Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 43

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 8
Chunk 43
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 respectively, primarily includes write off of deferred
financing costs and sublease expense.

    13

Prepaid
expenses and other current assets

Prepaid
expenses and other current assets as of December 31, 2024 and September 30, 2024 are as follows:

 SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS

    December
31,
                                                                                                                                                              2024  
    September
30,
                                                                                                                                                              2024 
  
    Prepaid
    expenses 
    $150,702  
    $197,217 
  
    Other
    current assets 
     140,460  
     185,431 
  
    Total 
    $291,162  
    $382,648 

The
Prepaid expenses and other current assets balance of $291,162 as of December 31, 2024 primarily consists of prepaid rent, a retainer
for professional services.

Inventories,
net

Inventories,
net, consisting principally of raw materials, work in process and finished goods held for production and sale, is stated at the lower
cost or net realizable value, cost being determined using the weighted average cost method. The Company reviews inventory levels at
least quarterly and records a valuation allowance when appropriate. On December 31, 2024, the carrying value of inventory of $4,608,307.

 SCHEDULE OF INVENTORY

    December 31,
                                                                                                                                                              2024  
    September
30,
                                                                                                                                                              2024 
  
    Raw
    materials 
    $4,540,113  
    $ 4,490,728 
  
    Finished
    goods 
    $68,194  
    $57,307 
  
    Total 
    $4,608,307  
    $4,548,035 

Property
and Equipment, net

Property
and equipment are stated at cost, net of accumulated depreciation. Office equipment is depreciated over a 3-year life, furniture over
a 7-year life, and other equipment over a 5-year life. Depreciation expense for three months ended December 31, 2024 and 2023 was $271
and $32,480, respectively. Property and equipment as of December 31,2024 and September 30, 2024 consist of:

SCHEDULE OF PROPERTY AND EQUIPMENT

    December 31,
                                                                                2024  
    September