Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 48

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 8
Chunk 48
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 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.

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.

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. This kind of analysis requires important estimates and judgments, including the estimation
of future cash flows, which depends on internal forecasts, the estimation of the long-term growth rate of our business, the estimation
of the useful life of the cash flows that will occur, customer churn, and the determination of our weighted average cost of capital.
We confirm that for six months ending March 31, 2025, we recorded impairment losses related to trademarks at $Nil.
These impairment losses are included in our statement of operations. After including the above impairments, as of March 31, 2025 and
September 30, 2024, the Company’s intangible assets related to trademarks were $65,000
and $80,000
respectively.

Income
Taxes

In