Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 161

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 161
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 be unpredictable and volatile. These events typically
make equity and debt financing more difficult to obtain. Accordingly, additional equity or debt financing might not be available on reasonable
terms, if at all. If we cannot secure additional funding when needed, including due to changes in our business plan, a lower demand for
our products or other risks described in this Report, we may have to delay, reduce the scope of or eliminate one or more sales and marketing
initiatives and development programs, which would have a materially adverse effect on our business.

We
have a limited operating history, which may make it difficult to evaluate our current business and to forecast our future performance.

We
have little operating history and are addressing an emerging market. As a result, our current and future business prospects are difficult
to evaluate. All potential investors must consider our business prospects in light of the risks and difficulties we have encountered
and will continue to encounter as a company operating in a rapidly evolving market. Some of these risks relate to our potential inability
to:

    ●
    effectively
    manage our business and proprietary information;
  
    ●
    recruit
    and retain sales and marketing, technical and managerial personnel;
  
    ●
    recruit
    and retain appropriate distributor relationships;
  
    ●
    successfully
    develop and protect our intellectual property portfolio;
  
    ●
    successfully
    provide high quality products as our business expands; and
  
    ●
    successfully
    address other risks, as described in this Report or otherwise.

If
we do not address these risks successfully, it could have a material adverse effect on our business and financial condition.

Our
ability to use our net operating loss carryforwards to offset future taxable income may be subject to certain limitations.

The
Tax Cuts and Jobs Act (the “TCJA”), enacted in 2017, limited the use of net operating loss carryforwards arising in periods
beginning after 2017 to eighty-percent of taxable income in the period to which the losses are carried. The TCJA also extended the expiration
period for net operating losses arising in periods after 2017 from 20 years to an unlimited period.

However,
the taxable income limitation on the use of net operating loss carryforwards was eliminated by the Coronavirus Aid, Relief and Economic
Security Act (the “CARES” Act) for tax years beginning before January 1, 2021. We may not be able to utilize our existing
net operating losses or any portion thereof in