up their goods from our warehouse on their own. Also, the customer will sign
a receipt.

In May 2014, the FASB issued Accounting Standards
Update No. 2014-09 (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