Company: IMG
Filing Date: 2025-11-07
Form Type: 10-Q/A
Source: 0001493152-25-021258
Chunk: 32

Company: CIMG Inc.
Filing Date: 2025-11-07
Form: 10-Q/A
Chunk 32
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ongyan (the “Transfer”) at a total company valuation of RMB 13,000,000. The Transfer occurred on September 29, 2025, and Zhongyan holds 51% of the shares of Shenzhen.

On September 3, 2025, Zhongyan established a wholly-owned subsidiary, Beijing Zhongyan Shangyue Holdings Co., LTD(“Beijing Shangyue”).

On September 16, 2025, Henan Zhongyan Shangyue Technology Co. Ltd. established a wholly-owned subsidiary, Henan Nuanyou Agricultural Science and Technology Co., LTD.

On September 23, 2025, DZR Tech Limited acquired Braincon Limited and its subsidiaries. DZR Tech Limited holds 100% of the shares of Braincon Limited.

Legal Proceedings

Kim Litigation

On October 3, 2024, Mr. Sooncha Kim filed a complaint against the Company in the Southern District of New York, (Case No. 1:24-cv-7485) (the “Complaint”). The Complaint alleges that the Company breached a Convertible Note and Warrant Purchase Agreement, dated June 6, 2024, between the Company and Mr. Kim, by, among other things, failing to deliver the registration rights agreement, excluding Mr. Kim from the S1 registration statement, delaying conversion of Mr. Kim’s notes, undertaking steps to dilute Mr. Kim’s shares, failing to honor Mr. Kim’s 50% participation right in any subsequent financing and failing to appoint a designated director, as set forth in the parties’ agreement. Mr. Kim seeks specific performance of the Convertible Note and Warrant Purchase Agreement, and monetary damages in the amount of $ 1,041,216, plus applicable interest. The Company filed its answer to the Complaint on December 3, 2024. On January 7, 2025, Mr. Kim filed a motion seeking a preliminary injunction against the Company (the “Motion”). The Company opposed the Motion on January 22, 2025, and on February 13, 2025, the Court denied Mr. Kim’s Motion. Discovery in the case is ongoing, and no trial date has been set.

The Company believes it has a basis to defend the claims in the Kim Litigation.

Ex-Directors Lawsuit

On March 10, 2025, former directors of the Company, Kevin J. Connor, Chris J. Jones,