Company: IMG
Filing Date: 2025-11-07
Form Type: 10-Q/A
Source: 0001493152-25-021258
Chunk: 20

Company: CIMG Inc.
Filing Date: 2025-11-07
Form: 10-Q/A
Chunk 20
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 |     |                   |          - |   |     |                   |          - |   |
| Loss before income tax                           |     | $                 | (2,990,046 | ) |     |                   | (5,242,739 | ) |
| Tax benefit at statutory U.S. federal rate (21%) |     |                   |   (627,910 | ) |     |                   | (1,100,975 | ) |
| Non-deductible expenses                          |     |                   |     (4,244 | ) |     |                   |          - |   |
| Foreign rate differential                        |     |                   |    (72,170 | ) |     |                   |     68,916 |   |
| Change in valuation allowance                    |     |                   |    704,324 |   |     |                   |  1,032,059 |   |
| Income tax expense                               |     | $                 |          - |   |     |                   |          - |   |

For the nine months ended June 30, 2025 and 2024, the Company incurred losses and generated net operating loss (“NOL”) carry forwards. However, due to uncertainty surrounding the Company’s ability to realize these deferred tax assets, a full valuation allowance was recorded, resulting in no income tax benefit being recognized in the periods presented.

Related parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

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Stock-based Compensation

We account for share-based awards issued to employees in accordance with Accounting Standards Codification (ASC) 718, “Compensation-Stock Compensation”. Accordingly, employee share-based payment compensation is measured at the grant date, based on the