Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 114

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 114
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127,820 | ) |     |   | (1,018,391 | ) |
| Subtotal                              |     |   |    395,177 |   |     |   |    184,763 |   |
| Less-Non-Current Assets Held for Sale |     |   |   (214,709 | ) |     |   |          - |   |
| Disposal of property and equipment    |     |   |   (178,200 | ) |     |   |          - |   |
| Property and equipment, net           |     |   |      2,268 |   |     |   |    184,763 |   |

Samples

The Company distributes samples of its products as
a component of its marketing program. Costs for samples are expensed at the time the samples are produced and recorded under operating
expenses in the consolidated statements of operations.

| F-13 |

Long-Lived Assets

The Company tests long-lived assets or asset groups
for recoverability when events or changes in circumstances indicated that their carrying amount may not be recoverable. Circumstances
which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse
changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for
the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast
of continuing losses associated with the use of the asset; and a current expectation that the asset will more likely than not be sold
or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the
asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use
and the eventual disposal of the asset, as well as specific appraisal in certain instances.

Goodwill and intangible assets

Intangible assets have either an identifiable or
indefinite useful life. Intangible assets with identifiable useful lives are amortized on a straight-line basis over their economic or
legal life, whichever is shorter. We have identifiable useful life intangible assets related to acquired Dripkit tradename and customer
relationships. We evaluate these intangible assets annually for impairment, and when indications of potential impairment exist. The management
uses considerable judgment to determine key assumptions, including projected revenue, projected costs, marketing expenses and projected
profits, etc.