Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 167

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 167
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 our development and sales
programs and to build a commercially viable business.

The
competition for talent is currently extremely high. In this competitive environment, our business could be adversely impacted by increases
in labor costs, including wages and benefits, including those increases triggered by regulatory actions regarding wages, scheduling and
benefits; increased health care and workers’ compensation insurance costs; increased wages and costs of other benefits necessary
to attract and retain high quality employees with the right skill sets, and increased wages, and benefits and other costs. In addition,
our wages and benefits programs, combined with the periodic challenges in the labor market, may be insufficient to attract and retain
talent.

Because
our management structure is not centralized, the management of our business operations may be more expensive and more difficult.

As
part of our strategy to attract the most qualified individuals, we do not require the members of our management team to relocate to a
particular geographic area. Accordingly, the members of our management team are geographically dispersed. This decentralized structure
might cause additional expenses in the conduct of our business, and may also delay communication between members of our management team,
lower the quality of our management decisions or decrease our ability to take action quickly.

We
expect to continue to experience inflationary pressure on our cost structure, and price increases may not be sufficient to offset cost
increases or may result in sales volume declines.

We
expect for the foreseeable future to experience inflationary pressure on our cost structure. We may be able to pass some or all raw materials,
energy and other input cost increases to customers by increasing the selling prices of our products or decreasing the size of our products;
however, higher product prices or decreased product sizes may also result in a reduction in sales volume and/or consumption. If we are
not able to mitigate these inflationary pressures, such as by increasing our selling prices or reducing product sizes sufficiently to
offset increased raw material, energy or other input costs, including but not limited to packaging, direct labor, overhead and employee
benefits, or if our sales volume decreases significantly, there could be a negative impact on our results of operations and financial
condition.

We
may be unable to manage our future growth effectively, which could make it difficult to execute our business strategy.

While
we are currently a small company and, therefore, limited in our product development, marketing and sales activities, we anticipate continued
growth in our business operations commensurate with the expansion of our sales and support operations and distribution network and the
commercialization