Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 196

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 196
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The impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our Board,
our Board committees or as executive officers.

42

We
expect to incur significant costs and devote substantial management time to maintaining our disclosure controls and procedures and internal
control over financial reporting, and regardless we may be unable to prevent or detect all errors or acts of fraud or to accurately and
timely report our financial results or file our periodic reports in a timely manner.

As
a publicly traded company, our management is required to report annually on the effectiveness of our internal control over financial
reporting pursuant to Section 404 of the Sarbanes-Oxley Act, or Section 404. The rules governing the standards that must be met for our
management to assess our internal control over financial reporting are complex and require significant documentation, testing and possible
remediation.

We
designed our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under
the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures,
no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system
are met.

These
inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of
simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more
people or by an unauthorized override of the controls.

Because
of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected. We cannot assure
you that the measures we have taken will be effective in mitigating or preventing significant deficiencies or material weaknesses in
our internal control over financial reporting in the future.

If
we fail to maintain effective internal control over financial reporting to meet the demands that are placed upon us as a public company,
including the requirements of the Sarbanes-Oxley Act, we may be unable to accurately report our financial results, or to report them
within the timeframes required by law or exchange regulations.

Additionally,
we have engaged only a very limited number of accounting and finance personnel and we rely in part on outside consultants. We may need
to incur additional expenses to hire additional personnel with public company